Buoyed by increased sales of its Switch console, Nintendo reported operating profit of $2.2 billion (229.7 billion yen), its best quarterly earnings since 2008. Analysts previously estimated the quarter’s earnings at 189.6 billion yen. Nintendo raised its annual forecast, again, to a sale of 26.5 million Switch units, up from 24 million. It also pegged its operating profit forecast 24 percent higher, due to increased sales during the COVID-19 pandemic and hit game “Animal Crossing: New Horizons.” Continue reading Nintendo Raises Forecasts Following Strong Holiday Quarter

With the coronavirus pandemic, more people are staying at home and, according to Newzoo, 700+ million of them are playing video games on consoles. The market research firm said the console industry is slated to rake in $45 billion in revenue this year. Microsoft and Sony have unveiled new consoles, and Niko Partners analyst Daniel Ahmad stated that consoles are a “much more profitable business” than a decade or more ago, especially since digital distribution of games enables the game companies to enjoy bigger profit margins than before. Continue reading Game Consoles See Revenue Growth with Digital Distribution

Microsoft’s sales rose 12 percent to $37.2 billion, with a net profit of $13.9 billion for Q1 of its fiscal year, exceeding Wall Street expectations. Its cloud unit Azure’s revenue jumped 48 percent from the same quarter last year, driving the quarter’s results, said chief financial officer Amy Hood. Much of the dramatic leap in Azure’s use can be attributed to online demands created by the COVID-19 pandemic. Likewise, the company’s gaming content business showed a 30 percent increase in sales from last year. Continue reading Microsoft Q1 Revenues Rise in Part Due to Azure Cloud Unit

Unlike Apple, which continues to keep tight control of its App Store, Microsoft wants to give developers more control. The company’s deputy general counsel Rima Alaily revealed 10 principles for the Microsoft Store. They include letting developers sell different services on their apps and websites and giving them and users access to third-party app stores. Microsoft, whose Store has always been more open, said the principles are aimed to “promote choice, ensure fairness and promote innovation.” Continue reading Microsoft Empowers Developers with 10 App Store Principles

Following a series of leaks, Microsoft has now confirmed the existence of another new game console, the Xbox Series S, which it dubs the smallest Xbox ever (60 percent smaller than the Series X). The company said the “slim, white console” will debut “soon,” provide “next-gen performance” and be priced at $299. Reports suggest that Series S and Series X will be available for purchase on November 10 and hint that many Series S features are similar to those of Series X, but with less disc drive and less powerful CPU and GPU. Microsoft stated that the Xbox Series X “will be four times more powerful than its predecessor, the Xbox One X.” Continue reading Microsoft Confirms the Debut of $299 Xbox Series S Console

Nvidia debuted its 28-billion transistor Ampere-based 30 Series graphics chips for PC gamers, ideal for Microsoft and Sony’s next-generation consoles to unveil by the holidays. The 30 Series GeForce RTX chips (available September 17) are comprised of the RTX 3070 ($500), 3080 ($700), and 3090 ($1,500), with second generation RTX (real-time ray tracing graphics). According to chief executive Jensen Huang, there are “hundreds of RTX games” in development, joining “Minecraft,” “Control” and “Wolfenstein: Youngblood,” which already feature RTX. Continue reading Nvidia Debuts GeForce RTX Chip Series with Lower Latency

Sony debuted two versions of its PlayStation 5 game console as well as new games, in advance of the holiday season. The PS5 Digital Edition, the second version, omits the Blu-ray Disc drive, and its download-only feature could eventually impact Amazon, GameStop, Walmart and other retailers. The Digital Edition also sports a sleeker design and, potentially, a lower price. New games include the latest “Spider-Man” and “Gran Turismo” titles and an enhanced version of Take-Two Interactive Software’s “Grand Theft Auto V.” Continue reading Sony Reveals Details on PlayStation 5 Consoles, New Games

Microsoft expected the original $10.75-$11.15 billion Q1 forecast for its personal-computing business to be negatively impacted by COVID-19 disruptions, yet the company reported that its PC group generated $11 billion in sales as consumers continue to stay at home. The PC group benefited from an increased demand for remote work and education solutions, as well as a 2 percent rise in Xbox sales, a solid increase from a drop in the previous quarter. Microsoft’s PC business includes licensing revenue from PC sales, its Xbox video-game platform and popular Surface laptops. Continue reading Microsoft: Remote Work Needs Outpace Supply Chain Issues

Last week, Epic Games revealed its plans to fund, introduce and market new multi-platform video games, under the new Epic Games Publishing division. Epic Games stated that it will fund “up to 100 percent of all game development costs … studios will retain 100 percent control of their intellectual property … [and] once costs are recouped developers will earn at least 50 percent of profits.” Epic games also acquired Cubic Motion, which offers automated performance-driven facial animation technology. Continue reading Epic Games Becomes Game Publisher, Acquires Cubic Motion

Market research company SuperData reported that, in 2019, the game industry grew 3 percent to $120.1 billion, of which Epic’s “Fortnite” accounted for $1.8 billion, making it the biggest game for the year. The 2019 revenue for “Fortnite” was a 25 percent drop from the previous year’s record-breaking $2.4 billion. Noting that game industry growth is cooling off, SuperData estimated that it will rise 4 percent to $124.8 billion in 2020. The data includes augmented reality, console games, eSports, mobile, PC and virtual reality platforms. Continue reading SuperData: Game Industry Generated $120.1 Billion in 2019

According to a study on “2019 Future of Gaming” from the Consumer Technology Association (CTA), 70 percent of Americans aged 13 to 64, an estimated 192 million people, currently play electronic games. This significant demographic shift over the last ten years has largely been sparked by the introduction of live game streaming services, which have added a social and connected experience. The study defined gamers as those who played video games at least one hour over the past three months. CTA published a second report on the growth of eSports. Continue reading CTA Reveals Compelling New Stats for Gaming and eSports

Gaming is available across multiple devices (such as consoles, phones, tablets, PCs) and numerous services, including Google Stadia and Microsoft Project xCloud, and subscription mobile gaming from Apple and Google. Most of the latest offerings have involved software and services, with new hardware releases expected for next year. For the holidays, a Microsoft Xbox One or Sony PlayStation 4 are good choices; the latest models, with better graphics and more storage than the 2013 versions, will go as low as $150 and $200, respectively, on Black Friday. Meanwhile, streaming services are improving and may replace the need for consoles among some gamers. Continue reading Google Stadia, Microsoft xCloud Advance Game Streaming

Sony Interactive Entertainment has so far said little about its PlayStation 5, set to debut during the 2020 holiday season. The company was even a no-show at E3, where Microsoft introduced its Xbox One successor, Project Scarlett. Sony had stated that PS5 would support ray tracing, just revealed to be via a GPU hardware acceleration, rather than a software tweak. The console will also feature a solid-state drive, which will dramatically speed up loading time, by avoiding the need to duplicate game assets, also saving space. Continue reading Details Emerge About Sony Interactive’s 2020 PlayStation 5

Media center app developer Plex signed a deal with Warner Bros. Domestic Television Distribution to add an unspecified number of free movies and TV shows to its app when it debuts ad-supported video streaming later this year. Plex hopes to evolve its app into a “one-stop shop” for digital media, with plans to resell video subscription services and add transactional VOD in 2020. Plex chief executive Keith Valory noted that you “shouldn’t have to go to a lot of different apps to get the content you care about.” Continue reading Plex Inks Deal with Warner Bros. for Movies and TV Shows

In a Federal Trade Commission workshop, Nintendo, Microsoft, and Sony, the biggest game console manufacturers, have vowed to self-impose regulations requiring video game developers to disclose the odds for loot boxes. The FTC is looking at loot boxes, a system in which players buy “random” packages of in-game items without knowing the odds of getting items they actually want. The trade group Entertainment Software Association (ESA) plans to add warning labels and other policies related to loot boxes. Continue reading Game Industry Takes Steps to Address Loot Box Concerns