Will Xbox Live Survive 2008 Holiday Stress?

This year many gamers will open new consoles for the holidays and many of those same gamers are going bring their console “live” on Xbox Live the same day. Traditionally we’ve found Xbox Live falls under the weight of the holiday rush much like Apple’s iTunes. Will we repeat history again?

Although a fully loaded Xbox Live service is money in the bank, how much money will Microsoft lose when gamers login for the first time to a service in a state of destruction? People say first impressions are extremely important, but Microsoft makes a poor first impression every holiday. Xbox Live’s Jerry Johnson told Eurogamer:

“I can tell you that when Robbie Bach is on the phone on Christmas Day calling people asking what the hell is going on, and that’s coming down from Steve Ballmer… that’s the kind of attention it got last holiday.

Many things have changed since then, and we realised [sic] the kind of growth trajectory we were on and had to prepare for it.” (Kotaku)

It’s obvious the top executives at Microsoft want to give customers a great first impression and, after a few repeated holiday down times, this year is the chance to change it all. By now, Microsoft should be fully aware of the holiday flash crowd and have a system ready to cover the load.

Plenty of gamers login because their console automatically signs in on startup, but a handful of those gameres will be shopping for Xbox Live Arcade games to see what Microsoft is now offering them and their new console. Many XBLA games the current 360 crowd is bored of will be fresh and new to holiday adopters so it’s very important to keep the system online.

Much like Amazon, sales will decrease when the service is busy or under heavy load. Hopefully Microsoft is ready to make a great first impression to new buyers and give them the option to buy high valued (high markup) electronic downloads.

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Rock Band 2, Song Tracks and InstrumentsRock Band 2, Song Tracks and Instruments

The latest news on the Rock Band 2 front covers the instruments and a few confirmed song tracks. There have been rumors flying around the Internet about the “leaked song tracks” for the next release with absolutely no confirmation. Now, however, we have solid proof on some tracks and some equipment changes.

First, all instruments are backwards compatible. That’s key to the success of Rock Band because fans of the original ponied up a lot of bones to grab themselves the original Rock Band kit. However, there is an incentive to upgrade your equipment in some regards.

If you like the original Rock Band guitar you’re going to love the new one if only for the color updates, wood grain and actual look and feel of a real guitar not a “toy.” As you’d expect (or hope) the new guitar will be wireless, finally, and will have a sturdy strum bar with even quieter buttons. Wireless alone is a great selling point but quiet buttons is important for folks like me who play the guitar like it was a jackhammer and can easily interrupt the drummers concentration during a difficult set.

The drum kit has been improved as well, with a re-enforced foot pedal to avoid the ease of breaking the plastic “toy” version of Rock Band original. As a person who’s busted up their drum petal and forked out cash on eBay for a wood solution, this is more great news. The drum kit will also be wireless which is great for those of you, like myself, who have kids that run through your line of site or dance while you’re playing. Nobody likes their Xbox 360 being flung off the shelve due to tripped cords.

The drum kit will have quieter pads and a velocity sensor; again, your old kit is still usable without these enhancements but the desire to upgrade if you’re a dedicated fan will be high.

The song tracks currently confirmed:

  • “Panic Attack” — Dream Theater
  • “Chop Suey” — System of a Down
  • “Everlong” — Foo Fighters
  • “Kids in America” — The Muffs
  • “Give it Away” — Red Hot Chili Peppers
  • “Ace of Spades” — Motörhead
  • “Hello There” — Cheap Trick
  • “Pump it Up” — Elvis Costello
  • “Anyway You Want It” — Journey
  • “Pinball Wizard” — The Who

This is a great indication to where Rock Band 2 is going, mixing up a great selection of artists with classic hits like Anyway You Want It and Pinball Wizard to newer late generation X music like Give it Away and Chop Suey. Talented artists like Dream Theater are sure to keep Rock Band 2 a challenge to all gamers.

Other great improvements being a World Tour mode now accessible online and the removal of the “Band Leader” concept which always locked you into an instrument once you created a band.

NOTE: Xbox 360 will have a timed exclusive on Rock Band 2, arriving later in the year for the Nintendo Wii and PlayStation 3.

Checkout the full feature set so far explained at Kotaku.

Wallets Shrink, Used Game Market GrowsWallets Shrink, Used Game Market Grows

Over the last year we’ve seen developers scrambling to find “value add” features to new game purchases. Their goal is to convince the customer to buy new instead of used because developers don’t see a penny from a used game sale. While GameStop sees 48% profit margins from the used game market developers struggle to stay floating in the industry.

for-saleThis is not the fault of GameStop and their 48% profit margins because they’re only getting 7% to 20% profit margins (say analysts) on new game sales. As someone that’s run a game store online, if you’re getting 15%+ on a new game you’ve got some great hookups in the distribution channel or are buying in huge quantities.

Buying games in huge quantities to build profit margins can be a huge mistake in this industry. Gamers are fickle little creatures and they’re going to buy their top tier games for a few weeks and then sales will drop significantly. No retail chain wants to purchase a thousand copies of GTA IV (only as an example) and sell seven hundred over the first few week to be stuck holding onto a few hundred copies when the dust settles. Now you’ll have to put them on sale to get them out of the store because the hardcore gamer have already done their shopping and you’re not going to get any price protection if you’re not a major player in the industry.

Why take 7% profit margins when you can get 48% on a used game? The gamers don’t seem to mind because they’ll trade in a used copy of a sports title like Madden to save $5.00 on the latest franchise release. Gamers will buy Fable 2, beat it in a week and rush to the store to get the “most for their dollar” before the game gets stale and buy-back prices drop like a stone. Why not rent Fable 2 and save yourself $50.00? Of course, renting pisses off developers as well because they see no additional revenue.

While the economy struggles and consumers fight for their jobs, the entertainment side of life continues to grow. People would rather “cocoon” in their homes playing video games and watching movies on their brand new HD television because it takes them away from the low points of the economy if only for a few hours. History has shown us trends in entertainment during the down points of economies, it’s natural to want to get away for a bit.

But, consumers want to play these games on the cheap because their job may not be there tomorrow. Saving $5.00 knowing the store just took the title in for half the price doesn’t bother you; $5.00 in your pocket is better than in their pocket right? The fact that they just pocketed upward of 40% on the game doesn’t matter to you — it’s all about your bottom line!

While we’re bargain hunting during the recession developers are going to try and up sell you to a new copy of the game. If that means giving you special game items and features with a “one time code” upon purchase, it will be up to you to decide if it’s valuable. All the while GameStop will lock out the game industry from selling used games because 42% of their overall gross profit is from used game sales.

You, the consumer, benefits from a slightly cheaper game, bargain bin fire sales and additional game features if you do choose to buy new. The economic down turn is a great time to be a gamer, as long as you remain employed.

2M Users Sign Up for COD: Elite Beta2M Users Sign Up for COD: Elite Beta

Activision’s Dan Amrich posted in his One of Swords blog that two million users have signed up Call of Duty: Elite‘s beta, who said the number “blew his mind” when “they hit that number in less than two weeks. That should give the dev team at Beachhead plenty to work with to kick off the beta, which officially starts July 14.”

“The official start of the beta is a month away, so there’s still plenty of time for you to sign up. When the studio head at Beachhead said this would be a live beta, he was not kidding — your participation really can make a difference in how Elite evolves,” added Amrich, “And don’t be discouraged by the big number, thinking you shouldn’t bother because they already have enough people — two million volunteers among 30 million Call of Duty players is a small amount. More would be even better. Once you’ve signed up, just watch your email inbox for an invite.”

The 2M beta applications aren’t necessarily an endorsement for Elite. Rather, users are probably curious to see the beta and if it pleases them. The paid subscription portion reportedly only represents 10% of Elite, anyway, and is aimed at more “professional” and “hardcore” gamers, aka clans.

Users can apply for the beta here.