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Extensive overview of GameStop reveals rising profits, world domination plans
Looking at this examination of GameStop's sales over at Gamasutra, it's hard to not get frustrated thinking about how much money the used game monolith is making on our undying urge to play "the next big thing." Pulling figures from the 10-K filings made each year by the company with the US Securities and Exchange Commission, Gamasutra noticed some interesting figures. Notably among those: "between 41 and 46 percent" of the company's gross profits are coming from used game sales alone.And how much is the company making, on the dollar, for each dollar they invest in the used game market? According to the analysis, GameStop is making 48 cents on every 100 spent in the used games trade -- a nearly 50% profit margin on a service that accounts for "22 percent to 28 percent of GameStop's revenue." Though GameStop's plans for world domination weren't explicitly spelled out in the 10-K, we expect to hear more about them in the coming months. Alright, alright -- fine, you got us. GameStop isn't planning global domination ... yet.
MadWorld places relationship between online hype and actual sales in doubt
Analytics firm OTX Research seems to already be making a name for itself after announcing intentions last month to track game sales. Speaking at the LA Games Conference, OTX's Nick Williams explained the surprisingly weak connection between strong online awareness of a game versus actual, hard sales numbers, citing Sega's recently released MadWorld as a striking example. Noting the game's top position among IGN.com's games with the "highest level of unique interest," MadWorld came in at a paltry number 41 using OTX's "GamePlan" metric, a system that measures "1,000 gamers on a weekly basis, tracking 400 games at any given time." This translates to a bleak eight percent of Wii owners having even heard of the title, much less purchasing it (that's .32 percent according to April's MadWorld sales data compared with the 20 million Wii owners in the US currently). Hmm, we wonder what that data would look like for Grand Theft Auto's recent foray onto Nintendo's massively popular handheld! It took an awful lot of numbers right there to explain an idea we've all quietly agreed upon for so long now -- hype and marketing in the "hardcore" gaming world doesn't necessarily equal copies moving at retail. Now, if you'll excuse us, we'll be over here playing BlazBlue.
What defines a 'casual' game?
James Portnow, game designer at Divide by Zero Games, has an editorial up on Gamasutra examining the definition of "casual games." The term has taken on a strange life of its own over the last few years, especially when a game like Braid wins the Interactive Achievement Award for "best casual game." How many within the industry would consider defining Braid as "casual"?So, what is casual? Portnow believes it's hard to define, but the quick and dirty answer is: a game that can be played in short sessions, lacks finality and is "replayable ad nauseam." Now, that could mean Bejeweled, but it may also include "hardcore" darlings like Geometry Wars.His analysis concludes, with full recognition of how obvious the answer is: a game with simple mechanics that takes skill and time to master is the key to making casual games for the hardcore. Portnow's piece is worth reading all the way through and certainly requires some introspection as the term "casual game" becomes ever more muddled.
Scott Brown elaborates on design philosophy behind Jumpgate Evolution
Gamasutra caught up with NetDevil president Scott Brown to play a demo of and talk about his upcoming space MMO, Jumpgate Evolution. Fans already know about the various ships, career paths, and large-scale battles from recent interviews and part one of a "making of" production video, so they decided to discuss more of the design philophy behind the game instead.Scott says his 13-person team has been trying to concoct the perfect "easy to learn, difficult to master" formula that will provide an accessible but challenging experience for players. He also believes players should be able to solo in JGE, but be encouraged to group as well. One feature he hints at is a "soft grouping" mechanic that will prevent solo players hunting in the same area from stealing each others' kills.Instead of trying to incorporate fantasy-based MMO roles like tanking, healing, and DPSing, NetDevil gained their inspiration for careers from modern air and naval combat. Scott also believes that PvE- and PvP-oriented players may not mix, so the team has been considering a special PvE PvP-only server-type. Ultimately, beta testing will determine whether or not this happens. Speaking of beta, don't miss your chance to sign up because the game is set to launch in June.
Activision and Gibson settle Guitar Hero patent lawsuit
Earlier this month, Activision and Gibson Guitar Corporation (the guitar manufacturer) settled the year-old litigation over a patent dispute, according to court documents obtained by Gamastura. With all the lawsuits we've been writing about recently, you'd think we'd see more posts like this every once in a while, right?The terms of the settlement haven't been released as of yet and we've requested comment from both companies. Confusing the situation even more is Gibson's recent loss in ... umm ... another case with the publisher, we suppose? Perhaps the two companies will explain. Activision remains engaged on another music/rhythm game front with Genius Products ... via 7 Studios, its development studio, over Scratch: The Ultimate DJ. Like us, you'll just have to wait patiently until the tantalizing results of that lawsuit come to light.
Court approves Square Enix buyout of Eidos
We're really beginning to understand why more corporate buyouts don't happen. It was reported yesterday that a court has approved the Square Enix purchase of Eidos -- the third and (hopefully) final approval the Japanese publishing house needs before officially acquiring UK-based Eidos. According to Gamasutra, Eidos' board of directors confirmed the transfer of the company's titles Tomb Raider and Deus Ex (among others), while the court has acknowledged its delisting in the company's native country, effective as of last night.And so it seems all there is left to do now is make silly combinations of the companies' names, as per the image above. Squeidos? Square Enixos? Kane & Enix: Dead Square? Alright, we're reaching a bit much with that last one ... we'll admit it.
CCP Games boosts productivity with agile development
When CCP Games developed the Apocrypha expansion for EVE Online, it wasn't only the first time that all three studios -- Atlanta, Reykjavik, and Shanghai -- worked in concert on single project, they also created the game's largest expansion to date in record time. EVE Online's lead designer Noah Ward recently explained how CCP was able to accomplish this in an interview with Gamasutra's Christian Nutt and Chris Remo. The company switched from its waterfall development model to agile methods where the game was developed through the collaboration of small teams that showcase their progress to the rest of the developers frequently. Ward says, "Now that we've switched over, we don't have these huge waterfall phases anymore, it's just iterative, agile two week sprints, and we have a demo day at the end [...] and it's just amazing to see how much is actually produced in those two weeks."
Activision: The Ultimate Lawsuit -- day two
Day two of news regarding the Scratch: The Ultimate DJ LLC vs. Activision lawsuit has arrived, and with it a comprehensive analysis of the "full 30-page complaint" by way of Gamasutra. Before we launch into that though, we first put this question to you, dearest readers: What the heck do we call this thing? Scratch-gate? Court Scratch Fever? Breakin' (the law) 2: Electric Boogaloo? You tell us!Aside from the litany of information we already know, the piece paints an interesting tale of tortuous interference on the side of DJ Hero publisher Activision ostensibly strong-arming Scratch: The Ultimate DJ developer Genius Products (and its partner, Numark) into releasing its game later than Activision's. Furthermore, the suit alleges that 7 Studios, former contracted developer of Scratch for Genius Products (and recently purchased by Activision), is still withholding "nine custom-manufactured turntable and beat-button game controllers" belonging to Numark.To help break down the analysis with significantly more expertise and clarity, we contacted LGJ columnist Mark Methenitis, who had this to say:"If you thought Silicon Knights vs. Epic had the potential to get ugly, imagine the stakes when the next major branch of the music game genre hangs in the balance. Taking Genius's claims at face value, Activision is basically trying to bully them out of the market so that Activision's own DJ Hero can become the top billing DJ-based music game. This is similar to the claim that Silicon Knights made, where they alleged Epic was neglecting the Unreal Engine 3 licensees to benefit Gears of War. The major difference here is when Activision couldn't buy the game, it bought the developer to control the game's development and attempt to force the hand of Genius. This gets into tortuous interference with the existing development agreement, the basic gist of which is that as a third party, you're not allowed to interfere with someone else's contract. Of course, there's likely another side to this story, which I'm sure Activision will present in its answer to Genius's claims."
Dispelling myths to launch Free Realms
The MI6 conference is an annual gathering in San Francisco which focuses largely on marketing in the video game industry. One speaker at the April 8th conference was Laura Naviaux-Sturr from Sony Online Entertainment, who discussed the upcoming kid-friendly MMO Free Realms.She addressed the challenges in shifting focus away from hardcore fantasy enthusiasts (largely male) to a younger demographic that includes more female gamers. Naviaux said, "Turning to a youth and female audience was like turning a ship." It required SOE to re-evaluate some of the 'myths' the company held, which was the focus of Naviaux's talk. She brought up several key areas that the company needed to address if Free Realms is to succeed, ranging from putting the backstory and creativity in the hands of the gamers rather than spelling it out for them, to the music in Free Realms, which is a departure from what SOE has done in the past. If you're curious about how SOE is approaching this new title, you should have a look at Chris Remo's article at Gamasutra titled "MI6: SOE's Naviaux on Dispelling Myths to Launch FreeRealms."%Gallery-12980%
Chinese online games market saw 63% growth in 2008
Business is booming for online game operators in China. The market grew by 63% in 2008 according to analyst group Pearl Research. They also predict that online gaming in China will be a $5.5 billion market by 2012, as reported by Gamasutra's David Jenkins. In a country where broadband speeds are continually improving coupled with the widespread adoption of the web, China's netizens have embraced the relatively low-cost entertainment that online gaming offers. This is good news for gaming companies, particularly in these lean economic times. Jenkins writes, "Online operators in China have apparently seen little downturn in their business during the world economic crisis, with six companies now making revenues greater than $200 million (Tencent, Changyou, The9, Netease, Shanda and Giant)." You can see the full story on China's online games growth over at Gamasutra.
Analyst: Investing in Wii development is 'fool's gold'
Cowen & Company's Doug Creutz thinks the Nintendo Wii installed base numbers are misleading and he's not afraid to tell the world. When asked by Gamasutra which system developers are best off investing in, he said, "The choice here is really between investing for the Xbox 360 and PS3 -- since their capabilities are fairly similar -- or the Wii. I would caution investors and developers that the larger installed base of the Wii is really a bit of a red herring." Creutz explained that while there are 19 million Wiis on the loose in the US, the combined numbers for Xbox 360 and PS3 still edge out the Wii by 3 million units. Creutz continued, "I think the Wii installed base represents, to a certain extent, fool's gold for someone looking to invest in video game development." We'll keep that in mind once we get Joystiq Publishing off the ground.
LOVE creator Eskil Steenberg on how his game differs from other MMOs
It would be an understatement to say we're excited about the upcoming massively multiplayer online game titled LOVE, and we've certainly given the title some mention here in the past. It's an MMO being developed by one person, Eskil Steenberg, featuring a rather unique art style and some interesting gameplay elements. We're always looking out for more info about the title and came across an interview with Steenberg conducted by Phill Cameron from Gamasutra, just before the LOVE creator's Independent Games Summit lecture at GDC 2009. Steenberg discusses his choice to adopt procedural generation for LOVE, which was actually the only way forward on this project. "Working alone, you simply just can't build a massive world all by yourself, so you need to do something smarter," he says. "Given that I am forced to solve this problem, I get some added bonuses like being able to constantly generate new content while the game is running." Steenberg points out another benefit to this type of game design."As it turns out I think this could be the key to gaming in the future, as the game is able to develop and change in response to the player's actions," he says. "Rather then having a few binary plot choices, the world becomes far more dynamic and responsive to your actions."
Pardo at GDC lunch: It's all about nailing the execution
Blizzard isn't making too much of an appearance at any of the gaming conventions this year (save for, of course, BlizzCon), but they are floating around the Game Developers Conference going on on San Francisco this week -- Rob Pardo showed up at a luncheon panel yesterday to talk with luminaries like Will Wright and Warren Spector about the latest trends in social gaming. He was actually introduced by Nolan Bushnell, the founder of Atari, who said that "social is buying someone a drink," not "sitting around in your underpants," but said that Pardo manages "maybe the largest group of people in their underpants in the world." Funny.Pardo defended the game, saying that what was once a hobby for outcasts has now become quite cool and that no matter what you're sitting around in, the people who play WoW are people with real relationships, responsibilities, and lives. And he says later in the chat that Blizzard doesn't necessarily aim for innovation, but for "nailing the execution." That's something Nintendo does as well, he said, and many times, that's the key in game development. You don't necessarily have to get it first, but you do have to get it right.The rest of the conversation wanders away from MMOs (and Pardo), but it is a fun look into what these gaming development greats are thinking about what's next. Stay tuned to both us and Massively for more coverage from GDC -- Jeff Kaplan is scheduled to be on a panel there today, and we'll bring you news of that soon.
EA is 'very, very pro independent development,' says DeMartini
In what seems to be a multiple year-spanning sea change on the side of EA, the company is not only reaching out to independent developers like Grasshopper Manufacture and Valve, but also working with them to keep their properties autonomous. Chris Remo of Gamasutra sat down with David DeMartini, General Manager of EA Partners, to discuss the idea behind EAP and, in doing so, revealed some interesting truths about the EA initiative."I think that there is very much a renaissance within the EAP based on the leadership of Electronic Arts ... John Riccitiello and Frank Gibeau are very, very pro-independent development," says DeMartini, referring to titles like American McGee's Alice sequel and Suda 51's upcoming game (still untitled), as well as Valve-developed Left 4 Dead. The "renaissance," he believes, isn't spurred by the way in which the EA Partners program has been set up, so much as it's been a focus on "great quality." While last year's Mirror's Edge and Left 4 Dead might not have sold huge numbers out of the gate, there is no doubt that their critical reception has been overwhelmingly positive. To add credence to his argument, sales of both titles have held steady as time goes on."What we've proven is that there is no one model. What we have also proven is quality and innovation always win." Not a terrible truth to arrive at, if we must say so ourselves.
CCP president points to the EVE community as their reason for success
These are tough economic times for everyone, but not all companies are experiencing a downturn. CCP, the developers of EVE Online, are finding success while many other companies are striving for larger subscriber numbers.Gamasutra had the chance to catch up with CCP North American president Mike Tinney and interview him on CCP's success. Of note in the interivew is how much empasis Tinney places on supporting the community of players and working within a game's revenue stream, rather than overloading a game with big budget features to keep a dwindling population."There's a lot of strategies out there, and there's so many ingredients in the recipe of a successful MMO any one of them can throw the whole thing off," Tinney said to Gamasutra. "But I think the community is one of the most important ingredients."If you wish to read the full interview, check it out over at Gamasutra.
Nexon America appoints new CEO
Nexon, creators of popular MMO titles such as MapleStory and Mabinogi, announced today that they've appointed a new CEO for Nexon America. Chris Remo reports for Gamasutra that Daniel S. Kim has been named as the CEO of Nexon's US subsidiary. Kim isn't new to the company, having already served as executive VP with Nexon's global strategy group in Korea, Gamasutra reports. Kim is stepping into the role previously held by Nexon America's former president and CEO John H. Chi, who is no longer with the company.
Shaking the stigma of "Free-to-Play"
David Chang from Gamescampus has written a piece for Gamasutra which tackles the stigma that is "free to play" or F2P. Chang's "Opinion: Why We Need To Rebrand Free To Play" addresses the cynicism and perceptions of questionable quality that tends to surface in discussions about free-to-play games. Chang's piece points out similarities between the F2P business model and Google, although he admits it's not a perfect comparison. Google's service itself is free, but ultimately fuels its revenue streams through monetized services offered. The large userbase who simply wants to use the service for free is vital to the company's business model, and thus there are some parallels to an MMO operating without subscriptions. "In both situations, people receive a valuable service -- free search or a free game experience," says Chang.
SOE hiring lead designer for new 'flagship' project
Sony Online Entertainment is in the market for a new lead game designer according to this Jobseeker post. The interesting thing about this particular job is that it's for a "New Flagship Project" Now, call us crazy but it's been a little while since EverQuest 2 came out and we know that SOE has no plans to let that franchise wither into the past. So could this be it? Our magic 9-ball (it's a new model) says future outlooks are hazy.Meaning that we couldn't really say either way. Still, isn't it exciting that something big this way comes? Well, at least something as big as a DC Universe MMO, a spy-focused action MMO or a staggeringly clever casual MMO. If only we could see what Mr. Mittens can see...[Thanks, George!]
World of Warcraft as evolutionary model
This must be the time of year for zany social theories about videogames. First, we heard that World of Warcraft might quality as being a religion. Then we heard that it might make for better citizens. And now, in an essay over at Gamasutra on the event of Charles Darwin's birthday, Noah Falstein suggests that games like World of Warcraft are actually models for evolution -- as we level up with experience points, our characters get stronger and more evolved, and we feel comfortable with that because that's exactly what we see happening in the world around us.Technically, of course, you can't model Darwin's theory of evolution with a single character -- evolution isn't about one individual getting better, it's about a process of natural selection in a species over a period of time. To really model evolution, you'd have to play hundreds of alts, and quit them each time you ran into a problem, leaving you with just a few characters that worked really well. Wait -- maybe some of you are already doing that.But Falstein makes good points in saying that certain elements of what Darwin described as evolution have shown up in game design as well -- the idea of specialization for certain character classes, tribal and national allegiances, and even the idea of memes (which are certainly widespread in WoW -- anyone ever heard of Chuck Norris or Leroy Jenkins?) are all drawn from Darwin's thinking and definitely embodied in the game we play.
The Halo MMO: What could have been
In an interesting article at Gamasutra, the last days of Ensemble Studios are chronicled to honor the mega studio and what they once were. Regardless of the titles that put them on the map, the studio had some great games in the works. One such game was the Halo MMO, which was confirmed late last year. The project -- codenamed Orion -- has been in the works, in one form or another, since 1998.According to the article, this project was to be the new focus of the company. There was even a brand new facility being built to house the development of the game. The construction of that building suddenly stopped one day, and Microsoft informed the team that they would be closing down operations. The project originally known as Titan was no more. Check out the entire three-page article for more on the last days of Ensemble Studios.
