Microsoft Says They’ll Win Console War

Apparently the war is in full force and Microsoft’s Don Mattrick is ready to poke the flag in the ground and call it a sure fire victory (in so many words). He said he’s “willing to declare here today that Xbox 360 will sell more consoles worldwide this generation than PS3” (eurogamer)

They’re either not seeing the Wii as a competitor or are trying to avoid that evil word considering the growth of the tiny little console in the market. After telling the audience the Xbox 360 has already outpaced the PlayStation 3 and Wii he failed to mention the one-year head start the 360 had over its competitors.

There are, of course, bonuses to talking figures when you were first out of the gate. The interesting facts, which won’t present themselves for years now, will be the end unit sales figures for Wii, 360 and PlayStation 3 when all boxes are end-of-life’d. We’re sure to hear each side declare victory when they’ve decided when the war actually ends. In Microsoft’s eyes, the console war will probably end when they release the next-generation box, barring the fact that they should wait at least one year before claiming the title.

You can’t argue with the facts, Xbox 360 is doing very well in the United States (if we ignore Japan). The Nintendo Wii has sold 8.8 million units to the Xbox 360‘s 10.3 million units. How many units did the Xbox 360 have sold around the same time Nintendo boasts 8.8 million? Probably a bit less.

Press can be a great thing when you have numbers to play with and figures to skew. Oddly enough, if some of us are any indication, we’ve purchased multiple Xbox 360’s because of dead systems. Sure, we’re stupid for actually doing it, but those figures will work into the total units sold for the Xbox 360 hardware sales. Imagine, their failing systems may have actually boosted sales figures a bit; probably not statistically significant but funny non-the-less.

We can’t wait to see what type of numbers Sony and Nintendo are going to fling out. If we ask each competitor, we’re sure they’ll say we’re going to win the console war. Nintendo may just ask, “what console war? We just make game hardware” and you can’t fault them there!

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Xbox 360 Price Cut Leads To 100-Percent Sales IncreaseXbox 360 Price Cut Leads To 100-Percent Sales Increase

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Gamers show how they feel about costly consoles with their wallet. With 100% increases in sales, it’s clear that many gamers have been holding out from the “next-generation” of consoles because the price was too high. Now, Microsoft can report huge sales numbers this quarter with a special thanks to their price cut. Imagine the sales boost the PlayStation 3 would have if it was competitive in price?

Microsoft could have kept the savings of manufacturing costs to themselves but they chose to pass savings onto the consumers. The increase in unit sales means more households own the product and newly released games will probably see larger spikes now that people have invested in the 360 console.

End result, developers will want to produce games for the Xbox 360 because they’ve got a larger audience and publishers will be less likely to pick Sony as an exclusive because the 360‘s got sway in the market. It might not be a Wii in total sales records but it’s not half bad!

(Thanks, gamasutra)

Studios Closing: The Good, Bad and UglyStudios Closing: The Good, Bad and Ugly

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?

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Halloween is a scary time of year, no less when you’re posting a $310 million net loss. EA CEO John Riccitiello sees “weakness” at retail in October and we’re betting this isn’t the end of the road of sorrow for game publishers around the globe.

Electronic Arts isn’t unfamiliar with bad times and we’re sure to see them make constant adjustments to their headcount, game releases and press as the economy goes into a bit of a slump. Although the game industry won’t see as big a hit as the financial market, everyone is going to watch their spending during slower economic times.

That slowness is a red flag for the mega-publisher, which says it’s “proactively making cost adjustments now.” One of those adjustments is the axing of some 600 EA employees across the globe. (Kotaku)

Last year Electronic Arts lost a “small” $195 million during the same time, not exactly a gold star on the financial records but it sure looks better than this loss. A few games may crumble under the economic pressures, Tiberium for example, but let us not forget the good times! EA posted some nice figures for Spore, Madden NFL 09, Warhammer: Age of Reckoning and Mercenaries 2: World in Flames.

So, they mixed a few sequels with a few new franchise hits and gave gamers some pretty hot titles for the year. Of course, hot titles in our hand do not always translate to positive revenue in theirs.