Battle of the Mega Powers: EA Wants Take-Two

We’re already looking at the results of an Activision Vivendi union and now Electronic Arts is slowly working towards taking over Take-Two. Activision Blizzard is larger than that of EA but would the Take-Two buy-out grow EA into the number one publisher once again?

For gamers, it’s changing the map of the industry. We grew up with many of these seemingly big companies but their all clamoring together to make the next big mega-power. While they struggle for ultimate domination we, the gamers, are going to either benefit from the competition or become victims, or perhaps a little of both.

Let’s assume EA and Take-Two form one entity, similar to the the Destructicons forming “Devastator,” they can reign hell upon the earth and anyone under their mighty fist shall perish! That might be a bit of an exaggeration but it’s safe to assume they’ll wield mighty power, more than ever before and their epic foe will be Activision Blizzard and, perhaps, Ubisoft. In a battle for sales and consumer acceptance the companies will be willing to out do each other at every step with huge funds at their disposal.

As a consumer, competition is a great way to produce innovation, technological advancements and excitement in the industry. These giant development houses are only this large because we’ve given them our hard earned money in return for entertaining video game titles. World of Warcraft is a major player in sucking money from our wallets in a consistent, addictive, manner while Guitar Hero explores new possibilities in music and rhythm gaming and controller accessories.

Electronic Arts and Take-Two would have to combine and push ground breaking changes in all their game franchises to compete. Grand Theft Auto must top their already huge, or, perhaps, release smaller games on the DS. Their sports franchises will go unhindered into the night as the best and only solution to your football desires. John Riccitiello, EA’s CEO, has already acknowledge the lack of excitement and creativity from the EA game library and plans to change it by expanding new intellectual properties and, recently, added a few “small” purchases to their list including BioWare and Pandemic.

While Activision has found a fairly new niche with Guitar Hero we’re waiting to see if EA can respond with their casual games division or with some other secret projects to entangle both gamers and non-gamers. In many ways, this is a bright side to the mergers and acquisitions because we’re all getting something new and creative as talent and ownership changes hands.

Unfortunately, large companies like this can help destroy any chance of small uprisings of new studios by purchasing all the shelve space in retail outlets as part of their ongoing power struggle to be number one. They’ll be able to relax on franchises that have been flat-lining over the years, we may see no progress in the Madden series when Take-Two cannot compete at all in the space while under the wing of EA.

Indy developers will find it harder to compete with block buster titles because game engines are all being taken “in house” by the larger firms because they’ve got so many internal development studios they will need consistent proprietary game engines to hold their edge against their mega competitors. This leaves the indy companies with huge licensing expenses from a larger firm or going with a lighter less stable alternative. A few rise to the occassion like GarageGames to relieve some of the pressure, but how long before they’re bought up?

Perhaps smaller studios with great tools will rise to meet the demands of the Indy developers but they may fall under the mighty dollar if an EA or Activision Blizzard buys them out to “steal” the technology for themselves (or stop others from gaining unwanted advantages.) These large companies will fight tooth and nail so they can gloat positive trends to their share holders and make deals with the devil to push stock value through the roof.

These large studios will be looking to improve year-over-year profits and value to keep growing in the industry. It will not be about the game anymore, but about the dollar. Of course, the managment structures behind the companies will have to hold up and work well together to avoid becoming the next Sierra.

You can only be a mega power for so long before something changes your future. Randy Savage never saw it coming when Hulk Hogan ruined their alliance with three massive leg drops.

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Episode 239: This Episode is DRM-freeEpisode 239: This Episode is DRM-free

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?”

Microsoft Says Blu-ray Holds No 360 ValueMicrosoft Says Blu-ray Holds No 360 Value

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.

Episode 309: Best Episode Ever?Episode 309: Best Episode Ever?

[This episode is unedited, so be prepared for some naughty language.]

This week has some stunning news items, causing an overstuffed, long episode, so big even Jordan’s wife chimes in, and Jonah and Paul argue hotly over the last item. The Gaming Flashback for this episode is Super Star Wars.

This week’s huge news:

  • EA gets exclusive license to publish Star Wars games, powered by Frostbite 3 engine
  • Uplay causing problems with Steam version of Heroes VI expansion Shades of Darkness
  • The Sims 4 officially announced by Electronic Arts
  • Michael Biehn hints at Far Cry 3 Blood Dragon sequel
  • Doritos Crash Course 2 coming May 9, still free
  • Spiritual successor to Eternal Darkness hitting crowdfunding on May 6
  • Gearbox dismisses Aliens: Colonial Marines lawsuit as “beyond meritless”

Also some listener feedback, plus this week’s Question: “What was your Golden Era of videogaming?”