This week the guys discuss the mistake that was World of Warcraft: Cataclysm in the Gaming Flashback. They also discuss all the mergers and merger rumors in the videogame industry in the past few days.
The news includes:
All this and responses to the Listener Feedback about Starfield.
Gamers around the world are going to feel the pain in the 2009 holiday season after the economy shakes apart many great development studios. Electronic Arts feels the pain of being a public company as their investors complain about lackluster revenue, THQ deals with closing studios to extend their runway and other firms will lose more headcount in the coming months.
It’s not all bad. But, it’s going to get ugly before it gets better.
The financial market has played tricks on everyone in our global economy and companies across all industries are going to feel a bit of a tightening around the belt. Investors are shaken and doing their best to protect their investments and cutting loose those that aren’t projecting profits in the near future. Game studios are going to slow their financial burn rates, trim a bit of the fat and hunker down the long term. The end result, next years holiday season will have a few less games because those games are being dropped to the floor now.
Mid-sized studios within larger firms may find their projects canceled or put on hold and their employees re-structured or let go while big studios assess what projects will make the long haul. This is the ugly side of the business, having to make a decision on what games stay and what games go with the grief of having to tell some of your best talent “goodbye.”
The bad part of the industry is occurring today, with publishers posting mediocre profits and trying to convince their investors to be patient and trust they’ve got a firm hold on their destiny. The game industry is not alone in this, many firms are reducing head count and many startups are finding themselves without series A or B funding; they’re closing their doors because the money is being directed to more stable ventures.
What’s the good in all of this?
Microsoft recently announced their price cuts on the Xbox 360, effective today, but what is motivating them? Microsoft’s not going to make much additional money by passing off the savings to the customer but they will, more than likely, sell a bunch of great new Xbox 360‘s to a new crowd of gamer.
Motivation? Sony.
“I’m not at a point where I can say we’re going to beat Nintendo,” says Don Mattrick, senior vice-president of Microsoft’s Interactive Entertainment Business. Indeed, Nintendo is likely to run away with the lead in the current generation of console gaming, leaving Microsoft and Sony to battle for second place. (businessweek)
Who would have thought Sony and Microsoft would be battling out this generation for second place while Nintendo breezes through with their Wii console and a handful of games with mediocre game reviews? Don’t answer that, it’s a rhetorical question. If you saw this coming and you’re not on the marketing or project planning for one of these console makers you better prep your resume!
The battle isn’t cooling, Microsoft drops their price to compete with their big competitor Sony which also brings it closer to the price tag on the Wii getting two bird with one stone. The reason Wii is winning is clearly due to its broad demographic of grandpa and grandma non-gamers along with hardcore gamers who have to collect all the consoles and younger gamers that want to fit the trend.
Microsoft’s clearly shooting for second place by installing more units into the consumers home as possible. They’ve got a great library of first person shooter titles, a few RPG’s and RTS titles and the typical contraversial titles like GTA and Saints Row with more hot blockbusters (read: Gears of War 2) arriving soon.
I see this as a great opportunity for casual game developers to get into the Xbox Live Arcade market and start making themselves (and Microsoft) some money off the new gamers that will buy their first Xbox 360 for $199 and up. Microsoft’s getting closer to the low-budget gamer crowd with their price cuts so it would be great if they can take advantage of that market with lower cost titles as well.
If you’re a game developer looking for console stick time and you want to grab the attention of a large pool of gamers, the Xbox 360 isn’t a bad start!
While Microsoft isn’t aiming at Nintendo just yet, there is no doubt Nintendo will be in their sights if they can smoke the pants off Sony in the near future (by this holiday).
Bethesda Softworks vice president of marketing Pete Hines is critzing publishers and developers who shoehorn multiplayer into their games that doing such a thing is “a waste of time” and advises, “Just drop it, don’t bother…it’ll make for a worse game.”
In an interview with Next Gen BIZ, Hines states that using online multiplayer as a tool to prevent used game trade-ins and rental simply doesn’t work, and robs developers of valuable man-hours.
Hines stated:
“(People ask us) for a game like Skyrim or Prey 2, why doesn’t it have multiplayer? Well, our question is always the opposite when we talk to a developer. If you’re doing multiplayer, why are you doing multiplayer? What are you trying to accomplish?
“If you’re doing it just to check a box or because every other publisher says you’ve got to have multiplayer, then just drop it, don’t bother, it’s a waste of time, a giant distraction and it’ll make for a worse overall game.
“We want the best game possible. If that’s a singleplayer game that’s 15 to 20 hours, then make that! Don’t waste your time on features that don’t make the game better.”
The Elder Scrolls V: Skyrim and Prey 2 are two Bethesda properties that will lack multiplayer, but one of the tools to encourage games to keep both games will be downlodable content and, even more important, good communications with the game communities and nurturing the fandom for both games.
