Industry news

Video game industry related news are published here

WoW and GTA Under the Same Roof?

While the Take-Two/Electronic Arts saga from a few years back didn’t result in anything but headaches for the respective executives, it’s beginning to look like EA’s closest rival, Activision, could be targeting Take-Two. Analysts have been pointing to Take-Two as a buyout candidate for the last year, and it would make sense for another company to jump in before the next GTAlaunches.

“There are very strong rumours amongst people at a very senior level within the global business,” a senior executive mentioned to MCV about the potential acquisition.

With Activision killing off its music business, skateboarding and True Crime, and laying off 500 workers, there’s definitely a sense of urgency about what they’ll do next. Doubling down on Call of Duty and Blizzard is all well and good for the short term, but other than their Bungie deal, there’s not much else. Buying up Take-Two would net them a wide array of hugely successful IP, like GTA, NBA2K, BioShock, Civilization, Red Dead Redemption and more.

If an acquisition were to happen, Activision would need to make sure Rockstar’s talent stays on board. The Houser brothers’ contract is up for renegotiation in 2012.

For now though, this remains nothing more than rumor, so we advise you to take it with a hefty pinch of salt.

PS2 Reaches 150 Million Shipped Worldwide

Sony Computer Entertainment proudly announced that its PlayStation 2 console has sold-in (shipped) 150 million units across the globe, as of January 31. This feat was managed in 10 years and 11 months since the PS2 first launched in Japan back in March 2000.

Sony also noted that the PS2 has amassed a “vast library of more than 10,828 software titles, representing a broad range of game genres that appeal to everyone in the family. More than 1.52 billion units of PlayStation 2 software have been sold worldwide.”

The company also highlighted key innovations for the PS2, such as the system’s DualShock 2 controller, the EyeToy Camera, and the inclusion of a DVD player, which for many consumers was the first DVD player they ever purchased.

3DS Development Costs Three Times More Than DS

If developers are looking to jump on the 3DS bandwagon, they’d better be prepared to spend a little more than they did on making DS games. Hachimaki, a Japanese gaming blog, poured over Marvelous Entertainment’s financial documents and discovered that 3DS development may cost between ¥50 million ($599,000) and ¥150 million ($1.8 million). Marvelous ballparked the amount during an investors Q&A session after the release of its earnings report.

Hachimaki then compared that figure to average development costs in 2009 collected by the CESA, as reported by Geimen. Japanese developers spent between ¥4.4 million ($52,700) and ¥43.9 million ($526,000) on DS, while PSP titles had a slightly wider spread of ¥3 million ($35,900) and ¥59.2 million ($709,000).

It’s already been widely assumed that 3DS games will retail for more than their DS siblings. Nintendo President Satoru Iwata has already confirmed that 3DS development costs would be close to Wii costs as well.

[Thanks 1UP]

Nintendo Sells Over 65 Million Wii Remotes in U.S., Makes Remote Plus New Standard

Nintendo of America today announced that more than 65.3 million Wii Remote controllers have been sold in the U.S. so far. Since the Wii console launched in November 2006, Nintendo has sold an average of 46,000 Wii Remote controllers per day. Nintendo commented that “this demonstrates that Wii owners like to play and they like to play together. They’re not the stereotypical gamers playing alone in their parents’ basement.”

Nintendo, according to NPD data, has also sold an additional 52.9 million Nunchuk controllers in the U.S. through the end of September.

For the regular Wii Remote controllers, here’s how the 65.3 million breaks down:

  • 30.41 million included with the Wii hardware
  • 12.92 million sold with  Wii Play
  • 18.56 million white versions sold separately
  • 2.44 million black versions sold separately
  • 467,500 pink versions sold separately
  • 465,200 blue versions sold separately

On November 7, Nintendo will also start selling the new Wii Remote Plus controller, which “replaces the iconic Wii Remote controller.” Nintendo said it will becomes the new standard Wii controller, and will be included in all Wii hardware packages and bundles, as well as sold separately at a suggested retail price of $39.99.

Blizzard to Sue StarCraft II Hackers

The recent 5,000-player ban simply is not enough for the developers behind StarCraft II. Blizzard is now targeting those who are responsible for the hacks present within the game. The lawsuit, filed in the US District Court of Los Angeles, names three programmers that allegedly created and sold hacks for StarCraft II.

The named programmers, two Canadians and a Peruvian, are the targets of the lawsuit. Though others are attached to the suit, there are no more individually identified persons.

“Just days after the release of StarCraft II, Defendants already had developed, marketed, and distributed to the public a variety of hacks and cheats designed to modify (and in fact destroy) the StarCraft II online game experience,” said the company in the filing. ”In fact, on the very day that StarCraft II was released, representatives of the hacks Web site advised members of the public that ‘our staff is already planning new releases for this game’.”

Blizzard is striking at the accused by alleging copyright infringement. The suit states that the hackers attempted to “induce others to commit infringement” as well. Blizzard hopes to strip the defendants of any profits gained through the creation of hacks, as well as seeking damages.

“The harm to Blizzard from Defendants’ conduct is immediate, massive and irreparable,” continues the suit. “By distributing the Hacks to the public, Defendants cause serious harm to the value ofStarCraft II. Among other things, Defendants irreparably harm the ability of Blizzard’s legitimate customers (i.e. those who purchase and use unmodified games) to enjoy and participate in the competitive online experience.”

“That, in turn, causes users to grow dissatisfied with the game, lose interest in the game, and communicate that dissatisfaction, thereby resulting in lost sales of the game or ‘add-on’ packs and expansions thereto,” says the suit.

Take-Two Believes in Digital Growth, Not Worried About Packaged Good Cannibalization

Take-Two is not worried about the growing power of digital distribution in gaming.  The publisher is in fact welcoming it, as Take-Two now sees about 40% of its business going through digital means in the next three years. Take-Two CEO Strauss Zelnick doesn’t believe that digital distribution will result in the cannibalization of current physical retail models either.

“Right now, digital distribution of our interactive entertainment represents something less than 15 percent of our revenue, and that’s clearly growing,” Zelnick told Bloomberg Television’s “Inside Track” program. “Packaged goods isn’t going away for our business… because we have huge file sizes,” he added.

“It’s pretty hard to interact with huge file sizes where latency issues are meaningful, if you’re entirely in the cloud,” Zelnick continued, but he sees OnLive as concept proved when it comes to tackling the problem. OnLive is “doing a phenomenal job of addressing that challenge”  –  such a good job, that Take-Two supports the company’s endeavors.

The digital model is growing, and Zelnick is sure that platforms such as the iPad are showing what digital can do. He predicts 20 million units sold this year, 60 million next year and 200 million by 2014. That kind of platform growth is “pretty remarkable,” he commented.

With Take-Two offering Grand Theft Auto: Chinatown Wars on the iPad, the company is looking to expand its revenues from tablet computers.

“It’s small for tablet, because we support largely consoles,” he explained. “That’s the bulk of our business… because it allows us to do incredibly robust products. However, what’s exciting about the tablet revolution… is that tablets are going to become more and more robust platforms, and allow you to do incredible things. And they’re portable, and they’re cheap and they’re getting cheaper.”

“I think you can see digital distribution to be 20, 30, 40 percent of our business,” in three years, said Zelnick. “However, I believe our business is going to grow. So I don’t think it actually takes a bite out of retail, and I doubt it takes a bite out of consoles.”

“I think it’s a growth business; I think for interactive entertainment, everything grows, the wind is at our back,” he added.

“While we’re not exactly platform-agnostic… the fact that a middle-sized platform is going to grow is phenomenal news for us. The most important news for us is, how great is our next title.”

[Thanks Gamasutra]

Canadian Games Conference Coming May 2011

A new gaming conference has been announced and will be debuting next year in May. The Canadian Games Conference is looking to highlight the ever-growing Canadian gaming community, and will take place in Vancouver in May.

The event is being organized by Reboot Communications, and will feature a “Best of GDC” content track, including some of the top leaders in the industry.

“Our conference efforts in the game space have always been for the industry, by the industry,” said Reboot CEO Greg Spievak. “Our Canadian Games Conference advisory board is made of key representatives from across the country – and we expect the same vibrant growth and stimulating sessions that have defined our game events for the past four years.”

UMB TechWeb Game Network’s global brand director Simon Carless added, “We’re delighted to continue working with Reboot and the Canadian game industry by contributing the ‘Best Of GDC’ track to the Canadian Games Conference – and look forward to supporting the conference and awards as one of the leading events in this vibrant space.”

The event is set for May 19-20 at the Vancouver Conference Center. The Canadian Videogame awards will precede the event and keynotes will be announced soon.

THQ and LucasArts Veteran Forms Famous Games

Jack Sorenson, a long-running industry veteran, has officially announced the formation of his new studio, Famous Games. The announcement came on the heels of a publishing partnership with Autumn Games, who previously co-published 4mm’s Def Jam Rapstar with Konami. Autumn Games will be publishing Famous Games’ future titles, with one title already in development.

Prior to founding Famous Games, Sorenson was the executive VP of Worldwide Studios at THQ. Before that, he was the president of LucasArts, serving at the company for most of the ’90s.

“Interactive gaming is at an exciting crossroads,” said Sorensen in a statement. “Despite some of the mournful press out there about our industry’s future, we are excited about the platform transitions and disruptions in traditional distribution happening in gaming. Autumn shares our vision for the type of experiences that will succeed in this new climate, and our partnership is an integral aspect of my new venture.”

“Jack is one of the truly visionary talents in the executive ranks of the games business,” said Autumn Games’ president, Jason Donnell. “Interactive entertainment is evolving quickly. Jack’s vision for the future of entertainment, combined with his exceptional track record in game development, makes him and his team an ideal partner for Autumn.”

Call of Duty: Black Ops to Sell ‘At Least 3X’ The Units of Medal of Honor

The shooter market is a tough, crowded, and very competitive sector of the industry. This holiday gamers have a number of choices, including Halo: Reach, Medal of Honor and Call of Duty: Black Ops. The odds are only the most avid core gamers will buy all three. That said, the good news for EA is Medal of Honor is seeing strong interest – although nowhere close to the level of Call of Duty.

According to Lazard Capital Markets’ latest survey of U.S. consumers, 25% indicated an interest in buying Black Ops this holiday season, but Medal of Honor wasn’t all that far behind, with 17% of respondents indicating interest in picking up the EA title, which has already seen big pre-orders.

Analyst Colin Sebastian believes the upcoming Call of Duty, however, will set entertainment records again, as Activision has been saying. “Importantly, given the broader interest and timing with gift purchases, we expect Call of Duty will still sell at least 3x the number of units as Medal of Honor, although game reviews remain a key variable in determining core gamer interest,” he commented.

Backing up Sebastian’s claim, GameStop just last week noted that it’s been seeing ”all-time record” reservations for Black Ops, so it’s looking like the game could very well be the number one seller this holiday.

EA Mobile Working on Windows Phone 7

EA Mobile is already looking at the possibilities that Windows Phone 7 will provide. The mobile games developer within EA has announced several titles that will be released on launch day for the phone.

“Our collaboration with Microsoft brings EA’s world-class catalog of global game franchises to Windows Phone 7, offering a unique set of gaming features perfectly suited to the deep, innovative experiences we value at EA,” said Travis Boatman, vice president of Worldwide Studios for EA Mobile.

“We see consumers deeply integrating devices into their lives and entertainment in new ways every day. Challenging your Xbox LIVE friends to an EA game from the phone in your pocket keeps you connected and having fun no matter where you are.”

“Together EA and Microsoft have created some of the definitive console games of this generation, and we’re excited to bring that powerful alliance to Windows Phone 7,” said Ron Pessner, general manager of Xbox LIVE mobile, Microsoft. “This is a new and major games platform for Microsoft, and we look forward to the amazing games EA will deliver over the coming years.”

Titles announced include Need for Speed: Undercover, Tetris, The Sims 3 and Monopoly.

The new titles are slated for release on launch day for the Windows Phone 7, and will include demos and Xbox live compatibility.