This week’s episode is full of computer roleplaying game goodness, as well as some of the disbelief of a Nintendo-owned Harry Potter franchise. All that and Civilization VI and Turok excitement to boot.
The news includes:
Let us know what you think.
Gaming is mainstream and growing, this is obvious to most video game enthusiasts. Even Jack Thompson has failed in taking down the industry in his efforts on video game violence and general FUD. In order to survive in a mainstream environment publishers and developers are going to target a broad demographic to make them as much money as possible.
The game industry, like other entertainment avenues, is a risky business in which publishers have to pick titles they “predict” will do well in the market while passing on other “risky” propositions. While a the good ol’ shooter title will break sales records, the market cannot rely on one genre to carry the business especially considering many of these titles are forgotten within two months from launch. Publishers are going to be forced in expanding their reach to “family games” in order to finance new blockbuster titles.
Enter family gaming.
The idea of designing a “family” game isn’t new to our industry, as a matter of fact, it’s one of the oldest cornerstones of video game entertainment. Pong, Centipede, Pac-Man, Space Invaders and many other classic titles were no doubt playable by the entire family, but things have changed. We’ve evolved from hit titles like Donkey Kong to hit titles like Halo. We migrated from 2D gaming to full 3D adventures and pixel graphics to pixel shaders, but where do we go next?
Nintendo has the correct vision for the next stage of the video game industry and it involves bringing the entire family into gaming. It’s mainstream, right? Mainstream isn’t your dad playing a video game in the basement after the kids go to bed, it’s replacing Sorry with Spore and bringing out Wii Sports and having little family tournaments. We must respect what the big titles have done for the industry in merchandising, novels, sequels and spin-offs but we should not rely on them to carry us into the next generation of gaming.
This week, there’s only one news item, but that’s because Jonah Falcon returns from PAX East 2012 to discuss the games he managed to check out and even play, including Assassin’s Creed 3, XCOM: Enemy Unknown, Civilization V: Gods & Kings, Max Payne 3, Spec Ops: The Line, Steel Battalion: Heavy Armor, Borderlands 2, Penny Arcade Adventures Episode 3, Orcs Must Die! 2, Tera, Solitaire Blitz, Aliens: Colonial Marines, Mark of the Ninja and Code Hero.
The show does cover one news item:
Finally, a new contest: win a free copy of Civilization V Special Edition on Steam. To win it, just state what your favorite civilization in history is and why. All that and Reader Feedback and a special surprise at the end!
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.
This 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.
