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Megacorps are bad for gaming; Sony, EA, Activision, MS, and their ilk
Topic Started: Oct 24 2006, 09:29 AM (6,749 Views)
sheath
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I have been, and remain, non-sequitur
That bluray deal really is going to help Sony, in six years!

http://www.gamedaily.com/articles/news/xbox-360-will-fall-to-third-place-thanks-to-japan-says-pachter/

""We think that the PS3 will capture significant market share, primarily due to Sony’s victory in the high definition DVD format war, and will end up in second place by 2015. Although Microsoft’s Xbox 360 enjoyed a first mover advantage, we think that its market position will fade to third place due to lack of penetration in Japan. We expect the Wii to capture 49% share of the U.S. and European market by the end of 2009, followed by the Xbox 360 at 29% and the PS3 at 22%. By the end of 2011 (the extent of our current forecast), we see Nintendo 'winning' the console war by maintaining its share, with 48% of this market. We expect Sony to pull even with Microsoft, each with 26% market share."
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Belpowerslave
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They fail to add Project Natal in to the equation. Once that thing hits, I, and just about everyone else, will be selling off their bullshit Wii to grab that thing.

Bel
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benstylus
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too much good sega stuff on the wii for me to sell it now.
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sheath
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I have been, and remain, non-sequitur
I actually expect the Sony Dildo to go down about like the Eye Toy did, at best it will get some Wii ports as discounted budget offerings. Natal seems like science fiction to me. If it does come out next year Microsoft will have to set records in marketing costs to get people to buy it, developer and consumer alike. If third parties don't have their hands on Natal today, we won't see legitimate games for it until 2012.
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Belpowerslave
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According to the press conference at E3, they said that developers were getting the dev. kits that week...and this is backed up by Bungie now saying that Halo: Reach may use it. That demo that Lionshead did fucking blew my mind and they could not have had Natal for more much than a few months before E3.

It'll just all come down to pricing.

Bel
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sheath
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Click the link to read more.

http://kotaku.com/5307410/valve-ps3-orange-box-players-got-the-stepchild-version

In an interview with CVG, Valve's Doug Lombardi says the experiences of putting Half-Life on PS2 and Orange Box on PS3 have put them off Sony development for the near future.

He doesn't complain about the differences in developing for one console, or PC, over another, but does say the PS3 versions of Valve products have been inferior to the original releases, and so the company's not interested in doing anything on that console again unless and until they can put something out that gives Sony players the same experience as PC and 360 users.

-
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sheath
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Between this interview, and the fact that Sony feels its horrid "emmy award winning" GUI doesn't need an overhaul, I don't know what's more sad. Oh wait, yes I do, Kotaku's ridiculous Sony loyalty on the topic is much more sad than this interview.

http://www.gamesindustry.biz/articles/were-no-longer-playing-catch-up-with-xbox-live-sony

Sony: We're no longer playing catch up with Xbox Live

...

"I don't think there's a lot of 'catch up' [with XBL] any more. In some cases, I think we've got more, and we've got some other things they don't have," he said in an interview with Industry Gamers.

"In terms of strengths, of course we're still free, and we're giving you a lot for free. It's not just free online gaming, but we've got PlayStation Home, which is a massive community and application that's totally free to use.

"I think there's a lot we're doing that in some cases they're not doing, and I don't see a lot of things they're doing that we're not," he added.

...

Lempel went on to say Sony has no immediate plans to offer a PlayStation 3 games-on-demand service similar to the one Microsoft unveiled for the Xbox 360 at this year's E3 due to the sheer size of its Blu-ray discs.

He also poured doubt on Microsoft's plans to let users stream films at 1080p, saying similar examples he's seen of this technology have produced results that are "a little grainy" and not on par with what the PlayStation 3 and big television can currently deliver.
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Belpowerslave
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I've gotta agree with the "we're still free" thing, that is really enticing for people like myself who don't play online games that often, and are constantly treated like second hand citizens by MS(we have to wait a week for new demos, virtually all contests are cut off, etc).

On the 1080p thing, I *still* want to know how MS is doing that...

Bel
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sheath
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Judging from what happened to Sega with the Saturn and Dreamcast, a price cut would actually cause sales to slow *faster* at this point. No company in the history of the industry has started a second upswing in sales once a decline like this started.

http://www.gamesindustry.biz/articles/playstation-3-psp-and-software-sales-down-for-sony

PlayStation 3, PSP and software sales down for Sony

Sony has recorded a loss for the first quarter of the year, with a decline in sales of the PlayStation 3 and PSP hitting the company's Networked Product and Services division.

The company sold approximately 1.1 million PlayStation 3's during the quarter and 1.3 million PSP units, compared to 1.6 million and 3.7 million, respectively, for the same period last year. Sales of the ageing PlayStation 2 reached 1.6 million for the quarter.

Sales for the PlayStation business, which also includes Viao PCs, were down 37.4 per cent year-on-year, to JPY 246.8 billion (USD 2.571 billion), "due to lower game and Vaio PC sales," said the company.

The division recorded an operating loss of JPY 39.7 billion (USD 414 million) for the three months ended June 30, compared to JPY 4.6 billion, again, "mainly due to a deterioration in profitability in the game and Vaio PC business."

Specifically, the company noted a decline in software sales and PSP hardware sales.

Sales of Sony's PlayStation 3 software reached 14.8 million units for the quarter ended June 30, down from the 22.8 million units sold during the same period last year.

Game sales for the PlayStation Portable also dropped, with Sony selling 8.3 million first-party titles, compared to 11.8 in the first quarter of the 2008 financial year.

And although the PlayStation 2 sold more units during the quarter than the PS3 or PSP, software sales also fell to 8.5 million units, down from the 19.3 million in 2008.

The entire Sony business recorded an operating loss of JPY 25.7 billion (USD 268 million), down from the JPY 73.4 billion profit a year earlier.

Net loss was JPY 37.1 billion (USD ), compared to a profit of JPY 35 billion for the three months in the prior year.
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Belpowerslave
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Well, again, if they actually break out a price reduction...and this generation lasts more than 5 years, like people are thinking it will, it's possible they can come back. Right now price is their biggest issue. Blu-Ray seems to be hurting as much as it's helping. Bring that price down and the idiots will come back...just watch.

Bel
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sheath
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I have been, and remain, non-sequitur
Idiots are actually buying the PS3 right now because everything about it tells them it's "cutting edge". Price discounts put a significant chink in that moniker. I think at this point that a price cut is just as likely to hurt PS3 sales as it is to help them. It all depends on whether the discount makes them look "desperate" to the consumers. Similarly, a few well times press statements about Bluray's failing to take over like DVD did, alongside instantaneous HD streaming through Netflix, could well destroy the PS3's only edge on the competition.
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benstylus
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more good news for the Sony system:

PS3 SALES Q2 2008: 1.6m

PS3 SALES Q2 2009: 1.1m

Yep, looks like they're selling at a 31.25% SLOWER pace than last year.

taken from UKResistance which took it from a real website.
Edited by benstylus, Jul 30 2009, 04:55 PM.
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sheath
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http://www.gamesindustry.biz/articles/360-income-beats-ps3-and-wii-for-activision

360 income beats PS3 and Wii for Activision

Activision Blizzard has revealed that the lion's share of its platform profits - Blizzard's World of Warcraft MMO aside - came from the Xbox 360 platform, which yielded USD 231 million for the three months to the end of June this year.

That compares with USD 152 million for the PlayStation 3 and USD 118 million for the Nintendo Wii. PlayStation 2 income stood at USD 44 million, just beating the remaining PC revenues of USD 41 million.

The handheld space was somewhat less interesting, with the Nintendo DS bringing in USD 48 million and the PlayStation Portable USD 17 million.

In terms of geographical split North America was, unsurprisingly, the largest region by revenue for the company, accounting for USD 557 million, or 54 per cent of the total.

Europe in comparison yielded USD 408 million (39 per cent) and Asia USD 73 million (7 per cent).
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benstylus
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That article is quite misleading, as those figures are the net REVENUES, not the net INCOME (PROFITS).

Looking at their Financial Statement reveals the truth...

The total net REVENUES for all of Activision for the quarter were 1.038 billion.
The net INCOME for the quarter was a much more modest 195 million.

And while the net revenue for 360 is higher than PS3 or Wii, how much higher are the development, marketing, and royalty costs on the 360 or PS3 compared to the Wii?

(Hint: you can pretty much finance development of a Wii game with 23 dollars and a medium order of McDonalds French Fries)

It's a bit disappointing they don't split development/royalty/production costs down by platform, but then there is probably a great deal of overlap there.
Edited by benstylus, Aug 7 2009, 04:47 PM.
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sheath
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I have been, and remain, non-sequitur
Yeah, revenue seems to be the bottom line most impulsive investors respond to. The true bottom line is too easily fudged by these corporations, which are actually designed from the very beginning to defer all cost and liability. So, as a measure of success, comparing the same fact of revenue to the other two platforms, I find it very influential. As a measure or profitability we have to trust the non-existent balance sheets of these massive corporations.
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sheath
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Picture this, *a PSthree slim, ZOMG* and it's only $xxx = no sales increase whatsoever.

http://www.gamesindustry.biz/articles/price-cuts-may-not-stimulate-sales-analyst

Price cuts may not stimulate sales - analyst

An expected round of price cuts for all home consoles may not be enough to stimulate sales of hardware and software in the US.

That's according to Doug Creutz of Cowan and Company, who has warned that the consumer is already suffering from economic pressures, suggesting discounts may not be as effective in boosting the market as they have historically.

"We are concerned that, given pressures on the consumer, price cuts may not have the stimulative impact to hardware and software sales that they have had in the past," wrote Creutz in his latest note to investors.

He said that all three home consoles will benefit from a price cut, suggesting a USD 100 reduction on the PlayStation 3, USD 50 off Nintendo's Wii, and the price of the Xbox 360 Elite dropping to USD 300.

"We expect hardware price cuts on all platforms by September, with announcements possibly as early as next week’s Gamescom."

NPD data released tonight will reveal sales of videogame product in the US for July, with Creutz expecting a software sales decline of 23 per cent compared to the same period last year.

The firm also estimates August sales of console and hardware to fall in the mid-teens, but year-on-year comparisons to improve for September with the release of Halo: ODST, The Beatles: Rock Band, Marvel Ultimate Alliance 2 and Guitar Hero 5.
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sheath
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http://www.gamesindustry.biz/articles/npd-hardware-sales-slowed-considerably-in-july

NPD: Hardware sales "slowed considerably" in July

The NPD Group has released its game hardware sales data for the month of July, 2009, indicating slow sales on what has been the fifth consecutive month of overall industry decline.

Overall the Nintendo DS sold more units than any other console, at 538,900. This is a decline from the 766,500 unites sold last month and the 608,000 sold one year ago.

"Hardware sales have slowed considerably on nearly every platform," commented analyst Anita Frazer.

Frazer warned that growth for the industry in 2009 will be tough, but a batch of new titles in the later part of the year will help improve the market.

"In order for the industry to come in flat or slightly up for the total year, the back five months of the year have to come in 11 per cent (or more) higher than the last five months of last year."

"The worst comps should be behind us, and looking beyond August we have The Beatles: Rock Band, Halo 3: ODST, and of course, Call of Duty: Modern Warfare 2 to look forward to," she added.

The Xbox 360 continues to be the only console to show year-to-date growth. Though its 202,900 sales for July are down slightly from the 205,000 reported in July of 2008, combined unit sales for the year are up 17 per cent from the same seven-month period last year.

Hardware revenue dropped 37 per cent over the sales seen in July of 2008, from USD 447,710,000 to USD 289,940,000. Year-to-date hardware revenue is down 16 per cent, while overall games industry revenue has fallen 14 per cent.

The full hardware sales breakdown follows.

* Nintendo DS - 538,900
* Nintendo Wii - 252,200
* Xbox 360 - 202,900
* PlayStation Portable - 122,800
* PlayStation 3 - 121,800
* PlayStation 2 - 108,000
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DarcSeven
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I'm gonna sing the DOOM Song.
I know that this is the official "Fuck Sony" topic, but this is such a huge dick move from Microsoft that made Activision's price hike for Modern Warfare 2 in the UK look like a minor inconvenience for those guys. I know Microsoft said some bullshit about the exchange rate, but like I said it's bullshit.

http://www.eurogamer.net/articles/ms-increases-arcade-360-price-in-uk

"Retailers have told Eurogamer that Microsoft will increase the price of the Arcade Xbox 360 bundle to £159.99 (from £129.99) starting 1st September. The five XBLA games will no longer be included in the bundle, either.

ShopTo boss Igor Cipolletta received confirmation from Microsoft this morning, as did a corroborating independent retail chain source.

We're also told that Microsoft will bump the price of individual Xbox 360 accessories by one or two pounds. Our independent retail source said this is being done to counteract the poor pound-to-Euro currency exchange rate.

Furthermore, the email from Microsoft to retailers mentioned only Arcade and Elite bundles. This strengthens rumours that the Premium Xbox 360 bundle is being discontinued."
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sheath
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I have been, and remain, non-sequitur
Look for a lot more of this from companies that actually have a handle on their bottom line. The world economy has changed, forever.
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Belpowerslave
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http://news.yahoo.com/s/ap/20090818/ap_en_ot/us_tec_sony_playstation_price_cut

There is it. This is real, real bad news for the 360...Sony is going to be catching up really quickly now. With this talk of this generation lasting for more than 5 years, Sony may end up on top at the end. :(

Bel
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