Since Paul is not in this week’s episode, Jonah and Jordan do the podcast completely nude, to help boost ratings. While being naked, rather than a Gaming Flashback, this week is a Gaming Preview, and Jonah and Jordan discuss the recently announced South Park: The Game, developed by Obsidian.

The other news covered includes:

• Electronic Arts responds to expiring Online Pass issues
• Bethesda: Divided memory pool causes lag for Skyrim PS3
• Sony claims Uncharted series has 13M sales lifetime
• Skyrim Creation Kit landing in January
• Sony: PlayStation Network now has as high a “world-leading security system” there is

There’s also some Reader Feedback and the Question of the Week is “Have you ever taken a console with you on vacation (not handheld)?”

This week, Paul is too busy unpacking in his new home in California, so it’s just Jonah and Jordan, as the news mainly deals with DRM. The Gaming Flashback this week is the Activision racer The Great American Cross-Country Road Race, while this week’s Gaming History doesn’t focus on a video game company or developer, but a fictional character instead, Mario’s favorite mount, Yoshi.

The news this week includes:

• EA forum bans cause game bans
• Research film states piracy’s up 20% in past 5 years
• GOG sez customers hate DRM
• Steam user database cracked
• Uncharted 3 launches with 1.1M sold in first week

All that plus Reader Feedback and the Question of the Week, “What DRM would you tolerate?”

This week, Paul is not around, as Jonah Falcon and Jordan Lund discuss the latest news, which includes pandas. Lots and lots of pandas. That, and a Gaming History profile on David Crane.

The news this week includes:

• World of Warcraft: Mists of Pandaria announced
• Sony: April PSN outage has resulted in improved service
• Deep Silver: “There is a clear technology gap“
• Starcraft II DOTA mod will remain free but monetized
• “Literally, there’s three of us” on console Diablo III
• Minecraft dev wins interim injunction over Scrolls name

With that is Reader Mail and the Queston of the Week: What was your favorite Atari 2600 game?

This week, there’s no Gaming Flashback or Gaming History, but there is a ton of news and Reader Feedback as Paul is finally present to react to some hate mail.

The news includes some huge items, like:

• No PSN unless you waive lawsuit
• Netflix adds game rentals to Qwikster
• DC Universe Online goes free-to-play
• Xbox Live officially a part of Windows 8
• Microsoft: Xbox TV this Fall
• Rogers Cable ordered to stop throttling gamers
• Nintendo and Valve say no to smartphone games

The Question of the Week: What was the very first home videogame you ever played?

This week, Jonah Falcon rants about the bosses in Deus Ex: Human Revolution while Jordan Lund expresses a desire for cold, rainy weather. This week’s Gaming Flashback is The Elder Scrolls II: Daggerfall, with the following news items:

• Lord British wants to make another Ultima, EA not so much
• Crytek rebukes “unlawful layoff” claims
• Gabe Newell wants Steam on Xbox Live Marketplace
• DICE addresses console “limitations” in Battlefield 3
• Black Ops map packs hit 18 million sold
• Sony targets teens with new PSP
• Angry Birds PS Mini problems

The guys also read more reader mail, and pose this week’s Question of the Week: What was the worst game mechanic you ever dealt with in a game you liked?

Bethesda Softworks vice president of marketing Pete Hines is critzing publishers and developers who shoehorn multiplayer into their games that doing such a thing is “a waste of time” and advises, “Just drop it, don’t bother…it’ll make for a worse game.”

In an interview with Next Gen BIZ, Hines states that using online multiplayer as a tool to prevent used game trade-ins and rental simply doesn’t work, and robs developers of valuable man-hours.

Hines stated:

“(People ask us) for a game like Skyrim or Prey 2, why doesn’t it have multiplayer? Well, our question is always the opposite when we talk to a developer. If you’re doing multiplayer, why are you doing multiplayer? What are you trying to accomplish?

“If you’re doing it just to check a box or because every other publisher says you’ve got to have multiplayer, then just drop it, don’t bother, it’s a waste of time, a giant distraction and it’ll make for a worse overall game.

“We want the best game possible. If that’s a singleplayer game that’s 15 to 20 hours, then make that! Don’t waste your time on features that don’t make the game better.”

The Elder Scrolls V: Skyrim and Prey 2 are two Bethesda properties that will lack multiplayer, but one of the tools to encourage games to keep both games will be downlodable content and, even more important, good communications with the game communities and nurturing the fandom for both games.

It’s the Smurfiest post-Fourth of July podcast ever, as Jonah Falcon and Jordan Lund look back at the ColecoVision classic Smurfs: Rescue from Gargamel’s Castle, probably the easiest videogame ever Smurfed.

If that weren’t Smurfy enough, Jonah and Jordan, working without Paul S. Nowak this week, also check out this week’s Smurfy news:

• Xbox 720 with Halo 4 launch in 2012?
• PS4 also in 2012, with embedded Kinect-like motion control?
• Crytek says Kinect development is “really, really easy.”
• Sony working on new PSN redesign?
• Questions over alleged early close of Sony’s Welcome Back offer.

This week has a ton of Smurfy reader feedback, as well as reaction to Sony’s crackdown of Star Wars Galaxies shutdown petitioners. If that weren’t Smurfy enough, the Question of the Week is pretty Smurfy as well, as readers are asked, “What game that you can’t find anywhere anymore do you wish you could play again?”

As usual, hit us up on iTunes and leave some comments!

Paul crows about Nintendo’s dominance over the ColecoVision and Dreamcast, while Jonah and Jordan reminisce about this week’s Gaming Flashback, Electronic Arts’ Barnstorming for the Atari 2600.

The news also includes the following topics:

• Duke Nukem Forever review fiasco
• Harrison: Apple will be the games industry in 10 years
• Tretton: No need for PS4, PS3 now hitting its stride
• Slimmer PS3 coming?

This week’s Gaming History looks at the husband-and-wife developing team Freefall Associates, while the Question of the Week is: How much weight do you give the score of a review? Let us know what you think.

You might notice that I’ve been pretty silent on E3 2011 previews, despite hustling around the entire time. That is because I’ve been writing almost all of them for Strategy Informer.

So, those of you who are regulars at Gaming Podcast – and judging by hits, there are tons of you – here are excerpts of the previews I’ve written for Strategy Informer for PC, Xbox 360 and PlayStation 3 titles, plus a link to the full article.

UbiSoft’s Pre-E3 Briefing:

At the briefing, they showed off the following games: Rayman Origins, Driver: San Francisco, Far Cry 3, Brothers In Arms: The Furious Four, The Adventures of Tintin, Ghost Recon: Future Warrior, Trackmania 2, Raving Rabbids: Alive & Kicking, Just Dance 3, Rocksmith, Your Shape Fitness Evolved 2012 and Assassin’s Creed: Revelations. (Read more…)

Dead Island (PC, PS3, 360):

Getting back to the mood of the game, missions are similarly realistic and grim. Nothing in the game seems artificially tacked on; the flow and the suspension of disbelief are extremely well done. During a mission, sometimes you’ll rescue another survivor and they will have a mission for you to do right there in the middle of your current quest. You can opt to help them, ignore them, or even screw them by driving them off in their vehicle. This is survival, and sometimes, jjust sometimes, you may give in to temptations to make choices that will make you normally wince. It’s a zombie dog eats zombie dog world and in the middle of an apocalypse, sometimes you have to fortify your own safety at the expense of another. (Read more…)

Star Wars: The Old Republic (PC):

The devs showed a scene in which a Jedi subdued a Sith Lord, and the Lord accepted his defeat and desired the Jedi kill him quickly. In one variation, the Jedi took the dark side choice, cursing the Lord and killing him. In the other, the Jedi took the light side choice and spared him, detecting his desire for death was guilt. He urged the Lord to seek out the Jedi Council and turn back to the light side. When the Lord questioned if the Jedi would accept him back, the Jedi replied there was only one way to find out. They shifted to later in the game when the Sith Lord had indeed had become a Jedi, and stripped himself of the title General, for it held no meaning for him anymore. This was a case in which the actions of the Jedi had changed the story of the game. (Read more…)

The Elder Scrolls V: Skyrim (PC, PS3, 360):

Dragons are a major adversary in the game, and they are viciously tough. They are also intelligent as well – they have no scripts. They follow a procedural AI that is completely unscripted. In one scene, a dragon swooped down unexpectedly to snatch a badly wounded giant from the player who was about to give the finishing blow, flew high into the air, and dropped the poor giant to his death. Why? Who knows, because the dragon then started fighting the player. It arced around the player, hurled fireballs, landed on the ground to attack with claws, then flew again. The player used one dragon shout to summon a storm that created a hard rain and lightning crashes. This wounded the dragon enough that it could no longer fly, and when a dragon crashes, it’s with an impressive thud. Dragons in Skyrim will be what Big Daddies were in BioShock on the expert difficulty – only there will be no resurrection chamber to save your buttocks when the dragon finishes you off. (Read more…)

Tera (PC):

A Vanarch can choose to be a kind monarch through such actions as lowering taxes and so forth, or can be a merciless tyrant who raises taxes, throws people in jail and institutes that the region is now a PvP anything goes area. Of course, the Vanarch must also be careful not to alienate citizens in his region, or risk being voted out of office. The Political system is a daring social experiment at the least, to see what kind of rulers guild leaders will be over a region populated by other players. (Read more…)

Awesomenauts (PS3, 360):

The game plays like your typical Metal Slug clone, with action-platforming, but bursts of jetpacks can allow them to hover in midair for a while, too. Players battle each other with each characters unique weaponry, while trying to bring down the barriers. Barriers are protected by laser turrets. Turrets also spew little minions who basically serve as cannon fodder – staying behind them to absorb damage while you fire over them. Of course, enemy minions are spewed by the turrets, too. (Read more…)

Star Trek (PC, PS3, 360):

The differences in play styles between Kirk and Spock are as you might expect: Kirk tends toward brute force, while Spock gravitates towards finesse and stealth. The differences are even reflected in the more subtle ways. At the beginning of the demo, Kirk and Spock are using the jets in their exosuits to navigate a minefield while trying to reach a hijacked U.S.S. Enterprise. While Kirk clumsily crashes into the ship, Spock makes a perfect two point landing. (Read more…)

The War of the Worlds (360):

The game features a washed out, nearly black and white look in alien controlled areas, which become more colorful when retaken by humanity. The developers state the game is a puzzle-platformer in the mold of Flashback, Out of This World and Prince of Persia, but fans will also see a resemblance to Limbo as well. The game will feature eleven massive levels and dozens of different areas filled with hostile aliens and fleeing humans, but unlike Limbo, the game will telegraph potential deadly traps, making the game more about near death experiences, rather than trial and error. (Read more…)

Defiance (PC, PS3, 360):

This Earth isn’t too familiar, however. Taking place in the near future, it represents a time when aliens have arrived and have begun to terraform the planet to their liking, so expect a bizarre melding of indigenous Earth plants and animals interacting with strange alien flora and fauna. Humans are trying to stop the aliens from changing the Earth, so many missions come from, say, preventing terraforming equipment from arriving in one piece. (Read more…)

Prototype 2 (PC, PS3, 360):

Prototype 2 takes place a while after. New York City has been cordoned off into three sections: Red, Yellow and Green. The Red section is where the virus is still running rampant, and horrific mutations roam. The Yellow section is a quarantine for those who escaped the Red section, but must remain due to suspicion of infection. Finally, the Green section is the healthy part of New York – but it’s not so healthy in that a militia has been stationed there to protect the citizens from incursion by infected – but rule with a violent iron fist. An example of this is when a curious blob of infection has found itself in a lot, the militia deal with onlookers by giving them a few seconds to disperse then opening fire on the crowd with live ammo and killing them. (Read more…)

Star Trek: Infinite Space (PC):

As captain, you can outfit your ship in a myriad of ways, and there are tons of modules that can be purchased (and will be visually reflected on your ship). You can purchase anything from extra ship’s phaser power to buying a cloaking device. Each station in the game varies in the wares it sells. For example, purchasing from a Federation shop will get you the standard stuff, but of very high quality, while you’ll find lesser quality items from the Ferengi, but they’ll also be selling hard-to-find black market items, too. Being a free-to-play MMO, you can buy items with real money microtransactions. (Read more…)

Payday: The Heist (PC, PS3):

One of the biggest thrills is that unlike Left 4 Dead and other like-minded games, you don’t have to jump into the action right away, and you don’t even have to play with guns ablazing. In the bank heist we tried at E3, you entered the banks with weapons hidden to case the joint, looking for the bank manager, who owns the security pass card to the vault. You have to be careful, though – wander too close to a guard and they’ll see your hidden weaponry and react with force. (Read more…)

My previews aren’t done – I’ll update this page as I add previews.

Activision’s Dan Amrich posted in his One of Swords blog that two million users have signed up Call of Duty: Elite‘s beta, who said the number ”blew his mind” when ”they hit that number in less than two weeks. That should give the dev team at Beachhead plenty to work with to kick off the beta, which officially starts July 14.”

“The official start of the beta is a month away, so there’s still plenty of time for you to sign up. When the studio head at Beachhead said this would be a live beta, he was not kidding — your participation really can make a difference in how Elite evolves,” added Amrich, ”And don’t be discouraged by the big number, thinking you shouldn’t bother because they already have enough people — two million volunteers among 30 million Call of Duty players is a small amount. More would be even better. Once you’ve signed up, just watch your email inbox for an invite.”

The 2M beta applications aren’t necessarily an endorsement for Elite. Rather, users are probably curious to see the beta and if it pleases them. The paid subscription portion reportedly only represents 10% of Elite, anyway, and is aimed at more “professional” and “hardcore” gamers, aka clans.

Users can apply for the beta here.

Sony will finally be sending a high-level executive to testify before the US House of Representatives’ Committee on Energy and Commerce’s Subcommittee on Commerce, Manufacturing, and Trade on the three week outage of PlayStation Network and Sony’s slowness in informing its customers on the compromising of personal and credit card data.

Ken Johnson, an aide to subcommittee chairwoman Mary Bono Mack (R-CA), told The Atlantic Magazine that Tim Schaff, president of Sony Network Entertainment, would testify before the subcommittee next week:

“While Chairman Bono Mack remains critical of Sony’s initial handling of the data breaches, she also is appreciative that the company has now agreed to testify. The Chairman firmly believes that the lessons learned from…the Sony…experiences can be instructive and guide us as we develop comprehensive data protection legislation. We expect to introduce that legislation, which will provide new safeguards for American consumers, in the next few weeks.”

Previously, Sony’s Kaz Hirai had only sent his testimony in a letter to the Committee.

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.

CNet is reporting that partial service PlayStation Network has been restored, allowing gamers to play online and shop in the PSN Store. Nearly its entire portfolio of online games, game forums and Web sites will go back online but the company will also require players to reset their passwords.

Sony states:

As the result of a criminal cyber-attack on the company’s network, SOE shut down its game services in order for the company to undertake an investigation and incorporate rigorous enhancements to the overall security of the network infrastructure. SOE worked with several outside respected security firms during the course of implementing significant security measures that strengthen safeguards against unauthorized activity and provide customers with greater protection of their personal information.
SOE made enhancements to overall data security as well, including updating and adding advanced security technologies, additional software monitoring, performing new penetration and vulnerability testing, and increased levels of encryption.

“Our main priority is the safety and security of our customers’ personal information,” said Kazuo Hirai, Executive Deputy President, Sony Corporation. “We are making consumer data protection a full-time, company-wide commitment, and have applied enhanced security technologies so that our customers can feel protected and confident about playing our games.”

Hirai added, “We are committed to delivering secure and entertaining games for players of all ages and thank each of our players for their patience and support during this difficult time.”

SOE will also be offering its customers a “Welcome Back” program that includes special game content and services to all registered Station Account holders. As part of this program, players will receive 30 days of additional game time plus one day for each day SOE’s services were down.

The first phase for North America and Europe includes:

• Sign-in for PlayStation Network and Qriocity services, including the resetting of passwords.
• Restoration of online gameplay across PlayStation 3 and PSP.
• Playback rental video content, if within rental period, of PlayStation Store Video Store on PS3, PSP and Media Go.
• Music Unlimited, for current subscribers, on PS3 and PC.
• Access to third party services such as VidZone and MUBI.
• Friends’ category on PS3, including Friends List, Chat Functionality, Trophy Comparison, etc.
• PlayStation Home.

Comments on GameStooge have already shown PSN users happily reporting that PSN is back for them. Is it back in your region? Let us know.

The patience of PlayStation 3 owners is wearing thin as retailers are reporting a 200% increase in PlayStation 3 trade-ins, usually for Xbox 360 consoles, as well as sales slumps for PSN points cards and fewer multiplatform game sales for PS3.

“In the first week of downtime we did not really see any major change in sales or trades,” says one source, a store manager at a major UK retailer speaking on condition of anonymity. “However from the second week onwards we have seen an increase of over 200 per cent on PS3 consoles being traded in, split almost 50/50 between those trading for cash and those taking a 360 instead.”

Another UK source has reported that the independent retailer had seen a “massive increase” in the volume of PS3s traded in in recent weeks, and has pegged the biggest trade-in demographic as “the hardcore online shooter crowd”, who are logically the group most likely to defect when their online gaming is wiped.

Belgian-based Gameswap spokesman Tom Mestdagh went on record to state, “At the end of each month people come to sell their consoles. People that need money (to pay bills). What’s different this time around is that that they are bringing in PS3s together with all their games and they don’t want money, they want an Xbox 360. In every case it is because of Black Ops and or Modern Warfare 2.

“We’re just ten days into the month and already we have an increase of 200 per cent in PS3s coming into the store compared to all of March. Normally we sell them really fast, but not this time. We’ve only sold 30 to 40 per cent of our inventory right now.”

Game purchases have also been markedly affected by the PSN outage. Sales of Call of Duty: Black Ops went from 44% for the PS3 in the first two weeks of the game’s release to 24% of sales of Black Ops last week. Similar trends have struck games like FIFA 12.

Another retailer told Edge:

“A lot of people have been phoning asking us about personal details on PSN as they are struggling to get a response from Sony themselves. Overall, people that have traded with us seem annoyed at how Sony has handled all of this, and say they would not trust them with details again in the future.”

However, it’s all about online gaming. “All we’ve seen is an incredible amount of disgruntled people annoyed that they can’t play online,” stated Mestdagh, and gamers have actually “stopped complaining about the fact that Microsoft charges for Xbox Live. It used to be a big problem for most of our PS3 customers.”

You get what you pay for.

While full PlayStation Network service is expected to return by May 31, Eurogamer is reporting that an internal Sony source is promising that online matchmaking will be up “in a few days”.

SCE corporate communications director Patrick Seybold would not confirm this, only stating:

“We’re working to get the network back on as soon as we can.”

An unnamed PlayStation Europe community manager has confirmed that Sony is prioritizing online play, and getting online matchmaking up as soon as possible.

According to a tweet from Musterbuster:

“Once again, 31st May is the date for FULL restoration of PSN services. Restoration is phased. Online gaming will return BEFORE May 31st.”

We’ll keep following the story as it happens. Soon, PS3 gamers will finally be able to hack enemies to pieces with Kratos online in Mortal Kombat.

An expert has given testimony to the US House of Representatives Subcomittee on Commerce, Manufacturing, and Trade during its commencement on hearings on the “unauthorized intrusion” on Sony’s PlayStation Network and Qrocity service, stating Sony knew that their security software was dated and lacked any sort of firewall against hacking.

Cybersecurity expert Dr. Gene Spafford’s testimony stated that security experts discovered discussions on forums that talked about how the PSN’s security was lacking. The threads revealed that the network was using old versions of the Apache Web server software, which ”was unpatched and had no firewall installed.”

Worse, two to three months before the attack, the vulnerability was reported ”in an open forum monitored by Sony employees,” but the company took no action to rectify the situation. If the testimony is accurate, Sony could be slapped with a serious criminal negligence charge.

The Sony intrusion alone compromised 100 million accounts both on the PSN and its Qriocity service, according to Spafford. He also cited the total cost of the breach to Sony, credit card companies, and other outfits, at $21 billion. Thieves in credit-card theft forums actually complained that the PSN breach was so great that it was depressing the price of such information by a “factor of five or 10″ on the black market.

Spafford didn’t reserve his accusations for Sony, either. He stated that law enforcement is ill-equipped to handle cyberterrorism and cyberthieft. Additionally, most companies are not equipped with enough security measures because ”investing in security measures affects the bottom line. They don’t understand the risks involved by not investing in security. … So when they are hit, they pass that cost along to their customers, and to the rest of society.” In other words, a classic case of being penny wise and pound foolish.

Spafford’s proposed solution to future security is to limit the amount of data kept by companies such as Sony and to “age the data” so it expires after a certain time.

C-Span posted the video of the testimony here.

(Thanks, GameSpot.)

It’s now the US government’s turn to question Sony about its online security, which follows the UK government’s scrutiny into the company’s affairs.

In a letter addressed to PlayStation executive deputy Kaz Hirai, the Subcommittee on Commerce, Manufacturing, and Trade has prepared a list of questions related to the intrusion; the list can be downloaded from the New York Times here. The letter asks several questions that Sony has not disclosed to the public, such as:

• How many PSN users had a credit card on file
• Why Sony cannot determine if credit card was stolen.
• What are Sony’s plans towards increasing its security in the future.

The Subcommittee’s press release states:

“Given the amount and nature of personal information known to have been taken, the potential harm that could be caused if credit card information was also taken would be quite significant. The Subcommittee on Manufacturing, and Trade has a longstanding interest in consumer privacy, identity theft, and industry efforts to address threats posed by unauthorized access to consumers’ personal information resulting from a data breach.”

The Subcommittee is requiring a reply by no later than May 6, as part of a privacy driven effort “to protect consumer information.”

Meanwhile, Kaz Hirai will be holding a press conference tomorrow from Sony Japan, to address the PlayStation Network hacking crisis.

The conference will be held at 2PM Japan time, which means a lovely 12 midnight time for those in New York and 5AM the next day for those in London.

It is expected that Hirai will announce a new PlayStation Network security system, and when PSN will be live for users to enjoy. He also may announce what sort of compensation Sony will offer.

As for PSN itself, the service is still down, but Sony has already stated that the service would return sometime around May 3. For the last two weeks, PlayStation Network has been down, and worse, personal data was exposed, including millions of debit card data. In fact, some underground sites have begun sellingwhat they claim are 2.2M credit card info, though the claims could be fraudulent or worse, propagating computer worms or viruses.

Regardless, Sony has let users know in a recent FAQ that they’ll compensate their users somehow for the trouble.

The PlayStation EU Blog promises:

“We are currently evaluating ways to show appreciation for your extraordinary patience as we work to get these services back online.”

It’ll be interesting to see what kind Sony comes up with. As a baseline, Microsoft and Electronic Arts have offered free games for outages.

iPhone and PlayStation 3 jailbreaker George “Geohot” Hotz has weighed in on the current PlayStation Network outage stemming from PSN identity theft from unknown hackers in his blog.

He immediately denied having anything to do with the scam, with the reasoning that he’s not stupid, though he doesn’t refrain from taking a potshot at Sony executives:

“To anyone who thinks I was involved in any way with this, I’m not crazy, and would prefer to not have the FBI knocking on my door. “Running homebrew and exploring security on your devices is cool, hacking into someone elses server and stealing databases of user info is not cool. You make the hacking community look bad, even if it is aimed at douches like Sony.”

He continued:

“Also, let’s not fault the Sony engineers for this, the same way I do not fault the engineers who designed the BMG rootkit. The fault lies with the executives who declared a war on hackers, laughed at the idea of people penetrating the fortress that once was Sony, whined incessantly about piracy, and kept hiring more lawyers when they really needed to hire good security experts. Alienating the hacker community is not a good idea.”

Hotz concluded with some words to those behind the scam, again slamming Sony in the process:

“To the perpetrator, two things. You are clearly talented and will have plenty of money(or a jail sentence and bankruptcy) coming to you in the future. Don’t be a dick and sell people’s information. And I’d love to see a write up on how it all went down…lord knows we’ll never get that from Sony, noobs probably had the password set to ’4? or something. I mean, at least it was randomly generated.”

His full blog entry can be found here.

This weeks gaming podcast covers a few top news stories that inspire tons of discussion, we tackle some user feedback and comments, answers of the week and flashback to Archon: The Light and the Dark. We’re also going to review Netflix for the PlayStation 3 for those thinking of ordering the disc from Netflix. This weeks news includes:

• Home No Longer a priority
• Activision looking for more ways to monetize Call of Duty
• October Game sales were down and Casual gamers are to blame
• Super Mario Galaxy 2 harder than the first

This week’s question of the week: what was the best game you played that after playing it, you thought to yourself, “That was good. I’m never playing it again”?

Sony Computer Entertainment Europe has made some leadership changes in response to their in-ability to get things going in the sales department of the PlayStation 3. Gamer’s continue to refuse to believe the PlayStation 3 is in a bad situation by explaining how badly Microsoft’s Xbox 360 is doing in Japan and Europe compared to the Sony console. And, of course, the Wii isn’t competition to Sony.

“Andrew House, Chief Marketing Officer and Group Executive of Sony Corporation, has been named President, Chief Executive Officer (CEO) and Co-Chief Operating Officer (Co-COO) of Sony Computer Entertainment Europe (SCEE) as of May 1, 2009.” (smarthouse.au)

We’ve been told this is the year of the PS3, this is when they bring it all together. Nintendo’s losing some of their grip on the industry with slower sales, even in Japan. The economy isn’t playing nice with any of the consoles and sales continue to drop, reportedly 17% in March compared to last years numbers.

Australia isn’t proving to be any help to Sony, “for example in Australia a consumer can now buy the Xbox 360 for $299 and a separate Blu ray player and DVD upscale player for $199. Combined this is $200 under the recommended retail price for a Sony PS3.”

Here in the United States, we’ve bought more Wii balance boards than PlayStation 3 consoles. One can argue that the Wii is a novelty system but that really casts a dark shadow on the PlayStation 3. The PS3 is being beat out by a novelty item? Can the new SCEE management change the direction of Sony?

There is a bit of confusion regarding the release dates of both M.A.G and God of War 3 for the PlayStation 3. Initially people believed 2009 was the target drop for both titles after a Sony press release mentioned great games being “ushered in” this year following Killzone 2.

The “year” Sony may be talking about is fiscal year 2009… which rolls into March 2010. Although Sony hasn’t tagged either title with an ETA, it’s being assumed that we’re talking 2009 until spring 2010. Given most games launch in the September and October time for the holiday season that leads us to believe it will either arrive for the holiday or slide to 2010. If the title isn’t ready for prime time by the holiday season, can you wait a full year for these games?

More importantly, can Sony?

The best way to build up momentum for the console is to release some hot long awaited titles, M.A.G and God of War 3 seem to be just that product. We now have LittleBigPlanet, KillZone 2 and Metal Gear Solid 4 which were three big hopefuls for the console it would be a huge smash in the face of Microsoft to follow that up with two more one-two punches.

A year seems a bit too far to deliver the blow to their competition. What game are you waiting for on the PS3 and believe will kick unit sales into high gear?

(Thanks, 1up)

The game industry is doing “okay” in this bad economic time compared to other industries.  Primarily, Nintendo is rocking the house with their games, hand-held’s and consoles while mobile developers are showing some great successes in the industry. Many success stories in our industry are based on small titles, downloadable games of the more “casual” style while a few larger titles are experiencing slower than expected sales trends.

We’ve mentioned this in the past, but the tough economy gives many smaller developers great opportunities for success. While big publishers struggle to look good in the eyes of the investor, tiny developers can produce quality titles for minimal cash investment and time to market. Ten years ago, smaller developers tried to compete with the big boys making larger titles, cloning successful titles or simply asking investors to put it on the line for their game. Today, developers can create a small iphone app, a cute WiiWare title or exploit the XNA efforts of Microsoft for Xbox Live Arcade and actually have a chance.

There are still challenges with these smaller developers when working in the WiiWare and XBLA publishing channels, your game marketing and promotion becomes highly reliant on Nintendo, Microsoft or Sony for PSN. Tom Prata, senior director of Nintendo of America talked to Gamespot about this issue:

“Finally, there’s the problem of promotion. It’s not enough to make a great game if nobody notices it. Prata specifically said Nintendo will be devoting more resources to support the promotion and development of WiiWare games in the future.” (gamespot)

Of course, in the world of smaller game titles and downloadable casual games, you’re going to be at risk of finding a lot of “shovelware” — products that are only released to make a quick dime, often based on some license or popular theme/character. The great game titles will, hopefully, rise to the top and show themselves off amongst all the wanna-be money makers.

Those smaller developers putting a huge passion into their titles actually have a chance in this new industry trend. Game makers, internationally, now have a chance to grasp a small piece of the industry and make their dreams come true. The core audience may see this as a trend of noisly low quality titles, but I believe the industry needs this change to grow a new generation of developers based on niche interests.

While many can wait for their next release of Madden the rest of us will continue to spend a little money to see what the future innovators are going to be bringing to the table.

The holiday season is over, the NPD sales data for January 2008 is in and we see a common theme: Nintendo rules the show. While Sony continues to try and persuade gamers that the PlayStation 3 is in a completely different gaming category, statistic gathering companies like NPD put ‘em all in one big basket.

It makes sense for Sony to try to push themselves away from being classified with the Wii console because it makes them look bad. We’re all equal gamers here, there is no need to break into more sub-categories when only three consoles vying for top spot. Many folks (including us) criticize the slow adoption rate of Wii games, yet they steal top software sales spots as well.

• Wii — 679,200
• Nintendo DS — 510,800
• Xbox 360 — 309,000
• PlayStation 3 — 203,200
• PlayStation Portable — 172,300
• PlayStation 2 — 101,200

Thankfully Sony’s PlayStation 3 product took top spot on their hardware list, so that’s not so bad. Sadly, combining all Sony’s hardware still doesn’t meet the units of the Wii.

On the software sales front, Nintendo took six of the top ten positions including position’s one, two and three. Wii Fit takes number one position with an insane 777,000 units sold. The only closest product to Wii Fit was Wii Play (still!) with 415,000 units sold. Place four was held by a 360 title, Left 4 Dead sold 243,000 units.

Although many gamers haven’t turned on their Wii in ages, there is no doubt the market is red hot for Wii. At this point, we’re all wondering how long it will last — any predictions? It’s already been a long time.

David Reeves, Sony Europe’s President said, “we simply have to suffer a little” when talking about the PS3, Europe and the competition. He was talking specifically about Sony’s loss of market share, mind-share and overall performance in the latest competitive console arena. While Sony’s president dismisses Nintendo as in a separate market, David Reeves said, “we’ve learned from Nintendo how to grow the market and move from hand-held device to device – they’ve done it brilliantly.”

What Sony may be dealing with is the fact that they’re not top dog in the latest battle for consoles. Europe has taken to the PlayStation 3 better than the United States and they’ve got plenty of fans in the region. There has been a recent upside to it all, some light at the end of the tunnel:

“PS3 games sales are up 53% and there’s a healthy 1.1m pre-order book for Killzone 2, the first of a new batch of IPs that Sony will be counting on.” (guardian.co.uk)

Although it’s reported the PSP says are down 15% and PS2 software sales are down 51%, at least the PlayStation 3 is filling in the gap for some of those losses. At some point you’d expect the PlayStation 2 to decline, gamers are probably migrating over to the new hardware.

They’ve got some things to be proud of:

• PlayStation Network increases revenues by 200% in 2008
• 55% of all PlayStation owners are on PSN
• 17.5 million PSN subscribers
• 53% rise in software sales on PS3
• Won HD format war

Unfortunately PS3 sales were down last quarter by about 9%, perhaps a response to the harsh economic times. And, of course, the fact that Sony’s VP’s are constantly defending their position in the market is a bit disconcerting. As David Reeves said:

“It’s like Ali v Foreman – go eight or nine rounds and let him punch himself out. We’re still standing, we’re still profitable and there’s a lot of fight in us. I don’t say we will land a knockout blow, but we’re there and we’re fighting.” (guardian.co.uk)

Sony is playing the defensive, guarding themselves against the punches of the competition. Nintendo making headlines for sales, Microsoft coming out of nowhere to try to build market share, while Sony holds out for the tenth round to win it in the end? We’re not yet sure if it’s Ali vs. Foreman or if Microsoft is the next Buster Douglas.

(Thanks, Guardian)

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.

This 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?

Sony’s PlayStation 3 has a 10-year plan. We’ve heard about the plan, we’ve seen Sony’s current execution and we’re starting to see some of the titles making their way to the PS3 for 2009. The Xbox 360? Kaz, Sony Computer Entertainment’s head man, made his thoughts clear when speaking to Official PlayStation Magazine.

“Last time I checked, they’ve never had a console that’s been on the market for more than four or five years and we’ve committed to a ten year life cycle, so you do the math…,” he says. He goes on to state that the Xbox 360 won’t have a larger install base by the end of their 10-year plan has been completed, “unless things go really bad.”

Of course, nobody says Microsoft’s 10-year plan isn’t to push out yet another console. Is that wise? We don’t really know, but you can’t count them out on it. Maybe they’ll only have half the install base but two consoles in the market within the next ten years, nobody really knows.

The one major hole we can see in his comments revolve around their claims that the Microsoft doesn’t have any history of a console being on the market for very long. If I recall, Sony managed to squeek one by on Nintendo with the original PlayStation, which changed everything for the next ten years. Sony didn’t have a 5-year track record when they started taking Nintendo down, why does Microsoft need to have an extensive resume as well?

As for Wii?

“It’s difficult to talk about Nintendo because we don’t look at their console as being competitors. They’re a different world and we operate in our world — that’s kind of the way I look at things…” (kotaku)

Say what you want about Microsoft vs. Sony, but it sure sounds like Sony doesn’t want to acknowlege Nintendo’s success because it casts a dark shadow on their own product. Nintendo and Sony have been battling for years, that’s just the way it is and that’s how the industry sees it. When NPD releases numbers, when journalists write articles about consoles and when the war is finished one thing remains constant: all three consoles are included in the equation.