Episode 518: Mattel Vs Atari Again

It’s seems like old times as there’s a new IntelliVision console coming out to compete with the Atari VCS. The funny part, of course, is that the new IntelliVision will feature Atari 2600 games on it published by Atari. I guess we’re all friends now. This week’s Gaming Flashback is Dead Space.

As for the news:

  • Intellivision Amico console coming in 2020
  • Jade Raymond leaves Electronic Arts
  • Splash Damage ends development of its team-based shooter Dirty Bomb
  • Fortnite‘s Save the World Mode won’t be going free-to-play in 2018

The Question of the Week is: “Which cancelled game would you wish have been completed: Starcraft Ghost, Fallout 3 (Van Buren), Warcraft Adventures, Scalebound, Fez 2, Prey 2, The Flash: The Fastest Man Alive, Full Throttle 2, or something else?”

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Episode 319: Someone Is Butt-Hurt About MicrosoftEpisode 319: Someone Is Butt-Hurt About Microsoft

There’s no Gaming Flashback or Gaming History, but there is a crapton of news this week on TD Gaming Podcast, which Jonah Falcon and Jordan Lund eagerly read.

That, and Jordan really wants to know what you have been playing.

The news this week includes:

  • Microsoft officially announces indie self-publishing, to be unveiled at GamesCom 2013
  • Phil Fish explodes on Twitter, cancels Fez II in a huff
  • Shadow of the Eternals back on Kickstarter, no longer episodic
  • Neil Gaiman has announced his first videogame, Wayward Manor
  • Lanning: Nintendo will be around for “100 years,” but probably not Zynga or Microsoft
  • Activision-Blizzard buys out $8.2B of its own stock from Vivendi
  • Paid subscribership of World of Warcraft down to 7.7M

All this and Listener feedback.

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.

Episode 423: Nintendo NXEpisode 423: Nintendo NX

This week revolves around Nintendo’s upcoming console. Otherwise, there isn’t much to speak of in terms of shocking news. However, there is a lot of it this time around.

The news items include:

  • Stardew Valley multiplayer, console ports confirmed
  • Nintendo NX launching March 2017, new mobile games on way
  • Oculus Rift arrives at Best Buy stores ahead of pre-orders
  • Nintendo won’t sell NX at a loss
  • Classic Sega Mega Drive ROM hacks hit Steam workshop

Question of the Week: “Ever play any console ROM hacks?”