“Most of the developers behind apps that are found to violate our policies have good intentions and agree to make the necessary changes when notified,” said Todd Brix, general manager for the Windows Store, in a blog post yesterday. “Others have been less receptive, causing us to remove more than 1,500 apps as part of this review so far.”
The Windows Store is the official source of Windows 8′s (and 8.1′s) “Modern,” née “Metro” apps, the touch-based programs designed for tablets and touch-enabled notebooks.
Earlier this year, Brix’s team changed Windows Store apps’ certification — the process under which apps are admitted to the market — to require newly-submitted programs be clearly named, properly categorized and appropriately identified with an icon. Those modifications were made, said Brix, to “better ensure that apps are named and described in a way that doesn’t misrepresent their purpose.”
The same requirements have now been extended to apps already in the store.
The timing of Brix’s blog and Microsoft’s efforts to cleanse the Windows Store was no coincidence: More than a week ago, How-To Geek described its probe of the store in a piece titled ”The Windows Store is a Cesspool of Scams — Why Doesn’t Microsoft Care?”
In the story, How-To Geek pointed out worthless apps, some as expensive as $8.99, that did little more than point users to links for downloading Apple’s iTunes (free), Mozilla’s Firefox (also free) and VideoLAN’s VLC Player (yes, free). The publication also found fake — and paid — versions of Adobe’s Flash Player, Google’s Picasa, King’s Candy Crush Saga and Mojang’s Minecraft.
How-To Geek blamed Microsoft for the scam-app pollution. “Here’s one of the most shocking parts of this. People from Microsoft are actually examining each of these scammy apps, checking their content, and approving them,” the site said, pointing out pertinent parts of Microsoft’s certification process.
The apps How-To Geek fingered have been removed from the Windows Store, presumably as part the 1,500 Brix claimed had been bounced out.
How-To Geek’s story was widely cited by other websites, blogs and publications last week, reigniting charges that the Windows Store was packed with junk.
A quick look at MetroStore Scanner, which tracks each day’s new and updated apps, showed that Brix and his team have their work cut out for them. On Tuesday, according to MetroStore Scanner, 12 copies of the free KMPlayer, a media player owned by a Korean TV streaming company, were published to the Windows Store. However, the dozen KMPlayer copies — all using the transparently copycat name of “KM* 5.1 Player” but each with a different icon — were priced at either $0.99 or $1.99.
The real KMPlayer is currently at version 3.9.
MetroStore Scanner’s tally of the number of apps in the Windows Store was approximately 172,000 as of late Wednesday, meaning that the apps removed so far represented less than 1% of the total in the e-mart.
First there was the iPad at around 10 inches and then there was the iPad Mini that is closer to 8 inches. Now Apple Inc is gearing up to roll out a larger, 12.9-inch version of its once dominant iPad for 2015, with production set to begin in the first quarter of next year, Bloomberg cited people with knowledge of the matter as saying on Tuesday.
The report comes as Apple struggles with declining sales of its tablets, which are faltering as people replace iPads less frequently than expected and larger smartphones made by Samsung Electronics Co Ltd and other rivals have taken a bite out of its sales.
Apple has been working with its suppliers for over a year on larger touch-screen devices, Bloomberg cited the sources as saying.
It is expected to introduce larger versions of its 4-inch iPhone next month, although the company has not publicized plans for its most important device.
Apple was not immediately available for comment.
Amazon.com Inc has acquired live-streaming gamingnetwork Twitch Interactive for about $970 million in cash, reflecting Chief Executive Officer Jeff Bezos’ vision to transform Amazon into an Internet destination beyond its roots in retail operations.
The deal, jointly announced by the two companies, is the largest deal in Amazon’s 20-year history and will help the U.S. e-commerce company vie with Apple Inc and Google Inc in the fast-growing world of online gaming, which accounts for more than 75 percent of all mobile app sales.
The acquisition involves some retention agreements that push the deal over $1 billion, a source close to the deal told Reuters.
“Twitch will further push Amazon into the gaming community while also helping it with video and advertising,” Macquarie Research analyst Ben Schachter said in a note.
Twitch’s format, which lets viewers message players and each other during live play, is garnering interest as one of the fastest-growing segments of digital video streaming, which in turn is attracting more and more advertising dollars.
The deal, expected to close in the second half of the year, is an unusual step for Amazon, which tends to build from within or make smaller acquisitions. Tech rival Google was earlier in talks to buy Twitch, which launched slightly more than three years ago, one person briefed on the deal said.
Neither Amazon nor Twitch would discuss how the deal came together or comment on Google’s interest.
In an interview, Twitch Chief Executive Officer Emmett Shear said the startup contacted Amazon because its deep pockets and ad sales expertise would allow the startup to pursue its strategic objectives more quickly.
“The reason why we reached out to Amazon, the reason I thought working for Amazon, having Twitch being a part of Amazon, would be a great idea for us (because) they would give us the resources to pursue these things that we honestly already want to pursue and they’d let us do it faster,” Shear said.
Along with publishing some rather good games, Ubisoft has quietly been developing another important role over the past few years. Thanks to the outspoken nature of CEO Yves Guillemot and the company’s careful balancing of enthusiasm for new technologies and platforms with a decent degree of financial and management conservatism, Ubisoft has become a bellwether for the publishing industry. Perhaps a difference between French and American business culture plays a role, perhaps not; either way, where other firms equivocate and fall back on meaningless corporate double-speak, Ubisoft and its executives have developed a reputation for speaking openly and giving us an insight into what the publishing industry at large is actually thinking.
When Guillemot pronounces, then, that his company is no longer going to launch “mature” titles on Wii U – Watch_Dogs will be their last such effort, following the disappointing performance of Assassin’s Creed on the platform – you can safely bet that it’s not acting in isolation. What Ubisoft says in the open is almost certainly precisely the strategy being pursued by other publishers as well; they’re just more likely to try and veil it with empty platitudes about what a great partner Nintendo is and how important it is to the industry, effusive corporate praise which, once picked apart, actually carries no commitment of substance to the Wii U platform.
Nor should any such commitment be forthcoming. If mature cross-platform titles aren’t selling on the Wii U, which they are not, then publishers should feel no obligation to continue to develop them for that platform. If this were a two-horse race between rival platform holders, some publishers might be tempted to continue support for the lagging console just in order to keep the front-runner on its toes, but with three strong companies competing, that branch of thought no longer produces fruit. Wii U is on its own, in this regard. Just as Ubisoft will continue to publish Just Dance titles and their ilk on the platform, where they do very well, other publishers will also find casual or kids’ games in their line-ups which suit the Wii U – but support for “mature” or “core” games will disappear in short order. I wouldn’t expect to see many multi-platform core titles on Wii U from 2015 onwards.
This will cause wailing and gnashing of teeth, because wailing and gnashing of teeth is essentially what the games media and the fanboy frenzy is set up to provide. The death knell! The final nail in the coffin! Vultures circle overhead! Once the core-game supply for Wii U completely dries up and other publishers admit to pursuing exactly the same policy as Ubisoft, headline writers will fall over themselves to drag out death-related imagery that would make a teenage goth poet blush. We know this, because it has happened before. Every Nintendo console since the SNES, in fact, has seen its third-party support fall off a cliff at some point in its life cycle. On each occasion, Nintendo’s failure to woo third-parties has been presented as a sign of inevitable doom.
Let’s lay it out, then; Nintendo’s home console platforms are terrible for third parties. They’ve been that way for twenty years and they’re not going to stop being that way any time soon. Honestly, it wouldn’t matter a tuppenny damn if Nintendo unveiled a PS4-beating HD console tomorrow; the business model, the branding and the market for Nintendo consoles is simply poison to the cross-platform “mature” mega-hit franchises like Call of Duty, GTA or Assassin’s Creed.
“Core gamers buy a Nintendo console as a second device because they want access to Nintendo exclusive titles, primarily first-party games”
Purchasers of Nintendo home consoles fall broadly into two categories. You’ve got core gamers who buy a Nintendo console alongside another gaming device – either a Sony or Microsoft console, or a PC; and you’ve got “casual” gamers, including the family and child segments, who buy a Nintendo device because they trust the brand. Neither of those groups is actually all that keen to buy the latest Call of Duty on a Nintendo platform. Core gamers buy a Nintendo console as a second device because they want access to Nintendo exclusive titles, primarily first-party games, but migrate back to their “primary” console to play mature cross-platform titles. Casual gamers don’t want to play mature cross-platform titles anyway. In both cases, they bought a Nintendo device to play Nintendo exclusives.
That’s exactly how Nintendo likes it. Nintendo consoles maintain pretty strong tie ratios – even the Wii, supposedly the dust-gatherer of the last generation, had a healthy software tie ratio – and the lion’s share of the games sold are Nintendo first-party games. It’s not that Nintendo “accidentally” builds consoles like the Wii and Wii U which are underpowered and “weird” compared with the other consoles of their era, then wrings its hands and wonders why third-parties aren’t launching loads of cross-platform games. Nintendo does this deliberately, building consoles that are custom-made to play Nintendo first-party games and which don’t risk being overrun by Call of Duty and its ilk and thus damaging or polluting the brand image which the company has carefully constructed over the past few decades. For Nintendo, the fact that Assassin’s Creed doesn’t sell too well on Wii U is a feature, not a bug, because it means that the company’s own first-party titles remain solidly in the spotlight and the brand image of the console remains Nintendo’s to control.
Of course, that approach begins to look a little less wise when the console in question fails to sell very well, leaving Nintendo’s first-party titles with only a limited audience to address – which is exactly what’s happened with the Wii U. Yet the solution isn’t to throw in the towel and simply copy what Sony does – an enterprise in which Nintendo would almost certainly be doomed to fail. Nintendo needs to find a solution to its current woes which actually suits Nintendo; something which leverages all the things the company is good at and rescues its market position without simply becoming a clone of its rivals or, worse, just another software publisher jostling for attention on the App Store.
The solution, perhaps unsurprisingly for a company with such a long history, may lie in the past. Nintendo doesn’t need or want a swathe of third-party multi-platform manshooters on the Wii U, and that’s absolutely fine. It does, however, need more breadth if not more depth in the Wii U’s software catalogue. The first-party games on the system are excellent, but it needs more of them, addressing more niches; maintaining Nintendo’s excellent quality standards while also exploring more genres, more aesthetics and more audiences.
Once upon a time, Nintendo used to do almost exactly that. It operated “second-party” studios within and outside Japan, most famously Britain’s Rare, which were independent but nestled under the wing of the platform holder, given access to Nintendo’s expertise, assets and finance in return for accepting creative guidance from Kyoto and publishing exclusively on Nintendo platforms. It also built relationships with publishers, mostly in Japan, which guaranteed exclusive titles to Nintendo systems on similar terms.
Some legacies of the second-party system remain. Bayonetta 2, which no other publisher or platform holder would fund, is a compelling Nintendo exclusive now; Hyrule Warriors, released in Japan last week, is a cross-publisher collaboration of a sort which the company should pursue more regularly. Yet these are mere echoes of a system which once guaranteed a strong flow of exclusive, high-quality titles to Nintendo platforms – titles which were different from the offerings on rival platforms, but compelling enough to ensure that gamers felt that they really, really needed a Nintendo console under the TV as well.
A resurrection and reinvigoration of second-party would make enormous sense for Nintendo today. It would look quite different to the system of the past in some regards; indie developers would have to form a big part of it, for example, although one could argue that Sony has already stolen a march on Nintendo in this regard with its policy of working closely with selected indie developers on PS4 and Vita. The scope would have to be as big as it once was if not bigger, though; studios around the globe, not just in Japan, with oversight from Kyoto but also enjoying the trust required both to build excellent new IP and to experiment with old properties. Rebuilding this system would require opening the Nintendo warchest, of course; and it would take time and patience, although both of those are qualities Nintendo has never lacked for. It would, however, do more that just giving Wii U a shot in the arm; it would set Nintendo up with a supply of IP and games that would sustain its platforms for generations to come.
At present, that applies to the Unity Test Tools and the engine’s new graphical user interface system, which was demonstrated in the opening keynote of Unite 2014. The features will be available under the MIT/X11 license, giving users the freedom to “control, customise and extend” their functionality.
The source code for the components will be hosted on BitBucket, and Unity has prepared a guide for any interested open source contributors. The source for the Unity Test Tools is already available, with the GUI to follow.
“Beyond that, we don’t have a concrete plan, but we have a lot of things in the pipeline,” the company said in a statement. “These components will all be isolated from Unity in such a way that you can modify them and use your own modified version with the official public Unity release.
“Although Unity Technologies has been active in the open-source community for quite some time, this is the first time we’ll be opening the source to components of Unity itself.
“We’re excited to see what you do with it.”
Sources are suggesting that Activision is planning to launch an entertainment division that would be responsible for creating movies and TV shows based on Activision intellectual properties. The move might leave many scratching their heads if true since so many others have failed at trying to turn video game IP into gold.
Word is that CEO Bobby Kotick is taking to folks in an effort to secure the right talent to make this happen. Kotick has to be aware that this has not gone well for its competitors, but he apparently thinks that Activision IP is different and they will have no problem giving the people want they want.
Our take on this is that we will wait and see what happens, but it will not be easy to be successful, regardless of the IP that you have in your stable. The bigger question might be is it really worth the money and effort to try and make it work?
According to DFC, 92 per cent of PC game sales in 2013 were digital and it thinks this trend will continue and rise in 2014.
Gamers are starting to favour digital downloads over physical copies of the game, which is not really surprising given that who actually wants to own boxes and DVDs and manuals when all you really need is the game.
DFC Intelligence goes on to add that PC games outsold console games in terms of revenue so it means that channel is not the way gamers are playing. But then again the specs of consoles are well below PCs.
By his own admission, Andrew Wilson still “geeks out” at EA’s press conferences, despite his position as the company’s CEO demanding that he take centre stage. When we meet after the Gamescom media briefing, he enthuses in great detail and at considerable length about a FIFA 15 video demonstrating the capabilities of the new game’s goalkeepers. What that team has accomplished since he ascended to executive level, Wilson says, never fails to make him smile.
And Wilson has spent his first year in charge identifying the ways to spread that enthusiasm to EA’s customers. That hasn’t always resulted in success, of course: with Battlefield 4 the company stumbled once again on the unpredictable landscape of online gaming, and with EA Access it met with resistance from Sony on the grounds of value. In this interview, Wilson discusses both of these issues, and outlines EA’s renewed dedication to listening to its customers and following wherever that might lead.
Q: The last time we spoke you were still with EA Sports, and you’ve had a promotion since then – quite a big one, in fact. You’re coming up on a year as CEO now. Have we started to see evidence of the mark you wanted to make on the company?
AW: I think…no, I know that I didn’t approach this role thinking about making a mark or leaving a legacy. It wasn’t personal in nature. I took on the role because of how I feel about the company. This company has been very good to me and my family over the years, I loved the people I worked with inside the company and I loved the games we made together.
“Financial return is an outcome, but it shouldn’t be the objective. We’ve made a lot of decisions based on that over the last 12 months”
As I worked in the company in a variety of different roles, it became apparent to me that in some areas we’d lost our way a little bit. When I came in [as CEO] I really wanted to bring to the forefront the things that I thought made the company great, things that had delivered for us over the years. That really meant building this foundation of ‘player first’. I get that there are things we have to think about: we’re a big company, we’re a public company, we have shareholders, we have 8,000 people working for us. But all of that is for nothing unless you deliver for your number one constituency: the players. Without that, it’s for nothing.
Q: So the idea that the CEO is stuck trying to serve two masters, the shareholder and the customer, that isn’t how you see it, then?
AW: Financial return is an outcome, but it shouldn’t be the objective. Financial return is what happens when you achieve the right objectives. We’ve made a lot of decisions based on that over the last 12 months. We are engaging with our player-base more regularly, through more platforms to ensure that we’re doing what they want, and to make sure that we’re listening to them when we’re doing something that they don’t want. It’s as much about eliminating what doesn’t inspire or entertain as it is about the stuff that does.
Q: Is that how we should think about the problems that Battlefield 4 faced? You’ve publicly addressed the complaints already, but was that just a consequence of trying to deliver on an ambitious objective?
AW: If I promised you that nothing would ever go wrong [on future projects], that would be very disingenuous of me. The reality is that we come to work every day and challenge ourselves and our teams to do creative and innovative things. What I can say, however, is that living up to that commitment to engagement and action I mentioned before means that we will make tough decisions in service of the player.
Titanfall for Xbox 360 was coming in hot, it needed a few more weeks, and we moved it out of the fiscal year to get a great game. I don’t think we would have done that before. Need for Speed is a franchise we’ve released every year for 17 years – it’s as sure a thing as FIFA. But the team said that they couldn’t do what we challenged them to do in a year. It wasn’t possible, so for the first time in 17 years we decided not to launch a Need For Speed.
More recently, Battlefield: Hardline, moving out of the holiday quarter would traditionally be seen as catastrophic in this industry.
Q: Particularly that franchise. Battlefield 3 and 4 were both holiday releases.
AW: Yes, but it was the feedback. We brought gamers in earlier, we let them play the beta earlier. And the beta was very stable, so we’d solved a bunch of the problems that existed in Battlefield 4. But what people said to us was, ‘This is pretty cool, but we think you should go deeper. We want more out of this.’ So we’ve given the team more time. That’s a tough decision to make, and it has a financial impact in the near-term, but long-term, for the player and the franchise, that’s the right decision.
Q: Do you see EA Access in the same way? You’re the first publisher to pull the trigger on something like this on console. I remember a talk you gave at the Develop conference a few years back, where you held up services like Netflix as a model for the games industry to emulate. Was this idea in your mind all the way back then?
AW: It’s not completely the same, but yes. But, again, I wouldn’t take credit for that programme in its entirety. I’ve been involved in that programme, but we’ve got a great team that’s been looking at challenging the standard by which certain people access products. It’s early days – we launched it yesterday – but for what it’s worth all the positive intent is there. It will evolve, but what we’ve come to understand – and what I believed back then – is that this concept of, ‘I want to give you an amount of money each month that makes sense, and for that I want a bunch of cool stuff’, we want to live up to that.
Does that mean people will stop paying $60 for games? No, but there’s a big part of the population for whom that [EA Access] is the right context, that’s the right way for them to engage with games.
“There’s a big part of the population for whom EA Access is the right context, that’s the right way for them to engage with games”
Q: And potentially it’s a way for people who wouldn’t ordinarily play, say, Madden to get acquainted with the franchise. For a lot of people, FIFA and Battlefield would be enough to justify for the annual fee, and anything else is a bonus.
AW: Yes, but there will be many different types of players. For some people that will be how they want to play all content, for others it will form some part of it. There’ll be others who might use it just to trial games. Again, the price point is low enough that it’s pretty cool as a trial mechanism. We want to build a service that players can use in a way that makes sense to them.
Q: It gives the catalogue longevity, too, which is something that the games industry hasn’t been particularly good at.
AW: EA makes great games. Stuff that we made ten years ago is still good, and so in ten years time the games we’re making now will still be good.
Q: It’s early days, as you point out, but even in the near term are you planning to grow the selection on EA Access, to be additive?
AW: Absolutely. We wanted to launch it at a point where we could put things into the catalogue, into The Vault, and it would have value. We thought that four [games] was the minimum for the price-point, but we want to get to a place where you could play any number of games for that price-point. Over time, the value will just get better and better and better, in much the same way that Netflix does. When I started subscribing to Netflix, there was no House Of Cards, there was no Orange Is The New Black – there is now.
Q: I have been surprised at my preference for buying games digitally in the generation so far. I thought it would take a bit more time.
AW: Convenience is a wonderful thing.
Q: Is that sort of behaviour behind the decision to get EA Access out there now, this year? Is that transition happening faster than you expected?
AW: No. Listen, we – and certainly myself – have matured in the understanding over the years about how people consume content, irrespective of the industry. One of the stats that I hear frequently is that 40 per cent of music is still bought on CD. Now, I haven’t bought a CD in 14 years. I’ve bought vinyl, by the way, a bunch in the last 14 years, so I consume media in different ways through different business models based on what I’m looking for. The way my view has evolved, I’m a bit like you: I haven’t bought a disc for my PS4 or my Xbox One; I click a button and it turns up, and that’s good for me. But that doesn’t mean that everyone wants it the same way. I’ve moved from a belief that there will be one access model to rule them all, to the belief that our objective as a company is to provide access to our entertainment in ways that make sense to the growing population of players.
Q: Services like EA Access to make sense in the context of this generation, which seems to largely about choice, whether that’s variety of games, how you want to buy, how you want communicate with other players. The experience is very open now.
AW: One of the things that we’re learning as we make the digital transformation is that we don’t need to guess what players want any more. For the longest time we had to guess, and the first opportunity to find out whether you got it right or not was when you saw the game on the shelf. Now, we’re getting better at listening. We haven’t always been great listeners, but we’re getting better, and what that’s telling us is that people want choice. They want to be able to choose what’s right for them at a given moment in time. There isn’t a one-size-fits-all any longer. We’ve got to build a core platform, game engines and games that facilitate that.
Q: Are you concerned that Access will alter your customer’s perception of value? FIFA 14 is still a game that can be played all year whether the new one is out or not. That $60 has got to feel like a better decision than before, surely.
“We thought that four games was the minimum for the price-point, but we want to get to a place where you could play any number of games for that price-point”
AW: It doesn’t matter whether you spend a $1, $10 or $100,000, as long as you’re getting value from what you’ve spent then you’ll feel good about that. EA Access feels like tremendous value, and whether you continue to feel good about paying whatever it is for a frontline product comes down to our ability to to deliver value.
The commitment that we’re making to those frontline products is that they will be bigger, more engaging, service oriented, with new and dynamic content every time you log in. People are now playing FIFA and Battlefield all year round. When I started a game would get played for four weeks, and then it was on to the next one. The value that we deliver today, we have games that can be the only thing you play for an entire year.
Q: Certain products have started to feel out of time to me. I won’t mention the name, but I bought a game digitally that cost the same amount as, for example, FIFA, and it took me six or seven hours to finish and that was it. I felt cheated in a way that I wouldn’t have with the exact same game at this point in the last generation.
AW: That understanding of value is really, really important, and I’m trying to push that into the organisation – irrespective of business model. Back in the day it was all about delivering $60 of value; now, I want to deliver $1 of value if you want to spend $1, I want to deliver $10 of value if you want to spend $10. I want to deliver value on your investment and on your investment of time. As you get older you realise that time is the most important resource. Part of your issue with that other game is that it took six hours, and you didn’t feel the value returned. We should think about the investment of money, but also the investment of time.
Q: You’ve mentioned the value of EA Access several times, and obviously Sony came out and disagreed on that point. For now, at least, Access won’t be available to PlayStation customers. Was that disappointing, particularly with the reason Sony gave?
AW: What I can say is that we launched it yesterday. We believed when we launched it that it was great value, and gamers, for the most part, have fed back that it’s great value. We’re going to continue to put things into that service that make it even better value. It will evolve and go through lots of permutations over time as we listen and learn from players who engage with it. My hope is that we can deliver that kind of service to many millions of players for years to come.
Previous owner Avago bought LSI for $6.6bn earlier this year. During 2014, it has been breaking up and divesting divisions of the company to shore up its core semiconductor business. Earlier this year, Avago sold LSI’s solid-state disk (SSD) drive division to Seagate for $450m.
Intel intends to use the Axxia purchase to boost its wireless network offering into an intelligent flexible network based on common standards, according to a blog post from the Intel Intelligent Systems Group.
“In the same way that Intel helped to transform the data center into a business enabler, Intel can help transform networking by providing new technologies and a portfolio of solutions that allow for new innovative services and efficient scaling of a more flexible, cost effective network infrastructure,” said Rose Schooler, GM of the division.
The purchase marks the continuation of Intel’s diversification of its core processor chip business, which continues to be its cash cow with profits of $2.8bn in the second quarter.
Intel’s vision of the future is for an office without wires that will rely on wireless display connectivity, wireless docking and wireless charging.
This is at odds with the announcement yesterday that the USB C standard for superfast wired transfers has been finalised.
Both firms’ boards of directors have approved the deal, which is expected to become final in the fourth quarter.
For more information about mobility, visit the Intel IT Center.
Social and mobile game company King Digital Entertainment Plc lowered its 2014 forecast after reporting lower-than-expected second-quarter revenue on Tuesday, as gamers continued to abandon its “Candy Crush Saga” game.
King also announced a $150 million special dividend, or 46.9 cents per share, payable to shareholders of record on Sept. 30. Its shares, however, slipped 22 percent in after-hours trading after closing at $18.20 on the New York Stock Exchange.
The company, which went public in March, said it has reduced its 2014 forecast and expects gross bookings in the range of $2.25 billion to $2.35 billion from its previous estimate of $2.55 billion to $2.65 billion.
“We have seen a step down in monetization in the latter part of Q2 and so we have adapted the view forward,” Chief Executive Officer Riccardo Zacconi said in an interview.
Investors have worried that unless King delivers a set of consistent and long-lasting hits, apart from “Candy Crush Saga,” it might suffer the same fate as “Farmville” maker Zynga Inc and “Angry Birds” developer Rovio Corp, which are struggling to retain players.
King’s second quarter gross bookings, an indicator of future revenue, was $611 million, up 27 percent from the year-ago period, but less than the last quarter when it reported gross bookings of $641.1 million.
King has yet to see its other titles such as “Farm Heroes Saga” and “Bubble Witch 2 Saga” fully offset user losses of its “Candy Crush Saga” puzzler game that accounted for about 60 percent of second-quarter gross bookings.
“We expect ‘Candy Crush’ will decline, but have a very strong tail and a long tail,” Chief Financial Officer Hope Cochran said in an interview. “We will be launching the ‘Candy Crush’ sister title in Q4, which will give more longevity to that title.”
Word is circulating that the new BioWare IP which is rumored to be called Shadow Realms could be on EA’s agenda to finally be revealed at Gamescom. While rumors have been making the rounds for some time, so far EA has been mum about its existence.
We do know that EA’s is planning to provide more details on FIFA 15, Battlefield: Hardline, The Sims 4, Dragon Age Inquisition, and Dawngate at its Gamescom presser which will take place on Wednesday, August 13th at 9am BST.
While EA might reveal Shadow Realms, it is likely that BioWare has it on the release schedule for late 2015 at the soonest, but it is possible that it could even be a 2016 title. Let’s hope EA puts some of these rumors to bed and tells us what Shadow Realms is all about.
Last week Zynga reported results for the quarter that ended June 30, revealing declining revenues and deepening losses. In the process, the company also lowered its outlook for the full year.
For the second quarter, Zynga posted revenues of $153.2 million, down 34 percent year-over-year. The company also saw a net loss of $62.5 million, compared to the previous second quarter’s loss of $15.8 million. On a non-GAAP basis, Zynga reported bookings down almost 7 percent to $175.1 million, with a non-GAAP net income of $2.8 million, as opposed to the $6.1 million non-GAAP net loss it reported for last year’s second quarter.
“While our quarterly financial results were in line with our guidance range, we aspire to do better and improve execution across our business,” Zynga CEO Don Mattrick said. “Inside Zynga, we recognize that our products have the potential to live for multiple years and with nurturing, refinement and investment, they can grow and scale. We are purposefully competing, and while we would like to be further along, we believe we are making the right decisions to grow our business and unlock long term shareholder value.”
The results convinced Zynga to downgrade its outlook for the full year, as it now projects bookings of $695-$725 million, down from $770-$810 million. Meanwhile, Zynga expects its full-year non-GAAP earnings per share to be flat to down a penny, compared to the previous guidance of up one to three cents.
On the plus side, Zynga’s daily active users, monthly active users, monthly unique payers, and monthly unique users were all up quarter-over-quarter. However, all of those metrics were down significantly year-over-year.
Zynga shares were down nearly 8 percent as of this writing to $2.69 in after-hours trading.
Activision Blizzard reported its financial results for the quarter ended June 30 today, revealing an unprecedented reliance on digital revenues.
The publisher reported revenues of $970 million in sales on a GAAP basis, 49 percent of which came from digital channels. On a non-GAAP basis (excluding the impact of changes in deferred revenues), the digital percentage was actually 73 percent of the company’s $658 million in sales. Activision attributed the digital strength to Blizzard’s lineup of titles (World of Warcraft, Hearthstone, and Diablo III), combined with digital sales for Call of Duty.
However, not all of those digital sales drivers posted strong numbers for the quarter. World of Warcraft in particular lost about 800,000 subscribers over the period, and as of the end of June was down to a paying player base of 6.8 million gamers. However, Activision Blizzard characterized this decline as a “seasonal” dip in advance of the next expansion, Warlords of Draenor, which is set to launch later this year. The publisher likened the downturn to the subscriber losses that happened in 2012 ahead of the Mists of Panderia launch.
On a GAAP basis, Activision Blizzard revenues were down nearly 8 percent, with net income down 37 percent to $204 million. However, the publisher still beat its previous guidance. On a non-GAAP basis, revenues were up about 10 percent to $658 million, while non-GAAP net income was reported at $45 million, down 50 percent year-over-year.
The quarter’s performance gave Activision Blizzard enough confidence to update its previous guidance for the full year. For calendar year 2014, the publisher had previously forecast total GAAP revenues of $4.22 billion, but moved that up to $4.24 billion today. The company also projected earnings per share of $0.91, up from $0.89.
Whether you think it’s a fad or the next big thing, there’s no denying that the return of virtual reality, this time backed up by competent technology and plausible price-points, has caught the imagination of developers and their customers alike. Projects for Sony’s Morpheus and the Oculus Rift are popping up everywhere, from the modest to the monumental.
As of yet, though, none of the major publishers have publicly committed much to the new platforms, leaving it to smaller studios to test the waters of what could potentially form an entirely new frontier for games. Many of those smaller studios are changing their models and work-methods entirely to focus on the new technology, preparing to hit the ground running once consumers are finally able to get their hands on the headsets.
One of those studios is Patrick O’Luanaigh’s nDreams. A studio which has always enjoyed a broad remit, nDreams now has “around five [VR] projects on the go”, including forthcoming title The Assembly: a 3D VR adventure game which will see players investigating a ground-breaking scientific organisation which has started to push some ethical boundaries.
“We decided that an adventure game would make sense because we don’t have the budget to draw tons of environments that you run through at top speed,” Patrick tells me. “Adventure games work well because we’ve found that, when people play with VR, they want to really look around and explore. They want to examine the walls, everything, in a way you might not in a FPS.
“The game is split into sections of about 10-15 minutes long, which we thought makes sense for VR. We still don’t know what the final consumer versions will be like, but 10-15 minutes seems sensible. People can either do a chapter then take a break, or they can play through the entire game.
“We spent around six months prototyping lots of experiments with VR. What happens when your avatar wears glasses? What would it be like if it’s cold and you have frosty breath? What about different sized characters? That tested really nicely – Madeline is 5’1″ and Joel is 6 foot and you really notice that. You notice the breathing, the speed they walk at, the perspective. It’s all very different. You feel like you’re playing those roles.
“We’ve also got lots of specific things for VR, microscopes, binoculars, night vision goggles, things like that. They work really well. We’ve also got plenty of puzzles and other bits like vertigo and fear sections that we think are great for VR, so it’s a real medley.”
The Assembly is a definite step up for the developer in terms of scope and ambition, so I ask O’Luanaigh if the resource costs were pushed up even further by the technology they’re working with. In short, is making a VR game more expensive?
“I don’t know, honestly,” he admits. “It’s probably slightly more for VR, but there’s not a lot of difference. We’ve kind of picked our battle here and chosen a game we think would be great for VR, but one that we can also afford to make. This seemed like the right genre and approach. We’re taking influence from games like Gone Home and Dear Esther – with more puzzles, but still about exploring a great environment. I guess if we’d just done it as a Steam game it might have been a bit cheaper, but not a big difference.
The Shahid Effect: Sony’s indie push & VR
Being PC-based, the Oculus Rift has a clear advantage in attracting indie developers: working on an open platform with little or no restriction. That said, Sony has made a very strong argument to small studios this generation, something it will need to continue if it wants to recruit the most exciting VR ideas. O’Luanaigh agrees, and says that there’s no need for concern on that front.
“Sony has been fantastic,” he says, enthusiastically. “We’re very lucky in that we’ve been working on Home for a number of years, so we have a good relationship with Sony. Our account manager happens to be the evangelist for Morpheus as well, so they’ve been great. They’ve been very supportive.
“We saw the Morpheus very early, it was one of the things that persuaded us to pivot away from what we were doing and spend so much time and money on VR. They’ve been really open, really helpful. I’ve got nothing but positive things to say about Sony. I can’t wait to see the final hardware that’s going to launch to consumers.”
“It’s more about the design, doing things the right way. There are a lot of ways you can mess up VR really easily. We’ve figured out what works and what doesn’t and designed the game with that in mind. It’s working really nicely.”
The Assembly is due for release on both the Oculus Rift and Sony’s Morpheus headset, currently the two mindshare leaders of virtual reality tech. Whilst neither is likely to admit it, each has a vested interest in the success of the other – a reason which was floated to explain Valve passing on some of its own VR research to Oculus last year: if the tech is to succeed it needs to attract developers. To do that, a rough ‘gold standard’ needs to be established, giving developers a technological target to aim at for cross-platform games. Having used both the Oculus and Morpheus and found them to be roughly equivalent, I’m interested to know if O’Luanaigh sees parity in the two visors.
“They are very, very similar, technology-wise,” he confirms. “Obviously with Oculus being on PC it’s a lot more open, there’s more freedom to mess around, but it’s also easier for people to just stick stuff out, to make bad VR. That’s one of the big risks – it’s very easy make people feel ill. You have to have good software as well as hardware. I think it’s easier for Sony to control that, because it’s a closed platform. They can say, do this, do that; to make sure people don’t do stupid stuff. I suspect that Oculus will do something similar, but obviously it’s open, so people can put what they want up online.
“In terms of specs, though, they’re really very similar. We’re creating this game for both and there’s not a big difference. There are a few little things involved in supporting the PS4: the Dualshock and some of the ways that PSN works, but by and large they’re very similar.”
Moving away from comfortable ground is an essential part of growing almost any company, but when you’re relying on a third party, such as a platform holder, for your success, there’s an additional risk. nDreams must be confident about the future of virtual reality to put such stake in it, so I ask Patrick if there’s a sales point when they’ll breathe a little more easily.
“We’ve kind of come at it the other way,” he counters. “We believe it will work. We’ve got financial models and projections but it’s all a bit finger-in-the-air, it’s very hard to know. We’re committed to doing it though, we’ve got a lot of launch titles and we’re going to be pushing and growing those. We’re lucky in that we’re financially secure enough to do that without too much stress.
“We’ve been looking at things like previous install bases of hardware on consoles. If you look at the Kinect install base, which was amazing, really – something like 35-40 per cent on the 360 – we’ve made projections on a conservative install base over time. I actually think that it’s going to be better than that, given the excitement around VR and the customer reaction when they see it, but we’re being fairly conservative. With Oculus they’ve spoken about trying to sell a million, by a set point. We’ve been working along those lines. Again, we think it’s going to do really well.
“There’s going to be other headsets out there as well, that haven’t been announced, we think those are going to be very exciting. There’s not going to just be two headsets, there’ll be a number of things over the next few years. We’re going to try and work out as best we can what we think they can sell, but we want to be there at launch with products so we can build and learn what people like and don’t like.
“It’s definitely going to be more of a core audience at launch, but I think Facebook’s acquisition of Oculus means that it’s going to be a bit cheaper than it would have been. I think they can afford to give it away at cost, which is brilliant. But it’s really hard to put a finger on how much that market is going to be worth. We think it’s going to be a couple of billion within two years, but we’ll see. We may be massively over-egging, or hugely under-estimating it. What’s clear is that there’s massive potential here, it could really explode. When you get a great VR experience it’s really special.
“I was at E3 playing Alien Isolation on Oculus and, although I’m slightly embarrassed to admit it, when it came to the end I ripped my headset off because I was so scared. You really feel like the Alien is there and actually attacking you. I’ve never done that with Dead Space or Resident Evil or anything. It really heightens your emotions.”
I can attest to just how absorbing that experience can be, having lost myself in the Morpheus demo at GDC in March. Even surrounded by other gawking journalists and nervous PR, dropping that helmet on was, in many sense, completely akin to teleportation. That demonstration wasn’t exactly a road-test, though. These were first-party, highly polished demonstrations designed to show off the potential for the new technology in a short, well-controlled session. Had my first experience been a shoddy, half-finished or poorly-executed demo instead, I might never have been interested at all. For O’Luanaigh, the responsibility for audience growth is firmly on the shoulders of developers.
“For me, it’s really important,” he tells me when I ask whether VR needs to get it right this time around. “I’m utterly convinced that VR is now a technology that’s caught up to an amazing idea and can make it work. The only thing that can ruin that is dreadful games. It’s easy to make a rubbish VR game with a bad framerate that takes control of the camera and does stupid things. That’s the worst thing that could happen, and I think that both Oculus and Sony get that. I think everyone entering the VR space gets it, but we just need to keep an eye on it.
“At least one or two of the projects we’re working on are non-traditional games, it’s definitely quite different. You’ll see VR spread into different areas over the next few years”
“I hope that the press plays its part as well and makes sure that, if there’s one rogue VR game that’s snuck out and it’s dreadful, that they won’t use that to argue that VR is awful.”
Good games might be the things that get people queuing in the shops, or, more likely, clicking online, but there are clear possibilities for virtual reality which fall well outside our sphere, particularly for Oculus’ Rift. Will nDreams being dipping a toe in those waters?
“At least one or two of the projects we’re working on are non-traditional games, it’s definitely quite different. You’ll see VR spread into different areas over the next few years, although it’ll definitely start with games. Oculus aren’t showing off Facebook social pop-up sims, they’re showing off great games.
“I don’t think Facebook has changed that but I think you’ll notice them start to add stuff in over the next few years. You might see spaces where people can hang out with their friends, stuff like that. If you’ve ever read Snowcrash, I think that sort of thing is why Facebook bought Oculus. They’ve got more money now, but it’s the same people with the same values. It’s very cool to be rude about Facebook, but I think a lot of the people who were being rude about Facebook when it bought Oculus were doing it on Facebook, which is pretty ironic.”
The announcement comes as wireless carriers attempt to shift data-hungry subscribers onto tiered plans, which charge customers for individual data packages.
Verizon will slow services for the top 5 percent of data users who are on unlimited plans in places where the network is experiencing high demand, the company announced on its website.
The policy will impact customers who consume more than 4.7 gigabytes in a single billing period who are on unlimited plans and who have fulfilled their minimum contract terms and are subscribing to service on a month-to-month basis.
Users might experience slower speeds when streaming high-definition video or during real-time online gaming, the company said.
Customers on the company’s tiered data plans will not be affected.
The policy is currently in effect for unlimited subscribers on the 3G network, but will be expanded to its 4G, higher speed network in October.
Verizon stopped offering unlimited data plans in 2012.