Valve continues to have problems in the wake of Epic (and now Discord) giving developers more of the earnings pie, as the year draws to a close. Meanwhile, T.J. explains his gamertag.
This week’s episode includes the following news items:
Let us know what your favorite game of 2018 was.
UK developer David Braben from Frontier Developments believes smaller development studios are in the worse position when it comes to re-sale of “pre-owned” video games. Since a developer only gets their cut of the profits when a game is sold new, pre-owned titles allow gamers to play games without paying the developer for the effort.
This also hurts larger publishers, but they’re able to recover because of the sheer volume of games and game titles. One idea David had, was to code each game with a unique license key like a PC game that gamers must enter before playing. This would kill the ability to re-sell video games back to the market for others to buy at a cheaper price (translation: better value).
The future shows a higher degree of downloadable games, which cannot be re-used or sold back to the market, but for now, developers have to deal with pre-owned video games cutting into their profit. Presumably you could have a great game with smaller sales and a high degree of resale in the pre-owned market.
Problem with this take on development? Besides large scale video game sellers like GameStop making 80% profit margins on resold games (rather than a 10-15% on new), gamers want a way to make back some of their money on expensive titles. When you’re paying $60 for a game and you beat it in a week or two, you want to resell it so you can invest in a future title.
My theory… make games more affordable so we don’t feel gouged on the price. We may decide to hold on to it longer and tell our friends about it. A good game reference and a reasonable price will increase sales every time. Don’t try to solve pre-owned problems when the problem is the publisher and the industry making huge game prices.
(Thanks, Kotaku)
At E3 Reggie Fils-Aime let the world know he wasn’t satisfied with the sales progress of the Wii or DS in 2007 and hopes Nintendo can do better this year. Perhaps Nintendo is playing the humble card? No doubt they bragged about their 10 million sales of the Wii and 20 million sales of the DS but quickly followed it by saying they’re not satisfied.
Or, is this a threat?
Nintendo has built some steep competition while both Sony and Microsoft scoff at their product and tell everyone its a novelty and it doesn’t really “count” in this next-generation console battle. It doesn’t count… really?
Perhaps Microsoft and Sony are right; maybe every Wii owner that wanted a PlayStation 3 and/or an Xbox 360 purchased their console too. There may be some truth to that as hardcore gamers may purchase a Wii for many reasons:
It seems they don’t feel a threat because Wii is a non-gamer console and thus attracts a different crowd… yet they’re both mimicking some of the motion sensing in their own controllers and playing nice towards “casual games” and non-gamers of late. Maybe their not threatened, but impressed?
Fils-Aime isn’t impressed with their sales figures, perhaps because he expected a higher degree of Wii sales by now, but the fact that people cannot purchase them two years into production has hurt sales figures. Although 10 million units sold is an impressive figure, knowing you had such higher potential if the product was actually on the shelves has to hurt a bit of your pride.
The DS sales were impressive considering the product has been in the market for awhile and is easier to find (minus the holiday rush). We’re not sure why he’s not satisfied with the figures, but inspiring a higher degree of DS sales will require some work. Perhaps this is why they’ve gone with the GTA Chinatown approach; using the GTA name to grow their DS sales figures?
It will be interesting to see how Wii does through the next few quarters and if sales slow down now that we’re a few years into the product. What was the last home console Nintendo owned to get this high of a demand?
Perhaps none.
This week we’re busting out the Gaming Podcast love with some gaming news, community comments and we’re flashing back to Tag Team M.U.S.C.L.E for the NES and looking through the history of Greg Costikyan. For those interested in Herr Alien’s link, here is the article about Modern Warfars woes. Also, the Will It Blend iPad video. This weeks gaming news:
Thanks for all the feedback and answers to the questions last week. This weeks, we’re asking a tough question… what game exists in the market today that rivals the overall play time seen by games like Minesweeper and Solitaire?
