The number of games on Steam continues to rise at a daunting rate. According to new data from Steam Spy, the number of full games released on the store this year rose 40% over 2015.
Steam Spy founder Sergey Galyonkin published a chart on Twitter that indicated a total of 4207 games launched on Steam in 2016, up from 2964 last year. If accurate, that means 38% of all games on Steam were released within the last 12 months – a sobering thought for any developer trading on Valve’s market leading platform.
Of course, the notion that Steam is crowded with product is hardly new, but Steam Spy’s chart – republished above – clearly illustrates the pace at which the trend is playing out.
The only small consolation is that the 40% rise over last year is actually lower than the 67% increase in new games between 2014 and 2015. Galyonkin noted that the chart doesn’t include movies and non-game software, but it also filters out relevant content like DLC packs and “games without owner data.”
Valve is certainly cognisant of the issues that Steam’s teeming inventory has created for both developers and consumers. It has responded with two “Discovery Updates” that gave more control over the experience to both groups, the first in 2014 and the second little more than a month ago.
Following the second Discovery Update, GamesIndustry.biz talked to developers about the “huge impact” of the changes.
As the numbers from Black Friday and Thanksgiving weekend continue to trickle in, many analysts are examining how the holiday sales picture is coming together this year. While The NPD Group is not ready to give its full assessment just yet, the firm did note to GamesIndustry.biz that digital promotions on PlayStation Network and Xbox Live were much more aggressive this year and may have impacted the retail channel. Digital aside, the sector that seemed to struggle the most is virtual reality, according to SuperData, which said VR has been the “biggest loser.”
Thanks to “notably fewer units sold than expected due to a relatively fragmented title line-up and modest marketing effort,” VR headsets are now expected to sell even fewer than previously thought. SuperData’s revised forecast for 2016 calls for under 750k PlayStation VR units sold (their previous estimate was 2.6 million) with Google’s Daydream selling just 261k (down from 450k). Previous estimates for HTC Vive, Oculus Rift and Gear VR remain unchanged at 450k, 355k and 2.3 million, respectively.
As you can see, expectations for PSVR have seen the most dramatic shift. Stephanie Llamas, director of research and insights at SuperData, explained to us, “PSVR had the best opportunity to benefit from the holidays but their supply inconsistencies and lack of marketing have put them behind their potential. They did not offer any first-party deals this weekend, restock bundles or market the device, pushing instead for the PS 4 Pro. They have also pointed out that VR looks even better on a Pro than a standard or slim PS 4, so the message to most gamers is: Get the Pro now, then the PSVR later. As a result, we won’t see them break 1M shipments until well into the new year.”
Llamas added that Sony may be deliberately limiting PSVR supply until it can do a better job with supporting the platform. “Had Sony pushed the PSVR the way they’ve been pushing their other new hardware, the demand would have certainly fulfilled a supply of over 2 million. However, given its quiet release it’s clear they’re being cautious before fully investing in the tech. Without the ‘killer app’ and the slow, steady release of AAA content, they will release less than 1 million devices until they have content they feel confident will bring in the praise they want. They can afford to take it slow since they have no competition for now, so their supply and sales will rise steadily into 2017 as opposed to riding the seasonal wave,” she said.
As for Oculus, Llamas believes they’ve taken a risk by possibly splitting their own user base. “The Rift’s Touch controllers are an opportunity for Oculus to penetrate, but not many headsets have moved, especially with their round-about deal where purchasers earned $100 Oculus credit rather than just getting $100 off. Oculus’s hardware release strategy has also slowed them down and split their user base, so developers are having to make some choices around whether they should develop for both Touch and non-Touch users. This means development has slowed and is becoming another barrier to growth,” she remarked.
Looking at the non-VR games market, Nintendo may actually prove to be the biggest winner, thanks to updates both to Pokémon GO and selling out of its NES mini. “On mobile we recorded a spike in earnings as players made the most of the Thanksgiving special for Pokémon GO. The game’s ability to stay in the forefront of people’s minds as we approach the release date for Super Mario Run may prove beneficial for Nintendo, which has yet to make a convincing claim on the $38 billion mobile games market,” said Joost van Dreunen.
Overall digital game sales this holiday are down 2% from 2015 so far, but the impact of digital has grown tremendously in just a few years. “In 2012 full game downloads accounted for only 6% of total unit sales around the Thanksgiving holiday in the United States. For 2016E that number was four times higher at 24%,” van Dreunen said.
The other big contributor to the slow holiday start has been big discounting, according to Wedbush Securities’ Michael Pachter. “We saw greater discounting of high-profile new video games this Black Friday compared to last year. Last year’s top sellers, Activision Blizzard’s Call of Duty: Black Ops III , Bethesda Softworks’ Fallout 4, and EA’s Star Wars Battlefront, saw sticky pricing on Black Friday, with the $60 price point remaining largely intact. While discounting of sports games happens each year, many other titles that maintain pricing on Black Friday were listed at discounts of 40% or more this weekend,” he observed.
“For example, Walmart had EA’s Battlefield 1 and Titanfall 2 at $27, and Microsoft’s Gears of War 4 and Take-Two’s Mafia III at $35. Walmart also had Activision Blizzard’s Call of Duty: Infinite Warfare Legacy Edition, which includes Modern Warfare Remastered , for $57, a $23 discount. Discounting of Call of Duty: Infinite Warfare began earlier in the week, with widespread discounts of roughly $20 for the different versions of the game. Hardware discounting for the PS4 and Xbox One was largely consistent with 2015, as $50 discounts were commonplace.”
Pachter also agreed that the “pace of the mix shift to digital full game downloads continues to be brisk,” but we probably won’t know whether digital sales fully made up for retail declines until we get the complete NPD report for 2016 sometime in January.
The announcement of Red Dead Redemption 2 has gamers and Take-Two investors alike eagerly anticipating the game’s release next fall, but the company’s been giving both camps reasons to pay attention in the meantime. Take-Two today announced its results for the quarter ended September 30, meeting (and in the case of bookings, exceeding) guidance and touting some record-breaking recent releases.
September’s NBA 2K17 and Mafia III (which launched in the current quarter) set new records, with the former selling in more units at release than any previous title in the franchise, and the latter selling in more units than any previous game on the 2K label (which includes BioShock and Borderlands, but not Rockstar series like Grand Theft Auto or Red Dead Redemption). The company also noted that NBA 2K17 posted the highest Metacritic scores that series has seen to date, as well as the best scores of any annualized sports game this console generation. (As of this writing, NBA 2K17 has a Metacritic average of 90, which the series has previously surpassed, but not since Take-Two acquired it from Sega in 2005.)
Speaking with GamesIndustry.biz, Take-Two chairman and CEO Strauss Zelnick acknowledged Mafia III’s reviews were not quite as record-setting as its sales. At the moment, they range from 62 to 69, depending on the platform. However, he characterized its overall reception as “phenomenal.”
“I think the scores have been a bit disappointing because there were some scores much lower than we expected,” Zelnick said. “But the reviews, especially from those who matter, have been phenomenal. And consumers absolutely love it; it’s selling really well.”
While it has been years since the NBA 2K series has been pushed by a strong competitor (Sony stopped making its own basketball series and EA has been struggling to return NBA Live to its former standing for years), Zelnick said the developers don’t take their success for granted.
“This was record first-week sell-in and we’re excited about that; virtual currency sales are up 160% year-over-year,” Zelnick said. “But if you sat with our creative team, they could give you a long list of things they feel we should be doing better, and we’re focused on all of them. Every year we aim to delight consumers, every year we make progress, and every year we fall short a bit from our own point of view. So I think we have plenty of motivation to delight the consumer, internally.”
But as games continue posting bigger and better numbers, so too do the expectations around them rise in lockstep. Zelnick said the return on investment for what constitutes a successful AAA game has only risen over time.
“For our successful titles, the ROI is very strong and getting stronger,” Zelnick said. “And I think that’s attributable to the fact that a few years ago, we’d make a title, market it, sell units, then sell catalog. And today, we offer opportunities for the consumer to engage after that release. And in many instances, we offer an opportunity to spend money after that release.”
He added that has “unquestionably” made the industry more hit-driven.
“I said in 2008 or 2009 that good is the new bad. Standards are going up, and that’s why our strategy always has been to be the most creative, innovative, and efficient company in the business,” Zelnick said. “And more often than not, we are. Sometimes we fall short.”
Take-Two met its expectations for the second quarter, posting net revenues up 21% to $420.2 million with net income of $36.4 million, down from $54.7 million in the year-ago quarter. The company also reported bookings up 28% to $452.8 million (well above the $400 million top-end range of its guidance) and non-GAAP net income of $50.7 million, down from $56.2 million the year before.
At a Microsoft event to showcase its Windows 10 Creators Update coming next year, the software giant made it absolutely clear that it has big plans for VR, not just AR and HoloLens. By partnering with HP, Dell, Lenovo, Acer and Asus to offer a range of VR headsets that are priced at $299 and feature inside-out tracking, the company has taken an important step towards democratizing VR for the masses. But what’s the larger play here? How will VR headsets like these impact Project Scorpio next year and the Xbox business moving forward?
Tim Merel, founder of Digi-Capital and CEO of Eyetouch Reality, believes the VR news from Microsoft is a true “game changer” and he speculates that the company will look to make Scorpio an even more enticing proposition for gamers by bundling in VR. “The greatest potential for the Microsoft VR headset could come from bundling it with Xbox One Project Scorpio, which Microsoft has already highlighted as supporting next generation VR. With an Xbox One installed base over 20 million users, this might be Microsoft’s silver bullet for both VR specifically and the console market more generally. So Microsoft could be using its new VR headset to leapfrog competitors in two markets at the same time, leveraging for VR some of the great work already done by Phil Spencer, Alex Kipman and Kudo Tsunoda with Windows 10 and HoloLens in the adjacent AR market,” he says.
Wedbush Securities’ Michael Pachter agrees with Merel, telling GamesIndustry.biz, “Tim is spot on. A standalone headset without a CPU/GPU makes no sense, and if it requires the purchase of a high end PC, it’s not clear that anyone will buy it instead of Oculus/Vive/PSVR. However, if it works with Scorpio, it’s a formidable competitor for PSVR (albeit with a starting installed base of zero). I think that’s probably the plan, and am curious if software for Oculus and Vive will work with the Microsoft headset.”
Other analysts are more skeptical of Microsoft’s chances in VR, however. Stephanie Llamas, Director of Research and Insights at SuperData, still thinks HoloLens and augmented or mixed reality will be more impactful for the company.
“A VR device will not be a silver bullet for any market for a very long time,” she cautions. “First off, Microsoft is banking on consumers they don’t even have yet: Xbox One will not support the line of devices, so they are actually starting from a user base of zero that they hope will buy the Xbox One Project Scorpio. Early VR adopters already bought their PSVR, Vive or Oculus — inside-out tracking alone isn’t going to entice them to spend on another VR device this early in the market’s lifecycle. This product is going to be secondary to a purchaser’s decision to buy Project Scorpio, not the other way around.
“Second, this is just a MS-compatible line of headsets. So Microsoft will have to tout a third-party accessory with a first-party device, which definitely complicates their marketing and potential for bundling. Microsoft should have done this a year ago, or at least given us more promise than including their controller with the Oculus Rift, but they are already too far behind. Where they should continue to focus, and where they have shown a unique value proposition, is with the HoloLens’s potential for augmented and mixed reality.”
EEDAR’s Patrick Walker, on the other hand, is confident that a pivot towards VR is a smart move for Microsoft at this juncture. “While many technology thinkers are significantly more excited about the potential of AR long-term, VR is much closer to reaching a mainstream market,” he remarks. “It is also becoming more and more clear that the line between VR and AR will likely be blurred. Microsoft’s VR initiatives on the Xbox One portfolio also make a lot of sense considering the console’s position in the market. The PS4 has had a much more successful launch than the Xbox One so it is in Microsoft’s interest to push technology initiatives that disrupt the console generation, including the VR headsets and the merger of PC and console gaming.
“The increased VR capability of the Scorpio could provide a compelling reason for PS4 gamers to jump into the Xbox One platform. This creates a nice short term strategy of regaining console share, a mid-term strategy of generating VR revenue across PC and console, and a continued long-term strategy of developing for the future of AR.”
DFC Intelligence’s David Cole falls more in the skeptic’s camp. “The big issue in the VR market is that there needs to be a clear market driver that can package up the experience for the mass consumer. Right now the only one with that solution is PlayStation VR, which has a clear price point and an easy to use solution that is getting out to the masses,” he says. “The problem with the other VR devices is not having that clear distribution or message. Just having a product available doesn’t push it to consumers and that is the big problem Microsoft faces…who is going to communicate that message to consumers? This is still a pitch to the tech elite. There is also going to be a great deal of consumer confusion with multiple devices.
“VR is a new form of entertainment that needs to be introduced as such. The issue is many of these headset manufacturers are not strong at consumer marketing so who is going to get the message out? Right now for 2017 we see PSVR as being far and away the leading high-end VR device. I don’t think these products are launching until later in 2017 so we see a lot of announcements coming in this space.”
Inside-out tracking is important because it means you don’t need sensors all over your room to track your headset and controller motions, but as long as players are tethered to a device the experience will feel somewhat limited. “Losing the wire will be bigger. VR is still in its infancy and we expect even more price reductions and innovation to drive the market,” Cole continues.
“Microsoft has pretty much indicated that they plan for Project Scorpio to work with multiple VR headsets. The real issue will be Project Scorpio is too little, too late. Project Scorpio will actually be starting from a zero install base, not 20 million, so I think Windows VR should move the needle more than Project Scorpio.”
Merel remains more positive, though, and unlike Llamas, does not think that offering third-party VR hardware is a downside. “Microsoft’s new VR headset is the next stage of VR going mass consumer. For consumers, inside-out tracking without the need to buy or set up external sensors in a dedicated VR playroom is huge. The $299 price point is much less expensive than other PC based VR products. Launching with partners HP, Dell, Lenovo, Asus, and Acer gives Microsoft an accelerated hardware platform and also spreads its market risk,” he notes.
Microsoft has been making some headway in the generation eight console battle, with the Xbox One celebrating a third month running as the best-selling console in the US. The combined sales of the original One and the new S model also put it at the head of the pack in the UK in September.
US figures come from the NPD group and UK numbers from GfK, although no actual unit values were given. The full US sales report from NPD is due next week.
It’s likely that some of that recent lead is a result of a dip in PS4 sales thanks to the imminent launch of the PlayStation Pro, but the One has also been building momentum too, with sales up across many territories.
“Xbox One was the only gen eight console to see year-over-year growth in September in the U.S., Australia, the U.K and many other countries worldwide,” said corporate VP of Xbox marketing Mike Nichols. “This success was driven by our fans and their support for Xbox One S, which is the only console available this holiday with built-in UHD 4K Blu-ray, 4K video streaming and HDR for gaming and video.”
Since it did not come with some of the latest AMD Radeon Software Crimson Edition driver packages, the guys over at Wccftech.com contacted AMD which gave them an official response that since September 12th, AMD is no longer bundling the AMD Gaming Evolved App by Raptr with its Radeon Software and will not provide any official support for it, including compatibility testing, install support or general technical support.
Those that still want to use it can get the Gaming Evolved App directly from Raptr or with previous builds of Radeon Software drivers package.
AMD is either making a new in-house app that will replace the one from Raptr or is simply now focusing on hardware and drivers. Unfortunately, this leaves it without any competition for the Nvidia’s Geforce Experience app which recently got completely overhauled and looks quite good.
In a week’s time, what is arguably the first truly great commercial experiment of the new VR age will begin. For the first time, consumers will be able to go out and buy a VR headset that’s (relatively) inexpensive, that doesn’t require a costly hobbyist PC to operate, and that provides a “good enough” VR experience for gaming and other applications. If there’s to be a sweet spot in the virtual reality market, Sony will be planting its flag firmly in it next Thursday.
Reviews of the device have started to appear and are pretty much what you’d expect. It’s good; we’ve known that from the countless demos and trade show appearances PSVR has made this year. It’s not as technically accomplished as the HTC Vive or the Oculus Rift, but it’s a far more comfortable, well-designed piece of hardware, and its technical shortfalls are far fewer and less noticeable than you’d expect from such a cheap device running on such comparatively low-powered hardware. It’s certainly an entirely different class of experience than any of the “toy” VR experiences currently offered by mobile tech like Samsung’s Gear VR, a situation which Google’s newly announced Daydream headset seems unlikely to change.
So yes, this is the sweet spot, if such a thing exists. Good enough to actually want to use, unlike current mobile VR devices, cheap enough to be accessible to a wider audience of gamers and enthusiasts, and with common sense (if occasionally frustrating) trade offs between complexity of setup and physical arrangement, and accuracy of control. If a VR headset is to rescue this putative Year of VR from the somewhat disappointing launches of HTC and Oculus’ consumer devices – both of which saw interest plateau in the post-launch period – then it’s going to be PlayStation VR.
Is that what Sony has in mind, though? One peculiarity of the PSVR launch is that beyond the specialist press, it’s something of a non-event. Marketing support for the launch is minimal; there’s far less hype and visibility around the product than there would be around, for example, the launch of a major game. Here in Japan, PSVR barely warrants a mention in Sony’s current barrage of advertising, which is promoting PlayStation 4 with TV and streaming site commercials that highlight the launch of games like Persona 5 and Yakuza 6, the arrival of new console hardware, and oh yeah, PSVR is a thing too.
One could argue that Sony would be foolish to push PSVR too hard given that pretty much the entirety of its early shipments are spoken for by pre-orders. We still don’t know how many units of PSVR will ship for launch, or how many are projected to ship by year-end, but every indication is that the numbers are relatively small, at least by comparison with the PS4’s installed base. It’s not unreasonable to expect that PSVR will be for all intents and purposes supply-constrained through into early 2017, making it comfortably the most commercially successful of the tethered VR platforms – regardless of whether the company spends a single cent on further marketing.
However, the slightest glance back over the history of hardware launches in the games business and beyond would demonstrate that companies generally do not row back their marketing budgets just because of being supply-constrained; if anything, this encourages them to redouble their efforts. That’s because supply constraints act as a multiplier on marketing budgets. When demand is outstripping supply, every extra notch that you can ratchet up that demand through your marketing efforts guarantees more media coverage, more word of mouth and more visibility for your product, creating a halo of desirability around the platform which can give a long-term boost to sales that lasts for months or even years after the initial supply constraints are lifted.
That Sony has seemingly decided to eschew that strategy for PSVR is interesting, but probably speaks to a confluence of a number of different factors. For a start, it’s rare for a platform holder to be putting not one but two major new pieces of hardware on the market at once, which is what Sony is doing with PSVR in October and PS4 Pro in November. A huge marketing push, widespread coverage of shortages and the resulting desirability halo that would build around PSVR would be great for the VR headset, but might negatively impact the now overshadowed PS4 Pro. That would hurt all the more if, as is likely, PS4 Pro is not supply constrained while PSVR is. That’s definitely a factor playing into Sony’s decision making here.
There’s something else in play too, though. Lots of software is on the way for PSVR, and there’s actually a pretty respectable line-up at the outset – but reviews of the system are fairly blunt about the extent to which much of it feels more like it’s demoing the hardware, and the concept of VR itself, rather than being a proper, full-strength VR game experience. The games aren’t just short, they expose kinks in the PS Move control system (which may be fixable or may be an innate problem PSVR just has to work around forever) and sidestep major issues instead of tackling them – for example, the Batman VR title’s decision to make the player jump from location to location, rather than walking between them, to avoid motion sickness.
In short, while there’s interesting and even accomplished stuff in there, it all sounds rather like the kind of thing that you play to show off a new system’s capabilities, rather than the kind of thing that makes you say, “you’ve got to go out and get PSVR so you can play this game”. The enthusiasts and the VR faithful don’t need a killer app – they just need enough of a taster to convince themselves that the killer apps will come, given time – but the general public absolutely does. It’s easy for enthusiasts – a category which, if you’re reading this, probably encompasses you – to underestimate the psychological barrier VR needs to overcome. For many consumers, the prospect of strapping on a headset that looks like a Daft Punk cosplay prop, isolating themselves from the world around them and potentially looking like a complete tool as they flail around with objects nobody else in the room can see is a pretty big ask.
A great killer app game that gets the world gushing will overcome that barrier. That may be on the way; all eyes are on January’s Resident Evil 7, which could potentially be VR’s first truly huge AAA title. Until that kind of game is available, though, Sony may be well advised to focus on the VR faithful and keep its marketing powder dry. That’s certainly what seems to have happened so far; this is entirely anecdotal, but I’ve been surprised at just how few people have asked whether I’m getting a PSVR (and if they can bring an offering of beer around in order to have a go on it). Far fewer people have asked me about PSVR than have asked about PS4 Pro, or even Xbox One S. Enthusiasts know about it; the average gamer simply doesn’t seem to care yet.
Given the hurdles facing mainstream VR adoption, that may be for the best. It’s important that when the majority of consumers start to experience VR, their experience of it is fantastic, not just a demo or a proof of concept but a game that makes them want to own this technology right now. Saving the marketing blitz and letting PSVR’s software library mature first could be the best way to prevent the so-called Year of VR from ending with the Winter of VR Discontent.
Oculus CEO Brendan Iribe has emphasized the freedom that Oculus VR allows its employees to support their personal views, a freedom he said also applied to Palmer Luckey.
In a post on his Facebook page, Iribe spoke about Luckey’s regret at the negative impact the situation had created for “the company, our partners, and the industry.” However, he offered a measure of support for Oculus VR’s founder, citing Luckey’s right to independent political beliefs.
“Everyone at Oculus is free to support the issues or causes that matter to them, whether or not we agree with those views,” he said. “It is important to remember that Palmer acted independently in a personal capacity, and was in no way representing the company.”
Original Story: After numerous publications (GamesIndustry.biz included) no doubt flooded Oculus with requests for comment on Friday, when the story broke that Palmer Luckey allegedly had been funding a pro-Trump “shitposting” group, the man himself took to Facebook (which owns Oculus) to apologize for his actions.
“I am deeply sorry that my actions are negatively impacting the perception of Oculus and its partners.The recent news stories about me do not accurately represent my views,” he wrote. “Here’s more background: I contributed $10,000 to Nimble America because I thought the organization had fresh ideas on how to communicate with young voters through the use of several billboards. I am a libertarian who has publicly supported Ron Paul and Gary Johnson in the past, and I plan on voting for Gary in this election as well.”
Luckey went on to deny that he was the author behind the ‘NimbleRichMan’ posts on Reddit and the vice president of Nimble America: “I am committed to the principles of fair play and equal treatment. I did not write the ‘NimbleRichMan’ posts, nor did I delete the account. Reports that I am a founder or employee of Nimble America are false. I don’t have any plans to donate beyond what I have already given to Nimble America. Still, my actions were my own and do not represent Oculus. I’m sorry for the impact my actions are having on the community.”
The original Daily Beast article, however, confirmed that Luckey was indeed the man behind “NimbleRichMan” and author Gideon Resnick reiterated that fact on his Twitter account today.
Here is where I sought that clarification from him and what he said. pic.twitter.com/pPfLKUX5Cg
— Gideon Resnick (@GideonResnick) September 24, 2016
One more email: Luckey clearly states in here that the NimbleRichMan account represents him. pic.twitter.com/RC4mXPFDkM
— Gideon Resnick (@GideonResnick) September 24, 2016
So it’s essentially Resnick’s word against Luckey’s, but Oculus Head of Content Jason Rubin urged people to take Luckey at his word. “I wanted to give @PalmerLuckey a chance to respond before I posted… knowing Palmer, I take him at his word,” Rubin tweeted, adding, “30 years in the Game business I would not work in a place that I thought condoned or spread hate. Nor would I remain silent if I saw it.”
Denials from Luckey and support from Oculus colleagues aside, the development community is already reacting, and some are pulling support for the Rift. Polytron, which is making a VR game called SuperHyperCube, noted on Twitter that it will not be supporting Oculus now. Scruta Games took it one step further, asking that Luckey leave the company he founded: “Until @PalmerLuckey steps down from his position at @oculus, we will be cancelling Oculus support for our games,” the developer said. Tomorrow Today Labs issued a similar sentiment: “Hey @oculus, @PalmerLuckey’s actions are unacceptable. NewtonVR will not be supporting the Oculus Touch as long as he is employed there.”
Edge of Nowhere developer Insomniac Games said it “condemns all forms of hate speech” and issued the following statement to Polygon as well: “While everyone has a right to express his or her political opinion, the behavior and sentiments reported do not reflect the values of our company. We are also confident that this behavior and sentiment does not reflect the values of the many Oculus employees we work with on a daily basis.”
Not all developers are punishing Oculus for Luckey’s actions, however. James Green, co-founder of VR developer Carbon Games, commented to Motherboard, “This backlash is nonsense. I absolutely support him doing whatever he wants politically if it’s legal. To take any other position is against American values.”
Oculus has had a number of obstacles to overcome on its path to retail, with Rift headsets not making it out to Kickstarter backers for months after launch and some consumers feeling that they had been misled on what the actual price of the unit would be. Luckey admitted that he “handled the messaging poorly” back in January, and now just as manufacturing of the headset has finally improved and the flow of software has started to increase as the company prepares to launch its Oculus Touch controllers, this PR storm and accusations that its founder is vice president of a racist, pro-Trump organization could represent a significant setback. It’s going to be interesting to see how this all plays out in the next few weeks and as we head into the holiday shopping season.
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.
MediaTek has some decent network products and Asus and Xiaomi have a few midrange routers based on its SoC (system on a chip). Now it looks likely that Microsoft’s One S will use two MediaTek SoCs for wireless connectivity.
It has been a while since IFIXIT tore apart the Xbox One S but no one really noticed that the wireless component of the console came from MediaTek.
The Xbox One S looks like a nice console, worth the investment and was a good design win for AMD as it has an AMD APU inside. There are two chips from MediaTek, inside – firstly, the MT7632TUN, which is probably a variation of the MT7632 wireless chip supporting 2×2 802.11n + Bluetooth 4.0 Module. It is interesting that Xbox uses a 2×2 MIMO approach as this will make the 801.11n wireless much faster than before.
The second chip is MediaTek’s MT7612UN which is likely a variant of 802.11ac 2×2 MIMO that will again make things much faster in the 5GHz band and getting closer to 1Gbps speeds with the ac.
MediaTek won some business with Amazon tablets last year, and adding Microsoft to its portfolio definitely means a lot for the company and boosts its wireless image.
Xbox One S should be available in the western part of Europe within the next three weeks and Amazon Germany claims to start shipping on the September 22. US customers can get one today and it starts at $269.99 for 500 GB + Halo bundle and it jumps to $349.99 Xbox One S 1TB Console – Madden NFL 17 Bundle or $359.99 for Xbox One S 2TB Console – Launch Edition.
Number crunchers working for Jon Peddie Research (JPR), the industry’s research and consulting firm for graphics and multimedia have noted that during the second quarter AMD gained market share in the add-in board (AIB) market.
But while AMD fans might be cheering, and while Nvidia fanboys work out ways they can beat them up after school, JPR says that over all the AIB market decreased.
For those who came in late, AIBs using discrete GPUs are found in desktop PCs, workstations, servers, and other devices such as scientific instruments. They are sold directly to customers as aftermarket products, or are factory installed by OEMs.
AIBs are the higher end of the graphics industry with their discrete chips and private, often large, high-speed memory, as compared to the integrated GPUs in CPUs that share slower system memory.
The PC add-in board (AIB) market now has just three chip (GPU) suppliers which also build and sell AIBs. The primary suppliers of GPUs are AMD and Nvidia. There are 48 AIB suppliers, the AIBOEM customers of the GPU suppliers, which they call “partners”.
JPR has been tracking AIB shipments quarterly since 1987-the volume of those boards peaked in 1999, reaching 114 million units, in 2015, 44 million shipped.
The news for the quarter was encouraging and seasonally understandable, quarter-to-quarter, the AIB market decreased -20.8 percent (compared to the desktop PC market, which increased 2.5%), the report said.
AIB shipments during the quarter decreased from the last quarter -20.8 percent, which is below the ten year average of -9.7 percent.On a year-to-year basis, it found that total AIB shipments during the quarter rose 0.8 percent, which is greater than desktop PCs, which fell -0.2 percent, JPR added.
In spite of the overall PC churn, which is mostly because of tablets and embedded graphics, the PC gaming momentum continues to build and is the bright spot in the AIB market.
The overall GPU shipments (integrated and discrete) is greater than desktop PC shipments due double-attach-the adding of a second (or third) AIB to a system with integrated processor graphics.
Another reason is the increase in dual AIBs in performance desktop machines using either AMD’s Crossfire or Nvidia’s SLI technology Improved attach rate. The attach rate of AIBs to desktop PCs has declined from a high of 63 percent in Q1 2008 to 34 percent this quarter, a decrease of -22.7 percent from last quarter which was negative. Compared to this quarter last year it increased a single miserable percentage point.
This research said that the global GPU market demand in Q2’16 decreased from last quarter, and decreased from last year, to 83.32 million units.
“In recent years, as the gaming ecosystem is shaping up, software and hardware developers, information service providers, and even governments have been attempting to unearth market opportunities coming from this new arena. However, global PC shipment volume is forecast to fall further,” the report said.
Last week, Remedy tapped Tero Virtala to be its new CEO and said he would guide the Quantum Break studio’s move to developing multiple projects simultaneously. Virtala recently spoke with GamesIndustry.biz to flesh that idea out a little more and provide other details about his vision for the company’s future.
To start with, Virtala acknowledged that Remedy had intended to make a move into multiproject development for a while.
“This idea has lived for such a long time, but naturally, Quantum Break being such an ambitious and big project, it took most of the resources, people, the energy, most of the money the studio has been using for a long time,” Virtala said. “Now Quantum Break has been made and there is a new phase clearly starting for the company. As this strategic path has been discussed, it’s a commonly shared view that going for multiple projects is the way the people at the company want to go. And it also makes a lot of sense.”
Even though Remedy managed to put out the digital release Alan Wake’s American Nightmare and free-to-play mobile game Agents of Storm while Quantum Break was in the works, it’s clear much of the studio’s focus was on its Xbox One title. As Virtala explained, Quantum Break was an immense task for the studio: a new IP on a new platform with new gameplay mechanics and new tech, all paired with a new transmedia approach that would see a four-episode live-action serial created alongside the game.
“You take so many new things at one time and it made sense to focus on just one big project at a time,” Virtala said. “Now when we fast-forward to this moment, there’s so much more experience and skills, competencies that we can use with what we’ve learned. Also, the technology and tools we’ve developed are much further along and much more reusable than they used to be. So that built a base we can utilize, and then you take what else is needed for two projects.”
The studio’s old method of focusing on one big game for as long as five years at a time just isn’t sustainable in the long run, particularly when Remedy prides itself on cutting edge technology and envelope-pushing creativity.
“The industry’s developing so fast,” Virtala said. “On the one hand, there are so many great games out there, so when you’re bringing your game out, it has to stand out. It has to be unique. It has to be [high] quality. And if our studio is focusing on one project only, we’re putting all our people there. It usually means the length of the project grows, and if you take four or five years to develop a game, it’s a very risky game. You start the project with certain assumptions of the market, and in four or five years’ time in this type of creative, technology-driven industry, it changes so fast.”
That approach was also limiting the partners Remedy could work with. Virtala had nothing but great things to say about long-time partner Microsoft, but a relationship like that with a single-project studio would necessarily keep the company from collaborating with other publishers. And of course, Remedy fans would probably like more than one new game every five years or so.
Virtala wants Remedy to make more games, and he wants a shorter development cycle for those games. At the same time, he stressed, “We stay loyal to the strengths we have in this industry,” which he interprets as excellent games with a distinctive quality, visually impressive and immersive worlds populated with compelling characters.
As for how Remedy can deliver content to the same quality on a much shorter time scale, Virtala didn’t give many specifics. The company has a headcount of 125 people with another 15 open positions, but Virtala declined to say if there were plans to dramatically expand the staff size. As for doing more with the same amount of people, he did note that the technology and tools that have been developed for Quantum Break over the past five years can be used in future games, so “we are definitely able to provide AAA quality in a shorter time than we have before.”
He was similarly careful when talking about whether the shorter development cycle would be achieved by changing the types of games Remedy makes. The company is exploring “new game mechanics” that
Google is believed to be spending a small fortune getting content ready for the platform, particularly video games and apps, licensing sports leagues and shooting 360-degree videos.
Daydream is being hardwired into Android 7.0 which launched this week. Google says that Samsung, HTC, ZTE, Huawei, Xiaomi, Alcatel, Asus and LG had agreed to make “Daydream ready” smartphones.
Google wants the software to be the Android of VR. It will provide a VR platform and other outfits will create the hardware and its Android chums will configure their smartphones to run the beast. But while the product is nearly good to go, so far no one has put their hand up and said they will be making headsets specifically for the platform.
The VR market is getting crowded from Facebook, Sony, Samsung Electronics and HTC. However there are a limited number of apps and even fewer games. Sony’s Morpheus headset is tethered to its PlayStation video-game console, but Google is focused on lower quality mobile-based VR, whereby consumers snap their phones into a visor or headset. With the headset on, Daydream presents users with an array of apps, from YouTube to HBO Now.
While we were hoping to see it bundled with some recently launched Polaris-based graphics cards, it appears that AMD wants to give some love to those that decide to buy AMD’s FX-series CPUs.
To be available in most popular retail/e-tail stores, the bundle will include a copy of the new Deus Ex: Mankind Divided game with a purchase of a 6- or 8-core AMD FX CPU. According to details provided by AMD, the promotion will run from August 23rd to November 14th or until the supply lasts.
Currently, some of the hot AMD FX-series CPUs like the 6-core FX-6300 or 8-core FX-8320 are selling for as low as US $100 and US $130, so bundling a US $60 game sounds like a really good deal.
Hopefully, AMD will decide to bundle the game with some of its Polaris-based graphics cards after Deus Ex: Mankind Divided gets its DirectX 12 patch later in early September.
Sony is over the hump. That’s the message that the company wanted investors and market watchers to understand from its presentations earlier this week. Though it expressed it in rather more finessed terms, the core of what Sony wanted to say was that the really hard part is over. Four years after Kaz Hirai took over the corporation; the transition – a grinding, grating process that involved thousands of job losses, the sale or shuttering of entire business units and protracted battles with the firm’s old guard – is over. The restructuring is done. Now it’s time for each business unit to knuckle down and focus on profitability.
It’s not all sunshine and rainbows, of course; even as Hirai was essentially declaring “Mission Complete” on Sony’s seemingly never-ending restructuring, the company noted that it’s expecting sales in its devices division (largely focused on selling Xperia smartphones) to decline this year, and there are concerns over soft demand for products from the imaging department, which provides the camera components for Apple’s iPhones among others. Overall, though, Sony is in a healthier condition than it’s been in for a long time – and it owes much of that robust health to PlayStation, with the games and network services division’s revenue targets rising by enough to make up for any weakness in other divisions.
When Hirai took over Sony, becoming the first person to complete the leap from running PlayStation to running Sony itself (Ken Kutaragi had long been expected to do so, but dropped the ball badly with PS3 and missed his opportunity as a consequence), it was widely expected that he’d make PlayStation into the core supporting pillar of a restructured Sony. That’s precisely what’s happened – but even Hirai, surely, couldn’t have anticipated the success of the PS4, which has shaved years off the firm’s financial recovery and given it an enviable hit platform exactly when it needed one most.
Looking into the detail of this week’s announcements, there was little that we didn’t already know in terms of actual product, but a lot to be read between the lines in terms of broad strategy. For a start, the extent of PlayStation’s role as the company’s “pillar” is becoming ever clearer. Aside from its importance in financial terms, Sony clearly sees PS4 as being a launchpad for other devices and services. PlayStation VR is the most obvious of those; it will start its lifespan as an added extra being sold to the PS4’s 40 million-odd customer base, and eventually, Sony hopes, will become a driver for additional PS4 sales in its own right. The same virtuous circle effect is hoped for PlayStation Vue, the TV service aimed at PlayStation-owning “cable cutters”, which has surpassed 100,000 subscribers and is said to be rapidly growing since its full-scale launch back in March.
Essentially, this means that two major Sony launches – its first major foray into VR and its first major foray into subscriber TV – are being treated as “PlayStation-first” launches. The company is also talking up non-gaming applications for PSVR, which it sees as a major factor from quite early on in the life cycle of the device, and is rolling out PlayStation Vue clients for other platforms – but it’s still very notable that PlayStation customers are being treated as the ultimate early adopter market for Sony’s new services and products.
To some degree, that explains the company’s desire to get PS4 Neo onto the market – though I maintain that a cross-department effort to boost sales of 4K TVs is also a key driving force there. In a wider sense, though, Neo is designed to make sure that the platform upon which so much of Sony’s future – games, network services, television, VR – is being based doesn’t risk all of those initiatives by falling behind the technology curve. Neo is, of course, a far less dramatic upgrade than Microsoft’s Scorpio; but that’s precisely because Sony has so much of its corporate strategy riding on PS4, while Microsoft, bluntly, has so little riding on Xbox One. Sony needs to keep its installed base happy while encouraging newcomers to buy into the platform in the knowledge that it’s reasonably up-to-date and future proof. Microsoft can afford to be rather more experimental and even reckless in its efforts to leapfrog the competition.
Perhaps the most impressive aspect of Sony’s manoeuvring thus far is that the company has managed to position the PlayStation as the foundation of such grand plans without making the mistake Microsoft made with the original Xbox One unveiling – ignoring games to the extent that the core audience questioned whether they were still the focus. PSVR is clearly designed for far more than just games, but the early focus on games has brought gamers along for every step of the journey. PlayStation Vue, though a major initiative for Sony as a whole, is a nice extra for PlayStation owners, not something that seems to dilute the brand and its focus. On the whole, there’s no sign that PlayStation’s new role at the heart of Sony is making its core, gaming audience love it any less.
On the contrary; if PlayStation Plus subscriptions are any measure, PlayStation owners seem a pretty happy bunch. Subscriptions topped 20 million recently, according to the firm’s presentation this week, which means that over 50% of PS4’s installed base is now paying a recurring subscription fee to Sony. PlayStation Plus is relatively cheap, but that’s still a pretty big chunk of cash once you add it up – it equates to an additional three or four games in the consoles attach ratio over its lifetime, which is nothing to be sniffed at, and will likely increase the profitability of the console by quite a few percentage points. In Andrew House’s segment of this week’s presentation, he noted that the division is shifting from a packaged model towards a recurring payments model; PlayStation Plus is only one step on that journey and it’s extremely unlikely that the packaged model (be it digital or a physical package) will go away any time soon, but it does suggest a future vision in which a bundle of subscriptions – for games, TV, VR content and perhaps others – makes up the core of many customers’ transactions with Sony.
That the truly painful part of Sony’s transition is over is to be celebrated – a healthy Sony is a very good thing for the games business, and we should all be hoping Nintendo gets back on its feet soon too. The task of the company, however, isn’t necessarily about to get any easier. PS4’s extraordinary success needs to be sustained and grown, and while early signs are good, the whole idea of using PlayStation as a launchpad for Sony’s other businesses remains an unproven model with a shaky track record (anyone remember the ill-fated PSX, a chunky white PVR with a PS2 built into it that was supposed to usher in an era of PlayStation-powered Sony consumer electronics?). But with supportive leadership, strong signs of cooperation from other parts of the company (the first-party Spiderman game unveiled at E3 is exactly the kind of thing the relationship between PlayStation and Sony Pictures should have been yielding for decades) and a pipeline of games that should keep fans delighted along the way, PlayStation is in the strongest place it’s been for over a decade.