This week comments on the crapshow that is going on with most of the third party publishers. That, and some updates to games that people really care about.
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.
If you’ve got an Xbox 360 arcade edition or an older console without a hard disk, you’ll want to clear up at least 128MB of your flash card before powering on your console after the fall update hits. Wait, you’re flash disk isn’t 128MB in size? Oh oh.
Latest reports are stating that consumers that own a 360 without a hard disk, albeit a small group, will not be able to simply install the fall update as the rest of us because they don’t have enough disk capacity. What is Microsoft doing about that? Microsoft’s Larry Hryb says saying they will be “offering storage solutions” for such customers.
We’re wondering, are they going to actually ship people free hard disks? Perhaps a coupon for a larger flash card? Interesting indeed!
“The new Xbox experience will require 128MB of free space. A hard drive is recommended for the optimal experience, to take advantage of some new features, and to be able to enjoy the great movies, TV shows and games available on Xbox LIVE. While we expect the majority of consumers to download the New Xbox Experience without a problem, a small percentage of Xbox 360 owners do not have enough memory to accommodate the update. To help ensure all Xbox LIVE members are able to download the New Xbox Experience and enjoy its new features, Microsoft will be offering storage solutions to the Xbox LIVE community. We are not sharing details of this offering yet. Be sure to check xbox.com for more details in the coming weeks.” (1up)
It was really only a matter of time before the Xbox 360 out grew the fact that they allow consumers to roll with a diskless console. No other console limits you by having both a disk and diskless option; we know why they did it, but now it would seem their having some growing pains.
No doubt, the next Xbox 360 console will come complete with hard disk! Hopefully you were wise and got the bigger console complete with disk.
The long awaited Wrath of the Lich King is here! By long awaited, really, I mean, I waited a long time to get patch after patch of the next expansion to Blizzards best of MMORPG. Although I don’t know the architecture to creating the patches, it seems so dated in methodology. Why must I download 5GB of patches when one can just supply me with an option to pull everything.
The initial download was roughly 1.8GB for what I assume would be “the DVD” you’d be buying in the store. Once I install that baseline it requires another roughly 1.2GB “update” before you can launch the application. Once you launch the WoW executable it must download another 500MB or so of patch data followed by another 100MB of patch data followed by another 500MB of patch data. Then, and only then, can you login and start playing!
My first option was to use the character I transferred over from Scarlet Crusade and jump into the world. Wishfully thinking, I also migrated over my addons to see what would work. After receiving more errors than I can explain I logged out and disabled all the addons. We’ll wait on those.
Within seconds I noticed the date in the top corner, it seems WoW has evolved over the years from a black vortex of time suckage to something a bit more user friendly. An older patch included a clock on the map so you know how many hours you’ve got before the sunrises, allowing you to sneak in a few hours of sleep before work. Now, they’ve included a calendar so you will know just how many days you’ve been up without food or drink. I kid.
