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Ad-magine the possibilities: Microsoft sees big potentials in collecting Kinect user data
Kinect isn't just a new way for you to interact with your Xbox, it could become a new way for Microsoft's advertising division to gather targeted data about your family. We're not talking about some tinfoil-hat conspiracy theory -- Microsoft's Dennis Durkin postulated such a future at the BMO Capital Markets conference yesterday. "Over time," he said, the Kinect camera's ability to distinguish between different users, and therefore tailor content to each user, will "help us be more targeted about what content choices we present; what advertising we present; how we get better feedback and data; about how many people are in a room when an advertisement is shown; how many people are in a room when a game is being played." Theoretically, the camera could also be able to measure the level of interest in a particular game or program, explained Durkin, based on factors like which jerseys viewers are wearing (in the case of a sporting event). It's important to note that this kind of data collecting is not actually happening yet. There's still plenty of time to order Joystiq Publishing's upcoming product: the Kinect Privacy Shroud. Simply drape the Kinect Privacy Shroud over the camera and go about your life as usual without fear of being targeted by invasive advertising. Oh, and learn sign language, because Kinect can hear you too.
GameStop details a bright (profitable) future with DLC
During today's presentations at the 18th Annual BMO Capital Markets Digital Entertainment Conference, GameStop head chairman Dan DeMatteo (alongside CEO Paul Raines, CFO Robert Lloyd, and investor relations director Matt Hodges) spoke to the future of the top video game retailer in North America. After detailing cannibalistic markets (terrifying!) and market share (isn't business about taking, not sharing?) for 25 minutes, the crew finally got to the Q & A session, where one audience member stood up and asked DeMatteo to clarify GameStop's DLC distribution agreements with Microsoft and Sony. "I won't get into the details of the agreements, but obviously we get paid for selling the digital content. We get paid less than what we would get paid for a typical new game [retail game], because we don't have inventory carrying costs, shipping costs, etc. But needless to say, we believe it will bring operating margins similar to new games," he responded, indicating a perhaps unsurprising low return on in-store DLC sales. Still, DeMatteo sees good reason for continued sales of digital content. "We see it as additive. It's additive for us. It's additive for Sony, for Microsoft, and it's additive to the publisher. The amount of add-on content now being developed for the big games is just phenomenal. You got a new level coming out for Halo: Reach in December, we have new Call of Duty map packs coming after launch, etc. We look at our ability to sell that to the original consumer -- given that we know who bought the original copy -- to be extremely strong," he explained, referring to his company's ability to track individual customer's purchases via the Power Up Rewards card. And in the coming years, GameStop intends on becoming a much larger player in the digital realm. We expect to have market share of DLC much like we have market share of boxed product," he assured attendees.
THQ president talks up new $40 sales model, building a user base
THQ president Brian Farrell has some bold ideas about the future of the gaming industry's profitability. While speaking at the recent BMO Capital Markets Conference, Farrell explained, "What we're thinking about the business is we're turning it on its head a little bit," later adding, "It's not, 'how high a price can we get', but 'how many users.'" Farrell then described THQ's vision for capitalizing on that policy: As revealed in September, THQ hopes to launch the next entry into the MX vs. ATV series at a lower price point, and rely on DLC to bring in the big bucks. "When we launched [MX vs. ATV] at $59.99, we'd do some units, and then when we brought the price down to the mass market-friendly price of $39.99, it would just pop," he explained to the conference's attendees. "So the thinking this time is, let's initially launch at $39.99 ... It's a AAA title, at that price point, but then with a series of DLC so people can extend their experience." The company's strategy makes a lot more sense, now. See, before, we just thought they were dropping the MSRP because they wanted to do a nice thing for us.
Nintendo: 80 percent of female console gamers prefer Wii
[Source: Kotaku] Nintendo's resident name jotter-downer and kiester-kicker recently divulged to BMO Capital Markets attendees that the Wii is outperforming its rivals when it comes to female gamers. According to its estimates (via Kotaku), 80 percent of the female console gaming crowd prefers Wii over the alternatives. With an estimated 11.7 million female console gamers in the Americas -- it's important to note this data of Nintendo's doesn't take into account DS owners or PC users -- the figure comes out to roughly nine million ladies waggling their way into the fun zone.
Activision pursuing 'online monetization models' for Call of Duty franchise
For quite some time now, Activision execs have been hinting at the idea of MMO monetization being implemented in games other than Blizzard's behemoth World of Warcraft. Speaking at the BMO Capital Markets Conference this past week, another Activision exec – CFO Thomas Tippl – was tasked with the question of whether or not WoW's "successful online business model" (read: monthly subscription fees) would end up in other Activision properties. "It's definitely an aspiration that we see potential in, particularly as we look at different business models to monetize the online gameplay," Tippl says, according to an IGN report. "I think it's been mutually beneficial, and you should expect us to test and ultimately launch additional online monetization models of some of some of our biggest franchises like Call of Duty." He also notes that "there is demand from the core gamers to pay up for that," which likely means that many of you who got Activision's survey back in June supported this. Shame on you. [Via CVG]
