PAX is Packed. Results of E3’s Dying?

Some folks over at Kotaku ran into problems at the Penny Arcade Expo, it was packed with people and complications. Apparently the rooms are cramped with humans and bad acoustics, leaving some wondering what was going on at the Harmonix demonstration. Others sat in long lines, way ahead of time, to see games like Fallout but were turned away after a long wait.

It seems the lack of fans at E3 has caused people to go elsewhere, PAX for instance, to get their demo gaming fix. There is obviously a demand for this type of expo, if people could figure out how to balance the costs associated with holding such an event. Despite cramped space, long lands and epic disappointments being turned away, will people refuse to go next year?

Probably not. Perhaps they’ll expand to a bigger venue, eventually to be the new “E3” expo?

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Developer Wants License Keys For Console GamesDeveloper Wants License Keys For Console Games

UK developer David Braben from Frontier Developments believes smaller development studios are in the worse position when it comes to re-sale of “pre-owned” video games. Since a developer only gets their cut of the profits when a game is sold new, pre-owned titles allow gamers to play games without paying the developer for the effort.

This also hurts larger publishers, but they’re able to recover because of the sheer volume of games and game titles. One idea David had, was to code each game with a unique license key like a PC game that gamers must enter before playing. This would kill the ability to re-sell video games back to the market for others to buy at a cheaper price (translation: better value).

The future shows a higher degree of downloadable games, which cannot be re-used or sold back to the market, but for now, developers have to deal with pre-owned video games cutting into their profit. Presumably you could have a great game with smaller sales and a high degree of resale in the pre-owned market.

Problem with this take on development? Besides large scale video game sellers like GameStop making 80% profit margins on resold games (rather than a 10-15% on new), gamers want a way to make back some of their money on expensive titles. When you’re paying $60 for a game and you beat it in a week or two, you want to resell it so you can invest in a future title.

My theory… make games more affordable so we don’t feel gouged on the price. We may decide to hold on to it longer and tell our friends about it. A good game reference and a reasonable price will increase sales every time. Don’t try to solve pre-owned problems when the problem is the publisher and the industry making huge game prices.

(Thanks, Kotaku)

Episode 416: Blowing WindsEpisode 416: Blowing Winds

Unfortunately, we had to skip a week despite recording a good podcast thanks to technical difficulties – don’t worry, we’ll air it at some point in the near future. It was a good episode. This episode had its own issues, as Jonah was unable to record the podcast at home, so he was outside in the New York City night air podcasting with TJ and Scott.

This week’s news includes:

  • Microsoft cancels Fable Legends, closes Press Play Studios, considers shuttering Lionhead Studios UK
  • Report: SpinTires developer sabotaged his own game
  • 10 months later, MAME finishes its transition to open source
  • Valve announces The Lab, a compilation of free VR “experiments”

Let us know what you think.

Analyst Draws Connection To Netflix Growth and 360 GoldAnalyst Draws Connection To Netflix Growth and 360 Gold

netflixThe famous Michael Pachter, industry analyst has been drawing some strong connections between Xbox 360 gamers and the Netflix subscriber base since 360 launched their Netflix addition. Our family has seen the same thing, we signed up for Netflix a few days after it arrived on the Xbox 360 firmware launch.

Oddly enough, we’ve not used the Netflix addition to the Xbox 360 much after subscribing for Netflix. We’ve utilized the DVD shipment feature and we’re using the Tivo version of Netflix for the living room. Although we’ve found the Xbox 360 Netflix version is much more user friendly and fast.

“Pachter estimates that roughly one million Xbox Live Gold members are also Netflix subscribers, and that 200,000 or so of them signed up for Netflix after the debut of the New Xbox Experience in late November, 2008.” (joystiq)

Prachter believes 35% of all new Xbox 360 purchasers will sign up for an Xbox Live Gold account. He expects “as many as 1 million [XBL Gold members] join as Netflix members in the next year.” We’re fairly certain the Netflix and Microsoft Xbox 360 partnership was a well thought out plan to expand their domination in the industry.

Of course, as we’ve seen, Netflix didn’t just stop at Xbox 360, their Tivo solution is another great way to leverage your downloadable video content. Now, we just have to hope we don’t blow through the 250GB cap Comcast supposedly contains.