PSN Outage Causes 200% Rise in PS3 Trade-Ins

The patience of PlayStation 3 owners is wearing thin as retailers are reporting a 200% increase in PlayStation 3 trade-ins, usually for Xbox 360 consoles, as well as sales slumps for PSN points cards and fewer multiplatform game sales for PS3.

“In the first week of downtime we did not really see any major change in sales or trades,” says one source, a store manager at a major UK retailer speaking on condition of anonymity. “However from the second week onwards we have seen an increase of over 200 per cent on PS3 consoles being traded in, split almost 50/50 between those trading for cash and those taking a 360 instead.”

Another UK source has reported that the independent retailer had seen a “massive increase” in the volume of PS3s traded in in recent weeks, and has pegged the biggest trade-in demographic as “the hardcore online shooter crowd”, who are logically the group most likely to defect when their online gaming is wiped.

Belgian-based Gameswap spokesman Tom Mestdagh went on record to state, “At the end of each month people come to sell their consoles. People that need money (to pay bills). What’s different this time around is that that they are bringing in PS3s together with all their games and they don’t want money, they want an Xbox 360. In every case it is because of Black Ops and or Modern Warfare 2.

“We’re just ten days into the month and already we have an increase of 200 per cent in PS3s coming into the store compared to all of March. Normally we sell them really fast, but not this time. We’ve only sold 30 to 40 per cent of our inventory right now.”

Game purchases have also been markedly affected by the PSN outage. Sales of Call of Duty: Black Ops went from 44% for the PS3 in the first two weeks of the game’s release to 24% of sales of Black Ops last week. Similar trends have struck games like FIFA 12.

Another retailer told Edge:

“A lot of people have been phoning asking us about personal details on PSN as they are struggling to get a response from Sony themselves. Overall, people that have traded with us seem annoyed at how Sony has handled all of this, and say they would not trust them with details again in the future.”

However, it’s all about online gaming. “All we’ve seen is an incredible amount of disgruntled people annoyed that they can’t play online,” stated Mestdagh, and gamers have actually “stopped complaining about the fact that Microsoft charges for Xbox Live. It used to be a big problem for most of our PS3 customers.”

You get what you pay for.

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Ensemble Studios Had A MissionEnsemble Studios Had A Mission

In 1995 Ensemble Studios formed as an independent studio and kicked out a little game franchise known as Age of Empires. The title has received many accolades from the first in the franchise extended out to all the Age of Empires releases and spin-offs, all-in-all selling millions of copies.

Ensemble Studios had a mission “to create great games and a great place to work,” says Bruce Shelley from Ensemble Studios. Bruce Shelley also helped design Sid Meier’s Civilization and Railroad Tycoon with MicroProse prior to his work at Ensemble Studios. Now, however, he’s a bit upset at the closing of Ensemble Studios because they were profitable, created top-quality titles and had a great working environment.

Ensemble Studios, from his perspective at least, was a place you’d go to work and be happy with what you’re doing. When you’re working along nicely and become blind-sided by the news, it’s not surprising he didn’t take it lightly.

“Everyone at our studio was shocked, and I think remains very disappointed that this is going to happen. I believe we thought we were immune to shut-down talk because our published games have done so well and have been so profitable. Plus we felt we had built a really stable (low-turnover), talented, hard-working, and creative team, which is not easy to do. We thought we were among the best studios in the world, and that may be true, but we don’t fit in the future plans of MGS as an internal studio so we’re out.” (ensemblestudios.com)

What’s the future plans for Ensemble Studios? As we’ve stated before, they plan to live on in spirit, within the bounds of a new name and a new game plan. “I believe the spirit and mission of ES will be carried forward in this new company if enough of the key leaders agree to take part, which I expect to happen. There has been no announcement about what the new studio will be working on when it gets going,” says Shelley.

This is a horrible way to have to launch a hot new intellectual property. Usually creating a new title with a building fanbase would lead to excitement, parties and high hopes for the future of the franchise. Instead, people will be dusting off their resume in hopes to continue a life of game development.

Hopefully the leaders will indeed form a brand new company and build brand new hot products with their entire staff intact. Then, take their titles to a different publisher (besides Microsoft) and make some money and fans.

Electronic Arts Issues 1,000 Pink SlipsElectronic Arts Issues 1,000 Pink Slips

Electronic Arts is planning to lay off 1,000 employees, approximately 10% of their employees. In this layoff their also consolidating EA Black Box back into EA Canada. EA Black Box was spun off as a studio outside of EA Canada to work on such titles as Need for Speed but, with the layoffs arriving, they’re going to be merging the remainder of EA Black Box into EA Canada by June 2009. The remaining EA Black Box employees will continue working on Skate 2.

The pink slips should be issued by March 31, 2009 and we’re hoping the folks that have lost their jobs will find new jobs as soon as possible. An Electronic Arts representative said:

“This does not mean that the Black Box studio is closing. The studio is moving to our Burnaby campus to share the facility with EAC and other EA teams that operate out of our state-of-the-art facility. We will operate two distinct studios, each with their own distinct culture and teams, out of our Burnaby facility.” (gamespot)

EA hasn’t mentioned any specific franchise cancellation but we’re going to assume something is going to slip, it’s hard to imagine a company can lose 1,000 employees without impacting business operations. If EA was able to layoff 1,000 people without impacting day-to-day business, then they’re definitely hurting in the management department because that would be a ton of waste.

Big companies may cut costs during hard times but they said they’re, “implementing a plan to narrow its product portfolio to focus on hit games with higher margin opportunities. The company remains committed to taking creative risks, investing in new games, leading the industry in the growing mobile and online businesses, and delivering high-quality games to consumers.”

We’re curious just how much EA is willing to risk on “creative” endevours considering publishers are already hesitant to break new ground. The next few years should yield great opportunities for smaller developers to put on their creative hat and open new doors and opportunities for themselves.

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