Saturday, December 23, 2006

Video game console shortage could linger into '07 (Reuters)

 

A shopper looks at his Sony PlayStation 3 console at a Best Buy store in Duluth, Georgia, November 17, 2006. Shoppers are standing in lines to snap up Sony's PS3 and Nintendo's Wii as they become available, and some analysts do not expect shortages to ease until March or later. (Tami Chappell/Reuters)Reuters - Shoppers are standing in lines to snap up Sony Corp's PlayStation 3 and Nintendo Co. Ltd.'s Wii video game consoles as they become available, and some analysts do not expect shortages to ease until March or later.

Source: Video game console shortage could linger into '07 (Reuters)
Originally published on Fri, 22 Dec 2006 22:00:40 GMT

Friday, December 22, 2006

Red Vs Blue Sees Green

 

The creators of the cult comedy series turn their sights on the gaming business.

Author: forbes
Added: December 20, 2006

Source: Red Vs Blue Sees Green
Originally published on Wed, 20 Dec 2006 21:45:16 GMT

Mischa Barton in West Hollywood

 



Source: Mischa Barton in West Hollywood
Originally published on Wed, 20 Dec 2006 14:51:00 GMT

360 vs. PS3 vs. Wii - The Designer's Perspective

 

Gamasutra is running a piece today written by Ernest Adams, a frequent contributor to the site and an amusingly opinionated game designer. He writes to weigh in on the console war debate from the perspective of a game designer. He runs down the usual list of pros and cons for each machine, and then digs into the most creative aspects of each machine. Finally, lays out what he sees as the end result of this hardware generation: "So who, at the end of the day, will be the also-ran in this generation of consoles? On the global scale, I'd say it could well be neither the PS3 or the Wii, but the XBox 360. The PS3 will win over the hardcore gamers who have to have the fastest, most amazing machine available. The Wii will skim off the younger players and those who don't have as much money to spend. Both have the advantage of being made in Japan, so they'll crowd the XBox right out of that market. In the US and Europe, it's harder to say, but I see the XBox's early start as more of a liability than a benefit."

 

Source: 360 vs. PS3 vs. Wii - The Designer's Perspective
Originally published on Fri, 22 Dec 2006 19:08:00 GMT

=====================================================

I'm sorry Mr. Adams.  I would like to know what you are smoking, and where might I get some?  Do you not watch the Internet?  Do you not see the marketing treads going on?  Do you not have your pulse on the game?

"N64 was a strategic mistake"
Yes and no.  Nintendo took a gamble that people wouldn't want to wait 2-3 minutes for a game to load.  Does anyone remember the HORRIBLE load times on Battle Arena Toshiden?!  Oh wait.. that really hasn't changed much has it.  *cough* Ape Escape for the PSP.

The main problem the N64 had was the lack of titles up front, and Nintendo pulling the plug on the machine just a tad to early.  Many great games where made for the N64 and sold more then most of the PS1 games.  007 and Perfect Dark, just to name a couple.  The N64 controller is still thought as being one of the best controllers made for a home system.  But really, the N64 just couldn't compete with Sony's one PS1 killer app. Final Fantasy 7.

"PS3, which is undoubtedly the most powerful game console ever built"

undoubtedly?!  My ass. This is where I would like to know what you are smoking and where I might get some.The PS3 is a pile of crap produced by a company that using virus marketing and proven to flat out LIE to it's customers all for the sake of the mighty dollar.  The Cell technology is unproven.  It's not even RUNNING as a 'true' cell system (7 cores, not a true 8), there's been over heating problems, there has been problems with the system even reading Blu-Ray DVD's, you need to PATCH the firmware before you can even PLAY some games (out of the box)  the system doesn't even include the cables needed to produce games in true HD and above and beyond that, have you seen the screen shots comparing games running in emulation mode on a PS3 VS PS2 native?  They look horrid.   The PS3 is a $600 Blu-Ray player that just happens to play games. 

"good games alone cannot guarantee a console’s success"
Total bull shit.  It's ALL about the games.  Perfect example here is the PS1.  Horrible graphics.  Horrible Sound.. Yet sold millions.  Why?  Final Fantasy 7.  SOLID game, and one of the best ever created.   The Atari 2600.  HORRIBLE graphics and sound again.  But again, sold millions (and caused the great game crash of '83.. but that's another story)   The Dreamcast STILL has a following, because of the games.   Where as the PS1 is pretty much dead and gone.. why is that?

"(the Japanese are reputed to have ignored the first XBox because it was just too big and clunky for their apartments)"

Yet, the PS3 is bigger then the original XBox and has all the features that Sony stated didn't matter.. like a Hard drive.. OH wait..it's not doing very well either.. Perhaps you've got a point on the 'form factor'

"the PS3 is a programmer’s and a filmmaker’s dream."
HUH?  what does a filmmaker have do to with the price of eggs in China?  Programmers dream?  what about costs of porting code from one platform to another?  (Something you don't have a problem with between the PC and the XBox 360)  What about all the programmers saying the PS3 is a female dog to code for and in some ways worst then the PS2 which has been stated more then once to be a very hard toolset to code with.

Besides things like: "inverse kinematics" and "physics" are done by the CPU, 9 times out of 10 the "visual effects" are done by the GPU.
two completely different systems, and I've seen demos on an old C64 with 48k of RAM blow away something done on a PC.   It's all about code, HOW you code it, and how to use the hardware to the max.

Besides, at this stage, the advantage that the PS3 has over the 360 (or the PC for that matter) is TOTAL theory.  Right now, most of the games that are ported between the PS3 and the 360 look better on the 360.

"the PS3 is evolutionary"
So taking other company's ideas and fusing them together is called evolutionary now?  Huh.. I just thought it was stealing.

"[the Wii controller] takes away functionality found on other consoles."

Duh.  That's because the Wii is being what it was designed to be.  A Game console.  Not a multi-media machine that happens to play games.  That's the MAIN point of where the 360 and the PS3 and the Wii are divided.  The Wii is a pure game console.  The 360 is a game console that can act as a multi-media device, and the PS3 is a multi-media device that also happens to play games. 

"they can’t save the Wii if the ordinary Wii Remote tanks with the consumer."
.. and the Wii is out selling the PS3 and has been since it was introduced.  I don't think that's a problem.

"Sony’s most revolutionary gaming innovation was not the PS3, but the Eye Toy."
this is a joke.. come on..it's got to be a joke.  what's the punch line? the PS3?  HA!!!  funny.  Web cams have been around forever.  The Tech. of the Eye Toy has also been around forever.  I wouldn't call it revolutionary by a long shot.   The Wii controller?  THAT'S revolutionary.  Hmm.. makes me wonder if Nintendo didn't take the idea for the Wii controller off the Eye toy.. *ponder*

"Now, longtime readers of this column will know that I’m not a big fan of hardware-driven game design."

Yet, you are going off about how wonderful the PS3 is?

"So who, at the end of the day, will be the also-ran in this generation of consoles? On the global scale, I’d say it could well be neither the PS3 or the Wii, but the XBox 360. The PS3 will win over the hardcore gamers who have to have the fastest, most amazing machine available. The Wii will skim off the younger players and those who don’t have as much money to spend. "

Dude.. friend.. you've got it all basakwards.  You're making the mistake of trying to Compare next-Gen consoles with a Wii.  They are in two separate categories.  The Wii is selling better then the 360 did by a long shot.  There's more support for the Wii.  The 360 is still lacking on one HUGE area... The Games And the PS3 was released DOA.  The 'huge' sales of the PS3 where due to people buying them up to sell on Ebay.  Right now the Wii is selling better then the PS3. which is just funny.

SOOOooooo.. at the end of the day, who's winning the NEXT-Gen battle?  the Xbox360.    The PS3 won over the people that would buy a Sony even if it caused cancer, anyone that was in the know stayed WELL clear of that console, and even the number of hard-core Sony diehards looked at the PS3 after getting one saying "WTF?!"

"but I see the Xbox’s early start as more of a liability than a benefit. "
That's only if M$ doesn't kick someone's ass and get some freaking GAMES to the system.  I'm talking real honest to God Console games.  Not PC ports and 'Pac-man'.  I doubt many people spent the money on a 360 just to play Pac-Man over LIVE!  it's called MAME and a PC.. MUCH cheaper.

"but they can no longer claim to be the latest, greatest thing – especially as the PS3 plays Blu-Ray disks out of the box, but HD-DVD is only available for the XBox as an add-on. "

Duh? I assume you've not read any reviews about the piss-poor quality of the Blu-Ray format either?  Even the $600 Blu-Ray player is a wash, due to slow load times. Slow response times, and worse yet, bad image and sound quality.

"The Dreamcast got an early start too, and look how that ended."
That ended because of the lack of marketing of Segas Part.   After the whole "Genesis does what Nintendon't" series, Sega just kinda sat back and figured there name would carry the system.  It also didn't help that Sega really didn't TELL anyone they where releasing the console.

 

A History of Game Consoles, As Seen on TV

 

PC World is running a great retrospective on videogame consoles, looking all the way back to Atari's pong. The best part is, they're doing it via television ads for the systems. The article features highly entertaining blipverts for Pong, the Fairchild, the VCS, the 2600, the Intellivision, the Odyssey, Vectrex, Colecovision, the Atari 5200, and many, many more. From the article: "Gamers were tiring of PONG consoles, and Fairchild Instrument and Camera's Channel F console offered a fresh new alternative. It featured programmable 'videocarts' containing ROM chips and code, as opposed to the dedicated circuits that the Magnavox Odyssey's plug-in cards used. The cartridge concept emerged as an industry standard, and is still used in handheld gaming devices today."

 

Source: A History of Game Consoles, As Seen on TV
Originally published on Fri, 22 Dec 2006 20:38:00 GMT

Thursday, December 21, 2006

The best video game blunders of 2006

 

Have you been wondering what the biggest screwups in the video game industry were in 2006? Well, you can quit worrying and start reading. This is the sort of stuff we'd like to see covered at things like the Video Game Awards. For an industry that is so good at congratulating itself, they sure don't like to admit their mistakes. So, it's up to someone else to do it for them.
Check out this list of the top ten video game blunders, boners, mistakes and gaffes of 2006 from next-gen.biz, and laugh along at some of the highlights from the past year. The Gizmodo story should have totally been number one, though, as Stefan Eriksson has become the official poster-boy for video game idiocy in action after single-handedly killing a company. And a gorgeous Ferrari.
[Thanks, Joe]

Source: The best video game blunders of 2006
Originally published on Thu, 21 Dec 2006 19:55:00 GMT

Pac-Man moves from screens to highways

 

We're not sure what's more impressive ... the artwork left behind, or the daring artists who braved highway traffic to grace the asphalt with their work. Either way, Highway 55 in Minnesota has some hot retro gaming traffic tips on the road.
The state painted large white dots on the roadway to instruct drivers about the dangers of tailgating, and someone came in and promptly dropped a painted Pac-Man on the road, chasing the dots. Kudos to you, highway bandit. Now if you could just fit the ghosts in there, you might be able to make a cross-country phenomenon.
Note: Joystiq doesn't want anyone to get run over while painting their highways, so please be responsible while being irresponsible.

Source: Pac-Man moves from screens to highways
Originally published on Thu, 21 Dec 2006 19:25:00 GMT

Mad Catz finally appoints new CFO

 

logoMad Catz has named journeyman financial exec Stewart Halpern as its newest CFO, replacing Cyril Talbot III who left the position nearly four months ago. Halpern will officially join the company on January 15.
Halpern leaves Rockstar, where he was head of finance, to join the peripheral maker. Previously, he was CFO for Def Jam's holding company Rush Communications. After posting a net loss of $6.7 million back in June, Mad Catz is looking to Halpern to turn things around in the New Year. Good luck with that.

 

Source: Mad Catz finally appoints new CFO
Originally published on Thu, 21 Dec 2006 17:25:00 GMT

Guitar Hero suit settled

 

RedOctane, Activision, and The Ant Commandos bury the hatchet on legal dispute; peripheral manufacturer will continue to offer its own guitar controllers.

Source: Guitar Hero suit settled
Originally published on Thu, 21 Dec 2006 14:18:08 GMT

Wednesday, December 20, 2006

The Games of 2006 Awarded

 

It's almost the end of the year, and various organizations are handing out awards for what has been a very busy year in gaming. The Associated Press handed the top honor to Oblivion, while Gamasutra's Quantum Leap awards gave Wii Sports the nod for bringing the whole family together. Gamespy and Gamespot are still in the midst of handing out the prizes, but you can already check out genre winners at Gamespy, and Gamespot's list of dubious honors for games that only deserve the faintest of praise.

 

Source: The Games of 2006 Awarded
Originally published on Wed, 20 Dec 2006 22:39:00 GMT

Where the $60 for new games goes

Source: http://www.joystiq.com/2006/12/20/where-the-60-for...





With the 20% price hike in PS3 and Xbox 360 games, gamers wonder exactly where it all goes. We hear it is because of the increase in production costs, but we still would like to know the breakdown of where our triplet of $20 bills gets sent. Now, Forbes has given us the skinny on the whole deal, explaining why games like Gears of War are priced at $60.

According to Forbes, $27 of the $60 taking its leave from your wallet
goes toward the actual making of the game; $15 goes toward art and graphics while $12 goes toward gameplay mechanics. Other major
price aspects are the 25% retail markup ($12 from a wholesale $48 per
game) and console owner fee of $7 (Forbes says the PS3 is higher). All
in all, the parties involved (retail and publisher) only get $1 for every
game sold (publishers can boost it up to $3 per game if they sell advertising in the manual or as a pack-in pamphlet). This is, of
course, before all those costs are paid up; after that, they can still
make a nice profit at a $20 price point.

More @ source.

 

Source: Where the $60 for new gamesOriginally published on Wed, 20 Dec 2006 23:15:11 GMT

Monday, December 18, 2006

Litigations That Changed The Games Industry

 

What does litigation mean in the games industry? How far back does it go? And is it necessary? Dr. S. Gregory Boyd returns to Gamasutra with a detailed feature on the history of litigation, as it pertains to games, with examples ranging from Pong to Duke Nukem 3D.

Source: Litigations That Changed The Games Industry
Originally published on Mon, 18 Dec 2006 17:00:00 GMT

New Tomb Raider Game and Movie On The Way

 

According to Eidos exec Ian Livingstone OBE, there is a new Tomb Raider game in the works for next-gen consoles. Apparently, this game "is like watching television", and speaking of video, Livingstone also revealed that another big screen outing for Lara Croft is also in the works. The TR films have taken in about half a billion dollars worldwide since the first movie was released, and that is a ton of dough to give up without trying for a hat trick.

Source: New Tomb Raider Game and Movie On The Way
Originally published on Mon, 18 Dec 2006 20:42:14 GMT

Friday, December 15, 2006

TOCA Feels It

 

Philips amBX

Codemasters have signed a rather…interesting licensing agreement with Philips to use their amBX system, adding ambient lighting and even gusts of heated wind to, apparently, better replicate the act of driving a car.

Featuring explosive damage effects across a huge range of motor sport disciplines, TOCA Race Driver 3 delivers pure heart pounding racing for the PC. The scripted amBX effects delivered through the Philips amBX Peripherals will make the experience of playing the game even more immersive. Racers will feel the wind in their hair through the amBX fans and see the flash of lighting through tree lines, tunnels and landscapes via the amBX LED lights all in the real world around them.

Right. What's next, squirt guns firing at you for submarine games? It seems to me that behind a crash helmet and maybe a windscreen most racers aren't exactly feeling wind rustling through their hair (assuming they have any…hair that is).

Philips Announces amBX License Agreements With Codemasters and Introversion

PC Titles TOCA Race Driver 3, DEFCON and Darwinia Join A Growing List of amBX-enabled Games

New York – December 12, 2006 – Philips today announced that it has reached separate agreements with Codemasters and Introversion to amBX-enable their upcoming games. As a result of the partnerships, Philips will utilize a special scripting language in Codemasters and Introversion titles that will redefine the experience of playing games by extending the game world out of the screen and into the real world. The company will partner with Codemasters to amBX-enable the hugely popular TOCA Race Driver 3 and Introversion, the award-winning creator of Uplink, to amBX-enable the upcoming titles DEFCON and Darwinia. All titles will be available for the PC CD-ROM.

Codemasters and Introversion join an ever-increasing list of video game publishers and developers that have signed on to create amBX-enabled games, including THQ, Kuju Entertainment, Revolution Software and Sumo Digital. Previously announced games that will be specifically scripted to work in tandem with amBX peripherals include Broken Sword: The Angel of Death and Rail Simulator. Additional announcements are forthcoming as Philips is currently in the closing stages of agreements with a number of other high profile companies regarding amBX-enabling games in a variety of genres.

“Codemasters and Introversion are the cream of the UK-based game development community. They’ve recognized both the creative and commercial value that amBX can add, as well as showing that even back catalogue games can be amBX-enabled, extending product shelf life in the future,” said Jo Cooke, Chief Marketing Officer, Philips amBX. “These are three totally different titles that will use amBX in very different ways and, added to existing amBX-enabled adventure and simulation games, demonstrates how adaptable and striking amBX can really be across all genres of PC gaming.”

Featuring explosive damage effects across a huge range of motor sport disciplines, TOCA Race Driver 3 delivers pure heart pounding racing for the PC. The scripted amBX effects delivered through the Philips amBX Peripherals will make the experience of playing the game even more immersive. Racers will feel the wind in their hair through the amBX fans and see the flash of lighting through tree lines, tunnels and landscapes via the amBX LED lights all in the real world around them.

DEFCON is an online, multiplayer strategy game simulating global thermonuclear warfare. The game, inspired by the 1983 cult-classic film Wargames, superbly evokes the tension, paranoia and suspicion surrounding the Cold War era. Arming DEFCON with amBX will allow armchair generals to actually see the blinding light, as their intercontinental ballistic missiles land; feel the ground rumble through the amBX rumble pad as fallout rains down around them; and quite literally blow their enemy’s wigs off, through the force of the explosion entering the room via the desk fans.

Darwinia is a 2006 Best Game nominee at the Game Shadow Innovation in Games Awards and will immerse gamers into a virtual world populated by Darwinian life forms, who are under invasion. Darwinia will also take full advantage of the amBX LED light, desk fan and rumble peripherals to extend the game world out of the screen and into the player’s game room.

“As a small developer you don't have the time and resources to play around with content and photorealistic graphics, all your energy goes into creating a mood, an unforgettable experience,“ said Thomas Arundel, Commercial Director, Introversion. “With DEFCON we had tried to enhance the gameplay by concentrating on simple Wargames-inspired graphics and a very evocative audio soundtrack. Teaming up with amBX has given us an opportunity to take DEFCON to the next level, to really make you feel like you are the General conducting the whole messy business from your own bunker.”

"amBX is a really exciting prospect from a developer point of view, simply because it allows for an added field of creativity when making our games." commented Peter Chan, Business Development Manager, Codemasters, "The TOCA series has been one of our most successful franchises to date and we feel the immersive effects offered by amBX will help us make this year's iteration the most memorable yet."

About Philips amBX
Created by Philips, amBX™, a shorthand for ambient experiences, will drive the next generation of home entertainment through the use of a scripting language, a software engine and architecture. Through amBX, multiple peripheral devices in the room will function in harmony to deliver new content experiences: surround lighting, sound, vibration, air movements and other effects. Enabled devices will work in tandem with scripted amBX code embedded inside video games to extend the gaming world out of the screen and into the real world by barraging the senses with audio and visual queues tuned to the action on the screen. For more information visit: http://www.ambx.com/

Source: TOCA Feels It
Originally published on Fri, 15 Dec 2006 16:07:06 GMT by tim.stevens

Thursday, December 14, 2006

Activision, CA

 

We know this isn’t about the environment, or about new media, but we had the opportunity to go into Activision and we couldn’t pass it up. We hear that we were the first people ever to get in there like we did. Hope you enjoy it!

special guest appearance by Rob

Source: Activision, CA
Originally published on Thu, 09 Nov 2006 17:34:31 GMT by Mario Librandi

Wednesday, December 13, 2006

Jessica Biel...



Now how can you go wrong there? =)

Spike TV's Video Game Awards winners announced

Spike TV's Video Game Awards winners announced 

Expect the expected: another year passes with Spike TV failing to be either daring or creative with the winners of their annual gaming awards.

Source: Spike TV's Video Game Awards winners announced
Originally published on Mon, 11 Dec 2006 19:53:00 GMT by bkuchera@arstechnica.com (Ben Kuchera)

Controversial Christian Game Under Fire

 

Violent video games have long been the subject of concern, but now a religious title is stirring controversy. Left Behind: Eternal Forces, a T-rated PC real-time strategy game based on the popular Left Behind book series, has come under fire by online political groups.

Source: Controversial Christian Game Under Fire
Originally published on Wed, 13 Dec 2006 17:30:41 GMT

Violent end to PS3 shooting saga

Violent end to PS3 shooting saga
from Game Addicts by Edwin
Nobody could claim that the PS3 launch was smooth to say the least, with plenty of jacked up prices, muggings, and even a shooting just to get Sony’s fabled next generation console. The shooting incident brought about a new low to the world of video gaming, and does not do justice for the majority of us peace-loving gamers. Apparently, a suspect of the November 17th armed robbery of a University of North Carolina Wilmington student was shot dead by a New Hanover County sheriff’s deputy.

18 year old Peyton Strickland gave up the ghost at his front door after both he and his pet dog, a German Shepherd, were shot. This happened after Peyton opened the door where subsequently a loud fight ensued that ended in the most ghastly manner possible. According to Strickland’s roommate who was at home at that time, Peyton was unarmed when he opened the door, which leaves plenty of questions left behind to be answered.
A full and thorough investigation has already been launched by Ben David, the New Hanover County District Attorney. He claims that he will leave no stone unturned in the investigation, and neither will he show favoritism to his deputy. It is amazing how something like the PlayStation 3 could result in such senseless bloodshed? Aren’t we all grown up enough to wait for the next console shipment if we can’t get our fix today? Is gaming really responsible for degenerating the society’s mind up to such a low level? You don’t see the same kind of madness surrounding the Nintendo Wii despite having shortage problems (albeit at a lesser scale) as well. What’s your take on this?

Friday, December 08, 2006

Update on Sony, EA and Nintendo - The Internet Got It Right

Update on Sony, EA and Nintendo - The Internet Got It Right
Roger and Video Game Shopping
I thought you'd be interested to know that I did a little holiday shopping last night. I went into the Nintendo Store near Rockefeller Center to check out the wares. Yes, I am finally capitulating to the video game "thing," at least on some level, for my 9-year old son. I was on a mission to buy a shiny white DS Lite with some cool games he'd be psyched about. As I was standing near the cabinet looking at games for my son I saw it: the Wii. Four consoles were set up with people gaming away: one dude holding the controller behind his ear and bending his knees like he was at bat; two throwing some wicked curveballs at robo-batters; and another person knocking them down at the bowling alley. Wow! They were having a blast. I wanted to grab one of those controllers and step to the plate right then and there.
When I went to check out my friend Rob and I chatted up the cashier for some market intelligence. The conversation went like this:
Rob: Do you have any Wiis?
Cashier dude: No. They were all sold out first thing this morning.
Rob: How many did you have?
Cashier dude: 100.
Roger: When did you get those?
Cashier dude: This morning. We get 100 every morning. People start lining up at 1am to get them.
Roger: You're kidding me, right?
Cashier dude: No. And the Toys-r-Us in Times Square has the same situation. They get 100, people line up 3 hours before the store opens, and they're gone.
Roger: Thanks, man.
The Sony-Nintendo-EA Thesis Coming to Fruition - Wii Rock!
And so it goes. The Wii is a happening, plain and simple, and its fallout is being felt across the gaming landscape. I have written about Sony quite a bit in the past, and have also penned a post about EA, both of which ran on Wallstrip as well. The general take in my pieces is that Sony screwed up massively by mismanaging its supply chain as well as consumer expectations, particularly as it relates to the blue laser diodes required for both its PS3 and CD/DVD consoles and its ability to meet stated delivery targets. Further, I had articulated that EA was missing the boat by not placing more resources behind the Wii console, choosing to keep most of its bets along the PS2/PS3 and Microsoft Xbox 360 platforms. Well, what I had hypothesized about appears to being coming to fruition. And with more data behind my arguments now, I thought I'd provide my gamer and investment pals with a little update.
Sony PS3: Off to a bad start
The Science & Technology section of Playfuls.com had a good post chock-a-block with statistics for how the PS3 launched in Japan. And it isn't pretty.
Sales of the PlayStation 3 console during its first full week of availability in Japan were sharply lower than those during the two days immediately following its launch, according to estimates published this week.
We were in Osaka this morning to see the delivery of Nintendo's Wii to the world's greatest DS fans. Stores across Japan received a total of 400,000 Wii consoles. In Osaka, Japan's second city, 2,800 units were allocated to the Umeda branch of Yodobashi Camera alone, while Bic Camera in Nipponbashi received 650 systems. Both locations were sold out within an hour of opening.
In its first eight days of availability, Nintendo's Wii video game system sold through to more than 600,000 consumers in North America. According to Nintendo¹s calculations from just its own first-party software and accessory sales, Wii instantly has become a $190 million business for NOA.
During the seven days from Nov. 13 to Nov. 19, there were 43,378 of the consoles sold in Japan compared with 88,400 sold on Nov. 11 and Nov. 12, according to figures published by Enterbrain Inc. Friday. The company publishes local gaming magazine Famitsu and its figures are generally regarded in the industry as reliable.
The sharply lower number of consoles sold is likely due to tight supply of the machines. Sony Computer Entertainment Inc. has faced problems procuring blue-laser diodes for the PlayStation 3's Blu-ray Disc drive and was forced to cut-back on launch plans. It had originally planned to have 2 million consoles in Japanese, North American and European retailers for launch week but this was reduced to 500,000 units and the European launch was pushed back to March 2007.
As a result the consoles have been in high demand and fetching premium prices on Internet auction sites.
Software sales for the PlayStation 3 have also gotten off to a slow start.
Sales have been lower than expected in part because a large number of early buyers were getting the console to resell for a profit online. Enterbrain estimated that in Japan, less software than hardware was sold at launch, while in the U.S. retailer Gamestop said an average of 1.5 games were sold with each console. In comparison the retailer reported average software sales for the Nintendo Wii were three titles per console.
Ok, but consider this. In the old days of video game launches one might have been able to recover from this less-than-stellar coming out party. But Sony's real competitor isn't Microsoft - it's Nintendo. Japan, Sony's home turf, is clearly game crazy, and problems with launching your marquee platform in your home market is not a good sign. According to Media Create, 81,639 PS3 systems were sold in the 24 hours of its introduction in Japan. Not bad, but this weekend the Wii entered prime time in Japan. And here are the early reports.
Nintendo Wii: Flying off the shelves
According to the gaming site Joystiq, the Wii launch went somewhat more smoothly than the PS3:
We were in Osaka this morning to see the delivery of Nintendo's Wii to the world's greatest DS fans. Stores across Japan received a total of 400,000 Wii consoles. In Osaka, Japan's second city, 2,800 units were allocated to the Umeda branch of Yodobashi Camera alone, while Bic Camera in Nipponbashi received 650 systems. Both locations were sold out within an hour of opening.
Compared with last month's farcical PS3 launch, there were notably fewer auctioneers-in-the-making at today's Wii debut. Most people we met were genuinely looking forward to playing games with their new purchase. (There are Wii lots on Yahoo! Auctions, but the going rate is only marginally higher than the retail price: typically Y30,000 (US$260) via auction, compared with Y25,000 (US$217) in stores.)
If these sales figures are true, and if one just focuses on the 24-hour post-launch period in Japan, the Wii outsold the PS3 by a 4-to-1 margin. Having supply on hand comes in handy sometimes, right? It helps to have your demand forecasting and supply provisioning in synch, right? Anyway, if you think these figures are impressive, consider that in the first week of the Wii's North American launch over 600,000 consoles were snapped up. From DailyTech:
Nintendo Wiis sold at the rate of nearly one Wii sold per second continuously since the Nov. 19 launch.
In its first eight days of availability, Nintendo's Wii video game system sold through to more than 600,000 consumers in North America. According to Nintendo’s calculations from just its own first-party software and accessory sales, Wii instantly has become a $190 million business for NOA.
"Even with sales already in excess of 600,000 units, demand continues to exceed supply, as it's clear this is one of the 'gotta-have' products for the holiday season," says Nintendo of America President Reggie Fils-Aime. "We've shipped retailers several times the amount of hardware the other company was able to deliver for its launch around the same time -- and we still sold out. Given the inclusive nature of Wii game play, we're seeing this new form of video gaming is already a huge hit with gamers and newcomers alike. It continues to be a phenomenal launch."
After hearing about the massive number of Wiis that Nintendo was stockpiling for launch, many figured that finding the new console would be a walk in the park, especially compared to securing a PlayStation 3. What many are finding (or rather, not finding) is that Wiis are in rather short supply relative to demand. Nintendo is shipping a much greater supply of its consoles than Sony is of theirs, but that is not changing the availability situation. Wiis are selling out just as quickly as PS3s as soon as they hit store shelves.
According to GameStop’s data, attach rate for the Wii is around three games per console – better than the retailer expected and about double of that on PS3. It should come to nobody's surprise that The Legend of Zelda: Twilight Princess was attached to more than 75 percent of all Wii consoles sold, achieving sales of more than 454,000.
For a little context, if one assimilates the numbers above, it appears that Nintendo has sold at least 1 million units worldwide in less than 3 weeks. Wow! This represents 10% of the projected full-year shipments for Microsoft's Xbox 360. And Microsoft has had a year head start. Further, Nintendo's Reggie Fils-Aime says he is still on target to ship another million units by year-end in North America alone. From gamesindustry.biz:
Speaking to Reuters, Fils-Aime predicted that Nintendo will hit the target by early December, and go on to sell another million Wii units by the second week of January. He said that a life span of between four and six years for the console would be "just about right".
Fils-Aime also took the opportunity to echo comments made by other Nintendo execs regarding the profit potential of the Wii, compared to other consoles such as the PS3, which apparently cost more to produce than to buy.
"We think that's in part why the industry has become so insular - very expensive machines, machines that arguably do more than you need them to do," Fils-Aime said.
"We designed [Wii] from the get-go to be profitable, so it will be past this weekend and throughout its entire life. Because we're a gaming company, we have to be profitable in the gaming business. It's not like our competitors who can make profit in operating systems or TVs to offset their losses on the gaming side."
So what does this all mean for the Wii's demand profile into 2007? A lot. From Slashdot:
Nintendo of America president Reggie Fils-Aime hyped up the console launch, saying, 'Because of demand, we're urging shoppers not to get complacent. The level of demand we're seeing goes beyond the ordinary. Retailers are telling us a significant fraction of customers pre-ordering Wii are nontraditional gamers...' The company expects to ship 6 million Wii units globally by the end of March 2007, on par with Sony's worldwide shipment targets for PS3. Microsoft has sold 6 million Xbox 360 units to date since its launch in late November 2005, and hopes to sell 10 million by the end of the calendar year.
PS3 vs. Wii: Celebrity Death Match or is the opponent already dead?
So Sony has flexed its muscles and said "hey, we're gonna sell 6 million units by March." Nintendo has said the same thing but has actually demonstrated the market momentum (i.e., demand supported by supply - I might posit that market momentum = customer demand x product availability - are you listening, Sony?) to back up its projection. Do you believe Sony? Well... Let's check in on a little dialogue between Newsweek's N'Gai Croal and EA's Larry Probst dated November 29th and you make the call.
Croal: Here's my first question. PS3 is supply constrained and will likely remain so until early 2008. 360 demand is--
Probst: Whoa, whoa, whoa. Early 2008?
Croal: You don't think so?
Probst: I don't think they'll be supply constrained that long. You think all through 2007 they'll be supply constrained?
Croal: Well, looking back to the PS2 launch, Sony shipped a million units for the Japanese debut, most of which sold in the first 48 hours. But for the Japanese launch of PS3, they only shipped around 80,000 units, more than ten times fewer machines. So they're nowhere near meeting demand in Japan. In North America, Sony shipped just under 500,000 units for the PS2 launch, but only 200,000 units for the PS3 launch. So they don't have enough supply to meet demand here. Sony launched in Asia with less than 20,000 units. And early next year, they have to start stockpiling units for the European launch in March 2007--assuming that date doesn't slip. So we're looking at four territories where supply probably won't meet demand, and by the time Sony starts to catch up, it'll be holiday 2007, where the combination of big AAA games and gift-giving will increase demand even more.
Probst: So you're not believing their projection of 6 million units shipped by the end of March?
Croal: Even if they somehow get to that, will that be enough to satisfy the global demand?
Probst: I don't think that they would catch up in the first quarter of 2007, but at some point in calendar '07 I think they catch up to demand. I don't think it takes until the early part of 2008. It doesn't happen in early 2007, but it happens in that year.
Croal: But as long as PS3 remains supply constrained, and as long as Xbox 360 demand is falling short of Microsoft's projections, that leaves Nintendo's Wii as the only platform that has both high supply and high demand. Yet the bulk of EA's AAA titles are oriented towards the PS3 and the 360. How have you adjusted your development plans in light of where things stand right now?
Probst: We have two titles at launch for the Wii. We will have five or six in the market by the end of our fiscal year [March 31, 2007.] We have a number in the low to mid-teens planned for [the next] fiscal year. I think we're going to catch up pretty quickly in terms of a broader portfolio on that platform.
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Larry at EA seems a little freaked, doesn't he? Well, read on to see what he does to ease EA's incipient pain.
EA: "Wii're playing catch up - I should have listed to Information Arbitrage"
Uh, and why exactly does Larry think EA is going to catch up quickly? BECAUSE THEY'RE GOING TO HAVE TO OR GET THEIR FACE RIPPED OFF, i.e., miss earnings and revenue targets off the back of their dependence on the PS2/PS3/Xbox 360 platforms. So in the absence of a sound organic strategy what do we do - buy someone, of course! Here's what EA announced on December 1st, as described in the Salt Lake Tribune:
Utah's EA Salt Lake is focused only on Wii
The Bountiful-based Headgate, which Cook founded in 1992, became part of video gaming giant Electronic Arts (EA) earlier this week. Immediately, Headgate's 60-member work force was assigned to designing games for Nintendo's new Wii platform.
"That will be our focus, exclusive to Wii development," Cook said Friday. "We're excited about this. Wii comes with a new controller that is wireless and senses orientation and path motions like nothing else out there.
"Nintendo has come up with an entirely new gaming experience," he added.
"For tennis, baseball or golf games, for instance, it really senses the actual swing. It's really catching on; now we will have to catch up."
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Well, you've got to give EA credit for doing something quickly to ameliorate a profound product gap that could sharply impact their future growth.
Sony's PS3 prospects: What to do now?
Bottom line: if they can't ramp up production and get some demonstrable traction by March, the whole platform could be in deep, deep trouble. A small installed user base, high game development costs and a runaway competitive hit by their arch-rival Nintendo could create a gap simply too wide to overcome. A little perspective on game development costs from VIDEOGAMESBLOGGER.COM:
Namco Bandai, who are Japan¹s second-biggest maker of video games, must sell at least half a million copies of a game for Sony¹s PS3 to make a profit on the title, said President Takeo Takasu.
Graphics for the high-definition games cost about 1 billion yen ($8.6 million) to create, more than double that for Nintendo¹s Wii titles, Takasu said in a Tokyo interview with Bloomberg from November 28. This explains why Bandai Namco are developing 30 games for Wii, but just 10 for PS3 and Xbox 360.
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Not enough supply coupled with the high costs of game development are literally pushing Japan's #2 video game maker into Nintendo's hands. This is not what I would call a favorable competitive landscape. And we have clear validation that all is not well at Sony's gaming division, based upon some news that came out on December 1st concerning a management shake-up:
Sony switches leaders in gaming division
Plagued by problems with the launch of its new PlayStation 3 console, Sony is shaking up the management of its games division.
The company announced Wednesday night that it is promoting Kaz Hirai, president and CEO of its Foster City-based North American PlayStation business, to president and chief operating officer of its entire games division. Hirai will take over the day-to-day operations of Sony's games business from Ken Kutaragi.
Kutaragi, a legendary figure within the games industry as the father of the original PlayStation, will oversee the longer-term, strategic development of the company's global games operations as chairman and group CEO of Sony Computer Entertainment (SCEI).
'Clearly this is a smack in the face for Kutaragi. In essence, he's been demoted to CEO, which in this case is largely a face-saving title for him,'
Said Van Baker, an analyst with research group Gartner in San Jose. 'Kaz is an operations guy. . . . This is a recognition of the fact that operations is their problem area right now.'
How do the local Japanese analysts interpret this brutal demotion?
From the Tokyo AP via SiliconValley.com:
But Masayuki Otani, analyst at Maruwa Securities Co., was a bit skeptical about the news, noting that the gaming markets are extremely different in the U.S. and Japan.
”Sony is such an old-fashioned company. Success in the U.S. doesn't necessarily mean success elsewhere,'' he said. “The appointments could also signal a gradual farewell -- 'thank you for the hard work' -- for Mr. Kutaragi.''
From Kotaku.com:
Yuta Sakurai, an analyst at Nomura Holdings, Inc. has a gloomy outlook on Sony's hardware future.
" The appointment of Hirai could be the start of a shift from hardware to software. I cannot now imagine a PlayStation 4."
From GigaOM:
"The Father of the Playstation" and the "Gutenberg of Video Games", Ken Kutaragi, has just been nudged from his position as president of Sony Computer Entertainment Inc. (SCEI), hereby replaced by Kaz Hirai of SCEI¹s US wing.
In one of those lovably surreal corporate moves, Kutaragi is actually being promoted, while losing day-to-day control over Playstation development.
And what do the bloggers think? Some comments on Joyqtiq's post related to Sony gaming's reshuffle:
2. Yep this is the big business equivalent of firing Ken from his current position. They can't just outright get rid of him 100%, as that would admit that he was doing a bad job, which would then reflect poorly on all of their big talk. They have to save face.
Basically, they've turned Ken into a high level consultant.
Posted at 10:50AM on Nov 30th 2006 by joey
6. This is Big news. For a japanese company to move a guy like Ken off the direct leadership team of the playstation is bad news for Ken. It can only be seen as a negative reflection inside sony on the launch of the PS3 and PSP. Might be a positive for sony and gamers to get some fresh leadership for the Playstation brand.
Posted at 11:06AM on Nov 30th 2006 by Dragon Warrior
10. #2 Hit the Nail on the head. Big Companies can't just outright fire their executives because it will send the common investor into a sell-off.
They'll leave him in his new position for a while and then give him severance with a news post saying he is leaving to "Spend more time with his family" or to "Pursue a new opportunity". Sony will never admit anyone did anything wrong, because that would imply the company made bad business decisions.
Posted at 11:09AM on Nov 30th 2006 by clo1_2000
19. Shuffling management so soon after launch is a sign. I think the recent publication that some vendors were waiting on Sony's direction so they could offer their titles exclusively to the PS3, but fell through when they didn't hear back from Sony in time, certainly hasn't helped matters. And now we're hearing about some vendors taking a wait and see approach and that sales have to be 500,000 to make a profit. If true, these are troubling revelations.
Posted at 11:47AM on Nov 30th 2006 by Robotic House Plant
Sony's in trouble, man. And it ain't just the PS3. This company is psychology broken. Morale absoutely sucks, which isn't really the environment you are are looking for to rapidly and decisively address a competitive threat. Check out this post on Gizmodo describing how a Sony executive actually said that the Wii is more fun than the PS3:
Even though he wasn't speaking for the entire Sony organization, did we just hear Sony Australia & New Zealand general manager Nic Foster say that the competing Nintendo Wii is more fun than Sony's PS3 gaming console? Well, just about:
"Wii is a core gaming device. It's a more fun, intuitive sort of product to pick up, where the PS3 is a broader entertainment solution; so you can have your fun, enjoyable gaming ... but then you have a whole suite of other applications ... such as Blu-ray media playback, the ability to access your music, access your photos and the interoperability with the PlayStation Portable."
Oops. What sounds like more fun, a "core gaming device" that's "intuitive" and costs $250, or a "broader entertainment solution" that'll clip you for $600? You decide.
Yikes. Not a comment to build morale, huh?
Conclusion
The internet conversation has been an incredibly good predictor of the actual outcomes for Nintendo, EA and Sony. While the game is certainly not over, it is pretty amazing to consider how directionally correct all of these online experts and users have been. While Wall Street analysts often have some good insights, they can't possibly replicate the global community brain shared by those who can tap into it efficiently. And this gets to the post I authored a few days ago about next generation search. But I'll keep you posted on the Sony-Nintendo-EA situation. It is sure to be a wild ride.
ADDENDUM
Check this out from Bloomberg this evening - Sony PlayStation 3 U.S. Sales Fall Short of Target (Update3). A little late to the party guys, aren't we?

Friday, December 01, 2006

CNET's James Kim and family missing -- have you seen them?

CNET's James Kim and family missing -- have you seen them?
Posted Nov 30th 2006 8:45PM by Ryan BlockFiled under: Announcements
We've received word that a respected member of our tech community, James Kim (whom many of you may know as CNET's senior editor of digital audio), and his family have gone missing. As we understand it, last weekend James, his wife Kati (above right), and his very young girls Penelope (left) and Sabine (baby), drove from their home in the SF Bay Area to Seattle. They were expected back some time Sunday, but were last seen by a hotel clerk at 5:45 PM on Saturday in or between Gold Beach or Portland, Oregon. We sincerely do hope they are all safe, and our hearts go out to the Kim family.We'll have more information as we get it. If you have any information as to the Kim family's whereabouts, please contact the SFPD at 415-558-5508 during normal business hours, and 415-553-1071 after hours.