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Archive for the ‘Games’ Category

Activision unhappy with lack of multiplayer revenue

July 5th, 2010

Cliff Riseborough

In an interview with the Financial Times (account may be needed to read), Activision CEO Bobby Kotick talked about being unhappy with the fact that Activision doesn’t make any money from Xbox Live subscriptions, despite it’s Call of Duty series being some of the most popular games on the service.

“We’ve heard that 60 per cent of [Microsoft’s] subscribers are principally on Live because of Call of Duty,” says Mr Kotick. “We don’t really participate financially in that income stream. We would really like to be able to provide much more value to those millions of players playing on Live, but it’s not our network.”

Since there isn’t much he (or the company) can do about that, he mused a bit about perhaps making the PC market a bigger piece of the company’s focus.

Mr Kotick sees an opportunity to break the consoles’ “walled gardens with new gamer-friendly PCs, designed to be plugged into the television. PCs have long been used for online play, but PC gaming remains niche when the games industry needs to widen its appeal.

“We have always been platform agnostic,” says Mr Kotick. “[Consoles] do a very good job of supporting the gamer. If we are going to broaden our audiences, we are going to need to have other devices.”

Activision will “very aggressively” support efforts by Dell and HP to connect PCs to TVs.

Now, on the surface this sounds great for PC gamers. Here we have the top guy at one of the biggest publishers speaking out in support of the platform. And yet, considering that it all started with an expression of frustration that Activision can’t monetize multiplayer on the console, one has to wonder what exactly is providing the motivation to looking back at the PC. Could it perhaps be to ‘provide much more value’ to PC gamers via some sort of subscription service for Activision titles, something that has been mused at before with stated desires to sell a subscription model Call of Duty?

Posted in Games

Tags: Activision, Bobby Kotick, Call of Duty, multiplayer revenue, Xbox Live

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More people still prefer discs to digital downloads

July 4th, 2010

Brad McGraw

In a new report by Ipsos MediaCT they found that 64% of gamers still prefer a physical disc than a digital download. MCV quoted:

“I believe the preference for physical discs amongst next gen gamers reflects the potential value they derive from the pre-owned market, which is holding up the preference for physical – this is unlike the music and film markets,” said Ipsos MediaCT director Ian Bramley.

“Physical games discs have a long and well-established history, which is a deep mindset to change – particularly when gamers build a physical collection as they fear losing digital versions. And in-store browsing is also important to buyers.”

What I would like to know is how many of the 1,000 gamers were Console only, PC only, or both. I think this is where a huge difference comes in. A larger portion of PC gamers are more into digital downloads than console gamers. Console gamers have been able to take more advantage of trade-ins and pre-owned than PC gamers, specially with DRM and registry requirements on PC games. So while I don’t doubt the numbers they are using, I just don’t think it means as much if they don’t categorize Console gamers and PC gamers separately.

Posted in Games

Tags: Console, digital downloads, gamers, PC

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EA Sports President Peter Moore defends Online Pass

June 28th, 2010

Cliff Riseborough

A short time ago, EA Sports announced a new initiative called Online Pass. What it entails is a one use code being included with every copy of an EA Sports console title. That code will unlock the majority of the multiplayer content, or some other major feature of the game, but can only be used once. So someone buying a used copy of the game will need to pony up the $10-$15 to obtain a code of their own.

EA Sports President Peter Moore talked about Online Pass during an interview with Kotaku.

"One thing I have to do, and it’s my job, and my development team’s job, and my marketing team’s job, is make you not want to trade the game in," Moore said.

Moore talked about hoping that making multiplayer a more ‘value added’ feature might encourage more people to really give online play a try. By EA’s own numbers, while Madden 10 is still popular months after the close of the last NFL season, 350,000 Madden owners logged in to multiplayer once and never returned.

"From our perspective, [it's] conditioning you to punch a code in, to get you going, get some digital content, and conditioning you to look at digital content as a value-add to the game experience itself," Moore said.

Moore also asked people to keep in mind that while multiplayer is free for any new purchaser, it isn’t free for EA to maintain the server network needed to keep it in place for those million plus still actively playing Madden 10 online.

Finally, he talked about his view that a lot of those active in reading games media are new players, and they certainly understand the value of purchasing new vs. used.

"I read everything you write, and then i read everything that they write about what you write underneath, and I will say you have the overwhelming majority of people that are buying new," Moore told me. "And those guys are actually vocal – this is me just saying what I read – against people who buy used. They recognize the business model implications of new versus used used. Whilst I’m not sure they’re angry, they absolutely look at what’s going on in the marketplace and understand totally what it is we’re doing."

Whether or not you agree with the direction EA Sports is taking with their Online Pass program, at least they’re willing to try to explain it to people.

Posted in Games

Tags: EA Sports, one time multiplayer code, Online Pass, Peter Moore

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Analyst says used game market is a significant drain on software sales

June 25th, 2010

Cliff Riseborough

According to Cowen Group analyst Doug Creutz, a large share of the blame for currently weak game sales can be placed on second hand game purchases.

From Gamasutra :

“In our view, GameStop has exploited the negligible difference between the value propositions of new and used games to capture a significant portion of the video game value chain,” says Cowen Group analyst Doug Creutz.

The biggest part of the market currently seeing slower sales of new games is consoles, specifically the 360 and PS3. Creutz puts part of the blame on the high price points for console titles, but the growth of used games sales is described as a significant factor.

His recommendations? More game options that need to be purchased after a used copy is bought as extra DLC. He actually suggests publishers go further in to ‘cordoning off’ more game content from used players that has to be added later on, since there’s nothing Gamestop can do to prevent it.

I find myself wondering if this might actually have a different affect, as Gamestop would eventually be forced to lower used game prices to reflect the fact that other content would also have to be purchased from the publisher by anyone grabbing a copy.

Also suggested is a more aggressive shift towards digital distribution, a market that Gamestop obviously can’t really be a factor in when it comes to used sales.

How will gamers respond? “We believe that consumers are likely to grudgingly accept a revised and evolving pricing strategy that reflects the value they receive outside of and in addition to the traditional single-player offline experience,” predicts Creutz.

“Against a backdrop of our expectation for improving growth in videogame software sales through the remainder of 2010, we believe that the evolution of these new pricing strategies give investors additional reason to become more constructive on the third party video game publishers,” he concludes.

Posted in Games

Tags: Cowen Group, Doug Creutz, Gamestop, used game sales

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Microsoft indicates possible company push for PC gaming

June 23rd, 2010

Cliff Riseborough

Through the closing of Age of Empires developers Ensemble Studios to the focus on content for the Xbox 360, Microsoft has not exactly been at the forefront of pushing the PC forward as a gaming platform in recent years. That may be about to change.

Kotaku has obtained a copy of an internal Microsoft document that indicates a possible shift towards PC gaming. In a Q&A that’s part of this document, Microsoft addresses whether Fable III being brought to the PC platform is the beginning of a change in business philosophy.

Q: Does "Fable III" on Windows signal a larger reinvestment by Microsoft in PC gaming? How is this different from the previous times you’ve announced a reinvestment in PC gaming and not quite come through with a robust offering?

There definitely have been previous announcements of a new PC push by Microsoft that have turned out to be nothing but the sound of crickets.

A: In terms of revenue, Windows is far and away the largest gaming platform in the world, so it’s an incredibly important part of Microsoft’s business. From core games like "Fable III" to casual, social and Facebook titles, more gaming happens on Windows than anywhere else. Windows 7 is a world-class gaming platform, and you can bet Microsoft has a vested interest in using it as a platform for amazing first party content. "Fable III" on Windows as well as Xbox 360 this holiday is a great first step, and we’ll have more news for you later this summer.

So, Microsoft does acknowledge the profit potential of game releases on Windows PC’s. I wonder if maybe Fable III is being used as a bit of a test bed to see what the response is like to the PC version announcement?

Hopefully this isn’t just more empty words from Microsoft.

Posted in Games

Tags: Fable 3, Microsoft, new push to PC platform, PC gaming

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Kane & Lynch 2 Dog Days moves from Games for Windows Live to Steamworks

June 22nd, 2010

Cliff Riseborough

The first game was infamous for two reasons…the Jeff Gerstmann ratings scandal, and the fact that the Games for Windows Live implementation rendered the multiplayer an absolute mess.

The second game is already looking to perhaps avoid at least part of that, moving away from Games for Windows Live and towards implementation of Steamworks for multiplayer and DRM.

From PC Gamer :

The mode was the best part of K&L 1, but it was nearly impossible to play online due to GFWL’s crappiness. I asked IO Interactive game director Kim Krogh if I’d have the same experience this time around.

“No, for that reason. We’re using Steamworks,” he said.

Steamworks integration means that K&L 2 will gain access to that program’s multiplayer matchmaking and Steam Cloud features. It also means that the game will have to be run through the Steam client.

Posted in Games

Tags: Eidos, Games for Windows Live, Kane & Lynch 2, Steamworks

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Kotick wants subscription based Call of Duty

June 20th, 2010

Cliff Riseborough

In an interview with the Wall Street Journal, Activision CEO Bobby Kotick was asked what immediate change he would make to the company. That led to the following exchange :

WSJ: If you could snap your fingers, and instantly make one change in your company, what would it be, and why?

Mr. Kotick: I would have Call of Duty be an online subscription service tomorrow. When you think about what the audience’s interests are and how you could really satisfy bigger audiences with more inspired, creative opportunities, I would love to see us have an online Call of Duty world. I think our players would just have so much of a more compelling experience.

WSJ: Is that coming?

Mr. Kotick: Hopefully.

WSJ: Are the customers ready for it?

Mr. Kotick: I think our audiences are clamoring for it. If you look at what they’re playing on Xbox Live today, we’ve had 1.7 billion hours of multiplayer play on Live. I think we could do a lot more to really satisfy the interests of the customers. I think we could create so many things, and make the game even more fun to play. We haven’t really had a chance to do that yet, so that would be my snap of the fingers.

Left unclear is whether such a setup would mean customers buying the full game and also paying a monthly fee, or if it would be an entirely fee-based system. The latter could actually make more sense than annual incarnations of the franchise being bought for full price, depending on price point. And since this is the company charging $15 for packs of 5 maps (2 of them recycled CoD 4 content), I wouldn’t be too optimistic of a decent rate.

However, I haven’t exactly seen reams of gamers clamouring for such a set up as Kotick claims, and I would have to be convinced of how it would provide a more compelling experience.

(The original WSJ article is behind a paywall and accessible to subscribers only. However, Google is your friend. Thanks also to VG247).

Posted in Games

Tags: Activision, Bobby Kotick, Call of Duty, subscription based, Wall Street Journal

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Valve bringing Portal 2 cross platform co-op for PS3, PC and Mac

June 18th, 2010

Cliff Riseborough

It’s something many companies have talked about doing. The original concept for Games for Windows Live was to allow play vs. Xbox gamers using Xbox Live. And the latest to step up to the plate and give console/PC/Mac cross-platform gaming a try are Valve.

With the announcement at E3 that Valve was bringing Portal 2 with Steamworks integration to the PS3, the rumours immediately started appearing on gaming sites that this meant cross-platform play would be part of the game as well. According to gaming site TheKartel, Valve has confirmed those rumours.

While co-op gameplay wasn’t shown, Valve developer Erik Johnson did reveal one new bit of info. Valve is planning to allow PS3 players play with PC/Mac players.

When questioned on the cross-compatibility between Steamworks and Steam, specifically playing co-op on a computer with someone on a PS3, he said it was "something the team is gunning for." We also confirmed with Valve developer Mike Dunkle who said "The plan is you will be able to play between console and PC."

If this first step ends with good results, it increases the chance that Valve (and perhaps other developers) will be more open to cross-platform options in the future.

For Xbox 360 owners, we did inquire whether this was a possibility as well. Johnson commented that there are no current plans to bring Steamworks over to the Xbox 360, as ultimately the ball is in Microsoft’s court.

Again, success here will probably increase Microsoft’s willingness to reconsider their position at a later date.

Posted in Games

Tags: cross platform play, Macintosh, PC, Portal 2, PS3, Steamworks, Valve

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Game publishers worry about rush in to digital publishing

June 17th, 2010

Cliff Riseborough

Nobody denies that the digital market is increasingly the way forward in the games industry, particularly in the PC realm. However, according to MCV, some publishers are beginning to worry that the market is currently being oversaturated with a glut of digital content all at once.

Is there a big enough market that it can be profitable for everyone? How big a risk is there right now of releases being lost in the flood? Is the onrush perhaps a threat to overwhelm the average consumer?

“I am really concerned about that,” said THQ’s VP of core games Danny Bilson. “Our strategy is based on the fact that Taco Bell has games on Facebook. It seems every commercial venture has a game on Facebook now.

EA Sports’ senior VP of worldwide development Andrew Wilson added: “I think it is always a risk when moving into a new space of getting there before your consumer does. The corporate graveyard is filled with companies that moved into a new field before the consumer got there, and then someone comes up five years later with exactly the same thing and makes a gazillion dollars.

“The preference now is not to buy lots and lots of games, but to spend more money on fewer games. In fiscally challenging times, maybe a gamer won’t buy three games anymore, maybe they’ll buy two and spend the other £30 on extendable content, on experiences they know they love rather than taking the risk on another product.”

Sega West president Mike Hayes said: “The challenge for us is not if the market is big enough, but how we adapt. We need to be cautious. It is exciting and there is a huge opportunity, but we have to be very smart in how we approach it.”

One thing that seems likely is that we will start to see fewer games being released at once, both due to market saturation and costs. Also, this year has seen AAA releases more spread out than normal, rather than the usual flood of games in the Christmas rush and during the summer while the rest of the year is a barren wasteland. Perhaps that will prove to be more of a trend than an anomaly.

The games business is already changing with the shift in to the digital realm. However, it’s pretty clear that the digital realm is not some magical panacea that will serve as a cure all, and it comes with a whole new set of potential problems.

Posted in Games

Tags: digital distribution, Digital download, games industry concerns, market saturation

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Best Buy planning to sell used games in US

June 16th, 2010

Cliff Riseborough

Best Buy has announced that they will begin to buy & sell used games in all US stores later this summer. From Gamespot :

While some Best Buy stores will have dedicated trade-in desks, most locations will handle game buybacks at the customer service desk. Customers will receive their compensation in the form of a gift card good for anything in the store, and any used games purchased will be covered by the store’s return policy.

Once the program starts, customers will be able to use the Best Buy website buyback program to get estimates of likely trade in value for their games before going in to the store and trading it in. That program can also be used to figure trade value of various types of electronic hardware.

Best Buy is just the latest major retailer to try to chip in to Gamestop’s chokehold on the used games market, with Wal-Mart, Toys R Us and Amazon already trying to carve out a piece of the market.

Posted in Games

Tags: Best Buy, buyback program, used game sales

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