You know a company has had a rough set of results when its CEO needs to publicly state that they represent the lowest extent of a slump, with a bounce surely to follow; this being essentially the line that Nintendo boss Tatsumi Kimishima attempted to soothe worried investors with this week. It didn’t exactly work; Nintendo shares, which had been trading at their highest levels in five years, dropped back below the 23,000 Yen mark for the first time since last September. The figures reveal sentiment; investors aren’t sold on the Switch, don’t really know what to make of Super Mario Run, and while they’re generally more positive on Nintendo than they were a couple of years ago, they’re feeling jittery and nervous about the firm’s prospects.
As well they should. In fact, 2017 is likely to be a rollercoaster of a year for Nintendo investors, and those nerves are likely going to get more and more jangled as the year rolls on. The reason for that is simple; Nintendo is taking risks, and they’re not the kind of risks that it’s easy to calculate an over-under on. That makes them into the kind of risks that investors love and hate at the same time – but mostly hate. If Nintendo’s risk-taking pays off, it might soar, but there’s also a strong chance it’ll all come crashing down, and the worst part is, nobody can accurately assess what the risk of either of those scenarios, or anything in between, may be.
There are essentially two major risks Nintendo is taking on. The first, of course, is Switch. The company is hoping for Wii-like sales of the device; almost anything would be an improvement over the Wii U, of course, but in reality it probably needs to hit 40 or 50 million to be considered a genuine success, while anything below 20 million would be enough of a disappointment to cast a pall over the company’s entire future in the home console business. Switch is a high-concept device, quite unlike anything else on the market; from the control system it affords to the mixed-mode portable/home console design of the system, it’s a genuinely unusual piece of kit (far more so than the Wii U was) and that alone will undoubtedly inspire a lot of early adopters to pick one up out of sheer curiosity. It could ignite the imagination of a wide swathe of consumers and become a must-have entertainment device, like the Wii before it. It could equally prove attractive only to Nintendo’s fanbase and sink into much-loved but commercially disastrous obscurity like the Wii U.
My personal guess is that it’ll do far better than the Wii U, but come nowhere close to the success of the Wii, but I’m at pains to call that a guess and nothing more. Anyone demanding that their forecast of the device’s performance is of more worth than mere guesswork is, bluntly, a bit of a charlatan. Not only is the market into which Switch is launching extremely poorly understood at the moment (find me a single soul who predicted pre-launch that PS4, at this point in its lifespan, would be outselling the mighty PS2?), with vast new differences emerging between different global markets and demographic groups, the device itself also has no clear analogues to which we might look for guidance. The strength of the Switch is that it’s Nintendo doing something genuinely different and distinctive from its competition – a metric on which the Wii U, ultimately, failed. The weakness of Switch is that that means success or failure, though clearly influenced greatly by traditional factors like software support, is impossible to pin down with a probability calculation.
Having one big, risky venture on the go would be enough to make investors jumpy, but Nintendo has another one running in parallel. The company has been told for years by its investors that it should be involved in the smartphone market, and indeed its recently relatively buoyant share price is largely the result of its initial announcement of a partnership to do just that with DeNA in 2015, and the launch of Pokemon Go last summer. As the company’s titles roll out, though, things are getting a little more grounded and sober, and investors are perhaps recalling that the market they’ve told Nintendo to dive into is one of the riskiest in the business. The first game title created under the Nintendo-DeNA partnership (discounting Miitomo, which wasn’t considered a game, and Pokemon Go, which was simply Nintendo IP licensed out to a different developer, Niantic) was Super Mario Run, which has been largely well-received critically but hasn’t set the world on fire otherwise. Eschewing the F2P business model and the various hooks and enticements it offers for player retention was taken as reassuring by the company’s vocal core fans, but has seen Super Mario Run fade rapidly from consumer consciousness. After a backlash over its $10 price, which laid out just how uphill the struggle for premium-priced mobile games is, Mario Run has managed around a 5% conversion rate and $53 million in revenue so far.
To be clear – that’s not bad, it’s just unremarkable, and not really what investors had hoped for when they pushed Nintendo towards mobile. The company’s next launch, Fire Emblem Heroes, arrived this week and uses the more established business model for mobile titles; a few months down the line we’ll also have an Animal Crossing title on mobile. The thing is that despite the popularity of these franchises and the pedigree of their development teams, their success simply isn’t assured – even the very best mobile developers have had trouble replicating their greatest successes or even being consistently successful with their titles. Many of the world’s biggest mobile game companies are essentially sustained by one huge, evergreen game, and show no evidence of knowing how to bottle that lightning; the reality is that it’s a hugely fickle, difficult market where, even if you produce a brilliant game, external factors (including a pretty big dose of luck) play an inordinately large role in success. Nobody should doubt the quality of the games Nintendo will launch on smartphones, but nobody should consider a gigantic commercial hit to be a sure thing, either.
All that being said, the point here isn’t that Nintendo is going in the wrong direction; it’s that it’s facing a risky, bumpy year ahead, and that’s going to play merry hell with the firm’s relationship with its investors. Since, unfortunately, the media remains convinced that stock markets are magically possessed of grand insights unattainable to mere humans, like a modern-day Oracle of Delphi – where the reality is that stock markets, in their short-term motions at least, are just the sum total of a load of largely not terribly well informed people charging around in blind mob panics – we’re going to see a lot of context-free stories this year about Nintendo’s share price plunging or recovering as the balance of risk seems to sway one way or the other. The reality behind that is that at least in the next few months, the actual nature of that risk profile is going to be utterly obscure to everyone – even to Nintendo itself.
Right now, the wrong direction for Nintendo would be the direction it was headed in two years ago; competing head-to-head with Sony and Microsoft with a home console that was poorly differentiated from the competition; pretending smartphones hadn’t upended its market; making some of the best software in its history for some of the least-played hardware on the market. The right direction is one that changes that path, and change means risk – especially when the only avenues of change available to you involve innovation, untested ideas, and a tough, poorly understood market.
Buried in Nintendo’s statements this week is cause for great optimism; the success of Pokemon Sun/Moon, which are already among the best-selling installments in the series, was built upon the use of Pokemon Go as a marketing and awareness vehicle, allowing Nintendo to reactivate older consumers of the franchise and change the demographic profile of its audience. As a test run for its future strategy of building struts of mutual support between mobile and console titles, it’s been damned near flawless; sure, it got lucky with a timely implementation of AR tech and a lovely marriage of IP to gameplay, but the underlying business strategy has also played out as well as could be hoped. These are the things to watch for in the next year. Ignore the markets; with any company as highly exposed to risk as Nintendo is right now, share price movements will be exaggerated and hypersensitive, even to rumour and falsehood. Watch, instead, for evidence that Nintendo’s actual plans – the things it wants to sell, the consumers it wants to cultivate and the ways it wants to link together its IPs across platforms and approaches – are coming together or falling apart. Only that will tell us whether Nintendo is really going to bounce back, or if Kimishima’s certainty that it’s already hit rock bottom is going to be tested.
I was prepared to write all about virtual reality once again, despite the fact that my colleague Brendan Sinclair did a fine job of it last week, but then I woke up today to see Nintendo’s appearance on The Tonight Show with Jimmy Fallon and it got me thinking about the company’s future.
Before I dive into it, the one thing I’ll say on VR is that I’m encouraged by moves that bring about unity. With the Global Virtual Reality Association pushing for solidarity and open standards, and the discovery this week following the launch of Oculus Touch that Rift with Touch can support most SteamVR titles, developers should find it easier to target the combined (albeit still limited) installed bases of the PC VR platforms. Game makers in the VR ecosystem need all the help they can get.
Onto Nintendo, the company is quite possibly on the cusp of a major comeback after a miserable few years with its worst performing console in history, the Wii U. Watching as an excited audience witnessed Shigeru Miyamoto play the Mario theme along with The Roots, followed by Reggie Fils-Aime demoing both Super Mario Run on iPhone and The Legend of Zelda: Breath of the Wild on Switch reminded me that there’s still quite a lot of goodwill for Nintendo and its highly valuable IP. Now it’s up to the company to actually capitalize on that excitement. The rise of Pokemon Go, which helped jumpstart Pokemon Sun and Moon to become Nintendo’s fastest-selling titles ever in Europe and the Americas is just the start.
The NES Mini microconsole has been continually selling out at retail, feeding into nostalgia for NES classics while people eagerly await the launch of the first ever Mario game for smartphones, Super Mario Run. The game, which quickly saw 20 million people sign up to be notified about its release, will be a fascinating test for the mobile market given its $9.99 price point and for Nintendo, which hopes that both lapsed gamers and new players will come to appreciate the Italian plumber and seek out deeper and even more engaging experiences — on the Switch of course.
“Super Mario Run is going to introduce millions of more people to the fun of Mario, and it’ll become the entry point for them,” Miyamoto told The Verge. “And then the question becomes, once you’ve gone through that entry point, then what comes next? Is it a more traditional Mario experience? Is it something like the Mario Galaxy games? We’ll then have to look at what it is these new fans want from a Mario game, and we’ll continue to see Mario evolve in that way.”
Miyamoto and Nintendo may be a bit too optimistic to think that everyone who picks up Super Mario Run will want to run out and spend several hundred dollars more on a dedicated gaming platform plus software, but I’m convinced that a certain portion of the Super Mario Run audience will do just that. Another, possibly much larger, portion of that audience, however, could very well decide that Super Mario Run is fantastic and they’d simply like more experiences like that from Nintendo on smartphones. Either way, that’s great news because it means Nintendo has vastly expanded its audience.
“Frankly, I think the future is once again starting to look quite bright for Nintendo. The next critical step for the company is to absolutely get its marketing message right as it moves forward”
In a sense, the Switch will become the “niche” product for the hardcore Nintendo fan, while mobile will ultimately become where Nintendo reaches the majority of players. If the lion’s share of revenues for Nintendo begin to come from mobile, it’ll pose a very interesting question about the future of hardware like Switch, but as long as people crave in-depth games like Breath of the Wild, Nintendo will find a way to make them, regardless of platform.
Frankly, I think the future is once again starting to look quite bright for Nintendo. The next critical step for the company is to absolutely get its marketing message right as it moves forward. All the love and excitement Nintendo engendered with the Wii was squandered with the Wii U, but now the company has a legitimate chance to see a real domino effect take place, with each piece pushing the next forward – Pokemon to Super Mario Run to Switch and Zelda, etc, etc.
What needs to happen from now through next March when the Switch launches is an all-out assault on the media; mainstream news, talk shows, social networks, and more. What Nintendo achieved with Jimmy Fallon this week was pure marketing brilliance, and it’s that sort of approach that catapulted the original Wii to stratospheric heights in 2006. The Wii didn’t succeed because IGN or GameSpot thought it was cool; it took off because everyone from The Wall Street Journal to the New York Times to Bloomberg wrote glowing things about it. Nintendo’s appearance on Fallon could perhaps be the start of a new media blitz; it needs to be if Nintendo wants to reclaim its place atop the industry.
We’ll see how the next domino piece tilts in one week when Super Mario Run launches. “This is definitely a defining moment for Nintendo,” Yoshio Osaki, president of IDG Consulting Inc, told The Wall Street Journal. “If Mario can’t get the job done, I don’t know what other character could.”
EA CFO Blake Jorgensen says he ‘can’t yet predict’ if people will be interested in Switch alongside their regular portable device.
His statement came at the UBS Global Technology Conference, and reported by GameSpot. He says the firm is excited about the product and committed to bringing ‘one or two’ of its biggest games IP to the platform. Based on EA’s history with Nintendo, these will likely be games from its sports catalog.
“We’re excited for Nintendo, it’s an interesting device,” Jorgensen stated. “But I can’t yet predict how broad it’s going to be, and if folk will be interested in a portable device alongside their regular portable device that they already have.”
He continued: “In their announcement they announced that we’ll be supporting with a game or two on that new platform. We haven’t yet announced what game, but you should assume that it’s one of our bigger games we’ve been involved with.”
It is clearly positive for Nintendo that EA is showing support for its next machine after it abandoned publishing efforts on Wii U shortly after the machine launched. The company’s Wii U line-up included ports of Need for Speed and Mass Effect 3.
Nintendo proudly boasted a strong Switch third-party line-up, with the likes of Activision, Capcom, Warner Bros, Sega, Take-Two, Codemasters, Konami, From Software, Square Enix, Ubisoft, Bethesda, Bandai Namco, Platinum, Level-5, GameTrust and Atlas already signed on to support the device.
If Nintendo hopes to maintain this level of third-party support, it will need a significantly stronger start for Switch than it achieved with its Wii U console. It’s not clear what the launch line-up for Switch will be, with reports suggesting that the highly anticipated The Legend of Zelda: Breath of the Wild will miss the console’s release window. Other games shown during Nintendo’s Switch reveal, although not confirmed titles, included Mario Kart, a new Mario platformer, Skyrim and Splatoon.
More details on the Switch launch is scheduled for January, with the machine due to launch in March.
The second fiscal quarter is historically the quietest stretch for Electronic Arts, but the three months ended September 30 gave the publisher reason for optimism heading into the crucial holiday season. The company today released its second quarter results, beating its net income guidance and showing strong growth in its EA Sports Ultimate Team efforts.
“Q2 was an excellent quarter for Electronic Arts, led by breakthrough new EA Sports titles engaging players across console and mobile,” CEO Andrew Wilson said. “We are in an outstanding position for the quarter ahead, with two of the highest-rated games of this console generation in Battlefield 1 and Titanfall 2, global competitive gaming tournaments underway, and our first virtual reality experiences coming soon. Across all platforms, this holiday season will be a fantastic time to play.”
While Battlefield 1 and Titanfall 2 launched after the second quarter, EA used the report to tout the games’ early achievements. For Battlefield 1, the company said the total player base during the first week of release nearly doubled that of 2013’s Battlefield 4. As for Titanfall 2, which just launched last Friday, the company said dozens of press outlets had given review scores the equivalent of a 90 out of 100 or above.
As for the releases actually covered by EA’s second quarter results, they would include EA Sports mainstays Madden 17 and FIFA 17. The company said “20% more players were engaged” in FIFA 17 during its first week than in the first week of FIFA 16, but made no mention of specific performance for Madden. However, the EA Sports Ultimate Team game modes appear to be healthy, as EA said Ultimate Team’s net sales between the FIFA, Madden, and NHL series are up 15% year-over-year on a trailing 12-month basis.
For the second quarter, EA reported net revenues of $898 million, up 10% from last year, but short of the $915 million it had given as guidance. However, the company’s net loss for the quarter of $38 million was a significant improvement on the previous second quarter’s net loss of $140 million, and better than the projected $51 million net loss.
EA gave the early performance of FIFA 17 and the holiday slate of releases as reason enough to adjust its full-year expectations, with the company now expecting net revenue for the year ending March 31, 2017 to be $4.775 billion, up from $4.75 billion. Net income for the year is also projected to reach $848 million, compared to the previous guidance of $809 million.
Update: On the earnings call, EA CFO Blake Jorgensen addressed the early feedback on Battlefield 1 and Titanfall 2, noting that it’s too early to update any sales projections but that there’s “incredible excitement” around both and the company is “very optimistic” not just for this holiday season but for the longer term. Citing the fact that “quite a few players” were still playing Battlefield 4 years after it released, Jorgensen said he expects similar long-term interest in both titles. More generally, looking at EA’s business, Jorgensen is also encouraged by the opportunity that this generation’s consoles and the mid-cycle upgrades affords a big publisher like EA since the console installed base is already up 33% in the West compared to the previous generation, he said.
Interestingly, when asked about one of EA’s big upcoming titles, Mass Effect: Andromeda, Jorgensen effectively said that EA is not afraid to push the title back yet again (it was originally scheduled for 2016 but is now loosely slated for Q4, which ends next March). While that shouldn’t be read as a sign of trouble – Jorgensen said Mass Effect is “tracking extremely well” – it appears EA wants to be 100% sure that the game does not need any additional time before it commits more fully to a release date.
For game critics, loving Gears of War has been problematic since the very beginning. The rippling, testosterone drenched surface of Epic’s franchise served as a distraction from its abundant qualities. Looking back, it’s clear that the first game, released in 2006, provided the Xbox 360/PlayStation 3 era with the kind of moment that arguably still hasn’t arrived for the current generation. It was a new visual benchmark, its sense of weight and physical force was entirely distinct, and – a year before the launch of Call of Duty 4: Modern Warfare – it introduced the most credible new multiplayer experience since Halo. For those who based their professional integrity on distinguishing good games from bad, to notice and appreciate any of this was to miss the square-jaws and lumpen dialogue that comprised its story.
Looking back now, it’s clear that Gears of War was one of the defining series of the last console generation, influencing the creative direction of a large proportion of action games, driving the development community towards the Unreal Engine in droves, and with Horde mode in Gears of War 2, introducing a multiplayer concept that would be adopted by everything from Uncharted to Mass Effect. Even its marketing was influential: Gears of War’s popular “Mad World” trailer might well be the origin of action games using pained, acoustic covers of popular songs to score their artfully spliced carnage.
Despite this estimable legacy, however, the reviews of Gears of War 4 are shot through with an almost apologetic tone; a need to address the (arguably misplaced) perception of Gears as nothing more than a dude-bro power fantasy. Polygon, which awards the game an impressive 9 out of 10, spends a full third of its review on story and characterisation, opening with a declaration that, “Gears of War 4 is about home and family.”
“Gears of War as a series has dealt with accusations of hyper-masculine excess and an emphasis on gore and violence since it was first announced more than ten years ago. And it’s not that those observations are wrong, exactly – the characters have always been larger than life, the men in particular wide and heavy, and the violence of the series has always been extreme and enthusiastic. But beneath or even in parallel to that aspect, there’s always been consistent themes of friendship, of relationships of support and camaraderie that would seem corny in most other games but, somehow, work in Gears of War for a passionate fanbase.”
This protagonist of this reboot – which was developed by Microsoft’s The Coalition – is J. D. Fenix, the son of the original series’ central character, Marcus Fenix. Both father and son play pivotal roles in the game’s story, which Polygon describes as, “more focused, less sprawling story than the last few entries… A lot of time is spent exploring the strained relationship between Marcus and his son, with a lot of perspective on both sides of the equation.” The game’s various other key characters all have their own emotional journeys, largely relating to those themes of family and friendship. Gears of War 4’s story and character time works as well as it does for several reasons,” Polygon says. “The writing is matter-of-fact, avoiding over-stoicism and also overwrought fluff for the most part.”
If this is an area of weakness that The Coalition sought to address, then the abiding sense from the game’s reviews is that it has made a significant improvement. Whether that’s what the vast majority of Gears of War’s players care about is another matter, of course, but The Coalition hasn’t dropped the ball with the series’ core strengths, either. Polygon praises Gears of War 4 as “simply a joy to play,” and that sentiment echoes throughout the critical discourse.
The Daily Telegraph, which awards four stars, applauds the “muscular and endlessly gratifying thrill” of the gunplay, which carries the game through a slow start that serves, “as an elongated (re)introduction to that well-oiled Gears combat, flashing between cover-to-cover, switching between shotgun and rifle and familiarising yourself with the rattle of an emptying clip and the satisfaction of a well-timed, power-boosting active reload.” There are two new enemy races to fight in place of the original series’ Locust, and “weaponry…as exotic as the bestiary” with which to fight them. The need to switch between distinct weapons to fight equally distinct weapon types has always been central to Gears of War’s appeal. Here, again, The Coalition has honoured its heritage.
The same is true of Gears of War 4 as a spectacle. You won’t find a single review that doesn’t proclaim it to be one of the very best looking games on either Xbox One or PlayStation 4, and the same is true is the PC version. Indeed, PCGamesN calls it “a visual and technical tour de force,” maintaining “searing frame-rates on ‘ultra’ settings during some of the most mind-blowing – if cheesy – set-pieces I’ve seen in games, while also inviting me to appreciate the vivid redness of sycamore leaves lazily billowing on a cracked yellow wall in a medieval town square on some parallel-to-Earth planet.”
That last observation is crucial, because the beauty of Gears 4 goes beyond polygons, framerates and animations, and extends to art direction. “This certainly ain’t the grey-brown Gears of old,” PCGamesN says, before adding, “the diversity of what it shows is stunning… This is a far cry from the game that single-handedly started the stereotype of the ‘murky brown war shooter’, taking us instead on a historical tour of the vestiges of a world parallel to ours, yet still different enough to be mysterious; I almost felt guilty as I stomped around a scenic town as a giant mech, casually calling in airstrikes to smash my way through buildings. Almost.”
Words like “jawdropping,” “stunning,” “incredible” and “breathtaking” are scattered throughout this and many other reviews, to the point where the handful of scores that fall below 8 out of 10 demand close attention. For Jimquisition, the website started by ex-Destructoid personality Jim Sterling, “there’s nothing quite like Gears on the market. The sense of weight, the meaty impact of combat, the gruesomely satisfying way heads pop and bodies burst, any given Gears game has a baseline quality even at its worst thanks to its undeniably unique style.” However, Gears of War 4 relies on that “baseline quality” a little too much, The Coalition happy to make the improvements necessary to maintain relative standards but, “doing very little to rock the boat and making minor improvements and evolving where needed.”
“Such a tactic provides a game that’s decent just because it’s Gears of War, relying on the groundwork established across four older games to maintain the baseline. And that’s most certainly what Gears 4 is. A maintenance of the series as opposed to an injection of fresh blood.”
In a sense, then, the game’s most ardent supporters and most vocal critics are in full agreement: Gears of War 4 absolutely meets the standard set by its forebears, which is either something to praise or lament depending on the individual. One suspects, though, that in the absence of new Gears, the public will be more than happy to settle for more Gears.
Epic Games said it is investigating issue with Unreal Engine 4 and AMD CPUs.
The problem appears in Squad which is the first big, publicly available game using Epic Games’ Unreal Engine 4. The game was just stuck up on Steam so complaints about the AMD have been somewhat vocal.
The engine appears to create a poor performance on AMD CPUs due to an audio component of the engine. The issue has been reported before but no one took it that seriously. In fact some of theissues here seem to be a communication problem between Squad and Epic.
Squad developer Offworld Industries told Tweaktown that there was little it could do about this besides wait for Epic to fix it and release the fix in an engine patch.
However Epic’s senior marketing manager Dana Cowley said she didn’t even know about the problem until she was contacted by the media.
She said he was getting on the blower with the Squad team to investigate, and see how it could help.
There is a work around being suggested on the blogs which might help. If you navigate to C:UsersAppDataLocalSquadSavedConfigWindowsNoEditor, back up the Engine.ini file then open it with Notepad, find the [Audio] section, change MaxChannels from 128 to 96, 64, or 32, and save.
Activision Blizzard Inc has launched a film and TV studio to develop original content based on its popular videogame franchises such as “Call of Duty” and “Hearthstone” in its latest push to expand beyond console-based games.
Activision Blizzard Studios’ first production will be “Skylanders Academy,” an animated TV series based on the company’s toys-to-life videogame “Skylanders”, the company said in a statement.
A “near-term” project for the videogame maker’s film and TV studio will be to develop a movie franchise based on the hugely successful military first-person shooter “Call of Duty”.
The company said it would also consider adapting the franchise for TV.
“Warcraft”, Activision’s other well-known game franchise, is already being made into a film through a partnership between its Blizzard Entertainment unit and Legendary Pictures, and is slated for a 2016 release.
Activision said last month it would start an e-sports division to tap into the fast-growing competitive gaming market, where gamers play against each other for prize money.
Earlier this week, Activision agreed to buy “Candy Crush” creator King Digital Entertainment Plc for $5.9 billion to sharpen its focus on mobile games.
Activision’s highly anticipated “Call of Duty: Black Ops III” game went on sale earlier on Friday.
Hackers from Brazil have managed to discover a new exploit for the PS4 which enables them to bypass the DRM on any software and games.
A couple of weeks ago, a number of electronic stores in Brazil had been advertising the means to copy and run a series of ripped retail games on the console.
At the time little was known about the hack back then, but information gradually began to trickle out from customers and make its way around the web. Please see below for commentary from Lancope.
Gavin Reid, VP of threat intelligence, Lancope said that Sony was playing an arms race against groups that benefit from the abilities to copy and share games.
The hack originates from a Russian website and has been pushed into the public by Brasilian retailers. The hack isn’t necessarily a jailbreak for the PS4, nor is it really a homebrew technique.
What they did was use a retail PS4, with several games installed on it, with it’s entire game database and operating system (including NAN/BIOS). This was then dumped onto a hacked PS4 via Raspberry Pi.
The entire process costs about $100 to $150 to install 10 games and $15 per additional game.
“Open source groups like Homebrew with more altruistic motivations of extending the functionality of the console alongside groups selling modified consoles specifically to play copied games and of course the resell of the games themselves at fraction of the actuals costs. This has happened historically with all of the major consoles. It would be highly unlikely not to continue with the PS4,” he said.
The deal that helped Crytek recover from its recent financial difficulties was Amazon, according to a report from Kotaku.
The online retail giant signed a licensing deal for CryEngine, Crytek’s proprietary game engine. Sources within the company put the deal’s value at between $50 million and $70 million, and suggested that Amazon may be using it as the bedrock for a proprietary engine of its own.
However Amazon uses the technology, though, the importance of the deal for Crytek cannot be overstated. Last year, during the summer, it became apparent that all was not well at the German developer. Employees hadn’t been fully paid in months, leading to an alleged staff walkout in its UK office, where a sequel to Homefront was in development. Koch Media acquired the Homefront IP and its team shortly after.
When the company’s management eventually addressed the rumors, it had already secured the financing necessary to take the company forward. No details of the deal were offered, but it’s very likely that Crytek got the money it needed from Amazon.
We have contacted Crytek to confirm the details, but it certainly fits with the perception that Amazon could emerge as a major creator of game content. It has snapped up some elite talent to do just that, it acquired Twitch for a huge sum of money, and it has been very open about where it plans to fit into the overall market.
The group had published a list of emails and passwords for PSN, Windows Live Mail and 2K Games accounts online, and claimed to be prepared to release more, but Sony says that they’ve come from other sources than hacking.
“We have investigated the claims that our network was breached and have found no evidence that there was any intrusion into our network,” the company wrote in a declaration to Joystiq. “Unfortunately, Internet fraud including phishing and password matching are realities that consumers and online networks face on a regular basis. We take these reports very seriously and will continue to monitor our network closely.”
Blizzard is happy and why shouldn’t they be as World of Warcraft subscriptions are up. The reason for the increase can be traced to the release of the latest expansion pack which was recently released. The latest WOW expansion pack is called Warlords of Draeno and its release has driven subscriptions to 10 million.
Selling over 3.3 million copies of the Warlords of Draenor on the first day alone, growth has been seen in all major territories since release. The numbers do include those players that are using the 1 month free subscription that comes with the expansion pack. WoW subscriptions had climbed to 7.4 million last quarter after being down.
Of course the release of Warlords of Draenor has not been without its problems. Still Blizzard says that they are working around the clock to address them. Owners have been offered free play time as compensation.
Sources are telling us that we should expect new skateboarding titles from both Electronic Arts and Activision in 2015. Word is that Activision is preparing a new Tony Hawk title and Electronic Arts will be bring out a new Skate title as well.
While Activision and Electronic Arts have not made the announcements yet, our sources tell us that we should expect both titles to be announced in the near future for a likely late 2015 release. It is unknown who might be handling the development on both titles, but word is that both titles are already deep in development.
With the release of a new Tony Hawk and Skate titles, it will revive the Skateboarding segment that has been dormant for quite some time. EA has not produced a new title in the Skate franchise since Skate 3 and the late couple of Tony Hawk titles didn’t do so well, but the re-issue of original Pro Skater for the Xbox 360 and PlayStation 3 with DLC made up of levels from 2 & 3 have shown that interest does still exist for this segment.
Our hope is that it will be less like what we saw with the SSX revival that EA tried and then realized that it was not really want the people wanted and more like a new next-generation skateboarding title that puts the fun back into skating. We will have to wait and see.
In an interview that Xbox head Phil Spencer gave to IGN, he says that a new IP is in development at one of Microsoft’s development studios. It apparently isn’t a new racing or military space marine title.
Spencer says that the Xbox brand needs “new stories and new characters” which provide a “canvas to try new things.” He went on to add that “Sunset Overdrive is a great example of a game that isn’t like anything else in our portfolio, and he thinks that is great. I want to continue to invest in things which push the boundaries.”
Spencer believes that it has to be a commitment from the first-party publisher to try things that are new and unique. While he would not offer a clue as to which studio might be working on this new IP or what the new IP might be, he does seem to imply that there is at least more than one internal/external studio that is working on unannounced games for Microsoft studios.
In the interview he again says that he wants RARE to be more than the Kinect Sports developer and he is in fact heading out to see them soon to look at a new pitch from the studio.
Activision Blizzard reported its financial results for the quarter ended June 30 today, revealing an unprecedented reliance on digital revenues.
The publisher reported revenues of $970 million in sales on a GAAP basis, 49 percent of which came from digital channels. On a non-GAAP basis (excluding the impact of changes in deferred revenues), the digital percentage was actually 73 percent of the company’s $658 million in sales. Activision attributed the digital strength to Blizzard’s lineup of titles (World of Warcraft, Hearthstone, and Diablo III), combined with digital sales for Call of Duty.
However, not all of those digital sales drivers posted strong numbers for the quarter. World of Warcraft in particular lost about 800,000 subscribers over the period, and as of the end of June was down to a paying player base of 6.8 million gamers. However, Activision Blizzard characterized this decline as a “seasonal” dip in advance of the next expansion, Warlords of Draenor, which is set to launch later this year. The publisher likened the downturn to the subscriber losses that happened in 2012 ahead of the Mists of Panderia launch.
On a GAAP basis, Activision Blizzard revenues were down nearly 8 percent, with net income down 37 percent to $204 million. However, the publisher still beat its previous guidance. On a non-GAAP basis, revenues were up about 10 percent to $658 million, while non-GAAP net income was reported at $45 million, down 50 percent year-over-year.
The quarter’s performance gave Activision Blizzard enough confidence to update its previous guidance for the full year. For calendar year 2014, the publisher had previously forecast total GAAP revenues of $4.22 billion, but moved that up to $4.24 billion today. The company also projected earnings per share of $0.91, up from $0.89.
Those who have been eagerly waiting for October to experience the latest adventures of Batman from developer Rocksteady, are going to be very disappointed to learn that the game will not make its originally announced October release.
Instead developer Rocksteady has confirmed that the game will be released in 2015. An exact release date has not yet been decided upon. We are hearing however, that as spring release for Arkham Knight is very likely.
While the exact reasons behind the delay were not announced, but the game is much bigger than previous Batman titles that Rocksteady has done and it is the first all next-generation title that the developer has done which also might be contributing to the delay. The game is still scheduled for release only on the Xbox One, PlayStation 4, and PC so the next generation status of the game has not changed.