This week we check out Paradox Interactive’s showcase, as well as the following news:
Let us know what you think of Paradox’s lineup.
Are you one of those that have a diskless (or low flash disk) based Xbox 360? We’ve been wondering, ourselves, what Microsoft was going to do to “fix” the fact that the upcoming Fall Update is going to require 128MB of disk space.
It seems they’re going to hand you either a 512MB memory card or a 20GB Hard Disk for the price of $20.00. If you’ve got the $20.00, this would be the best route to go as 20GB is way more than a free 512MB flash card. You’ll be hard up to find 20GB anywhere for a buck a gigabyte – definitely a good deal.
Unfortunately, tonights gaming podcast will still have us pondering the news as we’ve already recorded it and asked the question “what are they going to do?” If you want to see if your console qualifies for the storage upgrade, head to Microsoft’s website with your serial number and console ID handy.
(Thanks, GameStooge)
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.
One of the great downfalls of an acquisition or merger, in the game industry, is the loss of great franchise titles. Sierra, or Sierra Online, once stood on its own as a company with great gaming titles but later fell into the depths of Hades under many different company names.
Sierra’s last stop on the acquisition highway was Vivendi, years after much of Sierra’s steam had slowed. Now, they’re part of Activision Blizzard so we had high hopes they’d find a great use for some of the old Sierra properties long since collecting dust. Space Quest, Kings Quest, Leisure Suit Larry and especially Gabrielle Knight were some of our favorites, but times have changed.
“We are retaining only those franchises that are a strong fit with our long-term strategy including Crash Bandicoot, Ice Age and Spyro, as well as Prototype and a second game that has not yet been announced. We will not publish any other titles that previously were part of the Vivendi Games portfolio and we are currently reviewing our options regarding those titles,” says Activision Blizzard (joystiq)
This is unfortunate news, Activision Blizzard now has a large set of franchises on their hands, many of which have collected dust for years. Those dust collecting franchises could rise from the dead and reinvigorate their old fan base… or be dropped to the earth as unwanted scrapes after a big hunt with the vultures awaiting their take (sorry, too much watching of Animal Planet)
A reworked Kings Quest or Gabriel Knight could have seriously awesome potential in this time and age, imagine a dark comedy version of Gabriel Knight or a huge scaled world in King Quest using todays graphic engines. Although, these titles could also go the way Atari has gone and taken a well remembered franchise and made mud of its great name (*cough* Alone in the Dark).
Unfortunately, we’ll probably never know the distance an old franchise could go in this new world. We’ll have to pull out an old copy of our prized posessions and remember just how great they once where.
