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EA CEO says digital gaming sales will overtake console numbers next year
Need more evidence that physical media is inching towards the door? Enter this Reuters conversation with Electronic Arts CEO John Riccitiello. While the company -- the largest publisher of "interactive entertainment" (AKA video games) -- is hurting on sales during the awesome global recession currently underway, he thinks the future is digital. All digital. Riccitiello had this to say on the matter: "When people think of games, they traditionally think, in the U.S., of what sells on the Xbox, the PlayStation, and the Wii, and they forget about all these online services that are out there... if you add all that stuff up, it's almost half the industry now. It's about 40 to 45 percent. Next year it's likely to be the larger share of the total industry and it'll be bigger than the console games all put together." He went on to say that if EA's digital arm was a standalone company, "it would be like the darling of Wall Street." Of course, he's not just talking about XBLA and the App Store -- this is an all-encompassing view of the digital market, including casual gaming, Facebook apps, and WoW transactions as well. It may not be the kind of all-encompassing push needed, but we are hoping this sort of noise rattles the industry enough to mobilize smarter, more centralized methods of online distribution.
Wall Street Journal: China on track to claim half of online gaming market
It's no surprise to us (or you, probably) that MMOs are big business in China. The Wall Street Journal reports that a new study from Beijing data-analysis firm Cnzz.com predicts that China will hold more than half of the global market for online gaming by 2012. Given the current 20% growth rate, the online gaming market is predicted to reach 41 billion yuan ($6 billion USD). They currently report 338 million web users among their population, with two-thirds of those users defining themselves as online game players. Of course, the main branch of online games in this case are MMOs. In October, six of the ten most popular games in China were MMOs, with four of those being subscription based models. World of Warcraft holds the top spot in that list with "the most registered players and peak simultaneous online users." (The recent bickering between WoW and NetEase may make that a temporary position, however.) The full story from WSJ blogs contains more details, and is a good overall read.
NYT: GAPP and Ministry of Culture clashing over Chinese WoW regulation
The New York Times has brought its journalistic bear to the story earlier this week about China deciding not to approve WoW's release over there under new service provider Netease, and it seems what we thought was confusion between two agencies has turned into a war. On one side, you have the General Administration of Press and Publication (GAPP), who earlier this week said that Netease (WoW's local provider of Blizzard's game in China) could not legally be collecting subscriptions on a game that GAPP hadn't yet approved. But on the other side is the Ministry of Culture, who did approve WoW's content when it was run by The9, and are now saying that GAPP "overstepped its authority" by thinking it could "penalize online gaming" at all. Which means that the silly game of World of Warcraft has fallen smack dab in between two government agencies lobbying for power. In the past, says the NYT, GAPP has approved games pre-release, and the Ministry of Culture has overseen games once they've started running online. But WoW is a weird exception (it has been online for a few years already, and only went offline when Blizzard switched providers), and it looks like both agencies are grabbing for power and the sizable fees that come along with regulation. If they continue to clash, it'll be up to the State Council, China's cabinet, to determine who's in charge. And the NYT says if that happens, the Ministry of Culture has the edge, with lots of friends in the cabinet already. Meanwhile, Netease hasn't taken the game offline yet, apparently -- they still haven't been given official notice to do so. There's no word on how long this will take to shake out, but even China's players are tired of the fighting; they just want to get back into Azeroth and play. Thanks to everyone who sent this in!
China bans foreign investment in online games industry
The People's Republic of China is building a great economic wall around its domestic online gaming industry. Reuters reports the General Administration of Press and Publication (GAPP) is prohibiting investment by foreigners in the industry, through either "joint ventures, wholly owned enterprises and cooperatives."To keep things even more in-house, the order also forbids foreign companies from influencing Chinese gaming firms through technology or other support agreements. The GAPP estimates the Chinese online market is worth about $4 billion.
Online gaming up in the US
Our economy may still be pretty much in the gutter, but one industry is still going strong. If you glanced at what site you were reading this on and guessed "online gaming," congrats! You win a gold star. Here you go: ★. Anyway, according to this industry report featured on GameSpot, online gaming overall (including MMOs, in turn including WoW) was up 22% year-over-year in May 2009. 87.1 million people were estimated to game online in the USA, an impressive 28% of our estimated total population. Of course, a huge chunk of this is browser-based games (think Bejeweled or Yahoo! Games). WoW is apparently the 21st most popular "online locale," clocking in at 2.2 million US visitors. Still, I'd say 21st isn't bad for a game with a subscription fee; 2.2 million players at $15 a month is $33 million a month (assuming the each have exactly one account). The next-closest MMO, according to this report, is RuneScape, at 202,000 players. Really? Aren't there other MMOs with more than that? Anyway, online gaming, like online everything else, is on the rise. Single-player, localized games are starting to feel positively quaint, although I still think Chrono Trigger is the best computer RPG of all time.
Iranian government blocking all online activity except gaming
The internet has played a big part in the drama of Iran's recent presidential elections, disseminating information about the re-election of controversial leader Mahmoud Ahmadinejad faster than most major news outlets. Fearful of this powerful resource fueling further unrest, the Iranian government has cut off all online activity -- all but gaming.Apparently, Ahmadinejad's government is not afraid of protesters communicating via World of Warcraft to plan the next protest rally, as noted by Security to the Core and GamePolitics. Also, Ahmadinejad has not yet downloaded Prince of Persia's Epilogue and is just dying to know how it all ends.
Online gamers are logging more hours, but spending less money
Interactive marketing firm Future Ads revealed a very telling survey from Gamevance today, showing that casual gamers were playing games for longer, yet were spending less money on them overall. Other notable sections of the survey showed a declining gender gap in the gaming population, a melding of the "casual" and "hardcore" gamer markets, and a decline in purchases made for video game consoles.Gamevance's survey revealed that 61% of the 8,000 "casual" gamers who responded said they were playing games for longer periods of time than they were a year ago. However, 80% of those same gamers reported that they were cutting back on console game purchases while 77% of the 8,000 stated that the biggest drawback to console gaming was that it was too expensive.Pair this with the rising Free Realms, Wizard 101, and FusionFall populations, as well as the proliferation of free online gaming sites, and you have a very noticable switch to cheaper gaming alternatives. Will this recession be the rise of the free to play gaming model in America, or will this die off once the economy stabilizes?[Via GigaOm]
Paul Barnett predicts the decline of future asset-heavy MMOs
Mythic Entertainment's Creative Director for Warhammer Online, Paul Barnett, was recently interviewed by Ablegamers and had some interesting things to say about the current state and future of online gaming and asset-heavy MMOs.To illustrate why he thinks online games are becoming much more mainstream, Paul uses a personal and generational example. His mother is hesitant to buy anything on credit because her generation believes credit is evil. Paul himself is wary of online purchases because of the potential for fraud and identity theft. His son, however, believes there is little difference between buying something online and buying something from the corner store.He also talks about the iPhone generation and how he believes asset-light games that provide shorter bursts of fun are going to have the widest appeal moving forward because they're cheap, mobile, entertaining, and disposable. Established asset-heavy games may not see a huge initial decline, but he does predict a decline in the start-up of these types of games because they are extremely costly and require large teams to make. They are also traditionally geared more toward a heavy investment of player time. If asset-heavy games are to continue successfully, Paul believes they'll have to allow for more flexible "time control."[Via: When casual can get too casual]
MMO! Pokemon does not choose you
If you've been waiting for a Pokemon MMO to come out, we're afraid we've got some bad news for you. In an interview with What They Play, Pokemon series director Junichi Masuda confirmed that they're not considering going in the MMO direction at this time. As he stated in the interview, "Trading is a core concept of Pokemon. So when you're trading, you meet with a friend and decide which one you want and which one they want. I would like to emphasize real-world communication. You don't see each other online." That said, we've heard rumblings from some of our readers about Ether Saga, which appears to be based on a pet-collecting and fighting system - although we'd note we haven't played it and can't judge just how similar the two might be in practice. Perhaps the creators of Pokemon will reconsider their no-MMO decision down the road. Sure, you may not see people face-to-face when it comes to online gaming, but handled properly, MMOs can be a great way to meet new people and potentially make friends you wouldn't have met otherwise. [via GamesIndustry]
What to do when a player dies
This AP story is making its way around the community -- Jerald Spangleberg's daughter was faced with a growing problem when he passed a way: figuring out how to notify the guy's in-game friends. As online relationships grow more and more prevalent, relatives of those who pass away are often having trouble notifying some of the deceased closest friends. Even Blizzard can't help in this situation, apparently -- they have no policy or rules to deal with players who have died, and no way for relatives to log in to the game without the password to let guilds know what has happened.You might suggest that these relationships aren't that big a deal, but when you think that guildies are encountered almost nightly, while real-life friends connect only when schedules allow (maybe once or twice a week), you can see why it might be important to let the ingame associates know what has happened. Unfortunately, all of the solutions so far are pretty morbid -- there are sites that will send email for you, or some players have left lists of contacts to reach when they move on.The importance of online relationships is likely to increase in the future if the past few years are any indication. And given that the average player is getting older even as they're making more and stronger friends online, it might not be long until we've got a much better solution to deal with this problem.
Steelseries partnering with Best Buy, credits WoW for growth
We've heard before about World of Warcraft strutting up the PC gaming market before, but could this game also be holding up the PC game accessories market? Seems that way for Steelseries -- they're the makers of the WoW mouse that we've mentioned (the one that might not be quite kosher with Blizzard's Terms of Service, use with caution). They've just recently inked a deal with Best Buy to carry some of their products (including the WoW mouse), and World of Warcraft played so much of a part in the deal that CEO Bruce Hawver credited Blizzard's MMO with creating his "high-quality gamers": "The way I used to pick up the phone after school, now, kids log into World of Warcraft and chat... Online gaming might cost $14 to $18 a month – less than a single movie visit for two people."It does follow -- if WoW is one of the only reasons left for people to spend money on PC games, it does seem that it would be one of the only reasons for them to spend money on gaming accessories. High-end mice and keyboards use to be the domain of the FPS player -- guys like Fata1ity pimped their own lines and all the mice bragged about their resolution and ease of use. But the PC market has changed, and MMOs are the game of the day now -- everything is about squeezing function into as many buttons as possible and reaching this 11 million player group roaming around Azeroth. If Steelseries and other accessory manufacturers want to sell their products, they've got to try and sell them to us.
FCC Comissioner: World of Warcraft causes college dropouts
Oh boy. Deborah Tate is an FCC Commissioner (and will be for another three years at least -- she was appointed for another five year term in 2007), and claimed in a speech about telecom policy and regulation last week that "one of the top reasons for college drop-outs in the U.S. is online gaming addiction -- such as World of Warcraft -- which is played by 11 million individuals worldwide."Never mind that World of Warcraft, is a game, not an addiction, and never mind that most of those 11 million people play it and are completely healthy socially and financially, and never mind even that any evidence you'd find that World of Warcraft causes dropouts is anecdotal at best. Can you really blame a game for someone making the choice to leave college? We, as you might have guessed, think not.And there's more: Tate's Wikipedia page says that not only has she spoken out strongly in favor of DRM, and not only has she taken talking points directly from Clear Channel in trying to work on the Sirus/XM merger (a government official speaking the words of a corporation, that's just what we need), but she has also blamed television for childhood obesity. Nice one. One more reason why we are thrilled to see that we may finally get some folks in the FCC who actually know what they're talking about when it comes to online gaming.
Dr. Phil solves our online gaming addiction problems
On this past Monday's episode, the Dr. Phil Show explored online gaming addiction with some special guests who have lived through some nightmare situations. As is expected with a daytime TV show like this, the focus was on the negative effects of online gaming on families, finances and a person's well-being. Maybe they need to do a show on the dangers of watching daytime TV all day?We'd imagine you could guess our views on something like this, and we'd assume that most of you share this same opinion. Sure, genuine addiction that leads to a total neglect of responsibilities is a serious issue, but when non-gamers see something like this, they jump to conclusions about how all online gamers are addicts. As someone once pointed out in the comments section of a previous post on this same issue, anything can become an addiction. You can become addicted to exercise with the exact same results as we see on this show. Regardless, this issue will continue to be showcased by the major media as online gaming's popularity grows. Check out an interesting post-show development from one of that episode's guests, and share with us some of your thoughts on the subject.
MMO Couples tells you how to find love online
MMO Couples is a new blog about "how people successfully combine online gaming and relationships," and it's a pretty interesting read, whether you're a fan of online gaming or romance in general. It's written by "Gabi," a woman who met her boyfriend in WoW (she tells the story on the site), and while there's not much to read through there yet, it does seem like it might be an interesting look at how couples find themselves in virtual worlds.There are also some tips on how to find love in a virtual world, and I like how down-to-earth they are: communicate as much as possible, be realistic, have a backup plan. Online romances are often full of drama, and it seems pretty tough to get a good relationship out of having met in a place where the whole point is that you're pretending to be someone you're not.But a site like this would help fix some of that -- providing a community and a forum for folks in online relationships would probably help everybody involved.[Via Wonderland]
Microsoft job posting hints at "totally new Xbox Live experience"
Make no mistake, we've seen curious job postings lead to changes in our favorite gizmos before, and hopefully, a recent ad on Microsoft's website is no different. A listing seeking a Program Manager explicitly states that it's looking for someone to "be involved in the next release of Xbox," and wants that very individual to be "part of the Xbox Live team that's responsible for creating a completely new way for mainstream audiences to enjoy the Xbox and Live." Better still, the description suggests that the team would be "building the games, the console interface and logic, and the server support for a totally new Live experience." Granted, there's nothing more to go on than this at the moment, but we can't help but be a teensy bit excited about the notion of an overhauled Xbox Live.[Via GamesIndustry]
The Virtual World Boom
Looking for a great escape from reality? Nothing comes close to a Virtual World for a thrill seeking whimsical adventure that doesn't require you to crash your bank account or take some time away from work-- except when an expansion is released or you that long-awaited beta invite shows up, thank you sick leave! It's only natural that people from all walks of life and ages enjoy being entertained by an interactive medium that offers socialization, avatars, items, mini-games and other various shenanigans. Everyone from Webkinz moms, Club Penguin kiddos, the voracious World of Warcraft indulgers and in between is getting in on some Virtual World action. The whole Virtual World genre is going to get a lot more crowded as big media conglomerates take notice and throw staggering piles of cash around in an attempt to attract new visitors. Recent findings by the Virtual World Conference suggest that from October 2006 to October 2007 more than 1 billion dollars was invested in 35 virtual worlds companies. Over at Business Week, there is a great write-up from Paul Heyman of Game Daily about the stirrings from the last Virtual Worlds conference and where some of this money is coming from and where it's going. You won't find any Jeff Kaplan quotes on "welfare epics" but it's still worth a gander if you are interested in an upcoming subset of the genre that will probably prove to be more popular than traditional based fantasy MMORPGS. It isn't the promise land for every Virtual World. Mike Schramm recently reported on the MMO Boom and how it isn't always peaches and cream. This year has been rough on Auto Assault and Gods & Heroes: Rome Rising as both MMOGS shut down permanently while Ryzom is still hanging on for dear life. Despite the pitfalls, MMORPGS will thrive or World of Warcraft will at least, for how long? If Ultima Online has lasted 10 years, WoW will easily top that. 2008 should prove to be a better year for MMORPGS with Warhammer Online: Age of Reckoning and Age of Conan: Hyborian Adventures set to hit our desktops. My hope is that these Virtual Worlds, the ones with elves and fireballs and not Hello Kitty, will be just as fun to explore as their predecessors.
Sony erects massive PS3 server cluster for Warhawk mayhem
C'mon, we all knew PS3 clusters were good for more than academia, right? Thankfully for those who are itching to jump right into a worldwide dogfight when Warhawk lands, it looks like Sony has you covered. Granted, the game will allow for PS3 owners to host and play on their own matches, but the Ranked-Dedicated servers that you may also opt for shouldn't be lacking in terms of sheer power. Constructed by the SCEA IT team, this ginormous PS3 cluster will soon be used to connect Warhawk gamers everywhere, and while we're never told precisely how many PlayStation 3s were scrounged up in order to make this happen, feel free to click on through for another shot and start countin'.
China sets out to curb kids' online gaming
It looks like China's not content to simply wait for over-eager gamers to find their way to a halfway house, with the government now taking some steps to curb the amount of online gaming kids partake in. It's not imposing a strict limit, however, instead forcing game makers to install so-called "anti-addiction software" in their games, which would ramp up in-game penalties if gamers play more than the government deems to be healthy. Apparently, gamers will only get half the normal amount points if they play more than three hours, with no points awarded at all after the five hour mark. At that point, they'll be presented with the ominous message: "You have entered unhealthy game time, please go offline immediately to rest." Exactly how that system will be applied to various games isn't clear, although it seems that any games that don't comply by July 16th will be shut down. What's more, in order to verify their age, all gamers will also be required to register for games using their real name and identity card number, which at least one analyst speculates could "scare away" adults and young users alike.[Via Slashdot]
Gamer busted for "borrowing" library WiFi after hours
We're well aware of WiFi bogarting from unsuspecting neighbors or coffee shops, but who knew there'd be a crackdown at the local house o' books? Cops couldn't leave well enough alone when they rolled up on 21 year-old Brian Tanner jammin' on some WoW-type action in a library parking lot. Tanner's lappy was confiscated and he now faces possible criminal charges for illegally accessing WiFi at the Palmer, Alaska library after hours. While the library could thwart such wardrivers by simply disabling the dang signal at closing, they continue to enforce some usage rules that Mr. Tanner may or may not have been aware of -- the authorities claim this greedy gamer's notorious for WiFi piggybacking and has been "chased out of a number of locations" in the area. [Via Fark]
Hasbro's NET JET merges USB controller with online gaming
We've all seen those cheesy kiosks at the mall with some guy trying to sell you a controller with "8,000 games" built right in, which you can plug directly into your television for about three minutes of actual enjoyment, but now Hasbro is hoping to add a shade of respectability to the plug-and-play controller game market with its $24.99 NET JET device. The USB controller plugs directly into your PC (sorry, Mac users), and once you insert your "game card" of choice into the controller, it navigates to an online web portal where the corresponding game is launched and played on your screen. Hasbro offers up a variety of somewhat kid-centric titles at $14.99 apiece, including Marble Blast XP, Kool Kart Racers, Super Soaker Water Fight, and the obligatory SpongeBob SquarePants' Pizza Toss. Ideally, this wouldn't be a bad solution to laptop gaming for your offspring on lengthy road trips, but you should be sure to get a 3G-equipped lappie before taking this out where the WiFi doesn't roam.[Via EverythingUSB]
