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Rumor: PS4 in Japan later this year, will cost more than $400
The PlayStation 4 – which is currently expected to be announced on February 20 – will be available later on this year in both Japan and the US and will carry a hefty price, according to a translation of a report found in respected Japanese newspaper Asahi Shimbun. The Japanese version, says the translated report, will cost "greater than 40,000 yen," which means it will be more than $400 there.Asahi adds there will be a rush to meet sales demands on both sides of the world, but the paper doesn't specify a US price; however, the PlayStation 3 launched at $500 when it came to North America, and cost 49,980 yen in Japan, around $535. So Asahi's report suggests that whatever the next generation PlayStation's price is, it will likely be slightly cheaper than the PS3 was at launch.There's also no mention of a European launch, and the PS3's launch was indeed delayed in Europe by hardware shortages. Hopefully, Sony will clear all this up on February 20.
App Rewards Club reports on what going free can do for developers
App Rewards Club is an app and service put together by a few iOS developers to help their fellow app devs with user discovery on the App Store. Like the Free App a Day service, App Rewards Club highlights free apps every day, which benefits users because they can grab apps for free, and then benefits developers because they can grab users to monetize off of. App Rewards Club also offers a monetization service, teaming developers up with other promotions that let users earn rewards in apps. The club has been keeping a tally of how it all works when various apps go free, and they've posted a very interesting report over on the official blog, talking about that very subject. What's perhaps most interesting is just how organic the App Store is: The apps that ARC saw do best with a free period spent exactly zero marketing dollars on their sale, and were instead just propelled by being featured on the App Store or mentioned in the press. As ARC says, "some apps have a natural propensity to get attention and move downloads without getting a big marketer involved." That's a fascinating result, and it's likely one that Apple will be thrilled to hear, given that the App Store was designed to be a relatively open marketplace, where individual developers can compete up alongside much larger companies like EA and Activision. This study finds that a marketing budget doesn't matter so much as just how "sticky" the actual app is. Elsewhere, the company also found that switching from paid to free, while having an (obvious) negative immediate effect on revenue, will actually raise the average number of purchases after going back to paid. It's not by much, and downloads go very high when flipping over to free, but developers looking for a spike in app interest can definitely consider a temporary free giveaway to do so. There's a lot of interesting information here, and the company says it still has a lot to learn going forward. But the main takeaway here seems to be that, for now, growth on the App Store is still fairly organic. Some apps can do well when they get attention, regardless of how much money they spent to get it.
Apple and IKEA, two similar retail stories
There's a fascinating writeup over at Asymco about Apple's retail strategy as compared with another very popular retail chain: IKEA. On the surface, the two brands seem dissimilar. One is a popular computer maker turned mobile device innovator, while the other is a simple and low-cost furniture maker from Sweden. But when you look at the retail scale and strategy of both companies, the similarities become apparent. Both go for high profit margins and striking design decisions, and both brands go from design to factory to retail in one big all-in-one solution. It turns out the sales growths are similar too, with a few important differences. IKEA stores are obviously much bigger than Apple Stores, more than 30 times the size. And Apple, because it sells such expensive items, is able to claim a much higher dollars-spent-per-visitor figure, way higher than IKEA's US$27 per visitor to its stores. But on the other hand, IKEA's sales are solid, stable, and well-earned. Furniture is not a market known for big sweeping changes or volatile pricing. Apple, on the other hand, has earned its standing relatively quickly. While its products are certainly awesome, there's always a chance another company could come along with some big innovations and steal those sales away. There's a lot to be learned in the similarities and differences between these two companies -- both have put together very successful strategies for retail, but done so in very different ways.
Sprint: iPhone customers are "more profitable" than others
In an interview with Mobile World Live, Sprint's CEO Dan Hesse says that iPhone users are some of the best cellphone users to have around. Not only are iPhone customers "more profitable" (in that they just plain spend more money, given the price of the iPhone itself), but Hesse says iPhone users are also more loyal to Sprint (with "a lower level of churn"), and they actually use "less data on average than a high-end 4G Android device." That combination of more money coming in with fewer services going out means that iPhone customers are apparently just as premium as Sprint as the devices those customers use. That's probably why Hesse spent $15 billion last year to get the phone on his network in the first place. Given how happy he seems to be about the whole situation, it must have been worth it. [via Ars Technica & BGR]
Digital Chocolate picks up $12 million in funding round, mostly from Intel
Digital Chocolate is one of the biggest iPhone developers that no one talks about much, but maybe that'll change now that the company has picked up a whopping $12 million in venture capital. The company behind a huge amount of iOS titles of all kinds (with more than 100 million mobile downloads total) has raised a total of $54 million so far, and most of this latest round of funding came from Intel, along with a few other venture capital firms. Digital Chocolate seems like a rarity among many App Store developers. While much of the movement on the App Store has been hit-driven, Digital Chocolate instead uses a shotgun approach, delivering lots of different apps that reach their audiences in a variety of different ways. Not all companies can pull a strategy like that off, but whatever Digital Chocolate is doing obviously seems to be working.
Deal documents show Ngmoco's 50 million downloads, $10m losses in 2009
Stuart Dredge of MobileEntertainment did some digging into the paperwork behind the Ngmoco sale, and came back with some interesting figures about the company's financials. Turns out that rumored $403 million purchase price is true -- kind of. The deal includes a $100 million bonus, if Ngmoco keeps its numbers up to certain standards. The actual payment now is $303 million, which consists of $146 million in common stocks, $27 million in DeNA investments, and $128 million cash. That cash payment, Dredge reports, is about a third of DeNA's total cash balance, so this is a significant deal for both companies. Meanwhile, the documents state that Ngmoco has seen 50 million downloads on the App Store as of last month, and has 12 million users on the Plus+ network across 119 games (as a comparison, OpenFeint announced 25 million users this year, although of course that service is spread across many more titles). And perhaps most interesting, Ngmoco is growing, but has spent a lot of money for that growth. In 2008, its revenues were only $484,000, and it lost $2.46 million. 2009 went better on the revenue side, jumping up to $3.16 million, but the company's losses came out to a whopping $10.89 million. Pretty amazing that financials like that led to a sale of $403 million -- both Ngmoco and DeNA must expect a lot from this partnership in the future.
Humble Indie Bundle moving towards $1 million, still being pirated
The Humble Indie Bundle that we posted about the other day is doing quite well -- they've raised almost US$800,000 by selling five indie games (playable on Mac, Linux, and Windows) for pay-what-you-will. In fact, they've done so well that they've added another game into the mix -- you'll also get Samorost 2 if you pick up the bundle. And a little birdie pointed out to us that if you pause their trailer video at about 1:16, they'll be adding another bonus to the mix if they reach a full million dollars raised. [Spoiler: They say they'll actually release the source code of Gish, Lugaru, and Penumbra Overture.] Is there any bad news about this giveaway? Well yes: people are still pirating it. The developers claim that 25% of the bundle downloads are "pirated" -- people who didn't pay anything at all for it. They didn't secure the link, authenticate the downloads, or protect the game with DRM (and they didn't ask users to pay any more than one cent for it), and people are still just rolling up and downloading the games for free. Unfortunately, that doesn't solve any arguments -- those for DRM would say that real security would prevent that, and those against DRM would claim that it won't. At any rate, those are five great indie games that are worth your money -- if you downloaded them for free, put a few bucks in the pot.
Average iPad app price is $1 more than iPhone apps
Here's some more interesting stats about app pricing. We've heard pricing average stats before, including that the average app price seems to be hovering right around three dollars. But a firm in the Netherlands has done some more research into current iPad and iPhone app prices, and discovered that while iPhone apps average out at $3.87 (slightly higher than most estimates, but still in that $3 range), iPad apps are actually hitting an average of $4.67, almost a dollar more than iPhone versions. That's both good and bad news for developers -- while it does mean that iPad apps are releasing and selling at higher prices (something most developers believe should be the case, given the amount of work and design that goes into iPad apps versus their smaller-screen cousins), those prices aren't that much higher. Apple specifically priced their iPad apps at $9.99 after selling their iPhone game at $4.99, and if they wanted that to be the early standard for the iPad, it doesn't quite appear the plan is working out. Still, an extra buck is better than nothing, and as always, developers should sell their apps for what they think they're worth anyway. The firm, Distimo, also says that 80% of iPad apps are paid (compared to the iPhone's 73%), and medical and financial applications are the most expensive, averaging out at $42.11 and $18.48, way higher than the iPhone's $10.74 and $5.74 averages for the same categories. So while the prices may differ, there's no questions that developers are charging more (and getting more) for applications on the iPad.
Content company raises $2 million to develop for iPad
Thinking Screen Media is a content platform developer, putting together a content delivery system designed to bring information to "millions of connected screens worldwide." Now, it seems that many of those screens might be iPads. TechCrunch reports that they've raised a whopping $2 million just to switch their development aim to the iPad. They currently have an iPad app up and running in the store, and they've got a number of other investment sources already. However, according to the report, this money is specifically for the iPad. Of course, in the larger scheme of things, this is small potatoes. A content channel is pretty useless unless it's delivering content that people actually want, and $2 million is loose change for some of the larger content companies. This is a significant investment in terms of its scope, though. Even a smaller company like this is heavily investing in the iPad and Apple's platform as a major part of their business.
Man buys virtual space station for 330k real dollars
Welcome back to Joystiq's Flip This House, finding you the best deals in gaming real estate! This week, we're looking at a doozy of a fixer-upper: it's a beautiful space station called the Crystal Palace, with multiple fine amenities, including four bio-domes (full of alien species to hunt), Trade and Revival Terminals, a working auctioneer, and the universe-famous Stahlsteiner's bar. In case you haven't figured it out yet, it's a virtual place, and did we mention the asking price? 330,000 real world dollars. That's what MMO Planet Calypso (formerly Entropia Universe) player "Buzz Erik Lightyear" paid to "own" an in-game hub. As you can see above, he paid 3.3 million "Project Entropia Dollars" for the virtual real estate, and those PED were purchased with real dollars -- 330k of them. What does he get for his money? The station is one of the nicer setups in the virtual universe, and since players pay PED to shop, hunt, and hang out there, "Erik" can set tax rates on the payments, and turn fake bucks back into real cash. We're not sure how much real cash (depends on where he sets the rates, and that will affect the place's popularity as well), but it'll probably be a while before he can ... flip... this... house! [Thanks, Kreyg]
Tapulous making a million a month off the App Store
Well, even with rampant piracy, review craziness, and that funky approval process, it's good to hear that someone can still make a truckload of cash on the App Store. According to Reuters, that someone is Tapulous, who is apparently making almost a million dollars a month thanks to twenty million downloads of their Tap Tap Revenge game. We recently talked to Andrew Lacy on the release of said game back in October, and he told us that the game's in-app purchase features (you get the game for cheap, and then have a chance to buy lots of extra music to play in packs and bundles) would be the "first big test of in-app commerce at a much grander scale." Looks like the test was a success. Of course, there's not too many details on how exactly that million dollars comes in -- I'm sure there was a flurry of sales right around the release of the app (as press was dropping), and you'd expect them to be a little higher during the holidays (sales of video games usually are, no matter what platform you're talking about). So it's not completely proven that this kind of income is necessarily sustainable. But still, it's good to hear from the folks at Tapulous that someone can release a game and roll in the cash from Apple's platform.
There could be up to a million Chinese gold farmers
A new report on MMO gold farming claims that there are about 400,000 working in China on gold farming and trading, and that there could be as many as 500,000 to even a full million. Of course there's no way to tell exactly how many people are employed in the business (and the number almost certainly doesn't stay constant for long), but according to interviews and surveys done of business there, that's the number they've come up with. They also claim a $10 billion a year turnover, however, and that number seems way high, though remember that they're talking about all MMOs, not just World of Warcraft. The report has some other interesting information about how China does gold farming: there are a number of brokerages staffed by English speakers in the larger cities that handle the actual transaction, and then the farms themselves are usually outside the cities, where cheaper labor is available. Typical pay in the farms is about $140 a month plus food and board, working in about ten hour shifts, while pay is higher in the city-based brokerages. Most employees are younger guys, who play while drinking beer and smoking cigarettes, and lots of their ingame tasks are automated with custom-made and adapted software.
Activision doing well, Blizzard has spent $200M in upkeep on WoW
Activision Blizzard (the parent company of Blizzard Entertainment) held an Analyst's Day earlier this week (in which a bunch of stock analysts sit down to crunch numbers and predict the future), and they came out of it really well -- according to those in the know, Activision Blizzard is set to do very well in the future. Buoyed by Blizzard and their other big franchises (do we have to name them by now? Call of Duty, Guitar Hero, etc.), 99% of analysts give the stock a "Buy" or "Hold" rating, and many were impressed with what Activision told them about their releases in 2009.And we got another interesting insight into just what kind of money Blizzard is looking at -- they reported on the call that since 2004, they've spent $200 million on the upkeep of World of Warcraft alone. That includes things like payroll, customer support, and hardware updates, of which there have been plenty of those. $200 million does seem like a lot, but of course when you consider just how much revenue they've pulled in via subscriptions (ten million players paying up to $15 a month, though Blizzard has all kinds of different subscription plans around the world), $200 million over four years isn't all that much.We're told, though, that that money doesn't include any development costs (pre-release, and we're not sure if it includes patch/expansion development or not, either). And it certainly doesn't include Blizzard-wide costs, like their new HQ, or what they spend on advertising, promotion, and those big events held around the world. There's no question, however, that there's plenty of money coming both in and out of Blizzard's doors.
Xbox 360 price drop at select UK retailers
It seems that British gamers who are willing to shop around can get the Xbox 360 for quite a bit less than the manufacturer's suggested retail price. GamesIndustry.biz reports that discount wholesaler Makro is selling the Premium system for £199.99 (Regularly £279.99) and Joystiq tipster Joanthan pointed out that UK game store Play is selling the Core system for £149.99 (regularly £199.99). The retailer-specific price drops are not officially endorsed by Microsoft, who told GI.biz through a spokesperson that "Xbox does not control the retail price of the Xbox 360" and that "prices are set by retailers." This statement may seem a little laughable to readers in America, where game hardware prices are remarkably consistent across retailers. In contrast to other consumer electronics, where retailers constantly try to undercut each other on the same merchandise, stores that sell game systems are reluctant to lower the price for fear of being cut off by the manufacturers. Hence, the price of a game system comes down across the board only when the manufacturer decrees it. Nintendo got a slap on the wrist from the FTC for such price-fixing practices back in 1991, but the lesson doesn't seem to have stuck in today's market. If Wal-mart wants to sell me a system for less than Target, who's the system maker to tell them they can't?
50-percent of your iPhone purchase to pad Apple's wallet?
Sure, LG's KE850 Prada handset will set users back a cool $778, and the Google Switch just might pop in to make things a bit more interesting, but a recent research report has unveiled that Apple's sure-to-be-sold-out iPhone is a lean, mean, profit-generating machine nonetheless. While Apple's well-known for selling its iPods (and to a lesser extent, its Macs) for much, much more than it cost to manufacture, even we're a bit taken aback at how hard those corporate buyers must be workin' those suppliers on this one. According to iSuppli (no affiliation with Apple, of course), the 4GB iPhone will yield a "49.3 percent profit margin on each unit sold at the $499 retail price," while the 8GB rendition will kick back a 46.9-percent margin. You heard right, they're supposing the $499 mobile only costs Apple $245.83 to produce, while the 8GB flavor demands just $264.85. Of course, this isn't the first time a hot-selling product has been broken down by the numbers to prove just how ripped off we're all getting (if these numbers are to be trusted, that is) -- but hey, unless you've got the means to buy capacitors and LCD touchscreens by the boatload, you're probably stuck paying exactly what they ask. Plus if all this sudden competition gets a bit too heated, don't think Apple doesn't have any room to introduce a (highly desired) price drop.
Nintendo raises profit forecast....again
Nintendo's stock has been going up like ... like, um ... like Apple's stock! But not even the bookies could predict such a dominating performance (sorry, I just couldn't resist that link ... go Gators!), and as such, Nintendo has had to once again raises its profits forecast thanks to extremely strong game sales for both the Nintendo DS and the Wii. How much, you ask? One billion dollars. That's USD, folks.We also have a gem of a quote from one Edwin Merner, president of Atlantis Investment Research Corp. in Tokyo: "Nintendo is going like gangbusters, and the Wii consoles are selling like hotcakes." Gangbusters, huh? According to UrbanDictionary.com, a gangbuster is: "a sexual advance made by someone in an attempt to turn on another person." Hot, Edwin. Very hot.
Nintendo to launch 200 million dollar ad campaign
Nintendo has this nasty tendency to make money with their consoles, despite often being seen as the "loser" in the reputed console wars. Their stock holders are generally quite happy, especially in recent times, and believe it or not, Nintendo has a war chest of something like ten bazillion yen. Certainly a large R&D budget went into developing Wii technology, but everyone knows that the system is essentially a calculated risk. Nintendo needs to push its new brainchild, and it needs to push it hard; thus the chest springs open yet again.A recent Bloomberg article states that Nintendo will launch a year-long, $200 million ad campaign for the Wii. Further, 80% of that money will be solely devoted to marketing toward non-gamers, attempting to expand their market into the coveted (and excuse the generalization) "old people and women" demographic. That's a whole heck of a lot of money to get the word out ... be sure to do your part and invite your baby boomer neighbors for a quick session of Wii Sports. [via Joystiq]
A quick glance at MacBook sleeve cases
Now that laptop case manufacturers have had a few weeks to react to the new MacBook, they've started to release an array of sleeves that fit perfectly around the MacBook's refined curves. There's something for everyone here, whether you want a sleeve with a little more padding than usual, a sleeve that makes a colorful statement or one that keeps your nether regions nice and cool. Read on for the round-up.
