Category: Editorial

Studios Closing: The Good, Bad and UglyStudios Closing: The Good, Bad and Ugly

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?

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Will Xbox Live Survive 2008 Holiday Stress?Will Xbox Live Survive 2008 Holiday Stress?

This year many gamers will open new consoles for the holidays and many of those same gamers are going bring their console “live” on Xbox Live the same day. Traditionally we’ve found Xbox Live falls under the weight of the holiday rush much like Apple’s iTunes. Will we repeat history again?

Although a fully loaded Xbox Live service is money in the bank, how much money will Microsoft lose when gamers login for the first time to a service in a state of destruction? People say first impressions are extremely important, but Microsoft makes a poor first impression every holiday. Xbox Live’s Jerry Johnson told Eurogamer:

“I can tell you that when Robbie Bach is on the phone on Christmas Day calling people asking what the hell is going on, and that’s coming down from Steve Ballmer… that’s the kind of attention it got last holiday.

Many things have changed since then, and we realised [sic] the kind of growth trajectory we were on and had to prepare for it.” (Kotaku)

It’s obvious the top executives at Microsoft want to give customers a great first impression and, after a few repeated holiday down times, this year is the chance to change it all. By now, Microsoft should be fully aware of the holiday flash crowd and have a system ready to cover the load.

Plenty of gamers login because their console automatically signs in on startup, but a handful of those gameres will be shopping for Xbox Live Arcade games to see what Microsoft is now offering them and their new console. Many XBLA games the current 360 crowd is bored of will be fresh and new to holiday adopters so it’s very important to keep the system online.

Much like Amazon, sales will decrease when the service is busy or under heavy load. Hopefully Microsoft is ready to make a great first impression to new buyers and give them the option to buy high valued (high markup) electronic downloads.

Blu-ray Doesn’t Validate Your Console, SonyBlu-ray Doesn’t Validate Your Console, Sony

Is Blu-ray dead? Tech Sites around the Net are calling it a “death spiral” and we’re now looking at the downfall of the winning high definition format. Many non-PS3 Blu-ray players are still in the USD $200.00 range, a bit high for mass market adopters, and people aren’t planning to run out and buy a Blu-Ray player in our economic slump.

What’s the market share of the Blu-ray product? Four Percent. Blu-ray and the PlayStation 3 have a lot of battle scares after the fight with HD-DVD to “win” the format war. In the end, Sony won the battle but the war was not with the HD-DVD format, it’s with the average Joe consumer.

Does this effect the PlayStation 3? One of the up sells of the PlayStation 3 was the Blu-ray capabilities, it games and it’s an entertainment device all-in-one. It’s a great deal right?

“The advent of low cost up-sampling DVD players dramatically cut the video quality advantage of Blu-ray DVDs. Suddenly, for $100, your average consumer can put good video on their HDTV using standard DVDs. When Blu-ray got started no one dreamed this would happen.” (zdnet)

The obstacles against the Blu-ray format are huge, especially with NetFlix coming to the Xbox 360, high definition download options and licensing costs on the Blu-ray to movie creators. Blu-ray won’t die in this generation of PlayStation 3 consoles but many folks, including Apple, are pausing to see if it has any chance at all to break into the industry.

Four percent just isn’t enough to inpsire confidence.

Games 2.0: User Generated Gaming?Games 2.0: User Generated Gaming?

In a world driven by the Internet, global economics and the short attention spanned reader we’ve been bombarded with social networks and 140-character micro-blogging. We’re constantly finding ways to promote ourselves, promote our brands or tell people what we’re eating for dinner. Is this obsession with ourselves and our creativity bridging into video games?

It’s games 2.0 people!. A time when we’re inventing our own video game stages, characters and full blown casual games! Not only are people getting a chance to design their own games with Microsoft’s XNA, Adobe Flash or from small independent casual games, but we can design our own stages in games like LittleBigPlanet.

Microsoft wants to remind us that Boku is much like LittleBigPlanet in its user generated video game content. Seen in this video below:

It’s obvious their going down the same path as Sony has gone with creating your own stages with LittleBigPlanet and creating a new way of gaming: playing other people’s stuff. You can find some similarities with Guitar Hero: World Tour‘s ability to create your own songs and publish them for others to play.

Are we heading down a generation of games where some of the best stages are created by fellow dedicated gamers? Or, is this just a distraction and means for developers to have gamers invigorate and create more of a demand for the games they are making the money on?

(Thanks, Destructoid)

Trading Used Games, Like Fraud?Trading Used Games, Like Fraud?

David Braben, founder of Frontier Developments, says retail outlets that buy and sell pre-owned games are “essentially defrauding the industry.” Although multiplayer gaming might not be a huge threat, the single player experience in games may die out because gamers play the game quickly and resell it back to places like GameStop for others to buy.

Developers don’t get a dime when a game goes traded, many gamers will “share” the single player experience with a single copy of the game by reselling it over and over. The end result, retail outlets make a good penny for marking up old games while developers see nothing. This is really how game retail outlets survive because the margins on video games is so damn low.

The story has been heard before, developers want a piece of the action so they’re taking steps to entice people to keep the game with renewed downloadable content on old games; you can’t experience the new content without keeping the game around longer. In the world of low margin games, high cost development and short-lived story lines the solutions to this problem aren’t exactly obvious.

Braben’s idea of a solution is to offer two versions of the game, a not for resale/rental version at a high price, say $160, and a low priced version that cannot be shared (heavily DRM’ed?) for $50. In essence, gamers would no longer be able to trade in games because the idea of spending double for a game so you can resell it makes no sense to most gamers (including myself.)

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Broken RockBand 2 Drum Pads, Best Buy RetardedBroken RockBand 2 Drum Pads, Best Buy Retarded

We purchased Rock Band 2 and the Drum Kit on the week of launch, having played on the drums for about a month we’ve already broke them. This time, however, it’s not the foot pedal, but the blue and yellow drum heads, now having smashed little holes in the center.

It’s not abuse when the object of the game is to hit the pads with sticks, right? Hopefully not, as we’re not the first to beat the pads to the breaking point using standard pressure and part-time play. In the full month we’ve had little time to really rock out with Rock Band 2 but we play when we can. It seems a bit early to already have blown out the pads.

The issue is simple: the blue and yellow pads have a dent/hole under the rubber surface, pressing down on the pad allows you to easily feel the plastic “button” which executes the hit. The middle of these two pads can be seen sunk in while the red pads center is popping up as if the rubber has let go from the surface and risen. Needless to say, the “bounce back” on the pads was gone.

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Game Publishers Hate RiskGame Publishers Hate Risk

It’s clear publishers like Electronic Arts hate to take risks on video games. They’re not alone in their opinion, look how many sequels we’ve got for the holidays compared to new creative titles like Little Big Planet, or how publishers push out sequels to hot titles until we can’t take it anymore; how many Guitar Hero titles will arrive before we scream “enough!”?

Speaking to rocking music, Electronic Arts may pass on the chance to pickup Brütal Legend, a title originally being published by Vivendi Games prior to the Activision Blizzard merger. The title was left without a home when the merger was complete along with other dropped titles.

Why would EA not take the chance with the game? Risk factor. Brütal Legend is a game title developed by Double Fine Productions and has been designed by Tim Schafer, with past games like Monkey Island, NES’s Maniac Mansion and the fantastic title Full Throttle. With such sweet titles under his belt, why wouldn’t a game designed by Tim Schafer be a hot commodity in the market?

The game brings music and action adventure together in a creative twist. No, it’s not Rock Band and it’s not Guitar Hero, thus, MTV and Activision don’t care about it. However, the game plot and storyline are music related and, supposedly, the main character is voiced by Jack Black, vocalist of Tenacious D and popular actor (School of Rock anyone!?)

Creator Tim Schafer has said that roadies have long fascinated him. Schafer originally thought of the game’s title over fifteen years ago. “I was riding a bus, thinking about a game that would be the complete opposite of what we were working on, The Secret of Monkey Island. And Brütal Legend leapt into my head. (wikipedia)

It appears a series of publishers have walked away from Brütal Legend without much hesitation. “I have seen it,” EA CEO John Riccitiello told Gamasutra. “I am well aware of what the game is. It’s a very significant creative risk.” (joystiq)

Where would the game be without significant creative risks? In many ways, World of Warcraft was a risk… it’s only got 9 million or more players.

Starcraft 2 Part Eins, Zwei and DreiStarcraft 2 Part Eins, Zwei and Drei

Nobody is perfect. When it comes to creating an epic story arc, awesome pre-rendered movies and a fully fleshed campaign Blizzard has done well. Now, Blizzard speaks of Starcraft 2 and the world shuts their mouth and listens to each and every word. What’s the word?

A Trilogy.

We’re not talking about the Lord of The Rings style trilogy, but three games with full stories which all end with the gamer being satisfied at the closure, not cliffhangers.

The three standalone games will be (says GameStooge):

  • Terrans – Wings of Liberty
  • Zerg – Heart of the Swarm
  • Protoss – Legacy of the Void

Gamers are probably thinking, “so, I can play multiplayer with only one race?” No! The campaign is split into three separete games, not the races and multiplayer features. Although, each title is sure to introduce something new to the game engine, Blizzard has said:

“Nothing changes for multiplayer or skirmish mode. All three races are fully implemented from the get go. Each campaign will feel like an epic story – not a cliffhanger into the next one. They will each have separate arcs that have a clear start, middle, end – and you will feel like you’ve really finished *something* at the end of each game. More content than we’d previously planned – many more Movies, Missions, etc.” (games.on.net)

From our perspective, it seems Blizzard is itching to release the multiplayer system to the world sooner than later, considering some countries use Starcraft as a professional league, but they don’t want to rush out fast to market campaigns just to satisfy this multiplayer desire.

Instead, they’re going to take their time, in usual Blizzard style, by releasing the game as they finish it… per races story. This should give us a less watered down storyline or having one or two races with a piss poor storyline while another has a kick ass storyline because it was done first.

End result? Multiplayer gamers will be happy in the end while those that play Starcraft for the story will need to wait for each game to be completed. We know Blizzards release schedule is “when it’s ready” so we can only imagine how long it will take to reach that third game in the trilogy.

Xbox 360’s Fallout 3 Not Safe From PiratesXbox 360’s Fallout 3 Not Safe From Pirates

Just last week in our gaming podcast we were talking about how Gears of War 2 wasn’t going to make a PC debut because it has a bit of a problem with piracy. We were afraid this movement was going to cause game developers and publishers to stick with console’s “big can of DRM” over the PC for many future releases.

Turns out, Fallout 3 was stolen before it was announced as finished and has begun to show up on torrents around the Internet. This, of course, has lead folks to believe the leak took place at the manufacturing plant given the obvious circumstances behind the event. Sure, the title could have been leaked at the developers studio, but who would want to cause their products sales to suffer? Perhaps a hacker broke into the studio and stole the raw images?

There are plenty of possibilities, but the fact of the matter is this is the “DRM” console version of the game. It has been stolen and downloaded by thousands of people who are going to actually take the time to make it work on their ‘tweaked’ console. Just when we said “it’s too hard to hack the Xbox 360 and its games,” some pirate comes out and does it!

While the pirates set sea with the glorious booty that is Fallout 3, Bethesda’s staying hush about the incident for now. In odd timing, Ubisoft came out, prior to this event, talking in respect to Tom Clancy EndWar saying:

“To be honest, if PC wasn’t pirated to hell and back, there’d probably be a PC version coming out the same day as the other two.” (gamasutra)

Perhaps, the pirates want to bring some attention to the console market in terms of piracy so developers continue to produce PC titles? If nobody is safe, there will be no one safe-haven console to run to when pirates are stealing “potential sales.”

Sony Should Buy Ubisoft and Here is WhySony Should Buy Ubisoft and Here is Why

Sony’s been putting a lot of effort (read: money) into the PlayStation 3 product line with very little impact in the market. They’ve got this “10 year plan” but haven’t really executed a strong plan for their first two years of said plan. Sony’s plan seems to be “outlive the competition’s technology” while all of its competition stomps on their sales and market share with older and a bit “outdated” products.

Thus far there have been five spins of the PlayStation 3 hardware with price cuts only coming as a result of a “fire sale” of old hardware revisions. Sony, like many, believes the Nintendo Wii isn’t a direct competitor in their space; the outstanding sales of the Wii probably haven’t impacted the PlayStation 3 sales too much. The Xbox 360, however, has definitely cut them deep in all regions of sales.

Microsoft has built some unexpected momentum in Japan with Square-Enix making them a few console seller titles and the price cuts in Europe boosted sales over 200% all while the US continues to buy into the 360 hardware despite its most obvious red-ringing flaws. Microsoft has great partnerships with some fabulous companies, Bungie and Epic for instance, to build them exclusives that move even more 360 units.

Motorstorm is one of the PlayStation 3’s best games, selling over 3-million copies. While, as of January 2008, Halo 3 sold 8.1 million units for the Xbox 360. Now, Metal Gear Solid 4 has sold roughly 3.94 million copies since August of 2008 yet unsubstantiated rumors exist stating MGS4 could make its way to the 360. Combined awesome titles for the PlayStation 3 may not even exceed one of the competitors best selling products; where is the PS3 excitement?

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