Category: Industry News

Will Sony Reduce Prices and Heat with 45nm Chips?Will Sony Reduce Prices and Heat with 45nm Chips?

Reportedly we’re going to see smaller 45 nanometer cell processors in 2009 which leads to similar cost savings as we saw in the Xbox 360 hardware. Cost savings appear on the manufacturing side, of course, along with less power consumed by the processor leading to less heat generated by the console.

The Xbox 360 was able to benefit from chip reduction when for stability and overall heat issues, although the stability is still out for debate at the moment. The concept is fairly simple to understand; heat causes problems in closed systems with few fans and a high degree of complex components. Reduce the heat means reducing the overall need to cool and get air flow into the hot little box.

Console hardware is owned by a broad audience, not all of which understand technology and its ability to boil an egg. Consumers toss consoles and their power supplies in closed cases within their entertainment system and restrict air flow further. Any reduction in heat is a good thing for the console developer.

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Distributed Game Development Using ContractorsDistributed Game Development Using Contractors

Gamers around the world have noticed a large trend in the video game industry in the last 15 years, massive growth with massive projects and unbelievable costs, goals and sales. We’ve seen the impossible become achievable in epic projects like World of Warcraft and huge sales figures from Halo 3 but we’ve also seen game titles fall down in a burning wreck.

Each studio tries to beat the next studio with crisp realistic graphics, real time physics engines, life-like explosions all with huge costs. Does it all sound familiar? If you’re a movie buff you’ve probably seen movie studios cranking out the same style of movie, high computer graphic effects with talented high priced actors making longer and longer films.

The only big difference? A game studio hires most of their talent for full time positions and then has to figure out what to do with them when the project ends. Perhaps this explains Microsoft’s effort to remove game studios like Ensemble, Bungie and FASA, it’s all too much to handle when a high budget project ships and time frees up in the studio.

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Little Big Planet – Release Date: October 21Little Big Planet – Release Date: October 21

If there is one time this year to pickup a PlayStation 3, it’s going ot be on October 21st when Sackboy jumps onto the scene with Little Big Planet. You don’t have to be a casual gamer to have a desire to play Little Big Planet and we’re sure to see that in upcoming reviews.

The question really comes down to, will Little Big Planet move consoles off the shelf? In theory, had the console been more reasonably price, you’d probably get a huge pop in sales. As it stands, you’re asking customers to spend above and beyond on a console just to play a 2D-Style platformer. No matter how fun the product is, and it will probably be fun in epic proportions, John Q. Public isn’t going to run out and drop large bills for the game.

Proof of that can be seen in the huge sales increase when Microsoft dropped their pricing structure. Gamers who were not current generation compatible ran out to pickup the console and the shelves went empty. No doubt Little Big Planet will move a few consoles, for those on the edge of PS3 readiness… but it won’t be long lived and it won’t be as epic as this title will.

Popcap’s Feeding Frenzy 2 on Xbox LIVE ArcadePopcap’s Feeding Frenzy 2 on Xbox LIVE Arcade

The place to be, this week, is Xbox Live Arcade (XBLA) as Popcap’s now released Feeding Frenzy 2 on the 360 platform. Xbox Live Arcade has been the go to place for awesome new content brought in high definition on both shrink wrapped box games along with classic casual titles.

Not into casual games? Perhaps your spouse or children are into them! If you’ve got an Xbox 360 and continually consider it a “big boys hardcore console” it’s time to change your perspective because that’s old world thinking. Microsoft, together with Popcap, plans to change how people game on the Xbox 360 console system.

This isn’t Popcap’s first title, many may remember Heavy Weapon on the Xbox 360. This sure won’t be the last!

Read on for full press release details!

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EA and Take-Two Stock Falls FastEA and Take-Two Stock Falls Fast

It’s official, EA has given up their talks with Take-Two and, as a result, the stock of both companies is falling like a stone. While gamers may cheer knowing the Grand Theft Auto and 2K Sports product lines will continue to compete with EA products, share holders are doing a WTF?

Take-Two has had its share of financial difficulties, but nothing shakes up a stock more than a break in discussions when the words acquisition have been spoken. It causes uncertainty and lack of understanding on the part of the game industry and share holders. EA’s stock dropped 2.7% upon opening this morning but has begun to stablize as it’s clear EA isn’t in any financial peril from this breakup in discussion.

Take-Two’s stock, however, is in epic free fall with a 25% decline since the discussions ended. One theory is that, “is taking a huge beating as everyone and their mother tries desperately to sell the shares the figured EA was going to to buy.” (kotaku)

As the game industry gets more competitive, builds bigger bank-roll and becomes a staple entertainment icon there is always more business savvy people getting into the game trying to make a fast buck. In this case, the shareholders obviously aren’t pushing for Take-Two’s future decisions or product launches — this is the reaction of business folks trying to make money.

There is huge risk with block buster 100-million dollar titles and all the crazy hype involved with some of the biggest games in history. They break sales records, smoke box-office numbers and bring new gamers into the industry but it’s all at risk when money gets involved. One bad move and a company making a title like GTA can find themselves in financial peril.

With risk comes reward, but failure is always sneaking up around the corner so watch out!

GTA IV: 46th Best-Selling Game In AugustGTA IV: 46th Best-Selling Game In August

Like a washed up superstar, Grand Theft Auto IV continues to drop in NPD figures. This Axl Rose of video games came on strong and sputtered out into oblivion with barely a notice, leaving the spotlight and all hype behind it. This drastic fall may hurt any negotiations “behind closed doors” with Electronic Arts and their constant attempts to take over Take-Two.

Prior to the release of GTA IV we, in our gaming podcast, predicted a huge launch would up the anti against the bids on Take-Two from EA but things didn’t work out exactly as we expected. Although the game has sold 8.5-million units, it might not add any new bargaining power to the back door negotiations.

A game company is only as good as their games. A hit title which dies out quick helps financially guide the future of the company; technically the future isn’t so bright. With the title quickly falling off the top game sales charts we may never see it hit record sales figures to match that of smaller titles. Having one hot title every four years that “breaks records” for a week isn’t a strong weapon against a low bid from a larger publisher.

While EA may not have any record setting “one week” sales titles yet, they do have a consistently strong set of titles which stick on the charts for months with newer titles arriving to take their spot when they fade. The same can be said for a few other notable publishers, Activision and Ubisoft. To survive in the hot game industry, especially with market downturns, one must have a cycle of great games to publish throughout the year consistently year-over-year in order to provide evidence of their financial stability.

Assuming the bid won’t raise for GTA IV, where does that leave Take-Two? Perhaps Take-Two is better off under the umbrella of Electronic Arts after all. The waters are getting more hostile in the industry as companies compete for gamers attention with 100-million dollar titles and casual games and game consoles (read: Wii) start to build a whole new none-gamer-style momentum.

Is Take-Two better off under the EA brand?

Xbox 360 Price Cut Leads To 100-Percent Sales IncreaseXbox 360 Price Cut Leads To 100-Percent Sales Increase

Why release a single block buster game with a two week pop when you can simply lower the price of your console and boost sales by 100%? That’s a question Sony may be asking themselves right now, as Metal Gear Solid 4‘s hype may have lasted years but the sales and console unit sale boots lasted a month.

Gamers show how they feel about costly consoles with their wallet. With 100% increases in sales, it’s clear that many gamers have been holding out from the “next-generation” of consoles because the price was too high. Now, Microsoft can report huge sales numbers this quarter with a special thanks to their price cut. Imagine the sales boost the PlayStation 3 would have if it was competitive in price?

Microsoft could have kept the savings of manufacturing costs to themselves but they chose to pass savings onto the consumers. The increase in unit sales means more households own the product and newly released games will probably see larger spikes now that people have invested in the 360 console.

End result, developers will want to produce games for the Xbox 360 because they’ve got a larger audience and publishers will be less likely to pick Sony as an exclusive because the 360‘s got sway in the market. It might not be a Wii in total sales records but it’s not half bad!

(Thanks, gamasutra)

Toy’s R Us Find’s Wii ProfitableToy’s R Us Find’s Wii Profitable

The success of the Nintendo console, the Wii, has proven to change the industry in many new and creative ways including reinvigorating slow product sales at Toys R Us. “The company went from a loss of $42 million at the same time last year to a profit of $13 million for the three months ended August 2nd,” says Gamasutra who spoke with CEO Gerald Storch.

Revenue was up 6.3%, in part, thanks to the Nintendo and its hot moving Wii and Wii Fit products. While Nintendo struggles to supply enough units for the strong demand, Toys R Us has no problem emptying their stores of any hardware they receive.

Months after the Wii launch we witnessed parents waiting in lines before the store opens just to see if they had Wii’s arrive for the opening. Although we’re sure it was a hassle to answer the phones with the typical response, “no, we’ve got no Wii’s in stock,” the long term plan has proven successful.

Have you finally managed to get yourself a Wii? Did you pick it up at Toys R Us?

Ensemble Studios To Close, Halo Wars Future Not In QuestionEnsemble Studios To Close, Halo Wars Future Not In Question

Ensemble Studios, owned and operated by Microsoft or, Microsoft Games Studios, has been targed to be dissolved. All employees will find new homes, a large quantity will start a new studio and continue maintaining the later released Halo Wars franchise.

Microsoft has chosen to close the studio as part of their growth plan of Microsoft Games Studios much like FASA was closed in the past. The difference, there is a new landing point for Halo Wars unlike the uncertain future of Shadowrun.

Commenting on the reason for the closure, Microsoft said, “This was a fiscally rooted decision that keeps MGS on its growth path. While the decision to dissolve Ensemble was not an easy one, Microsoft is working to place as many Ensemble employees who do not move to the newly formed studio into open positions within Microsoft as possible.” (gamespot)

Ensemble Studio’s folks will continue to work with Microsoft and will continue to support Halo Wars after its launch. It is important to stress their statement of continuing to support Halo Wars, there is no need to think the project will be done half-assed or without pride as the project will live on with a different studio name.

The only question is… what is causing Microsoft to close down studios with actively working real franchise projects? FASA went down, Bungie was let go on their own and now Ensemble Studios? There has to be something going on here… idea?

Five Dollars Gets You 55 Original Rock Band SongsFive Dollars Gets You 55 Original Rock Band Songs

If you’re into Rock Band and love the songs you’ve played, you may want to migrate them into Rock Band 2, correct? For the price of 400 Microsoft points ($4.99) you’re now able to download an export “patch” to allow exporting of 55 Rock Band songs into the next version of Rock Band.

There are a total of 58 songs in Rock Band, you can export 55 of them with the patch, left out (perhaps due to licensing issues) will be: Iron Maiden’s “Run to the Hills”, “Paranoid” by Black Sabbath, and Metallica’s “Enter Sandman.”

For five dollars this isn’t a bad deal, definitely worthwhile if you’re looking to have a huge library of rocking songs for Rock Band 2.

Today, we’ve learned the PlayStation 3 will get the same export feature as DLC, if you’re into the PS3 and plan to get Rock Band 2 you’re in luck. Also included in the PS3 patch, you’ll now have the ability to use your Guitar Hero 3 Les Paul Guitar with Rock Band. Excellent news.

(Thanks, 1up)