GTA IV: 46th Best-Selling Game In August

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?

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Sony, Next Big Software Company?Sony, Next Big Software Company?

Every day we’re hearing of a company running through a round of layoffs or going out of business, it’s really not a happy time. Sony is not immune to the economic troubles either. Sony is talking restructuring and that involves a potential head count reduction of 16,000 jobs due to plant closings.

floppyThis leaves Sony with some hard decisions. Restructuring can mean drastic changes that effect all their product lines. The PlayStation 3 isn’t currently a shining example of high profit margins. The console needs time to reduce its overall cost, chip sizes and bring profitability. Is it in danger?

“Sony’s not in a position to halt all domestic production but it has to do something that drastic,” said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management. “If it announces plans to move production overseas while keeping only planning and development functions in Japan, that would be a positive.” (gamestooge)

The yen is losing value in our global economy making it more difficult to export the product and build any type of profitability plan. “A source said this month the company will likely suffer an annual operating loss of about $1.1 billion, its first such loss in 14 years” (news.yahoo.com) All this noise is making CEO Howard Stringer contemplate Sony’s involvement as a “software only” company, making us recall the changes at SEGA to this same result.

The Financial Times reported Sony will unveil details of its restructuring steps on Wednesday or Thursday. It said Chief Executive Howard Stringer was meeting with resistance from some executives to shifting the company’s focus to software from hardware and cutting jobs in Japan. (news.yahoo.com)

Is this just a case of a fearful executive trying to lay plans for a more stable future? Software is easier to develop, pays for itself quickly and becomes pure profit as it ages. Hardware requires constant upkeep at manufacturing facilities, chip reductions and a boat load of quality planning for first shipment. Would Sony go full software?

Let’s face it, Sony isn’t SEGA, they’ve been developing hardware for consumers since anyone can remember and they’ve been doing it with quality and market penetration. It seems absurd to think they’d forgo hardware designs in replacement of a full software solution to the problem. In addition, Sony has already invested a large amount of cash into seeing PS3 through it’s 10-year plan and letting that die now is realizing a huge loss on investment.

If Sony pushes through the economic and maintenance course, the PS3 will become highly profitable, much like the PS2 last generation (with a slower ramp up for sales). Even if they break even after ten years it seems a lot better than throwing all the effort away.

Perhaps Howard Stringer is talking “software” for the next generation home console? You think Sony will create a PlayStation 4?

McFarlane Toys Makes Guitar Hero Action FiguresMcFarlane Toys Makes Guitar Hero Action Figures

Activision has decided to take Guitar Hero to the next level: Action Figures. This is a great move for the company, striking the iron while it’s hot! The Guitar Hero and Rock Band franchises are growing in intensity while big blockbuster titles like GTA IV are waning in sales and profit.

Pretty soon you and your children can purchase action figures in the liking of Guitar Hero, would you consider this or is it just a gimmick?

McFARLANE TOYS ANNOUNCES PARTNERSHIP WITH ACTIVISION
TO PRODUCE GUITAR HERO(tm) ACTION FIGURES

TEMPE, Ariz. ~ McFarlane Toys announces a partnership with Activision, Inc. (Nasdaq: ATVI) to produce action figures from the hit video game franchise, Guitar Hero®. The first line is expected to hit store shelves this fall.

The hugely popular Guitar Hero franchise delivers the ultimate guitar-bending experience and enabling aspiring axe-shredders everywhere the chance to Unleash Their Inner Rock Star. Featuring a wide variety of music spanning five decades, the franchise is highlighted by countless original recordings from many of the most beloved artists of all time.

Represented in the first line of action figures are four of the Guitar Hero game’s most popular characters:

JOHNNY NAPALM
AXEL STEEL
LARS ÜMLAUT
GOD OF ROCK

“We have very recently begun creating toys based on video games,” says McFarlane Toys CEO Todd McFarlane. “With Activision, we get to work on arguably one of the biggest video game franchises out there, and capitalize on the wide-ranging demographic that encompasses this game.”

Each figure has 15-18 moving parts. Additionally, a unique guitar is included with each character that is removable and interchangeable with the other figures. Each figure also comes with a sculpted Guitar Hero logo base.

McFarlane Toys’ 6-inch action figures retail for $10-$15.

Visit www.SPAWN.com for updates and the all the latest and to-the-minute news.

About McFarlane Toys
Grammy-and Emmy-winning producer/director Todd McFarlane, creator of Spawn and the founder of  SPAWN.com, is the force behind McFarlane Toys, one of America’s top action figure manufacturers. With an eclectic array of movie, TV and music licensing tie-ins – as well as the officially licensed teams of the NFL, NBA, MLB and NHL, McFarlane Toys has become a leader and redefined the standards within the action figure industry. For complete information on this pop-culture powerhouse, visit SPAWN.com.

About Activision, Inc.
Headquartered in Santa Monica, California, Activision, Inc. is a leading worldwide developer, publisher and distributor of interactive entertainment and leisure products.  Founded in 1979, Activision posted net revenues of $2.9 billion for the fiscal year ended March 31, 2008.

Activision maintains operations in the U.S., Canada, the United Kingdom, France, Germany, Ireland, Italy, Sweden, Spain, the Netherlands, Australia, Japan and South Korea.  More information about Activision and its products can be found on the company’s website, www.activision.com.