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'Casual content' might account for only a small part of gaming industry's revenue
Monetisation of online games has been a hot topic for the past few years, fueled by the rise of the free-to-play business model and the undeniable accessibility of mobile gaming. At the Digital Game Monetization Summit in San Francisco, developers shared insights into the source of their revenue and recent development trends in social gaming. Rumble Entertainment CEO Greg Richardson argued that only 10% of the $50 billion spent on games last year was spent on "casual content" like social and mobile games. He believes that the tricks early Facebook and mobile games used to spread themselves virally may no longer work and that as a result, the future profit lies with people who self-identify as gamers. Online gaming website Kongregate revealed a detailed breakdown of monetisation and performance stats from its games, noting that its top games get the majority of their revenue came from people who spend $500 or more. Commitment was noted as the key to having successful game, with 84% of revenue coming from dedicated fans who played a game 50 times or more. [Thanks to Segun Adewumi for the tip!]
Shigeru Miyamoto admits he's a fan of Angry Birds, just like the rest of us
Mario and Zelda (amongst others) creator Shigeru Miyamoto was in Paris to promote the launch of the Nintendo 3DS as a guide in the Louvre. While company executives have previously dismissed and decried smartphone gaming, Miyamoto was asked about his favorite non-Nintendo game and for the first time, admitted that Angry Birds is his favorite. He said that he can tell Rovio is "having fun developing the game" and that it has a "very creative side," that was "inspiring us to try even harder, and create even more unexpected new things." Except for those moments when he steps into the hallway for a spot of pig-smashing, as you do.
Study: Average social gamer age is only 29 in the US
If you think that those silly social games like Farmville and Mafia Wars are full of teenagers, you're only half right. The average player of social games is actually younger than previously believed, according to a new study, but a little older than teenage: 29 in the US and 27 in the EU. That's an interesting conclusion, especially since the average gamer is actually a little older than that (s/he was 30 a few years ago and has been getting steadily older since then), and most people believe that social gamers on Facebook tend to skew even older. This survey by GamesIndustry.com, however, goes against that grain, and claims that while there are more females playing these games than males, they tend to be younger than expected. Peter Warman of that site says that the reason for this is that most such surveys don't poll any lower than age 18: "It is therefore not at all surprising that their average age is extraordinarily high ... Data from kids and teens is vital and should always be taken into account." If these surveys aren't representing anyone below age 18, then it's possible gamers, especially those playing social games on Facebook and elsewhere, are even younger than anyone's guessed previously.
World of Warcraft hits 11.5 million subscribers
It's been recently announced that the World of Warcraft has hit another milestone: a grand total of 11.5 million subscribers. This really comes as no surprise after the release of an expansion, especially one as widely hyped as Wrath of the Lich King which broke a few records of its own. I think it would be bigger news if they hadn't hit a couple of new milestones.Gamesindustry.biz has a quote from Senior VP of merchandising at GameStop Bob McKenzie, indicating that it's not just Wrath of the Lich King doing well. These numbers haven't spiked because of all of the returning customers, WoW is gaining plenty of new ones, too. The base WoW package and the World of Warcraft Battle Chest are still doing quite well. Better than last year, he specifies. So while those base package purchases are certainly fueled by the Wrath hype, it's bringing in new customers, not just the returning customers.WoW may not be the kind of game for every gamer out there, and the game isn't without its flaws. Despite that, it has proven over and over that it's by far one of the best games out there, and definitely the best of its genre. I don't expect it will be going away anytime soon.
Blizzard retains PC gaming dominance
As if in response to predictions of the beginning of the end, Blizzard's market dominance in US PC game sales was reaffirmed in late August through the NPD Group's research. In fact, World of Warcraft garnered three of the top spots on the PC game sales chart, with The Diablo Battle Chest and The Warcraft III Battle Chest thrown in for good measure, Gamesindustry.biz reports. While it could be argued that World of Warcraft's steady retail box sales silences all erroneous claims of the rise of a WoW-killer (oops... uttered the dreaded phrase), this doesn't seem to take into account all those Warhammer Online pre-orders placed in August. In that case, September might paint a different picture. But let's face it -- WoW's not going away anytime in the foreseeable future. And despite the knocks World of Warcraft takes from some MMO gamers, would you really want a world without Warcraft? One of Azeroth's millions of citizens? Check out our ongoing coverage of the World of Warcraft, and be sure to touch base with our sister site WoW Insider for all your Lich King needs!
Lord British likes WoW
Well, okay, maybe he doesn't *like* it like it, but Richard Garriott (aka Lord British) certainly appreciates the existence of the World of Warcraft. In an article I came across over at the WoW Vault on IGN, the creator of the Ultima series, and the Ultima Online MMO, discusses his feelings on the juggernaut that is WoW. The article quotes an interview with GamesIndustry.biz, where Garriott states, "We commonly get the question, is World of Warcraft a big competitor that might hurt our sales? It really turns out to be quite the opposite." He then goes on to comment that MMO players typically will only play a game or two at a time, but then move on after a year. I've been happily playing WoW since February of 2004, so I'm into my third year of the game, and nothing else has caught my eye in the MMO market. There are a couple of games on the horizon, but of the folks I'm playing WoW with, the majority have been around from the get-go. Are we just crotchety old-timers who won't admit that the average player only sticks around for a year? Is what Lord British says true? Did any of you ditch other MMO's to come to WoW, or have you ditched WoW for other MMO's after playing for a year?
Xbox 360 HD DVD price rumors: 199?
Gamesindustry.biz is reporting that is the price expected for the UK version of the Xbox 360 HD DVD add-on coming this holiday season. £199 GBP converts to 293 euros, and $376 (US). The Xbox 360 Core System recently dropped to £199 in the UK, while still retailing in the US for $299. The same source indicated there would be a bundle available for £375-£400 GBP, which would be slightly less than the £425 GBP 60GB HDMI-equipped Playstation 3 now delayed until next year in Europe. That £375 figure converts to 553 euros, and $708 US. However given the fact that UK prices have tended to be slightly higher than a straight-to-euro conversion, and the current $399 US/399€ pricing of the Xbox 360 Premium, if these rumors are accurate such a bundle would probably run $500-$550 US. The separate add-on drive carrying a price equivalent to an Xbox 360 Core System however would likely be a bitter pill to swallow for many Xbox 360 early adopters, even with two movies included in the package. Microsoft has not yet commented on these rumors, all we've managed to get out of them up to this point is that it "will be the cheapest HD DVD player on the market for consumers who already own an Xbox 360 console". We're hoping the $200 rumor is the right one, being an early adopter is bad enough without getting charged extra.
Wii will cost $200 say spectators
Nintendo Wii will launch at $200 in an attempt to undercut the competition, says an analyst at Merrill Lynch. An executive from SEGA goes further, suggesting that Wii will launch for under $200. This latest estimate sits in the middle of previous ones, but taken in the context of past console releases a $200 launch price wouldn't be out of character for Nintendo. The NES, SNES, Nintendo 64 and GameCube all launched at a price point of $200, so we wouldn't be surprised if Nintendo throws up their hands and says "why mess with tradition?"With the PS3's price confirmed, Nintendo's console is the last of the next-generation consoles to get a solid release price so it's natural that fans and analysts alike will continue the guessing game. As for the other type of price guessing game -- how much the Wii (PS3, Xbox 360) costs to make -- no-one has stepped up to the task just yet.[Via /.]
Warren Spector: Will the real future please stand up?
Back in November, Warren Spector caused something of a stir with his comments about the state of the games industry, including an aside slamming Grand Theft Auto. What Spector was really on about was the use of clichéd violence in mainstream gaming, and The Escapist has given him a soapbox to follow up on his speech from last year and elaborate.He asks an important question: what's in store for the future of gaming? "Depending on how you look at things, you can paint a picture of gaming's bright future of growing profits and importance, or one of doom and gloom - of irrelevance and stagnation. Either could be true. Which future is our real future? Will we go mainstream or marginal?"Gaming seems bound for the mainstream one way or another, but Spector addresses an overlooked possibility--that it will lose its mainstream appeal, and go back to the sidelines like so many media fads of the past have done. He outlines that gaming is at a crossroads at the moment, and the demands of a mainstream audience will cause game developers (and the industry as a whole) to make a series of crucial decisions in years to come. Gaming won't die, but it's easy to agree with this point: It's just that it's relatively easy for me to imagine scenarios where mainstream audiences get sick of us, sick of the product we offer them, sick of repetitive, seemingly-but-not-really interactive, emotion-free, slam-bang, U.S.-centric, urban, hip hop action games and alien invasion scenarios.Cliché-slamming and thought-provoking--it'll be interesting to see Spector's followup articles in future Escapist issues.
The top hundred game developers -- from Ancel to Zampella
If you're after a "who's who" of modern game development, then Next-Gen's "The Hot 100 Game Developers" list might just do the trick. An A-Z rundown of the 100 "most influential" developers, based mainly on studio success last year, it covers a number of well-known and lesser-known industry figures. Useful if you're trying to work out who to approach at GDC.Incidentally, the developer pictured right is Samantha Ryan, CEO of Monolith, who is also the only woman in this list--draw what conclusions you will.
Gaming startup aims to eliminate lag with $4m
Bigfoot Networks is a startup that's recently obtained $4 million in venture capital funding. Founded by MBA students, the company has a grand ambition--to eliminate lag in online gaming by a vague-sounding "Network Gaming Accelerator" card.The card will be on show at E3, where curious journos can fire piercing questions such as "So what does it actually do?", but until then we'll have to speculate. According to FORTUNE Small Business, the card "communicates with servers, downloading some of the processes that they perform online and allowing them to run faster". However, according to Bigfoot Networks' own white paper on lag, the majority of the bottlenecks involved in lag are client-side and server-side CPU limitations--not network latency.The paper's references to latency spikes and packet loss imply that Bigfoot Network's magic solution to lag might involve creating a dedicated network processor (offloading network-related load from the client CPU), allowing the TCP/IP stack to be specifically tuned for low, consistent latency. However, as Greg Costikyan points out, games are designed to allow for network transmission delays--it might only be a product that appeals to gamers for whom every millisecond counts.[Thanks, Probot]
A look at European developers
If you're interested in what's going on across the pond in terms of development, this GameDaily article is an interesting read. Despite a lot of focus on Japanese and American titles, it seems some European studios are coming up with the goods.The article looks at upcoming titles including Space Rangers 2 from Elemental Games and Black, the first-person shooter from Criterion. Much of the article is pimping the author's exclusive previews of the games, and it's by no means exhaustive, but there are some interesting titles on the way from both the UK and continental Europe that are worth keeping an eye out for.
More on Majesco's fall from grace
CNN are featuring a look at publisher Majesco's problems, after the company's decision last week to withdraw from the premium console market. It's a sad tale of ambition backfiring and promising titles failing to live up to expectations, with a very real impact on the company's revenue and stock.The CNN article points out that Midway, Atari and Acclaim have all been to the brink of bankruptcy and back, Majesco may still make it through. The company's move towards budget and handheld titles, as well as emerging markets such as casual and downloadable games, seems a wise one--we may even see another Psychonauts in amongst the budget bin.[Thanks, Ashcrotch]
