Episode 404: Rebel Scum

This week’s episode is a little late thanks to unforeseen circumstances, but nothing will stop us from posting new episodes. It’s actually one day late, since last week was a week off, thanks to Podbean limits and Halloween. On that note, this week, Jonah had to erase a spoiler segment about The Force Awakens, but enough remains of the convo discussing other parts of the upcoming movie.

This week’s news:

  • Sony not to offer backwards compatibility
  • Advertising Standards Authority rules Valve misled customers with Grand Theft Auto V Steam Sale
  • The Witcher movie slated for 2017
  • Ubisoft admits poor Syndicate sales are due to franchise fatigue caused by Unity
  • World of Warcraft paid subscribers at a nine year low at 5.5M

The Question of the Week is what we usually ask ourselves, but with all the new games coming out, “What have you been playing this week?”

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Xbox 360, PS3 and Wii: Who’s Winning And HowXbox 360, PS3 and Wii: Who’s Winning And How

People see facts and figures constantly and brush them off as, well, facts and figures. But, when people see charts and graphs they “oooh” and “aaaah” over them because the visualization is easy to understand. Now, thanks to the NPD Group and Deutsche Bank, people are seeing some pretty graphs about the console battle. These show just how well the race is going on all fronts of the war.

Hardware Sales chart, via gamedaily.com

Although the data is fairly small the colors show it all, the Wii crossed over the Xbox 360 numbers in unit sales and hasn’t stopped since the launch. Here we are, on the third holiday season since the Wii launch, and people still cannot find them in stores. Shortage? Doubtful. Considering the massive sales numbers and the fact that they did take the 360 in numbers it seems the supply just can’t meet the over-the-top demands, but why is the demand so high for the little Nintendo bundle of joy? People just can’t get enough Wii.

The Xbox 360 has much to brag about as well, they’re not first in the race but their nearest next-generation graphic console, the PlayStation 3, isn’t even close. The chart shows them both rising in much the same way, with the same “pops” along the sales chart but in a completely different scale. Since Microsoft doesn’t want to consider Wii a competitor, they’re clearly winning the war in their eyes.

Oddly enough, one of the big pops in Xbox 360 sales where around the PS3 launch. Perhaps these consumers were waiting for both consoles to launch before making a decision? More than likely, it was holiday related and had little to do with the PS3 launch but it is fun to ponder anyway.

What about software sales? We’ve heard the Wii has little to offer in terms of games while the 360 wipes the floor with the competition.

Software sales charts, via GameDaily.com

To our surprise, the Wii is rocking the sales figures in terms of software but still doesn’t compare to the Xbox 360. Microsoft pulls out 93-million units while Nintendo takes home a modest 73-million units in software… yet again Sony doesn’t show up to the fight. Looking at November 2007, you can see the Wii jumps significantly in unit sales, no doubt related to the Super Mario Galaxy launch — once they hit that figure they never looked back and continued to climb.

Although a few of us expected Sony’s PlayStation 3 to make huge progress this year, each month they have marginal growth is causing their competitors to excel beyond anyones imagination. We’re starting to wonder how well Sony’s “10 year plan” is going to work out with their competitors taking advantage of the market now when, in 10-years, they will be sitting on their pile of cash to re-invest in the 8th generation of consoles.

(Thanks, GameDaily)

Studios Closing: The Good, Bad and UglyStudios Closing: The Good, Bad and Ugly

Gamers around the world are going to feel the pain in the 2009 holiday season after the economy shakes apart many great development studios. Electronic Arts feels the pain of being a public company as their investors complain about lackluster revenue, THQ deals with closing studios to extend their runway and other firms will lose more headcount in the coming months.

It’s not all bad. But, it’s going to get ugly before it gets better.

The financial market has played tricks on everyone in our global economy and companies across all industries are going to feel a bit of a tightening around the belt. Investors are shaken and doing their best to protect their investments and cutting loose those that aren’t projecting profits in the near future. Game studios are going to slow their financial burn rates, trim a bit of the fat and hunker down the long term. The end result, next years holiday season will have a few less games because those games are being dropped to the floor now.

Mid-sized studios within larger firms may find their projects canceled or put on hold and their employees re-structured or let go while big studios assess what projects will make the long haul. This is the ugly side of the business, having to make a decision on what games stay and what games go with the grief of having to tell some of your best talent “goodbye.”

The bad part of the industry is occurring today, with publishers posting mediocre profits and trying to convince their investors to be patient and trust they’ve got a firm hold on their destiny. The game industry is not alone in this, many firms are reducing head count and many startups are finding themselves without series A or B funding; they’re closing their doors because the money is being directed to more stable ventures.

What’s the good in all of this?

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