Games generated $91 billion worldwide in 2016, according to a report from beancounters at SuperData Research who have been adding up some numbers on Christmas Party napkins.
Most of the cash was made in the mobile game segment some $41 billion (up 18 percent), followed by $26 billion for retail games and $19 billion for free-to-play online games.
Beancountrs at SuperData said that the new categories such as virtual reality, esports, and gaming video content were small in size, but they are growing fast and holding promise for next year. Hardware firms like Sony and HTC to take the lead in 2017. Still,
VR grew to $2.7 billion in 2016. Gaming video reached $4.4 billion, up 34 percent.
Mobile gaming was driven by Pokémon Go and Clash Royale. The mobile games market has started to mature and now more closely resembles traditional games publishing, requiring ever higher production values and marketing spend. Monster Strike was the top mobile game, with $1.3 billion in revenue.
The esports market generated $892 million (up 19 percent) in revenue. A string of investments in pursuit of connecting to a new generation of media consumers has built the segment’s momentum, as major publishers like Activision, Riot Games, and EA are exploring new revenue streams for selling media rights, according to the report.
Consumers increasingly download games directly to their consoles, spending $6.6 billion on digital downloads in 2016 which has helped improve margins.
PC gaming continues to do well, earning $34 billion (up 6.7 percent) and driven largely by free-to-play online titles and downloadable games. League of Legends together with newcomers like Overwatch are driving the growth in PC games.
PC gamers also saw a big improvement with the release of a new generation of graphics cards.
According to the announcement made by EA earlier this week, it appears that there won’t be any new Battlefield game for a “couple of years”.
The announcement, which says that there are no plans for a new Battlefield game for another “couple of years”, was made during EA’s Investor Program by EA’s chief financial officer Blake Jorgensen and came as a rather big surprise, especially considering that the latest Battlefield 1 was a big success.
It appears that EA will be rather focusing on Battlefront, the Star Wars themed game, and the next one will be both “much bigger” and “much more exciting”, which was something that was a big drawback of the first Battlefront.
Of course, EA still plans to release those four expansion packs but we do not know any future plans for the franchise.
Hopefully, this also means that EA will have something special in store for future Battlefield titles as they certainly both surprised everyone and made a great hit by using the World War I.
Last week, over three and a half years after its initial release, Digital Extremes’ free-to-play shooter Warframe broke its concurrent player record with expansion The War Within, hitting Steam’s top three on the weekend of release, recording a maximum of 68,530 players online at once and logging an incredible 1.2 million hours of playtime in a single day. Across PC and the more recent Xbox One and PS4 versions of the game, over 1 million of the 26 million players who have registered since the game’s 2013 launch had played by November’s halfway point, beating all previous monthly unique records with a fortnight to go.
Those are impressive numbers, especially for a game at a point in its lifecycle where it could certainly be forgiven for slowing down – and it’s no anomalous bump. Instead, a quick glance at SteamSpy’s graphs for the game show a steadily increasing number of players for the game, as well as a very healthy schedule of updates, patches and big content drops. Rather than leeching users to other games as it ages, Warframe is going from strength to strength.
Meridith Braun, VP Publishing at Digital Extremes, says that it’s been a tight compromise of strategies – resulting in a success which far exceeds the expectations of a game which was initially seen as something of a make or break exercise. Key to that, she says, has been a careful acquisition process, but not one which has come at the cost of long term curation and engagement of existing players.
“It’s definitely a balancing act between catering development to new players and veterans of the game,” Braun explains, “but after 3.5 years, the core of the game has grown so much that for new players there are literally hundreds of hours of missions, quests, customising and exploring game systems before they catch up to where veteran players are.
“Whilst many of our updates focus on adding new content and improving game systems that our veterans are most interested in, earlier this year we took a fresh look at the new player experience and released an update that refined some of the tutorials, updated the UI, tied quests together to help the lore flow better, and revamped the market for easier functionality. It was not our most played update, like The Second Dream or The War Within, but it served a long-tail purpose of making Warframe more inviting and easier to understand for new players. It helps them navigate to the really intricate depths of the game with the intent to retain them long-term.”
“We spend very little compared to other free-to-play games that focus a large amount of their budgets on acquisition”
Polishing the tip of the spear is a tried and tested acquisition technique, but it’s not usually a way of sidestepping the vast costs which many companies associate with gathering new players. Warframe’s marketing, though, was forged in a crucible of necessity, at a time when budgets were almost non-existent. As a result, the studio has learned to maximise the gain from channels which deliver users without draining revenue, although the financial success of the game has also enabled them to operate in areas previously well beyond their price range.
“We spend very little compared to other free-to-play games that focus a large amount of their budgets on acquisition,” says Braun. “Warframe was a passion project – the studio’s ‘Hail Mary’ pass, if you will. There was barely budget to buy an account server for the game, let alone to spend on marketing at the time. We turned to viral everything to get the word out: live streaming, social media, Reddit, forums, PR, knocking on partner’s doors for promotional opportunities. Once we launched in open beta and more players got a taste of the game, it was clear we had something unique on our hands. Since then our acquisition strategy has focused primarily on our update schedule and community involvement.
“We discovered early on that frequent significant updates – updates that added dramatic gameplay changes, enhancements and content, and transparency with our community, brought in droves of new players. Now that we have more wiggle room in our coffers, we work the usual acquisition channels – online CPA-focused advertising, social media, streaming, etc. – but nothing beats age old word-of-mouth between players telling their friends to join in on a game that only gets better and better over time.”
What’s perhaps even more unusual about the current high that Warframe finds itself riding upon is that it comes at a time when the AAA shooter market is crowded with a wide spread of very high quality competitors – many of which are under-performing at retail. The game’s peak numbers come at a point when there are brand new Battlefield and Call of Duty games at market, as well as extremely well reviewed releases like the Titanfall and Dishonored sequels.
“Warframe was a passion project – the studio’s ‘Hail Mary’ pass, if you will. There was barely budget to buy an account server for the game, let alone to spend on marketing at the time”
Braun very much sees free-to-play as playing a significant part in the difficulties which Warframe’s boxed rivals are experiencing.
“I think we’re seeing the F2P model disrupting the standard retail model for larger budget games,” she says. “The continued rise of AAA-quality, free-to-play games coming to market – and their ability to fill the long gaps between large IP releases – is taking a bite out of the big game market. Just this year it was great to see F2P titles like Paragon and Paladins launch to great fanfare and numbers, I’m sure they both had some effect on the big budget FPS games alongside Warframe.
“It’s hard to compete with free. Sure, we want people to eventually pay for the entertainment they’re receiving – but when you have the ability to try out a game for free for as long as you want, a game with equally great production value, and then decide if it’s a game that deserves your money, that’s pretty stiff competition. The larger games also aren’t built to be as agile and reactive to the market after they ship. Free games at their core are made to continually update and improve, offering incredible value and entertainment over a longer period of time.”
Blizzard probably has a few things to say about the notion that free-to-play games offer the best long-term player engagement and responsive improvement, and Braun freely admits that games like Overwatch share that strategy of player curation. Warframe, she says, also offers something else, though. Because it wasn’t a Blizzard game, born almost fully-fledged and slickly functional, early adopters have had the joy of watching it smooth out its rougher edges.
“When Warframe first launched it was a shell of the size of game it has become, and our players have stayed with our growth throughout its life-span. They enjoy taking the ride with us, being a part of the evolution, experiencing game development from the front seat. If you’re not thinking about long-term engagement and game service at the heart of your game design as a good part of the future of gaming, you may have yet to come to grips with the dwindling projections of one-and-done games.”
Whether it is the return of X-Files and Twin Peaks, or Shenmue and Pokémon, bringing back classic IP has become a safe way to secure headlines and generate copious amounts of hype.
Yet it’s not just brands that are tapping into our love for the familiar. Take this summer’s smash Netflix show Stranger Things, which plays homage to both ’80s Spielberg and classic horror. Or indeed the millions of dollars that the likes of Yooka-Laylee and Bloodstained have raised on Kickstarter – the former riffing on 1990s platformers like Banjo-Kazooie (and made by many of the same team members), with the latter acting as the spiritual successor to Castlevania (from former producer Koji Igarashi).
Ron Gilbert is another person looking to recreate those ’90s feelings. The adventure game maker behind the likes of Maniac Mansion and Monkey Island is creating a new one called Thimbleweed Park, a point-and-click adventure with retro 8-bit visuals that raised $626,250 via Kickstarter.
“I think a lot of the nostalgia that is around right now comes from a desire to go back to a simpler time,” suggest Gilbert, speaking to Gamesindustry.biz shortly after appearing at Melbourne International Games Week in Australia.
“Back then games were a little bit simpler and seeping with charm. A lot of people that love the 8-bit games today might not have even been alive back then, but they still identify with that era because it was so interesting and charming.
“It is really one of the reasons we did Thimbleweed Park. We were looking at and asking why was Monkey Island and Maniac Mansion so appealing? What is it about modern adventure games, although they’re interesting and have great stories, that means they lack the charm those games from that era had? Can we recreate that old feeling today?”
Point-and-click adventure games are enjoying a small renaissance, thanks in part to the rise of indie developers – as indeed are platformers, Metroidvania games and a whole host of other genres long thought dead.
“I don’t know exactly why adventure games faded away,” Gilbert continues.
“I do feel that somewhere around the mid-90s, point-and-click adventures sort of ran off the rails. A lot of really – for want of a better word – stupid puzzles were being made. I think what happened was that people looked at this, and went: ‘Wait a minute, you’re asking me to do completely ridiculous and random things to get through these games.’ Some players just checked out at that point.
“You also had games like Doom that came along and were first person and were more action orientated, and those games attracted a very different audience into games. So I don’t know if adventure games necessarily fell, but they certainly didn’t grow with the rest of the industry. But now we are seeing this place where we are attracting a much broader audience, and a little bit of that is due to mobile games being so ubiquitous. There are just so many more people playing games these days, and with adventure games being very story and character focused, they are able to attract that broader audience.”
He continues: “You have games that have always been niche markets. Now, because of digital distribution and the way the democratization of development tools is working, niche markets can be viable markets.”
Gilbert is enjoying the current state of indie development and the ability to make decent games with relatively small teams. It speaks to his days making titles in the ’80s and ’90s. Maniac Mansion was made with three people, Monkey Island had five full time members of staff, which increased to seven for its sequel.
Thimbleweed Park is also being made by just a handful of creators, with input from the game’s plentiful Kickstarter supporters. But this desire to go back to those early days is not just about how the visuals looked or how small the teams were, Gilbert also wants to head back to a period when developers didn’t take themselves quite so seriously.
“When we were making games back then, it was all kind of new,” Gilbert remembers. “We didn’t have anything to go from, so it was a more innocent time. Games today, although I love modern adventure games like Firewatch or Kentucky Route Zero, they are very deep and thoughtful. They require a lot from me as a player, or the viewer, because there are very interesting, deep messages that I am gleaming from this stuff. And that’s largely just the advancement of the art form. The games of the ’80s and early ’90s, they were just more innocent, and simple and therefore more charming.
“Adventure games have certainly improved. Visually, games like Firewatch are much more advanced. But I think they’ve advanced in some ways and they’ve actually de-evolved in others. I think they’re more advanced because they are trying to tell more meaningful stories, stories that are truly about something interesting or important.
“But in other ways, they haven’t moved forward. Games like Kentucky Route Zero… although I enjoyed that game quite a bit, I sort of jokingly call it the ‘press A to continue game’, because I didn’t feel like I was making a lot of choices. I was just kind of pressing the A button to get to the next piece of dialogue, and it was greatly written dialogue and it was a captivating world, which made it ok. In Firewatch, you are spending a lot of time walking around and exploring this world, and it is a very fascinating world and a very beautiful place, so I was utterly enthralled with it, but there’s not actually a lot to do. The old school adventure games really required you to work. It was a case of: ‘here is a load of puzzles and here is a bunch of story, and you have to solve all these puzzles, which should lead to uncovering the next part of the mystery’. The classic adventure games were more sophisticated in that sense.”
Like Yooka-Laylee with Banjo-Kazooie and Bloodstained with Castlevania, Thimbleweed Park is a game that could easily have had the words ‘Maniac Mansion’ or ‘Monkey Island’ plastered on the artwork. Gilbert does hope his new IP can be successful enough to become a series, but he also, quite publicly, wants to revisit those classic franchises that made his name. Both Maniac Mansion and Monkey Island were created at LucasArts, so the rights to them currently reside in the vaults somewhere at Disney’s HQ.
Disney has largely moved on from video games, and Gilbert has asked the media giant on Twitter to let him buy back the rights to his old franchises. To no avail, so far.
We ended our conversation by asking Gilbert if he had considered returning to Kickstarter to raise the funds he might need to acquire those 1990s brands.
“Buying the rights back for those games… it’s not a matter of money, it is a matter of Disney being willing to sell them,” Gilbert concludes. “If Disney came to me and said: ‘Hey, we’ll sell you Monkey Island’. I will go get the money. No amount of crowd-funding is going to make this happen, it’s just a case of Disney agreeing to sell them.
“I’ve not managed to talk to anyone at Disney who is high enough up the ladder to make that decision. I fear that the people who would make that decision have no idea what Monkey Island is.”
Call of Duty: Infinite Warfare was the No.1 boxed game in the UK this week, but Week One sales were down 48.4 percent compared with the same period for last year’s Black Ops III.
It’s the fiercest drop the franchise has suffered since it became one of the world’s most popular entertainment properties following the success of Call of Duty: Modern Warfare in 2007.
There was no PS3 or Xbox 360 version this year, however even just comparing the PS4 and Xbox One figures shows a sales drop of 43.6 percent.
Activision has changed its strategy a little with the series, and has put an increased emphasis on generating more revenue from its fans via DLC, special editions and microtransactions, as opposed to growing user numbers. Nevertheless, such a steep fall will come as a big disappointment to the firm and to UK retailers.
This was still the second biggest UK game launch of the year after FIFA 17. However, Call of Duty now finds itself playing catch-up with its biggest rival, Battlefield 1, which has already passed over half a million sales in the UK – the game has been on sale for two weeks longer.
It is important to note that all of these statistics do not factors in sales made via Steam, PSN, Xbox Live or EA Origin.
Call of Duty’s performance follows the disappointing launch of Titanfall 2. That EA game suffered a relatively mild 41 per cent week-on-week drop in its second week, but it is still selling well below what would have been expected for the IP.
It once again calls into question the logic of launching three huge first person shooter games within such close proximity.
There was one other new entry in the physical retail charts this week, Football Manager 2016 at No.6. The PC game almost certainly would have performed far better than this once you consider digital sales.
It wasn’t all bad news for Activision, Skylanders Imaginators has returned to the Top Ten following recent TV advertising, with sales rising 131 percent week-on-week.
All figures are courtesy of UK physical games tracker GfK and UKIE.
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.
The conventional wisdom said that military first-person shooters avoided World War I because it wasn’t a “fun” war. EA DICE set out to prove the conventional wisdom wrong with Battlefield 1, and the initial wave of reviews suggests they succeeded.
As Polygon’s Arthur Gies noted in his 9 out of 10 review of the game, one of the ways DICE accomplished that was by using its single-player War Stories mode as a way to convey just how horrific the war really was.
“Battlefield 1 navigates the tonal challenges of the awful human cost of WWI well, in part by not ignoring them,” Gies said. “There’s a consistent acknowledgment of the abject terror and hopelessness that sat atop the people involved in the conflict on all sides, in part thanks to a grimly effective prologue. There’s also less explicit demonetization of the ‘enemy’ – something that feels like a real relief in the military shooter space, which seems hell-bent on giving players something they can feel good about shooting at.”
War Stories is a mostly unconnected series of short campaigns that total about six hours of playtime in total. The anthology puts players in the roles of different individuals in different combat zones, each one with their own distinct motivations and skill sets.
“Battlefield 1 feels like a move away from military shooter doctrine in plenty of ways,” Gies said. “But the biggest departure is in how little shooting there can be, at least compared to the game’s contemporaries. From tank pilot to fighter ace, from Italian shock trooper to Bedouin horse-back resistance fighter, I was never bored, because I was never doing the same thing for long.”
The change in setting also impacted the multiplayer portion of the game, which Gies appreciated. While DICE made some changes in player classes that Gies seemed to think unnecessary but “mostly fine,” he was particularly taken with the way the series’ signature physics-driven chaos and destruction felt fresh in a new (old) setting.
“Small issues aside, Battlefield 1 marks an impressive, risk-taking reinvention for the series,” Gies said. “That the multiplayer is as good and distinctive as it is is less surprising than a campaign that takes a difficult setting and navigates it with skill and invention. The end result is a shooter than succeeded far beyond my expectations, and one that exists as the best, most complete Battlefield package since 2010.”
Like Gies, GameSpot’s Miguel Concepcion gave the game a 9 out of 10. Also like Gies, Concepcion labelled the game as the best Battlefield since Bad Company 2, praising the War Stories single-player mode and its novel approach to entertaining while also attempting to inform players as to the horrors of the war.
“Beyond these heartfelt tales of brotherhood and solemn reflection, War Stories gracefully complements the multiplayer scenarios as a glorified yet effective training mode,” Concepcion said. “Along with practice time commanding vehicles and heavy artillery, it provides an opportunity to learn melee combat, as well as how to survive against high concentrations of enemy forces.”
Concepcion was also taken with the audiovisual impact of the game, long a selling point for the Battlefield franchise.
“However accurate or inaccurate Battlefield 1 is–lite J.J. Abrams lens effects notwithstanding–the immersive production values superbly amplify the sights and sounds that have previously existed in other war shooters,” Concepcion said. “Examples include the distinct clatter of empty shells dropping on the metal floor of a tank and the delayed sound of an exploding balloon from far away. The brushed metal on a specific part of a revolver is the kind of eye-catching distraction that can get you killed. Beyond the usual cacophony of a 64-player match, salvos from tanks and artillery guns add bombast and bass to the large map match. And many vistas are accentuated with weather-affected lighting with dramatic results, like the blinding white sunlight that reflects off a lake after a rainstorm.
“With Battlefield 1, EA and DICE have proven the viability of World War 1 as a time period worth revisiting in first-person shooters. It brings into focus countries and nationalities that do not exist today while also shedding light on how the outcome of that war has shaped our lives.”
In giving the game four stars out of five, Games Radar’s David Roberts also lauded the way DICE balanced a fun shooter with the horror of war.
“Even though Battlefield 1 skews toward fun rather than realism whenever it gets the chance, it’s as much about the reflection on the real history of these battles and the people who fought in them as it is about the gleeful embrace of ridiculous virtual combat,” Roberts said.
Like his peers, Roberts was impressed by the game’s War Stories single-player mode, but found the anthology format slightly restricting.
“As much as I enjoyed the narratives these missions tell, I wished each one had a little more time to breathe,” Roberts said. “Each chapter is about an hour long, and just when you get invested, they’re over. Battlefield 1’s War Stories barely skim the surface of the history, but – to be fair – this is in-line with the game’s focus on fun over fastidious accuracy.”
As for the multiplayer, Roberts said its “as good here as it’s ever been” for the Battlefield franchise. Even though the setting meant trading in the modern assault rifles of previous Battlefield games for more antiquated rifles and iron sights, Roberts said the overall impact has been an improvement on the game’s online modes.
He also found the franchise focus on destruction was given new meaning by its fresh context.
“When all’s said and done, when the matches end and the dust settles, you’ll see that large portions of the maps have transformed, their buildings pockmarked by blasts, their fortifications turned into piles of rubble,” Roberts said. “Even though bloody entertainment is at Battlefield 1’s heart, the post-game wasteland is a reminder of the toll that conflict takes on the people it consumes. Whether in single or multiplayer Battlefield 1 absolutely nails the historical sense of adventure and expectation before swiftly giving way to dread as the war takes a physical and mental toll on its participants. And this – as much as the intimate, brutal virtual warfare – is the game’s most impressive feat.”
While EGM’s Nick Plessas gave the game an 8 out of 10, he included slightly more critical comments than some other reviewers doling out equivalent scores. He was generally upbeat about the War Stories approach, but said it “misses the forest for the trees somewhat by not giving any story enough time for effectual investment.” He also identified two other issues that hamper the gameplay segments of the single-player mode.
“First, enemy AI leaves much to be desired, so that even on Hard difficulty your foes’ failure to react, flank, or recognize you as a threat syphons some of the fun out of fights,” Plessas said. “Second, the game adds a focus on stealth with a collection of mechanics like enemy awareness levels and distraction tools. While this isn’t inherently a bad thing, the Battlefield games’ fast pace and stiff controls don’t suit stealth very well, and the enemies’ recurring AI deficiencies makes these sections a slog.”
As for online, Plessas said new features like Behemoth vehicles (zeppelins, trains, and warships) were well-handled, as were “elite” classes like flamethrower troops. The addition of cavalry troops and era-appropriate weapons and planes will also require players to adjust the tactics they might have relied on in previous Battlefield games. However, the adjustment may not be as drastic as one might expect.
“These comparisons are integral because they represent the crux of what is truly new in Battlefield 1,” Plessas said. “A World War I setting is novel indeed, but this installment in the franchise is fundamentally the Battlefield game we have played before-and returning players may fall into a familiar groove quicker than expected. This isn’t necessarily bad for those in love with Battlefield, however, and while the setting may be the most significant shift, those invested in the series will find Battlefield 1 as another terrific reason to load up.”
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.
A little bit of clarity can go a long way. A few weeks ago at the reveal of the PS4 Pro, in a staff roundtable I questioned whether Sony’s new console would hurt Microsoft’s chances with the more powerful Scorpio. I also gave Sony an edge because of its HDR rollout to all PS4s. As it turns out, the HDR update is practically useless (no games supported yet and no video streaming) and the PS4 Pro itself will see most games upscaled, according to Sony Interactive boss Andrew House.
While PS4 architect Mark Cerny did make it clear during the conference that the Pro does not render games in true 4K resolution, many fans had no doubt assumed it would and likely glossed over his technical explanation of the Pro’s “streamlined rendering techniques” and “temporal and spatial anti-aliasing.” It’s hard to say how much consumers will care when the Pro goes on sale in November, but Microsoft wasted no time in puffing up its chest to declare its superiority with a console that won’t ship for many, many months.
Microsoft Studios Publishing general manager Shannon Loftis told USA Today, “Any games we’re making that we’re launching in the Scorpio time frame, we’re making sure they can natively render at 4K.” Moreover, Albert Penello, senior director of product management and planning at Xbox, hammered home the point with our sister site Eurogamer, commenting, “I think there are a lot of caveats they’re giving customers right now around 4K. They’re talking about checkerboard rendering and up-scaling and things like that. There are just a lot of asterisks in their marketing around 4K, which is interesting because when we thought about what spec we wanted for Scorpio, we were very clear we wanted developers to take their Xbox One engines and render them in native, true 4K. That was why we picked the number, that’s why we have the memory bandwidth we have, that’s why we have the teraflops we have, because it’s what we heard from game developers was required to achieve native 4K.”
That’s a punch to the gut in true console war fashion, and one that Microsoft is no doubt happy to get in during a console cycle which has seen PS4 dominate. It may not seem like a big deal right now, as 4K TV sales are still relatively minor, but the prices are falling and interest in 4K and HDR is picking up, not only with consumers, but also with game developers and content providers for streaming services like Netflix. This could be a decent holiday for the 4K TV market, and by the time Scorpio actually does launch there will be that many more 4K TV owners to target with the only console that renders 4K natively. That’s a nice feather in Microsoft’s cap.
This week we also featured an interesting writeup on VR and AR from DICE Europe. While VR proponents like Unity’s Clive Downie said there will be over a billion people using VR in the next 10 years, others such as Niantic’s John Hanke and Apple boss Tim Cook cast doubt on the long-term appeal and commerical success of VR. Of course, this isn’t the first time that people have wondered whether VR will ever move beyond a niche category – and indeed, our Rob Fahey talks about the over-investment in the space in his column today – but the idea that VR is merely an intermediary step before AR comes into its own is the wrong way to think about these technologies in my view.
Just because they both offer altered realities and utilize headsets does not mean they should be lumped together. The use cases and experiences are vastly different for VR and AR, and while I agree that AR likely is the better bet from a commercial standpoint, I don’t underestimate VR for one second. I’ve had way too many fun game sessions using the tech already, and it’s early days. Beyond that, serious movie makers are starting to leverage the great potential of the medium. Jon Favreau (Iron Man, The Jungle Book), for example, is working on a VR film called Gnomes and Goblins and he’s even brought on veteran game designer Doug Church (System Shock, Thief) to fine tune the VR interactions.
The fact is VR has enormous storytelling potential and can immerse its users in ways that we’ve never experienced before. “As I work in film, so much has been done,” Favreau commented. “There are technological breakthroughs but there is less and less up in the air. You’re really writing a song in the same format that has been going on for at least a hundred years. And what’s interesting about VR is that, although I really don’t know where it’s going or if it’s going to catch on in a significant way culturally, I do know that there is a lot of unexplored territory and a lot of fun things as a storyteller for me to experiment with. It’s exciting to have so much fresh snow that nobody has walked through yet. There’s been no medium that I’ve felt that way since I’ve come into the business, where it feels like you can really be a pioneer.”
AR will be tremendously exciting in its own right, and I can’t wait for Magic Leap, HoloLens and castAR, but to think that VR will be cast aside to make way for AR’s ascendancy is totally off base.
Those players all participated in Battlefield 1’s beta across ten days, between August 30 and September 8. EA DICE has confirmed that the 13.2 million people make it “the biggest beta in EA’s history,” topping the previous record holder, Star Wars: Battlefront, which attracted more than 9 million players.
As big as Battlefront’s beta was, though, it was surpassed in popularity by Blizzard Entertainment’s Overwatch, which pulled in 9.7 million in May this year. The question surrounding Battlefield I, then, is whether it’s the most popular beta of this generation. While EA hadn’t laid claim to that at the time of writing, based on other publicly available figures it seems likely: Ubisoft’s The Division had 6.4 million players in its beta, while Activision’s Destiny had 4.6 million.
In any case, these will be glad tidings for EA DICE, and EA’s shareholders. As Niko Partners’ Daniel Ahmad pointed out on Twitter, Destiny, The Division, Battlefront and Overwatch all demonstrate a clear trend.
One trend I’ll note is that each of the full games above sold to more people than played the open beta’s within the 3 months from launch.
— Daniel Ahmad (@ZhugeEX) September 15, 2016
Battlefield 1 launches on October 21.
Halfway through Sony’s announcement event for its new consoles – the redesigned, slimmer PS4 and the new, more powerful PS4 Pro – I found myself thinking about the optics of these events. I’ve seen the announcement events for every console since the PS2, and of them all, this was by far the most muted. The lack of bombast and braggadocio could speak to a quietly understated confidence, or to uncertainty, depending on where you’re standing. I suspect that the truth lies somewhere in the middle – Sony, achieving success it hasn’t seen since the PS2’s halcyon days, is certainly confident, but is also walking out onto uncertain territory with the PS4 Pro. The ground underfoot is no longer familiar.
The slim PS4, of course – perhaps the worst-kept secret in the history of the industry, given the appearance of functioning models on auction websites prior to the announcement – is nothing unexpected. Three years into the PS4’s lifespan, a slimmed down redesign was inevitable; it joins the (arguably rather more attractive) Xbox One S on the shelves as a sleeker model whose launch is somewhat overshadowed by impending obsolescence. Xbox One S, at least, has a year to run before the hugely more powerful Scorpio appears on the market. The new PS4 suffered the ignominy of being quickly announced and forgotten just moments before the unveiling of PS4 Pro, the device destined to replace it.
PS4 Pro, though, is a curious beast. It’ll run you $100 more than the slim PS4, it plays the same games and connects to the same online services. Sony has bent over backwards to avoid fragmenting their playerbase, and in theory, PS4 Pro is really designed only for the small minority of consumers with 4K displays in their living rooms. Yet the company must know the psychology of its consumers; it must know that for a large proportion of them, playing a game on a regular PS4 in the knowledge that an upgrade would make it that little bit sharper, that little bit smoother, is like Chinese water torture. That will only be exacerbated by the “Pro” moniker; so much of the market will feel an involuntary twitch of consumer desire at the very notion of their existing hardware being “amateur” or, god help us all, “noob”.
Ultimately, though, Sony’s cautious approach seems to be pitched just right. Those who will find themselves discombobulated by the notion of a needlessly dropped frame or a disappointingly undetailed hair strand, or quietly fuming at being branded a non-Pro, are precisely the audience expected to upgrade anyway. The benefits of PS4 Pro will be sufficient to keep them satisfied; while for pretty much everyone else, for the enormous audience of more casual consumers that Sony must access in the coming years in order to maintain the PS4’s sales trajectory, the benefits of the Pro seem minor enough not to bother with. The stroke of genius, perhaps, is that every upgrading gamer will release a second-hand PS4 into the market – handed off to a younger sibling or cousin, perhaps, or sold to a late upgrader from the last generation. That ought to do wonders to kick-start the PS4’s demographic expansion.
That’s not an easy balance to strike, and while it feels like it’s been skilfully done, only time and market data will tell. Sony enters Winter 2016 in a position of almost unprecedented strength; Nintendo’s NX won’t launch until next spring (and nobody really knows what it is), while Microsoft’s lovely Xbox One S is overshadowed by the plan to entirely outclass it with Scorpio next year. Both PS4 and PS4 Pro will do great guns this year (while PSVR, about which more in a moment, will undoubtedly be supply constrained). That’s not the real test; the test is how this line-up can fare against 2017’s launches, NX and Scorpio. Sony’s cards are now on the table for the next couple of years of the console war.
The other test, of course, is how this evolves. Much has been made of PS4 Pro representing the end of the console model; a final nail in the coffin of the five, seven or even ten year hardware cycle which has defined game consoles since the 1980s. Incremental updates like the PS4 Pro, maintaining compatibility and continuity while keeping pace with hardware advancements, are the future.
Well, perhaps they’re part of the future. Scorpio, with its dramatic upgrade over the Xbox One – so dramatic that the notion of Xbox One remaining fully capable of playing Scorpio titles seems ridiculous – suggests a somewhat different future. Equally, the muted nature of this week’s launch is suggestive of somewhat different thinking. Sony didn’t want to come out all guns blazing, shouting in triumph about its new hardware, because it cannot afford to alienate the 40 million existing owners of PS4 by implying that their consoles are obsolete. That’s a radical difference from console launches of old precisely because the whole purpose of those launches was to declare everything which came before obsolete. “Here, here is the new thing! All singing, all dancing, making the singing and dancing your existing console is capable of look merely like painful hopping and wheezing! Buy the new thing!” You can’t do that with an incremental upgrade; you can’t alienate your existing market in that way. Even smartphone makers have more freedom in their messaging, knowing that their hardware is expected to run on an 18 to 24 month upgrade cycle; consoles, though, you expect to remain “current” for four years, five years or more.
Incremental upgrades, then, lock us to a much more muted kind of message about new hardware. Does anyone really believe, though, that there’s no PS5 in the works? No grand, sweeping upgrade, that will be unveiled with bombast, and fireworks, and promises of walking on water and improbable feats of catering involving bread and fish? Of course that’s in the works. If PS4 Pro points us at something, it’s at the possibility of compatibility across generations in the very broad sense – perhaps, at last, we have entered a generation of consoles whose games will remain playable pretty much forever, or at least for as long as the capricious DRM gods smile upon us. The reverse, however, cannot remain true forever. Console generations will continue to roll past; it’s just that now, perhaps, there will be more mezzanines and landings between the floors.
Notably absent from Sony’s quiet little event was PlayStation VR. Oh, there was a logo, and there were a few words said, but you’d hardly imagine that this was a massive product launch that’s happening in just a few months’ time. Perhaps that’s because the aspect of PS4 Pro Sony is most anxious about is what impact it’s going to have on PSVR, and vice versa. Ever since the first leaks about PS4 Neo, as then was, hit the wild, there’s been a widespread assumption that part of the raison d’être for the new hardware was to drive PSVR headsets – with the existing PS4 simply being underpowered as a VR device.
If that’s not the case, Sony could have done a better job of pointing it out. Throwaway comments about the PS4 Pro yielding better frame rates for VR software sit uncomfortably with the company’s earlier pronouncements about 120Hz rendering for PSVR. Everything we’ve seen and learned about VR thus far suggests that this tech is all about framerate; if you can’t hit a consistent, high frame rate, users start to get severe motion sickness. If it’s the case that PS4 can hit those frame rates consistently, but PS4 Pro allows more visual finesse at the same frame rate, that’s great. If, on the other hand, PS4 is struggling with frame rate and PS4 Pro smoothes things out, that’s a big problem. PSVR cannot afford to be a poor experience on the existing PS4 installed base; if it is to be a success, it needs to work superbly on the 40 million PS4s already in the wild, not just on the fraction of the installed base which will be PS4 Pro.
Perhaps it does. Certainly, the demos of PSVR to date – all presumably running on PS4 standard hardware – have been fine, for the most part. Again, though, the optics are problematic; if you’re launching a VR headset within weeks of launching more powerful hardware, people are going to assume, not unreasonably, that they’re meant to complement each other. If that translates into users of the headset on stock PS4s getting physically ill where users on PS4 Pro do not, that’s a very big problem – and if that’s absolutely not the case, and there are procedures in place to prevent it, Sony needs to be discussing those things candidly and openly. (If it is the case, they might have been best served by doing something radical like only taking PSVR pre-orders alongside PS4 Pro pre-orders; let VR be the USP of PS4 Pro, and avoid the possibility of backlash from underpowered VR entirely.)
With the cards on the table, now we see how the hand plays. PS4 Pro is undoubtedly a shake-up to how the console business works. It’s one step closer to a world where console hardware is essentially a fixed-spec PC in a nice box that’s updated every few years – but we’re not in that world yet, and whether we ever arrive there will be determined by how Sony and its rivals fare in the coming 18 months.
Electronic Arts has one of the deepest back catalogs in the industry, but to date it has steered clear of mining it for new revenue through remastered and HD editions. That’s likely to change soon, according to a Game Informer interview with EA Studios executive VP Patrick Soderlund from last week at Gamescom. When asked if anything in EA’s stance on remasters had evolved in the last year, Soderlund tipped the publisher’s hand.
“What’s changed is that there is proof in the market that people want it, maybe more than there was when we spoke [previously],” Soderlund said. “There were some that did it before, but I think there is even more clear evidence that this is something that people really want. The honest answer is that we are absolutely actively looking at it. I can’t announce anything today, but you can expect us most likely to follow our fellow partners in Activision and other companies that have done this successfully.”
Soderlund added that if EA were to remaster games, it would “have to be careful in choosing the right brands for the right reasons at the right time.” Part of that would be ensuring the company handles the remasters properly instead of just selling quick and dirty ports.
That attitude is a pretty clear pivot from where the company’s thinking was just a year ago. Last October, Peter Moore said EA wasn’t interested in remakes and remasters because “it feels like pushing stuff out because you’ve run out of ideas,” adding, “I don’t know where we find the time to do remakes. We’re a company that just likes to push forward.”
While EA hasn’t been especially aggressive with remastered games, it has produced HD versions of older games like American McGee’s Alice and Crysis, primarily as preorder incentives for sequels in those series.
It’s been more than five years since The NPD Group said it would start including digital data in its monthly reports on the US video game business. In those five years, not only has digital grown, but publishers, analysts, press and more have all thrown shade at NPD, questioning the relevancy of a service that only offers physical sales data in an increasingly digital era. Today, NPD is finally taking that first step to offer a more complete picture of the entire games market as it’s unveiled its digital point-of-sale (POS) sourced service, tracking SKU-level sales data on digital games.
“Following several years of beta testing, the Digital Games Tracking Service will allow participating clients to understand the size and growth of the digital market, and analyze attach rates and other important metrics. Combined with physical data available by NPD, these clients can gain a better understanding of the interplay between the physical and digital sales channels,” the firm explained in a press statement.
“As has been experienced across a wide variety of industries, digital has made a big impact on the overall gaming market, and we’ve risen to meet the demand for a reporting mechanism that tracks those sales in a timely and accurate way,” said Joanne Hageman, President, U.S. Toys & Games, The NPD Group. “With the participation and support of leading publishers – whose cooperation makes this possible – we are excited to launch an industry-first service that addresses a long-standing need.”
The usual report on physical sales data will now be combined with digital sales data and issued on July 21 instead of July 14; it’s expected to follow that cadence (the third data Thursday of the month) moving forward. Initially, NPD has gained the support of major publishers like EA, Activision, Ubisoft, Capcom, Square Enix, Take-Two, Deep Silver and Warner Bros. There are notable exceptions, however, like Bethesda as well as first-party publishers like Microsoft, Sony and Nintendo, but NPD analyst Liam Callahan promised that more publishers would be signing on as the service evolves.
“This has been several years of beta testing and we’ve been doing this in partnership with publishers, shaping the product, encoding the data the way the industry wants to see it. It’s really at the behest of or on the behalf of the publishers that we’re moving forward with this announcement… Really the goal is to bring a new level of transparency never before seen, at least in the US market. This is really the first step. We recognize that there’s still a ways to go, we want more publishers to join, we want to be able to project for people who are not participating. It’s an evolution, it’s something that takes time and our philosophy was really to start – if we waited to have every publisher in the world to sign up it would take forever. We’ll be improving this as time goes on,” he said.
Importantly, NPD will notate next to game titles on the chart that do not include digital data. Callahan wants the service, which is being produced with the assistance of EEDAR, to ultimately be able to project data even for non-participants but NPD isn’t starting with that ability just yet. Instead, it’ll focus on tracking revenue from full-game downloads across Xbox Live, PlayStation Network and Steam. Services like Battle.net and Uplay won’t be included at this point.
“EEDAR is excited to be part of this initiative with NPD and the participating publishers. Tracked digital revenues have seen annual growth of over 100% each year since 2012. In 2016, we’ve already tracked more digital revenue than we saw in 2012 and 2013 combined. This initiative is a great milestone for the industry which will allow publishers to make better business decisions with a broader data set,” added EEDAR CEO Rob Liguori.
Add-on content like DLC and microtransactions will be tracked as well, but that data will only be released to participants, not the media and public. “We’re waiting until that’s a little more fully baked for us to roll that out to the media. We’re doing things in stages,” Callahan said.
It may be frustrating for the media to not have a granular breakdown at the SKU level to see what portion of a game’s sales are digital versus physical, but NPD anticipates more openness as the service evolves.
NPD communications chief David Riley commented, “This is a closed service, the detailed data is only available to participants so if you’re a non-participating publisher you cannot see the data. The fact that we’re allowed to go out with something for the media is a huge step in the right direction. I think as the service matures and as the publishers get used to it and we get more on board, we have more history, we do some benchmarking, we can provide that, but what we wanted to do for multiple reasons, including appeasing the publishers was to combine full-game physical with full-game digital, keep away from the DLC, keep PC games separate because that’s a whole different ball of wax. It’s not comprehensive, but it’s the most comprehensive, we’re the first in the market to track this and we’re sort of very cautious.”
He added, “I expect a good old slamming from the industry press because of the limitations here but what we don’t want to do is open ourselves up by separating it at this time. We’ve just opened the gates right now. Just as you’ve seen a withdrawal [of data] on the physical side – we used to give units – this is sort of going to be the reverse I’m hoping and we can provide more over time.”
Working with the publishers is great, but there are numerous digitally released titles from indies which make up a growing piece of the industry pie. Will the service grow to track those titles too? “Indies are a big part of the industry in terms of their innovation and I think when I talk about our projection methodology and assets at NPD, that is part of how we can track everything, not just for publishers, including indie games and everything that’s outside the panel right now,” Callahan said.
“Some of those smaller games are published through a publisher or first-party so there are ways to get some of those with our publisher-sourced methodology, and otherwise we’re approaching it with developing a robust projection methodology. That’s certainly part of our plan, we’re not going to ignore the indie piece.”
In our previous conversations with NPD, the firm had hinted at possibly working towards the goal of global digital reports. That’s not off the table, but it’s not a focus at the moment. “US is our core competency… our vision is to expand this as much as we can in a way that makes sense for our partners. If that’s global that may be what we pursue. But we also want to do the best job that we can in projecting for the market and recruiting as many publishers as we can,” Callahan concluded.
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.
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.