This week probably has the most shocking and industry moving news of the week, as Sony, Microsoft and Nintendo start to play nice — and their players get to play together.
This week’s news includes:
Let us know what you think.
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.
The gang discusses the PC Gaming Show coming June 9, Tesla ending Steam support in its vehicles, Ghost of Tsushima being PlayStation’s biggest single-player PC launch to date (second only to Helldivers 2), Hellblade 2 developer Ninja Theory’s next game reportedly already greenlit by Xbox (and “no plans whatsoever” to close studio), Grand Theft Auto 6 publisher “highly confident” of an Autumn 2025 release window and the Resident Evil 1 Remake is in production and will release in 2026 according to a leaker.
The news includes:
Let us know what you think.
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.
