Among the top 13 LCD display brands worldwide, the share of UHD TV shipments reached just 5% in May, up from 4% in April, 3% in March and 2% in February, according to IHS.
While UHD TV share has grown by 1 percentage point for each of the last three months, growth hasn’t budged much since September, when the market was already at the 2% level.
The top 13 UHD TV brands account for more than 75% of total LCD TV shipments and represent more than 90% of overall UHD LCD TV shipments.
UHD TV shipments this year are projected to grow to 14.5 million units, up from just 2 million in 2013, as global brands deploy aggressive marketing efforts and roll out new models, according to IHS.
Flat-panel televisions overall amounted to 18.1 million units in May, down 6.4% from April but up 7% from the same time a year ago. Of the total, LCD TVs — including UHD sets – accounted for 17.4 million units, with plasma TVs making up the remainder at 708,000 units.
“Growth in this year’s global UHD TV market is a reflection of plans among TV makers, especially the Chinese, to increase sales. And expansion in UHD TV volume is mostly scheduled for the second half this year,” Jusy Hong, an IHS principal analyst for consumer devices, said in a statement.
UHD TVs have much higher resolution than conventional HD sets, but the dazzling images come at a steep trade-off: their prices can be several times those of LCD TVs.
According to the Consumer Electronics Association, which hosts the CES conference, buyers still pay north of $50,000 for a 105-in. UHD-TV, while the average price for a 55-in. UHD-TV this year will be around $2,750. By 2017, that price is expected to drop to $1,850.
That compares to 1080p high-definition TVs (HDTVs) today that run anywhere from $700 to around $1,700 for a 55-in. model.
The new generation of consoles and booming category of free-to-play PC games won’t be enough to keep the market growing indefinitely. According to a Juniper Research report, the market will soon turn south, falling from $46.5 billion worldwide this year to $41 billion in 2019.
Despite that 12 percent drop, the PC and console segment will still account for more than half of all gaming revenues through 2019. Additionally, Juniper said software sales on PC and console “will remain relatively healthy,” with PC revenues topping those of its console counterparts.
The PC & Console Games: Trends, Opportunities, and Vendor Strategies 2014-2019 report also predicts the console cycle to continue as in generations past. That means the new systems will spark sales in the short-term, with growth slowing and then turning negative as the new platforms age. Juniper also expects another generation of consoles likely arriving around 2019, with the new platforms having a similar lifespan to the their predecessors.
Dedicated gaming handhelds will continue to play a part in the industry, with Juniper penciling them in for about $2.2 billion in revenues in 2019. (Handhelds were not included in the console/PC figures above.) And while cloud gaming is going to receive a boost this year with the launch of PlayStation Now, it won’t upend the status quo just yet. Juniper expects the cloud gaming market to rise from $281 million this year to $1 billion by 2019.
Quantum Break is said to feature television segments that will be part of the main game with players unlocking new segments at the end of some gameplay segments. The live action television segments can we watched right away or they can be viewed later on mobile devices such as a smart phone or tablet.
The run here is that originally we assumed that these live action segments to be integrated with the game were being produced by Remedy, but word is now that this may not actually be the case and that the Microsoft Xbox Entertainment Studios division might actually be responsible for delivering this content.
So far, no one at Microsoft or Remedy will confirm what if any the impact of closing Xbox Entertainment Studios may have on the Quantum Break project if any. Sources we have spoken with seem to think that the recording of all of this live action segments is already done and finished. So there is nothing to worry about, but other think that it will be difficult to scrap Quantum Break this far into the development, but a redesign that does not use the television segments might be likely.
The electronics giant’s FeliCa Networks subsidiary is modifying its FeliCa contactless card technology, widely used in Japan for public transit and e-money payments, for wearables.
The company is designing a low-power chip that could be used in wearables such as smartwatches and smart bands, giving them contactless e-money or transit functions or access to restricted areas.
That would allow users to board a train or bus simply by waving a smartwatch near a chip reader, eliminating the need for a separate smart card.
“The wearables field is just beginning so we’re considering what users will want with this functionality as well as what degree of compactness and power savings it will have,” a spokeswoman for FeliCa Networks said.
The company is also developing FeliCa smartcards with small LCD screens and a touch interface that can display information when users swipe their fingers across the cards.
This “interactive FeliCa card,” still in the prototype stage, can show the remaining balance of money stored in the card, for instance, or payment history.
While about 45 million Android smartphones in Japan have had the FeliCa chip since 2012, iPhones do not support it. The LCD smart card could link with iPhones via Bluetooth so users could check their balances on their phones.
FeliCa Networks hopes to introduce the LCD smartcards in the year to April 2016.
One in two people in Japan has a mobile phone with NFC FeliCa phone functions, according to FeliCa Networks.
The company has shipped more than 236 million of its Mobile FeliCa chips as of December 2013, while Suica, a FeliCa-based smartcard for railways in the Tokyo area, can be used in 230,000 stores.
To hear the likes of Electronic Arts and Gameloft tell it, premium apps are all but a relic of the past, the obsolete progenitor to mobile’s free-to-play future. But some smaller developers have found that future isn’t all it’s made out to be, and have been finding more success back on the premium side of the fence.
Kitfox Games and Double Stallion, two Montreal studios from Jason Della Rocca’s Execution Labs incubator, launched Shattered Planet and Big Action Mega Fight, respectively, on mobile in the last year. However, both titles struggled to rake in revenue, and the studios have since released more successful premium versions of the two. Kitfox’s Tanya X. Short and Double Stallion’s Nicolas Barrière-Kucharski spoke with GamesIndustry International this week to discuss their forays into free-to-play, and why more traditional business models worked better for them.
In Double Stallion’s case, part of the problem was that Big Action Mega Fight proved an awkward fit for the free-to-play format.
“We picked a genre, fighting, that was very content-driven,” Barrière-Kucharski said. “It was really very arduous to keep up and engage the audience with new levels, new enemies, and new types of content. We couldn’t compete at our size and budget with other, more established free-to-play studios and games.”
Beyond that, the genre may have been a poor fit for the audience. Barrière-Kucharski said that the people who would appreciate Big Action Mega Fight’s skill-based gameplay and faithful take on the beat-’em-up genre simply weren’t the same people interested in free-to-play games.
“I think the overlap between audiences was just too small to sustain a thriving community around the game,” Barrière-Kucharski said.
With Shattered Planet, Short said genre wasn’t a problem. She thinks the games-as-a-service model is actually a perfect fit for roguelikes like Shattered Planet, where a few new items and systems can exponentially increase the potential content for players to experience. However, Shattered Planet still didn’t fit the free-to-play mold for a few reasons.
“Free-to-play is not always suitable to single-player games,” Short said. “I think it’s best suited to multiplayer games in which it being free is actually of value to players because they can have more people to play with. That’s one philosophy we’ve developed, that if we ever do free-to-play again, we would only do it for multiplayer.”
On top of that, Shattered Planet was designed to be a tough game for players. But Short said in the free-to-play business model, difficulty can be “a dangerous thing.”
“We made a difficult game, and the fact that it was free made people suspicious, and rightfully so,” Short said. “I think they had every right to be a little bit paranoid about why the game was difficult. And in a business model where difficulty generally does often make people spend more, I think a designer’s hands are tied as to how and when a game can be difficult and when it’s ethical. So we felt a lot more comfortable about making a premium game, and me as the designer, I was happier because we could say sincerely that it’s exactly as difficult as we wanted it to be and you can’t say it was greedy or whatever.
Both games have found more success since they were released as premium versions. Big Action Mega Fight was re-launched last month as a $3 app ($2 during a first-week sale); those who downloaded the free-to-play version received the upgrade to the premium version as a free title update. Even though the free version of the game was downloaded about 400,000 times, Barrière-Kucharski said the revenues from Big Action Mega Fight’s first week as a paid app topped the total lifetime income from the free-to-play version since its November debut. To date the company has sold about 3,600 copies of Big Action Mega Fight on iOS, Android, Amazon Fire, and Ouya.
Kitfox took a different approach to premium the switch, continuing to run the free-to-play Shattered Planet mobile app alone, but also releasing a premium PC version on Steam with a $15 price tag and no monetization beyond that. The results were similarly positive, as Short said the studio made as much on Steam in one day as it had on mobile in two months. In its first week, Shattered Planet sold 2,500 copies on Steam. Short is happy to see the game bringing in more money, but she confessed to being a little bit torn on the trade-off it required.
“It really was great seeing that we had 300,000 downloads on mobile,” Short said. “We had 300,000 people play Shattered Planet on iOS and Android, and that’s amazing. Sure, it looks like we’re going to make two to five to 10 times more money on Steam, but it’s only going to be 1 percent of the amount of people that could see it if we tried to release it free, in theory… It’s a little bit sad that you monetize better with fewer people. When you’re trying to get your brand and your name out there, it is sad we couldn’t have another few hundred thousand people.”
Beyond the trade-off of settling for a smaller but more supportive audience, Kitfox has encountered some negative effects of releasing Shattered Planet as a free-to-play mobile title and then as a PC premium game.
“For us, a lot of people remained skeptical of the quality of the game if they knew the mobile version existed,” Short said. “I don’t think that really has that much to do with free-to-play and more to do with platform snobbery. It’s just kind of a general feeling of console and PC gamers that if a game was ever on mobile, it couldn’t possibly be as feature-rich or as deep, as strategic or anything like that.”
On top of that, there was some customer confusion over the game and its business model. Short said the game’s forums on Steam had some angry users saying they wouldn’t buy the game because it had in-app purchases (which it didn’t). Although the developers were able to post in the threads and clear things up, that sort of inconsistency has convinced them that if they ever do return to mobile platforms, they will stick to a free demo or companion app rather than something monetized.
“It’s just so dominated by giant players,” Short said of the mobile scene. “It’s such a completely different market that I think you really have to focus on it, and that’s not my team’s expertise. For us, we’re definitely going to be focus on PC and console; I think that’s where our talents are.”
Barrière-Kucharski agreed, saying that even if a niche audience is willing to pay for a certain experience, there just aren’t good ways for developers to connect to that audience.
“It’s really hard to be found or be discovered by players,” Barrière-Kucharski said. “I’m really looking forward to all the curation issues that are going to be tackled in the next year or so on iOS 8 and the Steam Greenlight update.”
But even if those initiatives follow through on their promises of improving discoverability, Barrière-Kucharski worries that the problem could still get worse as the gains made won’t be enough to offset the flood of new developers entering the field. Short also saw discoverability as a key problem facing developers right now, but stressed that finding a solution is in the best interests of the platform holders.
“Whatever platform figures out discoverability first will have a huge advantage because there are these thousands of developers that as soon as they hear there is any discoverability, that’s where they’re going to flood for sure,” Short said. “So it is almost a race at the moment between Steam and Apple and Google.”
There’s a popular narrative about Japan’s game development industry: it’s an industry in trouble, lagging behind the West and running out of ideas. If any Japanese developer wants to get themselves splashed into the headlines, all they need do is trot out a soundbite disparaging their own industry; in a world of click bait headlines, the fall of Japanese development is a sure-fire winner. The apparent decline of Japan’s game developers is linked to a secondary narrative as well, namely the decline of Japan’s internal market for videogames. Once the undisputed gaming capital of the world, Japan seems to be falling out of love with the pastime – at least on consoles, and at least according to some rather unusual readings of the data.
There’s a nugget of truth to both of these stories; just enough to make them worth considering, yet certainly not enough to prevent the majority of reporting and discussion on them from being a torrent of absolute nonsense. Japanese game development is somewhat troubled, but it’s troubled by exactly the same factors that are giving sleepless nights to Western game developers – skyrocketing AAA budgets, new business models, a diversification of platforms and the globalisation of the audience. Japanese development studios remain perfectly capable of making superb games that delight their fans; their problem, just as everywhere else, is figuring out how to make money from those games in a new world where profitability escapes everything but the million-selling megahit.
That links back to the second narrative; Japan is falling out of love with games. On the surface, it’s hard to see this alleged decline. The country’s arcades may not be what they once were, but they’re still far more numerous and spacious, not to mention well-attended, than any such establishments in the west. Dedicated videogame stores remain a fixture of shopping districts, while every large electronics store (and there are plenty of those, dominating most city centre areas) has a large videogames section – a stark contrast with, for example, central London, where actually going out and buying a videogame in a shop is an increasingly difficult task. Food courts and fast-food joints still play host to groups of children and teenagers engaged in the likes of Pokemon and Monster Hunter, and a trip outside in an urban area with a 3DS in your pocket will bag a full complement of Street Pass hits in no time flat.
Where’s the decline, then? Well, as figures released earlier this week by Japanese magazine publisher and industry data agency Enterbrain confirm, it’s not actually a decline so much as a stagnation. Enterbrain’s report, widely reported online after being translated in part by Kantan Games’ boss Serkan Toto on the company’s blog, showed that combined hardware and software sales in the first half of 2014 were almost exactly the same as the first half of 2013 – showing growth of just 0.1%. Toto’s entirely reasonable point was that this is much, much lower growth than Japan’s booming smartphone game market, yet this seems to have been picked up by many outlets as further confirmation of a Japanese gaming decline and specifically of a failure to ignite interest in the PS4.
Let’s be clear – the Japanese smartphone game market is in extraordinarily rude health. Revenues from mobile games, by some measures, surpassed packaged game revenue about three years ago and haven’t looked back since. For every person you see playing a 3DS or a Vita (the latter, I note, becoming vastly more commonplace on trains in recent months), you see dozens engrossed in mobile games. Puzzle & Dragons remains the clear favourite, but a trip on a busy Tokyo commuter line will turn up any number of different games gracing the ubiquitous smartphones. The industry’s revenues are clear to see, too; the vast majority of expensive marketing campaigns for games here are for mobile games, not console titles. Only last week I walked onto a train carriage on the phenomenally busy Yamanote loop line in central Tokyo to find that every advertising space in the carriage was full of Clash of Clans marketing; the huge billboard near my apartment, meanwhile, alternates fortnightly between ads for hopeful Puzzle & Dragons clones and ads for new singles by terrible boybands. There’s a huge amount of cash flowing through mobile games in Japan right now, and from a business perspective, that makes it a more interesting (if vastly more challenging) space than the console market.
Yet that doesn’t change the slowdown of Japan’s console market into a “decline” or a “crisis”. We all know that Japan has been ahead of the curve in terms of the adoption of videogames since the 1980s. 30 years down the line, is it surprising that it has hit a plateau? Gaming as a whole – including mobile, browser and online gaming – continues to grow at a massive rate, but in Japan at least, the console space has reached a point where there simply isn’t much new market to conquer. That may change in future as new devices open up new audiences, but console games as they stand don’t seem to have much further to go in Japan. That doesn’t make them a bad business. It means that if you want to make huge bucks and impress shareholders with your growth figures, you probably want to place your investments elsewhere – but if you want to make great games and make money selling them, a mature, stable market is no worse a place to do that than a growing one.
Moreover, when you consider the underlying factors in Japan’s economy, maintaining a steady market size is actually quite impressive. Japan’s population peaked in 2008 and has slowly declined since then; the most rapid decline being the proportion of young people (the most avid consumers of videogames). So this is a market with less “core” consumers of videogames than before; moreover, a series of ill-targeted reforms and a few decades of economic slump have meant that a very large proportion of those young people are trapped in low-paying work with no job security. Furthermore, Japan’s prices have been in slow but steady decline since the early 1990s. Yes, unlike most western economies, Japanese prices aren’t slowly rising due to inflation – rather, they’re falling due to deflation. This has supposedly been reversed in the past 12 months or so, with tiny inflation figures finally showing up, but most of the change so far has been down to a sharp rise in energy costs (a consequence of expensive imported fuels replacing Japan’s still-offline nuclear power plants) and it generally hasn’t been reflected in consumer goods.
One other economic factor has been mentioned by a handful of writers this week. They pointed out that Japan’s consumption tax went up from 5 per cent to 8 per cent in April, in the middle of this reporting period; if that 3 per cent hike were included in Enterbrain’s figures, it would mean industry revenues actually fell. However, to my knowledge Enterbrain’s numbers are based on pre-tax figures, much as US market data is, and thus the consumption tax rise isn’t a factor – except in that it would have been expected to push videogame sales down, thus making the rise slightly more impressive.
In short – Japan has less consumers for games and it’s charging less for things than it used to. Under those circumstances, a market which was performing precisely as well this year as it did last year would be expected to show a modest decline. Just staying still would mean you’d actually grown by a few percent in relative to offset the underlying audience decline and price deflation. Growing by 0.1% in Japan is comparable to growing by a couple of percent in the USA or much of Europe, where population is still generally growing and prices are being inflated, not deflated.
These factors don’t combine to mean that Japan is magically showing strong growth in defiance of the figures, but they are important to understanding what the figures mean. Japan’s “decline” is more like stagnation, and in the past year, even that stagnation has showed a positive trend. The market for consoles and games remains big and pretty healthy even as the market for smartphone games shoots through the roof; both of them clearly have an important place in the future of the country’s games industry.
As for the supposedly “disappointing” impact of the PlayStation 4? There’s no doubt that the performance of the console has slowed down significantly since a very strong launch, but it’s worth noting that sales of hardware were actually up nearly 7% year-on-year, with the PS4 and the resurgent Vita picking up slack from slower sales of the 3DS. PS4′s software line-up in Japan is still largely composed of western titles with limited appeal to the local audience, and the console probably won’t pick up significantly until more local software is available later this year – it’s notable that the PS Vita’s success in the first half of 2014 is largely attributable to the sudden arrival of software titles that match local tastes, and not (as some commentators would have it) to an upsurge of interest in PS4 Remote Play functionality. Overall, PS4 in Japan continues to perform as you’d expect for a new console with limited software – a great launch, followed by slow but steady sales while it awaits new software to spark purchases from new audiences. It’s done well, but it hasn’t “rescued” the Japanese market; but then again, if you take the time to understand the figures, it should be pretty clear that the Japanese market doesn’t actually need rescuing.
By 2017, mobile and online games could push worldwide gaming software revenues to $100 billion. That’s according to Digi-Capital’s latest Global Games Investment Review report, which said the mobile/online game market could make up a whopping 60 percent ($60 billion) of that total thanks to a compound annual growth rate of nearly 24 percent since 2011.
The firm found mobile was the main driver of record mergers and acquisitions activity in the last year, accounting for $4.6 billion of a record $12.5 billion in games M&A. The free-to-play MMO market was the next biggest driver with $4 billion in M&A business, followed by tech interests with $2.8 billion.
That total covers the last year, but most of it has come in 2014, with gaming M&A accounting for a record $6.6 billion in the first six months of the year alone. Even if 2014 didn’t see another penny added to that total, it would be a new full-year record as well, having already eclipsed the $5.6 billion in mergers and acquisitions recorded for the entirety of 2013.
Digi-Capital offered a number of reasons for the increase of M&A activity beyond the simple attraction of massive growth in the field. The firm also said some acquirers were interested in “stopping mobile insurgents from eating their lunch,” indicating the Zynga pick-up of Natural Motion would fall under that category. It also said companies established in one region are looking to buy strength in a different part of the world (as with Softbank’s majority stake acquisition of Supercell), and lukewarm or delayed IPOs for a handful of companies in the market have made recent valuations seem like good bargains.
Late last year, Frank Gibeau switched roles at Electronic Arts, moving from president of the PC and console-focused EA Labels to be the executive vice president of EA Mobile. Speaking with GamesIndustry International at E3 last month, Gibeau said he was enticed by the vast opportunity for growth in the mobile world, and the chance to shape the publisher’s efforts in the space.
“One of the things I enjoy doing is building new groups, new teams and taking on cool missions,” Gibeau said. “The idea was that EA is known as a console company, and for our PC business. We’re not particularly well known for our mobile efforts, and I thought it would be an awesome challenge to go in and marshal all the talent and assets of EA and, frankly, build a mobile game company.”
It might sound a little odd to hear Gibeau speaking of building a mobile game company at EA. After all, he described EA as “the king of the premium business model” in the mobile world not too long ago, when the company was topping charts with $7 apps like The Sims 3 or raking it in with paid offerings like Tetris, Monopoly, or Scrabble.
“Two years ago, we were number one on feature phones with the premium business model,” Gibeau said. “Smart devices come in, freemium comes in, and we’re rebuilding our business. I think we’ve successfully gotten back into position and we see a lot of opportunity to grow the business going forward, but if you had talked to me about two years ago and tried to speculate there would be a company called Supercell with that much share and that many games, we wouldn’t even have come close.”
Gibeau expects that pace of upheaval to continue in the mobile market, but some things seem set in stone. For example, Gibeau is so convinced that the days of premium apps are done, he has EA Mobile working exclusively on freemium these days.
“If you look at how Asia operates, premium just doesn’t exist as a business model for interactive games, whether it’s on PC or mobile devices. If you look at the opportunity set, if you’re thinking globally, you want to go freemium so you can capture the widest possible audience in Japan, Korea, China, and so on… With premium games, you just don’t get the downloads you do with a free game. It’s better to get as many people into your experience and trying it. If they connect with it, that’s great, then you can carry them for very long periods of time. With premium, given that there are so many free offerings out there, it’s very difficult to break through.”
Unfortunately for EA, its prior expertise is only so relevant in the new mobile marketplace. Its decades of work on PCs and consoles translated well to premium apps that didn’t require constant updating, but Gibeau said running live services is a very different task – one EA needs to get better at.
“Our challenge frankly is just mastering the freemium live service component of what’s happening in mobile,” Gibeau said. “That’s where we’re spending a lot of our time right now. We think we have the right IP. We have the right talent. We’ve got great production values. Our scores from users are pretty high. It’s really about being able to be as good as Supercell, King, Gungho, or some of these other companies at sustained live services for long periods of time. We have a couple games that are doing really well on that front, like The Simpsons, Sims Freeplay, and Real Racing, but in general I think that’s where we need to spend most of our time.”
As Gibeau mentioned, EA has already had some successes on that front, but its record isn’t exactly unblemished. The company launched a freemium reboot of Dungeon Keeper earlier this year and the game was heavily criticized for its aggressive monetization approach. In May, EA shuttered original developer Mythic.
“Dungeon Keeper suffered from a few things,” Gibeau said. “I don’t think we did a particularly good job marketing it or talking to fans about their expectations for what Dungeon Keeper was going to be or ultimately should be. Brands ultimately have a certain amount of permission that you can make changes to, and I think we might have innovated too much or tried some different things that people just weren’t ready for. Or, frankly, were not in tune with what the brand would have allowed us to do. We like the idea that you can bring back a brand at EA and express it in a new way. We’ve had some successes on that front, but in the case of Dungeon Keeper, that just didn’t connect with an audience for a variety of reasons.”
The Dungeon Keeper reboot wasn’t successful, but EA continues to keep the game up and running, having passed the live service responsibilities to another studio. It’s not because the company is hoping for a turnaround story so much as it’s just one more adaptation to running games with a live service model.
“If you watch some of the things we’ve been doing over the last eight or nine months, we’ve made a commitment to players,” Gibeau said. “We’re sincere and committed to that. So when you bring in a group of people to Dungeon Keeper and you serve them, create a live service, a relationship and a connection, you just can’t pull the rug out from under them. That’s just not fair. We can sustain the Dungeon Keeper business at its level for a very long time. We have a committed group of people who are playing the game and enjoying it. So our view is going to be that we’ll keep Dungeon Keeper going as long as there’s a committed and connected audience to that game. Are we going to sequel it? Probably not. [Laughs] But we don’t want to just shut stuff off and walk away. You can’t do that in a live service environment.”
Much like EA’s institutional experience, there’s only so much of Gibeau’s past in the console and PC core gaming world that is directly relevant to today’s mobile space. But as the segment grows out of what he calls the “two guys in a garage” stage, EA’s organizational expertise will be increasingly beneficial.
“These teams are starting to become fairly sizeable,” Gibeau said, “and the teams and investment going into these games is starting to become much greater. Now they’re much, much less than you see on the console side, but there’s a certain rigor and discipline in approach from a technology and talent standpoint that’s very applicable… If you look at these devices, they will refresh their hardware and their computing power multiple times before you see a PlayStation 5. And as you see that hardware get increasing power and capability on GPU and CPU levels, our technology that we set up for gen 4 will be very applicable there. We’re going to be building technologies like Frostbite that operate on mobile devices so we can create richer, more immersive experiences on mobile.”
Even if mobile blockbusters like Candy Crush Saga aren’t exactly pushing the hardware, Gibeau said there’s still a need for all that extra horsepower. With the increased capabilities of multitasking on phones, he sees plenty of room for improvement before the industry runs up against diminishing returns on the CPU and GPU front. He likens today’s mobile titles to late-generation PS2 games, with PS3 and Xbox 360-level games just around the corner.
“As it relates to games, this is like black and white movies with no sound at this point, in terms of the type of games we’ve created,” Gibeau said. “We’re just starting to break through on the really big ideas is my personal view. If you look at games like Clash of Clans, Real Racing, even Candy Crush, they’re breaking through in new ways and spawning all types of new products that are opening up creativity and opportunities here. So I think computing power is just something we’ll continue to leverage.”
The best part for Gibeau is that the hard work of convincing people to buy these more powerful devices isn’t falling solely on the shoulders of game developers.
“The beauty of it is it’s not a single-use device,” Gibeau said, “so people will be upgrading them for a better camera, better video capability, different form factor, different user inputs, as a wearable… I think there’s so much pressure from an innovation standpoint between Samsung, Apple, Google, and Windows coming in, that they’ll continue to one up each other and there will be a very vibrant refresh cycle for a very long period of time. The screens get better, the computing power gets better, and I don’t have to worry about just games doing it like we were in the console business. Those were pretty much just games consoles; these are multi-use devices. And the beauty of it is there will be lots of different types of applications coming in and pushing that upgrade path.”
Sony Corp believes its TV division will swing into the black this financial year after a decade in the red, even if it falls short of its volume sales target, the head of the newly independent division said on Monday.
Masashi Imamura told a media round table that the TV business, which will become a separate subsidiary of Sony Corp on July 1, had reduced fixed costs during the last financial year, and profitability was now in sight.
He said Sony this year would be able to absorb the impact of any fluctuations in emerging market currencies, a factor he blamed for the unit’s failure to make a profit last year.
Sony has forecast an 18.5 percent rise in TV sales to 16 million units this year from 13.5 million units a year ago, an increase that analysts said was well above the industry’s average growth forecasts.
Imamura said the sales target was achievable, but added that the TV business would still turn a profit even if sales fell short of this goal.
Sony’s TV division will be split off from the parent company on Tuesday, a move aimed at boosting transparency and accountability in a bid to achieve and maintain profitability.
Sony Chief Executive Kazuo Hirai said at a corporate strategy meeting last month that the company had not ruled out an equity tie-up for the TV business, which is to be known as Sony Visual Products Inc, although nothing had been decided on the matter.
Sony’s TV business has seen relatively rapid turnover at the top over the past decade with six different chiefs, although Imamura has had the longest tenure, serving since August 2011.
Sony’s shares are down 8 percent so far this year, in line with the benchmark Nikkei average’s 7 percent drop.
Gran Turismo 7 had been rumored to already have been in development, but now Kazunori Yamauchi, CEO of Polyphony Digital has now confirmed officially that this is the case. Yamauchi revealed to Eurogamer that “we are working on the title, but added that he doesn’t think it will make it this year.”
In addition we learned that Gran Turismo 7 will not be getting a Prologue release this time around with the development team instead focusing on the full release. PS2 ear cars are likely to be included with Gran Turismo 7, but they may be upgraded to Premium, highly detailed models for this release. It is unlikely that they will be getting rid of any of the standard cars because each car has its own fans.
Sony has not officially announced Gran Turismo 7, but Yamauchi already had told fans back in September to expect a Gran Turismo release on the PlayStation 4 in a year or two.
Breaking up is hard to do, as the Carpenters famously crooned; right now, Microsoft is discovering, not for the first time this generation, that dumping your old ideas is just as tough as dumping your clingy ex. It may be the right thing to do, but it’s a fraught process and one that it’s tough to emerge from without attracting plenty of ire along the way.
Kinect 2.0 and Xbox One were, after all, meant to be married for life. The expensive sensor was bundled with the console from day one. Its functionality was deeply ingrained in the design of the system’s user interface, and a whole 10% of GPU resources were permanently devoted to it. Originally, Xbox One wasn’t even capable of booting up without a Kinect plugged in; it was an intrinsic and inseparable part of the console. In sickness and health, till death do they part.
Well, like so many relationships and marriages, it turned out that there were plenty of good reasons to break up long before the Grim Reaper raised a bony hand. Kinect has been at the root of many of Microsoft’s woes with Xbox One. It raised the price of the system, making the console $100 more expensive than the more technically impressive and well-liked PS4. It seemed to imply that Xbox One was a console aimed at casual gamers (with whom motion controls are now, fairly or unfairly, strongly associated) at the expense of the core gamers who made Xbox 360 successful. Moreover, in an age of actually rather justifiable paranoia about privacy, a camera in your living room that never turned off made plenty of people downright uncomfortable.
Worst of all, up to this point, Kinect just hasn’t justified its own existence. There aren’t any great games on the Xbox One that use Kinect extensively; there’s simply nothing there to make people think, “wow, this is something you couldn’t do on PS4 because it doesn’t have Kinect”. After 12 months of doggedly repeating the party line that Kinect was a great unique selling point for Xbox One, Microsoft’s decision to unbundle the peripheral from the console is a tacit admission that it wasn’t a selling point at all. Innovative hardware is meaningless if nobody builds must-have games to exploit the functionality.
It’s no coincidence, I think, that the decision to bring Kinect around the back of the woodshed and put a bullet in it was announced shortly after Phil Spencer took over Xbox. Spencer understands games in a way that his immediate predecessors did not; he would have an innate understanding of the fact that games sell consoles, and untapped potential in hardware is not exciting to consumers, it’s simply wasteful. An expensive peripheral that doesn’t drive great software isn’t a USP, it’s a ball and chain around the ankle of the console. It had to go.
It’s a little disingenuous, then, to see Spencer trying to claim that everything is fine in the land of Kinect. Speaking to GamesIndustry International at E3, he simultaneously acknowledged that Kinect was dragging the console down (noting that Kinect couldn’t succeed if Xbox One itself failed, which is a tacit admission that bundling Kinect with the console was risking a huge failure) while also claiming that plenty of consumers will buy the Kinect peripheral separately, and it’ll continue to be a big part of the Xbox One offering.
Not an unexpected claim, of course; but also patently not a true one. Kinect wasn’t supported strongly by developers even when it was bundled with every Xbox One. Now that it’s been dropped to the status of “expensive peripheral with no good games”, developer support will entirely dry up. Just like its predecessor on the Xbox 360, Xbox One Kinect is going to be relegated to lip-service support (“jump around to avoid enemy attacks, or just press B… Huh, you pressed B? Not up for jumping around? Surprising…”) and a handful of dancing or exercise titles. Not that there’s anything wrong with dancing or exercise titles, but you don’t get platform-defining tech from them; if you did, the world would have changed a hell of a lot more when Dance Dance Revolution mats came out for the PS1.
I don’t want to give Microsoft too much of a hard time for its decision with Kinect, not least because it’s the right decision. It gives them price parity with Sony and might help to fix some of the perception problems Xbox One faces. On the other hand, while Kinect was a failed USP – and thus deserved to be ditched – it was at least an attempt at a USP. With the right software and services backing it up, it could have given the Xbox One an offer different enough from Sony’s to be very interesting indeed – but building that software would have taken time, effort and attention. Spencer, with full visibility of the firm’s software pipeline, chose instead to amputate the limb and cauterise the wound. Painful, but mercifully quick; definitely a vote of no confidence in whatever Kinect software is still under development; possibly a move that will make Xbox One walk with a limp for the rest of its life.
What I hope the Xbox team recognises is that ditching Kinect isn’t enough – and hollow platitudes about how important the peripheral remains to the company’s strategy certainly aren’t enough either. What Xbox One needs is something to replace Kinect, a new USP; one that isn’t rubbish, this time. That USP could just be software, with Microsoft doubling down on its internal studios and building its relationships with third-parties to produce genuine exclusives (as opposed to timed-release DLC exclusives, which just look desperate and annoying no matter which platform is involved in them). It could be services, as the company attempts to leapfrog Sony and regain the lead Xbox Live once had over PSN’s services; what form that might take is tough to say, but there’s certainly still headway to be made in the provision of online services, and right now Microsoft lags behind, which makes this into an area brimming with opportunity. Most likely, a combination of both great games and great new services will be needed to make Xbox One attractive to consumers; to give it the USP that Kinect was supposed to be, but never was.
There’s an interesting comparison, of course, to be made with Nintendo’s difficulties with Wii U. I observed some time ago that both Microsoft and Nintendo had made the same basic error with their new consoles – they launched with expensive peripherals that boosted the cost of the console but had yet to show any dividends in terms of unique, must-have software. In Microsoft’s case, Kinect has now been ditched; losing the millstone, but with no sign yet of a new USP to replace it. Nintendo, however, has taken quite the opposite approach. Gamepad remains firmly bundled with the Wii U, and while software for the Gamepad still doesn’t impress, there’s obviously potential there; the short, cryptic videos of Miyamoto Shigeru working up gameplay demos using the pad which was shown at the end of Nintendo’s E3 broadcast was a statement of intent. Rather than ditching its white elephant, Nintendo is trying to figure out how to put it to work.
So, over the next year, we’re going to get to see how two diametrically opposed solutions to the same problem work out. Microsoft, making the latest of several U-turns, has gone back to square one and now needs to find a new selling point for the Xbox One. Nintendo has doubled down on the Gamepad, and needs to convince consumers of the worth of its innovation – not to mention the worth of the Wii U overall. Different challenges with similar requirements; they both need great games to prove their point. The consumer wins, in this situation, but it will be interesting to see which company, if either, can emerge victorious from these trials.
Apache Spark, a high-speed analytics engine for the Hadoop distributed processing framework, is now available to plug into the YARN resource management tool.
This development means that it can now be easily deployed along with other workloads on a Hadoop cluster, according to Hadoop specialist Hortonworks.
Released as version 1.0.0 at the end of May, Apache Spark is a high-speed engine for large-scale data processing, created with the aim of being much faster than Hadoop’s better-known MapReduce function, but for more specialised applications.
Hortonworks vice president of Corporate Strategy Shaun Connolly told The INQUIRER, “Spark is a memory-oriented system for doing machine learning and iterative analytics. It’s mostly used by data scientists and high-end analysts and statisticians, making it a sub-segment of Hadoop workloads but a very interesting one, nevertheless.”
As a relatively new addition to the Hadoop suite of tools, Spark is getting a lot of interest from developers using the Scala language to perform analysis on data in Hadoop for customer segmentation or other advanced analytics techniques such as clustering and classification of datasets, according to Connolly.
With Spark certified as YARN-ready, enterprise customers will be able to run memory and CPU-intensive Spark applications alongside other workloads on a Hadoop cluster, rather than having to deploy them in separate a cluster.
“Since Spark has requirements that are much heavier on memory and CPU, YARN-enabling it will ensure that the resources of a Spark user don’t dominate the cluster when SQL or MapReduce users are running their application,” Connolly explained.
Meanwhile, Hortonworks is also collaborating with Databricks, a firm founded by the creators of Apache Spark, in order to ensure that new tools and applications built on Spark are compatible with all implementations of it.
“We’re working to ensure that Apache Spark and its APIs and applications maintain a level of compatibility, so as we deliver Spark in our Hortonworks Data Platform, any applications will be able to run on ours as well as any other platform that includes the technology,” Connolly said.
Taiwan’s Quanta will begin mass production of Apple’s first smartwatches from July, in time for an October launch, several sources familiar with the matter told Reuters last Thursday.
The Wall Street Journal on Friday also cited sources saying Quanta would manufacture the device.
One of the sources told Reuters on Thursday that Apple expects to ship 50 million units of the so-called iWatch within the first year of the product’s release, although these types of initial estimates can be subject to change.
The smartwatch will come with a slightly rectangular display that likely measures 2.5 inches diagonally, the source added. The watch-face will protrude slightly from the band, creating an arched shape, and feature a touch interface and wireless charging capabilities, according to the source.
Another source told Reuters that LG Display Co Ltd is the exclusive supplier of the screen for the gadget’s initial batch of production.
The iWatch will also contain a sensor that monitors a user’s pulse. Singapore-based imaging and sensor maker Heptagon is on the supplier list for that feature, two sources said on Thursday.
Apple’s smartwatch will follow similar devices by Samsung, Sony Corp, Motorola and LG Electronics Inc – gadgets that tech watchers say have not been appealing or user-friendly enough for mass adoption.
But the market is growing fast. Data firm IDC estimates that worldwide shipments of wearable computing devices, including smartwatches, will triple this year over 2013.
New Nexon CEO Owen Mahoney said earlier this year that he’d like for his company to be “more successful in the West with the kinds of games that will resonate with Western tastes.” While acquisitions could be on the table to bolster its development talent, the company today took a step in the right direction, revealing to GamesIndustry International that it’s signed a publishing agreement with Brooklyn, New York-based Turbo, a startup with backing from SoftBank Ventures Korea and comprised of veteran talent that has worked at Nintendo, Sony, Microsoft, Riot, Rockstar, Zynga and more.
Turbo believes there’s a great opportunity in core titles on mobile and the studio came together in 2013 with a shared “desire to bring AAA ambition to mobile game development.” Nexon will be the exclusive worldwide mobile publisher for Turbo’s first cross-platform title, which is expected in 2015. Turbo founder and CEO Yohei Ishii talked with us about his studio’s goals and ambitions and why Nexon is the right partner.
While Nexon’s portfolio on the PC has something to offer for core gamers, the company’s mobile lineup has been a bit more casual in nature. With Turbo on board, and other deals in place, Ishii noted that Nexon is quickly getting serious about core titles on mobile.
“Every year, the devices get more powerful, developers get smarter, the tools get better, and the quality bar of what a mobile game can achieve is raised. I believe that mobile is the true next generation gaming platform”
“Nexon is dedicated to bringing high quality mobile content to gamers, and you can see how serious they are by their recent partnership announcements with companies like Shiver Entertainment (John Schappert) and SecretNewCo (Brian Reynolds). In terms of Turbo, we aren’t confining our creativity to a specific genre; we are focusing on creating AAA quality games tailored to the pursuits and expectations of the core gamer, a community that we feel hasn’t been properly embraced in mobile. Since we’re gamers ourselves, it’s important for us to not only develop titles that get the community excited, but games that we actually want to play as well. Nexon understands this and is 100 percent in support of what we are trying to accomplish here at Turbo,” Ishii said.
The mobile games market has grown by leaps and bounds in just the past few years, and while PC and consoles are still very much the home of core gaming, Ishii is confident that a greater number of core gamers will be putting more time into playing on mobile. The quality of the titles has been steadily improving, and the price is right for consumers.
“In the past, mobile was never considered a legitimate gaming platform; however that was primarily due to the quality of games that were being offered at the time. Back then, a majority of game offerings were made up of very forgettable, factory processed gameplay experiences. Recently, there’s been a dynamic shift in the mid-to-hardcore gamer demographic within the mobile space, and for the first time, smartphone and tablet gamers now outnumber traditional console gamers,” Ishii noted. “Every year, the devices get more powerful, developers get smarter, the tools get better, and the quality bar of what a mobile game can achieve is raised. I believe that mobile is the true next generation gaming platform, and players’ outlook as it relates to mobile will continue to change as their perceptions and user habits have already started to shift more towards core.”
Needless to say, with Nexon as publisher, you can expect Turbo’s inaugural title to use the free-to-play business model. That, in and of itself, shouldn’t be a deterrent to the core crowd in the long run, Ishii insisted.
“Similar to my previous point about mobile perception and user habits shifting more towards core, this also holds true for the platform’s business models as well. It is important for us to not only create an awesome game that hardcore, articulate gamers will enjoy, but also make it as accessible as possible. The best way to do that is to drop the barrier to entry altogether,” he said. “By making it free-to-play, we understand that we may run the risk of initially alienating the core gamer, whose first reaction might be one of skepticism. But this is one of the reasons I’m so excited about what we are doing at Turbo. Every employee that works here is a gamer. When we’re not making games, we’re playing games, and that sets a stratospherically high bar for ensuring that all our releases provide the fun and depth core gamers come to expect with a AAA quality experience. At Turbo, quality and knowing our community is what matters, not of-the-minute trends.”
Of course, Turbo’s core gaming mission can only be helped by initiatives like Apple’s new Metal API for iOS 8, which should enable console-quality visuals to be rendered much more easily on iPhone and iPad. Ishii is definitely looking forward to leveraging the new technology. “We are super excited about what Apple is doing on the mobile front. Their recent announcements are another great example of how the mobile games platform is always evolving and moving forward. We believe there is a big opportunity for us in this space and are excited to be a part of it,” he said.
Those who have been eagerly waiting for October to experience the latest adventures of Batman from developer Rocksteady, are going to be very disappointed to learn that the game will not make its originally announced October release.
Instead developer Rocksteady has confirmed that the game will be released in 2015. An exact release date has not yet been decided upon. We are hearing however, that as spring release for Arkham Knight is very likely.
While the exact reasons behind the delay were not announced, but the game is much bigger than previous Batman titles that Rocksteady has done and it is the first all next-generation title that the developer has done which also might be contributing to the delay. The game is still scheduled for release only on the Xbox One, PlayStation 4, and PC so the next generation status of the game has not changed.