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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Star Wars Galaxies Shutdown BacklashStar Wars Galaxies Shutdown Backlash

Despite the announced shutdown of Star Wars: Galaxies and the approaching new Star Wars-based MMO Star Wars: The Old Republic, loyal subscribers don’t want Galaxies to end. They’ve begun a petition to try to convince Sony to let the MMO live on as a free-to-play MMO.

The petition asks Sony to convert the game to a ‘freemium’, microtransaction-based MMO, and that Sony consolidate players onto a smaller number of servers and facilitate character transfer to reduce operational costs in order to keep the game running. The petition has already gotten thousands signatures in a few days.

One of the petition leaders posted:

We are not your typical gamers.

We are not a commodity.

But if you look at the recent decision by Lucasarts to shut down Star Wars Galaxies, you might be inclined to think we are both of those things. Lucasarts thinks that we are a non-perishable commodity that can be shoved into a shipping crate and moved down the road to their next project. That is not the case. Not even close.

We are a vibrant community. We have seen our ups and downs, but we are only stronger because of it. We have endured all manner of broken promises and misleading “improvements” to this game, and throughout all of it, we have continued to build our community, and show support and loyalty to this great game. But we didn’t do it because of a game. We did it because of our community here.

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Activision: Cleaning House, Losing StudiosActivision: Cleaning House, Losing Studios

Now that Activision has merged up with Blizzard all under Vivendi it’s time to consider what to do with all the additional overhead, management, internal studios and sheer amount of people working on projects within their organization. In other words, it’s time to trim the fat and get leaned out for the long haul.

This isn’t unexpected news, the only way to grow more effective as a large company is to remove some of the access baggage that can slow you down and let your competitors take control. This is a sad job which nobody takes pride in (most normal people anyway) but it could mean the difference between rising to the top and sinking like a brick.

“We are focused on improving efficiency across the combined organization and are concentrating on businesses where we have leadership positions that are aligned with Activision Publishing’s long-term corporate objectives,” Activision Publishing CEO Mike Griffith said in a statement. (gamespot)

It’s important to be aggressive as a large company, just like you would be as a startup company. There is a reason startup companies grow into powerful competitors that win, grow and eventually become (or be purcahsed by) larger companies.

As part of this move some staff will be migrated to new projects, persumably reporposed into other divisions or allowed to find new jobs somewhere else. This is called “realignment” by those in the management organization, and currently those up for realignment are:

  • Radical Entertainment (Prototype, Crash of the Titans)
  • High Moon Studios (The Bourne Conspiracy, Darkwatch).
  • Massive Entertainment (World in Conflict, Ground Control)
  • Swordfish Studios (50 Cent: Blood on the Sand, Cold Winter)

These realignments along with other organizational changes will effect a few working game titles:

  • Brutal Legend
  • Ghostbusters
  • Wet
  • Chronicles of Riddick: Assault on Dark Athena
  • World at Conflict: Soviet Assault
  • 50 Cent Blood on the Sand
  • Zombie Wranglers
  • Leisure Suit Larry: Box Office Bust
  • Several Xbox Live Arcade titles

At this point we’re not sure which, if any, will continue to be developed under Activision and which will be sold off to other companies or retired. Surely, those money making titles will be sold off if Activision has no plans to finish them.

Again, it’s hard to consider this a bad decision. This is a decision of growth over having too many “Cooks in the kitchen” making soup. It’s better to have rock solid titles of epic proportions than a large pool of mediocre titles with minimal sales and bad reputations, and that’s why they spend a lot of time in the office working on this and having a type of  office chair for long hours on a computer is really helpful in this area.

It’s not that the titles they’re questioning are necessarily bad, but are not the leading titles in their space and are should be either given a stronger team to work on them or retire them entirely. To build a stronger team with passion and direction it might be best to sell the franchise(s) to other organizations so they can do it right with time and attention to detail.

(Thanks, gamespot)

Circuit City Denied Sony Shipment, In TransitCircuit City Denied Sony Shipment, In Transit

Circuit City seems to have a problem paying their bills or so it seems, as Sony stopped their shipments mid-transit and returned them before hitting the distributors command center. In this unfavorable market climate, with the holidays around the corner, it seems bad for Circuit City to lose the trust of Sony.

Sony is afraid, “Circuit City couldn’t pay for the shipments” so the merchandise was turned around and returned home. Considering Sony, more than likely, wouldn’t have shipped the products to start with unless Circuit City was in good standing suggests things might have been “learned” after the shipment left the docks.

Circuit City’s been in some bad situations before, having a rough time dealing with competition in a very low margin, high volume, world of electronic retail. I’ve witnessed CompUSA disappear after the local Best Buy moved in and now Best Buy sits about 80 yards from Circuit City.

This is unfortunate because Best Buy can use some competition before they take over the bulk of this industry leaving only Wal*Mart and a few smaller stores to keep them in check. Considering I just purchased a 2-year warranty on my Rock Band 2 drum kit at Circuit City I’m fearing I’ll have to break the hardware sooner than later!

(Thanks, Gizmodo)