Is This The Golden Age of Gaming?

Entertainment Software Association (ESA) president Michael Gallagher called this the “Golden Age of Gaming” during his E3 keynote address. Calling out innovators like Nintendo who have “helped revolutionize our industry” and Sony’s Home initiative.

The keynote fell on the ears of fifty or so people who filled the large room awaiting his talk. Gallagher believes we’re in some of the best years of the gaming industries life based on… sales figures, technology and innovation?

If we’re in the Golden Age of Gaming we might as well pack it in now. Text book definitions of the phrase are defined as “the first and best of the four ages of humankind; an era of peace and innocence that finally yielded to the silver age.”  Or, “the most flourishing period in the history of a nation, literature, etc.” (dictionary.com)

By that definition, we’ve seen the best to come and everything from here is downhill. When a person retires from work they’re often said to have reach the “golden age” of their career. Is this the correct message to be sending to the industry? That we’ve done it all and now it’s time to sit and relax.

In terms or progress it seems we’ve only just begun to realize the potential of the growing industry. We’ve learned there is a place for intense graphical games and fully interactive motion-sensitive product lines and accessories. We’ve broken the mold on game controller designs with the Wii controller, Wii Fit, Rock Band, Guitar Hero and keypad controllers like the 360 attachment.

Nothing has been perfect or “at peace” in the industry. Nintendo is releasing the Wii Motion Plus accessory to increase their sensitivity in their games and, overall, fix the limitations of their Wii controller. Sony continues to work on scaling and global presence in Home while Microsoft continues to update their Xbox Live solution with new creative community features, not mention the failure rate on the 360.

The console realm is far from perfect and the PC gaming realm is an ever growing technological race of bleeding edge graphic cards and powerhouse processors. PC’s and consoles shrink their technology, conserve power with new advances and are still learning how to handle multi-core designs. How is this the golden age of gaming when we’ve not yet found our true potential?

Sony has said they’re working on a 10-year game plan and you can only “imagine” what the PS3’s going to have for gaming titles in two or three years. They’re jazzed for the upcoming 2009 and beyond; if this was truly the golden age of gaming we’d all be sitting back sucking on grapes handed to us on golden platters by servants.

For Gallagher to even suggest we’ve hit our full potential shows he’s not looking at the big picture. Perhaps he meant E3 has hit its golden age?

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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.

It Pays To Follow Trends: iPhone Dev Makes $37,000 In One DayIt Pays To Follow Trends: iPhone Dev Makes $37,000 In One Day

In the world of game development, everyone wants to make it to the top or at least sell their game and feel a mild bit of success. Developers jump into this industry to express their passion for games and not always to make a million dollars. However, one developer is on the road to a million bucks.

ishootEthan Nicholas, developer of a tank artillery game called iShoot, told Wired.com he quit his job the day his app rose to No. 1 in the App Store, earning him $37,000 in a single day. (wired.com)

Now here is a career choice made for you! He goes on to say that he’d be a millionaire right now if it wasn’t for taxes. We’d also remind him to check out Apple’s cut of the profits too, that might be slowing him down. However, if it wasn’t foir the little iPhone he’d still be working his day job. He’s expecting to hit a million by the end of the year, not too shabby for an iphone shooter game, eh?

He created a ‘lite’ version of the game, much like other developers have, but iShoot Lite shot itself to #1 on the apps charts and his little marketing message “buy the full game for $3.00” was the key he needed. Once people got a taste of the free application they went back for more and now he’s going to be thanking himself for the marketing position he put himself in.

It’s been a few years since a single developer has been able to find gold so quickly, but he did work hard to get to this point. Hustling at night with his one-year old and a dream, he is a self-taught iphone developer who spent hours on the computer desiging the title. Granted, thousands of developers have tried the same move for PC gaming and other such mediums, Ethan Nicholas has proven there is great potential in the iphone along with a few other developers who have found success in the hand-held sector of casual gaming.

Congrats, hope you make it to a million and beyond!

NXE, Theme Packs, Avatars and ImpressionsNXE, Theme Packs, Avatars and Impressions

We’ve had some time to look through the New Xbox Experience (aka Fall Update 08) for the Xbox 360. There are some goods, bads and oddities about the latest updated firmware and thought it was a good time to share.

The most important feature we’ve found with the new console software is the addition of Netflix. The ability to play software in the “Instant Queue” is excellent, fast and done with high quality. If you have children this may be one of the must-have product features; add a ton of family movies to the Netflix Instant Queue and your children will have hours of entertainment.

We’re not telling you to sit the children in front of the TV for ten hours, but it proves to be a great way to get quality entertainment without bombarding them with commercials telling them to tell you they need new stuff. This is especially true around the holidays where kids are watching more commercials than actual episodes of Sponge Bob Square Pants.

We were a non-Netflix household and recently bought into their second tier program so we can watch instant shows and get one DVD at a time. The NXE has up-sold at least one new Netflix customer, great job Microsoft!

Avatars are another “feature” to the new console software and it all seems very Wii like. Months ago we were kidding about how they’re cloning some features of the Wii but in reality, it’s more a clone than we thought. The sound track while creating your Avatar feels almost ripped from the Wii in terms of cute settling sounds and silly uplifting music. This isn’t your dad’s console anymore Timmy.

The outfits to dress your Mii, oops, avatar in are very limited and you’ll no doubt see a lot of sameness in dress and overall look to the avatars. But, now Microsoft is showing us how to differentiate ourselves by purchasing virtual items to make our avatars cooler. For 250 Microsoft points you can now buy a Ninja Blade theme pack which includes wallpapers and avatar items. Yay. No, seriously, we’re supposed to buy this crap?

The NXE also supports a full system re-design, out with the blades in with the… Cover Flow? The NXE now acts more like iTunes, the iPod and the Apple OS X more than ever. You’ll breeze through your game list, NetFlix Queue, Friends List and other features as if it were Cover Flow album art. Cool in some ways, frustrating in others.

In some ways, item lists are the fastest and easiest ways to view things. For instance, prior to NXE you could tell who was online in your friends list within a few seconds. Now, with NXE you’ll troll through your friends list four-by-four flying through the “art” of your friends avatars hanging out next to a “room” mimicking the game they’re playing. Cute, no doubt, but not an effective way to see who is online.

The in-game console pop-up windows are much cleaner and easier to browse using a mini-blade style approach to finding information. This new re-design allows you to get more from your console interface while in-game than ever before.

The one neglected feature, in my humble opinion, is the “spit and polish” of the new interface. They took some aspects of OS X and some aspects of Wii and mixed them together to make organizational changes, some good and some bad. However, the interface is very flat, drab and boring. There is no real glossy shine to anything, very little in textures for backdrops and windows fixtures and very anti-vista like when it comes down to drop shadows and beauty. A little more glamor, gloss and reflective surfaces would have made the interface look a bit more next-generation in terms of cool factor.

Overall, it is what it is. You may like it, hate it or just learn to live with it. Some features will be easier to browse around while others will require a bit more work. We’ve noticed about a 10 to 12 second pause between shopping screens for add-ons, arcade game downloads and such, hopefully that will change in the coming weeks. It stands out as a bit different from the competitors, in some aspects, while paying tribute to some of the cooler features of other products.

The Netflix addition is the best part of NXE, but that could have come available without a full user interface redesign. Your thoughts?