This week’s podcast includes the following news items:
Let us know what you think.
The Xbox 360 saw a huge jump last week with Tales of Vesperia from Namco Bandai, but has dropped back down to normal sales (about none). Some are saying it’s mainly because of a short supply as the 360 sold out in Japan as a result of Tales of Vesperia.
In other news, the PlayStation 3 still isn’t selling very well, a bit more than the PlayStation 2 but nothing like the PSP. The DS holds the record yet again, no surprise there, but we always though the 360 was losing to the Wii and PS3. Although the Wii isn’t doing bad it’s not at the same crazy sales pace it is here in the United States.
The drop in sales for the 360 was fast, hopefully it was indeed due to out-of-stock issues, else that drop was faster than the drops we’ve seen here for GTA IV or MGS4!
(Thanks, Kotaku)
Gigaom had a great writeup about how Grand Theft Auto IV marks the end of “next generation” as we know it, stating, in more words or less, the game is a failure. GTA: San Andreas sold 21.5 million copies during its time on the shelf while GTA IV has sold roughly 9 million copies as of June 7th.
Granted, the game is still on the shelves and will still get sales, but the mass of “hardcore gamers” have had their fill and either purchased it or will not. The end result? A huge tapering of sales numbers for the graphically impressive game. Take-Two spent USD $100 million to develop the game which had great opening sales records but has gone down drastically since.
Imagine the title gains them USD $30.00 per sale in profit (considering distributors get the game for roughly USD $45 to $48.00 USD), taking into account shipping of the product, marketing and all the materials that go into producing a copy, they’d have to sell a large quanity of game titles to break even, which I think they have done.
Nobody is in this industry to break even. A block buster title should make block buster profits, right? Else, why bother to spend the 100-million when a Wii title can double or triple the profits with six months of development?
Most folks in the game industry are already writing off E3 as an actual event to be attending. Even Wedbush Morgan analyst Michael Pachter is calling it “virtually useless” for both retail and investors. The writing is on the wall and the reasons are obvious.
Publishers and developers didn’t want to invest the millions of dollars to make E3 a glamour show of epic proportions anymore. The lights, camera and action are all what the industry is about; the hype wagon in full steam. Gamers eat up the hype, bloggers and journalist rely on the hype and action to build readership and keep them coming back for more and retail uses it to gauge new releases and get a grip of the future.
Without the entertainment value of E3 nobody seems to care anymore. Large scale gaming entertainment is reflected in the large scale events and, at the end of the day, we want our conferences and shows to reflect the emotion and exciting of the industry.
“E3 had much more of an impact when it was a show,” comments IGN.com vice president of games content Tal Blevins. “The video game industry is about fun and entertainment, and we should have a show that reflects it.” (gamasutra)
Everyone is sad to see the state of E3, it’s like a cancer patient waiting for their final diagnosis. It’s unfortunate, it’s going to get worse and life will go on without it. In its wake, new shows will crop up while old shows increase in audience, excitement, intensity and cost.
As one show begins to fade others will grow to replace it and developers will yet again find themselves spending millions of dollars to be the best of show.
