GTA IV: 46th Best-Selling Game In August

September 12, 2008September 12, 2008| schommerschommer| 0 Comment| 9:09 am
Categories:

Like a washed up superstar, Grand Theft Auto IV continues to drop in NPD figures. This Axl Rose of video games came on strong and sputtered out into oblivion with barely a notice, leaving the spotlight and all hype behind it. This drastic fall may hurt any negotiations “behind closed doors” with Electronic Arts and their constant attempts to take over Take-Two.

Prior to the release of GTA IV we, in our gaming podcast, predicted a huge launch would up the anti against the bids on Take-Two from EA but things didn’t work out exactly as we expected. Although the game has sold 8.5-million units, it might not add any new bargaining power to the back door negotiations.

A game company is only as good as their games. A hit title which dies out quick helps financially guide the future of the company; technically the future isn’t so bright. With the title quickly falling off the top game sales charts we may never see it hit record sales figures to match that of smaller titles. Having one hot title every four years that “breaks records” for a week isn’t a strong weapon against a low bid from a larger publisher.

While EA may not have any record setting “one week” sales titles yet, they do have a consistently strong set of titles which stick on the charts for months with newer titles arriving to take their spot when they fade. The same can be said for a few other notable publishers, Activision and Ubisoft. To survive in the hot game industry, especially with market downturns, one must have a cycle of great games to publish throughout the year consistently year-over-year in order to provide evidence of their financial stability.

Assuming the bid won’t raise for GTA IV, where does that leave Take-Two? Perhaps Take-Two is better off under the umbrella of Electronic Arts after all. The waters are getting more hostile in the industry as companies compete for gamers attention with 100-million dollar titles and casual games and game consoles (read: Wii) start to build a whole new none-gamer-style momentum.

Is Take-Two better off under the EA brand?

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Your email address will not be published.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.

Read MoreRead More

July NPD Unit Sales: Wii On Top… AgainJuly NPD Unit Sales: Wii On Top… Again

Believe this, Nintendo and their Wii console takes another month as top seller. The only product that moves more hardware than the Wii is the DS. As a gamer, it’s hard to understand how the Wii product continues to sell like this with the least supported game library on the planet.

The DS is completely understandable as it has a huge library of games, is more cost effective, comes in pretty colors and can save you tons of arguments and fighting from your kids on a long trip. In many ways the DS is synonymous with peace and quiet. What does the Wii offer us? Wii Sports and a new control scheme along with a few hit titles from Nintendo but little else for now.

I’ll be the first to admit, I thought this would be Nintendo’s chance to turn it all around and get the third parties involved. They have everything going for them in terms of sales, third party developers should be pushing out games each month considering the craze factor of the hardware. This just isn’t true.

(more…)

Read MoreRead More

Spore DRM, Less Than TransparentSpore DRM, Less Than Transparent

It turns out Electronic Art’s Spore has some digital rights management (DRM) under the hood that’s irking a few video game players. We use the term “few” lightly, as game players use their voices to be heard and let them ring loud! Taking a gander at Amazon.com’s listing of Spore and you’ll see 797 customer reviews with an average rating of 1-star.

What’s the problem with the DRM? It’s almost easier to ask what isn’t the problem with the DRM in Spore. First, it’s intrusive, install Spore more than three times and you’ll have to call Electronic Arts to have them re-activate the game. Are we renting games now?

To re-activate your game with one more additional install will require you to give proof of purchase, so the comments say and, pretty much, you’re assumed to be pirating the product immediately. That might be over-reacting, a bit, but not really much considering the limitations on the product.

What if the DRM solution goes wrong? What if the game cannot access the Internet upon installation? There are plenty of what-if scenarios one can play out when they find their precious $50.00 game is phoning home to protect itself from you and your habits.

“This caused EA to remove the requirement that the game authenticate online every ten days, changing it to authentication whenever new content was added to the title. Unfortunately, that doesn’t seem to be enough, and the limit on installations is what gamers are now finding most heinous. Review-bombing Amazon is a particularly nasty way of getting the point across as well; casual gamers who aren’t aware of this campaign may not bother to read the content of the reviews and only assume the game isn’t very good.” (arstechnica)

No doubt all the negative press will result in a full on revolt, having gamers who’ve not purchased the title ding it with a 1-star to prove a point, why not? How else shall we fight “the man” and their unholy DRM solutions.

Oddly enough, you can find the game pirated already across the Internet, what has this proven? The game was found on torrent sites before it’s release, already cracked. It’s said they’re using a Sony DRM solution, a known DRM solution, which means hackers whom have already cracked this protection before had it un-shelled in a matter of hours.

What did the DRM get Electronic Arts but a PR nightmare and a bunch of people stealing it off the Internet now that they know it’s already available? Lot’s of publicity for very little gain; imagine the reviews and comments had they chosen to go without a DRM solution and be a pioneer of future technological solutions.Sure, it would be on a torrent site within hours… but it was anyway.

Read MoreRead More