The fatal clock timing flaw that causes switches, routers and security appliances die after about 18 months of service is apparently a feature of some Juniper products.
Cisco was the first vendor to post a notice about the problem earlier this month saying the notice covers some of the company’s most widely deployed products, such as certain models of its Series 4000 Integrated Services Routers, Nexus 9000 Series switches, ASA security devices and Meraki Cloud Managed Switches.
Juniper is telling its customers something similar:
“Although we believe the Juniper products with this component are performing normally as of February 13, 2017, the [listed] Juniper products could after the product has been in operation for at least 18 months begin to exhibit symptoms such as the inability to boot, or cease to operate. Recovery in the field is not possible. Juniper product with this supplier’s component were first placed into service on January 2016. Jupiter is working with the component supplier to implement a remediation. In addition, Juniper’s spare parts depots will be purged and updated with remediated products.”
The products in the warning comprise 13 Juniper switches, routers and other products including the MPC7E 10G, MPC7E (multi rate), MX2K-MPC8E, EX 920 Ethernet switches and PTX3000 integrated photonic line card.
So far neither Cisco nor Juniper have blamed Intel for the fault. However, Chipzilla did describe a flaw on its Atom C2000 chip which is under the bonnet of shedloads of net gear.
Intel said that problems with its Atom chip will hurt Intel’s 2016 Q4 earnings. CFO Robert Swan said that Intel was seeing a product quality issue in the fourth quarter with slightly higher expected failure rates under certain use and time constraints.
Swan said that it will be fixed with a minor design fix that Intel was working with its clients to resolve.
Intel had hoped it would see the back of its short-lived low-power Atom chips for servers. They were used in micro servers but also networking equipment from companies.
HPE and Dell are keeping quiet about the clock technology, though both are rumoured to use it. They might be hoping that Intel will come up with a fix so they can pretend it never happened.
Physical retailers are calling for a change in how video game pre-orders are conducted.
They are speaking to publishers and platform holders over the possibility of selling games before the release date. Consumers can pick up the disc 1 to 3 weeks before launch, but it will remain ‘locked’ until launch day.
The whole concept stems from the pre-loading service available in the digital space. Today, consumers can download a game via Steam, Xbox Live and PSN before it’s out, and the game becomes unlocked at midnight on launch day for immediate play (after the obligatory day one patch).
It makes sense to roll this out to other distribution channels. The idea of going into a shop to order a game, and then returning a month later to buy it, always seemed frankly antiquated.
Yet it’s not only consumer friendly, it’s potentially retailer and publisher friendly, too.
For online retailers, the need to hit an embargo is costly – games need to be turned around rapidly to get it into consumers’ hands on day one.
For mainstream retailers, it would clear up a lot of confusion. These stores are not naturally built for pre-ordering product, with staff that are more used to selling bananas than issuing pre-order receipts. The fact you can immediately take the disc home would help – it could even boost impulse sales.
Meanwhile, specialist retailers will be able to make a longer ‘event’ of the game coming out, and avoid the situation of consumers cancelling pre-orders or simply not picking up the game.
Yet when retail association ERA approached some companies about the prospect of doing this, it struggled to find much interest from the publishing community. So what’s the problem?
There are a few challenges.
There are simple logistical obstacles. Games often go Gold just a few weeks before they’re launched, and then it’s over to the disc manufacturers, the printers, the box makers and the distributors to get that completed code onto store shelves. This process can take two weeks in itself. Take the recent Nioh. That game was available to pre-download just a few days before launch – so how difficult would it be to get that into a box, onto a lorry and into a retailer in advance of release?
It also benefits some retailers more than others – particularly online ones, and those with strong distribution channels.
For big games, there’s a potential challenge when it comes to bandwidth. If those that pre-ordered Call of Duty all go online straight away at 12:01, that would put a lot of pressure on servers.
Piracy may also be an issue, because it makes the code available ahead of launch.
The end of the midnight launch may be happening anyway, but not for all games. If consumers can get their game without standing in the cold for 2 hours, then they will. And those lovely marketable pictures of snaking queues will be a thing of the past.
None of these obstacles are insurmountable. Getting the game finished earlier before launch is something that most big games publishers are trying to do, and this mechanism will help force that issue. Of course, the disc doesn’t actually have to contain a game at all. It can be an unlock mechanism for a download, which will allow the discs to be ready far in advance of launch. That strategy is significantly riskier, especially considering the consumer reaction to the same model proposed by Xbox back in 2013.
As for midnight events, there are still ways to generate that big launch ‘moment’. Capcom released Resident Evil 7 with an experiential haunted house experience that generated lots of media attention and attracted a significant number of fans. Pokémon last year ran a big fan event for Sun and Moon, complete with a shop, activities, signing opportunities and the chance to download Mew.
So there are other ways of creating launch theatre than inviting consumers to wait outside a shop. If anything, having the game available in advance of launch will enable these theatrical marketing events to last longer. And coupled with influencer activity, it would actually drive pre-release sales – not just pre-release demand.
However, the reality is this will work for some games and not for others, and here lies the heart of the challenge.
Pre-ordering is already a relatively complex matter, so imagine what it’ll be like if some games can be taken home in advance and others can’t? How many instances can we expect of people complaining that ‘their disc doesn’t work’?
If this is going to work, it needs cross-industry support, which isn’t going to happen. This is a business that can’t even agree on a digital chart, don’t forget.
What we may well see is someone giving this concept a go. Perhaps a digital native publisher, like Blizzard or Valve, who can make it part of their PR activity.
Because if someone like that can make the idea work, then others will follow.
The positive reviews pouring in from all corners for Capcom’s Resident Evil 7 are a welcome validation of the firm’s decision to go in quite a radically new direction with the series, but Capcom isn’t the only company that will be happy (and perhaps a little relieved) by the response to the game. A positive reaction to RE7 is also hugely important for Sony, because this is the first real attempt at proving that PSVR is a worthy platform for full-scale, AAA games, and much of the credibility of the nascent VR platform rests on RE7.
Although some of the sentiment in reviews of the game suggests that the VR mode is interesting but somewhat flawed, and several reviewers have expressed a preference for playing on a normal screen, the game’s VR aspect undoubtedly fascinates consumers and seems to be implemented well enough to justify their interest. In the process, it also justifies Sony’s investment in the title – the company did a deal that secured a year-long VR exclusivity window for PSVR – and Capcom’s own faith in the burgeoning medium, which undoubtedly played a large role in the decision to switch the entire game over to a first-person perspective.
The critical success of RE7, and the likely commercial success that will follow, comes at a crucial juncture for PSVR. Although the hardware was well-reviewed at launch and remains more or less supply-constrained at retail – you certainly can’t get your hands on one without paying a hefty re-seller premium in Japan at the moment, and believe me I’ve tried – there’s an emerging narrative about the VR headset that’s distinctly negative and pessimistic. Plenty of op-eds and videos have popped up in recent weeks comparing PSVR to previous Sony peripheral launches like PlayStation Eye and PlayStation Move; hardware that was launched with a lot of heavy marketing support but which the giant company rapidly seemed to lose interest in, condemning it to a few years of token, declining software support before being quietly shelved altogether.
It’s worth noting, of course, that neither Eye nor Move actually died off entirely – in fact, both of these technologies have made their way into PSVR itself, with the headset essentially being an evolution of a number of previous Sony technologies that have finally found a decent application in VR. However, there’s no question but that Sony has a bad track record with peripherals, and those interested in the future of PSVR should absolutely be keeping a close eye on the company to see if there are any signs of it repeating its past behaviour patterns.
Most of what’s being written now, however, feels premature. PSVR had a pretty solid launch line-up, with good support from across the industry; just this week it got its first truly big third-party AAA title, which is receiving excellent reviews, and later in the year it’s got some big launches like GT Sport on the way. The pace of software releases slumped after the launch window, but that’s not unusual for any platform. There’s nothing about PSVR that you can point to right now and declare as evidence of Sony’s focus shifting away; it feels like editorials claiming this are doing so purely on the basis of Sony’s track record, not the facts as they exist now.
If you really want to know how PSVR is shaping up, there are two key things to watch out for in the near future. The first will be any data that’s released regarding the performance of RE7’s VR mode; is it popular? Is it being played widely? Does it become a part of the broad conversation about the game? Much of this latter aspect is down to Sony and Capcom’s marketing of course; there’s an opportunity to push the VR aspect of RE7 as a genuinely unique experience with appeal even beyond the usual gaming audience, and if that can be capitalised upon, it will likely secure PSVR’s future to a large degree. What’s crucial, though, is that every other company in the industry will be watching RE7 like hawks; if proper, well-integrated PSVR support seems to be a major selling factor or a popular feature, you can be guaranteed that other publishers will start to look at their major franchises with a view to identifying which of them would suit a similar “traditional display plus optional VR” approach.
The other thing to watch for, unsurprisingly, is what Sony does at E3 and other major gaming events this spring. This is really where we’ll see the proof of the company’s focus – or lack of same. There’s still plenty of time to announce VR titles for the back half of this year, which is likely to be the crucial point for PSVR; by the time we slip into the second half of 2017, the hardware will no longer be supply constrained and the early adopters buying for novelty will be all but exhausted. That’s the point in time where PSVR’s software line-up really needs to come together coherently, to convince the next wave of potential purchasers that this is a platform worth investing in. If it fails that test, PSVR will join Move and Eye in the graveyard of Sony’s failed peripherals; success will turn it into a cornerstone of the PS4 for the coming years.
So keep a close eye on E3. Part of this is just down to optics; how much time and focus does the firm devote to PSVR on stage at its conference? If it’s not very much, if the PSVR section feels rushed or underemphasised, that will send a strong message that Sony is back to its old bad habits and has lost interest in its latest peripheral already. A strong, confident PSVR segment would convince consumers and the industry alike that the headset isn’t just another easily abandoned gimmick; better yet if this is backed up by plenty of the big games being announced having PSVR functionality built into them, so the device can be referred back to repeatedly during the conference rather than being confined to its own short segment.
It’s more than just optics though; the reality is that PSVR, like any platform, needs software, and Sony needs to lead the way by showing that it’s truly devoted to its own hardware. It may seem a little unfair that people are already keen to declare PSVR to be stumbling due to lack of attention, and well, it is a little unfair – but nobody should be surprised that people are seeing a pattern here that Sony itself clearly established with its behaviour towards previous peripherals. That’s the reputation the firm has, unfortunately, created for itself; that makes it all the more important that it should convince the world of its commitment to PSVR when the time comes.
It would appear that the trend of big publishers hosting their own events will continue in 2017. Last year’s E3 show floor was missing booths from the likes of Electronic Arts, Activision Blizzard, Disney and Wargaming. For its part, EA decided it could better serve the fans by hosting its own event next door to E3, and now the publisher has confirmed that EA Play will be making a return for the second year in a row, but it won’t be as close to the Los Angeles Convention Center.
EA Play will be held from June 10-12 at the Hollywood Palladium, which is around seven miles away. “Whether in person or online, EA Play 2017 will connect fans around the world to EA’s biggest new games through live broadcasts, community content, competitions and more. Those that can attend in Hollywood will experience hands-on gameplay, live entertainment and much more. For anyone joining digitally around the world, EA Play will feature livestreams, deeper looks into EA’s upcoming games and experiences, and content from some of the best creators in the community,” the company stated in a press release.
Furthermore, a spokesperson confirmed to GamesIndustry.biz that EA will indeed be skipping out on having a major E3 presence. “EA Play was such a powerful platform for us last year to connect with our player community. We learned a ton, and we wanted to build on everything we loved about last year’s event to make EA Play 2017 even better,” EA corporate communications VP John Reseburg said.
“So after an extensive search, we’ve selected the Hollywood Palladium as a place where we can bring our vision of creativity, content and storytelling to life, and build an even more powerful experience to connect with players, community leaders, media and partners. EA Play 2017 will originate from Hollywood, with more ways for players around the world to connect and experience the excitement.”
It’ll be interesting to see what the other major publishers do about E3 this year. We’ll be sure to keep you posted.
According to the provided details, the new HDMI v2.1 specification will be backward compatible with earlier versions and in addition to higher video resolution and refresh rates, including 8K@60Hz and 4K@120Hz, it will also bring support for Dynamic HDR, Game Mode variable refresh rate (VRR), eARC support for advanced audio formats and the new 48G cable that will provide 48Gbps of bandwidth which is a key for 8K HDR support.
The full list of resolutions and refresh rates start with 4K at 50/60Hz and 100/120Hz and climbs all the way up to 10K resolution at both 50/60Hz and 100/120Hz.
The big surprise is the new Game Mode VRR, which is similar with AMD FreeSync and Nvidia G-Sync, and meant to provide stutter-, tearing- and lag-free gaming, on both consoles and the PC.
Another big novelty is the all new 48G cable, which will provide enough bandwidth for higher resolutions with HDR. The old cables will be compatible with some of the new features, but for 8K/10K with HDR, you will need the new HDMI v2.1 cable.
According to HDMI Forum, the new HDMI v2.1 specification will be available to all HDMI 2.0 Adopters which will be notified when it is released in early Q2 2017.
Dean Hall, CEO of RocketWerkz and previously lead designer of DayZ, has spoken openly on Reddit about the harsh financial realities of VR development, explaining that without the subsidies provided by platform exclusives and other mechanisms, the medium would currently be largely unviable.
In an extended post which has garnered over 200 comments, Hall proclaimed that there was simply “no money” in VR game development, explaining that even though his VR title Out of Ammo had sold better than expected, it remained unprofitable.
Hall believes that many consumer expectations from the mature and well-supported PC market have carried over to VR, with customers not fully comprehending the challenges involved with producing content for such a small install base.
“From our standpoint, Out of Ammo has exceeded our sales predictions and achieved our internal objectives,” Hall explained. “However, it has been very unprofitable. It is extremely unlikely that it will ever be profitable. We are comfortable with this, and approached it as such. We expected to lose money and we had the funding internally to handle this. Consider then that Out of Ammo has sold unusually well compared to many other VR games.”
Pointing out that making cross-platform VR to ameliorate that small install base is not as simple as cross platform console development, Hall went on to talk about the realities of funding VR games, and what that meant for the studios involved.
“Where do you get money to develop your games? How do you keep paying people? The only people who might be profitable will be microteams of one or two people with very popular games. The traditional approach has been to partner with platform developers for several reasons:
“The most common examples of this are the consoles. At launch, they actually have very few customers and the initial games release for them, if not bundled and/or with (timed or otherwise) exclusivity deals – the console would not have the games it does. Developers have relied on this funding in order to make games.
“How are the people who are against timed exclusives proposing that development studios pay for the development of the games?
“There is no money in it. I don’t mean ‘money to go buy a Ferrari’. I mean ‘money to make payroll’. People talk about developers who have taken Oculus/Facebook/Intel money like they’ve sold out and gone off to buy an island somewhere. The reality is these developers made these deals because it is the only way their games could come out.
“Here is an example. We considered doing some timed exclusivity for Out of Ammo, because it was uneconomical to continue development. We decided not to because the money available would just help cover costs. The amount of money was not going to make anyone wealthy. Frankly, I applaud Oculus for fronting up and giving real money out with really very little expectations in return other than some timed-exclusivity. Without this subsidization there is no way a studio can break even, let alone make a profit.
“Some will point to GabeN’s email about fronting costs for developers, however I’ve yet to know anyone who’s got that, has been told about it, or knows how to apply for this. It also means you need to get to a point you can access this. Additionally, HTC’s “accelerator” requires you to set up your studio in specific places – and these specific places are incredibly expensive areas to live and run a studio. I think Valve/HTC’s no subsidy/exclusive approach is good for the consumer in the short term – but terrible for studios.
“As I result I think we will see more and more microprojects, and then more and more criticism that there are not more games with more content.”
In addition to the financial burdens, Hall says that there are other pressures too. For example, in his experience VR development burns people out very quickly indeed, with the enthusiasm of most, including himself, waning after a single project.
“I laugh now when people say or tweet me things like ‘I can’t wait to see what your next VR game will be!’ Honestly, I don’t think I want to make any more VR games. Our staff who work on VR games all want to rotate off after their work is done. Privately, developers have been talking about this but nobody seems to feel comfortable talking about it publicly – which I think will ultimately be bad.”
“For us it became clear that the rise of VR would be gradual rather than explosive when in 2015, it was revealed that the Oculus Rift and HTC Vive would be released in 2016 and that the gold rush would be on hold”
Sam Watts, Make Real
It’s not a universal opinion among VR developers, however: there was opposition to Hall’s points both within and beyond the thread. Sam Watts, Operations Lead at Make Real had the following to say.
“I think the reality of that thread is a direct result of a perceived gold rush by developers of all sizes to a degree, since analyst predictions around sales volumes of units were far higher than the reality towards the end of the year. There have been waves of gold rush perceptions with VR over the past few years, mostly around each release of new hardware expecting the next boom to take the technology into the mainstream, which has mostly failed to materialise.
“For us it became clear that the rise of VR would be gradual rather than explosive when in 2015, it was revealed that the Oculus Rift and HTC Vive would be released in 2016 and that the gold rush would be on hold.”
Watts also sees a healthier VR ecosystem on the way, one where big publishers might be more willing to invest in the sort of budgets which console games are used to.
“Whilst typical AAA budgets aren’t yet being spent on VR (to our knowledge) it doesn’t mean AAA isn’t dipping their toe in the water. The main leader being Ubisoft who created a small VR R&D team that eventually became the Eagle Flight devs. They have avoided what many early VR developers were worried about AAA approach to VR by prototyping, iterating on design, making mistakes, learning from them and working out what does and doesn’t work in VR, even creating a now widely popular comfort option of the reduced peripheral vision black tunnel effect. They didn’t just storm in late to the party, throwing AAA megabucks around at the problem, assuming money would make great games.
“I know Oculus, Steam, Sony and Razer are still funding games titles for development in 2017, I would hope to see this continue beyond to ensure the continued steady adoption and rise of VR as a new gaming platform moving forwards. This will help continue to improve the quality of content offering on the platforms to ensure full gaming experiences that gamers want to buy and return to, rather than just a series of short tech demos, are available, helping establish the medium and widen the net.”
The number of games on Steam continues to rise at a daunting rate. According to new data from Steam Spy, the number of full games released on the store this year rose 40% over 2015.
Steam Spy founder Sergey Galyonkin published a chart on Twitter that indicated a total of 4207 games launched on Steam in 2016, up from 2964 last year. If accurate, that means 38% of all games on Steam were released within the last 12 months – a sobering thought for any developer trading on Valve’s market leading platform.
Of course, the notion that Steam is crowded with product is hardly new, but Steam Spy’s chart – republished above – clearly illustrates the pace at which the trend is playing out.
The only small consolation is that the 40% rise over last year is actually lower than the 67% increase in new games between 2014 and 2015. Galyonkin noted that the chart doesn’t include movies and non-game software, but it also filters out relevant content like DLC packs and “games without owner data.”
Valve is certainly cognisant of the issues that Steam’s teeming inventory has created for both developers and consumers. It has responded with two “Discovery Updates” that gave more control over the experience to both groups, the first in 2014 and the second little more than a month ago.
Following the second Discovery Update, GamesIndustry.biz talked to developers about the “huge impact” of the changes.
As the numbers from Black Friday and Thanksgiving weekend continue to trickle in, many analysts are examining how the holiday sales picture is coming together this year. While The NPD Group is not ready to give its full assessment just yet, the firm did note to GamesIndustry.biz that digital promotions on PlayStation Network and Xbox Live were much more aggressive this year and may have impacted the retail channel. Digital aside, the sector that seemed to struggle the most is virtual reality, according to SuperData, which said VR has been the “biggest loser.”
Thanks to “notably fewer units sold than expected due to a relatively fragmented title line-up and modest marketing effort,” VR headsets are now expected to sell even fewer than previously thought. SuperData’s revised forecast for 2016 calls for under 750k PlayStation VR units sold (their previous estimate was 2.6 million) with Google’s Daydream selling just 261k (down from 450k). Previous estimates for HTC Vive, Oculus Rift and Gear VR remain unchanged at 450k, 355k and 2.3 million, respectively.
As you can see, expectations for PSVR have seen the most dramatic shift. Stephanie Llamas, director of research and insights at SuperData, explained to us, “PSVR had the best opportunity to benefit from the holidays but their supply inconsistencies and lack of marketing have put them behind their potential. They did not offer any first-party deals this weekend, restock bundles or market the device, pushing instead for the PS 4 Pro. They have also pointed out that VR looks even better on a Pro than a standard or slim PS 4, so the message to most gamers is: Get the Pro now, then the PSVR later. As a result, we won’t see them break 1M shipments until well into the new year.”
Llamas added that Sony may be deliberately limiting PSVR supply until it can do a better job with supporting the platform. “Had Sony pushed the PSVR the way they’ve been pushing their other new hardware, the demand would have certainly fulfilled a supply of over 2 million. However, given its quiet release it’s clear they’re being cautious before fully investing in the tech. Without the ‘killer app’ and the slow, steady release of AAA content, they will release less than 1 million devices until they have content they feel confident will bring in the praise they want. They can afford to take it slow since they have no competition for now, so their supply and sales will rise steadily into 2017 as opposed to riding the seasonal wave,” she said.
As for Oculus, Llamas believes they’ve taken a risk by possibly splitting their own user base. “The Rift’s Touch controllers are an opportunity for Oculus to penetrate, but not many headsets have moved, especially with their round-about deal where purchasers earned $100 Oculus credit rather than just getting $100 off. Oculus’s hardware release strategy has also slowed them down and split their user base, so developers are having to make some choices around whether they should develop for both Touch and non-Touch users. This means development has slowed and is becoming another barrier to growth,” she remarked.
Looking at the non-VR games market, Nintendo may actually prove to be the biggest winner, thanks to updates both to Pokémon GO and selling out of its NES mini. “On mobile we recorded a spike in earnings as players made the most of the Thanksgiving special for Pokémon GO. The game’s ability to stay in the forefront of people’s minds as we approach the release date for Super Mario Run may prove beneficial for Nintendo, which has yet to make a convincing claim on the $38 billion mobile games market,” said Joost van Dreunen.
Overall digital game sales this holiday are down 2% from 2015 so far, but the impact of digital has grown tremendously in just a few years. “In 2012 full game downloads accounted for only 6% of total unit sales around the Thanksgiving holiday in the United States. For 2016E that number was four times higher at 24%,” van Dreunen said.
The other big contributor to the slow holiday start has been big discounting, according to Wedbush Securities’ Michael Pachter. “We saw greater discounting of high-profile new video games this Black Friday compared to last year. Last year’s top sellers, Activision Blizzard’s Call of Duty: Black Ops III , Bethesda Softworks’ Fallout 4, and EA’s Star Wars Battlefront, saw sticky pricing on Black Friday, with the $60 price point remaining largely intact. While discounting of sports games happens each year, many other titles that maintain pricing on Black Friday were listed at discounts of 40% or more this weekend,” he observed.
“For example, Walmart had EA’s Battlefield 1 and Titanfall 2 at $27, and Microsoft’s Gears of War 4 and Take-Two’s Mafia III at $35. Walmart also had Activision Blizzard’s Call of Duty: Infinite Warfare Legacy Edition, which includes Modern Warfare Remastered , for $57, a $23 discount. Discounting of Call of Duty: Infinite Warfare began earlier in the week, with widespread discounts of roughly $20 for the different versions of the game. Hardware discounting for the PS4 and Xbox One was largely consistent with 2015, as $50 discounts were commonplace.”
Pachter also agreed that the “pace of the mix shift to digital full game downloads continues to be brisk,” but we probably won’t know whether digital sales fully made up for retail declines until we get the complete NPD report for 2016 sometime in January.
In a week’s time, what is arguably the first truly great commercial experiment of the new VR age will begin. For the first time, consumers will be able to go out and buy a VR headset that’s (relatively) inexpensive, that doesn’t require a costly hobbyist PC to operate, and that provides a “good enough” VR experience for gaming and other applications. If there’s to be a sweet spot in the virtual reality market, Sony will be planting its flag firmly in it next Thursday.
Reviews of the device have started to appear and are pretty much what you’d expect. It’s good; we’ve known that from the countless demos and trade show appearances PSVR has made this year. It’s not as technically accomplished as the HTC Vive or the Oculus Rift, but it’s a far more comfortable, well-designed piece of hardware, and its technical shortfalls are far fewer and less noticeable than you’d expect from such a cheap device running on such comparatively low-powered hardware. It’s certainly an entirely different class of experience than any of the “toy” VR experiences currently offered by mobile tech like Samsung’s Gear VR, a situation which Google’s newly announced Daydream headset seems unlikely to change.
So yes, this is the sweet spot, if such a thing exists. Good enough to actually want to use, unlike current mobile VR devices, cheap enough to be accessible to a wider audience of gamers and enthusiasts, and with common sense (if occasionally frustrating) trade offs between complexity of setup and physical arrangement, and accuracy of control. If a VR headset is to rescue this putative Year of VR from the somewhat disappointing launches of HTC and Oculus’ consumer devices – both of which saw interest plateau in the post-launch period – then it’s going to be PlayStation VR.
Is that what Sony has in mind, though? One peculiarity of the PSVR launch is that beyond the specialist press, it’s something of a non-event. Marketing support for the launch is minimal; there’s far less hype and visibility around the product than there would be around, for example, the launch of a major game. Here in Japan, PSVR barely warrants a mention in Sony’s current barrage of advertising, which is promoting PlayStation 4 with TV and streaming site commercials that highlight the launch of games like Persona 5 and Yakuza 6, the arrival of new console hardware, and oh yeah, PSVR is a thing too.
One could argue that Sony would be foolish to push PSVR too hard given that pretty much the entirety of its early shipments are spoken for by pre-orders. We still don’t know how many units of PSVR will ship for launch, or how many are projected to ship by year-end, but every indication is that the numbers are relatively small, at least by comparison with the PS4’s installed base. It’s not unreasonable to expect that PSVR will be for all intents and purposes supply-constrained through into early 2017, making it comfortably the most commercially successful of the tethered VR platforms – regardless of whether the company spends a single cent on further marketing.
However, the slightest glance back over the history of hardware launches in the games business and beyond would demonstrate that companies generally do not row back their marketing budgets just because of being supply-constrained; if anything, this encourages them to redouble their efforts. That’s because supply constraints act as a multiplier on marketing budgets. When demand is outstripping supply, every extra notch that you can ratchet up that demand through your marketing efforts guarantees more media coverage, more word of mouth and more visibility for your product, creating a halo of desirability around the platform which can give a long-term boost to sales that lasts for months or even years after the initial supply constraints are lifted.
That Sony has seemingly decided to eschew that strategy for PSVR is interesting, but probably speaks to a confluence of a number of different factors. For a start, it’s rare for a platform holder to be putting not one but two major new pieces of hardware on the market at once, which is what Sony is doing with PSVR in October and PS4 Pro in November. A huge marketing push, widespread coverage of shortages and the resulting desirability halo that would build around PSVR would be great for the VR headset, but might negatively impact the now overshadowed PS4 Pro. That would hurt all the more if, as is likely, PS4 Pro is not supply constrained while PSVR is. That’s definitely a factor playing into Sony’s decision making here.
There’s something else in play too, though. Lots of software is on the way for PSVR, and there’s actually a pretty respectable line-up at the outset – but reviews of the system are fairly blunt about the extent to which much of it feels more like it’s demoing the hardware, and the concept of VR itself, rather than being a proper, full-strength VR game experience. The games aren’t just short, they expose kinks in the PS Move control system (which may be fixable or may be an innate problem PSVR just has to work around forever) and sidestep major issues instead of tackling them – for example, the Batman VR title’s decision to make the player jump from location to location, rather than walking between them, to avoid motion sickness.
In short, while there’s interesting and even accomplished stuff in there, it all sounds rather like the kind of thing that you play to show off a new system’s capabilities, rather than the kind of thing that makes you say, “you’ve got to go out and get PSVR so you can play this game”. The enthusiasts and the VR faithful don’t need a killer app – they just need enough of a taster to convince themselves that the killer apps will come, given time – but the general public absolutely does. It’s easy for enthusiasts – a category which, if you’re reading this, probably encompasses you – to underestimate the psychological barrier VR needs to overcome. For many consumers, the prospect of strapping on a headset that looks like a Daft Punk cosplay prop, isolating themselves from the world around them and potentially looking like a complete tool as they flail around with objects nobody else in the room can see is a pretty big ask.
A great killer app game that gets the world gushing will overcome that barrier. That may be on the way; all eyes are on January’s Resident Evil 7, which could potentially be VR’s first truly huge AAA title. Until that kind of game is available, though, Sony may be well advised to focus on the VR faithful and keep its marketing powder dry. That’s certainly what seems to have happened so far; this is entirely anecdotal, but I’ve been surprised at just how few people have asked whether I’m getting a PSVR (and if they can bring an offering of beer around in order to have a go on it). Far fewer people have asked me about PSVR than have asked about PS4 Pro, or even Xbox One S. Enthusiasts know about it; the average gamer simply doesn’t seem to care yet.
Given the hurdles facing mainstream VR adoption, that may be for the best. It’s important that when the majority of consumers start to experience VR, their experience of it is fantastic, not just a demo or a proof of concept but a game that makes them want to own this technology right now. Saving the marketing blitz and letting PSVR’s software library mature first could be the best way to prevent the so-called Year of VR from ending with the Winter of VR Discontent.
Oculus CEO Brendan Iribe has emphasized the freedom that Oculus VR allows its employees to support their personal views, a freedom he said also applied to Palmer Luckey.
In a post on his Facebook page, Iribe spoke about Luckey’s regret at the negative impact the situation had created for “the company, our partners, and the industry.” However, he offered a measure of support for Oculus VR’s founder, citing Luckey’s right to independent political beliefs.
“Everyone at Oculus is free to support the issues or causes that matter to them, whether or not we agree with those views,” he said. “It is important to remember that Palmer acted independently in a personal capacity, and was in no way representing the company.”
Original Story: After numerous publications (GamesIndustry.biz included) no doubt flooded Oculus with requests for comment on Friday, when the story broke that Palmer Luckey allegedly had been funding a pro-Trump “shitposting” group, the man himself took to Facebook (which owns Oculus) to apologize for his actions.
“I am deeply sorry that my actions are negatively impacting the perception of Oculus and its partners.The recent news stories about me do not accurately represent my views,” he wrote. “Here’s more background: I contributed $10,000 to Nimble America because I thought the organization had fresh ideas on how to communicate with young voters through the use of several billboards. I am a libertarian who has publicly supported Ron Paul and Gary Johnson in the past, and I plan on voting for Gary in this election as well.”
Luckey went on to deny that he was the author behind the ‘NimbleRichMan’ posts on Reddit and the vice president of Nimble America: “I am committed to the principles of fair play and equal treatment. I did not write the ‘NimbleRichMan’ posts, nor did I delete the account. Reports that I am a founder or employee of Nimble America are false. I don’t have any plans to donate beyond what I have already given to Nimble America. Still, my actions were my own and do not represent Oculus. I’m sorry for the impact my actions are having on the community.”
The original Daily Beast article, however, confirmed that Luckey was indeed the man behind “NimbleRichMan” and author Gideon Resnick reiterated that fact on his Twitter account today.
Here is where I sought that clarification from him and what he said. pic.twitter.com/pPfLKUX5Cg
— Gideon Resnick (@GideonResnick) September 24, 2016
One more email: Luckey clearly states in here that the NimbleRichMan account represents him. pic.twitter.com/RC4mXPFDkM
— Gideon Resnick (@GideonResnick) September 24, 2016
So it’s essentially Resnick’s word against Luckey’s, but Oculus Head of Content Jason Rubin urged people to take Luckey at his word. “I wanted to give @PalmerLuckey a chance to respond before I posted… knowing Palmer, I take him at his word,” Rubin tweeted, adding, “30 years in the Game business I would not work in a place that I thought condoned or spread hate. Nor would I remain silent if I saw it.”
Denials from Luckey and support from Oculus colleagues aside, the development community is already reacting, and some are pulling support for the Rift. Polytron, which is making a VR game called SuperHyperCube, noted on Twitter that it will not be supporting Oculus now. Scruta Games took it one step further, asking that Luckey leave the company he founded: “Until @PalmerLuckey steps down from his position at @oculus, we will be cancelling Oculus support for our games,” the developer said. Tomorrow Today Labs issued a similar sentiment: “Hey @oculus, @PalmerLuckey’s actions are unacceptable. NewtonVR will not be supporting the Oculus Touch as long as he is employed there.”
Edge of Nowhere developer Insomniac Games said it “condemns all forms of hate speech” and issued the following statement to Polygon as well: “While everyone has a right to express his or her political opinion, the behavior and sentiments reported do not reflect the values of our company. We are also confident that this behavior and sentiment does not reflect the values of the many Oculus employees we work with on a daily basis.”
Not all developers are punishing Oculus for Luckey’s actions, however. James Green, co-founder of VR developer Carbon Games, commented to Motherboard, “This backlash is nonsense. I absolutely support him doing whatever he wants politically if it’s legal. To take any other position is against American values.”
Oculus has had a number of obstacles to overcome on its path to retail, with Rift headsets not making it out to Kickstarter backers for months after launch and some consumers feeling that they had been misled on what the actual price of the unit would be. Luckey admitted that he “handled the messaging poorly” back in January, and now just as manufacturing of the headset has finally improved and the flow of software has started to increase as the company prepares to launch its Oculus Touch controllers, this PR storm and accusations that its founder is vice president of a racist, pro-Trump organization could represent a significant setback. It’s going to be interesting to see how this all plays out in the next few weeks and as we head into the holiday shopping season.
AMD has been on the blower to point out that figures from Mercury and Jon Peddie Research, show that it has been growing market share for the fourth consecutive quarter.
A spokesman for AMD said that for the last nine months, AMD has got its mojo back through its Radeon Technologies Group. During that time, the company has made significant investments in hardware, marketing, and software for the graphics line-up leading to four straight quarters of market share growth.
Mercury Research said that AMD gained three points of unit volume share in Q1 2016. The Mercury Research and Jon Peddie Research market share data for Q2 2016 shows AMD seeing its fourth consecutive quarter of desktop discrete GPU share growth, driven by AMD’s strongest quarter of channel GPU sales since 2015 and the commencement of shipping of the next generation Polaris GPUs.
In total discrete graphics, AMD gained 4.8 share points to 34.2 per cent of market by unit volume (based on Mercury Research). In desktop discrete sector, AMD saw a 7.3 share point increase, rising to 29.9 per cent market share.
“This is another positive testament AMD’s strategy is working as the company drives forward towards “Vega” offerings for the enthusiast GPU market, which AMD expects to bring to market in 2017 to complement our current generation of “Polaris” products,” the spokesperson said.
“AMD believes it is well positioned to continue this trend in market share gains with the recently launched Radeon RX 480, 470, and 460 GPUs that bring leadership performance and features to the nearly 85 per cent of enthusiasts who buy a GPU priced between $100 and $300,” she added.
Google is believed to be spending a small fortune getting content ready for the platform, particularly video games and apps, licensing sports leagues and shooting 360-degree videos.
Daydream is being hardwired into Android 7.0 which launched this week. Google says that Samsung, HTC, ZTE, Huawei, Xiaomi, Alcatel, Asus and LG had agreed to make “Daydream ready” smartphones.
Google wants the software to be the Android of VR. It will provide a VR platform and other outfits will create the hardware and its Android chums will configure their smartphones to run the beast. But while the product is nearly good to go, so far no one has put their hand up and said they will be making headsets specifically for the platform.
The VR market is getting crowded from Facebook, Sony, Samsung Electronics and HTC. However there are a limited number of apps and even fewer games. Sony’s Morpheus headset is tethered to its PlayStation video-game console, but Google is focused on lower quality mobile-based VR, whereby consumers snap their phones into a visor or headset. With the headset on, Daydream presents users with an array of apps, from YouTube to HBO Now.
It’s been more than five years since The NPD Group said it would start including digital data in its monthly reports on the US video game business. In those five years, not only has digital grown, but publishers, analysts, press and more have all thrown shade at NPD, questioning the relevancy of a service that only offers physical sales data in an increasingly digital era. Today, NPD is finally taking that first step to offer a more complete picture of the entire games market as it’s unveiled its digital point-of-sale (POS) sourced service, tracking SKU-level sales data on digital games.
“Following several years of beta testing, the Digital Games Tracking Service will allow participating clients to understand the size and growth of the digital market, and analyze attach rates and other important metrics. Combined with physical data available by NPD, these clients can gain a better understanding of the interplay between the physical and digital sales channels,” the firm explained in a press statement.
“As has been experienced across a wide variety of industries, digital has made a big impact on the overall gaming market, and we’ve risen to meet the demand for a reporting mechanism that tracks those sales in a timely and accurate way,” said Joanne Hageman, President, U.S. Toys & Games, The NPD Group. “With the participation and support of leading publishers – whose cooperation makes this possible – we are excited to launch an industry-first service that addresses a long-standing need.”
The usual report on physical sales data will now be combined with digital sales data and issued on July 21 instead of July 14; it’s expected to follow that cadence (the third data Thursday of the month) moving forward. Initially, NPD has gained the support of major publishers like EA, Activision, Ubisoft, Capcom, Square Enix, Take-Two, Deep Silver and Warner Bros. There are notable exceptions, however, like Bethesda as well as first-party publishers like Microsoft, Sony and Nintendo, but NPD analyst Liam Callahan promised that more publishers would be signing on as the service evolves.
“This has been several years of beta testing and we’ve been doing this in partnership with publishers, shaping the product, encoding the data the way the industry wants to see it. It’s really at the behest of or on the behalf of the publishers that we’re moving forward with this announcement… Really the goal is to bring a new level of transparency never before seen, at least in the US market. This is really the first step. We recognize that there’s still a ways to go, we want more publishers to join, we want to be able to project for people who are not participating. It’s an evolution, it’s something that takes time and our philosophy was really to start – if we waited to have every publisher in the world to sign up it would take forever. We’ll be improving this as time goes on,” he said.
Importantly, NPD will notate next to game titles on the chart that do not include digital data. Callahan wants the service, which is being produced with the assistance of EEDAR, to ultimately be able to project data even for non-participants but NPD isn’t starting with that ability just yet. Instead, it’ll focus on tracking revenue from full-game downloads across Xbox Live, PlayStation Network and Steam. Services like Battle.net and Uplay won’t be included at this point.
“EEDAR is excited to be part of this initiative with NPD and the participating publishers. Tracked digital revenues have seen annual growth of over 100% each year since 2012. In 2016, we’ve already tracked more digital revenue than we saw in 2012 and 2013 combined. This initiative is a great milestone for the industry which will allow publishers to make better business decisions with a broader data set,” added EEDAR CEO Rob Liguori.
Add-on content like DLC and microtransactions will be tracked as well, but that data will only be released to participants, not the media and public. “We’re waiting until that’s a little more fully baked for us to roll that out to the media. We’re doing things in stages,” Callahan said.
It may be frustrating for the media to not have a granular breakdown at the SKU level to see what portion of a game’s sales are digital versus physical, but NPD anticipates more openness as the service evolves.
NPD communications chief David Riley commented, “This is a closed service, the detailed data is only available to participants so if you’re a non-participating publisher you cannot see the data. The fact that we’re allowed to go out with something for the media is a huge step in the right direction. I think as the service matures and as the publishers get used to it and we get more on board, we have more history, we do some benchmarking, we can provide that, but what we wanted to do for multiple reasons, including appeasing the publishers was to combine full-game physical with full-game digital, keep away from the DLC, keep PC games separate because that’s a whole different ball of wax. It’s not comprehensive, but it’s the most comprehensive, we’re the first in the market to track this and we’re sort of very cautious.”
He added, “I expect a good old slamming from the industry press because of the limitations here but what we don’t want to do is open ourselves up by separating it at this time. We’ve just opened the gates right now. Just as you’ve seen a withdrawal [of data] on the physical side – we used to give units – this is sort of going to be the reverse I’m hoping and we can provide more over time.”
Working with the publishers is great, but there are numerous digitally released titles from indies which make up a growing piece of the industry pie. Will the service grow to track those titles too? “Indies are a big part of the industry in terms of their innovation and I think when I talk about our projection methodology and assets at NPD, that is part of how we can track everything, not just for publishers, including indie games and everything that’s outside the panel right now,” Callahan said.
“Some of those smaller games are published through a publisher or first-party so there are ways to get some of those with our publisher-sourced methodology, and otherwise we’re approaching it with developing a robust projection methodology. That’s certainly part of our plan, we’re not going to ignore the indie piece.”
In our previous conversations with NPD, the firm had hinted at possibly working towards the goal of global digital reports. That’s not off the table, but it’s not a focus at the moment. “US is our core competency… our vision is to expand this as much as we can in a way that makes sense for our partners. If that’s global that may be what we pursue. But we also want to do the best job that we can in projecting for the market and recruiting as many publishers as we can,” Callahan concluded.
Sony is over the hump. That’s the message that the company wanted investors and market watchers to understand from its presentations earlier this week. Though it expressed it in rather more finessed terms, the core of what Sony wanted to say was that the really hard part is over. Four years after Kaz Hirai took over the corporation; the transition – a grinding, grating process that involved thousands of job losses, the sale or shuttering of entire business units and protracted battles with the firm’s old guard – is over. The restructuring is done. Now it’s time for each business unit to knuckle down and focus on profitability.
It’s not all sunshine and rainbows, of course; even as Hirai was essentially declaring “Mission Complete” on Sony’s seemingly never-ending restructuring, the company noted that it’s expecting sales in its devices division (largely focused on selling Xperia smartphones) to decline this year, and there are concerns over soft demand for products from the imaging department, which provides the camera components for Apple’s iPhones among others. Overall, though, Sony is in a healthier condition than it’s been in for a long time – and it owes much of that robust health to PlayStation, with the games and network services division’s revenue targets rising by enough to make up for any weakness in other divisions.
When Hirai took over Sony, becoming the first person to complete the leap from running PlayStation to running Sony itself (Ken Kutaragi had long been expected to do so, but dropped the ball badly with PS3 and missed his opportunity as a consequence), it was widely expected that he’d make PlayStation into the core supporting pillar of a restructured Sony. That’s precisely what’s happened – but even Hirai, surely, couldn’t have anticipated the success of the PS4, which has shaved years off the firm’s financial recovery and given it an enviable hit platform exactly when it needed one most.
Looking into the detail of this week’s announcements, there was little that we didn’t already know in terms of actual product, but a lot to be read between the lines in terms of broad strategy. For a start, the extent of PlayStation’s role as the company’s “pillar” is becoming ever clearer. Aside from its importance in financial terms, Sony clearly sees PS4 as being a launchpad for other devices and services. PlayStation VR is the most obvious of those; it will start its lifespan as an added extra being sold to the PS4’s 40 million-odd customer base, and eventually, Sony hopes, will become a driver for additional PS4 sales in its own right. The same virtuous circle effect is hoped for PlayStation Vue, the TV service aimed at PlayStation-owning “cable cutters”, which has surpassed 100,000 subscribers and is said to be rapidly growing since its full-scale launch back in March.
Essentially, this means that two major Sony launches – its first major foray into VR and its first major foray into subscriber TV – are being treated as “PlayStation-first” launches. The company is also talking up non-gaming applications for PSVR, which it sees as a major factor from quite early on in the life cycle of the device, and is rolling out PlayStation Vue clients for other platforms – but it’s still very notable that PlayStation customers are being treated as the ultimate early adopter market for Sony’s new services and products.
To some degree, that explains the company’s desire to get PS4 Neo onto the market – though I maintain that a cross-department effort to boost sales of 4K TVs is also a key driving force there. In a wider sense, though, Neo is designed to make sure that the platform upon which so much of Sony’s future – games, network services, television, VR – is being based doesn’t risk all of those initiatives by falling behind the technology curve. Neo is, of course, a far less dramatic upgrade than Microsoft’s Scorpio; but that’s precisely because Sony has so much of its corporate strategy riding on PS4, while Microsoft, bluntly, has so little riding on Xbox One. Sony needs to keep its installed base happy while encouraging newcomers to buy into the platform in the knowledge that it’s reasonably up-to-date and future proof. Microsoft can afford to be rather more experimental and even reckless in its efforts to leapfrog the competition.
Perhaps the most impressive aspect of Sony’s manoeuvring thus far is that the company has managed to position the PlayStation as the foundation of such grand plans without making the mistake Microsoft made with the original Xbox One unveiling – ignoring games to the extent that the core audience questioned whether they were still the focus. PSVR is clearly designed for far more than just games, but the early focus on games has brought gamers along for every step of the journey. PlayStation Vue, though a major initiative for Sony as a whole, is a nice extra for PlayStation owners, not something that seems to dilute the brand and its focus. On the whole, there’s no sign that PlayStation’s new role at the heart of Sony is making its core, gaming audience love it any less.
On the contrary; if PlayStation Plus subscriptions are any measure, PlayStation owners seem a pretty happy bunch. Subscriptions topped 20 million recently, according to the firm’s presentation this week, which means that over 50% of PS4’s installed base is now paying a recurring subscription fee to Sony. PlayStation Plus is relatively cheap, but that’s still a pretty big chunk of cash once you add it up – it equates to an additional three or four games in the consoles attach ratio over its lifetime, which is nothing to be sniffed at, and will likely increase the profitability of the console by quite a few percentage points. In Andrew House’s segment of this week’s presentation, he noted that the division is shifting from a packaged model towards a recurring payments model; PlayStation Plus is only one step on that journey and it’s extremely unlikely that the packaged model (be it digital or a physical package) will go away any time soon, but it does suggest a future vision in which a bundle of subscriptions – for games, TV, VR content and perhaps others – makes up the core of many customers’ transactions with Sony.
That the truly painful part of Sony’s transition is over is to be celebrated – a healthy Sony is a very good thing for the games business, and we should all be hoping Nintendo gets back on its feet soon too. The task of the company, however, isn’t necessarily about to get any easier. PS4’s extraordinary success needs to be sustained and grown, and while early signs are good, the whole idea of using PlayStation as a launchpad for Sony’s other businesses remains an unproven model with a shaky track record (anyone remember the ill-fated PSX, a chunky white PVR with a PS2 built into it that was supposed to usher in an era of PlayStation-powered Sony consumer electronics?). But with supportive leadership, strong signs of cooperation from other parts of the company (the first-party Spiderman game unveiled at E3 is exactly the kind of thing the relationship between PlayStation and Sony Pictures should have been yielding for decades) and a pipeline of games that should keep fans delighted along the way, PlayStation is in the strongest place it’s been for over a decade.
In what it calls a drive further into the data centre market. Cavium has entered into a definitive agreement to acquire all outstanding QLogic common stock in a deal worth approximately $1.36 billion.
The acquisition adds Qlogic’s Fibre Channel and Ethernet controllers and boards to Cavium’s line up of communications, security and general-purpose processors making Cavium a full-line supplier to data centres.
It also means that Cavium can take on storage and networking with Broadcom, Intel and Mellanox. The deal also gives Cavium a mature software stack in storage and networking and operational savings expected to amount to $45 million a year by the end of 2017.
Both companies sell to server makers and large data centers with a customer overlap of more than 60 per cent. Qlogic’s customer base is highly concentrated with nearly 60 per cent of its business for the last several years to HP, Dell and IBM.