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Disney Interactive posts 20 percent losses in third quarter, citing bad economy
Businesses don't adhere to the same rules we silly humans do; the cycle of the Earth around the sun, for instance. Disney Interactive Media Group is no exception, posting its quarter three financial results -- the quarter that ends in June, folks -- just this week. According to Gamasutra, revenue dropped by $29 million year over year, which company CEO Robert A. Iger said during a conference call was due to "adverse economic conditions." Though Iger didn't specifically spell it out, we would imagine that investing in the development of multiple major titles in Split/Second and, um ... whatever it is that Warren Spector's working on at Junction Point isn't helping with the money intake either. The CEO is positive about the future, but remains worried about the current economy, saying, "We do see signs of economic stabilization, but the pace and strength of recovery remain uncertain and we are managing accordingly." We're guessing it's a bad time to ask for those free passes to Epcot?
Sims 3 sells over 800K copies in US first month
EA's piracy demo program apparently paid off as Gamasutra reports The Sims 3 sold 820,000 retail copies this June in the US. Digging a little deeper into the numbers, the site believes the game has hit 2.5 million sales globally, which means it may reach analyst projections of 4 million units cha-chinged by year's end.With vampires, built-in microtransactions, and an inevitable assembly line of expansion packs planned, The Sims 3 has only begun to pour coal into its money train. How does one say "bagiggles of cash" in Simlish?
Xbox 360 and DS see significant growth, in spite of industry slowdown
The video game industry is not "recession-proof," as many have trumpeted. So far, the industry has seen a 12 percent decline in revenue in the first half of 2009 versus the same period in 2008. Sales of hardware have slowed down as well, with Nintendo selling 13 percent fewer Wii systems and PS3 selling 30 percent less. There are a few bright spots, however.Gamasutra notes that Microsoft has "caught its second wind," selling a dramatic 21 percent more Xbox 360 units so far this year. (Aaron Greenberg was right!) This achievement is even more remarkable when one considers the challenges of this economic climate. Astoundingly, the Nintendo DS has also managed to increase its sales, which begs the question: Who doesn't already own one -- or two? When coupled with the newly introduced DSi, combined sales of Nintendo handhelds have gone up more than 56 percent from last year.Sony continues to struggle with its PlayStation trifecta, as the aging PS2 slowly loses its relevance and consumers appear reluctant to spend $400 on a PS3. We'd continue this paragraph, but it's pretty clear what Sony needs to do if it wants to turn things around.
Korea's Dungeon Fighter Online sets sights on the West
As graphics in massively multiplayer online games push ahead year after year, a few developers are taking a different approach to these games, some with a stylized 2-D look. "Different" is an understatement when it comes to Nexon's Dungeon Fighter Online -- a blending of an MMO with an old-school arcade game which Massively previewed at E3 2009. Although the side-scrolling action is reminiscent of games like Street Fighter, Dungeon Fighter Online will have classes and subclasses, skills, and a level-based system of advancement as with the majority of MMO titles. The game has done very well for itself in Korea (where it's known as Dungeon & Fighter) and is coming to North America, with a closed beta on the way.
Muzyka thinks new Mythic/BioWare group is a collaboration opportunity
Gamasutra and BioWare co-founder Ray Muzyka sat down to chat about EA's first genre-focused group, aptly named the RPG/MMO Group. The original announcement was kind of vague, which really got people speculating over what it meant. ("RPG" before "MMO" in the group title? That must be a sign! Of what, who knows.)In the interview, Muzyka finally explains just what exactly the new Group entails: "It's a collaboration opportunity. Each of the groups continues to make the same thing in their [own locations]. But it's fuelling and enabling more communication, collaboration, best practice sharing, encouraging each other to play each others' games -- but no formal change per se in what anybody's doing."There do not appear to be any plans for co-development or tech-sharing between Mythic and BioWare just yet, but it is something the group is looking at. "We're all part of the same company at the end of the day. We're studios within the same organization, which is a group now within the EA Games label."Tech-sharing could really be to Mythic's benefit right now as they're still grappling with server stability and client performance issues nearly a year after release. It has gotten to the point where they are even considering stripping fortresses, the primary culprit for such issues, from Warhammer Online.
All Points Bulletin players to help determine game's evolution
The team at Massively is pretty happy to see that Realtime Worlds has broken radio silence with All Points Bulletin, first with the E3 2009 announcement and a video podcast, and now with some in-depth interviews about the urban crime game. Gamasutra's Christian Nutt recently spoke with APB lead designer EJ Moreland about some of the elements that could make this game different from most anything else presently on the market. The game is clearly a departure from some of the conventions and game mechanics typical of an MMO. The game's emphasis is on dynamic action; Moreland describes APB as "an online action game with persistence." And, of course, there's that incredible potential for customization they've shown off.
2009 online game revenue could reach $11b
Analysts really do like to live up to their job titles, because Colin Sebastian went all out at this year's E3 event. But his biggest prediction? This year online games will rake in $11 billion dollars in revenue, out of a global $44 billion in the videogame market. That's a whole heaping ton of cash, and a sizable chunk of the pie, too.With Free Realms hitting three million players in only two months, it's safe to say that online games are indeed becoming a force to be reckoned. We're kind of in amazement when considering the potential numbers of Star Wars: The Old Republic's first few months after launch.The next few years are certainly going to be interesting for online games. Hopefully by the end of it all, we'll still be able to walk outside without immediately hissing and burning alive from the sunlight.
A closer look at revenues in free-to-play MMOs
The free-to-play business model in the MMO industry is one that lets users play a game for free in hopes that a percentage of that userbase will opt to embrace microtransactions, allowing F2P game operators to potentially bring in more revenue per month than they would maintain through subscription fees. We periodically see announcements of yearly revenue from some of the larger companies, but these figures are typically announcements of average revenue per paying user (ARPPU), emphasis on 'paying'. But how much money are free-to-play MMOs really making? This is the subject of an article at Gamasutra written by Paul Hyman titled, 'What Are The Rewards Of 'Free-To-Play' MMOs?" Hyman catches up with Raph Koster (Metaplace), Daniel James from Three Rings Design (Puzzle Pirates), and Jeremy Liew from Lightspeed Venture Partners (a funding source for F2P MMOs) to discuss the microtransaction model.
E3 2009: Realtime World's Dave Jones speaks on APB
The announcement of EA handling APB's marketing and distribution was a pretty big one for Realtime Worlds, and creative director Dave Jones was on hand at EA's press conference yesterday to speak with Gamasutra about the game, the company, and the developments of APB.Game wise, Dave has spoken a bit further on how the law vs. criminal battles will work out for the game. Criminals will be able to battle against criminals, but enforcers will never find themselves matched against one another. This will open up the possibility of multiple front wars with other criminal factions, rather than a simple two front game.Also, the game will feature large scale battles as well as "metagroups" where the game determines balancing for players who are doing exceptionally well. Dave's example was a group of 5 elite players might be matched against 15 normal ranking players, just to give the elite players a thrill and the 15 a chance against these 5.The full interview with Gamasutra goes into the company itself, partnering options, as well as more info on APB itself.
GTA MMO would be a profitable venture, analyst suggests
In a recent set of statements to Gamasutra, Mike Hickey, an analyst with Janco Partners, brought up the profitability of an MMO set within the Grand Theft Auto franchise.While Hickey notes that success would only be possible if Take-Two partnered up with another company who had a well designed infrastructure and MMO experience, the whole paragraph is certainly a nod in the direction of online crime games at large -- a genre relatively untapped in the MMO landscape.Certainly a Grand Theft Auto MMO would be the new gorilla of the online space, one can't easily forget about the stylized and anticipated offering from Crackdown developer Realtime Worlds, All Points Bulletin. A GTA MMO would certainly be nice, but APB will certainly be setting the bar for all upcoming crime MMOs, regardless of a GTA entry into the scene.
Rag Doll Kung Fu was the most downloaded PSN game in April
Rag Doll Kung Fu has the honor of being the most-bought PSN game in the US during the month of April, according to Gamasutra's monthly top ten list. In case you're wondering, the game was made completely free to download for a week on May 14. That may result in the game staying put at the top of the list when next months results roll in, too.Comet Crash debuts at number six this month, with the only other new game, Flock, not even being placed in the top ten. Bit of a shame, in our opinion. We would've liked to have seen it do much better. However, it's good to see that some of the PS3's more quirky games are still going strong, such as Flower, Linger In Shadows and Noby Noby Boy.
Funcom reveals first details on its free-to-play MMOs
Funcom, who are probably better known for Age of Conan, have started spilling the details on several free-to-play MMOs. According to Gamasutra, the company is currently working on not one but two titles, one based in Java and the second in a web browser. Funcom outlined the plans as part of their latest financial report, outlining some of their short and long-term goals which included branching into free-to-play MMOs.While neither of the two titles has a confirmed release date, Funcom did go into a little more detail about the logistics involved. For example, the Java-based game has a team of seventeen people and is being aimed at a young demographic, possibly tweens or teens. From the images they have released, the game appears to have a traditional fantasy setting and the ability to ride animals. Meanwhile the browser-based title is being aimed more at gamers and has fourteen people working on development. The company has also stated that they hope to reach a 'combat milestone' this summer.
Wal-Mart wants your copy of NFL 2K1: Now accepting trade-ins
Adding to the already robust list of big box retailers offering game trade-ins, Wal-Mart is apparently entering the fray with a variety of less than fantastically functioning trade-in kiosks (read as: robots). Some photos were snapped by the folks at NeoCrisis and, according to the writer's experience, GameStop probably shouldn't be too worried, as no games were actually able to be traded in.Gamasutra spoke with Wal-Mart and has found out that the kiosks belong to E-Play, a company that specializes in game rental and trade-in kiosks that are hosted in a variety of locations. The current set of machines are part of a now running pilot program, found in only 0.02 percent of Wal-Mart's 3,656 US outlets. Good news, though! The machines are said to accept games from the Xbox and PlayStation 2 era as well, so you can finally get rid of that copy of Blinx you were really hoping would become rare some day!Source 1 - CheapAssGamerSource 2 - NeoCrisisSource 3 - Gamasutra
BioWare's founders emphasize the importance of storytelling in their games
BioWare co-founders Ray Muzyka and Greg Zeschuk were the keynote speakers at Game Developers Conference Canada in Vancouver, British Columbia yesterday. Their speech was titled Emotionally Engaging Narrative: Gaming's New Frontier. Given BioWare's huge portfolio of successful story-driven games, it's no surprise they had a lot to talk about.Not all game-types need a good narrative to be successful or fun (e.g., Bejewelled, Tetris, etc.), but MMORPGs could probably benefit from a greater emphasis on compelling and engaging storytelling. Both Ray and Greg talked about various types of narrative, including linear and non-linear, active and passive, and internal and external.We know that story will be the fourth pillar of design in Star Wars: The Old Republic and here's an example of external narrative they say we'll see when it releases: "Manipulation of world server data based on a broad range of user activities can actually change the game world." We're not quite sure what that means, but here are a couple guesses: Online voting to determine the next expansion race or fan fiction making it into the game's narrative.
Creditors fight back: MIdway gets sued
Sumner Redstone, his daughter Shari (a former Midway board member, mind you) and the mysterious Mark Thomas are all being sued, among others, by the various creditors that a nearly penniless Midway owes money to. Gamasutra obtained a copy of a 29-page lawsuit, detailing the alleged financial liberties taken by Midway's board (as well as the majority stockholders -- Sumner Redstone and now Mark Thomas), which accuses specific people of "breach of fiduciary duty, corporate waste and unjust enrichment." The suit claims Midway's current financial situation as one that "arises out of a series of disastrous and ill-advised financial transactions that largely occurred during 2008," further positing that Midway's board "either approved of the transactions or, upon learning of them, looked the other way -- taking no steps to investigate and unwind them." According to the report, Redstone's now famous infamous sale of Midway to Mark Thomas for only $100,000 was an effort to obtain a "massive tax refund," sacrificing Midway in the process. Finally, the suit states that Midway, as a company, has been "insolvent" since some time in late 2007 and its board of directors simply turned a blind eye, allowing the company to sink further into debt.Oh, and Frank from legal? Your wife wants you home. She knows you've been pretending to go to work for the last seven months.
Aion leading sales for NCsoft
It's one of the must-play MMOs of 2009 and not even out here yet. However Aion, which was released in Korea late last year, is driving sales for NCsoft, according to Gamasutra. The company held a conference call to discuss their sales figures and revealed Aion has generated 42.65 billion Korean won (around $34.57 million). The call also touched upon the game's growth, stating that the Korean beta started with 25 servers and that figure has now risen, post release, to 41.Check out the full press release from NCsoft after the jump.
Disney Interactive revenue down citing lack of console games
Disney Interactive has been having a pretty rough year. The company kicked off 2009 with a handful of layoffs, and now, according to reports at Gamasutra, it's also facing a near 20 percent drop in year-over-year revenue. Big surprise? Not exactly, considering the publisher only internally published a handful of games last year (including critically acclaimed Pure and not so critically acclaimed Turok). Also not a big surprise, Disney Interactive prez and CEO Bob Iger cites "the weak economy and other factors" when explaining his company's less than fantastic financial situation. Let's just hope Warren Spector's "epic" Mickey Mouse game can help to bolster Disney's 2009 lineup.
Microsoft continues layoffs, Massive allegedly hit the worst [update]
According to multiple reports this morning, the second round of Microsoft layoffs has affected Microsoft's in-game advertising arm, Massive. Apparently as much as 75 percent of the staff has been cut, according to anonymous sources at VentureBeat. "As part of the plan we announced in January to reduce costs and increase efficiencies, today we are eliminating additional positions across several areas of the company ... Microsoft is not breaking out layoff figures by divisions," a rep for Microsoft told Gamasutra. We've contacted Massive and Microsoft for confirmation of the layoff numbers and will update this story when we hear more. If you were affected by the layoffs and want to speak with us (anonymously or otherwise), please feel free to shoot us an email.Update: Microsoft and Massive have responded to our emails and corrected reports from this morning.Source 1 - GamasutraSource 2 - VentureBeatSource 3 - BigDownload
Runic Games interview digs deeper into the Torchlight MMO
Earlier last month we learned a bit more regarding a resurrection of the Mythos team in a new project entitled Torchlight. Apparently, this game will begin life as a single-player game, then eventually branch out into an MMO. Although not much is known about this MMO and how much Mythos influence it will hold, a recent interview at Gamasutra sheds a bit more light on what we can expect from Runic Games.The Torchlight MMO is said to be modeled after a Diablo-style game mechanic. With the 22-person Runic Games team being comprised of mostly Diablo and Mythos vets, the familiarity will certainly be there. "Obviously it's the same style, but again, they're working on an established IP that has its own look, and its own story and its own tone, and they're not doing, as far as I know, a traditional MMO," says co-creator Max Schaefer. "[It's] more in the BattleNet style that Diablo II was in."
Former Blizzard devs at Booyah plan iPhone app
Booyah is a company put together by former Blizzard devs (makers of classic games like World of Warcraft and Diablo) and funded by the iFund, and they've been keeping fairly mum on what they've been up to. Until now, that is -- they've updated their website and dropped a press release, and it looks like they're working on some iPhone software. What kind of software, exactly? Well, we're not quite sure -- it sounds like a game, because there's playing involved, but they're also using phrases like "life companion" and "social experiment," which makes it sound like a social networking app with some sort of game or virtual pet mechanics involved. And they are also hinting at a larger pattern of charity or cause-based action -- they told Kotaku that they want to tap into people's "life passions," and Gamasutra was told that the app itself is a "kernel miniproduct" that they plan to expand into a larger movement.Blizzard's own Rob Pardo is an advisor to the team (and the product was originally pitched to Blizzard), but really that's the only clue here that this is anything more than startup hype -- we've seen social networks flash and fizzle already on the iPhone, and even game-based social networking tools like Foursquare haven't really found their tipping point yet.But we won't judge fully before we've seen it -- Booyah says they'll be showing their cards "this spring" (so before June 21st?). We'll be watching.
