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Star Wars: The Old Republic announces economic adjustments
Economic upheaval is coming to the galaxy in Star Wars: The Old Republic's patch 1.1.5. A series of rumors and announcements from major organizations across the galaxy have been published on the official site in order to give players some insight into the upcoming changes. From all of the delicious lore tidbits, we find out that the speeder manufacturer Korrealis is retiring its Sovereign, Prince, Baron, and Commander speeders, while the Tirsa Industrial Consortium has quietly removed its Prime model speeders from the market. As a result of this decision, all of the aforementioned models are now steeply discounted, so grab them while they last. Meanwhile, the Republic Senate's Committee on Transportation and Public Safety has decided to lower the cost of speeder licenses. Speeder purchase taxes, however, are being raised in response to this move. The Imperial Transportation Authority recently passed a similar law. To top it off, the Republic has recently come into possession of some previously Empire-owned purple color crystals, and both Republic and Empire merchants have some into possession of some very rare -- and very expensive -- white color crystals. Market speculators, start your engines; there's money to be made!
Japan to reduce rare earth consumption in response to China's export controls
Japan took another step toward lessening its rare earths dependence today, announcing plans to drastically reduce consumption levels in response to China's continued market dominance. Of particular concern to the Japanese government is dysprosium -- a rare earth used in the production of high-powered magnets. China, which accounts for about 95 percent of the world's rare earth supply, has been tightening export controls on the metal in recent months, sending global prices skyward. With its domestic supplies dwindling, Japan has now committed to reducing its dysprosium consumption by 30 percent over the next few years, as part of a $65 million initiative. Much of that money will presumably go toward helping manufacturers develop alternative production and recycling methods, as some already have. Toyota, for instance, has found a way to produce hybrid and electric vehicles without using dysprosium, while Mitsubishi, Panasonic and TDK are currently looking at ways to extract the metal from old air conditioners. If effective, the government's program would reduce domestic consumption by between 200 and 400 tonnes per year.
EA reveals SWTOR subscription and sales numbers, beats financial predictions [Updated]
It looks like Star Wars: The Old Republic didn't let its daddy down, as EA has reported much better sales than expected for the December quarter, largely thanks to the runaway sales of the new MMO title (as well as many of EA's other heavy-hitters). The company ended up earning an adjusted $344 million for a total net loss of $205 million, which isn't too shabby if you consider how much money just went into the development and launch of The Old Republic. Perhaps most interestingly to players, however, is the fact that EA has reported sales of more than 2 million units of The Old Republic with about 1.7 million subscribers. Those are the highest (and the hardest) numbers we've heard so far. EA's Chief Financial Advisor, Eric Brown, stated in an interview that EA managed to pull in more SWTOR subscribers than the studio had initially anticipated. He added that at launch, the studio was able to add a great number of users per server courtesy of some technical improvements. If you're economically minded and want to get the full, dirty, stock market details, just click past the link below. [Thanks to Gabriel for the tip!] [Update: Darth Hater has compiled some additional TOR-related statistics and Q&A from today's EA earnings call: "2,000,000+ copies sold, 40% sold through Origin; 1,700,000+ active subscribers, 1 million concurrent." The company also notes that "Active subscribers means anyone paying OR in their trial period. MOST of those 1.7m are paying at this point."]
HP India to expand web access with Vayu Internet Device
The Internet is gradually seeping its way into homes across India, but there are many within the country who remain too poor to actually purchase a PC. Fortunately, HP India has just developed new technology known as the Vayu Internet Device, or VInD, that could dramatically lessen this gap. According to the Times of India, the company's new set top box will essentially allow users to access web content via traditional TVs, using standard remotes, rather than keyboards or mice. All they'd have to do is plug it in, subscribe to an internet service, and turn on their in-home televisions. The idea, of course, is to deepen web penetration across lower-income populations, as well as among the elderly, who may have difficulties manipulating more complex computer equipment. No word yet on when the VInD could hit the market, but the Times of India has a more comprehensive rundown, at the source link below.
Video game sales drop 21 percent in US as kids remember there's an outdoors
Normally the holidays are good to video game sales. This year, though, not so much. According to NPD game sales in December were down 21 percent over the same time last year, to just $3.99 billion. Hardware sales took an even larger nosedive, plummeting 28 percent, and accessories dropped 27 points. For the full year, video game sales were down 8 percent compared with 2010, and even digital sales suffered. Downloadable content, in app purchases, subscriptions and other non-physical media gaming sales totaled between $16.3 and $16.6 billion -- down 2 percent from last year. And, in case you're interested, the best selling game of the year was Call of Duty: Modern Warfare 3 -- shocker![Knife smeared with blood and young man yelling via Shutterstock]
Funcom tops Oslo stock exchange, invests heavily in The Secret World
Funcom's future is looking pretty bright according to a report at Views and News from Norway. The site says the development firm behind Anarchy Online, Age of Conan, and The Secret World topped the Oslo stock exchange last year and saw its share price rise by 227%. AoC has "sold well and still generates income for Funcom," says the report, but the real cause for optimism is the positive buzz surrounding The Secret World. Funcom head honcho Trond Arne Aas says that the firm has received "very good feedback" from both testers and journalists, and it's a good thing since the company absorbed a third quarter loss despite its share price increase. "We're investing heavily in The Secret World now, therefore the loss," Aas explained. "But we're hoping for major income after the launch in April."
Strategy Analytics: China leapfrogs US to become world's top smartphone market
The winds of tech consumerism are changing course. More specifically, they're heading east. According to the latest Q3 figures from Strategy Analytics, China is now the world's largest smartphone market by volume, overtaking the US for the first time. According to the research firm, smartphone shipments in China reached a record high of 23.9 million units during the third quarter of this year, up 58 percent from Q2. Compare that with the US, which saw shipments decline by seven percent over the quarter, to 23.3 million units. The Boston-based firm attributed much of China's growth to a spike in cheaper, Android-based handsets from companies like ZTE, as well as a flowering of subsidized higher-end models, like the iPhone. Nokia leads the way within the People's Republic, accounting for 28 percent of all quarterly shipments, followed by Samsung, with an 18 percent share. Find more quotes and charts in the press release after the break, or hit up the source link below for the full report.
MindArk announces Planet Calypso land grab
MindArk's Planet Calypso is certainly one of the most unique virtual worlds out there, due in large part to the fact that the game's real estate is bought, sold, and traded for real-world cash. Land management, however, has generally been an activity for the ludicrously rich, with some properties costing as much as 500,000 USD. MindArk looks to change that, however, by introducing a whopping 60,000 new plots of land (each measuring at 100 square meters) that can be bought for the (relatively) low price of 100 USD. Each deed that a player purchases "entitles the holder to a share of the 50% planet partner Gross Revenue generated by Planet Calypso." So if you've got a few hundred bucks to blow on virtual real estate and want a piece of the pie, head on over to the official site and sign up.
The Daily Grind: Are we witnessing the bursting of a gaming bubble?
The last few weeks have cast a dark shadow over the MMO gaming industry. At a time when MMOs release seemingly every other day and big blockbusters are just over the horizon, MMO companies are canceling titles, shelving games, cutting back, changing models, and laying off staff. CCP Games dropped employees and slowed its development pace; NCsoft and GamersFirst followed suit, though with assurances that their games would proceed as usual. In the last few days alone, we saw Gameforge let go both developers and titles, TurnOut halt development on Earth Eternal, and both LEGO Universe and Troy Online announce impending shutdowns. What do you think? Are we dealing with a "gaming bubble" on the verge of bursting? Did MMOs become too popular too fast, such that the industry is now bloated and unsustainable? Is a culling of the MMO herd a necessary evil to improve the overall quality of MMOs? Or is this flurry of layoffs and closures merely a coincidence, a temporary downsizing due to end soon? Every morning, the Massively bloggers probe the minds of their readers with deep, thought-provoking questions about that most serious of topics: massively online gaming. We crave your opinions, so grab your caffeinated beverage of choice and chime in on today's Daily Grind!
ChangYou reports record revenue, registered accounts
With all the layoffs that seem to be going around the MMO industry as of late, it's about time we hear some good news from a developer. ChangYou, known in North America primarily for its quirky title Zentia and the bizarrely named Duke of Mount Deer, reports a 119 million USD revenue for its third fiscal quarter. The company's amount of registered users rose as well, with the company citing 159 million current gamers inhabiting ChangYou's titles. CEO Tao Wang is understandably pleased with these results and says that "we believe these results once again demonstrate our ability to understand and fulfill gamers' needs and showcase our content development and game operation strengths." For the full details, check out the article over at Gamasutra.
Massively Exclusive: WindSlayer 2 dev diary gets economic
Now that we've gotten a look at the basics of WindSlayer 2's melee and ranged classes, it's time to delve into what makes the game's economy tick. So if you're a shrewd businessman, head on past the cut to the dev diary and find out how you can play the market in WindSlayer 2.
Major Chinese supplier halts rare earths production in attempt to boost prices
With prices sliding and uncertainty rising, China's biggest producer of rare earth minerals has suddenly decided to suspend all operations, in a move that could strain already tense relations with the West. Baotou Steel, a miner, refiner and vendor located in Inner Mongolia, announced the decision in a statement today, explaining that it's simply looking to "balance supply and demand" in response to a prolonged price slump within China. Since June, in fact, prices of neodymium oxide and europium oxide have declined by 34 and 35 percent, respectively, with many analysts attributing the drop to mounting economic uncertainty in the US and Europe. Earlier this year, the Chinese government announced plans to merge or close some 35 rare earths producers within the mineral-rich northern region of Inner Mongolia, effectively crowning Baotou Steel as the industry's epicenter. Now, of course, that's all changed, though the shutdown will only last for one month. It's also worth noting that China still exerts rather considerable influence upon the market, accounting for roughly 97 percent of all production of rare earths -- a group of 17 minerals used to manufacture gadgets like cellphones, flat-screen TVs and EV batteries, among others. And while new deposits and market projections may point to a transforming landscape, it's unlikely that Chinese influence will wane anytime soon -- much to the chagrin of Western free trade advocates.
Lost Pages of Taborea: Fixing the economy
I've got one more article concerning the current state of Runes of Magic's economy. To round out my trilogy, I'm taking a look at actual fixes to what could be seen as a broken mechanic. If the current inflation is indeed seen as something that is broken and could quickly damage the playability in RoM, then the fixes would likely be band-aids. It would take too long to rework an entire system filled with thousands of items, each affecting the other. The fix would also need to be implemented quickly. That puts some limitations on our speculations. What does the fix need to concentrate on? The problem seems boil down to the excess amounts of gold that can be hoarded -- hundreds and hundreds of millions can be saved up. It's also possible for high-level, well-geared players to accumulate gold rather quickly. In this week's Lost Pages of Taborea, I want to take a look at gold sinks (including one Frogster is testing), gold-caps, and some other ways to tame the economy.
AT&T asks court to dismiss lawsuits filed by Sprint and C Spire Wireless
Well, look at Ma Bell now, wishing it'd all just go away. Tied up in lawsuits, the company has filed motions to dismiss the two complaints brought by Sprint and C Spire Wireless (formerly Cellular South), which seek to block AT&T's acquisition of T-Mobile. In the filings, it's argued that the two providers represent their own interests, rather than that of the public. AT&T further reveals that C Spire had pursued private negotiations prior to the lawsuit, where the regional provider agreed to support the merger "if AT&T would agree not to engage in facilities-based competition in Mississippi." Ma Bell goes on to state, "This inappropriate proposal confirms that what Cellular South fears is competition, not lack of competition." Given the latest maneuver (which smacks heavily of PR spin), there's no doubt that lawyers for Sprint and C Spire will have a bit of homework for the weekend.
Cellular South files antitrust lawsuit against AT&T over proposed T-Mobile takeover
Sprint and Uncle Sam aren't the only ones taking issue with AT&T's proposed acquisition of T-Mobile, because Cellular South has a bone to pick, as well. Yesterday, the provider filed a lawsuit against AT&T in a DC federal court, charging that its $39 billion merger with T-Mobile would violate US antitrust laws. "The merger of AT&T and T-Mobile is anti-competitive, and will result in consumers facing higher prices, less innovation, fewer choices and reduced competition," Cellular South said in a complaint. The company went on to argue that legal evaluation of the merger must incorporate the perspectives of smaller, regional carriers who, like Cellular South, will "find it harder to secure both wireless devices at competitive prices and times and nationwide roaming." An AT&T spokesman declined to comment on the case, but you can find more details about it at the source link below, or in the full press release, after the break.
EVE Online dev blog hints at new economic datastream
The latest EVE Online dev blog isn't for the faint of heart, or perhaps more accurately, it's not for those who feel suddenly drowsy when confronted with charts, graphs, and economic technobabble. The piece is penned by Dr. Eyjolfur Gudmundsson, CCP's resident economist and an expert on all things related to New Eden's ever-changing marketplace. To make a long story short, CCP is getting ready to take the wraps off a new datastream that will "give EVE players access to historical time series on items sold in the main EVE market hubs." What does that mean? In a nutshell, "more data, more knowledge, more power to the pod pilots of New Eden." The final presentation format for the data dump has yet to be decided, but the initial test run is available in your choice of files types (CSV or SQL). You can read more specifics at the official EVE website.
The Soapbox: Subs and cash shops - Two great tastes that taste awful together
Disclaimer: The Soapbox column is entirely the opinion of this week's writer and does not necessarily reflect the views of Massively as a whole. If you're afraid of opinions other than your own, you might want to skip this column. Hoo boy, The Secret World. On the one hand, I was really looking forward to it. On the other hand, it's now joined the likes of EVE Online, pretty much every Sony Online Entertainment title ever made, Star Trek Online, Champions Online, and Funcom's own Age of Conan in my personal double-dipping doghouse. Yeah, The Secret World is going to have a subscription model (hooray) and a cash shop (boo, hiss, and zomgwtf). This should surprise no one, really, since game industry devs have been going all Gordon Gekko on us for a while now, but it was nonetheless a disappointing reveal on several levels. Equally disappointing are the folks who defend the subscription-plus-cash-shop model and erroneously refer to it as an example of consumer-friendly choice.
CCP cancels EVE's Quarterly Economic Newsletters
EVE Online is often lauded for its complex player-run economy, which functions so like a real world economy that CCP even hired its own lead economist Dr. Eyjólfur Guðmundsson to analyse it. Dr Eyjo's findings are normally released four times per year in his Quarterly Economic Newsletter (QEN), detailing everything from subscription numbers and popular ships to price changes on the market. The economic report for the fourth quarter of 2010 was released back in April, but at the time players weren't aware that this would be the last QEN ever to be released. In a new devblog yesterday, CCP Recurve posted the four main price indices normally contained in the QEN along with a graph of their development since October 2003. In response to player questions in the comments thread, Dr Eyjo revealed that the QENs for 2011 would not be published as usual. Instead, players will be getting monthly price index devblogs and the economic reports will likely be released once per year. This comes as bad news for players who were looking forward to finding out the economic impact of April's controversial nullsec anomaly changes. It may also mean that details like subscription numbers, population distributions and ISK generation will only be made public a maximum of once every year and that a current snapshot of those metrics may never be released.
WTO says China's rare earths export controls violate international rules, US applauds
China's monopolistic approach to the rare earths market is in violation of international trade regulations, according to a new ruling from the WTO. The verdict, issued yesterday, covers exports of nine minerals -- including zinc, manganese and magnesium -- that are used to produce a wide variety of smartphones, tablets and other gadgets. China, which controls about 95-percent of the world's rare earth supply, had previously argued that its export restrictions were needed to prevent overproduction and to conserve natural resources, but the WTO determined that the country was "unable to demonstrate" these environmental benefits. The investigation was originally spurred 18 months ago, after the US and other countries complained that China's quotas and tariffs unfairly favored domestic manufacturers, while distorting global prices. Experts expect Beijing to appeal the ruling, but this extra international pressure, combined with shifting supply chains and newfound deposits, may bring about the changes many have been calling for. If it doesn't, we'll all be stuck with corn phones.
Japanese scientists discover massive rare earth deposits, China bristles
China's control over the rare earths market hasn't faced too many challenges over the past few years, but that may be changing, thanks to a major discovery in Japan. Geologists say they've uncovered expansive new deposits of rare earth minerals, buried within a seabed some 20,000 feet below the Pacific Ocean surface. Research leader Yasuhiro Kato estimates that the deposits contain anywhere from 80 to 100 billion metric tons of rare earths, which, if commercially viable, could pose a serious threat to China's global hegemony. Supply shortages and aggressive Chinese export controls have combined to raise global prices in recent years, much to the chagrin of manufacturers who rely upon the metals to produce smartphones, tablets and a wide variety of other gadgets. But with analysts predicting a rare earth surplus within the next few years and Japan's mining industry now poised for a potential resurgence, the outlook is certainly looking a lot brighter.
