Tag: Industry News

Episode 236: Now With PandasEpisode 236: Now With Pandas

This week, Paul is not around, as Jonah Falcon and Jordan Lund discuss the latest news, which includes pandas. Lots and lots of pandas. That, and a Gaming History profile on David Crane.

The news this week includes:

  • World of Warcraft: Mists of Pandaria announced
  • Sony: April PSN outage has resulted in improved service
  • Deep Silver: “There is a clear technology gap
  • Starcraft II DOTA mod will remain free but monetized
  • “Literally, there’s three of us” on console Diablo III
  • Minecraft dev wins interim injunction over Scrolls name

With that is Reader Mail and the Queston of the Week: What was your favorite Atari 2600 game?

Nintendo Slashes Wii to $149.99Nintendo Slashes Wii to $149.99

Nintendo has announced that the Wii will receive a price drop from $199.99 to $149.99, in effect on May 15, while a new Wii bundle for $199.99 will feature a colored Wii, Mario Kart Wii and a Wii Wheel accessory of matching color.

Nintendo is also launching its own version of the Xbox 360 and PlayStation 3 bestselling line with its “Select” value line retailing at $19.99 each. The first games to be released under the budget line includes The Legend of Zelda: Twilight Princess, Animal Crossing: City Folk, and Mario Super Sluggers.

Sony, Next Big Software Company?Sony, Next Big Software Company?

Every day we’re hearing of a company running through a round of layoffs or going out of business, it’s really not a happy time. Sony is not immune to the economic troubles either. Sony is talking restructuring and that involves a potential head count reduction of 16,000 jobs due to plant closings.

floppyThis leaves Sony with some hard decisions. Restructuring can mean drastic changes that effect all their product lines. The PlayStation 3 isn’t currently a shining example of high profit margins. The console needs time to reduce its overall cost, chip sizes and bring profitability. Is it in danger?

“Sony’s not in a position to halt all domestic production but it has to do something that drastic,” said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management. “If it announces plans to move production overseas while keeping only planning and development functions in Japan, that would be a positive.” (gamestooge)

The yen is losing value in our global economy making it more difficult to export the product and build any type of profitability plan. “A source said this month the company will likely suffer an annual operating loss of about $1.1 billion, its first such loss in 14 years” (news.yahoo.com) All this noise is making CEO Howard Stringer contemplate Sony’s involvement as a “software only” company, making us recall the changes at SEGA to this same result.

The Financial Times reported Sony will unveil details of its restructuring steps on Wednesday or Thursday. It said Chief Executive Howard Stringer was meeting with resistance from some executives to shifting the company’s focus to software from hardware and cutting jobs in Japan. (news.yahoo.com)

Is this just a case of a fearful executive trying to lay plans for a more stable future? Software is easier to develop, pays for itself quickly and becomes pure profit as it ages. Hardware requires constant upkeep at manufacturing facilities, chip reductions and a boat load of quality planning for first shipment. Would Sony go full software?

Let’s face it, Sony isn’t SEGA, they’ve been developing hardware for consumers since anyone can remember and they’ve been doing it with quality and market penetration. It seems absurd to think they’d forgo hardware designs in replacement of a full software solution to the problem. In addition, Sony has already invested a large amount of cash into seeing PS3 through it’s 10-year plan and letting that die now is realizing a huge loss on investment.

If Sony pushes through the economic and maintenance course, the PS3 will become highly profitable, much like the PS2 last generation (with a slower ramp up for sales). Even if they break even after ten years it seems a lot better than throwing all the effort away.

Perhaps Howard Stringer is talking “software” for the next generation home console? You think Sony will create a PlayStation 4?

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

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.