2008: The Year of Sequels? Too Much Risk?

While compiling a list of games to respond to a user question on the TD Gaming Podcast, I’ve noticed something about this years gaming lineup: their mainly all sequels! Are there any new franchises taking a risk in the market or just more of the same? Some are not really “sequels” but spin-offs of the same franchise.

A few examples of some October time frame titles: Fable 2, Far Cry 2, Gears of War 2, Rock Band 2, C&C: Red Alert 3, Saints Row 2, Rayman Raving Rabbids 3, Tekken 6, Call of Duty 5, Guitar Hero World Tour, Tom Clancy End of War, Sing Star Vol 2 and others.

There are a few original titles: Afrika for the PlayStation 3, Little Big Planet (PS3) and Huxley (360 and PC). Most of the original franchise creations seem to be PlayStation 3 related, probably because the console needs some major hits to spur more sales.

Is the market so competitive and risky that new franchises are becoming a rare breed? Last year we saw Assassin’s Creed and before that Viva Pinata and Gears of War exclusive on the Xbox 360. Consider Viva Pinata a “slight” failure in terms of excitement and Gears of War a success, that’s 50/50 in terms of risk vs. reward.

We’re going to see sequels for both of these new franchises (Viva Pinata: Trouble in Paradise and Gears of War 2) with no word yet on Assassin’s Creed 2. Perhaps E3 will show off some hype for a brand new franchise but the chances are great we’ll be bombarded with part two and part three all the way to part six to known game franchises.

It seems the 2008 holiday season is going to be filled with “safety net titles” in terms of risk vs. reward. It’s hard to argue Gears of War 2 in terms of sales and profit, making it a great safety title, but where is all the brand new titles? We can’t look towards Nintendo to produce anything as they’ve been kicking out Mario and Zelda titles for fifteen years, we must look towards other developers, but who?

Electronic Arts has proven to be very reliant on past titles performance when developing their next big hit. They’re the master of tagging a title with a year and releasing it (Madden is a great example). TheSims, Battlefield and Command and Conquer are a few of their known titles which get seemingly yearly franchise releases. Who can we look towards to take the risk?

Microsoft and Sony are the most likely to kick out a brand new franchise as it would make the title exclusive to their console and, considering the money the spend on marketing their consoles, they’ve got enough money to deposit in risking a new franchise in hopes for a hit.

Although we’re all happy to see yet another release of TheSims, Fable, Far Cry, Rock Band and other hot titles, it’s also nice to see something new and creative hit the store shelves. Apparently we have to stop buying into the sequels (i.e. GTA IV) before we’re going to see any real change, forcing developers to risk their reputation for the next great game innovation.

0 thoughts on “2008: The Year of Sequels? Too Much Risk?”

  1. hmmm, made me think if having one too many sequels could only cause players to get tired of the game.But if it showcases something new why not. Sometimes, you don’t like the first release but loved the sequel.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Post

Wallets Shrink, Used Game Market GrowsWallets Shrink, Used Game Market Grows

Over the last year we’ve seen developers scrambling to find “value add” features to new game purchases. Their goal is to convince the customer to buy new instead of used because developers don’t see a penny from a used game sale. While GameStop sees 48% profit margins from the used game market developers struggle to stay floating in the industry.

for-saleThis is not the fault of GameStop and their 48% profit margins because they’re only getting 7% to 20% profit margins (say analysts) on new game sales. As someone that’s run a game store online, if you’re getting 15%+ on a new game you’ve got some great hookups in the distribution channel or are buying in huge quantities.

Buying games in huge quantities to build profit margins can be a huge mistake in this industry. Gamers are fickle little creatures and they’re going to buy their top tier games for a few weeks and then sales will drop significantly. No retail chain wants to purchase a thousand copies of GTA IV (only as an example) and sell seven hundred over the first few week to be stuck holding onto a few hundred copies when the dust settles. Now you’ll have to put them on sale to get them out of the store because the hardcore gamer have already done their shopping and you’re not going to get any price protection if you’re not a major player in the industry.

Why take 7% profit margins when you can get 48% on a used game? The gamers don’t seem to mind because they’ll trade in a used copy of a sports title like Madden to save $5.00 on the latest franchise release. Gamers will buy Fable 2, beat it in a week and rush to the store to get the “most for their dollar” before the game gets stale and buy-back prices drop like a stone. Why not rent Fable 2 and save yourself $50.00? Of course, renting pisses off developers as well because they see no additional revenue.

While the economy struggles and consumers fight for their jobs, the entertainment side of life continues to grow. People would rather “cocoon” in their homes playing video games and watching movies on their brand new HD television because it takes them away from the low points of the economy if only for a few hours. History has shown us trends in entertainment during the down points of economies, it’s natural to want to get away for a bit.

But, consumers want to play these games on the cheap because their job may not be there tomorrow. Saving $5.00 knowing the store just took the title in for half the price doesn’t bother you; $5.00 in your pocket is better than in their pocket right? The fact that they just pocketed upward of 40% on the game doesn’t matter to you — it’s all about your bottom line!

While we’re bargain hunting during the recession developers are going to try and up sell you to a new copy of the game. If that means giving you special game items and features with a “one time code” upon purchase, it will be up to you to decide if it’s valuable. All the while GameStop will lock out the game industry from selling used games because 42% of their overall gross profit is from used game sales.

You, the consumer, benefits from a slightly cheaper game, bargain bin fire sales and additional game features if you do choose to buy new. The economic down turn is a great time to be a gamer, as long as you remain employed.

Microsoft Says They’ll Win Console WarMicrosoft Says They’ll Win Console War

Apparently the war is in full force and Microsoft’s Don Mattrick is ready to poke the flag in the ground and call it a sure fire victory (in so many words). He said he’s “willing to declare here today that Xbox 360 will sell more consoles worldwide this generation than PS3” (eurogamer)

They’re either not seeing the Wii as a competitor or are trying to avoid that evil word considering the growth of the tiny little console in the market. After telling the audience the Xbox 360 has already outpaced the PlayStation 3 and Wii he failed to mention the one-year head start the 360 had over its competitors.

There are, of course, bonuses to talking figures when you were first out of the gate. The interesting facts, which won’t present themselves for years now, will be the end unit sales figures for Wii, 360 and PlayStation 3 when all boxes are end-of-life’d. We’re sure to hear each side declare victory when they’ve decided when the war actually ends. In Microsoft’s eyes, the console war will probably end when they release the next-generation box, barring the fact that they should wait at least one year before claiming the title.

You can’t argue with the facts, Xbox 360 is doing very well in the United States (if we ignore Japan). The Nintendo Wii has sold 8.8 million units to the Xbox 360‘s 10.3 million units. How many units did the Xbox 360 have sold around the same time Nintendo boasts 8.8 million? Probably a bit less.

Press can be a great thing when you have numbers to play with and figures to skew. Oddly enough, if some of us are any indication, we’ve purchased multiple Xbox 360’s because of dead systems. Sure, we’re stupid for actually doing it, but those figures will work into the total units sold for the Xbox 360 hardware sales. Imagine, their failing systems may have actually boosted sales figures a bit; probably not statistically significant but funny non-the-less.

We can’t wait to see what type of numbers Sony and Nintendo are going to fling out. If we ask each competitor, we’re sure they’ll say we’re going to win the console war. Nintendo may just ask, “what console war? We just make game hardware” and you can’t fault them there!