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.
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.
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.
EA is telling the world that it wants into the third-person action market with an open world game, but it does not appear to be happening any time soon.
EA Studios VP Patrick Söderlund told us in 2015 that EA wanted to expand its portfolio into gigantic action games like Assassin’s Creed or Batman or GTA and CFO Blake Jorgensen said something similar.
“We feel like there’s a huge opportunity for us to continue to invest in new areas of the business like the action genre where we haven’t competed historically. There’s a very ripe opportunity for us to invest in and we’ve been able to bring great talent in to build out that part of the business.”
But according to Game Radar it is not going to happen any time soon. Blake is quoted as saying that the outfit was building an action genre product that’s probably will appear in three or four years.
We can expect something new from EA next year which has not been announced, Blake said. But this will not be anything like the big games which have captured popular attention.
The next installment of first-person shoot-and-crouch game Call of Duty will take place in space, according to reports, and will not be a direct sequel to Ghosts.
Reports from as far and wide as Eurogamer and Shinobi have this as a pretty sure thing, and we do not consider it an unbelievable proposition.
There have been a few Call of Duty games so far and they have all been terrestrial. The canon has strayed into the near future, but has not yet gone the extra mile into the far future.
Going into space opens Call of Duty to aliens and lasers, and could make the game much more like Halo or any other popular punch-space-aliens-in-the-face games.
Call of Duty developer Infinity Ward is mute, and Activision declined to comment when Eurogamer called at its door. The last time we considered Activision was when the firm was expanding his horizons, and its coffers, by acquiring pastel coloured smartphone crack maker King Digital Entertainment, and taking on Candy Crush and mobile gaming to increase its roster.
The internet has taken the space story and run with it. Twitter is the scene of a lot of Buzz Lightyear memes already, while some people just hope that the incoming title has a bit of the charm and playability of earlier titles like Modern Warfare.
Let us all hope that, at the very least, players will not be charged with shooting and securing garish candies in a nightmare pastel world for the sake of the galaxy. Oh, and let’s also hope that Call of Duty retains the dog feature that everyone liked in the last one.
According to Newzoo’s 2016 Global eSports Market Report, this year is expected to be a “pivotal” one for the eSports sector. The firm said that last year’s tally for worldwide eSports revenues came to $325 million, and this year the full eSports economy should grow 43 percent to $463 million; Newzoo said this correlates with an audience of 131 million eSports enthusiasts and another 125 million “occasional viewers who tune in mainly for the big international events.” Overall, Newzoo’s report states that global and local eSports markets should jointly generate $1.1 billion in 2019.
Looking a bit deeper, Newzoo found that investment into and advertising associated with eSports continue to grow at a rapid clip. “This year has been dominated by the amount of investors getting involved in eSports. An increasing amount of traditional media companies have become aware of the value of the eSports sphere and have launched their first eSports initiatives. With these parties getting involved, there will be an increased focus on content and media rights. All major publishers have increased their investment into the space, realizing that convergence of video, live events and the game itself are providing consumers the cross-screen entertainment they desire from their favorite franchises,” Newzoo commented.
Online advertising in particular is the fastest growing revenue segment within eSports, jumping up 99.6 percent on a global scale compared to 2014. North America is expected to lead the charge worldwide.
“In 2016, North America will strengthen its lead in terms of revenues with an anticipated $175 million generated through merchandise, event tickets, sponsorships, online advertising and media rights. A significant part of these revenues flows back to the game publisher, but across all publishers, more money is invested into the eSports economy than is directly recouped by their eSports activities,” said Newzoo’s eSports Analyst, Pieter van den Heuvel.
“China and Korea together will represent 23 percent of global esports revenues, totalling $106 million in 2016. Audience-wise, the situation is different, with Asia contributing 44 percent of global eSports enthusiasts. Growth in this region is, for a large part, fuelled by an explosive uptake in Southeast Asia.”
While eSports is certainly on a good path for growth, game companies would be wise to not get too caught up by the hype. The average annual revenue per eSports enthusiast was $2.83 in 2015 and is expected to grow to $3.53 this year, Newzoo said, but that’s still a factor four lower than a mainstream sport such as basketball, which generates revenues of $15 per fan per year.
Peter Warman, CEO at Newzoo added, “The initial buzz will settle down and the way forward on several key factors, such as regulations, content rights and involvement of traditional media, will become more clear. The collapse of MLG was a reminder that this market still has a long road to maturity and we need to be realistic about the opportunities it provides. In that respect, it is in nobody’s interest that current market estimates differ so strongly. Luckily, when zooming in on the highest market estimates of more than $700 million, the difference is explainable by an in-depth look. This estimate only differs in the revenues generated in Asia (Korea in particular), and by taking betting revenues into account. At Newzoo, we believe betting on eSports should not be mixed into direct eSports revenues as the money does not flow into the eSports economy. Similarly, sports betting is not reported in sports market reports.”
On February 16, Street Fighter V will launch on PlayStation 4 and PC. It will not be launching to Xbox One thanks to an exclusivity deal signed with Sony. And as Capcom director of brand marketing and eSports Matt Dahlgren told GamesIndustry.biz recently, there are a few reasons for that.
Dahlgren called the deal “the largest strategic partnership that fighting games have ever seen,” and said it addressed several problems the publisher has had surrounding its fighting games for years.
“Basically every SKU of a game we released had its own segmented community,” he said. “No one was really able to play together and online leaderboards were always segmented, so it was very difficult to find out who would be the best online and compare everybody across the board.”
Street Fighter V should alleviate that problem as it’s only on two platforms, and gamers on each will be able to play with those on the other. Dahlgren said it will also help salt away problems that stemmed from differences between platforms. For example, the Xbox 360 version of Street Fighter IV had less input lag than the PS3 version. That fraction of a second difference between button press and action on-screen might have been unnoticeable to most casual players, but it was felt by high-level players who know the game down to the last frame of animation.
“There were varying degrees of input lag, so when those players ended up playing each other, it wasn’t necessarily on an equal playing field,” Dahlgren said. “This time around, by standardizing the platform and making everyone play together, there will be a tournament standard and everyone is on an equal playing field.”
Finally, Dahlgren said the deal with Sony will help take Street Fighter to the next level when it comes to eSports. In some ways, it’s a wonder it’s not there already.
“I think fighting games are one of the purest forms of 1v1 competition,” Dahlgren said. “A lot of the other eSports games out there are team-based, and while there’s an appeal to those, there’s something about having a single champion and having that 1v1 showdown that’s just inherently easy for people to understand.”
Street Fighter has a competitive gaming legacy longer than League of Legends or DOTA, but isn’t mentioned in the same breath as those hits on the eSports scene. In some ways, that legacy might have stymied the franchise’s growth in eSports.
“A lot of our community was really built by the fans themselves,” Dahlgren said. “Our tournament scene was built by grassroots tournament organizers, really without the help of Capcom throughout the years. And I would say a lot of those fans have been somewhat defensive [about expanding the game’s appeal to new audiences]. It hasn’t been as inclusive as it could have been. With that said, I do definitely feel a shift in our community. There’s always been a talking point with our hardcore fans as to whether or not Street Fighter is an eSport, and what eSports could do for the scene. Could it potentially hurt it? There’s been all this controversy behind it.”
Even Capcom has shifted stances on how to handle Street Fighter as an eSport.
“In the past, we were actually against partnering up with any sort of corporations or companies out there that were treating eSports more like a business,” Dahlgren said. “And that has to do out of respect for some of our long-term tournament organizers… Our fear was that if we go out and partner up with companies concerned more about making a profit off the scene instead of the values that drive the community, then it could end up stomping out all these tournament organizers who are very passionate and have done so much for our franchise.”
“In the past, we were actually against partnering up with any sort of corporations or companies out there that were treating eSports more like a business.”
So instead of teaming with the MLGs or ESLs of the world, Capcom teamed with Twitch and formed its own Pro Tour in 2014. Local tournament organizers handle the logistics of the shows and retain the rights to their brands, while Capcom provides marketing support and helps with production values.
“I can’t say Capcom wouldn’t partner up with some of the other, more established eSports leagues out there,” Dahlgren said. “I do think there’s a way to make both of them exist, but our priority in the beginning was paying homage to our hardcore fans that helped build the scene, protecting them and allowing them to still have the entrepreneurial spirit to grow their own events. That comes first, before partnering with larger organizations.”
Just as Capcom’s stance toward tournaments has changed to better suit Street Fighter’s growth as an eSport, so too has the business model behind the game. The company has clearly looked at the success of many free-to-play eSports favorites and incorporated elements of them (except the whole “free-to-play” thing) into Street Fighter V. Previously, Capcom would release a core Street Fighter game, followed by annual or bi-annual updates with a handful of new fighters and balancing tweaks. Street Fighter V will have no such “Super” versions, with all new content and tweaks made to the game on a rolling basis.
“We are treating the game now more as a platform and a service, and are going to be continually adding new content post-launch,” Dahlgren said. “This is the first time we’re actually having our own in-game economy and in-game currency. So the more you play the game online, you’re going to generate fight money, and then you can use that fight money to earn DLC content post-launch free of charge, which is a first in our franchise. So essentially we’re looking at an approach that takes the best of both worlds. It’s not too far away from what our players really expect from a SF game, yet we get some of the benefits of continually releasing content post-launch and giving fans more of what they want to increase engagement long-term.”
Even if it’s not quite free-to-play, Street Fighter V may at least be cheaper to play. Dahlgren said that pricey arcade stick peripherals are not as essential for dedicated players as they might have seemed in the past.
“Since Street Fighter comes from an arcade heritage, a lot of people have this general belief that arcade sticks are the premier way of playing,” Dahlgren said. “I think now that the platform choice has moved more towards consoles, pad play has definitely become much more prevalent. I would believe that at launch you’re probably going to have more pad players than you actually have stick players. And in the competitive scene, we’ve seen the rise of a lot of very impressive pad players, which has pretty much shown that Street Fighter is a game that’s not necessarily dictated by the controller you play with; it’s the strategies and tactics you employ. And both of them are essentially on equal playing ground.”
Epic Games said it is investigating issue with Unreal Engine 4 and AMD CPUs.
The problem appears in Squad which is the first big, publicly available game using Epic Games’ Unreal Engine 4. The game was just stuck up on Steam so complaints about the AMD have been somewhat vocal.
The engine appears to create a poor performance on AMD CPUs due to an audio component of the engine. The issue has been reported before but no one took it that seriously. In fact some of theissues here seem to be a communication problem between Squad and Epic.
Squad developer Offworld Industries told Tweaktown that there was little it could do about this besides wait for Epic to fix it and release the fix in an engine patch.
However Epic’s senior marketing manager Dana Cowley said she didn’t even know about the problem until she was contacted by the media.
She said he was getting on the blower with the Squad team to investigate, and see how it could help.
There is a work around being suggested on the blogs which might help. If you navigate to C:UsersAppDataLocalSquadSavedConfigWindowsNoEditor, back up the Engine.ini file then open it with Notepad, find the [Audio] section, change MaxChannels from 128 to 96, 64, or 32, and save.
Electronic Arts is the latest publisher to add a dedicated eSports group to its business, as CEO Andrew Wilson today announced the formation of the EA Competitive Gaming Division.
“As the latest step in our journey to put our players first, this group will enable global eSports competitions in our biggest franchises including FIFA, Madden NFL, Battlefield and more,” Wilson said, adding, “EA’s CGD will seek to build a best-in-class program to centralize our efforts with new events, as well as the infrastructure to bring you the world’s preeminent EA competitive experiences.”
Wilson said the CGD will foster competition and community around EA’s games, creating official tournaments and live broadcasts to entertain millions.
Leading up the new CGD will be Peter Moore, who will step down from his role as chief operating officer of EA at the end of the fiscal year to assume a new role as executive vice president and chief competition officer. Moore is well acquainted with EA’s key competitive gaming franchises like FIFA and Madden; prior to assuming his current role in 2011, Moore spent almost four years as president of EA Sports. An EA representative said the company has not yet announced a successor to Moore in the COO position, with details on those plans to come in the weeks and months ahead.
Moore seems excited to lead a burgeoning field for EA. “As a longtime champion of competitive gaming, bringing this to life at EA is a once-in-a-lifetime opportunity for me,” he said in a tweet. He also told IGN that this is something that EA has been thinking about for some time.
“We’re already very engaged with our development teams around the world to make sure our games have got modes that lend themselves very well to competitive gaming, built-in from the get-go. Not as something that’s put in as an add-on mode or a last-minute afterthought,” he explained.
“Prior to the formation of this division, conversations have been had, not just within the last few weeks but in the last couple years, about how we’ve got games that are coming to market in FY17, FY18, and FY19, and making darn sure that if you’re in a genre that lends itself to competitive gaming, you better have those modes built in.”
Wilson also named Todd Sitrin as the division’s senior vice president and general manager. Sitrin started with the company 14 years ago, leading product marketing at EA Tiburon for projects like Madden NFL and NASCAR Racing. Over the next decade, he worked his way up to senior vice president of marketing for all EA Sports, and has spent the last few years overseeing global marketing and product marketing for EA as a whole.
EA is by no means the only traditional publisher to identify an opportunity in the eSports market. In October, Activision Blizzard established its own eSports division. Unlike EA, Activision Blizzard looked outside its own walls for leadership of the group, tapping former ESPN CEO Steve Bornstein and MLG co-founder Mike Sepso to handle the new division.
Hideo Kojima has left the building. The New Yorker has confirmed that the famous game creator’s last day at Konami has come and gone, with a farewell party attended by colleagues from within and without the country – but not, notably, by Konami’s top brass. Only a couple of months after his latest game, Metal Gear Solid V: The Phantom Pain, clocked up the most commercially successful opening day’s sales of any media product in 2015, Kojima has left a studio facing shutdown – its extraordinary technology effectively abandoned, its talent scattered, seemingly unwanted, by a company whose abusive and aggressive treatment of its staff has now entered the annals of industry legend.
It’s not exaggerating to say that an era came to a close as Kojima walked out the door of the studio that bore his name for the last time. For all of Konami’s the-lady-doth-protest-too-much claims that it’s not abandoning the console market, actions matter far more than PR-moderated words, and shutting down your most famous studio, severing ties with your most successful creator in the process, is an action that shouts from the rooftops. Still, there’s some truth to Konami’s statements; it’s unlikely to abandon the console versions of Winning Eleven / Pro Evolution Soccer, or of Power Pro Baseball, any time soon, though more and more of the firm’s focus will be on the mobile incarnations of those franchises. The big, expensive, risky and crowd-pleasing AAA titles, though? Those are dead in the water. Metal Gear Solid, Silent Hill (whose reincarnation, with acclaimed horror director Guillermo del Toro teaming up with Kojima at the helm, is a casualty of this change of focus), Suikoden, Castlevania, Contra… Any AAA title in those franchises from now on will almost certainly be the result of a licensing deal, not a Konami game.
One can criticise the company endlessly for how this transition has been handled; Konami has shown nigh-on endless disrespect and contempt for its creative staff and, Kojima himself aside, for talented, loyal workers who have stuck by the firm for years if not decades. It richly deserves every brickbat it’s getting for how unprofessionally and unpleasantly it’s dealt with the present situation. It’s much, much harder to criticise the company for the broader strokes of the decisions being made. Mobile games based on F2P models are enormous in Japan, not just with casual players but with the core audience that used to consume console games. The transition to the “mid-core” that mobile companies talk about in western territories is a reality in Japan, and has been for years; impressively deep, complex and involved games boast startling player numbers and vastly higher revenue-per-user figures than most western mobile games could even dream of. Konami, like a lot of other companies, probably expects that western markets will follow the same path, and sees a focus on Japan’s mobile space today as a reasonable long-term strategy that will position it well for tomorrow’s mobile space in the west.
Mobile is the right business to be in if you’re a major publisher in Japan right now. It’s where the audience has gone, it’s where the revenues are coming from, and almost all of the cost of a mobile hit is marketing, not development. Look at this from a business perspective; if you want to develop a game on the scale of Metal Gear Solid V, you have to sink tens of millions of dollars (the oft-cited figure for MGSV is $80 million) into it before it’s even ready to be promoted and sold to consumers. That’s an enormous, terrifying risk profile; while the studio next door is working on mobile games that cost a fraction of that money to get ready for launch, with the bulk of the spend being in marketing and post-launch development, which can be stemmed rapidly if the game is underperforming badly. Sure, mobile games are risky as all hell and nobody really knows what the parameters for success and failure are just yet, but with the time and money taken to make a Metal Gear Solid, you can throw ten, twenty or thirty mobile games at the wall and see which one sticks. The logic is compelling, whether you like the outcome or not.
Here’s what nobody, honestly, wants to hear – that logic isn’t just compelling for Konami. Other Japanese publishers are perhaps being more circumspect about their transitions, but don’t kid yourself; those transitions are happening, and Konami will not be the last of the famous old publishers to excuse itself and slip away from the console market entirely. When Square Enix surveys the tortured, vastly expensive and time-consuming development process of its still-unfinished white elephant Final Fantasy XV, and then looks at the startling success it’s enjoyed with games like Final Fantasy Record Keeper or Heavenstrike Rivals on mobile, what thoughts do you think run through the heads of its executives and managers? Do you think Sega hasn’t noticed that its classic franchises are mostly critically eviscerated when they turn up as AAA console releases, but perform very solidly as mobile titles? Has Namco Bandai, a firm increasingly tightly focused on delivering tie-in videogames for Bandai’s media franchises, not noticed the disparity between costs and earnings on its console games as against its mobile titles? And haven’t all of these, and others besides, looked across from their TGS stands to see the gigantic, expensive, airship-adorned stands of games like mobile RPG GranBlue Fantasy and thought, “we’re in the wrong line of work”?
Kojima isn’t the first significant Japanese developer to walk out of a publisher that no longer wants his kind of game – but he’s the most significant thus far, and he’s certainly not going to be the last. The change that’s sweeping through the Japanese industry now is accelerating as traditional game companies react to the emergence of upstarts grabbing huge slices of market share; DeNA and Gree were only the first wave, followed now by the likes of GungHo, CyGames, Mixi and Colopl. If you’re an executive at a Japanese publisher right now, you probably feel like your company is already behind the curve. You’ve studied plenty of cases in business school in which dominant companies who appeared unassailable ended up disappearing entirely as newcomers took the lion’s share of an emerging market whose importance wasn’t recognised by the old firms until it was too late. You go home every evening (probably around midnight – it’s a Japanese company, after all) and eat your microwave dinner in front of TV shows whose ad breaks are packed with expensive commercials for mobile games from companies that hadn’t even appeared on your radar until a year or two ago, and none from the companies you’d always considered the “key players” in the industry. You’re more than a little bit scared, and you really, really want your company to be up to speed in mobile, like, yesterday – even if that means bulldozing what you’re doing on console in the process.
This is not entirely a bleak picture for fans of console-style games. Japanese mobile games really are pushing more and more towards mid-core and even hardcore experiences which, though the monetisation model may be a little uncomfortable, are very satisfying for most gamers; the evolution of those kinds of games in the coming years will be interesting to watch. Still, it will be a very long time before there’s a mobile Metal Gear Solid or a mobile Silent Hill; some experiences just don’t make sense in the context of mobile gaming, and there is a great deal of justification to the fears of gamers that this kind of game is threatened by the transition we’re seeing right now.
I would offer up two potential silver linings. The first is that not all companies are in a position to break away from console (and PC) development quite as dramatically as Konami has done. Sega, for example, is tied to those markets not least by its significant (and very successful) investments in overseas development studios, many of which have come about under the auspices of the firm’s overseas offices. Square Enix is in a similar position due to its ownership of the old Eidos studios and franchises, along with other western properties. Besides, despite the seemingly permanent state of crisis surrounding Final Fantasy XV, the firm likely recognises that the Final Fantasy franchise requires occasional major, high-profile console releases to keep it relevant, even if much of its profit is found in nostalgic retreads of past glories. Capcom, meanwhile, is deeply wedded to console development – it’s a much smaller company than the others and perhaps more content to stick to what it knows and does well, even if console ends up as a (large) niche market. (Having said that, if a mobile version of Monster Hunter springs to the top of the App Store charts, all bets are probably off.)
“Hideo Kojima left Konami because he wants to make a style of game that doesn’t fit on mobile F2P – and that’s, in the long run, probably a good thing”
The other silver lining is perhaps more substantial and less like cold comfort. Hideo Kojima left Konami because he wants to make a style of game that doesn’t fit on mobile F2P – and that’s, in the long run, probably a good thing. He joins a slow but steady exodus of talent from major Japanese studios over the past five years or more. The kind of games which people like Kojima – deeply involved with and influenced by literature, film and critical theory – want to make don’t fit with publishers terribly well any more, but that doesn’t mean those people have to stop making those games. It just means they have to find a new place to make them and a new way to fund them. Kojima’s non-compete with Konami supposedly ends in a few months and then I suspect we’ll hear more about what he plans; but plenty of former star developers from publishers’ internal studios have ended up creating their own independent studios and funding themselves either through publisher deals or, more recently, through crowdfunding. Konami’s never likely to make another game like Castlevania: Symphony of the Night, but that doesn’t stop Koji Igarashi from putting Bloodstained: Ritual of the Night on Kickstarter. Sega knocked Shenmue on the head, but a combination of Sony and Kickstarter has sent Yu Suzuki back to work on the franchise. Keiji Inafune also combined crowdfunding money with publisher funding for Mighty No. 9. Perhaps the most famous and successful of all breakaways from the traditional publishing world, though, is of a very different kind; Platinum Games, which has worked with many of the world’s top publishers in recent years while retaining its independence, is largely made up of veterans of Capcom’s internal studios.
Whichever of those avenues Kojima ends up following – the project-funding style approach of combining crowdfunding and publisher investment, or the Platinum Games approach of founding a studio and working for multiple publishers – there is no question of him walking away from making the kind of games he loves. Not every developer has his sway, of course, and many will probably end up working on mobile titles regardless of personal preference – but the creation of Japanese-style console and PC games isn’t about to end just because publishers are falling over themselves to transition to mobile. As long as the creators want to make this kind of game, and enough consumers are willing to pay for them (or even to fund their development), there’s a market and its demands will be filled. The words “A Hideo Kojima Game” will never appear on the front of a Konami title again; but they’ll appear somewhere, and that’s what’s truly important in the final analysis.
Over the last few years, competitive gaming has made huge strides, building a massive fanbase, supporting the rise of entire genres of games and attracting vast prize pots for the discipline’s very best. Almost across the board, the phenomenon has also seen its revenues gaining, as new sponsors come on board, including some major household names. Sustaining the rapidity of the growth of eSports is going to be key to its long term success, maintaining momentum and pushing it ever further into the public consciousness.
In order to do that, according to Newzoo, eSports need to learn some lessons from their more traditional athletic counterparts. Right now, the research firm puts a pin in eSports revenues of $2.40 per enthusiast per year, a number which is expected to bring the total revenue for the industry to $275 million for 2015 – a 43 per cent increase on last year. By 2018, the firm expects that per user number to almost double, reaching $4.63.
That’s a decent number, representing very rapid growth, but it pales in comparison to Newzoo’s estimates on the average earning per fan for a sport like Basketball, which represents a $14 per fan revenue – rising to $19 where only the major league NBA is a factor. To catch up to numbers like this is going to take some time, but Newzoo’s research has listed five factors it considers vital to achieving that aim.
Right now, MOBAs are undeniably the king of the eSports scene, and one of the biggest genres in gaming. The king of MOBAs, League of Legends, is the highest earning game in the world, whilst others like Valve’s DOTA 2 are also represent huge audiences and revenues, including the prestigious annual International tournament. Shooters are also still big business here, with Activision Blizzard recently announcing the formation of a new Call of Duty League.
Nonetheless, MOBAs are still the mainstay and if you don’t like them, you’re not going to get too deeply into competitive gaming as a fan. Although their popularity with the athletes is going to make them a difficult genre to shift, Newzoo says that broadening the slate is a key factor to growth.
The major tournaments bring players, and audiences, from all over the world, but it’s often only the very top tier of players who can find themselves a foothold in regular competition. Major territories like the US, South Korea and Europe have some local structure, but again League of Legends stands almost alone in its provision of local infrastructure. By expanding a network of regular leagues and competitions to more countries, eSports stands a much better chance of building a grassroots movement and capturing more fans.
Already a problem very much on the radar of official bodies and players around the world, the introduction of regulation is always a tough transition for any industry. However, when you’re putting up millions of dollars in prize money, you can’t have any grey areas around doping, match fixing and player behaviour at events. These young players are frequently thrust into a very rapid acceleration of lifestyle, fame and responsibility – a heady mixture which can prove to be a damaging influence on many. Just like in other sports, stars need protecting and nurturing – and the competitions careful monitoring – in order for growth to occur without scandal and harm to its stars.
Dishing out the rights to broadcast, promote and profit from eSports is a complex issue. Whilst games like football are worldwide concerns, with media rights a hotly contested and constantly shifting field, nobody owns the games themselves. With eSports, every single aspect of the games being played is a trademark in itself, with its owners understandably keen to protect them. However, with fan promotion such a key part of the sport’s growth, and services like Twitch a massive factor in organic promotion, governing the rights of distribution is only going to become a murkier and more complex business as time goes on. With major TV networks, well used to exclusivity, now starting to show an interest, expect this to become a hot topic.
Conflict between new and old media
That clash of worlds, between the fresh and agile formats of digital user-sourced broadcasting and the old network model is also going to be source of many of its own problems. One or the other, or even both, is going to have to adapt fast for there to be a convivial agreement which betters the industry as a whole. There’s currently considerable pushback from established media against the idea of eSports becoming accepted as a mainstream activity, fuelled in no small part by their audiences themselves, so a lo of attitudes need to change. Add to that the links between these media giants and many of the world’s richest advertisers and you can start to see the problem.
If Hideo Kojima really is on the outs at Konami, he’s at least going out with a bang. The embargo for Metal Gear Solid V: The Phantom Pain coverage hit last night, and the first batch of reviews are glowing.
IGN’s Vince Ingenito gave the game a 10 out of 10, lavishing praise on the way it adapted the series’ stealth-action formula to an open-world environment.
“Right from the moment you’re told to get on your horse and explore the Afghan countryside, Phantom Pain feels intimidating, almost overwhelming in terms of the freedom its open world affords and the number of concepts it expects you to grasp,” Ingenito said. “It’s almost too much, especially given the relative linearity of previous Metal Gears. But what initially appeared to be an overly dense tangle of features to fiddle with instead unraveled into a well-integrated set of meaningful gameplay systems that provided me with a wealth of interesting decisions to make.”
Whether players choose to sneak their way to victory or go in guns blazing, The Phantom Pain affords them a number of avenues to do so. The game’s day/night cycle and changing weather systems can make certain strategies viable (or not) at any given time. At the same time, a private army management meta-game lets players raid battlefields for resources and new recruits, which can then be put to use researching new technologies or using their skills to open up a variety of other strategic alternatives.
However, a perfect score doesn’t mean a perfect game, and Ingenito does identify at least one weak point in the game.
It’s a somewhat surprising criticism of the game, given Metal Gear Solid 4’s penchant for frequent and extended cutscenes larding the action with exposition and plot twists. While The Phantom Pain shows flashes of that approach (Ingenito noted the “spectacular” opening sequence), it ultimately produces a narrative he found “rushed and unsatisfying.”
Obviously, that failing was not enough to tarnish an otherwise fantastic game in Ingenito’s eyes.
“There have certainly been sandbox action games that have given me a bigger world to roam, or more little icons to chase on my minimap, but none have pushed me to plan, adapt, and improvise the way this one does,” he said. “Metal Gear Solid 5: The Phantom Pain doesn’t just respect my intelligence as a player, it expects it of me, putting it in a league that few others occupy.”
GameSpot’s Peter Brown likewise gave the game a 10 and praised its adaptable approach to missions, but enjoyed the story considerably more than his counterpart at IGN.
“After dozens of hours sneaking in the dirt, choking out enemies in silence, and bantering with madmen who wish to cleanse the world, The Phantom Pain delivers an impactful finale befitting the journey that preceded it,” Brown said. “It punches you in the gut and tears open your heart. The high-caliber cutscenes, filled with breathtaking shots and rousing speeches, tease you along the way. Your fight in the vast, beautiful, and dangerous open world gives you a sense of purpose. The story is dished out in morsels, so you’ll have to work for the full meal, but it’s hard to call it ‘work’ when controlling Big Boss feels so good, with so many possibilities at your fingertips.”
Brown said prior knowledge of the series isn’t a prerequisite to enjoying The Phantom Pain, but added that “Fans of the series will find their diligence rewarded in ways that newcomers can’t begin to imagine.” They’ll also, in his estimation, be enjoying the pinnacle of the franchise.
“There has never been a game in the series with such depth to its gameplay, or so much volume in content,” Brown said. “The best elements from the past games are here, and the new open-world gameplay adds more to love on top. When it comes to storytelling, there has never been a Metal Gear game that’s so consistent in tone, daring in subject matter, and so captivating in presentation. The Phantom Pain may be a contender for one of the best action games ever made, but is undoubtedly the best Metal Gear game there is.”
Eurogamer hasn’t published its full review yet, but Matt Wales weighed in with his impressions to date. Like Brown and Ingenito, Wales underscored the narrative approach as a major departure for the series.
“Beyond an outlandish, action-packed opening sequence… The Phantom Pain is a remarkably economical affair, telling its tale of ’80s cold war subterfuge through snatches of radio dialogue (courtesy of Ocelot), and the occasional return to Mother Base between missions,” Wales said. “It’s fascinating to see such restraint from Kojima, a man well known for his self-indulgence and excess, especially considering that The Phantom Pain is likely his Metal Gear swan song.”
On the gameplay side, Wales said The Phantom Pain “isn’t exactly a radical reinvention of the stealth genre,” but acknowledged the increased freedom players are given to accomplish the familiar assortment of objectives.
“Metal Gear Solid 5’s open world might not be vast, varied or stuffed full of things to do, but it’s a place of constant movement,” Wales said. “Night falls, day breaks, sandstorms sweep in, patrols come and go – and this organic sense of life means that missions are never predictable (no matter how often you play them) with tactical possibilities arising all the time. It’s a game of planning and reacting in a world that refuses to stand still, making every minute matter and every success feel earned.”
“The gameplay, storytelling, and protagonists in Metal Gear may shift with each new installment, but Kojima’s ability to surprise and enthrall gamers remains unchanged.”
He also applauded the way The Phantom Pain managed to adopt an open-world design without the genre’s standard glut of padding.
“[E]verything you do feels meaningful and consequential,” Wales said. “Guard posts and roaming patrols aren’t simply there for colour as you traverse the world: one careless move into hostile territory and every single enemy on the map will know you’re coming, with more search parties and increased security radically altering the way a mission unfolds. And while other games tout choice and consequence as a headline feature, the Phantom Pain just gets on with it. Even the smallest action can have unexpected consequences – some significant and others barely perceptible.”
Game Informer’s Joe Juba gave the game a 9.25, currently one of the lowest scores the game has received on Metacritic (where it has a 95 average based on 15 critic reviews). Like some of the above reviewers, Juba was a bit disappointed at The Phantom Pain’s approach to storytelling, but noted that having the narrative take a step in to the background puts the focus on the game’s strongest point, its open-ended gameplay.
“A series can’t survive this long without evolving, and The Phantom Pain is a testament to the importance of taking risks,” Juba said. “An open world, a customizable base, a variable mission structure – these are not traditional aspects of Metal Gear, but they are what makes The Phantom Pain such an exceptional game. The gameplay, storytelling, and protagonists in Metal Gear may shift with each new installment, but Kojima’s ability to surprise and enthrall gamers remains unchanged.”
The PlayStation business has had another phenomenal quarter in the first four months of 2015, selling three million PS4 units and turning in an operating income of $160 million from revenues of $2.365 billion. There are now 25.3 million PlayStation 4 units in the hands of players worldwide – a number achieved in less than two full years.
The console continues to be the company’s fastest seller – outpacing the PS2, which took two years and eight months to reach the 20 million mark. Furthermore, thanks to dropping production costs for PS4 hardware, a 12 per cent increase in sales from the same quarter last year translated to a massive 350 per cent rise in operating income.
A strengthening dollar again hurt Sony’s bottom line, having an estimated impact of 15.6 billion Yen on the revenue total of 288.6 billion Yen, but this was massively outweighed by the increase in sales and the efficiency gains of Sony’s operation. On the strength of the results, Sony has added another 20 billion Yen in operating income to the sector’s full year forecast.
The sales rate of PS4 shows a healthily steady growth in player base, returning to a gradual upswing after a huge blip in Q3, 2014. Sony has upgraded it full year forecast from 16 million units to 16.5 as a result – a figure which would show a substantial increase on 2014’s 14.8 million total. By Sony’s own reckoning, the end of Q1 2016 will see nigh on 40 million of the consoles in homes. Vita sales once again went unmentioned in the report, whilst the gradual decline of PS3 continued.
Hardware wasn’t the only success story. Network, (“Network includes network services relating to game, video, and music content provided by Sony Network Entertainment Inc.”) mad almost as much in revenues, netting around 105.8 billion Yen compared to Hardware’s 129.5 billion. The Other category (Other includes packaged software and peripheral devices) brought in 30.6 billion.
Overall, the corporation turned a healthy profit, banking $676 million in net from sales of nearly $15 billion. Whilst the PlayStation business is very healthy indeed, it’s far from Sony’s only, or even biggest, success story: Devices, Imaging, Financial Services and Music all continue to return a higher operating income.
Last week it was reported how Geeknet Inc. was in the process of being bought out by retailer Hot Topic for $16 a share or $37 million in cash.
However we have just discovered that deal was squashed because Thinkgeek got a better deal from Gamestop.
GameStop offered $20 per share and Hot Topic wanted away. GameStop’s $20 per share deal also includes $37 million in cash and comes out to a total valuation of $140 million.
Geeknet must pay Hot Topic a three percent “break-up fee,” which GameStop has agreed to reimburse.
What this will mean is that ThinkGeek customers can pick up ThinkGeek merchandise in GameStop stores.
The press release also mentions the potential of offering GameStop PowerUp Rewards members “exclusive, unique and cutting edge merchandise related to their favorite entertainment.”
The deal should be concluded by the end of GameStop’s second financial quarter of 2015, which will happen in August.