Justin Murray

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Stories By Justin Murray

  • THQ stock option investigation over

    Today seems to be a good day for video game publishers. First, Activision cleared up its stock option problems. Now THQ (THQI), the other video game company that had some 10-Q problems, is also out in the clear. Much to the relief of investors and THQ, the investigation into THQ's stock option plans was completed; happily for everyone, no fraud was found. The only inconsistency involved in an increase of $11 million in after-tax expenses. THQ is in the same situation as Activision. Both had stock option problems, both had that monkey pulled from their back and both are expected to have a good 2007. Their insistence on heavy Wii support is the reason. Let's hope we get some more good publisher news to add to these two.

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  • Activision looking up

    Activision (ATVI) hasn't been looking to bright these days from a shareholder point of view. While they're doing fine in terms of sales, their delayed 10-Q form due to stock option issues tends to worry investors. Now, Activision is starting to look up. In their recent 8-K filling, Activision placed on hold the concerns over the 10-Q. According to Activision, the stock option issue is in regards to the timing of the options, which may have fallen outside of SEC-allowed dates. The dates are mainly an issue with taxes and should be a minor issue at best (compared to other, bigger stock option issues like insider-trading that is). On top of the previously announced expectation that Activision will win big because of its strong support of the Wii, the easing of the tensions over stock options is a breath of fresh air to investors. Michael Pachter (the face of video game analysts) expects the company to do well in 2007. Seems that Activision is back on track.

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  • Mayo Clinic prescribes active games

    The Wii has been getting a lot of attention lately, mainly because of its different control mechanism. However, movement in gaming isn't a new concept, which hearkens to days such as the NES Power Pad. Now, exergaming is getting a supporter. The Mayo Clinic has released a report on the results of an exergaming study. Using a sedentary base, games that use a camera (such as EyeToy) and using a treadmill while gaming burned triple the amount of calories as sitting (five times over for more obese children); dance games registered the greatest calorie burn at six times the sitting rate. With this new study, Nintendo is likely to jump on and further promote the health benefits of playing the Wii. Pulling children away from video games is a difficult task these days. While the Wii will unlikely burn the fat like Dance Dance Revolution would, they can add a bit to the marketing pamphlet to say the Wii requires exercise (if used right) for something their kid would otherwise be vegetating to do. As if we needed any more reasons to buy a Wii. [Thanks, Ben]

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  • Gran Turismo creator on Motor Trend's Power List

    Motor Trend's 2007 Power List has been released and a surprised face has emerged on it -- the creator of Gran Turismo, Kazunori Yamauchi. The list chronicles those who make a significant impact on the automotive world. While many of us agree that Gran Turismo is an excellent title that did wonders in the realm of racing simulation, to hit the Power List is an incredible feat. Yamauchi secured a spot at #29, ahead of faces like the CEOs of Honda and Ferrari. The gaming world applauds you, Mr. Yamauchi, you've moved video games another step toward being a fully legitimized source of entertainment.

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  • Pachter gets one right; GameStop stock worth buying

    When video game analysts are mentioned, most of us who closely follow game news think of Michael Pachter. Like any analyst, their predictions aren't perfect. In fact, many abide by the 51% rule; if you get at least 51% of your predictions right, you're a good analyst. Back in November, Pachter predicted GameStop (GME) to ride a wave of consumer spending on video games. GameStop has released some information proving that buy a good one. GameStop has increased its already strong revenue outlook by $50 million and its Q4 earnings per share from $1.53-$1.59 to $1.58-$1.60. On top of other interesting sales promotions, GameStop certainly enjoyed the console launches and top-selling games like Gears of War immensely. GameStop is still looking like a strong buy with the strong Xbox 360, PS3 and Wii lineups for 2007 along with continuing PS2 support (though not everyone is in consensus on this). Since we're going to make some money off this one, we're going to forgive Pachter for some of his missed predictions.

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  • Gizmondo at CES?

    Industry shows are interesting beasts to witness. Frequently, we get clues about the future of gaming simply by looking at who decides to show up. There is one big surprise listing at the 2007 CES. According to the CES website, "It's all fun and games for AMD, Apex Digital, ATI, Dell, Logitech, Nvidia, Alienware, Microsoft, Sony and Gizmondo." This is a fairly odd sentiment given the company is now bankrupt and isn't making games anymore. Maybe the CES doesn't pay much attention to the news (or found it near-impossible to decipher) or Gizmondo pre-paid over a year ago and gets an empty booth. Gizmondo doesn't seem to be dying a graceful death. Stories like the Bo Stefan Eriksson story keep cropping up. Maybe the empty booth at the 2007 CES will be the dénouement of this pathetic riches-to-rags story; or maybe a huge surprise with the return of Gizmondo. [Thanks, Falafelkid]

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  • Xbox Live makes box office bombs profitable

    The primary reason a major movie production house makes a movie is to make a profit. Sure, some of those indie guys do it for the art, but they're not normally rolling in the big bucks. Now, Hollywood has a new way to boost an otherwise losing film into a winner. Xbox Live's downloadable HD service is doing a stand-up job in delivering the goods. Movies like Poseidon, which failed to make back the $160 million budget in the US (apparently Hollywood doesn't count international ticket sales), are getting some great support from Live. The reasoning behind the support is the HD version. Where other services like Amazon's Unbox not faring too well, Microsoft hit pay dirt with their HD downloads. When movies start pulling in profits on Xbox Live, Hollywood is certainly going to put more up on the service and possibly as soon as the regular versions hit the store shelves. With the confusion most consumers are having in the HD-DVD vs Blu-ray war, it would appear Xbox Live is going to be the big winner in the HD content war.

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  • Seagate - the answer to digital distribution?

    When thinking of gaming, the companies that make the storage medium are rarely thought of. Seagate, however, is offering up an interesting view of the future; a future that could effect the way we buy our games. According to Seagate, they are working on a technology that will drastically increase the amount of data we store on hard drives. Using a technology called heat-assisted magnetic recording (HAMR), the company expects to be able to shove 50 TB of information into a single square inch of drive space, or around 300 TB of information on a standard 3.5" drive. With that kind of space, the entire Library of Congress can be stored ... without any compression. The technology is expected to become commercially viable in a scant three years, by 2010. This means we may be seeing the Xbox 720 and PS4 being entirely based around digital distribution or fully installed console games, mostly eliminating ugly load times and noisy disk drives. With that kind of space, we may never have to worry about filling it up; 300 TB can hold around 6,144 50 GB Blu-ray disks (or the entire Library of PS through PS3 games that could ever be created with room to spare).

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  • Schilling talks Green Monster Games

    Curt Schilling, Boston Red Sox ace pitcher and warrior-nerd (term applied to us nerds who happen to be physically fit), is a well-known MMO fan. In fact, he is such a fan he decided to start his own company -- Green Monster Games -- just to make one of his own. Now, he is giving us a little more details. In an interview with the Escapist, Schilling explained the inner workings of his company and a little bit of his vision. In an indirect crack at EA, Schilling explained he is building his company with the employee in mind; he is offering 100% insurance and matching 401k, a pair of oddities in many businesses. He states that even with Todd McFarlane and R.A. Salvatore on the team, he won't simply bank on their names and wants to make a game that appeals to everyone. Schilling is certainly on the right track. A major key to making a great game is making sure your employees are happy. Building a Mordor-style slave camp doesn't help the quality of games, or the bottom line. Hopefully Schilling's employment strategies pay off with a good game; we'd be more than willing to support it.

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  • Best of the rest: Justin's picks

    Company of Heroes (PC)Bringing the most gritty and realistic view of World War 2 yet, Company of Heroes managed to give the glut of WW2 game made over the past decade a new breath of life. Company of Heroes managed to build a RTS that didn't focus on traditional resource gathering but on capturing and holding strategic points. The atmosphere of the game is, bar none, the best produced, ranging from fully destructable environments to excellent sound production.

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  • Artistic NES up for sale

    The NES, billed as the savior of the video game industry after the 1980s crash, has a special place in the hearts of many long-time gamers. Now, an artist is offering up a piece of that with an NES. Not just any original NES, but one lovingly painted. Depicting The Legend of Zelda, one of the NES's landmark titles, the NES is not only a functioning piece of gaming history, but an incredibly well done piece of art. The NES looks like a screen shot were taped to the top of it and is protected by 3 or 4 layers of acrylic coating. The seller also has other custom painted systems featuring Kid Icarus and Mega Man 2. Worth taking a look at if you're under the mindset that games are art, as these systems are quite artistic.

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  • Capcom's makin' movies

    Video games and movies frequently don't mix. Sometimes, movies pump out a Resident Evil, which goes on to produce financially successful sequels. Mostly, though, Uwe Boll ends up with them. Capcom is making sure none of that happens to their titles. Capcom is currently cozying up with Hollywood to turn more of its licenses into hit movies; and the other way around. Germaine Gioia, Capcom's new Senior VP of Licensing, is working to get Capcom more exposure in Hollywood. This way, Capcom games like Lost Planet could get decent showings on the silver screen and Capcom can work closely with studios to create games on Hollywood IPs ... which could allow them to work nicely together. Microsoft should take a page from Capcom's book in dealing with Hollywood (possibly getting together with arch-nemesis Sony to make it). By working closely with Hollywood, Capcom is taking a step toward making gaming a more socially acceptable past time. If the movies about games are frequently decent (not directed by Uwe Boll), we could see a loosening of political intolerance of the medium as Hollywood and politicians frequently are in lock-step. Plus, Capcom gets to make more money, which they aren't about to argue with.

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  • South Korea loosens game censorship

    Game censorship is a big news item in the past few months. Political types of all walks of life enjoy trying to stifle the medium by passing laws that don't hold up in court in the US and even get through without much of a hitch in Europe. On the other side of the world, one nation is going the opposite direction. South Korea, which recently proposed an anti-gold farming bill, has pulled censorship on games depicting military action against their northern neighbor. Under the ban, any game that was negative toward North Korea was not permitted for sale in the South, citing they would only inflame the existing tension. However, wiser South Korean lawmakers finally realized video games have little impact on the real world, cut the rule and games like Ghost Recon 2 can now be sold. Lawmakers from the West take note; South Korea has the right idea. When they're sitting right next to an unstable tin-pot dictator and decide that games aren't going to cause a mass invasion, we should start reassessing this whole "games make people violent" kick. Our only hope is wiser people end up in leadership positions who actually try to solve problems instead of deflecting the responsibility on an unrelated party.

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  • Saint's Row the musical

    THQ's Saint's Row, the GTA clone that hit the Xbox 360 (for those who don't know), was a good move for them. The game sold well and made THQ stockholders very happy. However, the game shipped with some horrendous bugs, many of which completely broke the game. Many gamers never saw them, but others were inundated by them from start to finish. One such gamer decided to make the best of it. A blogger by the name of Cabel decided to film his buggy escapades and put them to a musical. The musical is fairly well done, in a hokey homebrew sort of way, and does have a comical segment where apparently the night sky in Stillwater hangs out somewhere below the surface of the planet during the day (vindicating the Dark Ages Roman Catholic church by proving the world is, indeed, flat). Check the link for the higher quality, not-YouTube version.

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  • Smaller processors on Xbox 360 delayed

    var digg_url = 'http://digg.com/gaming_news/Xbox_360_die_shrink_delayed'; Over the past generation, when a new console hits the market, the console manufacturer goes on to shrink the die size of the CPU. The benefits are a cheaper chip -- the smaller the die, the more that fit into a manufacturing run -- and cooler temperatures. The Xbox 360 die shrink is going to have to wait a little bit longer. Originally slated for Q1 2007, the 65nm processors for the Xbox 360 are being delayed until mid-2007. This means gamers are going to have to wait a little bit longer to get those Xbox 360 units that aren't quite so hot; it also means prospective buyers may be waiting a bit longer to see a price drop. Reducing the die size on the Xbox 360 CPU is a major step to a price reduction, something Microsoft needs right now. Xbox 360 sales are less than smoking and the PS3 and Wii offering up some competition, Microsoft could have used a price drop as an excellent weapon against them. Maybe Microsoft can get the 65nm chips up and running before the PS3 has a chance to entrench itself in Europe.

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  • World of Warcraft gets less downtime

    World of Warcraft has become synonymous with PC gaming. Having hit 7 million subscribers, few who enjoy MMOs haven't played the game. However, one nagging issue has bothered many hardcore gamers; the Tuesday downtime. Blizzard has offered us a nice Christmas present in this regard. Starting December 26th, Blizzard will no longer be pulling servers down to perform maintenance. The staff believes they are now in a position to be able to perform their maintenance while servers are live and have rolling downtime only when needed. To add to the benefit, the downtime is expected to only last around 10 minutes, not a few hours as was the tradition over the past two years. The elimination of the Tuesday downtime should be cause for celebration for many gamers. We're paying Blizzard to give us WoW time, not to pull it off the net. We're still likely to expect the downtime for major patches, though we can't complain when Blizzard gives us large expansions for free. WoW fans, go ahead and enjoy playing Tuesday morning.

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  • Nintendo oddly silent on Pokemon DS online

    With the new era of Pokemon coming out to savage the time of millions of DS owners worldwide, there is one feature we're not hearing much about. That feature? Online play via the DS WiFi feature. With the Wii version of Pokemon getting a serious amount of attention about online play, the lack of DS information is puzzling. Many think that Pearl/Diamond will be completely without online compatibility. However, Nintendo quashed that rumor, saying the online play is there; they prefer the fan base to create their own buzz. Being mum on the next big Pokemon's key feature isn't quite surprising. Nintendo has never had a problem moving handheld Pokemon titles. Nintendo is most likely choosing to focus their efforts on promoting the console version of the franchise, which will have an additional benefit of moving more Wii consoles in the process. Don't worry, Pokemon fans, you'll be throwing down with people around the nation in Pearl/Diamond.

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  • Ultra gamers make up 22% of the market

    An important aspect game publishers need to consider is their market. How many people are out there that buy games and of them, what are their buying habits? Jupiter Research, a market research company, has some answers. Ultra gamers, as Jupiter calls them, make up 22% of the game buying population. The ultra gamers are gamers that spend more than 5 hours per week playing games and more than $50 in the last six months buying them. This means the other 78% is the casual market. The ultra gamer tag (that would be most of the folks reading this) is certainly odd. We find $50 in six months to be a strangely low number, given the number of games many of us play in the course of a year; even the more economical GameFly subscription would run $132 in that period. Maybe the hardcore segment is a small portion of the ultra gamer segment.

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  • The mind of a video game analyst

    Analysts are the life-blood of investors. We need some kind of opinion of where a company may be going; if we don't get it, we feel uneasy about a company's future. Michael Pachter is one of those people. In an interview with N'Gai Croal, Pachter primarily discusses his bullish Xbox 360 predictions and how they've essentially fallen flat. He cites the bigger impact the lack of HD sets in homes had as well as miscalculated the price-insensitivity of the hardcore crowd. He thinks a simple price cut won't solve the matters (at least until his magical $150 mark is hit). Pachter further states he expects the PS3 to sell at the same rate as the 360 did since launch. Given Pachter's history, we're beginning to wonder if he is on a stretch of bad luck, or shouldn't be listened to at all. He did predict the PS3 would outsell the Wii (then called Revolution) by up-to 60% this year as well as predicted 2006 to be a slow year for gaming (deemed wrong by his future prediction to buy GameStop stock); neither prediction came out close. We guess it is true; analysts are people paid to have an opinion.

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  • Bethesda's Christmas present to all

    Tis the season for giving, and gaming companies are starting to get festive about it. THQ has released a Christmas theme pack for Saint's Row ... completely free. How Bethesda is getting into the spirit. Mehrunes' Razor, a 250 point Xbox Live Marketplace add-on, is being offered for absolutely free starting tomorrow through December 31. The quest, which was big jump in quality compared to the infamous horse armor (which we're sure they should have packed in as a freebie as well), is a wonderful way to thank all the loyal customers who purchased Oblivion. We just hope more companies do this next year, since all the new consoles now have some kind of online option available out-of-the-box.

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  • Virtua Fighter 5 smacks PS3, heads to 360

    Exclusive content has been slowly moving away from the PS3. Mostly, they've been fairly minor, like Koei titles. However, an arguably bigger title is making the jump to the Xbox 360. Sega has announced that Virtua Fighter 5 -- a former PS3 exclusive -- has moved over to the Xbox 360. Sega also offered a few more bits of information; The PS3 will still be getting a timed -- albeit short -- exclusive with the PS3 launch in Europe. The Xbox 360 version will be hitting Europe and North America in Summer 2007. The exodus of PS3 exclusivity should start worrying Sony. Microsoft has been doing a better job of tying down exclusive content and Sony doesn't want to wage the console war utilizing in-house studios exclusively. It could be the already declining interest in the PS3 and questionable production capabilities that are convincing companies to move the the already established Xbox 360 platform. [Thanks to all who sent this in]

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  • Halo 3 Brute video

    With the Covenant Elite saying goodbye as the major enemy in the Halo series, Bungie had to replace them with someone. To replace them, Bungie gives us the Brutes. Their documentary talks about the evolution of the Brutes from the stupid, mindless killing machines of Halo 2 to the more sophisticated enemy worthy of replacing the Elites. The video shows some nice, new in-game footage (which I'm sure is what most people care about the most) that should leave Halo fans wanting more. For those with an Xbox 360, you can get the 720p version from the Xbox Live Marketplace. Enjoy!

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  • Where the $60 for new games goes

    With the 20% price hike in PS3 and Xbox 360 games, gamers wonder exactly where it all goes. We hear it is because of the increase in production costs, but we still would like to know the breakdown of where our triplet of $20 bills gets sent. Now, Forbes has given us the skinny on the whole deal, explaining why games like Gears of War are priced at $60. According to Forbes, $27 of the $60 taking its leave from your wallet goes toward the actual making of the game; $15 goes toward art and graphics while $12 goes toward gameplay mechanics. Other major price aspects are the 25% retail markup ($12 from a wholesale $48 per game) and console owner fee of $7 (Forbes says the PS3 is higher). All in all, the parties involved (retail and publisher) only get $1 for every game sold (publishers can boost it up to $3 per game if they sell advertising in the manual or as a pack-in pamphlet). This is, of course, before all those costs are paid up; after that, they can still make a nice profit at a $20 price point. The article, accompanied by a nifty slide show presentation, is an interesting look into the world of the new current generation. Still, it doesn't exactly explain why we got the 20% boost other than the "increased production costs". Are programmers getting paid more, working more, need more to finish the game, etc? In either case, the breakdown is an interesting glimpse of the inner workings of a game companies pricing decisions. [Thanks, Scooby Doo]

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  • Publishers expected to have slow 2007

    A number of gaming companies have had decent 2006 performances. Ubisoft (EPA:UBI) is beginning to reverse their losing trend as is Infogrames (EPA:IFG); companies like THQ (THQI) are doing well and even GameStop (GME) is enjoying the success the publishing houses are. However, some analysts believe that this is going to be a temporary boost and publishers are going to have a weaker 2007. DFC Intelligence has stated that 2007 will be a weaker year for game publishers (which contrasts other expectations). This decline is mainly because of the reduction of PS2 desirability as the system will be replaced by the next three consoles as well as a additive effect of third party publishers having had historically poor sales on Nintendo platforms. The hardest to be hit are expected to be Electronic Arts (ERTS) and Take Two (TTWO) as they are too heavily invested in Sony systems (one being in poor supply and the other expected to have declining software sales). The trend is, however, just part of the console cycle. The year after the new batch of consoles launches has shown to be bad for the game creators. Current gen levels are still low and developers are cutting back on last-gen software development, giving the existing install base little to play. However, with major releases at the end of 2007 like Halo 3 and Final Fantasy XIII (which, ironically, are sequels of the titles that launched in 2001, the end of the second year after the PS2 launched), the slump will likely end there ... that is if poor third party success on a Nintendo console since the N64 doesn't persist.

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  • Market research could have improved PS3's image

    Few people hate Sony as a company; it is just the PS3 -- as well as the DRM and exploding batteries -- that pull the brunt of the ire. In fact, many of their other products are beloved by consumers worldwide and aren't decried by the media. The biggest reason is Sony's Electronic Division's strong consumer research practices. Sony's television and digital camera lines garner much consumer approval. This is helped in part by the creation of focus groups and people who actually listen to customer feedback. For example, when developing the Mylo device (a handheld WiFi device that allows chat-functions, Internet connectivity, music and a full QWERTY keyboard) they sent 850 of the devices out to determine the who, what, where, when, why and how the product would be used and made changes around the feedback gained; as such, the Mylo is poised to be another well-received Sony product. The PS3 is a device that appears to have been developed in a vacuum; one where only the engineers built what they thought was the ultimate console. This is shown by the general user unfriendly environment the PS3 has built; symptoms of which are seen in major media publications. While most of the problems can easily be fixed with firmware upgrades over time, there are still aspects that cannot be fixed -- such as the lack of a scaler chip to allow for a simple one-and-done resolution setting when using various features -- without angering earlier adopters or alienating customers with confusing redesigns so early in the life-cycle. How different would the PS3 be today if the PlayStation Division took the same consumer research approach the Electronics Division does?

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  • Warner Bros. buys 10% of SCi

    Warner Bros., a subsidiary of Time Warner (who owns our parent company, Weblogs Inc.) is moving its way back into the gaming development business. Not since the Atari days in the 1980s has Warner held any serious hold in the game development front. Now it would seem that there are changes afoot. Warner Bros. purchased a 10% interest in SCi Entertainment, better known to the world as Eidos, for £44.5 million (roughly $87 million). The new deal will give SCi access to Warner's long list of IPs; the list includes Looney Tunes and Batman. Apart from Batman and possible improved leverage with DC Comics (another Time Warner subsidiary), SCi may want to be careful about overusing the licenses (Harry Potter was, oddly, not mentioned). Looney Tunes, while widely recognized, rarely translates into a quality gaming experience. If SCi can come up with some original content, Warner Bros. can use them for movies, not just a one way benefit.

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  • Some interesting PS3 shortage effects

    Now that the PS3 has been out on the market for a while, analysts can get a firm grasp of exactly what the shortages are doing to, both hardware and software, the various alternatives. The actual results are surprising to most of us "logical" thinkers. According to analyst groups, the biggest winner in the PS3 shortages is actually Sony. The displaced PS3 money is going to purchase PS2 software. Few are opting for an Xbox 360 as an alternative to not getting a PS3, though analysts believe the push will be enough to help Microsoft hit the 10 million goal. The biggest loser is EA, which focused too much effort on the PS3 and overextended themselves. Activision and THQ are in good positions as they focused more on the Xbox 360 and PS2. There seems to be some method behind the PS3 madness at Sony. While they are losing potential PS3 customers, either to the Xbox 360 -- the Wii is not even considered an alternative and stands by itself -- or just won't buy it at all, the money is getting filtered into the PS2 business. However, these short term gains are going to kill third party relationships as it is expected that few, if any, PS3 games will reach profitability before 2007 is over and done with. If developers chose to focus on the established Xbox 360 while waiting for PS3 shipments to rise, they may be waiting forever; the PS3 won't continue to sell without the games to go along with it.

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