Episode 459: This Week and Last

So, thanks to an untimely computer breakdown, last week’s episode could not be run in a timely manner. So, this double-length episode features an off-the-cuff discussion of videogames with no notes, with last week’s episode tacked on. There’s not much editing in the episode, due to the fact Jonah has to rush off to Boston to attend PAX East over the weekend.

Last week’s “news” includes:

  • Middle Earth: Shadow of War leaked then announced
  • Microsoft announces Netflix-style gaming for the Xbox One
  • Videogame industry lobbying to maintain “repair monopoly”
  • Microsoft plans to bring mixed reality to the Xbox in 2018

All this and some Listener Feedback

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PlayStation 3: Not About Quantity, About ProfitabilityPlayStation 3: Not About Quantity, About Profitability

The Xbox 360 price drop rumors flow like water and it’s all but officially been announced at this point. What about PlayStation 3 and their price? No.

Nobuyuki Oneda, the Sony’s chief financial officer said, “our plan is not to reduce the price. Our strategy is not to sell more quantity for PS3 but to concentrate on profitability.” (gamespot) This makes complete sense coming from their chief financial officer, as their motivation is to make money, not lose it.

The question remains, how will they actually make money if they’re no longer in the race for competitive market prices? Considering game licensing must Net them some amount of profit Sony’s idea seems to be the exact opposite of their original PlayStation method: saturate the market and sell them all games.

So far we’ve seen very few “need to have” games for the PlayStation 3 console while Xbox 360 continues to build a substantial library and Wii continues to break sales records for apparently no reason. When a game publisher has to decide on a platform to launch a new game, why would they choose the one that doesn’t care to be competitively priced in the market? The one that doesn’t care about quantity of sales?

Sony intends to reverse the entire razor blade philosophy where one sells a cheap razor and charges users for the blades over and over again. Their take on this concept is to sell really expensive razors and put out small half-quality blades. Is that a good market strategy at this point?

Australian PSN Restoration DelayedAustralian PSN Restoration Delayed

The Japanese government has not allowed PlayStation Network to be activated for Japanese gamers yet due to security concerns, and now an expert is advising Australia to follow suit.

Professor Bill Caelli told newspaper The Australian, “Why is it that in the IT industry enterprises certify themselves?” said Caelli, noting that PSN didn’t have the same restrictions, and added that the public has “no way of assessing the assurances given by the owners of the (PSN) system themselves”.

Reportedly, Australian privacy commissioner Timothy Pilgrim has been in contact with Sony, and has not judged yet whether Sony has given them enough information to restore PSN. His investigation will be an ongoing one as well, even after PSN is restored.

When it was discovered user information had been stolen during the PSN breach, the Australian federal government announced plans for a law forcing companies to disclose privacy breaches, although it was unclear when it might come into effect. Privacy minister Brendan O’Connor had stated:

“Sony isn’t alone. We’ve seen serious privacy-related incidents in recent months involving other large companies. All companies that collect customers’ personal information must ensure that the information is safe and secure from misuse.”

We’ll stay on this story as it develops.