Category: Industry News

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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Circuit City Denied Sony Shipment, In TransitCircuit City Denied Sony Shipment, In Transit

Circuit City seems to have a problem paying their bills or so it seems, as Sony stopped their shipments mid-transit and returned them before hitting the distributors command center. In this unfavorable market climate, with the holidays around the corner, it seems bad for Circuit City to lose the trust of Sony.

Sony is afraid, “Circuit City couldn’t pay for the shipments” so the merchandise was turned around and returned home. Considering Sony, more than likely, wouldn’t have shipped the products to start with unless Circuit City was in good standing suggests things might have been “learned” after the shipment left the docks.

Circuit City’s been in some bad situations before, having a rough time dealing with competition in a very low margin, high volume, world of electronic retail. I’ve witnessed CompUSA disappear after the local Best Buy moved in and now Best Buy sits about 80 yards from Circuit City.

This is unfortunate because Best Buy can use some competition before they take over the bulk of this industry leaving only Wal*Mart and a few smaller stores to keep them in check. Considering I just purchased a 2-year warranty on my Rock Band 2 drum kit at Circuit City I’m fearing I’ll have to break the hardware sooner than later!

(Thanks, Gizmodo)

EA Feels The 310 Million Dollar DaggerEA Feels The 310 Million Dollar Dagger

Halloween is a scary time of year, no less when you’re posting a $310 million net loss. EA CEO John Riccitiello sees “weakness” at retail in October and we’re betting this isn’t the end of the road of sorrow for game publishers around the globe.

Electronic Arts isn’t unfamiliar with bad times and we’re sure to see them make constant adjustments to their headcount, game releases and press as the economy goes into a bit of a slump. Although the game industry won’t see as big a hit as the financial market, everyone is going to watch their spending during slower economic times.

That slowness is a red flag for the mega-publisher, which says it’s “proactively making cost adjustments now.” One of those adjustments is the axing of some 600 EA employees across the globe. (Kotaku)

Last year Electronic Arts lost a “small” $195 million during the same time, not exactly a gold star on the financial records but it sure looks better than this loss. A few games may crumble under the economic pressures, Tiberium for example, but let us not forget the good times! EA posted some nice figures for Spore, Madden NFL 09, Warhammer: Age of Reckoning and Mercenaries 2: World in Flames.

So, they mixed a few sequels with a few new franchise hits and gave gamers some pretty hot titles for the year. Of course, hot titles in our hand do not always translate to positive revenue in theirs.

Bejeweled Twist Launched, Casualites RejoiceBejeweled Twist Launched, Casualites Rejoice

After four years of development, Popcap lit up Seattle Monday night with the launch of Bejeweled Twist sparing no expense to show off their new casual game. It took four years to complete but Popcap isn’t going to release a game until it’s perfect. You won’t play it until they believe it is a game their mom would love.

“Popcap builds games for people, not demographics,” says CEO David Roberts. At the launch the founders, John Vechey, Brian Fiete and Jason Kapalka talked about the casual game market while the “Gem Girls” walked around looking sexy and flashy. Roberts talked about the casual game industry and forecasts it growing to become an $8 billion market — not too shabby for USD $19.99 games.

Downloads of Bejeweled, of course, show no signs of stopping and Popcap explained that 40% of their revenue comes from the old concepts of “Diamond Mine.” Phil Spencer, Microsoft Game Studios’ General Manager, hopped on stage and explained how Microsoft saw Popcap’s vision in their Diamond Mine flash game and suggested a rename to Bejeweled, the founders hated the name but took the big companies suggestion on the change.

Since then, we’ve had many folks attempt to clone and replicate the success in Popcap’s flagship product. Complete with open bar, Gem Girls, camera flashes and glitter this game launch shows the growing casual games industry the great power and momentum of “simple” casual games.

Nothing about Bejeweled Twist is simple. The game play of Bejeweled Twist aggregates all the knowledge Popcap has acquired over the last seven years to design one blockbuster title. From classic Bejeweled to Chuzzle to Peggle, the game takes pieces of each successful title and combines the game play, sounds, graphics and modes into a product that will bring casual gaming to a new level. Bejeweled Twist is going to be the new bar to reach in the industry in terms of addictive game play and a unified casual vision.

Stay tuned for the full review as we get deep into the full features of Bejeweled Twist. Special thanks to Dale North from Destructoid for hanging out for some drinks during the after party.

February 2009: Dexter Game For iPhone and PCFebruary 2009: Dexter Game For iPhone and PC

As a huge fan of Showtime’s Dexter, we’re excited (afraid?) to hear they’re making a game in its image. We actually pay for an Amazon Unbox because we’re too cheap to buy Showtime for all their other shows. A Dexter game could be killer on the PC and iPhone.

Obviously the first problem to concern ourselves with is the franchise name, all too often we end up with ‘branded’ named games that produce awful results. It’s easy to get lost in the idea of making money on the name Dexter than putting in the time to a quality game release.

There is a high probability a Dexter game is going to suck, but we can hold up our hopes they do the franchise justice and create something scary but entertaining with a good storyline. How else can you represent a TV series in which the main character is a serial killer and he justifies his killings?

(Thanks, Joystiq)

Storage Solutions for Fall UpdateStorage Solutions for Fall Update

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)

Xbox 360 Fall Update Too Big For Diskless UsersXbox 360 Fall Update Too Big For Diskless Users

If you’ve got an Xbox 360 arcade edition or an older console without a hard disk, you’ll want to clear up at least 128MB of your flash card before powering on your console after the fall update hits. Wait, you’re flash disk isn’t 128MB in size? Oh oh.

Latest reports are stating that consumers that own a 360 without a hard disk, albeit a small group, will not be able to simply install the fall update as the rest of us because they don’t have enough disk capacity. What is Microsoft doing about that? Microsoft’s Larry Hryb says saying they will be “offering storage solutions” for such customers.

We’re wondering, are they going to actually ship people free hard disks? Perhaps a coupon for a larger flash card? Interesting indeed!

“The new Xbox experience will require 128MB of free space. A hard drive is recommended for the optimal experience, to take advantage of some new features, and to be able to enjoy the great movies, TV shows and games available on Xbox LIVE. While we expect the majority of consumers to download the New Xbox Experience without a problem, a small percentage of Xbox 360 owners do not have enough memory to accommodate the update. To help ensure all Xbox LIVE members are able to download the New Xbox Experience and enjoy its new features, Microsoft will be offering storage solutions to the Xbox LIVE community. We are not sharing details of this offering yet. Be sure to check xbox.com for more details in the coming weeks.” (1up)

It was really only a matter of time before the Xbox 360 out grew the fact that they allow consumers to roll with a diskless console. No other console limits you by having both a disk and diskless option; we know why they did it, but now it would seem their having some growing pains.

No doubt, the next Xbox 360 console will come complete with hard disk! Hopefully you were wise and got the bigger console complete with disk.

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.”

New Castlevania Title For 360 and PS3: 2D or 3D?New Castlevania Title For 360 and PS3: 2D or 3D?

The Castlevania series was born in Japan on September 26th back in 1986. That knowledge in hand, you can imagine the demographic of 30+ year old gamers who would kill to get an old school franchise title on a new graphic intensive console.

We’ve had many new Castlevania releases since 1986 including releases on the Nintendo DS in 2006 with more titles arriving with the Castlevania branding. However, we’ve not seen a true “full blown” Castlevania title in some time. As a retro style gamer, I’d love to hear news that this would be a 2D game with “next generation” graphics.

There are far too few really great 2D side scrolling platformers for this generation of consoles. Outside of Nintendo, most side scroller systems become “arcade” titles in XBLA or PSN. Over the last fifteen years we’ve had plenty of 3D games with jumping and crazy camera work. Lately, we’ve had some new titles arriving that are 2D platformers like Little Big Planet and the recently released Mega Man 9.

More than likely, Konami will follow the flow and design yet another old franchise with new 3D graphics. Given the demographic for this franchise it would almost seem like a selling point to jump back to a 2D world view.

What would you like? A 3D or 2D Castlevania title on the Xbox 360 and PlayStation 3?