End of 100 Million Dollar Games?

Gigaom had a great writeup about how Grand Theft Auto IV marks the end of “next generation” as we know it, stating, in more words or less, the game is a failure. GTA: San Andreas sold 21.5 million copies during its time on the shelf while GTA IV has sold roughly 9 million copies as of June 7th.

Granted, the game is still on the shelves and will still get sales, but the mass of “hardcore gamers” have had their fill and either purchased it or will not. The end result? A huge tapering of sales numbers for the graphically impressive game. Take-Two spent USD $100 million to develop the game which had great opening sales records but has gone down drastically since.

Imagine the title gains them USD $30.00 per sale in profit (considering distributors get the game for roughly USD $45 to $48.00 USD), taking into account shipping of the product, marketing and all the materials that go into producing a copy, they’d have to sell a large quanity of game titles to break even, which I think they have done.

Nobody is in this industry to break even. A block buster title should make block buster profits, right? Else, why bother to spend the 100-million when a Wii title can double or triple the profits with six months of development?

“Despite being part of one of the most popular video game series of all time, the arrival of GTA IV failed to boost sales of new next-generation consoles. (PS3 and 360 are defined as “next-gen” for boasting the best and latest graphics features.) Meanwhile, sales of the non-next-gen, GTA IV-less Nintendo Wii were double that of PS3/360’s numbers combined. If Grand Theft Auto can’t move more machines, nothing can. Which not only suggests that the market for next-gen consoles has been exhausted, but that the audience for big budget, AAA next-gen titles has been tapped out, too.” (gigaom)

Well, holy crap. We’re all so facinated by the game, the graphics, the sales figures but when you sit back and do the numbers, it’s not all that impressive. This is both unfortunate and surprising because they worked so hard and received such great scores on most review sites.

Gigaom predicts this will mark an end to such block buster titles and the result will be lower budget products with more downloadable content and micro-transactions with products having a broader target audience. For instance, Rock Band, Guitar Hero and other innovative titles.

Is this the end of the block buster franchises? Are we going to see a new evolution of gaming for the next generation? Perhaps, it won’t all be about graphics but about technology, control schemes and thinking “outside the box” rather than enhancing a pre-existing franchise?

So many questions, one must wonder, what does the landscape to next-generation gaming really look like, sales figures don’t lie…

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Small Games Make Big WavesSmall Games Make Big Waves

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.

wiiwareWe’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.

Would You Buy An Apple-Based Console?Would You Buy An Apple-Based Console?

Does the console market need any more competitors? We’ve seen record sales in the game industry for titles like Halo 3 and Grand Theft Auto IV along with huge expectations for Resistance 2 and some new Sony PlayStation 3 projects. Yet, the tiny little Wii product holds best sales records around the world as the heavy hitter, Microsoft and Sony, compete for the most awesome spectacle show of graphics.

Competition is a great way to drive down costs, drive up expectations and give consumers new innovative products with better quality. Imagine if Apple got into console development and produced a new highly sexy product with the hype and consumer desire of the iPhone or iPod.

“Apple has the infrastructure in place through iTunes to create a real value proposition for those that want to extend the capability of their console beyond gaming and has the cash — about $20 billion — to not only invest in the best components on the market, but in an online gaming experience that could rival Xbox Live.” (kotaku)

Apple’s showing a huge surge in recognition and sales thanks to the iPod and growing desire for Apple hardware competing against Microsoft’s Vista operating system. As more consumers turn to Apple for their music and mobile gaming needs, Apple must see windows of exploiting the gaming market further.

More importantly, nobody can pull off digital rights management (DRM) and locking consumers into a product line like Apple all while they beg for more. Consoles are little boxes of DRM waiting for happy consumers to buy into the concept all while avoiding the hacking and bittorrenting like you’ve been seeing on Spore in the last few weeks. Had Spore been released on a console this DRM fiasco would have been avoided because gamers don’t even realize (or care) that a console locks them into playing and, more importantly, buying the game for the hardware.

(more…)

Retro FlashBack: DragonFire (Atari 2600)Retro FlashBack: DragonFire (Atari 2600)

Now here is another interesting video game for the Atari 2600, the game Dragon Fire consisted of two game screens, one which you ran across a bridge while fireballs were shot at you, you had to duck or jump over the fireball. This screen was a side-scroller style screen (although it doesn’t actually scroll), at the other end of the bridge was a castle door which you’d enter to get to the next screen.

The second screen was more classic “overhead but not really” screen where you ran around this black screen picking up treasures while a dragon at the bottom shot fire at you from below.

As the game increased in level jumping fireballs became more challenging (on the first screen) as you ran because they would come quicker, more often. The second screen would get very difficult very quickly as the dragon would increase in speed and fireball spitting. You could tell how hard the dragon would be as it would change colors from lighter to darker black as you progress stages.

When you finished collecting all the treasure an exit would pop up in the corner and you had to run to it without being burned by the fireballs, that dragon would turn from left to right nearly instantly too! Then, you’d jump into the exit and be back on the bridge again, but this time it was harder. You could die up to 7 times before the game was over (just to show you how hard it is, they gave you a bunch of lives).

The game was tough, frustrating, hard to replay because you were just so nervous and jittery from the last attempt. Graphics were “okay,” nothing to rave at but it was, after all, the 2600.

You can hear all we had to say about DragonFire for the Atari 2600 on Episode 79 of the TD Gaming Podcast!