Editorial - - Page 12

Wallets Shrink, Used Game Market GrowsWallets Shrink, Used Game Market Grows

January 22, 2009| schommer| 0 Comment| 1:37 pm

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.

for-sale 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.

Kaz Hirai Dooms 360 To Short LifeKaz Hirai Dooms 360 To Short Life

January 20, 2009| schommer| 0 Comment| 6:58 pm

Sony’s PlayStation 3 has a 10-year plan. We’ve heard about the plan, we’ve seen Sony’s current execution and we’re starting to see some of the titles making their way to the PS3 for 2009. The Xbox 360? Kaz, Sony Computer Entertainment’s head man, made his thoughts clear when speaking to Official PlayStation Magazine.

kaz “Last time I checked, they’ve never had a console that’s been on the market for more than four or five years and we’ve committed to a ten year life cycle, so you do the math…,” he says. He goes on to state that the Xbox 360 won’t have a larger install base by the end of their 10-year plan has been completed, “unless things go really bad.”

Of course, nobody says Microsoft’s 10-year plan isn’t to push out yet another console. Is that wise? We don’t really know, but you can’t count them out on it. Maybe they’ll only have half the install base but two consoles in the market within the next ten years, nobody really knows.

The one major hole we can see in his comments revolve around their claims that the Microsoft doesn’t have any history of a console being on the market for very long. If I recall, Sony managed to squeek one by on Nintendo with the original PlayStation, which changed everything for the next ten years. Sony didn’t have a 5-year track record when they started taking Nintendo down, why does Microsoft need to have an extensive resume as well?

As for Wii?

“It’s difficult to talk about Nintendo because we don’t look at their console as being competitors. They’re a different world and we operate in our world — that’s kind of the way I look at things…” (kotaku)

Say what you want about Microsoft vs. Sony, but it sure sounds like Sony doesn’t want to acknowlege Nintendo’s success because it casts a dark shadow on their own product. Nintendo and Sony have been battling for years, that’s just the way it is and that’s how the industry sees it. When NPD releases numbers, when journalists write articles about consoles and when the war is finished one thing remains constant: all three consoles are included in the equation.

Wii Will Beat PS2 in Sales, PS3 Like GameCube?Wii Will Beat PS2 in Sales, PS3 Like GameCube?

January 20, 2009| schommer| 0 Comment| 10:11 am

If the sales continue as they have been for Nintendo and their little white Wii, you’ll be looking at the top-dog for overall console says–best selling console ever. This would push Sony’s PlayStation 2 to the second spot of awesome console victories over the last seven generations of gaming hardware.

gamecube Before Sony fans unite to comment storm, remember, the PS2 had a lot of great games and continues to have games coming through for its console. People are still debating the life-span of the Wii product line, regardless to overall sales figures while the PS2 no doubt had a long live and still continues to have a long life, heck 30%+ of gamers still play the darn thing. Sony has been able to utilize the PS2 and its profitability to glide through the initial PS3 sales slump and get the momentum growing for their current generation console.

Yet, some folks are comparing the PlayStation 3 to the GameCube in terms of sales performance.

“During the first 26 month period, the PS3 sold 6.79 million units in the U.S., compared to 6.75 million GameCubes during its first 26 months. While the GameCube finished a distant third last generation, the console was profitable for Nintendo.” (Kotaku)

Before you get out your flame pens, this analogy wasn’t constructed by me, I’m merely the messenger. Again, to defend Sony (read: put on my flame retardant outfit) Sony’s console is slowly building momentum, depending on who’s statistics you read anyway, and their product will eventually become a profitable sale. The GameCube was profitable as well but boasted “dozens” of great games to play while the PS3 obviously is pushing to become the hardcore gamers console of choice with top tier graphics, blu-ray playback and a free online service. GameCube was really just a cube that played some games, a one-trick-poney as it where.

It still feels odd to say Nintendo is winning and Sony isn’t winning (I avoid the term losing to yet again to kill the flames) and… Microsoft?

Microsoft, in my opinion, is in the best possible situation. They’re not being targetted as the number one console and being critizised for holding such a position and they’re not dragging near the bottom to be poked fun at by the industry and bloggers around the world (mainly, the United States.) They’re stealthing by with good sales compared to the last generation console by “improving its fortunes.” The Xbox 360 “sells 18 percent faster than its predecessor, according to NPD figures, and even turned a profit, something the original Xbox never did” according to VentureBeat.

The PlayStation 3 has many years ahead of it and we’re sure plenty of gamers will eventually buy into the console because the technology within that black box is designed to last many years. Considering only 30% of the United States is rolling with an HD-TV it’s not surprising they’re not jumping at the opportunity to own a PlayStation 3. Why is the news all over the PlayStation 3 and talking trash about it? Sony was the console to beat when the PlayStation 2 reigned the industry, to see the console go from #1 to #3 in a single generation is shocking but not new; we saw Nintendo suffer the same fate when the PlayStation originally launched.

But, is the PS3 like the GameCube? There are too many factors to make that comparison, especially considering the growth in the game industry, the growth of storage and video technology and the general acceptance of video games. Hell, you can buy video games at convenience stores in the United States now, the industry isn’t the same as it was in 2001.

Please discuss…but don’t shoot the messenger. 🙂

Do HD Graphics Matter To Gamers?Do HD Graphics Matter To Gamers?

January 19, 2009| schommer| 0 Comment| 7:31 pm

hdtv The question of the day, “Do HD graphics matter to gamers?” If you’re currently rolling with a PS3 or Xbox 360 and you’ve got HDMI and or sweet component cables you’re probably saying, “duh, of course they do.” What about everyone else, those Wii consoles for instance, there are so many of those. What about gamers that do not know what HDMI means?

Let’s face it, an estimated 21-million people are still using over the air TV broadcast signal and a large portion of those think that their TV is high definition because it doesn’t have an analog dial anymore. Recent Nielson ratings are showing most gamers are still pushing PS2 hardware, which isn’t high definition.

In the US, HDTV sales only reach 25-30% of the population. Couple this with the fact that one in five HDTV owners can’t tell the difference between standard definition and high definition content and you’ve got roughly 20% of the population utilizing HD. Looking at the number of gaming consoles out there and the rate of uptake, it’s clear that a large majority of gamers are not using HD resolutions for their gaming needs. (loot-ninja)

We’d like to think 1080p looks much different than 480p but some people don’t seem to notice because, honestly, they just don’t care. We’d also like to think a PlayStation 3 buyer would be aware of the HD content and already have equipment at home to take advantage of the system. Although there are no solid facts to state otherwise, there must be a group of individuals that have purchased a PlayStation 3 and are rolling with SDTV (ghetto).

High definition graphics matter to people who want a true HD experience. Wii gamers don’t care about high definition because they’re focused on the game play environment or are just following the wave of hype and desire to own the infamous white box. The Xbox 360 gamers may go either way, a gamer wants to own the system because they can get a lot of cool new games for it secondary to the HD experience. The hot games just don’t get designed on the Xbox classic or PS2 anymore. We’d presume a PS3 gamer really wants to play a high definition game because the cost of the console is more and you’re getting a Blu-ray player all bundled into one.

HD graphics matter to us, we see the difference, respect the detail and use the HD portion of the console as an excuse for paying so much for the technology. The United States, as a whole, isn’t fully ready or equipped (mentally) for a full HD experience. When will they be prepared to experience high definition at its fullest?

My guess, five years after Nintendo makes the transition to 1080p. Nintendo is capitalizing on the “average Joe” and the average consumer is still catching up on the high definition. Hell, many gamers are still playing the dial-up game!

Maybe we need to start a new government funded orgnization: The No HD Left Behind Act. Everyone should be in HD.

Microsoft Says Blu-ray Holds No 360 ValueMicrosoft Says Blu-ray Holds No 360 Value

January 12, 2009| schommer| 0 Comment| 4:05 pm

Rumors float around the Internet questioning when Microsoft will ship a Blu-ray enabled Xbox 360 or add-on device like they did with the, now failed, HD-DVD. At CES 09 Robbie Bach, president of Microsoft’s Entertainment & Devices division, says this request is “way down the list.”

Mr. Bach had some great selling points as to why a Blu-ray player has little value in the world of Xbox 360. The primary reason, of course, being the Xbox 360 developers cannot take advantage of Blu-ray as a development platform for games. This was the price Sony, or the consumer, paid to own a PlayStation 3 since all games are printed on the media and are, in effect, Blu-ray “capable.”

We say capable because not all (any?) PlayStation 3 games currently make full use of the Blu-ray media. Many games will reprint the game on the media for optimization purposes, fill the game with international voice overs for all countries or, otherwise, stuff the media with something that will serve a useful purpose. Sony has near-future-proofed their device by giving game developers years of growth in terms of utilizing the Blu-ray capacity.

Microsoft chose to take the smaller old-style DVD format for games and media. Adding the HD-DVD didn’t add a large deal of risk because, as we saw, they can discontinue the model and not change their core gaming demographic. We still laughed a bit at them, but that was where it ended. Bach also said that it’s not really a great economic time to push a new 360 SKU on potential customers with additional cost just for Blu-ray movies playback.

They could add Blu-ray game development support as well but that would just alienate the “28 million Xboxes” they have already shipped.

“OK, let me get this straight: I’m going to add something to the product that’s going to raise the cost, which means the price goes up, consumers aren’t asking for it, and by the way, my game developers can’t use it.” (gamespot)

Of course, the first thing that came to our mind was “well, you did it for HD-DVD, how is Blu-ray different?” The key areas we can think of really come down to Blu-ray is a Sony technology and they are a direct competitor and, to top it off, HD-DVD allowed them to fight against the PS3 at the media level of the industry. They minimized the risk by making the product a secondary add-on device and, if HD-DVD had won, they’d have the winning format already under production (still not for games).

It seems Microsoft has changed their battle plans a little. They started out talking up the media aspects of the 360, using Media Center, renting movies and TV shows and had the HD-DVD as a subproduct. Today, they’re investing in Netflix for media and everything else favors the games.

Which is fine, we like games.

EGM closed, 1-UP Purchased, We Wish Them Well!EGM closed, 1-UP Purchased, We Wish Them Well!

January 7, 2009| schommer| 0 Comment| 11:56 am

When I was a little boy gamer I would spend a bit of my allowance on Electronic Gaming Monthly a great little gaming magazine. Unfortunately, young gamers will never understand what the industry was like twenty years ago. In a time before the Internet, the only place to get gaming news for a young kid was a glossy magazine. Today, EGM closes its doors and we’re losing a historic piece of gaming history.

Granted, there were other glossy magazines prized by young boys too, but we were old enough to purchase Electronic Gaming Monthly, now known as EGM by the hip and cool. Although EGM was founded in 1989, many adults between the age of 29 and 35 probably spent their youth flipping through the pages reading the reviews and editorials.

The days of the magazine are drawing to an end for many industries, with video game websites covering everything from truly hardcore to highly niche, we all demand our information as soon as possible. If a company like Ziff Davis is selling its properties, we want to know the minute it is announced, when 1UP is purchased by UGO we want to know the minute the ink dries. Why? Because we can.

January 2009 marks the last issue of Electronic Gaming Monthly. After Hearst Corporation (owner of UGO) purchased 1UP from Ziff Davis it was announced that EGM would be seeing its last issue. Sure, there was a chance this would occur without the acquisition as well but the sadness wouldn’t be any different. We’re sure the staff will find a great home writing for another publication or in the online world, but it is sad just the same.

Along with the sad news of EGM closing, we’ve heard a number of folks at 1UP have also been effected by Hearst Corporations purchase of 1UP which has many people out of a job during tough economic times. There has been rumor the 1UP podcasts being ditched as well, but we have heard nothing official yet (please comment with official stories if you hear).

Of course, 1UP is “officially” rejoicing at the news but we know this is part of the “smoke and mirrors” that is an acquisition. A few, now former, 1UP folks have been using twitter and game forums to voice their own “opinions” of the purchase.

This is a rough economic time for many people, printed magazines, online publications and others. The only shining light is knowing many of these individuals will find new places to call home or start brand new online publications to compete against their old company. Talent will not go restricted, they will no doubt group together to form new aged publications to show off why the big boys are flailing in the dark.

We wish them all well in their efforts to find success.

Gaming Flashback: Yo! NoidGaming Flashback: Yo! Noid

January 2, 2009| schommer| 0 Comment| 1:41 pm

Yo! Noid was a commercial opportunity for Domino’s Pizza developed by Capcom. This retro style game revolved around Domino’s Pizza claymation style mascot, the Noid, as he adventures through fourteen stages of side scrolling action.

The game sound was much like any other 8-bit action platformer. It reminded me of the original Teenage Mutant Ninja Turtles for the Nintendo Entertainment System, not the cool arcade one. Minus the turtles, Yo! Noid is a battle against Mr. Green, the Noids evil duplicate, a concept used in so many games; remember Shadow Link?

Unlike Link, Noid lost a life when he hit an enemy similar to the Super Mario Bros. style platformer but with a Yo Yo weapon. You could also gather smart-bomb type scrolls to clear the screen of all enemies, another classic side scroller arcade recipe. Yo! Noid brought nothing to the table in terms of uniqueness and relied on the standard recipe of side scrolling conflict.

This retro game may be one of the first true “total conversion mods.” Later we’d see Counter Strike born out of the Half-Life engine and way before that, Noah’s Ark 3D built out of the Wolfenstein 3D engine. Yo! Noid was a re-creation of the game Kamen no Ninja Hanamaru. Oddly enough, Yo! Noid was probably more well known than its forefather game because Capcom didn’t release Kamen no Ninja Hanamaru in the United States. Instead, we got Yo! Noid and a $1.00 off coupon on the back of the manual so we can get ourselives some Domino’s Pizza.

Although a few of us may recall Yo! Noid from our childhood, the title really didn’t create any huge waves in the game industry. Yo! Noid did show developers that a brand named product could be used as a marketing and brand awareness strategy, something we’d later see Burger King try on the Xbox 360 and find some success.

Can you tell the difference between Yo! Noid and Kamen no Ninja Hanamaru?

Jack Thompson Says Take-Two Chairmen Must Repent His SinsJack Thompson Says Take-Two Chairmen Must Repent His Sins

January 1, 2009| schommer| 0 Comment| 8:20 pm

The washed up Jack Thompson, also known as the thorn in the side of Take-Two has gone off the deep end. Originally, Thompson would do everything in his power to bring the negative press (and lawsuits) to Take-Two for Grant Theft Auto, Man Hunt and any other game he didn’t like.

Hot Coffee! Rather than allowing parents to utilize the ESRB rating, Thompson found it in his Christian heart to pursue game companies like his own personal holy war. Luckily he’s lost all his power because people finally realized he’s a lukewarm loon with a one track mind. But wait, there’s more!

“Mr. Zelnick’s problems at Take-Two are miniscule [sic] compared to the eternity of punishment that is coming his way unless he repents and accepts Christ as I did 32 years ago this month.” (1up)

When the law doesn’t work out for him, he takes it into Gods hands. He fires right over at the chairmen, “there is no blessing for Strauss Zelnick, who is not a Christian, when he gets what he deserves…”

The game industry was doing well before Jack and it will thrive without him in the way as well. One man cannot change the world, especially when that one man tends to act like a raving lunatic. Parents must guide their children down the right paths, show them life’s possibilities and understand what content is rated for what age. We’ve figured out how to handle movie ratings, we’re sure adults will figure out the ESRB rating as well.

We give too little credit to parents when it comes to making decisions for their children. If they cannot make the right decision on allowing a six year old to play Halo or Resistance, then can we actually trust them to keep a child out of R rated movies or finish their dinner before getting a snack?

Sony’s PS3 Real 10 Year Plan: Home Entertainment TakeoverSony’s PS3 Real 10 Year Plan: Home Entertainment Takeover

December 29, 2008| schommer| 0 Comment| 11:27 am

The PlayStation 3 is the slow seller in the United States but Sony still holds belief in their “10 year plan.” Many of us consider this to be the same style of plan Sony used with the PS2, sell your console through multiple generations and own the market share. The PS2‘s launch was much more graceful when compared to its 7th generation counterpart. Perhaps the PS3 has a different destiny… perhaps they want to remove all other media boxes from your living room.

Imagine a life without a cable box or Tivo and you’re probably envisioning Sony’s road map for a media distribution empire. First, remove Tivo from the situation with a DVR style box using their PlayTV technologies, wired up to the PlayStation 3 using a USB connection. The United States hasn’t seen a launch of PlayTV, more than likely because the PS3 isn’t a huge console here yet and Tivo is partnered with many cable and satellite providers already.

Senior director of the PlayStation Network, Susan Panico said Sony “looks aspirationally at HBO, the way they have Sex and the City and other shows” (gamespot) after admitting Sony wants to replace cable boxes in the home. Tivo has already done a great job removing the need for a cable box, allowing you to rent a “cable card” to insert into a Tivo and gain access to all their content for your DVR needs. DirectTV offers (or has in the past) a Tivo or Tivo-like DVR solution. Cable and DirectTV offer the ability to rent their DVR or offer a solution to purchase your own at a retail outlet What if Sony decides to partner with one or more of these providers to offer an all-in-one solution. PS3 owners wouldn’t have to purchase additional equipment and could be up and running immediately with hard disks big enough to handle HD content.

Sony could offer you a graphically appealing gaming experience, a high definition BluRay solution, media distribution for renting movies, an iTunes style online store for purchasing and playing music all wrapped up in a DVR solution. All this content for a $400 price tag is a value when all the offers are combined into one tiny black box.

Looking at today’s Tivo Series3 HD DVR you’ll notice the ability to play music directly from iTunes, browse and play Youtube shows, watch Disney offerings and even high definition NetFlix playback. The Tivo DVR’s can also talk with other DVR’s in the household making it easy to share TV records across systems. The only thing missing in the Tivo solution is a high definition gaming platform and the BluRay hardware.

We’re all sitting here poking fun at the small PS3 game library and telling people that BluRay is going to lose out to HD downloads yet we may be missing the bigger picture: an all-in-one media empire solution. The PS3 may not carry the largest game library compared to the Xbox 360 or the sales records of the Wii but if Sony finds a way to become a reliable and required media set top box they may realize their true “10 year plan.”

Phil Harrison’s Building a 100 Million Dollar FranchisePhil Harrison’s Building a 100 Million Dollar Franchise

December 20, 2008| schommer| 0 Comment| 11:50 am

Once upon a time, Activision Blizzards CEO Bobby Kotick kicked a few franchises to the curb: Riddick and Ghostbusters. No doubt, this was a result of the Activision and Blizzard merger requiring some resources to the merged together while others were cut from the lineup. Phil Harrison, the new big suit at Atari/Infogrames has raised these little birds from the ashes with a dream to build them into 100-million dollar franchises.

While Bobby Kotick said the titles, “don’t have the potential to be exploited every year on every platform with clear sequel potential and have the potential to become $100 million dollar franchises,” Phil Harrision sees it as a personal challenge to prove him wrong.

“What Bobby, perhaps unhelpfully said, was that those games were franchises which wouldn’t make $100m of revenue and generate sequels. If that’s his benchmark, then fine — and we’d love to aspire to the same benchmarks. But you know what? I would love to turn Ghostbusters into a $100m franchise, just to prove him wrong.” (1up)

In many ways, this is the difference in attitudes from a large firm compared to a smaller firm with strong goals and a vision for success. Activision Blizzard is big now, perhaps the biggest publisher in the industry, they can’t be bothered with minuscule 80-million dollar franchises. Others, like Atari, strive to take a title from nothing to something of greatness. Granted, Atari’s failed in a lot of franchises, but with their new ex-Sony executive behind the helm things could turn around and this might be the first step.

Most of the best game franchises in existance today started from nothing but a dream. Big publishers don’t have time to dream, they’re too busy making money off the fanboys of their current franchises.