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Small Games Make Big WavesSmall Games Make Big Waves

February 22, 2009| schommer| 0 Comment| 11:24 am

The game industry is doing “okay” in this bad economic time compared to other industries. Primarily, Nintendo is rocking the house with their games, hand-held’s and consoles while mobile developers are showing some great successes in the industry. Many success stories in our industry are based on small titles, downloadable games of the more “casual” style while a few larger titles are experiencing slower than expected sales trends.

wiiware We’ve mentioned this in the past, but the tough economy gives many smaller developers great opportunities for success. While big publishers struggle to look good in the eyes of the investor, tiny developers can produce quality titles for minimal cash investment and time to market. Ten years ago, smaller developers tried to compete with the big boys making larger titles, cloning successful titles or simply asking investors to put it on the line for their game. Today, developers can create a small iphone app, a cute WiiWare title or exploit the XNA efforts of Microsoft for Xbox Live Arcade and actually have a chance.

There are still challenges with these smaller developers when working in the WiiWare and XBLA publishing channels, your game marketing and promotion becomes highly reliant on Nintendo, Microsoft or Sony for PSN. Tom Prata, senior director of Nintendo of America talked to Gamespot about this issue:

“Finally, there’s the problem of promotion. It’s not enough to make a great game if nobody notices it. Prata specifically said Nintendo will be devoting more resources to support the promotion and development of WiiWare games in the future.” (gamespot)

Of course, in the world of smaller game titles and downloadable casual games, you’re going to be at risk of finding a lot of “shovelware” — products that are only released to make a quick dime, often based on some license or popular theme/character. The great game titles will, hopefully, rise to the top and show themselves off amongst all the wanna-be money makers.

Those smaller developers putting a huge passion into their titles actually have a chance in this new industry trend. Game makers, internationally, now have a chance to grasp a small piece of the industry and make their dreams come true. The core audience may see this as a trend of noisly low quality titles, but I believe the industry needs this change to grow a new generation of developers based on niche interests.

While many can wait for their next release of Madden the rest of us will continue to spend a little money to see what the future innovators are going to be bringing to the table.

Sony, What Doesn’t Kill Them Makes Them StrongerSony, What Doesn’t Kill Them Makes Them Stronger

February 10, 2009| schommer| 0 Comment| 11:09 am

David Reeves, Sony Europe’s President said, “we simply have to suffer a little” when talking about the PS3, Europe and the competition. He was talking specifically about Sony’s loss of market share, mind-share and overall performance in the latest competitive console arena. While Sony’s president dismisses Nintendo as in a separate market, David Reeves said, “we’ve learned from Nintendo how to grow the market and move from hand-held device to device – they’ve done it brilliantly.”

Buster Douglas Takes Down Mike Tyson What Sony may be dealing with is the fact that they’re not top dog in the latest battle for consoles. Europe has taken to the PlayStation 3 better than the United States and they’ve got plenty of fans in the region. There has been a recent upside to it all, some light at the end of the tunnel:

“PS3 games sales are up 53% and there’s a healthy 1.1m pre-order book for Killzone 2, the first of a new batch of IPs that Sony will be counting on.” (guardian.co.uk)

Although it’s reported the PSP says are down 15% and PS2 software sales are down 51%, at least the PlayStation 3 is filling in the gap for some of those losses. At some point you’d expect the PlayStation 2 to decline, gamers are probably migrating over to the new hardware.

They’ve got some things to be proud of:

PlayStation Network increases revenues by 200% in 2008
55% of all PlayStation owners are on PSN
17.5 million PSN subscribers
53% rise in software sales on PS3
Won HD format war

Unfortunately PS3 sales were down last quarter by about 9%, perhaps a response to the harsh economic times. And, of course, the fact that Sony’s VP’s are constantly defending their position in the market is a bit disconcerting. As David Reeves said:

“It’s like Ali v Foreman – go eight or nine rounds and let him punch himself out. We’re still standing, we’re still profitable and there’s a lot of fight in us. I don’t say we will land a knockout blow, but we’re there and we’re fighting.” (guardian.co.uk)

Sony is playing the defensive, guarding themselves against the punches of the competition. Nintendo making headlines for sales, Microsoft coming out of nowhere to try to build market share, while Sony holds out for the tenth round to win it in the end? We’re not yet sure if it’s Ali vs. Foreman or if Microsoft is the next Buster Douglas.

(Thanks, Guardian)

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

January 22, 2009| schommer| 0 Comment| 2:00 pm

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.

floppy This 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?

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.

TD Gaming Podcast 101: A Case of HubrisTD Gaming Podcast 101: A Case of Hubris

December 17, 2008| schommer| 0 Comment| 4:07 pm

This weeks gaming podcast rains on a lot of parades, talking about the Sony PS3 and its issues in the market, Microsoft’s scratch disk conspiracy and ugly sales figures for some games. This weeks news includes:

Sony takes a battering in the press (again)
Microsoft knew of the 360 scratched disks all along
Penny Arcade Slams Home
Little Big Planet misses top 20 in November

This weeks gaming history and flashback cover some religious games. This week we look into the history of Wisdom Tree and Konami’s game Noah’s Ark from 1992. The show is a bit late this week because we were without power from Thursday night until late Monday night, four days without power is humbling.

We’re also asking folks what would be on their holiday wish list if you could have any game or gadget of your dreams. Maybe a hot RPG, or sweet new console, retro-remakes or something entirely different!

Microsoft To Indulge on Hype at E3 2009Microsoft To Indulge on Hype at E3 2009

December 8, 2008| schommer| 0 Comment| 2:59 pm

This year’s E3 should be interesting as we head back to the no holds barred approach to gaming conferences. While E3 tried to go all PG for the last few years, it’s time to get back to the serious business of hype-o-rama. Microsoft’s on board with it and plans to “break the bank” in terms of hypesville.

Microsoft Game Studio’s producer Phil Spencer said:

“[It’s] very exciting, because there’s a lot of stuff on the docket and maybe we’ll break the bank a little bit and talk about things that are further out, which will hopefully get the community excited.”

Microsoft continues to hammer home big announcements at the E3 events even while in the ho-hum lull of the past few E3 events. Last year they nailed Sony with the Final Fantasy XIII announcement and hyped up the New Xbox Experience. What are they going to pull out this year now that we’ve seen Gears of War 2 and have a pulse on some of their Halo ideas?

They’re talking about hyping games further down the pipeline, perhaps to keep people jazzed about what the future holds even in these economic down times. It’s important to keep gamers focused on what is to arrive on the 360 so they don’t sway towards the opposing consoles in moments of doubt.

Of course, this begs the question, will Sony pull out even more hype? Will Nintendo continue to give mediocre showings with “I told you so” sprinkled in their message? Only time will tell.

(Thanks, Eurogamer)

PlayStation 3, March 2009 Price Drop RumorPlayStation 3, March 2009 Price Drop Rumor

November 25, 2008| schommer| 0 Comment| 3:13 pm

With so many people wishing Sony would cut the PS3 price to something more reasonable, it’s no big surprise we see constant rumors about potential “price cuts.” This time, a March 2009 rumor “supposedly” came out of the Sony Annual Briefing in London where a butt ton of information was “rumored” to be leaked.

The anonymous source is running around with a bunch of neat rumors, such as a LittleBigPlanet release on the PSP but the one that may hit home most with gamers is price cutting. The PS3 has been around for a few years now and hasn’t budged on the price tag; they’ve had fire sales on obsolete products (smaller disk drives mainly) but no official drops.

Sony won’t comment on speculation, of course, but we’re sure they want to catch Mr. Anonymous from hiding in their meetings and giving away their information… if it is real. D+Pad published the rumor-mongers message saying the “SCEE will be getting more competitive in price from March 2009 onwards.”

Easter would be a fine time for a price cut, if the speculation is real. This upcoming holiday would have made the most sense, to consumers, but Sony apparently has no plans to reduce the price around the time their sales will be increasing anyway. As the PlayStation 3 is doing okay in PAL territories Sony is relying on them, it would seem, to kick up the numbers and show Microsoft they’re not the only second-place game in town.

The Wii continues to dominate and we’re sure a PS3 price drop won’t impact Nintendo’s sales strategy or gamers decisions on one console versus the other as a price drop wouldn’t bring it to a competitive Wii price.

What is your magic number? What price would you buy a PS3 at if you don’t own one already. For us? Drop it a bit and throw in a free LittleBigPlanet.

PlayStation 3 Online Community Matches 360PlayStation 3 Online Community Matches 360

November 19, 2008| schommer| 0 Comment| 4:26 pm

Although PlayStation 3 is still third in worldwide sales, behind the Xbox 360 by about 5-million units, the PS3 community services now have as many online gamers as Xbox 360 says Sony. Sony posted on their blog saying, “with 14 million active accounts and 273 million pieces of content downloaded, we know that you’re thirsting for this digital entertainment.”

Although US sales of the 360 are killing the PS3, the community membership does give gamers a reason to get online with the PS3. Nobody wants to buy into a console that has very few active online games or an easy way to find friends (*cough* Wii). Having 14-million users helps them bridge the sales gap by building gamer confidence. Social networking is the new term; gamers want to socialize with each other online and with their consoles.

Microsoft recently announced their 14-million subscriber base and continue to update folks when they hit big milestones. The main difference, LIVE is a subscription system — those 14-million gamers are also paying for the service (we’re not sure if silver memberships count in that figure) and this means income for Microsoft while Sony does their service for free.

Although Microsoft is making money on their service, no doubt Sony will bypass their total membership because it has no cost barriers to play. The biggest cost barrier to get on Sony’s network is the PS3 itself and many gamers hold out for price drops which aren’t coming anytime soon (so says Sony). However, building a larger community on a free network allows Sony to siphon gamers to buy downloadable content, games, music, movies and all the goodies that go with these services.

It seems a better idea to triple your audience with a free service knowing a large amount of “hardcore gamers” attach themselves to the easy to buy content on said service. So, is it better to make US $50.00 a year on half the population or give triple that population an opportunity to spend more money on content?

“Thanks to all of you, PS3’s momentum is stronger than ever. There are nearly 17 million PS3 systems around the world, and in the United States, PS3 hardware sales are up nearly 100 percent from where we were at this time last year. Software sales have tripled from a year ago. Yes, we’re proud about everything we’ve accomplished, and we’re even more psyched about where we’re going with our holiday software lineup” (playstation.com)

Eventually gamers may have access to Sony’s Home project, which could raise the community figures and give Xbox 360 something less to brag about. Although, we’re sure Sony would rather be boasting “number one” console again, at least they’ve finally got a win on their side because 14-million users is only the beginning for them.

Plus, it’s hard to argue free.

TD Gaming Podcast 95: Bad Judgement of MMOsTD Gaming Podcast 95: Bad Judgement of MMOs

November 4, 2008| schommer| 0 Comment| 11:27 pm

This weeks gaming podcast covers two reviews, including LittleBigPlanet and Guitar Hero: World Tour. We also touch on a bit of retro NES history with ExciteBike. This weeks gaming news includes:

Nintendo to release old games with new controls
Analysts negative on Electronic Arts
Sony files patent for a motion sensing controller
THQ dismantles studios

We’re also stepping on our soap box and asking if MMO’s are too risky for consumers who buy into MMO’s that fail in under a year.