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Peter Moore talks smack about Activision-Blizzard
In a recent interview with MCV, Xbox big-wig turned EA big-wig Peter Moore explains how he believes EA Sports' new portfolio is poised on the brink of burying the new Activision-Blizzard juggernaut. He describes how EA Sports is trying to turn their attention to the an international audience, courting new swaths of gamers with casual titles that promise to appeal to customers outside of their usual demographics.Of course, our immediate reaction is to wonder idly what kind of whacky-tobaccy Peter Moore is smoking, Activision-Blizzard's crown jewel is of course World of Warcraft, which netted the company approximately $1.2 billion last year. Yes, you read that number correctly, that's $1,200,000,000. That's not a number that can be countered by dumbing down your sports franchises and hoping for the best. Now, we understand that EA Sports is kind of Peter Moore's baby here, so his chest-thumping is not without rational cause, but I doubt even investors would be fooled by such reckless showmanship. Now, if he wanted to go on to explain why Warhammer Online is going to eat into WoW's market share, we might be more inclined to pay attention, but a pithy boxing game? Puh-lease.
Sony's game division finally turns a profit -- sells 4.9M PS3s in Q3
After bleeding red for months, Sony's games division finally turned a profit last quarter. Sony sold 4.9 million PS3s last quarter after slashing console prices, boosting game titles, and cutting production costs internally. Of course, we're sure Wii shortages aren't hurting Sony's bottom line either. Sony did lower its annual sales goal of PS3s from 11 million to 9.5 million (citing a slow start) while increasing PSP projections to 13 million from 10 million as originally expected. Sony's fiscal year ends in March. Overall, Sony's profits rose 25% for the quarter. Welcome back to black Sony, it's been a long time coming.
LG follows Nokia's earnings success
Nokia isn't the only manufacturer going the opposite direction of Motorola at the moment. LG managed to ship 23.7 million phones in the fourth quarter of 2007, a 40 percent improvement over the same period in 2006; following a trends across the industry, though, its revenue was up considerably less -- a mere 12 percent -- thanks to freefalling handset prices worldwide. The company says that a healthy portion of its success can be attributed to the good fortunes it has seen with Verizon's Venus and Voyager and with the Viewty throughout Europe. Things are looking good for 2008, too -- LG predicts that it'll ship a whopping 100 million handsets throughout the year, which if true would represent a 25 percent increase over 2007's numbers. As it stands, LG slides in with 7.1 percent of the global phone market share, slotting it fifth among the top five manufacturers (nothing new there) and about 2 percent behind number four, Sony Ericsson. Best of luck in the new year, dudes.
British iPhone users love their data
Insanely Great Mac has the breakdown on a meeting between O2 (purveyors of the iPhone in Britain) and Mr. Jobs from the UK's Financial Times, and it seems iPhone users across the pond can't get enough data. Over 60% of iPhone users use over 25mb/month of data, while only 1.8% of non-iPhone users on O2 go over that mark. That's a lot of data downloading.It's probably not a surprise, then, that about 60% of iPhone buyers are also new to O2, which, in my estimation, means that people who switched for the iPhone also switched from a non-data cellphone, and are making up for the difference. We talked on the Talkcast a little while ago about how the iPhone isn't necessarily stealing the "business smartphone" audience away from brands like Blackberry-- it's actually attracting new smartphone users completely. And there are a lot of them-- O2 is looking to sell 200,000 iPhones in Britain by the end of January, and they say that despite Apple's cut of the profits, they're making money on every one.Finally, we get almost-but-not-quite-final confirmation that the 3G iPhone is due next year, and that O2 will very likely carry it. Which isn't really a surprise-- seems like things are going pretty well for O2 and Apple in GB, and so it's hard to see either one of them breaking up a good thing.[Via Macbytes.com]
RIM doubles up profits, revenue
Just as forecasted, Research in Motion has delivered quite the Wall Street-pleasing results in the fiscal third-quarter. The BlackBerry maker's recently released numbers showed a staggering $370.5 million profit compared to "just" $175.2 million in the same quarter last year. Furthermore, the firm's Q3 revenue rose to $1.67 billion from $835.1 million last year. According to co-CEO Jim Balsillie, it's pretty "clear [that] BlackBerry smartphones have crossed over from being viewed as a primarily enterprise product to being marketed as a strong mainstream offering," and considering the results, it's hard to argue that point. Oh, and just in case you haven't seen enough digits in one post, it should be noted that RIM shipped out more than 3.9 million handsets and added around 1.65 million BlackBerry subscribers in Q3, also. Not too shabby, eh?
Moto stays flat in third quarter, but says the rebound's coming
It ain't a magic bullet, but it looks like the RAZR 2 could end up being a big part of Motorola's turnaround after all -- a turnaround ironically necessary thanks to the company's over-reliance on the first gen RAZR. Though Motorola still ended up posting third quarter losses totaling $138 million in its mobile device division (compared to earnings of $843 million just one year prior), fourth quarter projections beat analysts' estimates, sending stock prices skyward in the process. A couple interesting bits from the report: the company's enterprise mobility group (think Q and the like) saw sales rise some 47 percent from a year ago, and remember that RAZR 2 we mentioned? Yeah, turns out Moto's nearing the magic one million mark already, with over 900,000 units having been sold. 'Course, it certainly doesn't hurt that all four national US carriers and several regionals have picked it up.
Nintendo ups profit forecast, incoming money storm
Nintendo tripled its operating profit forecast to ¥420 billion ($3.7 billion) for this fiscal year. This would be Nintendo's second revision this year -- they did about four upward revisions last fiscal year -- and is an 86% increase over last year's results. Nintendo also raised its software sales goal by 35% to 97 million units.From the Japanese perspective in the Reuters report, the announcement of Monster Hunter on the Wii earlier this month is seen as a coup for Nintendo against Sony. It showed that the PlayStation franchise support may be eroding. As far as competition goes, Nintendo still holds they aren't in the same field as Xbox and PlayStation, so don't expect a price cut. Senior Managing Director Yoshihiro Mori says, "The way people play with the Wii and the type of games people play are quite different from rival offerings. The products are quite clearly differentiated ... We don't see any need to cut prices." Unless something dramatic happens, Nintendo is gonna see profits for the foreseeable future. And we still have no idea on the WiiFit impact yet.
Alltel posts healthy profits, customer growth numbers
Although those Chad-based commercials may be unnerving, something is sure working for Alltel. Reportedly, the carrier added 205,000 subscriptions in the most recent quarter, which is "double the year-ago increase," and it also noted that the rate at which it lost customers fell to just 1.9-percent. Furthermore, the outfit raked in some $283 million in profits -- a fine sum compared to the $187 million garnered this time last year. As for the buyout, it suggested that it was expecting a "favorable FCC vote to come soon," meaning that the "takeover by TPG Capital and GS Capital Partners should be completed by the end of the year."
RIM rakes in profits, expects good fortune to continue
Research In Motion has little to kvetch about these days, especially when you consider that it essentially doubled its sales and profits from the same quarter a year ago. The BlackBerry maker recently announced that it had not only passed the ten-million subscriber mark, but "that its profit and revenue more than doubled in the period." Furthermore, the firm noted that "results should be better than expected for the rest of the year," and it suggested that the "outperformance was driven by the strong product cycle, as well as the diversification of its user base across multiple geographies and market segments."
Halo 3 garners $170 million in US first day, breaks records
Microsoft has just sent word that its flagship soldier Master Chief has come back from the battlefield with $170 million dollars in the first 24 hours of Halo 3 deployment in the United States. As noted, this would mark the biggest day in US entertainment history, beating out Spider-Man 3 and all Harry Potters (of course, the price of entry for those events were a lot less, but that's a technicality when it comes to record books). According to the press release, September 25 was also Xbox Live's most active day so far, thanks in no small part to one million online Halo 3 players. Bundled with every copy of Halo 3 was a free 48 hour trial, so we're interested in seeing how many people tomorrow decide to pay the Gold fee and keep on fragging. We're eagerly awaiting the sales figures for the game elsewhere in the world, especially Japan. [Via Press Release]
GameStop has record second quarter profits
GameStop increased profit by 586% year-over-year in their second quarter due to Guitar Hero II and Pokémon sales. Net sales were up 38.9% to reach $1.34 billion. GameStop CEO R. Richard Fontaine said, "It is apparent that the growing base of gaming consumers is well served by GameStop's new and used model, our increasing number of convenient locations and outstanding customer service provided by our store 'gamers'." Try to hold in the snickers folks.GameStop stock has already increased 6% in early trading to $46.07 -- a new record high. What we want to know is how much money is GameStop making from used game sales and the massive amount of interest they accrue off all those people's pre-order money. All that cash just sitting in a GameSpot account collecting interest on products that won't be out for months. At least these numbers show Guillmot is probably right about the industry's continued growth.
Sprint sees 54M customers, 40 percent spike in data revenue
Sprint's recent second quarter financial results showed an interesting mix of numbers: income dropped by 90 percent, wireless data revenue jumped by 40 percent and the carrier broke the 54 million-customer mark. Dropping from a $291 million profit in the year-ago quarter to a $19 million profit is, well, pretty huge. But, at least Sprint saw its average revenue per sub sit above $60 for its latest quarter, with $9.75 attributable to data revenue. Everyone break out some EV-DO data sessions in salute of this if you please. On a lighter note, Sprint CEO Gary Foresee said the iPhone "blip" has not significantly affected number ports to AT&T, although the level is up "slightly" from before the iPhone launch.[via mocoNews]
Gameloft sales up 50% so far this year
Mobile games publisher Gameloft announced they posted €45.9 million ($62.9 million) in sales during the first half of their fiscal year. According to Gameloft, this is a 50% increase from last year, which means they are well on their way to hitting their €95 million ($130.3 million) objective when the games industry goes into overdrive sales for the end of Q3 and the Q4 holiday season.The sales come from standard issue back titles and, in the same way Activision pulled ahead in the first half of this year, Gameloft saw significant revenue from movie/TV licensed games like Shrek the Third, Desperate Housewives and Lost. Yes hardcore gamers, you may curse the heavens for that if you wish.
Video of how Activision became number one
With the announcement today that Activision is the number one third party publisher, many may be asking themselves how that happened? Well, Activision has a corporate video, found by the crew over at GamerScoreBlog, detailing the hit games which brought them to this point on top of the third party publisher ladder. The crowning achievement though for Activision has to be that they kept the same logo for over 25 years. What you should really pay attention to is what Activision president Jim Levy says in the last 30 seconds of the video -- maybe we should call him Prophet Levy. Behold Prophet Levy bestowing his wisdom to the masses of 1981.
Atari lost another $70 million this year
Atari Inc. plans to report a loss of $71.3 million for their fiscal year which ended March 31. This is up from the $69 million loss from the previous fiscal year. Most of the loss is due to some jargon regarding an "impairment of goodwill," relating to a significant erosion of their market capitalization in which Atari lost an extra $54.1 million -- otherwise they would have only lost $17.2 million. In May, Atari cut 20% of their workforce and parent company Infogrames hasn't seen a profit in seven years.It's kinda sad seeing what Atari has become. Instead of being the granddaddy the industry looks up to, they've become the worthless geriatric that's been locked away in the state-funded old folks home and forgotten. Although, the upside is that Atari actually has some stuff we're looking forward to with Alone in the Dark and The Witcher. We'll find out next week if there is some hope for the future or if we can already begin reporting another $70 million loss for next year.[Via Gamasutra]
Palm posts 43-percent drop in profit
We'll admit, anyone paying even the slightest bit of attention should have seen this coming a mile away, but the latest financial news from Palm is far from peachy. The firm announced a whopping 43-percent dropoff in profits compared to this quarter just one year ago, and the stock subsequently slid four-percent as a result. Of course, the perpetual delays of its modern-day operating system cannot be helping the cause, and considering the innovation that has surfaced in the smartphone arena over the past 12 months, it was only a matter of time before this happened. Interestingly enough, rival RIM was able to find a way to keep on keepin' on all the while, as it simultaneously posted a staggering 76.5-percent increase in revenue from the same quarter a year ago -- talk about salting the wound.
Teardown reveals iPhone parts cost two bills
Unlike video game consoles, phones are typically profitable to manufacture from day one and it turns out that the iPhone is no exception -- far from it, in fact. Teardown specialists at Portelligent claim that the 4GB iPhone runs Apple just $200 worth of components, while the 8GB adds an extra $20, not far off at all from iSuppli's slightly higher estimates from January. Granted those tallies don't include the actual cost of assembling the device -- but even so, those numbers are very far cries from the $500 and $600 asking prices at the register, leaving a healthy $299 and $379 respectively (of which an overwhelming majority are $379) for profit and miscellaneous costs. Interestingly, Portelligent's unceremonious destruction of an iPhone in the name of research revealed no further proof that Hon Hai / Foxconn is the ODM responsible for assembling the darned thing.
Nintendo says 35 million Wiis by 2012
Nintendo is looking to best the PS2's 38.2 million consoles sold and expects to hit the Wii-markable 35 million goal by 2012. Speaking with Bloomberg.com, Nintendo's American marketing chief George Harrison says that production has increased to meet the consistent demand for the console. Nintendo previously stated it expects to sell 14 million Wiis between April and the end of next March.Harrison says that the company will continue to focus on the non-typical video game player market, which means don't expect to see any Wii upgrades in the near future. He says, "We're starting to see in the performance of the PS3 and Xbox 360 that that's not necessarily motivating the market the way it used to ... So we're going to start work on future technology only when we believe it's necessary.'' "Necessary" meaning profitable. Sure, the Wii may be two duct-taped Gamecubes, but it's selling strong and raising Nintendo's stock price. In other words, it knows how to print money.[Via Gamasutra]
PSP remains leader of EA handheld revenue
Sony's handheld continues to drive profits to mega-publisher EA. According to Pocket Gamer, PSP games generated $258 million last fiscal year. In comparison, DS games only managed to generate $104 million. Similar figures were revealed last year, when EA admitted that they'd rather focus on Nintendo's handheld than Sony's, calling it a more "fun" system.Although PSP sales make the largest portion of EA's handheld revenue, the company may spin the fact negatively. While $256 million is a sizable figure, it represents a 28 percent loss compared to last year. On the other hand, the DS platform seems to be gaining momentum for EA, as it has shot up 149 percent. We don't care too much about these numbers, though. As long as EA continues to make good, original games for our platform, PSP gamers have nothing to worry about.
Microsoft's Xbox 360 to finally become profitable in 2008?
It's fairly safe to assume that Microsoft as a whole ain't hurtin' in the wallet, but for its Xbox platform, the positive cash flow is (possibly) just around the corner. According to an interview with Robbie Bach, president of Microsoft's Entertainment and Devices Division, the firm's gaming business "will be profitable next year," which will certainly be a breath of fresh air considering how much loot it has been losing for years in the arena. Still, it's not like any major competitors aren't suffering through the same pains, and while the Big N is smiling all the way to the bank with the profits it makes on every Wii sold, we're glad that at least a few consoles are offering up high-definition and true online play regardless of the cost. Obviously, the continual decrease in component costs are making the consoles cheaper to produce, but Bach went so far as to point out that (overpriced) peripherals, an increased user base on Xbox Live, and software sales would be the primary margin drivers next year. So now that the Xbox 360 is looking rosy, what's to be done about the Zune?[Via Joystiq]
