Toy’s R Us Find’s Wii Profitable

The success of the Nintendo console, the Wii, has proven to change the industry in many new and creative ways including reinvigorating slow product sales at Toys R Us. “The company went from a loss of $42 million at the same time last year to a profit of $13 million for the three months ended August 2nd,” says Gamasutra who spoke with CEO Gerald Storch.

Revenue was up 6.3%, in part, thanks to the Nintendo and its hot moving Wii and Wii Fit products. While Nintendo struggles to supply enough units for the strong demand, Toys R Us has no problem emptying their stores of any hardware they receive.

Months after the Wii launch we witnessed parents waiting in lines before the store opens just to see if they had Wii’s arrive for the opening. Although we’re sure it was a hassle to answer the phones with the typical response, “no, we’ve got no Wii’s in stock,” the long term plan has proven successful.

Have you finally managed to get yourself a Wii? Did you pick it up at Toys R Us?

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Episode 453: Videogame Piss-TakeEpisode 453: Videogame Piss-Take

Unfortunately, there’s no Donald Trump in this podcast – you’ll have to wait for an outtakes episode to listen to THAT discussion. However, there’s plenty of news culled from the past two weeks to enjoy.

The news includes:

  • Rumor: Beyond Good & Evil 2 Switch exclusive for first 12 months
  • ‘Game Mode’ for Windows 10 will power Xbox One and Project Scorpio games too
  • Square Enix strongly hints at Dragon Quest XI heading west
  • Xbox boss says Microsoft will still “take risks” after Scalebound cancellation

Let us know what you think.

We Need Another Ikari WarriorsWe Need Another Ikari Warriors

In 1986 SNK released Ikari Warriors, it had all the makings of a classic title. Cool weapons, time strategies, two player action and a great challenge. We’re now seeing folks reproduce some of the essence of classic games by creating platformers like Little Big Planet and Mega Man 9, where is the love for the top-down scrollers?

Ikari Wariors was one of the first game titles to use a rotary joystick along with a directional system. Looking at the current generation Xbox 360 and PlayStation 3 it’s plain to see the joystick is equipped with this design. We’ve seen Geometry Wars utilize the analog stick to create a 360 directional attack, so it’s possible to utilize this behavior for Ikari Warriors.

Given SNK is still alive under the name SNK Playmore the intellectual property must still exist to breath fresh life into an Ikari Warrior remake, with about six to eight months development time a classy title could be re-developed using old concepts brought to the current generation hardware.

Blast grenades, RPG’s, smart bombs, air strikes the options are limitless and the concept has been proven to work. Given the gamer demographic of 18-34 it’s plain to see old gamers of the Arcade and NES would recall and rebuild their love for the title while attracting younger audiences whom have never seen an Ikari Warriors title; if it worked in 1986 are we so adverse to it working again?

Games do not have to implement full 3D perspective graphics to be cool, we’ve seen proof in that with the Wii and the demand for titles like Little Big Planet. We neeed another Ikari Warriors.

Sony, Next Big Software Company?Sony, Next Big Software Company?

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.

floppyThis 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?