Video Games Are Entertaining, E3, Not So Much

Most folks in the game industry are already writing off E3 as an actual event to be attending. Even Wedbush Morgan analyst Michael Pachter is calling it “virtually useless” for both retail and investors. The writing is on the wall and the reasons are obvious.

Publishers and developers didn’t want to invest the millions of dollars to make E3 a glamour show of epic proportions anymore. The lights, camera and action are all what the industry is about; the hype wagon in full steam. Gamers eat up the hype, bloggers and journalist rely on the hype and action to build readership and keep them coming back for more and retail uses it to gauge new releases and get a grip of the future.

Without the entertainment value of E3 nobody seems to care anymore. Large scale gaming entertainment is reflected in the large scale events and, at the end of the day, we want our conferences and shows to reflect the emotion and exciting of the industry.

“E3 had much more of an impact when it was a show,” comments IGN.com vice president of games content Tal Blevins. “The video game industry is about fun and entertainment, and we should have a show that reflects it.” (gamasutra)

Everyone is sad to see the state of E3, it’s like a cancer patient waiting for their final diagnosis. It’s unfortunate, it’s going to get worse and life will go on without it. In its wake, new shows will crop up while old shows increase in audience, excitement, intensity and cost.

As one show begins to fade others will grow to replace it and developers will yet again find themselves spending millions of dollars to be the best of show.

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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.”

Buster Douglas Takes Down Mike TysonWhat 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:

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  • 53% rise in software sales on PS3
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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)

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What a dilemma it is, Sony’s PlayStation 3 isn’t as hot as the Nintendo Wii in Japan. Even the Xbox 360 has had some minor success stories in Japan while Sony sits back saying “wtf?”

President, SCE Worldwide Studios, Shuhei Yoshida is pointing the finger at the publishers saying, “What’s happening is that lack of support from the Japanese publishers – not necessarily from intentions but from development capabilities.” (kotaku) Why, though, would publishers push to produce games on the console that’s currently losing market share?

Sony’s position is very tough to deal with because they’re not market leader so publishers are looking for the biggest bang for their proverbial “buck” and that’s not the PS3 right now. You can produce an expensive game for an expensive console or a cheaper game for a cheaper console and make more money.

How, then, can Sony get out of this situation? They must find a way to promote an incentive for publishers to create Sony exclusives or, at least, a Sony “port” of a game to build up their library of must-have titles. Perhaps Sony’s punishment at the hands of Nintendo and Microsoft in the States has a bit to do with their global marketplace issues — they need to put a concerted effort into one of their regions and champion themselves in one realm before trying for all of them. Right now, they’re a watered down expensive console with very few exclusive titles.

Metal Gear Sold 4, Home and Little Big Planet are great reasons to own a PlayStation 3 if the price was a bit more reasonable. Looking at the future, we’ve got Resistance 2 and a few other titles that may make some waves in the industry, at least in the United States, but it’s going to be an uphill battle in which they are the second best this time.

It’s always easy when you’re on the top. PlayStation 3 is not on the top so it’s time to start struggling, cutting prices or enticing publishers to build good exclusive titles.