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Ouya Released to Early Backers, Retail Launch in June

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April 1, 2013

Gaming startup Ouya, which raised more than $8 million last June via Kickstarter, announced it will release its $99 game console to retailers on June 4. The affordable Android-based box could encourage innovation and disrupt the TV gaming market, by allowing developers to create inexpensive games. Wired had a chance to play with the new device at design firm fuseproject, where Yves Behar created the metal cube that houses Ouya. Continue reading Ouya Released to Early Backers, Retail Launch in June

EA and Maxis Defend MMO After SimCity Launch Problems

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March 22, 2013

Electronic Arts’ long awaited release of “SimCity,” the first new edition in 10 years, was abruptly halted two weeks ago when servers gave out, unable to handle the influx of gamers. “SimCity” was not designed with an offline mode, and recovery efforts have been challenging. Since the launch, both EA and developer Maxis have been working hard to fix the situation and communicate its ongoing efforts with gamers. Continue reading EA and Maxis Defend MMO After SimCity Launch Problems

Game News: Electronic Arts CEO Riccitiello to Step Down

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March 20, 2013

Electronic Arts chief exec John Riccitiello is set to resign in the wake of the videogame company’s disappointing earnings and stock figures. EA announced that Larry Probst, current EA chairman and former CEO, would serve as executive chairman while the board searches for a replacement for Riccitiello. In a letter to his employees, Riccitiello took responsibility for the “shortcomings” in EA’s recent results. Continue reading Game News: Electronic Arts CEO Riccitiello to Step Down

Veronica Mars Project Sets New Record for Crowdfunding

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March 15, 2013

A crowdsourced fundraising campaign to produce a film version of the popular 2004-2007 TV detective show “Veronica Mars” has set a new record for the fastest growing Kickstarter campaign, reaching the $1 million mark in just over four hours. In fact, the entire funding goal of $2 million was achieved in less than 10 hours (at press time, the project’s Kickstarter page listed a total of $3,306,914 from 50,094 backers). Continue reading Veronica Mars Project Sets New Record for Crowdfunding

Nintendo Network ID: Pros and Cons of Wii U Restrictive DRM

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December 12, 2012
  • “The new Nintendo Network ID system that debuted on the Wii U is a sign of progress for a company that has, historically, not shown a lot of savvy in setting up its online systems,” according to Ars Technica.
  • With Wii U, users can connect up to 12 separate Nintendo Network IDs to a single system.
  • “The new Wii U eShop includes many retail games for download on the same day they reach stores, and does away with the ‘Wii Points’ virtual currency that characterized Nintendo’s previous console,” notes the article. “The company has even promised to roll out a cloud save feature sometime next year.”
  • All of this would allow users to access their own games when at a connected friends’ house. However, as the article explains, “it also means a game downloaded to the Wii U in the living room won’t be playable on a second system in the kids’ room, even if the same password-protected Nintendo Network ID was used on both systems.”
  • “It also means that if your system breaks down, you can’t just go buy a new one (or borrow one from a friend) and immediately recover your content using your account. Instead, you have to go through Nintendo’s official repair process, waiting up to two weeks for the system to be returned just to maintain the system-locked license data.”
  • “I understand that Nintendo is worried about piracy, but its not like Microsoft, Sony, Valve, Apple and Google aren’t,” writes Kyle Orland for Ars Technica. “Yet those companies have all found their own ways to balance protection for their online stores with the ability for users to access that content in their own way.”

Financial Analyst Weighs Pros and Cons of Zynga $7 Billion IPO

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December 5, 2011
  • In an analysis of Zynga’s pricy IPO, Forbes contributor Peter Cohan advises investors to “avoid this stock.”
  • “Social media gaming sweat shop Zynga filed to sell 14.3 percent, or 100 million, of its shares, valuing the lot at $7 billion,” he writes. “Should you pay the price to get in on its IPO? No.”
  • Zynga does have some things working in its favor: 1) It operates in the highly profitable virtual goods market that is expected to more than double by 2014; 2) It has a competitive advantage with the largest player audience on Facebook and 383 percent annual growth rate from 2008 to 2010; and 3) It has the ability to sustain its leadership position. “In October, Zynga announced Project Z that would lessen Zynga’s dependence on Facebook users. If that and its effort to go mobile work, Zynga would be in a stronger long-term position,” suggest the article.
  • So why not invest? Zynga’s IPO valuation is too high relative to its competitors; its growth is slowing down; and, its net income shrank for the majority of 2011 leaving “razor thin” 3.7 percent net profit margins. “No amount of sweat-shopping will fix Zynga’s slowing growth,” reports Cohan.

Game Consoles May be Aging, but PlayStation, Wii, Xbox Still Selling Strong

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December 2, 2011
  • Despite analyst speculation that video game consoles may be in jeopardy due to the increased capabilities and growing popularity of smartphones and tablets, “Microsoft’s Xbox and Nintendo’s Wii sold in record numbers last week as Americans kicked off their holiday shopping,” reports AllThingsD.
  • Some 960,000 Xbox 360s were sold last week and 500,000 Wiis were sold the day after Thanksgiving. Game consoles are still experiencing strong sales five and six years after they were introduced.
  • “It’s difficult to imagine any other consumer hardware that could attract that kind of demand after such a long period of time,” suggests the article.
  • Blockbuster game titles like Activision’s “Call of Duty” game, which grossed $775 million in its first five days, continue to juice the market.
  • Motion-controls such as Wii and Microsoft’s Kinect open up the market beyond gamers to a family market.
  • And, as previously reported on ETCentric, game consoles are becoming entertainment centers for streaming video, music and other media content through partnerships with providers such as Netflix, Hulu, ESPN, HBO GO and others.

Verizon Announces FiOS TV Content Coming to Microsoft Xbox

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December 1, 2011
  • Verizon has announced a new feature and related promotion that suggests it is “taking a much more active interest in video games for both distribution and new customers,” reports Mashable.
  • “FiOS customers who subscribe to both FiOS TV and FiOS Internet and are Xbox LIVE Gold members can use their Xbox consoles to watch select live FiOS TV channels. No extra hardware,” explains a post in the Verizon Forum. “Plus, for the first time, Kinect for Xbox 360 will be integrated into the TV experience, allowing customers to use voice and gesture commands to control their TV viewing.”
  • Initially, only 26 channels will be available starting in December.
  • For $89.99, you can get triple-play service, a limited Xbox LIVE Gold membership and a sponsor spot for Machinima’s Gamers’ Choice Award.

Will Mission Impossible Facebook Game Draw Fans?

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November 23, 2011
  • After phasing out console games relating to the “Mission: Impossible” series, Paramount Pictures has created a social game on Facebook to promote the franchise.
  • The game, which introduces an entirely new storyline, awards players with real prizes and new content. Paramount is using the game to give out premiere tickets in addition to other promotional material.
  • The studio is working with Funtactix, a social game developer, on the project.
  • According to a related article from TheNextWeb, Paramount is also hoping to generate buzz by making it possible to rent all previous iterations of the franchise directly from the movie’s Facebook Fan Page. Each movie costs 30 Facebook credits ($2.99) to rent for 48 hours.
  • “Utilizing the sharing capabilities and Facebook ticker, which will alert your friends to the fact that you’re watching one of the movies, could help build excitement for an opening weekend that will destroy the last,” suggests TNW.
  • Miramax launched a similar Facebook rental model a few months ago. TNW wonders if Facebook rental services will take off in the face of customer comfort and loyalty to Netflix and other streaming services.

Disney Tests the Video Game Waters with Possible Character Franchise

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November 23, 2011
  • The Walt Disney Company is working to replicate the success of “Angry Birds” with its new “Where’s My Water?” iPhone and iPad game.
  • Since its September 22 release, the game has proven rather successful, even taking the top spot from “Angry Birds” for three weeks.
  • “The logic is pretty simple; games are a cost-effective way of not only testing new characters, but also building a fan base for a potential movie,” reports Market Intelligence Center. “Developing the game cost a couple of hundred thousand dollars and about seven people. The time to build the game was less than eight months.”
  • The article points out that the financial risk is minimal when compared to a feature animation project: “Animated movies can easily run in excess of $100 million to produce, so each one is big gamble. If the game continues to find success, Disney can start to plan an animated movie around the game knowing they already have a fan-base for the movie’s characters. Disney will also be able to use its merchandising muscle to create and sell all kinds of toys and clothes around the game’s characters before it ever gets a movie into theaters.”
  • ETCentric staffer Phil Lelyveld adds: “Entertainment technology must now be defined VERY broadly. The ‘Halo II’ launch incorporated thousands of calls to pay phones into a coordinated transmedia market development campaign.”

Is Modern Warfare 3 the Most Successful Franchise of All Time?

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November 15, 2011
  • “Call of Duty: Modern Warfare 3” has set a new entertainment launch record, selling 6.5 million units within 24 hours after its release last week. The first-person shooter raised $400 million in sales revenues in the Unites States and United Kingdom.
  • This marks the third consecutive sales record for game publisher Activision Blizzard with the “Call of Duty” series. “Call of Duty: Modern Warfare 2” sold 4.7 million copies during its first day of availability in 2009, and last year’s “Call of Duty: Black Ops” hit 5.6 million in its first 24 hours.
  • “We believe the launch of ‘Call of Duty: Modern Warfare 3’ is the biggest entertainment launch of all time in any medium, and we achieved this record with sales from only two territories,” said Activision Blizzard chief exec Bobby Kotick.
  • “Other than ‘Call of Duty,’ there has never been another entertainment franchise that has set opening day records three years in a row,” he added. “Life-to-date sales for the ‘Call of Duty’ franchise exceed worldwide theatrical box office for ‘Star Wars’ and ‘Lord of the Rings,’ two of the most successful entertainment franchises of all time.”

EyeAsteroids from Tobii: Will Eye Control be the New Motion Control?

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November 8, 2011
  • Stockholm-based Tobii Technology is introducing a one-off arcade machine called EyeAsteroids, a game that recognizes eye movement as its control mechanism, dismissing “the idea of using joypads, joysticks or flailing your arms around like a whirligig in order to play games,” reports Pocket-lint.
  • “EyeAsteroids is similar to the classic arcade unit from 1979, but with no physical control mechanism.”
  • The company, known for its eye-tracking communication aids for those with special needs, claims the technology is faster than gesture recognition. According to its website, the company provides related technology for research fields and computer controls in areas including hospitals, diagnostics, vehicle safety, gaming and computer manufacturing.
  • “We believe the addition of eye control to computer games is the most significant evolution point in the gaming industry since the introduction of motion control systems, such as the Nintendo Wii,” said Henrik Eskilsson, Tobii’s CEO. “Gaze interaction is fast and intuitive, adding an entirely new dimension to video game interaction.”
  • The Tobii EyeAsteroids prototype is starting its world tour in New York City today and will be on display at January’s CES in the South Hall.

Wii Surpasses PS3 as Top Video Game Brand for Young Consumers

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November 8, 2011
  • Nintendo Wii is the most popular video game console with young Americans (ages 8-to-24), according to a new Harris Interactive survey.
  • Nearly 6,000 young consumers participated in the study conducted in August 2011.
  • The poll also lists Apple as the top brand among the 13-to-24 demographic for computers, mobile phones and tablets.
  • “It’s interesting that the Nintendo Wii rated so highly given that it’s been the lowest selling console for the last year,” reports IndustryGamers. “This shows that Nintendo still has plenty of brand equity among consumers, and with the right products and marketing there is no reason they can’t be the #1 selling console again. The dangers are also clear in this study, as Apple leads in mobile phones and tablets, where games are one of the top categories that seem to be having an effect on handheld console sales.”

DRM Effectiveness: Is Piracy a Pricing Issue or a Service Issue?

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October 27, 2011
  • Valve co-founder and managing director Gabe Newell has reiterated his take on the issue of piracy. Valve is the creator of game platform Steam that distributes games to a global community of 35 million players.
  • Newell believes that DRM does not work and pirates are not necessarily always seeking free content.
  • “One thing that we have learned is that piracy is not a pricing issue. It’s a service issue,” he says. “The easiest way to stop piracy is not by putting antipiracy technology to work. It’s by giving those people a service that’s better than what they’re receiving from the pirates.”
  • “Most games available on Steam are easily found in pirated form on the torrent sites,” writes ETCentric contributor Nick Nero. “Even if you buy the game, many users download the torrent because most DRM requires the disc to be present which slows down the game startup and level load/access times.”
  • “What keeps me as a Steam customer is their cloud service,” adds Nick. “I can download any of my games to another PC, I can backup my games to encrypted physical media, my game saves are stored in the cloud, and I can easily find my friends for mulitplayer. The service layer is what brings in the customers.”

Nintendo: 3DS and Wii to get Hulu Plus, 3D Video Capture for Handheld

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October 24, 2011
  • By the end of the year, both the Wii and Nintendo 3DS will have access to TV shows and movies via the $7.99 per month Hulu Plus service (but only in 2D).
  • Hulu Plus joins Netflix in offering content on the Nintendo devices.
  • Also, the 3DS will get a software update at the end of November that allows 3D recording for up to ten minutes, and the ability to “stitch together stereoscopic images for stop motion animation that jumps out of the tiny screen at you,” suggests Engadget.
  • “With both Hulu and Netflix in tow, as well as the ability to create your own content, the 3DS is actually turning into quite a powerful little portable.”

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