This Halloween episode lacks TJ, who was dealing with technical issues. No Gaming Flashback this week either.
Let us know what you think.
Gamers around the world are going to feel the pain in the 2009 holiday season after the economy shakes apart many great development studios. Electronic Arts feels the pain of being a public company as their investors complain about lackluster revenue, THQ deals with closing studios to extend their runway and other firms will lose more headcount in the coming months.
It’s not all bad. But, it’s going to get ugly before it gets better.
The financial market has played tricks on everyone in our global economy and companies across all industries are going to feel a bit of a tightening around the belt. Investors are shaken and doing their best to protect their investments and cutting loose those that aren’t projecting profits in the near future. Game studios are going to slow their financial burn rates, trim a bit of the fat and hunker down the long term. The end result, next years holiday season will have a few less games because those games are being dropped to the floor now.
Mid-sized studios within larger firms may find their projects canceled or put on hold and their employees re-structured or let go while big studios assess what projects will make the long haul. This is the ugly side of the business, having to make a decision on what games stay and what games go with the grief of having to tell some of your best talent “goodbye.”
The bad part of the industry is occurring today, with publishers posting mediocre profits and trying to convince their investors to be patient and trust they’ve got a firm hold on their destiny. The game industry is not alone in this, many firms are reducing head count and many startups are finding themselves without series A or B funding; they’re closing their doors because the money is being directed to more stable ventures.
What’s the good in all of this?
It’s amazing to think we’re in our third year of “next generation” console bliss. Three years have passed since the first Xbox 360 shipped, for good or bad, and it’s time to start thinking about the future.
Or is it?
Bobbie Bach, Microsoft Entertainment and Devices president, seems to believe this generation of consoles will expand out further than the typical four-year release cycle. Perhaps because the console developers have invested so much money in defeating each other in the market and making their console “number one” in the eyes of their investors.
Bach does not believe we’re cresting on the current generation, that is for certain, and we’ve yet to hear any hype over a new next-generation console from Microsoft. They were the first to market so, theoretically, they should be the first in the next-generation as well, right?
Their move to be number one was really a strategic attack which has paid out well, leading them above the past domination of Sony and Nintendo before it. However, they are holding strong with the Xbox 360 and there might be cause to sit tight and let this generation playout before bringing in another piece of hardware.
Bach stated that he believes consoles today are competing at different levels than ten years ago. There isn’t one clear winner, there isn’t one dominating console. There will be victors in different areas of the industry; casual consoles, top game sellers, best graphics and others. It’s not about sheer “units sold” it’s more about being profitable and building a community around your hardware, see Xbox Live as a great example.
Next generation will be full of fantastic new features, ways to connect and crazy hardware specifications, no doubt, but… for many of us, it will take years before we forget the pain and suffering we paid shipping our dead Xbox 360’s back to Microsoft for repairs. Would you be willing to buy into their next generation as their first customer?
(Thanks, 1up)
Rumors float around the Internet questioning when Microsoft will ship a Blu-ray enabled Xbox 360 or add-on device like they did with the, now failed, HD-DVD. At CES 09 Robbie Bach, president of Microsoft’s Entertainment & Devices division, says this request is “way down the list.”
Mr. Bach had some great selling points as to why a Blu-ray player has little value in the world of Xbox 360. The primary reason, of course, being the Xbox 360 developers cannot take advantage of Blu-ray as a development platform for games. This was the price Sony, or the consumer, paid to own a PlayStation 3 since all games are printed on the media and are, in effect, Blu-ray “capable.”
We say capable because not all (any?) PlayStation 3 games currently make full use of the Blu-ray media. Many games will reprint the game on the media for optimization purposes, fill the game with international voice overs for all countries or, otherwise, stuff the media with something that will serve a useful purpose. Sony has near-future-proofed their device by giving game developers years of growth in terms of utilizing the Blu-ray capacity.
Microsoft chose to take the smaller old-style DVD format for games and media. Adding the HD-DVD didn’t add a large deal of risk because, as we saw, they can discontinue the model and not change their core gaming demographic. We still laughed a bit at them, but that was where it ended. Bach also said that it’s not really a great economic time to push a new 360 SKU on potential customers with additional cost just for Blu-ray movies playback.
They could add Blu-ray game development support as well but that would just alienate the “28 million Xboxes” they have already shipped.
“OK, let me get this straight: I’m going to add something to the product that’s going to raise the cost, which means the price goes up, consumers aren’t asking for it, and by the way, my game developers can’t use it.” (gamespot)
Of course, the first thing that came to our mind was “well, you did it for HD-DVD, how is Blu-ray different?” The key areas we can think of really come down to Blu-ray is a Sony technology and they are a direct competitor and, to top it off, HD-DVD allowed them to fight against the PS3 at the media level of the industry. They minimized the risk by making the product a secondary add-on device and, if HD-DVD had won, they’d have the winning format already under production (still not for games).
It seems Microsoft has changed their battle plans a little. They started out talking up the media aspects of the 360, using Media Center, renting movies and TV shows and had the HD-DVD as a subproduct. Today, they’re investing in Netflix for media and everything else favors the games.
Which is fine, we like games.
You got a Ryzen 7, AMD is killing it!