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HarperCollins pressuring Amazon to hike Kindle prices
The iPad is still a few months away from actual release, but it already has publishers scrambling to be in the right place when the revolution comes. First, Amazon gave in to Macmillan's bid to raise prices on their own store, and now HarperCollins is putting the pressure on that same site to raise eBook prices from $9.99 up to $14.99 or higher. Amazon finds itself in between a rock and an iPad -- if they don't give in to publishers' demands, they could find themselves abandoned for an exclusive Apple deal, but if they do raise prices, sales will start dropping even before the iPad appears. Jobs predicted about this much last week in an interview with Walt Mossberg, saying that publishers would run afoul of the Amazon store, and Jobs would be more than happy to pick them up in iBooks. But the real question is: how much will Apple charge? Historically, Jobs has been pretty antagonistic on pricing against content providers, only recently giving in to the first price increase in the history of iTunes. At the Apple event the other week, Jobs said on stage that prices on the Kindle and the iPad for books would be "the same," so while fleeting images of the iPad showed bestsellers at around $10 (which is what Amazon charges), it's possible that Jobs would go with the $14.99 price to woo publishers over to his side. It'll be an interesting battle -- when the iTunes music store first opened, there basically were no strong competitors in terms of other online music retailers. With the iBooks service, Jobs and the iPad are wading into already populated waters. And while Amazon is feeling the heat of the iPad even before it's on store shelves, odds are that they're not going to go down without an eventual fight.
One path to magazines on the iPhone: Pixel Mags
As the attention of the Apple-loving world turns to the Yerba Buena Center for the Arts later today, there are plenty of expectations that print publishers -- newspapers, magazines and textbooks -- will play a huge role in the new world order, providing paid content for users of the hypothetical-but-c'mon-now tablet device. While publishers have delivered lots of custom single-title apps so far, not many of those apps provide the full printed content of the magazine in the original visual context, ads and all. If you want to see an interesting take on the possibilities for high-fidelity magazines on the iPhone today, you can check out any of the 33 currently shipping titles [iTunes link] currently shipping via the Pixel Mags platform. The result of the partnership between publishers and Pixel Mags is a very 'print-like' experience, with zoomable pages and easy navigation/pageturns. Pixel Mags is working with lots of publishers (they report 300 titles under contract) to manage the PDF-to-app workflow for new and archival issues of their magazines; the apps are branded with the magazine's look and cost either $0.99 or $1.99, with sample content or a free issue included. Once you have the app, additional issues or subscriptions are available through in-app purchase. You can bookmark your magazines and share your reading choices via social networking hooks. The Pixel Mags team comes from the print world, so they are focused on delivering fidelity to the original magazine look; this comes at the cost of snappy performance, at least on my iPhone 3G (the 2nd-gen iPod touch & iPhone 3GS are noticeably faster). Loading the full page images is slower than I'd like, but I can see the value of having my entire magazine library in one place, available offline and without download waits. It's likely that the publishing workflow for the tablet environment will scale up considerably from straight PDF conversion and include multimedia/dynamic controls for publishers, potentially in a similar fashion to how iTunes LP works for album packaging. What we can see in Pixel Mags now is one of the flavors that could go into this delicious parfait of content.
Apple meeting with "nearly all 6" largest trade publishers
Electronista is reporting today that Apple is in talks with "probably all six" of the largest publishers in preparation for the tablet's release (I think it's safe to officially call it real now). Publishers Marketplace notes that it's all going down in New York City, with ebooks being the topic of conversation, specifically pricing and all of that good stuff. It's assumed that Apple will sell books through iTunes with a revenue-sharing model similar to what's currently behind the App Store. The report states that the publishers are keen to control pricing and retain access to the files themselves. It's interesting to note that Amazon recently (as in yesterday) announced a revised and similar business model for the Kindle, scheduled to go into place on June 30th. Now, just because Apple is in talks with all six publishers doesn't mean each deal is a lock. At least not before next week's dog-and-pony show. Expect a demo, some partner announcements (with select CEOs briefly sharing the stage) and a fanboy-crushing delay of 4-5 months.
Amazon Kindle moves to App Store's 70/30 revenue split
Most of the rumors coming out about next week's event say that there'll be a tablet with a lot of similarities to the popular Amazon Kindle device, but even before Apple takes the stage, Amazon is taking one of the new ideas for its own. The online retail powerhouse announced that it is adapting a payment model for content providers that's very similar to the App Store, with a 70/30 split on pay sharing. There are a few limitations (there's still a cost for delivery, and the publisher has to conform to a number of price, feature, and location standards), but essentially, Amazon is taking the exact same model that has worked so well for both Apple and its development partners, and bringing it to the Kindle platform. The timing is interesting -- with Apple just about to release what many expect to be a Kindle competitor, you have to wonder what Jeff Bezos is thinking. You have to wonder what Apple will do, too: while there are certainly all kinds of other things the theoretical tablet can do, it's possible that, if they are as close as some people think, Apple and Amazon will end up competing over content delivery, and one or the other may have to change its royalty offerings in order to attract more premium content. That's all a ways down the line, of course -- first, Apple needs to announce the tablet, and then we have to see what happens in terms of releasing content for it. But there's no question Amazon and other companies are watching Apple's plans in the App Store, and it'll be interesting to see what comes next.
Amazon to start paying 70 percent royalties on Kindle books that play by its rules
Sure, you know how much you pay for a book on your Kindle, but do you know how much an author gets from that sale? For most it's probably some meager single-digit percentage, with the publisher taking the rest of the roughly 35% of revenue Amazon doles out. The remaining 65% goes straight into the site's coffers, but that's about to change. On June 30, Amazon is launching a new option in its Digital Text Platform (DTP) publishing scheme that would give authors and publishers 70% of the revenue, with Amazon taking just 30% -- effectively flipping the ratio on its head. The catch? There are plenty: Distribution costs are now paid by the publisher, but that should be on average a few cents per book. These books must sell for between $2.99 and $9.99 and must be priced at least 20% lower than a comparable physical copy of the book. (This is good news for readers, putting a greater incentive for lower-priced digital volumes.) The book must support the "broad set" of Kindle features, including text-to-speech. This will only be available for books that are in-copyright and only for those sold in the US. This is an obvious reaction to the competition from places like Scribd, which pays publishers 80%, and publisher-friendly upstarts like Skiff, but it's also an interesting push to force more books to enable Kindle's text-to-speech. That is currently something of a sore spot amongst those who provide the content, so while we're sure authors will love the extra money coming here, we're wondering whether their publishers will take it given the possible loss of lucrative audiobook revenue. Will this help Amazon in the upcoming war of the e-readers, or will it hurt? We can't wait to find out.
New York Times to begin charging for access... something something, Apple Tablet
Is it a stretch of logic, or purely logical? You be the one to judge. New York Magazine is reporting from what seems to be pretty solid word that the New York Times will start charging online readers for its content. That's all well and interesting for a media hound, but there's additional word that the announcement of this in "a matter of weeks" might coincide with the rumored January 27th Apple launch. You know, the tablet thing. We already know (or are pretty sure) that Apple has shopped around a theoretical device to content providers, including almost assuredly the New York Times, so it makes "sense." Still, we aren't putting solid money down on a single thing until Steve Jobs pulls this device out of a largish pocket of his and shows it to our face.
Analyst noise: Apple tablet in March for $1k, publishers on-board, Verizon iPhone coming too
If you've been following mainstream news today, then it's likely you've seen the story doing the rounds on new Apple tablet rumors, spurred by a note sent to clients from Oppenheimer analyst Yair Reiner. Never heard of him? That's not surprising, since he has no real connection to Apple, and his job mainly consists of telling people how to move their money around -- a Master of the Universe gear-cranker, you might say. Anyhow, Yair is sure that Apple will be releasing its 10.1-inch, multitouch tablet around March or April, with a ramp-up on production sometime in February. He also notes that the device will sell for $1,000 (so far we've heard rumored price points from $699 all the way up to $2,000), but ultimately Reiner seems most concerned with how it will impact Amazon, the Kindle, and book and media publishers. According to the note, Apple has been in talks with publishers concerning a "very attractive proposal" in which the company will split revenue with publishing houses 70 / 30, as they do with iTunes and App Store sales (just as we speculated in our post on the Time Inc. digimag). What's most disconcerting about the report is that it seems more interested in disrupting or dismissing what Amazon is doing (particularly noteworthy as the company is in the midst of its biggest season for Kindle sales ever). When financial analysts start squawking in this manner, we like to approach with caution. As of right now, we have zero solid evidence that Apple is even producing a tablet, let alone ready to drop one for a G come March. We have heard plenty of other rumors that corroborate much of this, but if the above is the plan, you can expect a big reveal from Cupertino around the time of Macworld or CES, so you won't have to wait long to know the truth. For now, keep your BS detectors set to "stun." P.S.: See what we mean? Now a Piper Jaffray analyst is 70 percent certain (70 percent!) that Apple will introduce an iPhone for Verizon in 2010. Hold onto your hats folks, we've only just begun.
Magazine publishers announce joint digital distribution scheme
The joint venture between four leading publishers has issued a press release highlighting a few of the finer points of its plan to create a platform for digital magazine distribution -- we guess that The New York Observer wasn't kidding when it said that a deal between Conde Nast, Hearst, Meredith, News Corporation, and Time Inc. was imminent. Essentially a vehicle for selling publications for just about any device (including smartphones, e-readers, and laptops), the content will be optimized for multiple operating systems and display sizes, and according Time exec John Squires, it will all be DRM-free. They've yet to announce a name for this beast -- although we're leaning towards Magulu (or, perhaps, the iMags Store). PR after the break.
Magazine publishers said to be 'very close' to digital distribution deal
Rumors of magazine publishers striking a deal to make their content available for digital devices -- even a certain tablet -- have been around for quite a while now, but it looks like something may finally be close to really happening. As The New York Observer reports, Time Inc. exec John Squires has been taking the lead on the initiative (and is apparently set to become interim head of the new company), which would see rival publishers including Time, Condé Nast and Hearst join together to make over 50 magazines available in digital form, and for a variety of devices. Details are otherwise a bit light, as you might expect, but one source familiar with the situation reportedly says "it's very close and more imminent than it's been," while others familiar with the plans say they "compare to iTunes," and that you'll be able to buy "new and distinct iterations" of magazines like of The New Yorker or Time -- and even actual print editions, for that matter.
Dyack predicts more publisher consolidation
Publishers have been disappearing faster than Ludwig's snickerdoodles at Joystiq's Mid-Autumn Tea Social lately, both through bankruptcy or (for the lucky ones) being purchased. Designer and industry soothsayer Denis Dyack told Gaming Union he expects that to continue, comparing the shift to that of Hollywood which went from hundreds of individual studios to the six major houses we know today. Dyack expects the role of publishers to change as well, though he's less specific on exactly what that means. Boy, one console and now fewer publishers? Sounds like Denis has been listening to too much They Might Be Giants.
Black Prophecy newsletter updates fans on the game
The sci-fi MMO Black Prophecy from developer Reakktor Media still has a few significant hurdles to clear before release, but it's looking to be an interesting title from the gameplay footage we've seen thus far. As they continue to develop Black Prophecy and seek a publisher to help them expand their reach into multiple markets, Reakktor Media has been updating the community on the game's status. They've just released their eighth Black Prophecy newsletter that hits on the media coverage they've received in the last month (along with the latest art assets), a look into the game's art direction, and the "Pimp My Ship!" that's happening on the official forums. Also, if you're curious about what will differentiate this game from other sci-fi MMOs currently on the market, be sure to have a look through Massively's Black Prophecy coverage.%Gallery-46991%%Gallery-51088%
Game Developer Research's 'Top 20 Publishers 2009' stays the same
The industry analysts at Game Developer Research could have saved themselves a whole mess of time and money by releasing the following statement in lieu of the latest edition of their annual Top 20 Publishers report: "See previous year." Differentiation from last year's top five ranks -- which, let's be honest, are the only ones you really care about -- is almost non-existent: Nintendo placed first (again), EA came in second (again), Activision Blizzard followed in third (again), Ubisoft retained its fourth place position (again), and Take-Two moved up from sixth to fifth, bumping Sony out of the top five. The full, totally unsurprising list -- which was calculated based on number of games released, average review scores for said games and estimated revenue for each company -- can be found after the jump. Comments stating why Publisher A is still infinitely better than Publisher B can be found further below. [Via Gamasutra]
Black Prophecy creators reach out to the community
Black Prophecy is a space-based science fiction MMO in development at Reakktor Media in Germany, which we've covered a bit here at Massively. But the fact is that Reakktor may not be a company that many MMO gamers are all that familiar with. The Black Prophecy team has decided to try and remedy this, with a Q&A in their community forums that introduces a bit about CEO Kirk Lenke and development director Simon Bachmann, as well as their approach to the game.Ultimately, the Q&A answers some of the questions that people have about Black Prophecy, both in terms of game mechanics and the business decisions behind getting the title published.
World of Warcraft in China to go offline for weeks in operator handover
World of Warcraft is perhaps the only Western MMO to enjoy tremendous success thus far in China, the world's fastest growing market for online games. It's been a difficult road to the top though, if recent news reports are any indication. In addition to government regulations preventing Wrath of the Lich King from releasing for the Mainland, we've reported that The9 has lost the rights to operate World of Warcraft in China to competitor NetEase. Now we learn that the transition of operations from The9 to NetEase will mean World of Warcraft goes dark in China for a matter of weeks.JLM Pacific Epoch in Shanghai has been following the story and reports that The9 will cease mainland operation of WoW at midnight on June 7th, after four years of continual service. World of Warcraft will return to China in "late June" under the banner of NetEase. It's expected that character data will be preserved with the handover. One of Azeroth's millions of citizens? Check out our ongoing coverage of the World of Warcraft, and be sure to touch base with our sister site WoW Insider for all your Lich King needs!
Blizzard S.A.S. (France) to publish WoW in the EU
Over the past couple of weeks, European players have been receiving plain text emails (like the one above) from Blizzard. I know what you're thinking ... scam alert but for once you'd be wrong. It might not be full of the usual sparkly Blizzard graphics but it's no less legit - and a quick call to Blizzard Europe confirmed it.From April 14th (that's this Tuesday), Blizzard Entertainment Inc. (USA) will no longer publishing the game in Europe. Pause for dramatic effect. Rather that will be done by a new European arm of the company, Blizzard S.A.S. (France). The email itself is basically a courtesy -- after all, you wouldn't actually cancel your account just for an admin change, would you?Personally I think this a great move, it means that we, the European players of World of Warcraft, are finally being recognised as the legion we are. We're a separate territory (as should be obvious from Blizzard's European job site) and proud of it, it's just nice for it all to be official.
DS Daily: Publisher of the year
The DS was host to a large selection of extremely awesome games in 2008. Who brought you the most, either in terms of what you bought, or just what you liked? Was it one of the big guys (Nintendo, EA, Activision)? A company with a more specialized catalog, like Square Enix or Atlus? An even more specialized company, like Atlus's distribution partner NIS, or Square Enix's subsidiary Taito?Of all the companies putting DS games into stores, who impressed you the most? And just to get that much more thought out of you, no Ubisoft jokes. That topic was a couple of days ago.
American McGee seeks to bring kart-racing MMO to the west
Lots of people predict a new game being the next WoW-killer, or at least irritate others with those predictions, but in China some people are talking about a KartRider-killer. One of the most popular games in China -- indeed, throughout Asia -- is an MMO based off of GoKart racing and it looks like other competitors are about to take on Nexon's KartRider dominance. What's interesting is that the main person behind this is none other than American McGee, who's now turning his attention to the MMO space with a new game called BaiJiu Racer, which our sister site Big Download reports.If you've ever played the trippy game American McGee's Alice, a twisted continuation of Alice in Wonderland released in 2000, you'll probably remember his name. American McGee currently heads up the Shanghai-based Spicy Horse game studio which most recently developed the episodic PC game Grimm. BaiJiu Racer (context: BaiJiu is a 120 proof liquor) already has a Chinese publisher, but McGee is seeking to bring the title to western markets as well, and is putting out a call to interested parties. While a kart-racing game might not seem like the most viable MMO game to release outside of Asia, you might want to have a look at the trailer found below the cut, it looks like fun.
Activision Blizzard locks down senior management with long-term deals
In sports, it's fairly common practice for successful teams to sign their top talent to long-term contract extensions--both to shore up a sense of security for the owners over the long term, but also to demonstrate in straight forward monetary terms how much they mean to the team. This is not quite unlike what has happened over at Activision-Blizzard, where the senior talent at Blizzard has signed five-year contracts with the company to reaffirm their commitment to the team. It's not immediately clear how many people this is meant to include.Activision-Blizzard also reportedly offered similar deals to blockbuster developers Infinity Ward and Neversoft, who are responsible for the other big money-making franchises in the ActiBlizz portfolio. When you consider the speculation from the other day that developers might be gaining greater control of their projects and the news that EA Mythic is getting their Mythic Entertainment moniker back, it seems likes its a good time to be a proven developer. They suddenly have leverage they could only grumble for over the past few years.
Leash on developers slackening thanks to Blizzard?
Few developers in the world have the leverage with their publishers that Blizzard has enjoyed over the years. Where most companies involved in major mergers or corporate hullabaloo end up being cut up and sold for scrap, Blizzard actually had a major say in which parties their parent company dealt with. The resulting mega-corp is even partially adopting their name. Not bad for a developer started many moons ago by a trio of UCLA grads.Some are now speculating that the spectacular success of outfits like Blizzard and Bungie may be prompting publishers to reconsider their relationships with other rockstar development houses like Infinity Ward, the folks behind the best of the Call of Duty series. It seems the suits are finally coming around to the idea that trusting in their proven talent can yield benefits far exceeding the cost of a delay here and there. EA, for instance, appears to be demonstrating patience with Mythic's treatment of Warhammer Online, but only time will tell whether these aren't just isolated cases.
The unaddressed impediments to console MMOs
It's a question we often ask ourselves, particularly when games like Grand Theft Auto IV sell over 3 million copies inside of a month: what's stopping developers from bringing more MMOs to the console space? If you ask the console makers, they'll say that the opportunities are there for the taking. They're stable platforms, uniformly online-enabled, and they have captive audiences in the tens of millions. So what's the problem?Joe Ludwig, producer of Pirates of the Burning Sea, explained in a recent blog post that it's really pretty straight-forward. He says that the addition of a platform-owner to the developer/publisher dynamic throws a wrench in the process. Not only do the console manufacturers demand a cut of the already-tenuous profit margins, but their certification processes also slow down the release of patches. Couple that with longer development times and the inherent limitations of voice-chat, and you've got a yourself sticky situation. Will we see successful console MMOs in the future? Undoubtedly. But the prospects of success in the short-term, Ludwig says, are likely slim.
