While Sony wowed gamers at its E3 press conference this year with a barrage of impressive content, some would argue that it was Microsoft that made the biggest splash by choosing its press conference to announce not one, but two distinct console hardware upgrades that would be hitting the market in consecutive years (Xbox One S this year, Scorpio in 2017). Years from now, this may be the grand moment that we all point to as forever changing the evolution of the console business. Sony, too, is preparing a slight upgrade to PS4 with the still-to-be-unveiled Neo, and while it won’t be as powerful as Scorpio, it’s not a stretch to assume that Sony is already working on the next, more powerful PlayStation iteration as well. We can all kiss the five or six-year console cycle goodbye now, but the publishers we spoke to at E3 all believe that this is ultimately great for the console industry and the players.
The most important aspect of all of this is the way in which Sony and Microsoft intend to handle their respective audiences. Both companies have already said that players of the older hardware will not be left behind. The ecosystem will carry on, and that to EA global publishing chief Laura Miele is a very good thing, indeed.
“I perceive it as upgrades to the hardware that will actually extend the cycle,” she told me. “I actually see it more as an incredibly positive evolution of the business strategy for players and for our industry and definitely for EA. The idea that we would potentially not have an end of cycle and a beginning of cycle I think is a positive place for our industry to be and for all of the commercial partners as well as players.
“I have an 11-year-old son who plays a lot of games. We changed consoles and there are games and game communities that he has to leave behind and go to a different one. So he plays on multiple platforms depending on what friends he’s playing with and which game he’s going to play. So the idea that you have a more streamlined thoroughfare transition I think is a big win… things like backwards compatibility and the evolution,” she continued.
“So it’s not my perception that the hardware manufacturers are going to be forcing upgrades. I really see that they’re trying to hold on and bring players along. If players want to upgrade, they can. There will be benefit to that. But it’s not going to be punitive if they hold on to the older hardware… So we’re thrilled with these announcements. We’re thrilled with the evolution. We’re thrilled with what Sony’s doing, what Microsoft’s doing and we think it’s phenomenal. I think that is good for players. It’ll be great for us as a publisher about how they’re treating it.”
Ubisoft’s head of EMEA Alain Corre is a fan of the faster upgrade approach as well. “The beautiful thing is it will not split the communities. And I think it’s important that when you’ve been playing a game for a lot of years and invested a lot of time that you can carry on without having to start over completely again. I think with the evolution of technology it’s better than what we had to do before, doing a game for next-gen and a different game from scratch for the former hardware. Now we can take the best of the next console but still have super good quality for the current console, without breaking the community up. We are quite big fans of this approach,” he said.
Corre also noted that Ubisoft loves to jump on board new technologies early (as it’s done for Wii, Kinect, VR and now Nintendo NX with Just Dance), and its studios enjoy being able to work with the newest tech out there. Not only that, but the new consoles often afford publishers the opportunity to build out new IP like Steep, he said.
“Each time there’s a new machine with more memory then our creators are able to bring something new and fresh and innovate, and that’s exciting for our fans who always want to be surprised. So the fact that Microsoft announced that they want to move forward to push the boundaries of technology again is fantastic news. Our creators want to go to the limit of technology to make the best games they can… so the games will be better in the years to come which is fantastic for this industry. And at Ubisoft, it’s also in our DNA to be [supportive] early on with new technology. We like taking some risks in that respect… We believe in new technology and breaking the frontiers and potentially attracting new fans and gamers into our ecosystem and into our brands,” Corre continued.
Take-Two boss Strauss Zelnick pointed out the continuity in the communities as well. “The ecosystems aren’t shifting as much. We essentially have a common development architecture now that’s essentially a PC architecture,” he said. And if the console market truly is entering an almost smartphone like upgrade curve, “It would be very good for us obviously. To have a landscape…where you put a game out and you don’t worry about it,” he commented, “the same way that when you make a television show you don’t ask yourself ‘what monitor is this going to play on?’ It could play on a 1964 color television or it could play on a brand-new 4K television, but you’re still going to make a good television show.
“So we will for sure get there as an industry. We will get to the point where the hardware becomes a backdrop. And sure, constantly more powerful hardware gives us an opportunity but it would be great to get to a place where we don’t have a sine curve anymore, and I do see the sine curve flattening but I’m not sure I agree it’s going away yet… That doesn’t change any of our activities; we still have to make the very best products in the market and we have to push technology to its absolute limit to do so.”
E3 2016 has officially come to a close, and despite the fact that Activision and EA were absent from the show floor, my experience of the show was that it was actually quite vibrant and filled with plenty of intricate booth displays and compelling new games to play. The same cannot be said for the ESA’s first ever public satellite event, E3 Live, which took place next door at the LA Live complex. The ESA managed to give away 20,000 tickets in the first 24 hours after announcing the show in late May. But as the saying goes, you get what you pay for…
The fact that it was a free event, however, does not excuse just how poor this show really was. Fans were promised by ESA head Mike Gallagher in the show’s initial announcement “the chance to test-drive exciting new games, interact with some of their favorite developers, and be among the first in the world to enjoy groundbreaking game experiences.”
I spent maybe an hour there, and when I first arrived, I genuinely questioned whether I was in the right place. But to my disbelief, the small area (maybe the size of two tennis courts) was just filled with a few tents, barely any games, and a bunch of merchandise (t-shirts and the like) being marketed to attendees. The fans I spoke with felt like they had been duped. At least they didn’t pay for their tickets…
“When we found out it was the first public event, we thought, ‘Cool we can finally go to something E3 related’ because we don’t work for any of the companies and we’re not exhibitors, and I was excited for that but then we got here and we were like ‘Uh oh, is this it?’ So we got worried and we’re a little bit upset,” he continued. Malcolm added that he thought it was going to be in one of the buildings right in the middle of the LA Live complex, rather than a siphoned off section outside with tents.
As I walked around, it was the same story from attendees. Jose, who came with his son, felt similarly to Malcolm. “It’s not that big. I expected a lot of demos, but they only had the Lego Dimensions demo. I expected something bigger where we could play some of the big, upcoming titles. All it is is some demo area with Lego and some VR stuff,” he told me.
When I asked him if he got what he thought would be an E3 experience, he continued, “Not even close, this is really disappointing. It’s really small and it’s just here. I expected more, at least to play some more. And the VR, I’m not even interested in VR. Me and my son have an Xbox One and we wanted to play Battlefield 1 or Titanfall 2 and we didn’t get that opportunity. I was like c’mon man, I didn’t come here to buy stuff. I came here to enjoy games.”
By cobbling together such a poor experience for gamers, while 50,000 people enjoy the real E3 next door, organizers risk turning off the very audience that they should be welcoming into the show with open arms. As the major publishers told me this week, E3 is in a transitional period and needs to put players first. That’s why EA ultimately hosted its own event, EA Play. “We’re hoping the industry will shift towards players. This is where everything begins and ends for all of us,” said EA global publishing chief Laura Miele.
It seems like a no-brainer to start inviting the public, and that’s what we all thought was happening with E3 Live, but in reality they were invited to an atmosphere and an “experience” – one that barely contained games. The good news, as the quickly sold out E3 Live tickets indicated, is that there is a big demand for a public event. And it shouldn’t be very complicated to pull off. If the ESA sells tickets, rather than giving them away, they can generate a rather healthy revenue stream. Give fans an opportunity to check out the games for a couple days and let the real industry conduct its business on a separate 2-3 days. That way, the ESA will be serving both constituents and E3 will get a healthy boost. And beyond that, real professionals won’t have to worry anymore about getting shoved or trampled, which nearly happened to me when a legion of frenzied gamers literally all started running into West Hall as the show floor opened at 10AM. Many of these people are clearly not qualified and yet E3 allows them to register. It’s time to make E3 more public and more professional. It’s your move ESA.
We asked the ESA to provide comment on the reception to E3 Live but have not received a response. We’ll update this story if we get a statement.
At its E3 2016 press conference today, EA said that DICE and Motive were working on a new version of Star Wars: Battlefront for release in 2017. Visceral Games are creating an action-adventure game with an “original narrative set in the Star Wars universe with all-new characters.”
Respawn Entertainment is developing “a different style of gameplay” which takes place in a different timeline we have yet to explore with our EA Star Wars titles.” In other words, almost every EA studio is flat out making something Star Warish.
And while the company didn’t make any mention of it at the news conference, the preview video it showed fans offered a very brief glimpse of a player wearing a PlayStation VR headset, while an X-Wing’s cockpit was shown on screen. That’s likely to stoke anticipation about a reboot of the classic 1997 title “X-Wing vs. TIE Fighter.”
EA and Lucasfilm signed a multiyear licensing deal in 2013. Due, in large part, to the strength of “Star Wars Battlefront,” EA handily beat its earnings estimate in its most recent quarter. Star Trek Bridge, the simulation of the Bridge inside of an Enterprise, a big VR commitment from EA looks like a fun game too.
MKM analyst Ian Ing claims that AMD’s recent gaming refresh was better done than Nvidia’s.
Writing in a research report, Ing said that both GPU suppliers continue to benefit from strong core gaming plus emerging applications for new GPU processing.
However, AMD’s transition to the RX series from the R9 this month is proving smoother than Nvidia’s switch to Pascal architecture from Maxwell.
Nvidia is doing well from new GPU applications such as virtual reality and autonomous driving.
He said that pricing was holding despite a steady availability of SKUs from board manufacturers. Ing wrote that he expected a steeper ramp of RX availability compared to last year’s R9 launch, as the new architecture is lower-risk, given that HBM memory was implemented last year.
Ing upped his price target on Advanced Micro Devices stock to 5 from 4, and on Nvidia stock to 52 from 43. On the stock market today, AMD stock rose 0.9 per cent to 4.51. Nvidia climbed 0.2 per cent to 46.33.
Nvidia unveiled its new GeForce GTX 1080, using the Pascal architecture, on 27 May and while Maxwell inventory was running out, Nvidia customers were experiencing Pascal shortages.
“We would grow concerned if the present availability pattern persists in the coming weeks, which would imply supply issues/shortages,” Ing said.
What is the point of E3? I ask not in a snarky tone, but one of genuine curiosity, tinged with concern. I’m simply not sure what exactly the show’s organizers, the ESA, think E3 is for any more. Over the years, what was once by far the largest date in the industry’s annual calendar has stuck out in various new directions as it sought to remain relevant, but it’s always ended up falling back to the path of least resistance – the familiar halls of the Los Angeles Convention Center, the habitual routine of allowing only those who can prove some industry affiliation to attend. For all that the show’s organizers regularly tout minor tweaks to the formula as earth-shattering innovation, E3 today is pretty much exactly the same beast as it was when I first attended 15 years ago – and by that point, the show’s format was already well-established.
There’s one major difference, though; E3 today is smaller. It now struggles to fill the convention center’s halls, and a while back ditched the Kentia Hall – which for years promised the discovery of unknown gems to anyone willing to sift through its morass of terrible ideas. Kentia refugees now fill gaps in the cavernous South Hall’s floor plan, elevated to sit alongside a roster of the industry’s greats that gets more meagre with each passing year. This year, attendees at E3 will find it hard not to notice a number of key absences. The loss of Konami’s once huge booth was inevitable given the company’s U-turn away from console publishing, but the decisions of EA and Activision to pull out of the show this year will be felt far more keenly.
Hence the question; what’s the point? Who, or what, is E3 actually meant to be for? It’s not for consumers, of course – they’re not allowed in, in theory, though the ESA has come up with various pointlessly convoluted ways of letting a handful of them in anyway. It’s for business, yet big players in the industry seem deeply dissatisfied with it. It’s not just EA and Activision, either; even the companies who are actually exhibiting on the show floor seem to have taken to viewing it as an addendum to the actually important part of the week, namely their live-broadcast press conferences. Once the realm only of platform holders, now every major publisher has their own – and if EA and Activision’s decision to go their own way entirely, leaving the E3 show floor, has no major negative consequences for them this year, you can be damned sure others will question the show’s cost-value next year.
The problem is that the world has changed and E3 has not. Once, it was the only truly global event on the calendar; back then, London had ECTS and Tokyo had TGS, but there was no question of them truly challenging E3′s dominance. The world was a very different place back then, though. It was a time before streaming high resolution video, a time before the Internet both made the world a much smaller place, and made the hyper-local all the more relevant. Today, E3 sits in a landscape of events most of which, bluntly, justify their existence far better than the ESA’s effort does. Huge local events in major markets around the world serve their audiences better than a remote event in LA; GamesCom in Germany and TGS in Tokyo remain the biggest of those, but there are also major events in other European, Asian and Latin American countries that balance serving the business community in their regions with putting on a huge show for local consumers.
In the United States, meanwhile, E3 finds itself assailed on two sides. The PAX events have become the region’s go-to consumer shows, and a flotilla of smaller shows cater well to specific business and social niches. GDC, meanwhile, has become the de facto place to do business and for the industry to engage in conversation and debate with itself. The margin in between those two for a “showcase show that’s not actually for consumers but sort-of lets some in and is a place for the industry to do business but also please spend a fortune on a gigantic impressive stand” is an increasingly narrow piece of ground to stand on, and E3 is quite distinctly losing its balance.
A big part of the reason for that is simply that E3 has an identity crisis. It wants to be a global show in the age of the local, in an age where “global” is accomplished by pointing a camera at a stage, not by flying people from around the world to sit in the audience. It wants to be a spectacle, and a place to do business, and ends up being dissatisfying at both; it wants to excite and intrigue consumers, but it doesn’t want to let them in. The half-measures attempted over the years to square these circles have done nothing to convince anyone that E3 knows how to stay relevant; slackening ties to allow more consumers into the show simply annoys people who are there for work, and annoys the huge audience of consumers who remain excluded. The proposed consumer showcase satellite event, too, will simply annoy companies who have to divide their attention, and annoy consumers who still feel like they’re not being let in to the “real thing”. Meanwhile the show itself feels more and more like the hole in the middle of a doughnut – all these huge conferences, showcases and events are arranged around E3′s dates, but people spend less and less time at the show proper, and with EA and Activision go two of the major reasons to do so. (It’s also hard not to note, though I can’t quantify it in figures, that more industry people each year seem to stay home and watch the conferences online rather than travelling to LA.)
The answer to E3′s problems has to be an update to its objectives; it has to be for the ESA to sit down with its membership (including those who have already effectively abandoned the show) and figure out what the point of the show is, and what it’s meant to accomplish. The E3 brand has enormous cachet and appeal among consumers; it’s hard to believe that there’s no demand for a massive showcase event at the LA Convention Center that actually threw its doors open to consumers, it’s simply a question of whether ESA members think that’s something they’d like to participate in. From a business perspective, I think they’d be mad not to; the week of E3, loaded with conferences and announcements, drives the industry’s most devoted fans wild, and getting a few hundred thousand of them to pass through a show floor on that week would be one of the most powerful drivers of early sentiment and word of mouth imaginable.
As for business; it’s not like there isn’t a tried, tested and long-standing model for combining business and consumer shows that doesn’t involve a half-baked compromise. Tons of shows around the world, in games and in other fields, open for a couple of trade days before throwing the doors open to consumers over the weekend. Other approaches may also be valid, but the point is that there’s a simple and much more satisfying answer than the daft, weak-kneed reforms the ESA has attempted (“let’s let exhibitors give show passes to a certain number of super-fan consumers” – really? Really?).
E3 week remains a big deal; E3 itself may be faltering and a bit unloved, but the week around it is pretty much the only truly global showcase the industry has created for itself. That week deserves to be served by a better core event, rather than inexorably moving towards being a ton of media events orbiting a show nobody can really be bothered with. The organizers at the ESA need to be brave, bold and aggressive with what they do with E3 in future – because just falling back on the comfortable old format is starting to show diminishing returns at an alarming rate.
While some publishers establish their own eSports divisions and appoint chief competition officers, Take-Two is approaching the competitive gaming trend with a bit more caution. Speaking with GamesIndustry.biz in advance of the company’s financial earnings report today, CEO and chairman Strauss Zelnick said the field was promising, but still unproven.
“eSports we find very interesting,” Zelnick said. “It is, however, still more a promotional tool than anything else. And most people see eSports as an opportunity to increase consumer engagement in their titles, and depending on the title, to increase consumer spending within the title.”
To date, Take-Two’s biggest eSports endeavor has been an NBA 2K tournament with 92,000 teams competing for a $250,000 prize. The final 16 teams are set to compete in a single-elimination tournament this weekend, with the finals taking place during the NBA Finals next month.
“It’s just the beginning for us,” Zelnick said of the tournament. “It’s very gratifying so far, but we have yet to see it as a stand-alone profitable business. We see it more as an adjunct to consumer engagement in our titles.”
Zelnick also addressed the company’s digital revenues, which for the first time made up more than half of its revenues for the year. While the industry has shifted heavily toward digital in recent years, Zelnick doesn’t see this as some sort of tipping point or a harbinger that physical goods are in for declines from here on out.
“This year was a little different because we had a very significant portion of this year’s revenue through digital distribution,” Zelnick said. “And that’s a reflection of the power of titles like Grand Theft Auto Online as well as PC titles, 90 percent of which are digitally delivered. With frontline console releases, your numbers are more like 20 percent from digital distribution. So physical distribution remains the lion’s share of our revenue.”
While Zelnick acknowledged the growth of digital distribution is a good thing for Take-Two, he specified that it wasn’t a strategy for the company because it’s ultimately out of his hands.
“We want to be where the consumer is, and we’re not really the ones who vote,” Zelnick said.
Orcs Must Die! Studio Robot Entertainment is a rare breed nowadays – in an age where you’re either indie or AAA, the Plano, Texas-based company (one of several Texas developers that rose from the ashes of Age of Empires studio Ensemble) has managed to succeed as a mid-sized outfit. When Robot was formed in 2009, the company operated on a small scale, but things really changed when it landed a major investment from Chinese media giant Tencent in 2014. That enabled Robot to scale up and to benefit from Tencent’s knowledge at the same time.
“We made the first Orcs Must Die! as a semi-indie studio. We were about 40-45 people. We’re about twice that size now. And we were able to do Orcs Must Die! and Orcs Must Die! 2 with that. We kind of kept following the franchise and following what the fans were asking for in that game and we knew the next version was going to be bigger. We had to make a strategic decision – were we going to stay small and try to do another small version of that game or did we want to be ambitious and try to do something a little bit bigger? And that was going to necessitate a different type of arrangement for us to find financing. Because, you know, just selling a $15 or $20 game on Steam over and over is tough to support a studio to make a bigger game,” Robot CEO Patrick Hudson told GamesIndustry.biz.
“We also did some licensing deals for this game. As an online game, we didn’t necessarily have an ambition of setting up a European publishing office or an Asian publishing office. So we went to Europe and we partnered up with GameForge and licensed the rights for them to publish the game for us. And that comes with some advances and license fees, which help us make the game. We did the same thing with Tencent in China and that led to an investment. So we are in that mid-space. I think you’re right that there are fewer people in that space right now. It would probably be harder for us to stay in that space if we didn’t have really strong partnerships with folks like GameForge and Tencent.”
Investments and partnerships can clearly make a difference to any game company, but it’s also easy to mismanage a studio’s growth. Before you know it, one department doesn’t know what the other is doing, and things spiral out of control.
“It’s all in how you manage it. You’re either afraid of that growth or you embrace it, put a process and structure in place to allow for that. There’s no question we have to run our studio differently at 90 people than we did at 45. There’s more structure in place, there are more layers of leadership to help the project along. We’ve done a decent job of managing the growth… We went through the same kind of growth curve at Ensemble and we actually spent a lot of time talking about what went well, what didn’t go well, ‘What did we learn from that experience that we could have managed the growth better, how do we apply that to Robot?’ So we try to be a little bit smarter about that. Talking to other friendly studios [helps also] – ‘Hey, what did you guys do through this kind of growth? What pains did you experience? What did you learn?’ So we’ll grow as much as it takes to support Orcs Must Die! or as little to support it,” Hudson continued.
While everyone was devastated when Microsoft seemingly shut down a successful Ensemble Studios for no good reason, Hudson takes it as a learning experience.
In Ensemble’s case, Hudson discovered that scale ultimately held back some of its better talent. “Age of Empires attracted a lot of really good game talent to the studio, either people who were starting fresh in the games industry and learned how to make great games inside of Ensemble or we recruited really talented people to Dallas to work on the Empires franchise and, ultimately, Halo Wars. So we had just a tremendous amount of pent up talent in what was not a huge studio. At its peak it was 120 people. So it was very densely populated with talent. When you’re a studio that size, you have a lead structure within each department, but not everybody gets a chance to take those leadership positions and do their own games. Once Ensemble went away, you saw all these talented people go off in different places and show what they were capable of,” he remarked.
Working at Ensemble instilled a certain level of dedication to quality in all the developers who worked there too. “We held ourselves to a really high standard of making games that everyone took with them to their next places. I would say, in addition to that… all of us worked for another six years for Microsoft post-acquisition, so we got to learn the industry as both indie developers and inside a publisher. We got to learn the entire space, how the whole ecosystem is close to the publishing side. So that was a very valuable experience that maybe a lot of other devs don’t get,” Hudson said.
There’s no animosity or regret about Ensemble either, as far as Hudson is concerned: “Six years is a long time to be with a company post-acquisition. It was actually, for the most part, six good years. Microsoft treated us well. I think we worked well with the people we worked with at Microsoft. You do see some [studios] that get acquired and they’re gone within a year or two. We didn’t have that experience. I kind of view six years as a nice success.”
Perhaps the greatest lesson that Hudson and Robot have learned, even before the rise of Kickstarter and Steam Early Access, is that listening and responding to a vibrant community is critical. Discoverability has become a nuisance to deal with, and you need the fans behind you in order to succeed. If you have expectations that a platform holder will feature you, your marketing strategy needs an overhaul.
“As some of those previous PC developers that came into mobile are now migrating back to PC, discoverability on PC has become not quite as bad as mobile, but it’s not easy. There’s a lot of content on Steam now. There’s no easy space. Games is more competitive and a harder business than it’s probably ever been. There’s just a lot of great developers out there making a lot of great content and there’s just no barriers to putting your content out there to players, and players move quickly from game to game. They’re going to seek the best content,” Hudson noted.
He continued, “When I talk to the Valve or Apple or Google folks, they know the problem. They see it. But it’s an almost impossible problem to solve… Everyone wants to be featured, right? It’s funny, when you talk to a new mobile developer and be like, ‘Hey, we’re gonna make this great game. We’re gonna be featured.’ Probably not. You’re probably not going to be featured. Unless you’re doing something really cool and innovative and very different that really shows off the platform.
“They all have different programs to try and help you get noticed but you can’t make that the core of your strategy. It’s really up to you to make a great game. If you don’t have a marketing budget to cultivate a community, start with a small community, really cultivate it and listen to them and speak to them and let them organically grow. It’s not the platform holder’s job to make it successful.”
Beyond building a robust community, selecting the right business model for your game is crucial. While free-to-play is almost the default option in today’s market, Hudson said that premium games are coming back too.
“We really do think of it as a case-by-case. There are interesting trends in the market where you’re seeing paid games come back in certain areas – even in China where we’re seeing an uptick in paid games, customers in China buying paid games. [That's] never happened before. So it’s really going to depend on the game, the needs of the game,” he commented.
For Orcs Must Die! Unchained, which just entered an open beta about a month ago, free-to-play just made sense for Robot, as it’s a big multiplayer MOBA-style tower defense game; Robot wants as many people online for matchmaking as possible. Hudson and Robot have tried free-to-play before with Hero Academy in 2012, but he fully admitted, “We made a ton of mistakes, we didn’t really know what we were doing. It was a very successful game critically. It probably should’ve been a little more successful for us commercially, but we learned those lessons and hopefully we’re applying some of those.
“[Unchained] will be our first big free-to-play PC title. And we get a lot out of our partners too. GameForge has been operating free-to-play titles forever. Tencent has been operating free-to-play titles forever and we really lean on their expertise and we ask them to be involved with us as we design the game. The nice thing about both of those partners is… monetization follows. They start with making a great game, get the players around, keep the players around, [and then] hopefully they’ll pay you down the road. But don’t solve for money up front. So we’ll see. This will be our first foray into it. We’ll make a few more mistakes I’m sure but hopefully we learn quickly.”
Right now Robot remains 100 percent committed to Orcs Must Die! and the studio is bringing the game to PS4 later this year, but that doesn’t mean it expects to be pigeonholed with that one franchise. Hudson said that Robot continues to brainstorm new IP ideas, but nothing has made it too far along in development to warrant a release. “We’ll definitely do a new IP again. We started a couple of prototypes in the past few years that haven’t panned out. It happens all the time, right?” he said, adding that the company also remains interested in mobile but is “very cautious.”
“I think what’s interesting about mobile over the last couple of years is how non-dynamic the market is as far as the top games. The games that have lived in the top charts have been there now for 2 or 3 years. They get there and they stay there and they’re really good at staying there and it’s hard to break in and become the new thing. There are some good case studies for that. Certainly not nearly as many as there are on PC,” he said.
Hudson on VR
Likewise, virtual reality, although enticing, is just too risky for a studio like Robot, Hudson noted.
“It comes back to a company our size and where we sit. For us to overinvest in a market where it’s hard to know what the growth curve is going to be would be pretty risky at our size. We can’t afford to be wrong on something this new and this different… We love the options it provides for new and compelling experiences in games. We’ve brainstormed plenty of ideas for Orcs Must Die! in VR and we’ve got some pretty good ones, but it’ll be a while before we seriously invest in it,” he said.
Hudson joked that Robot is “living vicariously” though a couple of ex-Ensemble studios in Dallas that are working on VR now.
A conservative and cautious approach is probably one of the reasons Robot has managed to survive in an increasingly challenging environment. Even for eSports – an area of the industry that Orcs Must Die! clearly could excel in – Hudson isn’t jumping in headfirst.
That being said, Hudson is definitely optimistic about eSports as a sector. “I think it’s going to become an increasingly large aspect of the industry. And there will be the games that work and the games that don’t work for it. There will be a lot of companies chasing it and probably crash on the rocks trying to get there, but it’s going to continue to grow. I think you’ll see it across platforms too. I think you’ll continue to see eSports be popular in mobile. It’ll continue to grow there. You think of it as a PC thing now but it’s not. I think it’s going to encompass all aspects of games,” he said.
EA is telling the world that it wants into the third-person action market with an open world game, but it does not appear to be happening any time soon.
EA Studios VP Patrick Söderlund told us in 2015 that EA wanted to expand its portfolio into gigantic action games like Assassin’s Creed or Batman or GTA and CFO Blake Jorgensen said something similar.
“We feel like there’s a huge opportunity for us to continue to invest in new areas of the business like the action genre where we haven’t competed historically. There’s a very ripe opportunity for us to invest in and we’ve been able to bring great talent in to build out that part of the business.”
But according to Game Radar it is not going to happen any time soon. Blake is quoted as saying that the outfit was building an action genre product that’s probably will appear in three or four years.
We can expect something new from EA next year which has not been announced, Blake said. But this will not be anything like the big games which have captured popular attention.
When was the last time you played as a black character in a game who wasn’t either a) the sidekick to a strapping white dude or b) a stereotypical gang member? We Are Chicago, from Indie studio Culture Shock, offers something different: a realistic representation of the life of a person of color in Chicago’s South Side neighborhoods.
“It was interesting to think about how you make a game about something that’s actually happened, a true story, and still give the player agency,” explains studio founder Michael Block.
“So we were talking about those ideas. We’re from Chicago and at the time we had started doing some volunteer stuff and talking to some people on the South Side, a very racially-segregated section of the city, very poor and has a lot of issues with gangs and violence. We realized it’s a really interesting story and nobody is talking about this stuff.”
This was the moment that led to the game I played a few weeks ago at GDC, which Block calls a documentary game, a game which gives players an insight into the world of high school student Aaron. During the very first scene, Aaron’s family sits down to dinner, only to hear the sound of gunshots. It’s shocking not because I’ve never heard a gunshot in a game before, but because the family carries on with dinner, discussing their situation but accepting the violence as part of the background to their lives.
“We brought on a writer from one of the neighborhoods to write the actual dialogue”
Scenes like this aren’t just based on Culture Shock’s preconceived ideas about the South Side, but on the sort of research that would make any journalist proud.
The growth of narrative games
“Part of it comes to down to places like Telltale, I think what they were able to do which has been super helpful, and they’ve been paving the way for everyone else to do all this stuff, is because they had this tie-in to an IP that people really liked and then they were able to tell a really compelling story with that IP. I think that got people into that genre.
“That has benefited us in unimaginable ways because it allows people to come into it with an open mind and know what they’re getting.”
“At the beginning we did interviews. We actually got really lucky: there was a non-profit group that we were volunteering with that basically blanketed the city with volunteers and they had a survey that could have been written for our game. Things like, what are you seeing in your neighbourhood that could be problematic? What are the things that you’re seeing are really good? Are you seeing any solutions that are working well? What do you wish was there?”
“From that we were doing interviews with people at bus stops on the South Side and we just asked a bunch of people all these questions and then gave that all back to the non-profit. Then we met a whole bunch of people who we were volunteering and people that they knew and put us in touch with and we did more in-depth interviews.”
As well as researching their subject matter, We Are Chicago took their commitment to representing the stories into the studio via recruitment.
“We brought on a writer from one of the neighborhoods to write the actual dialogue. So we had the outline in place, we had the ideas that we wanted to talk about and we went to him and said ‘let’s figure out how to make this into a narrative arc’. Then we brought on environment artists as well from the neighborhoods that we were looking at to work on the content of the game and they’ve also looked over the script and made sure everything makes sense to them as well.”
Block and his team also plan to continue working with the non-profits of Chicago, taking a build of the game to a couple of schools in Chicago to do play-testing with young kids and to make sure that the game is true to their experiences. He also reveals that he plans to do a revenue share with some of the non-profits, as a way of giving back.
That’s Block’s motivation here, and it’s a noble one. We Are Chicago is a difficult game to make and difficult game to sell, but its importance to its creators goes beyond simple profit and loss.
“I’m working on this project because for all of my career – I’ve worked on Organ Trail and I’ve worked at mid-sized studios before and released other games – I didn’t really feel like they were having the impact I wanted to have. I wanted to do something that was positive for our society and our community and so this feels very important to me personally because it feels like I’m able to achieve that,” says Block.
“We’ve had some really great responses from people. Seeing some people express more racist sentiments and ideas and then after playing the game actually not express those things is really validating and really satisfying, to think that we might actually be able to have that impact. It’s a very strong connection for me because I’m hoping that we can prove that this is possible with games and that we’re doing it.”
We Are Chicago will be released this year on PC, Mac and Linux.
In an age of viral media and ubiquitous social networks, it’s rare to encounter a major AAA release surrounded by so much uncertainty. Quantum Break has likely been in full development since 2012, when Remedy Entertainment launched Alan Wake: American Nightmare, and it has been a shining beacon in the Xbox One’s line-up since Microsoft unveiled the console a year later. Was Microsoft bankrolling an exclusive answer to Uncharted’s slick, story-driven adventure? Was its furtive marriage of live-action TV series and third-person action the result of unrevealed brilliance, or the unfortunate by-product of a now defunct product strategy? Or was it all just a logical evolution of the slick production and metatextual noodling found in all of Remedy’s previous games?
Reading through the myriad reviews that are now setting the record straight, the answer may be that Quantum Break is all of these things. Unfortunately for Remedy and Microsoft, there’s no consensus on just how capably it delivers on any one.
With a score of 8.5 out of 10, Polygon is among Quantum Break’s more ardent admirers, praising Remedy for mostly fulfilling what seemed to be the loftiest of the game’s many promises: a marriage of action game and TV series that both works and satisfies.
“The way Quantum Break handles story is, easily, the most interesting, successful thing about it… Remedy accomplishes something no one has really tried, much less successfully executed on: The studio has integrated the game of Quantum Break with a fully live-action episodic component.
“This is no half-measure: Four out of five of Quantum Break’s in-game acts are followed by half-hour live-action episodes using the same actors cast within the game proper. Other narrative-heavy games that take the reins from the player for minutes or even hours at a time have often jokingly been criticized with the suggestion that their creators should “go make a movie” – I’m looking at you, Mr. Kojima – but Remedy has actually done it.
“Even more surprisingly … it’s pretty good? There’s a question mark there because I’m still surprised to be saying it.”
While the player spends the majority of the game controlling a conventional hero character, Jack Joyce, it also allows them to influence the actions of the antagonist, Paul Serene, in a series of playable bookends. Choices made in these sections influence the content of the story told through both the live-action episodes and the remaining game.
“These present an interesting conceit that I’ve never seen in any choice-driven game,” Polygon notes. “You’re making decisions as a villain, and are given the option to see the direct consequences of your actions – but the events that unfold after that are impossible to know. Some characters may vanish from the story entirely, or take on new roles or sides depending on these choices. They also managed to humanize Paul in a way that the game otherwise doesn’t accomplish, adding a tragic spin to the story.”
And it does this with no shortage of style. Indeed, Eurogamer’s review – which does not find Quantum Break to be good enough for Recommended or Essential, nor bad enough to be Avoided – reserves most of its praise for the game’s splendidly polished surface, particularly the impressive way the game, “shares the look and feel of the TV series.”
“Quantum Break is primarily a shooter with little depth or nuance. What it boasts instead is an impeccable sense of style… An explosion in a university grounds, say, or a cruiser ship crashing noisily into a bridge; at these points there’s a deliciously perverse fetishisation of twisting metal and shattered glass that would have done dear Ballard proud, and a phenomenal visualisation of it all, told in countless particles and streaks of expressive light.
“It’s as a spectacle that Quantum Break really triumphs, a showcase of excellence on Remedy’s behalf as it creates an experience that’s aggressively handsome, delivered with great visual flair. When those firefights break out into noisy showers of sparks, pockets of fractured time and splinters of scenery, Quantum Break shows the magic that can happen when you give a handful of demoscene veterans a Hollywood budget.”
All of which sounds promising, but one cannot simply gloss over Eurogamer’s comment that, “Quantum Break is primarily a shooter with little depth or nuance.” Though other outlets might disagree on the use of the word “primarily” in that context, the criticism that Remedy has prioritised style over substance is relatively common. Indeed, Quantum Break’s staunchest critics seem to be those who lacked enthusiasm for its game/TV hybrid elements, leaving its mechanical weaknesses all the more exposed. Giant Bomb, for example, which will settle somewhere towards the bottom of Quantum Break’s Metacritic page with its two star review.
“Actually playing Quantum Break means you’ll engage in a lot of third-person cover shooting and some ill-conceived platforming,” Giant Bomb states, before describing a set of player abilities that are tied to the plot’s time manipulation conceit in name alone. “It feels like the developers just came up with a set of abilities and slapped the word ‘time’ on the front of each one.
“The gun handling in Quantum Break is pretty underwhelming and the powers at your disposal don’t feel as cool as they probably should. In some alternate timeline, this game has abilities that work together and chain off of each other, creating a more satisfying feeling of flow in combat. Instead it’s simple cooldown management as each of your powers is just about as good as every other one at taking down one or two enemies at a time… Remedy has delivered fantastic action games with exciting shooting components in the past, and it’s a real shame that Quantum Break doesn’t follow in those footsteps.
“Overall, the gameplay feels like it needs more variety, which makes the TV show side of things frustrating, since it features a car chase and other things that probably would’ve been more engaging if they were in the video game portion of the product.”
And that leads into the single most divisive aspect of Quantum Break, the apparent reason why its review percentages roam from 40 per cent all the way up to 90: the live-action episodes, and not the concept, but the reality. For Wired, they are “well-acted and tightly paced” enough to save Remedy’s, “radical concept from total disaster… They look and feel exactly like… well, like a mid-season replacement on the USA Network, if we’re being honest. But the action is just intriguing enough that you won’t mind being asked to watch a 20-minute cut scene before beginning the next level.
“[Quantum Break] will be remembered for blending game and live-action in a formula that actually kinda worked, not for its gameplay, which feels unambitious, half-baked.”
Ars Technica, on the other hand, takes a very different view, lambasting the, “excruciatingly average live-action TV show” for interfering with the “many strong elements” elsewhere. Ultimately, that could just be evidence that one person’s Breaking Bad is another’s Brady Bunch, but with a package as lavishly and expensively assembled as Quantum Break, it’s worth contemplating whether it’s a result Remedy and Microsoft will be happy to accept.
“Rather than make room in the live-action show for…character development, that show’s director wastes our time with overlong, poorly shot action sequences,” Ars Technica states. “Microsoft and Remedy’s experiment with live-action TV in a game is a horrible failure of management and execution. It’s as if someone let Xzibit into an Xbox conference room so that he could shout, ‘Yo dawg, I heard you like Netflix on your Xbox’-and totally missed the point of why and how we consume stories within our favorite games. Press Y to skip.”
The next installment of first-person shoot-and-crouch game Call of Duty will take place in space, according to reports, and will not be a direct sequel to Ghosts.
Reports from as far and wide as Eurogamer and Shinobi have this as a pretty sure thing, and we do not consider it an unbelievable proposition.
There have been a few Call of Duty games so far and they have all been terrestrial. The canon has strayed into the near future, but has not yet gone the extra mile into the far future.
Going into space opens Call of Duty to aliens and lasers, and could make the game much more like Halo or any other popular punch-space-aliens-in-the-face games.
Call of Duty developer Infinity Ward is mute, and Activision declined to comment when Eurogamer called at its door. The last time we considered Activision was when the firm was expanding his horizons, and its coffers, by acquiring pastel coloured smartphone crack maker King Digital Entertainment, and taking on Candy Crush and mobile gaming to increase its roster.
The internet has taken the space story and run with it. Twitter is the scene of a lot of Buzz Lightyear memes already, while some people just hope that the incoming title has a bit of the charm and playability of earlier titles like Modern Warfare.
Let us all hope that, at the very least, players will not be charged with shooting and securing garish candies in a nightmare pastel world for the sake of the galaxy. Oh, and let’s also hope that Call of Duty retains the dog feature that everyone liked in the last one.
Software giant Microsoft is planning to get its Xbox business back in gear by making it follow the same sort of business model which worked for it on Microsoft office.
CEO Satya Nadella said that Microsoft has shifted its focus away from trying to strong-arm competitors out of the market, and towards a future of providing apps and services on the iPhones, Android phones, and Macs.
For example Microsoft Office is already on a subscription-based service available via the Internet. With the Office 365 service, customers pay their $10/month (or more if they’re a business) and get access to all the Office apps they can eat.
Redmond recently announced that it had 48 million monthly active users of its Xbox Live gaming service, across both the last-generation (but still popular) Xbox 360 console and the newer Xbox One.
Redmond sells this in two subscription tiers: Silver, which is free, and Gold, which is $60 per year. Silver subscribers can buy games, movies, and TV shows from the Xbox’s digital store they are also expected to swim while wearing pajamas. But subscribing at the Gold level gets you some crucial perks, including the ability to play multiplayer games online and a handful of “free” games every month. Gold subscription will also mean that people start calling you ‘sir’ or ‘madam’ and take their hats off when they talk to you.
What is different is that the new Windows 10 operating system can push Microsoft’s subscription services on you including the Xbox live. It has all been dubbed as “Xbox as a service.”
The latest game from Microsoft “Quantum Break,” was supposed to be an Xbox exclusive. It was announced that there also be a PC version, which buyers of “Quantum Break” for the Xbox One get for free. Most important, you also can sync your saved games across the two via the cloud.
Xbox boss Phil Spencer said that this would be a “platform feature” for the Xbox and Windows 10. Basically it means you buy the game once, get two copies that you can play anywhere.
Sony is behind in this because it does not have Windows 10 as its trump card. It offers “cross-buy support” for some while on select games, letting you buy a game once and play it on your PlayStation 4 or the handheld PlayStation Vita console.
Nintendo’s finances took a dip in the company’s third quarter report for FY 2015 – sales stayed relatively stable with just 3.9 per cent shrinkage to 427.7 billion Yen ($3.5bn), but profits dropped by 32 per cent year-on-year to 40.5 billion Yen ($336m).
Although the bottom line failed to excite, plenty of familiar faces performed well for the publisher’s software arm, as well as a few new names. Top seller was Child friendly Wii U shooter Splatoon, shifting over four million units. Super Mario maker wasn’t far behind on 3.34 million, whilst Animal Crossing Happy Home Designer reached 2.93 million. Collectively the 3DS family sold 5.88 million units of hardware and 38.87 million games. The Wii U totalled 3.06 million consoles and 22.62 million pieces of software. 20.50 million Amiibo figures were sold, and approximately 21.50 million Amiibo cards.
Those eagerly awaiting news of either the new NX system or the company’s first smartphone game will be disappointed – neither was mentioned in the company’s forward looking statements. Instead, the publisher focused on relatively known quantities.
“For Nintendo 3DS, we will globally release a special edition hardware pre-installed with Pokémon title(s) from the original Pokémon series on February 27 which marks the 20th year since the original Pokémon series release,2 read the accompanying statement.
“Furthermore, Mario & Sonic at the Rio 2016 Olympic Games and key titles from third-party publishers are scheduled for release. For Wii U, we will strive to maintain the attention level of Splatoon and Super Mario Maker, which are continuing to show steady sales, while introducing new titles such as The Legend of Zelda: Twilight Princess HD. Meanwhile, for Amiibo, we will continue to expand the product lineup in order to maintain momentum. At the same time, we will aim to further expand sales by offering new gaming experiences with the use of Amiibo. In addition, the first application for smart devices, Miitomo, is scheduled for release.”
The company has maintained its full year target of 35 billion Yen in profit.
According to Newzoo’s 2016 Global eSports Market Report, this year is expected to be a “pivotal” one for the eSports sector. The firm said that last year’s tally for worldwide eSports revenues came to $325 million, and this year the full eSports economy should grow 43 percent to $463 million; Newzoo said this correlates with an audience of 131 million eSports enthusiasts and another 125 million “occasional viewers who tune in mainly for the big international events.” Overall, Newzoo’s report states that global and local eSports markets should jointly generate $1.1 billion in 2019.
Looking a bit deeper, Newzoo found that investment into and advertising associated with eSports continue to grow at a rapid clip. “This year has been dominated by the amount of investors getting involved in eSports. An increasing amount of traditional media companies have become aware of the value of the eSports sphere and have launched their first eSports initiatives. With these parties getting involved, there will be an increased focus on content and media rights. All major publishers have increased their investment into the space, realizing that convergence of video, live events and the game itself are providing consumers the cross-screen entertainment they desire from their favorite franchises,” Newzoo commented.
Online advertising in particular is the fastest growing revenue segment within eSports, jumping up 99.6 percent on a global scale compared to 2014. North America is expected to lead the charge worldwide.
“In 2016, North America will strengthen its lead in terms of revenues with an anticipated $175 million generated through merchandise, event tickets, sponsorships, online advertising and media rights. A significant part of these revenues flows back to the game publisher, but across all publishers, more money is invested into the eSports economy than is directly recouped by their eSports activities,” said Newzoo’s eSports Analyst, Pieter van den Heuvel.
“China and Korea together will represent 23 percent of global esports revenues, totalling $106 million in 2016. Audience-wise, the situation is different, with Asia contributing 44 percent of global eSports enthusiasts. Growth in this region is, for a large part, fuelled by an explosive uptake in Southeast Asia.”
While eSports is certainly on a good path for growth, game companies would be wise to not get too caught up by the hype. The average annual revenue per eSports enthusiast was $2.83 in 2015 and is expected to grow to $3.53 this year, Newzoo said, but that’s still a factor four lower than a mainstream sport such as basketball, which generates revenues of $15 per fan per year.
Peter Warman, CEO at Newzoo added, “The initial buzz will settle down and the way forward on several key factors, such as regulations, content rights and involvement of traditional media, will become more clear. The collapse of MLG was a reminder that this market still has a long road to maturity and we need to be realistic about the opportunities it provides. In that respect, it is in nobody’s interest that current market estimates differ so strongly. Luckily, when zooming in on the highest market estimates of more than $700 million, the difference is explainable by an in-depth look. This estimate only differs in the revenues generated in Asia (Korea in particular), and by taking betting revenues into account. At Newzoo, we believe betting on eSports should not be mixed into direct eSports revenues as the money does not flow into the eSports economy. Similarly, sports betting is not reported in sports market reports.”
On February 16, Street Fighter V will launch on PlayStation 4 and PC. It will not be launching to Xbox One thanks to an exclusivity deal signed with Sony. And as Capcom director of brand marketing and eSports Matt Dahlgren told GamesIndustry.biz recently, there are a few reasons for that.
Dahlgren called the deal “the largest strategic partnership that fighting games have ever seen,” and said it addressed several problems the publisher has had surrounding its fighting games for years.
“Basically every SKU of a game we released had its own segmented community,” he said. “No one was really able to play together and online leaderboards were always segmented, so it was very difficult to find out who would be the best online and compare everybody across the board.”
Street Fighter V should alleviate that problem as it’s only on two platforms, and gamers on each will be able to play with those on the other. Dahlgren said it will also help salt away problems that stemmed from differences between platforms. For example, the Xbox 360 version of Street Fighter IV had less input lag than the PS3 version. That fraction of a second difference between button press and action on-screen might have been unnoticeable to most casual players, but it was felt by high-level players who know the game down to the last frame of animation.
“There were varying degrees of input lag, so when those players ended up playing each other, it wasn’t necessarily on an equal playing field,” Dahlgren said. “This time around, by standardizing the platform and making everyone play together, there will be a tournament standard and everyone is on an equal playing field.”
Finally, Dahlgren said the deal with Sony will help take Street Fighter to the next level when it comes to eSports. In some ways, it’s a wonder it’s not there already.
“I think fighting games are one of the purest forms of 1v1 competition,” Dahlgren said. “A lot of the other eSports games out there are team-based, and while there’s an appeal to those, there’s something about having a single champion and having that 1v1 showdown that’s just inherently easy for people to understand.”
Street Fighter has a competitive gaming legacy longer than League of Legends or DOTA, but isn’t mentioned in the same breath as those hits on the eSports scene. In some ways, that legacy might have stymied the franchise’s growth in eSports.
“A lot of our community was really built by the fans themselves,” Dahlgren said. “Our tournament scene was built by grassroots tournament organizers, really without the help of Capcom throughout the years. And I would say a lot of those fans have been somewhat defensive [about expanding the game's appeal to new audiences]. It hasn’t been as inclusive as it could have been. With that said, I do definitely feel a shift in our community. There’s always been a talking point with our hardcore fans as to whether or not Street Fighter is an eSport, and what eSports could do for the scene. Could it potentially hurt it? There’s been all this controversy behind it.”
Even Capcom has shifted stances on how to handle Street Fighter as an eSport.
“In the past, we were actually against partnering up with any sort of corporations or companies out there that were treating eSports more like a business,” Dahlgren said. “And that has to do out of respect for some of our long-term tournament organizers… Our fear was that if we go out and partner up with companies concerned more about making a profit off the scene instead of the values that drive the community, then it could end up stomping out all these tournament organizers who are very passionate and have done so much for our franchise.”
“In the past, we were actually against partnering up with any sort of corporations or companies out there that were treating eSports more like a business.”
So instead of teaming with the MLGs or ESLs of the world, Capcom teamed with Twitch and formed its own Pro Tour in 2014. Local tournament organizers handle the logistics of the shows and retain the rights to their brands, while Capcom provides marketing support and helps with production values.
“I can’t say Capcom wouldn’t partner up with some of the other, more established eSports leagues out there,” Dahlgren said. “I do think there’s a way to make both of them exist, but our priority in the beginning was paying homage to our hardcore fans that helped build the scene, protecting them and allowing them to still have the entrepreneurial spirit to grow their own events. That comes first, before partnering with larger organizations.”
Just as Capcom’s stance toward tournaments has changed to better suit Street Fighter’s growth as an eSport, so too has the business model behind the game. The company has clearly looked at the success of many free-to-play eSports favorites and incorporated elements of them (except the whole “free-to-play” thing) into Street Fighter V. Previously, Capcom would release a core Street Fighter game, followed by annual or bi-annual updates with a handful of new fighters and balancing tweaks. Street Fighter V will have no such “Super” versions, with all new content and tweaks made to the game on a rolling basis.
“We are treating the game now more as a platform and a service, and are going to be continually adding new content post-launch,” Dahlgren said. “This is the first time we’re actually having our own in-game economy and in-game currency. So the more you play the game online, you’re going to generate fight money, and then you can use that fight money to earn DLC content post-launch free of charge, which is a first in our franchise. So essentially we’re looking at an approach that takes the best of both worlds. It’s not too far away from what our players really expect from a SF game, yet we get some of the benefits of continually releasing content post-launch and giving fans more of what they want to increase engagement long-term.”
Even if it’s not quite free-to-play, Street Fighter V may at least be cheaper to play. Dahlgren said that pricey arcade stick peripherals are not as essential for dedicated players as they might have seemed in the past.
“Since Street Fighter comes from an arcade heritage, a lot of people have this general belief that arcade sticks are the premier way of playing,” Dahlgren said. “I think now that the platform choice has moved more towards consoles, pad play has definitely become much more prevalent. I would believe that at launch you’re probably going to have more pad players than you actually have stick players. And in the competitive scene, we’ve seen the rise of a lot of very impressive pad players, which has pretty much shown that Street Fighter is a game that’s not necessarily dictated by the controller you play with; it’s the strategies and tactics you employ. And both of them are essentially on equal playing ground.”