Microsoft’s High Hopes Holiday Lineup

This year Microsoft believes they’ve got a heavy hitter lineup of titles starting around now until the end of the year including: Gears of War 2, Fable 2, Guitar Hero: World Tour, Rock Band 2 and Fallout 3. They’re also looking at Lips, their karaoke title with a casual appeal to bring on the sales figures this season.

What about the PlayStation 3? Some of these titles, such as Guitar Hero: World Tour and Rock Band 2 are not exclusives so both consoles have their chance, right? Microsoft’s looking at historical data on trends from Madden 2009 and see the 360 console out-selling the game even though it’s a shared franchise title.

Strong sales on the Xbox 360 suggest we’ll see those same sales this holiday season. Sure, the PlayStation 3 will get some big numbers thrown up but they may not compete on the same level as the Xbox 360.

All-in-all, Microsoft wants to toss up the one-million game units sold for the holidays, not including consoles we believe. That’s a strong holiday sales cycle if they can pull it off.

Even with economic downturns and financial markets doing poorly, entertainment tends to be something people are willing to invest. Will they pull it off? Will PlayStation 3 keep up?

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MGS4 Pushes PS3 Up 300%MGS4 Pushes PS3 Up 300%

Metal Gear Solid 4 was a solid release for the PlayStation 3, the exclusive title that gives Sony an edge over the competition. This was Sony’s Halo 3 title and it needed to be a big success in order to keep gamers confident in the Sony brand.

Sony is reporting a 300% increase in PlayStation 3 sales over last month, mainly due to the desire for people to own Metal Gear Solid 4. Remember, this isn’t an increase in game sales, this is an increase in console unit sales, providing evidence that MGS4 sold consoles.

While Grand Theft Auto 4 seemed to sell a few consoles but, overall, didn’t impact console statistics during its release, this exclusive PS3 title has done just the opposite. Perhaps because of its exclusivity? Xbox 360 consoles have been in the hands of the consumer for a few years now, most of those consumers actually purchased GTA IV (as expected and reflected in sales) but not a lot went out to purchase the console. They already had it or didn’t care to own it for a game like GTA IV.

While many people purchased Metal Gear Solid 4 because it’s “Metal Gear,” you can see from the trailers that the game looked impressive, felt complete and contained a lot of great action. You’ll get a great sales pop the first few days on a title with a huge fan base but to sustain the growth and sell consoles you’ve got to provide a well known title that doesn’t suck.

MGS4 doesn’t suck by any reviewers score; it’s not perfect, but what game is? MGS4 delivered what it was said to deliver with very few bad experiences and that’s all you can ask for a console moving title.

So, what next? Sony has promised us that MGS4 is just the first of many titles to blow our minds. Resistance 2, Little Big Planet and what of that MAG game they showed off at E3? 256 players? We won’t hold our breath for that title, but Resistance 2 and Little Big Planet, combined, may move a few more units.

It may not be about the games today that move the next round of PlayStation 3 consoles, it’s about the promise of the games tomorrow with titles like MGS4 to hold us over until then.

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Episode 252: DuckTalesEpisode 252: DuckTales

This week, Paul can’t make it, so we bring on a Paul substitute, Dan Quick of the PolyCast podcast – and the show doesn’t skip a beat thanks to Dan behaving like Paul without realizing it. This week’s Gaming Flashback explodes like a blood sausage with Wasteland.

This week’s news items include:

  • Dashboard update gives Indie Marketplace more visibility
  • Call of Duty: Black Ops 2 outed by Amazon France
  • Skyrim DLC won’t follow same model as Fallout DLC
  • Electronic Arts terminates “free Battlefield 3 for preordering Mass Effect 3” deal early
  • Alan Wake on PC because Remedy “a nagging little kid” to Microsoft

In addition, we have Reader Feedback for Paul’s Pixie Diamonds contest – the winners will be determined next week. The contest’s Question of the Week remains the same: “Who is your favorite Disney Prince or Hero, and why?”

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?