billy-pidgeon
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Analysts estimate Blizzard's lost investment after Titan's cancellation
Titan's official cancellation notice yesterday didn't come as much of a surprise to MMO players; after all, the game had been backburnered more than a year ago, its staff transferring to Warlords of Draenor and other Blizzard projects. But the cancellation means Blizzard might never fully recoup its seven-year investment in the game, and that has some analysts worried. "Development costs for Titan may have amounted to tens of millions, perhaps $50 million or more," says one such analyst, Billy Pidgeon, as quoted in a GamesIndustry.biz piece yesterday. Wedbush Securities' Michael Pachter upped that estimate: "My guess is 100 - 200 people at $100,000 per year, so $70 - 140 million sunk cost. It's pretty sad that it took so long to figure out how bad the game was. I expect them to go back to the drawing board." Still another industry observer, David Cole, argued that the current games market simply no longer tolerates seven-year development cycles and high overhead. Pidgeon stresses that it's not all doom and gloom, however: "Blizzard has cancelled several games in various stages of development in the past. Costs for unreleased games can be significant, but launching substandard games can harm the reputation of a successful publisher such as Blizzard. Expenses for development can be considered R&D, and benefits can include invaluable training, IP and technology that can be applied to other games."
How Bulletstorm became 'the worst video game in the world'
Much like seasonal allergies and taxes, the gaming populace is periodically subjected to mainstream news coverage of its favorite entertainment medium. And while said coverage is often laced with inaccurate statements and fear-laden non sequiturs, it doesn't usually ask questions in the headline like Fox News' latest treatment: "Is Bulletstorm the Worst Video Game in the World?" Our brief time with the game's demo -- not to mention the time we spent playing Superman 64 so many years ago -- certainly gives us the impression that Bulletstorm isn't "the worst video game in the world," but we get the feeling that Fox's John Brandon is asking something else.
Analyst: Nintendo pressured by Japanese media into early 3DS reveal
M2 Research analyst Billy Pidgeon claims that the Japanese press were "all over" the upcoming 3DS before Nintendo revealed it, forcing an announcement out of the company's headquarters in Japan. In a recent CNBC report, Pidgeon alleges that the media in Japan had "talked with suppliers there and Nintendo just wanted to get out ahead by breaking the news to prevent a leak." This comes in response to the oddly-timed reveal of Nintendo's next handheld device, less than a week before the fourth iteration of its Nintendo DS was set to land on retail shelves. "Does it clash with the DSi XL? Yes it does," Pidgeon says. He goes on to claim that (even though stock prices for Nintendo jumped following the 3DS announcement), "the corporate parent in Japan may not be acting in the best interest of Nintendo of America." Alright, so, while we're not convinced that those looking to buy a brand new handheld from Nintendo are necessarily the same crowd snatching up a DSi XL, it's also probably not in Nintendo of America's best interests to have console announcements thrust upon it suddenly by the Japanese parent corp. Either way -- if it is true -- good on you Japanese press! [Via Gamasutra]
Microsoft settling in for second place?
OK, fanboys, before you hit that spittle-flecked "post comment" button after just reading that inflammatory headline question, hear us out. We're not just idly speculating here -- we're basing our query on an unusually frank quote from Microsoft Senior Vice President of Interactive Entertainment Business Don Mattrick. In an interview with BusinessWeek, Mattrick said that he's "not at a point where I can say we're going to beat Nintendo." Coming from a guy whose job it is to promote Microsoft's position in the market, that's a pretty big admission of doubt. It's not just Mattrick that's doubtful-- analyst Billy Pidgeon told the magazine, "I expect the 360 to remain in second place this generation. But it's going to be close."The question, then, becomes how much this sales position really matters. Microsoft's sales might fall just shy of Nintendo's, but that doesn't seem to be hurting the company's ability to attract big-name games or roll out new features for the system. In fact, with Nintendo's decidedly less powerful system catering to a decidedly different audience, Microsoft's position relative to Nintendo might not matter nearly as much as their position relative to Sony. And on that score Mattrick has no doubt: "We will sell more consoles this generation than Sony," he told BusinessWeek.
Wii success may lead to cheaper next-gen?
Looks like the popularity of the Wii might not be beneficial to just Nintendo, as industry insiders are beginning to think that it would be the one to pave the way for console manufacturers to adopt a similar strategy in the future. With the big fancy features of the PS3 and Xbox 360, Sony and Microsoft have been losing out on dough from sales since day one. But, the same cannot be said for Nintendo. They've been making profit since they sold their first Wii.And others may follow suit in the next generation of gaming. At least, analyst Billy Pidgeon with IDC thinks so, as he commented to Next-Gen that "the results of this cycle will have a strong influence on the next cycle, in that cheaper consoles will be expected." He goes on further to say "Microsoft and Sony will attain successful business on this generation, but catering to the early adopter hardcore gamers with a technology leader strategy will be difficult in 2011."Any way you look at it, Nintendo proved playing is believing and showed that graphics aren't all there is to a successful game. No matter what we see come the next generation of gaming, we think Nintendo's success here, and now, is going to have a big impact on it. Until then, we'll just get back to playing No More Heroes.[Via CVG]
Sony won't lose money on PSP, says analyst
Prices for PSP have been dropping worldwide, and some have been asking why the price drop wasn't more significant. According to IDC's Billy Pidgeon, Sony will never price the system lower than its manufacturing cost. Unlike PS3, which Sony sells at a loss, PSP will bring profit for the publisher. "[Sony] will continue to lower price as they gain economies of scale, but it's not likely that the company will price below its marginal cost of production to move a few more units."The price drop should not be seen as a move of desperation as some people have been painting it. It's undeniable that PSP sales have been lacking compared to the DS. However, comparisons between the two simply are not apt: "I don't think Sony will 'beat' the DS, nor do I think that they aspire to do so." Pidgeon blames the media for encouraging the PSP-DS debate, a crime which we can admit to. "Games for the two devices are different, and the gaming experience is quite different. I think that the only people who care about the DS-PSP sales battle are the media."[Via GI.biz]
