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Console game sales (at retail) are once again down by more than 20 percent over last year. The high point of console game sales was 2008, and the industry has steadily declined since then. Sales of downloadable content (DLC) have certainly offset some of that decline, but overall the top console game companies have been struggling against this market trend. The top games are selling more copies than ever, but the game that does merely OK (and makes a profit) is an endangered species. Fewer games are being produced for consoles as publishers strive to make every game profitable, and avoid potential losers.
Many observers put the blame for slower sales on the fact that current consoles have reached six or seven years in the market, well past the usual expiration date of console hardware generations (typically four or five years). Late in the console cycle, sales always decline, they say. True enough, but some analysts note the growth in mobile, social and online games may be taking away some of the console gamers, or at least part of their attention and their money.
The hopes of console game publishers now rest on the next console generation. The Wii U launching this week will, in this view, begin the revival on console game sales. New games, with new game play features and better graphics, will boost sales. That hope is missing a key part of the changes that have taken place in the game industry over the past several years. To understand this more fully, a review of game industry history is in order. "Console games are falling further and further behind games on other platforms when it comes to business models"
The console game business began in the 1970s and grew to the amazing level of $2.3 billion in sales by 1983, mostly on the strength of Atari. By 1985, total industry revenues had dropped more than 97 percent to around $100 million. What happened? The great crash was caused by a wave of crummy games (with the E.T. Cartridge as the prime example) flooding retailers. People stopped buying console games, retailers returned huge numbers of games, and the industry collapsed. It wasn't until Nintendo managed to solve some of the key issues causing the crash that the industry was revived, led by the success of the Nintendo Entertainment System.
The key issue that Nintendo identified behind the crash was the lack of quality control. It wasn't just that Atari's games were bad. The rise of Activision and other companies creating games for Atari's consoles meant that there were large numbers of games fighting for shelf space, and no assurances that any of them were any good. Many of them weren't, and consumers were overwhelmed by the bad games. Nintendo solved that problem by assuring retailers that Nintendo would restrict the number of games released, and through a strict licensing process ensure that all games met a quality standard.
The process proved successful, and Nintendo led the rebirth of the console game business. Every other successful manufacturer of game consoles since has followed the general pattern set by Nintendo. The console manufacturer requires game developers to buy development systems (often very expensive), go through a qualification process, and have all titles approved by the console manufacturer before they can be sold for the platform. Publishers selling games in retail stores had to pay a fee per game to the console manufacturer, ranging from $7 to $12 per unit. The process just to become a certified developer can take months, and games can spend weeks or months being approved.
Recently, with the advent of digital distribution on consoles, this has changed somewhat for downloadable games. Developers don't have to jump through quite the same hoops, though there's still an approval process that can take weeks or months to get through, with no assurance of approval. The rules for indie games are even looser on Xbox Live Arcade but there are still plenty of restrictions. Sony and Nintendo have numerous hoops to jump through as well.
The experience of Fez is instructive. “Every developer gets to release one patch for free as part of their inclusion on XBLA, but subsequent patches are expensive - certification costs tens of thousands of dollars,” Rob Fahey pointed out in an article on Fez's troubles. The difficult and sheer expense of Microsoft's process meant developer Polytron felt it necessary to skip putting out a patch for Fez, which was corrupting save games for a number of users. Microsoft's process encouraged a poorer game experience for consumers. "Part of the success of mobile, social, and online games has to be attributed to the freewheeling environment, where developers are free to choose the business model, implement any sort of design, and make changes or add new content as often as they like"
Meanwhile, mobile games go through a minimal process and wait perhaps a few days to appear in the store. Developers can post changes and new content as often as they wish with no restrictions. Charge any price you like, or none at all. There are some restrictions, but most developers easily avoid problems in getting
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Bookies Paddy Power and Ladbrokes have revealed their odds for this year's contenders for the UK Christmas No.1 chart spot. Both firms told MCV they make Call of Duty: Black Ops 2 the favourite, ahead of FIFA 13and the likes of New Super Mario Bros U,Medal of Honor: Warfighter, Assassin's Creed 3 and Halo 4.Alex Donohue of Ladbrokes said: "It would be one of the upsets of the year if Black Ops didn't land the top spot this Christmas." The Elder Scrolls V: Skyrim claimed the Christmas No.1 spot last year, marking the first time in eight years the Xmas top spot didn't go to an EA or Activision game. Paddy Power odds:
Violent games could be facing a potential clampdown in Russia after authorities linked them to a recent shooting.
Last week Russian office worker Dmitry Vinogradov shot dead five former colleagues with two more admitted to hospital, one of whom was a former girlfriend of Vinogradov.
However, as is sadly too often the way authorities have also noted that Vinogradov had previously played Rockstar’s Manhunt.
United Russia reps have since gone on to make official media statements about the game and demand an inquiry into the sale of the title with the view to a ban. They are also looking for a Russia-wide ban on violent video games content.
Manhunt is no stranger to controversy, of course. The game was thrust into the media spotlight when it was claimed that youngster Warren Leblanc, who murdered his friend Stefan Pakeerah, was a fan of the game and took inspiration from it.
It later emerged that it was the victim Pakeerah who had played the game.
Its sequel, Manhunt 2, was nearly banned too though ELSPA (now UKIE) successfully appealed for that decision to be overturned.
Q4 has got off to a rough start for UK?games retail, with fewer games sold in October than September.
In total 2.83m games were sold last month, a fall of 29.5 per cent over the same period a year ago. This is also 20.5 per cent down over September, which benefitted from the late release of FIFA 13.
In terms of revenue, the UK High Street generated £83m, which is 29.8 per cent down year-on-year and 22.8 per cent down month-on-month.
The market dipped due to the lack of a major blockbuster in October. The data released by Chart-Track runs up to October 27th, so does not include Assassin’s Creed III.
FIFA 13 was the No.1 seller, with Resident Evil 6 at No.2, Dishonored at No.3, Skylanders Giants at No.4, and Medal of Honor: Warfighter reaching fifth place.
Electronic Arts was once again the top publisher.
Halo 4 has, rather predictably, taken the top spot in this week’s UK all-formats chart, knocking last week’s best-selling game, Assassin’s Creed III, down to two.Despite its success, 343 Industries’ reboot didn’t exceed week-one sales of Halo 3 or Halo Reach (the 15th and 12th biggest-selling SKUs, respectively, with 4 becoming the 18th).While those two games launched in September, 4 returns to the November slot the series’ first two games occupied – a crowded space, what with the ‘event launches’ of Assassin’s Creed III and Call Of Duty: Black Ops 2 bookending it, and Hitman Absolution to follow in a fortnight, all of which could have chipped away at potential sales.Borderlands 2 has re-entered the top ten following a TV advertising deal, while Medal Of Honor: Warfighter continues to lose ground, slipping to number 4.LittleBigPlanet Karting was the only other new entry this week, making a lacklustre debut at number 24.01. Halo 4 (Microsoft)
02. Assassin’s Creed III (Ubisoft)
03. FIFA 13 (EA)
04. Need For Speed: Most Wanted (EA)
05. Football Manager 2013 (Sega)
06. Skylanders Giants (Activision)
07. WWE 13 (THQ)
08. Borderlands 2 (Take-Two)
09. Just Dance 4 (Ubisoft)
10. Medal Of Honor: Warfighter (EA)
Amazon is on the cusp of launching the complete Kindle line in Japan, so it's only right that the online retailer fine-tune its firmware for local reading habits. A new version 5.3.0 update for the Kindle Paperwhite puts much of that focus on Manga, introducing options to fit the stylized comics to the screen as well as tweak their page refresh interval separately from that of plain old text. Wider efforts to improve font rendering touch on Japanese characters in the process. Even if we're a little rusty with our hiragana, there's still some usability tweaks in store: settings are accessible directly from the menu, readers can purge their home screens of recommended content and sample books now sync their position relative to the full title. The bookworms among us that are too impatient to wait for an automatic update to 5.3.0 can hit the source link for the full skinny and a fast-track installation through USB.
Fancy a flutter on a Friday afternoon? Bookies Paddy Power and Ladbrokes have revealed to MCV their contenders for the best-selling game this Christmas.
Both firms are backing Activision FPS Call of Duty: Black Ops 2, with FIFA 13 the favourite for second place. Other potential winners include Wii U launch title New Super Mario Bros U, Medal of Honor, Assassin's Creed and Halo 4.
Such is the hype and momentum behind Black Ops 2, Paddy Power is even taking bets on what will be Christmas No.2, favouring EA's FIFA 13 at 4/9. The bookie is now taking betsthrough its website.
Alex Donohue of Ladbrokes said: "It would be one of the upsets of the year if Black Ops didn't land the top spot this Christmas."
Paddy Power is taking bets on the following:
1/20 Call Of Duty: Black Ops II
8/1 FIFA 13
20/1 Medal of Honour: Warfighter
28/1 Borderlands 2
33/1 World Of Warcraft: Mists Of Pandaria
33/1 Assassin's Creed III
33/1 New Super Mario Bros. U
Or for those who want a bit more of a challenge, the COD-less odds are as follows:
4/9 FIFA 13
6/1 Medal of Honour: Warfighter
8/1 Assassin's Creed III
16/1 World Of Warcraft: Mists Of Pandaria
16/1 Borderlands II
16/1 New Super Mario Bros.
Meanwhile, Ladbrokes is offering the following odds:
1/8 Call of Duty: Black Ops II
12/1 New Super Mario Bros U
14/1 Halo 4
16/1 Assasin Creed III
16/1 FIFA 13
25/1 LEGO Lord of the Rings
25/1 Hitman Absolution
33/1 Medal of Honor: Warfighter
33/1 WWE '13
50/1 Just Dance 4
50/1 Football Manager 2013
50/1 Need for Speed Most Wanted
66/1 Far Cry 3
100/1 Madden NFL 13
100/1 Forza Horizon
100/1 Diablo 3
100/1 Resident Evil 6
100/1 Dishonored
Hi all one of the things i enjoy in life is a pint of Real Ale, in the UK there are thousands of ales up and down the country. My new website will post news of new releases, events, reviews and the latest bargains in the supermarkets for all alcohol ranging from Real Ales to Bitters, Lagers, Ciders, Wines, Champagnes and Spirits.
The NPD Group has released its October US retail report, showing another major YOY decline in overall sales.
The market saw a 25 per cent drop to $755.5m for the period compared to the $1bn made in October 2011.
The group is quick to point out that the data only makes up around 50 per cent of the total consumer spend, with plans for a full Q4 US Games Market Dynamic report that will include digital and other non-retail figures.
They also believe that despite the overall decline, the month to month numbers indicate momentum as the end of the year approaches.
“While we saw declines in hardware unit sales across all platforms year-over-year, when looking at average sales per week versus September, several consoles realized higher sales: The 360, PS3, NDS and 3DS. This is a sign of increasing momentum as we move into the holiday season,” said NPD analyst Liam Callahan.
Hardware sales accounted for $187.3m during the month, a decrease of 37 per cent from the $295.9m earned in the same period last year.
Xbox 360 came out ahead yet again, selling 270,000 units during the period and claiming over 40 per cent of the market in its division for the 20th consecutive month according to Major Nelson.
Accessories continue to be fueled by Skylanders, showing a five per cent increase over October 2011 with $135.6m this time around versus $129.6m.
Software sales were down by 25 per cent overall, $432.6m compared to $576.8m in October 2011 – though portable software sales specifically showed a 37 per cent growth.
NBA 2K13 finished ahead on the top ten games, as the game according to Callahan: "outsold last year's 2K12 by over 60 per cent in both dollars and units."
Here’s the top ten for the month:
If you believe the boss of developer Crytek, then games consoles are facing a crisis.
The firm’s CEO Cevat Yerli says that its three upcoming console titles – Homefront 2, Crysis 3 and Ryse – will be its last £50 products. After then it’ll focus all its efforts on creating free-to-play games.
And he is adamant that if Sony and Microsoft don’t adapt to this new business model, then the console market will die.
“This will be the last console generation,” he tells MCV.
“If consoles don’t join free-to-play gaming aggressively from now on, then it will be outpaced by PC and mobile. If they don’t adapt they are not going to survive.”
Companies have tried to engage the platform holders in the past with its free titles. Cambridge-based Jagex has attempted to bring its free MMO RuneScape to consoles, but has met resistance.
“Free-to-play would have been huge on consoles if the console owners had embraced it,” says Jagex chief marketing officer David Solari.
“It’s still likely free-to-play will be a big part of the console offering in the future but they will need to adapt and be willing to allow their users to play with players on other platforms which seems to be a step too far currently – this was certainly the case for us when we were talking to them about RuneScape.” FREE PLAYS
Sony and Microsoft are not oblivious to free-to-play. Microsoft has developed several freemium PC games, including Age of Empires Online and Microsoft Flight. And Sony’s PlayStation Home virtual world is built on that model. Only Nintendo has resisted the micro-transactions entirely – although the platform holder has developed free software in the past.
Yet this is beginning to change this Christmas. Both Xbox and PlayStation are making more tentative steps into the free-to-play market. Xbox has launched F2P game Happy Wars (although it requires an Xbox Live subscription so partially misses the point).
But the big one comes from Eve Online developer CCP, who are creating a free micro-transaction-based FPS called Dust 514 for PS3.
“Sony working with CCP and making that game is a great step forward, and they should be applauded,” adds Yerli. “If Sony embraces free-to-play as a major way for PlayStation, that could be the key console. I would love to see a generation that supports free-to-play, because we will support it.” DUST-TO-DUST
David Reid is the chief marketing officer at CCP, and in many ways he is the ideal candidate to discuss freemium on consoles. Not only does he have extensive free-to-play experience from his stints at Trion Worlds and NCsoft, he is also a former marketing executive from Xbox.
“A lot of the big disruptions in our industry start on the PC,” observes Reid.
“It’s where online gaming began. It’s where genres like FPS were born. Clearly, it’s where the MMO was born. But over time some of these things get much bigger on the console and our belief has always been that free-to-play is going to be big on the console. We’re very pleased to be in a position to be first with a big triple-A game out there. We look at 2013 and expect there will be a lot more. It won’t be such a new idea next year.”
Early signs suggest that Reid is correct. Shortly after we spoke to CCP, Sony announced that its SingStar series will be adopting a freemium-style business model.
Reid believes Sony’s aggression in this area will pay dividends for the platform holder.
“It is always natural that the challenger in the console business is going to be more ambitious and take a few more risks than the leader. Last generation I was at Xbox and we were having our arses handed to us three to one. And Xbox was the one that was trying to do these crazy new things, what with Xbox Live and working with developers and their different ways. Five years later, things have changed and now Sony is being more aggressive and thinking more about how things are going forward. It is a very cyclical business and it feels like we are coming around to another big turn again.”
There are still some challenges around free-to-play on console, such as the need to migrate customers from one generation to the next, plus the ability to play with gamers on other platforms.
But these issues are being addressed. Sony and Microsoft may be late to the party, but they’re catching up.
Reid concludes: “I think in the console space it was hard for some of the big publishers to get their brains around it until they saw some of the PC success stories, like League of Legends and World of Tanks.
“So now the console guys are saying that this is a big opportunity. You can argue that if they had a way to monetise Call of Duty differently, then you’d have a lot more people playing and a lot of people willing to pay more than $60.
“It is a bit of a foreign concept, having a game with five or 10 million players, with 80-plus per cent never spending any money. In the console space that has never happened. But we are seeing the change
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