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BBC Ponders Another Games Industry Crash

weirdguy writes with a link to a BBC article that poses the same question asked by journalists every couple of years: is the games industry headed for another crash? "Yes, gamers are snapping up the new generation of games consoles — Microsoft's Xbox 360, Nintendo's Wii, and Sony's Playstation 3 [PS3], but at huge cost to the industry. Hardware makers are losing hundreds of dollars on every console sold, and games publishers face an "increasingly difficult environment, as rising development costs and small user bases [mean] that return on investment in next generation games development is unlikely to be achieved before 2008," according to media analysts Screen Digest. More importantly, though, the video games publishers are facing a revolution of their business model."

219 comments

  1. eh... by Dance_Dance_Karnov · · Score: 5, Insightful

    Nintendo figured out the secret to not losing money. They make money. Crazy I know.

    1. Re:eh... by wframe9109 · · Score: 5, Insightful

      Not to mention the fact that up front development costs are smaller for the Wii... And I would imagine development costs and time would be lesser as well, seeing that there is less horsepower to work with, and thus spending days getting the acne or sweat right would be pointless.

      In any case... It's a good time to be a gamer :)

    2. Re:eh... by TKOTolman · · Score: 1

      So if Nintendo lost the "next gen war" sales they would still win. What a novel idea to "make money" on your product.

    3. Re:eh... by wframe9109 · · Score: 1, Insightful

      You just compared an entire gaming platform, to a single purpose toy.

      I suppose I could argue every other sentence which you somehow managed to get wrong, but that would be easier :-) /PC Gamer //Wii Gamer

    4. Re:eh... by HappySqurriel · · Score: 5, Insightful

      It's a good thing they're not losing money on those consoles, cause they're certainly not making any on games. What's the only game 90% of the Wii owners are playing? Wii sports. And are they buying others? Nope, because the gimmick pretty much ends there. Oh, wait, some people got Wii Play. Oh, sorry, right, and some other people bought into the princess franchise, recycled elf adventure game #41.


      Well, according to NPD the Wii has had 5,758,750 games sold to 2,107,500 systems in North America to the end of February which works out to 2.75 games per system above and beyond Wii sports; this (of course) doesn't include sales of Virtual Console games and (last time any data was reported) Wii points cards were one of the most popular accessories being sold.

      "Nintendo makes games that are fun! I can get all these awesome things on virtual console!" All the Nintendo zealots are welcome to enjoy paying $10-$20 per title for games they already bought 20 years ago because they're "more fun" and "more creative", while all the while ragging on Microsoft and Sony for selling games that "look pretty but aren't fun".


      Well, the price is $5 to $10 and a lot of the games are considered some of the best games ever created. Personally, I never owned a Turbo Graphics 16 or Sega Genesis so I'm happy to put down $5-$10 for a game I haven't played before which is considered to be amazing.

      People will get tired of the Wii's one-trick-pony and Furby-inspired "marketing" campaign soon enough, about the same time they realize that plugging a system into their HDTV that actually looks good improves their enjoyment of rehashed game ideas more than a repetitive strain inducing controller.


      I think you don't understand the Wii at all ...

      People are tired of the rehashed game idea regardless of whether it is in HD, SD or uses limited Wii functionality; the games people are excited about are the ones which are breaking new ground. There is a reason why Rayman Raving Rabids, Madden and Red Steel are the best selling third party games to date and that is because they offer gameplay that couldn't be done on the PS3 or XBox 360.

      And you know what the BEST part of that will be? Not having to see 12 identical comments pop up on Slashdot with the exact same "ZOMG LOLOLOLOL I LOVE NINTENDO! ROFL MSONY SUX LOL!" remarks as soon as any article about platform differences shows up. Sure, it'll mean the two anti-Nintendo trolls like this will disappear, too, but at least these posts break the trend.


      This would probably have more meaning if you weren't the same Anonymous Coward Sony Fanboy Troll that has been proclaiming the doom of the Wii since TGS 2005. Right now I think you're caught between the denile stage and rage stage on your way towards acceptance.
    5. Re:eh... by CastrTroy · · Score: 2, Insightful

      Which is why I don't think Nintendo was a loser with the GC. Sure they sold the least number of unit, but they made a whole lot more money out of the GameCube than MS made on the XBox. Not sure how well they did compared to Sony, but Sony sold lots more units, so I think they ended up OK in the end. To make a car analogy, it doesn't matter that Porsche sells less cars than Ford, as long as their making money doing what their doing. The big 3 US automakers seem to be the ones in financial trouble, even though they sell quite a few cars.

      --

      Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
    6. Re:eh... by EmperorKagato · · Score: 1

      Go back to your blog anonymous coward.

      By the way, I heard Paper Mario 2 for the Wii is very good.

      --
      ----- You know you have ego issues when you register a domain in your name.
    7. Re:eh... by Impy+the+Impiuos+Imp · · Score: 1

      > You just compared an entire gaming platform, to a single purpose toy.

      Yes, that was his point. Hence phrases like "one trick pony".

      A powerful trick that sells well, but, like Guitar Hero, a single-trick novelty.

      --
      (-1: Post disagrees with my already-settled worldview) is not a valid mod option.
    8. Re:eh... by lpangelrob · · Score: 3, Funny

      Right now I think you're caught between the denile stage and rage stage on your way towards acceptance.

      Interesting... I've also heard that denile could be a river in Egypt...

    9. Re:eh... by MeanderingMind · · Score: 2, Informative

      It's not Paper Mario 2. That was Paper Mario and the Thousand Year Door for the Gamecube.

      The Paper Mario game on the Wii is either Paper Mario 3, or it's own game (given that it's primarily a Platformer rather than an RPG).

      And yes, it is good. Although I've found myself longing for another Paper Mario game in a pure RPG fashion.

      --
      Thunderclone: ONE MAN ENTERS! TWO MEN LEAVE! ONE MAN ENTERS! TWO MEN LEAVE!
    10. Re:eh... by TKOTolman · · Score: 1

      PM2 is a must have for any fan of the original Mario on the classic NES. It has much more of a classic feel to it then an RPG feel like PM1 had. If I did not have a Wii I would buy one just for this game.

    11. Re:eh... by wframe9109 · · Score: 3, Insightful

      Yes, but how can a gaming platform be a "one trick pony?"

      I mean...

      Personally I see:

      Entire Collection of Wii Games
      Entire Collection of GameCube Games
      Entire Collection of Virtual Console Releases

      Even if it were only Wii games, it couldn't be a "one-trick pony" unless that one trick is playing a library of different games?

    12. Re:eh... by MeanderingMind · · Score: 2, Funny

      You mean like Mario Andretti Racing?

      --
      Thunderclone: ONE MAN ENTERS! TWO MEN LEAVE! ONE MAN ENTERS! TWO MEN LEAVE!
    13. Re:eh... by Danse · · Score: 5, Insightful

      A powerful trick that sells well, but, like Guitar Hero, a single-trick novelty.

      Guitar Hero is a good game. It's fun. What else is it supposed to be? Do you want it to make you breakfast too? Change your oil maybe? What exactly is it that you're expecting from a game?
      --
      It's not enough to bash in heads, you've got to bash in minds. - Captain Hammer
    14. Re:eh... by Broken+scope · · Score: 1

      .....
      Why did you have to do that? Why?

      --
      You mad
    15. Re:eh... by hedwards · · Score: 1

      Nintendo also has had a tendency in recent years to make their hardware easy to write code for. Evidenced by the thriving third party games market for the GBA and I believe DS.

      With a memory cart and an internet connection it isn't too hard to find a few freeware games to load on.

    16. Re:eh... by Sciros · · Score: 1

      Well, you said that Madden is one of the best-selling 3rd party titles because "it breaks new ground" but maybe you put a typo there and accidentally typed "Madden" instead of some other Wii title? Because Madden NFL games are some of the best-selling 3rd party titles, period (if not *the* best) across ALL consoles. And that includes PS and Xbox. By the way, more copies of Madden sold on PS and Xbox than on Cube. I imagine this would also be true of 360 vs Wii?

      --
      I like basketball!!1!
    17. Re:eh... by HAKdragon · · Score: 1

      I would still consider Super Paper Mario an RPG (or at least RPG-lite), but the combat is more platform-ish than turn based like traditional console RPGs.

      --
      "Our opponent is an alien starship packed with atomic bombs. We have a protractor."
    18. Re:eh... by Udderdude · · Score: 1

      I think he might have made his point better if he compared another game system instead of just one game. Guitar Hero uses a guitar controller. Almost all Wii games use the Wii controller. However, neither are paticuarly gimmicky .. no more than any other controller, in my opinion. Also, DDR uses it's own controller and people have not tired of that "gimmick" either.

    19. Re:eh... by masterzora · · Score: 1

      The difference here is that EA created a different control interface to take advantage of the Wii controller's technology. It's not just that it's Madden, but that it's Madden using the motion sensing in good capacity. There is no reason to assume that the 360's version of Madden has been sold more than the Wii's version because they are in many ways different games this time around.

      --
      Remember, open source is free as in speech, not free as in bear.
    20. Re:eh... by Anonymous Coward · · Score: 0

      "There is a reason why Rayman Raving Rabids, Madden and Red Steel are the best selling third party games to date and that is because they offer gameplay that couldn't be done on the PS3 or XBox 360."

      That's funny, because Raving Rabbids is also a PS2 game....

    21. Re:eh... by kid_oliva · · Score: 4, Funny

      I think he wants the game to give him a girlfriend...

      --
      I eat Karma for breakfast, lunch, and dinner. That's why I don't have any.
    22. Re:eh... by LKM · · Score: 1

      Have you played Raving Rabbits on the PS2? Sorry, but Grandparent's point holds.

    23. Re:eh... by LKM · · Score: 1

      I loved the first two Paper Mario games (in fact, I only bought the N64 version after I played the Cube version, and I got a N64 just so I could play it). I'm in Europe, so I haven't yet got Super Paper Mario, but I heard that - apart from the combat, which isn't turn-based anymore - the game still plays very similarly to the "old" Paper Marios. Hopefully it's true.

    24. Re:eh... by EmperorKagato · · Score: 1

      Title does not alway dictate game play.

      It may tell you the subject matter, yet if you had no idea that Halo was an FPS shooter you may think it was a game that specialized in skydiving techniques, or the next installment of Kid Icarus.

      --
      ----- You know you have ego issues when you register a domain in your name.
    25. Re:eh... by @madeus · · Score: 1

      I'm still waiting for that add on.

      Seems like a better to get the 360 or Wii version over the PS3 edition though, at least they'll come with a rumble pack.

      "Now with rumble, for HIS pleasure..."

      Of course, once they make a video game console you can have sex with, the human race is doomed to extinction.

    26. Re:eh... by Anonymous Coward · · Score: 0

      Rayman Raving Rabbids on the PS2 is absolutely horrible. The Wii version, while slightly annoying in places, is far more enjoyable.

    27. Re:eh... by Merusdraconis · · Score: 1

      There was a nice point someone made about the Xbox division at the launch of the 360 - if Microsoft personally gave every man, woman and child in America $10, they'd have lost less money than they have on the Xbox.

      I'm not sure how true it is, but it's anti-Microsoft and on Slashdot, I doubt anyone will bother checking the facts.

    28. Re:eh... by Anonymous Coward · · Score: 0

      This would probably have more meaning if you weren't the same Anonymous Coward Sony Fanboy Troll that has been proclaiming the doom of the Wii since TGS 2005. Right now I think you're caught between the denile stage and rage stage on your way towards acceptance.

      To hell with you! You don't know what you are talking about! You are just a frikkin idiot!

      Can we talk about this some more? If I give you the part about the Wii sales then could you please agree that the Wii is crap? I'll mail you a cookie!

      Sigh! Why's it always gotta be like this? Why do these things always happen to me? What did I ever do to deserve this?

      Ah, fuck it.

    29. Re:eh... by walnutmon · · Score: 1

      Listen... I don't want to have to agree with an anon troll, but on this occasion there is some merit to his observations-albeit obscured by incitefull and blatantly biased remarks.

      First off, I own an xBox360 and am not happy with the library of games of that platform either. I like Oblivion, but bought it on the PC afterwords to take advantage of the mouse/keyboard and numerous mods. Smackdown is a fun party game, or at least I think it would be, if I could teach some of my friends how to play it without them getting bored... The same goes for most other sports games, I simply cannot find friends to play with since they don't have the game skills i have, and just can't be competative. As a fun aside, the other day I went to the bathroom as a buddy of mine pounded my KOK: Round 3 boxer, knocking him to the mat, when I returned the count was 8 and imediately got up and as he approached one shot knockdowned him, then he got up came after me one more time, and another one shot knockdown (yes, it was lucky too). I felt like brad pitt from snatch...

      Anyways, back on track... I wanted to get a Wii... Badly. I called around for two weeks and couldn't find one. I was going to buy one the moment one was located, but I just couldn't find one. I live in Buffalo, so it isn't like it's some very small town either. So the impulse died and I decided to wait for more games to come to the system since the only game I really cared about was Zelda.

      In retrospect I am very happy that I couldn't find the system. I enjoyed playing the simple games of my past, but I was a child then. I liked games that you could pick up and play quickly and replay for high scores, but I had more spare time then. I like the fact that the controller scheme is new and different, but I think that we have all seen through the game development of the past 6 months that the Wii may be too underpowered to do the things that I really looked forward to for the system, such as rendering a sword or other kinds of weapon.

      I would love an imersive RPG on the Wii, but I just don't think it is going to have the power, and to be honest, it just doesn't seem like developers have anything like that in mind for the near future.

      The way I see it, the Wii will start to slow down in sales and will eventually be surpassed by PS and xBox, and they will still be successfull and profitable, but will not be the system of choice for people who have been playing games for the past 15 years...

      I like nintendo, and enjoy my DS sometimes, but in general I feel that I have outgrown them. I am no longer a child. If I want to relive my childhood vicariously, i'll play emulated games for free on my PC, not for 5 bucks a pop on my 250 dollar Wii.

      --
      You take it, I don't want it...
    30. Re:eh... by walnutmon · · Score: 1

      I can't believe I agreed with you... on anything.

      --
      You take it, I don't want it...
    31. Re:eh... by walnutmon · · Score: 1

      I'm not sure how true it is, but it's anti-Microsoft and on Slashdot

      Is it possible to get less posts like these? I like information, if I wanted this kind of information, i'd go to digg.com.

      --
      You take it, I don't want it...
    32. Re:eh... by Dr.Boje · · Score: 1

      Nice rebuttal, HappySqurriel. I'm so sick of these fucking prepubescent fanboys trashtalking Nintendo just because they didn't follow the trend in gamemaking to enhance graphics and processing power. Guess what, fellas? Videogaming itself was based on creativity! In the early days of gaming, there was a new genre out practically every month. A NEW GENRE. Not "another new FPS" or "yet another WWII sim" or "a brand new RTS!", but an entirely new genre. I guess at some point it became, for lack of a better word, overwhelming and with the advent of more powerful systems and better graphics, companies started relying on old, proven success formulas to make money and the same crap kept getting regurgitated over and over. Nintendo is really the only company that's been successful at doing innovative things and they've been trying to do so practically their entire company life. The most recent systems that exemplify this are the DS and the Wii, both of which open myriad new doors for creativity and, hopefully, new game genres.

      It's funny -- in the early days when graphics weren't really an issue, gameplay was all you could worry about. This caused developers to HAVE to be creative. The same thing goes with 8-bit music. With only 4 channels to work with, composers had to be very clever if they wanted to make some great music, and many did. Now that all these gaming giants are so caught up in making their games look pretty, creativity has sort of been pushed off to the side. However, the consumers who don't have their heads up their asses realize this, and they are desperate for something new and fresh. If these gaming giants weren't so concerned with making a quick buck, maybe they'd realize that their best bet for making money is to take a leap of faith by being creative and original. FFS!

      People will get tired of the Wii's one-trick-pony and Furby-inspired "marketing" campaign soon enough, about the same time they realize that plugging a system into their HDTV that actually looks good improves their enjoyment of rehashed game ideas more than a repetitive strain inducing controller.

      Get fucking real, buddy. If you want realistic graphics, leave your parents' basement for the first time in 30 years and take a look outside. It's called real life. You can keep believing that graphics are what make a game good if you want, but the rest of us realize that gameplay and creativity are the basis for a fun gaming experience. Oh... and as for your "strain-inducing controller" comment? Not really sure how to break this to you, but maybe you should be more active. You sound like the fatass couch potato type whose sofa has two ass imprints on it -- one cheek for each cushion.

    33. Re:eh... by aplusjimages · · Score: 1

      The 360 and PS3 are looking to downloadable content to be the money maker. Make games last longer by adding downloadable content that you pay for or, in the case of EA, allow gamers to buy their way through a game.

      --
      Can I bum a sig?
    34. Re:eh... by bateleur · · Score: 1

      Of course, once they make a video game console you can have sex with, the human race is doomed to extinction.

      So are you saying you fancy your XBox 360?

      There are plenty of inanimate objects you could theoretically have sex with. Personally, I prefer the real thing. I don't think we're all doomed yet.

    35. Re:eh... by @madeus · · Score: 1

      So are you saying you fancy your XBox 360? So you are saying you thought I was being serious?

      Now that is disturbing.
  2. Nintendo isn't losing money by FadedTimes · · Score: 4, Insightful

    Nintendo doesn't take any loss when someone buys the Wii.

    1. Re:Nintendo isn't losing money by MeanderingMind · · Score: 1

      So they're talking about the PS4 and Xbox 720?

      I really wish this "next-gen" term would die, it only obfuscates meaning. It's an "in word", something only "insiders" understand and "get". Even then, what does it actually mean? It seems to be used for both the current generation of systems (That's right, current. They've been released, it's not "next" anymore) and sometimes to talk about HD.

      I've personally come to loath the term.

      --
      Thunderclone: ONE MAN ENTERS! TWO MEN LEAVE! ONE MAN ENTERS! TWO MEN LEAVE!
    2. Re:Nintendo isn't losing money by Grave · · Score: 1

      Microsoft isn't losing money on the 360 anymore, either. Sony is the only one losing money on their shiny new console.

      Now, the XBOX division itself is still losing money, but that has more to do with the incredible amount of money thrown at developers for support and marketing than it does the hardware. Microsoft didn't make any money from Gears of War, I'd bet. No, they offered Epic a great deal - the best marketing money can buy, and no royalty fees. (That is speculative, but it is not uncommon for deals like that to be made in exchange for exclusives that can help move consoles--which in turn move more software.)

    3. Re:Nintendo isn't losing money by AndersOSU · · Score: 2, Informative

      Neither does Microsoft apparently. So I guess, "Hardware makers" means Sony...

    4. Re:Nintendo isn't losing money by Anonymous Coward · · Score: 0

      Generally retail stores buy product at 40-50% off of the suggested retail. With a standard retail of $250, and a cost of $158, 250/158 = 0.632. Meaning retail only gets a 36.8% margin. While this is not good it is believable to me. This implies that Nintendo is making nothing, off of each Wii, and would actually be loosing money if they gave retail a better (closer to standard) margin, or spent ANY money on marketing, or shipping, or packaging, etc. Yes they may be loosing less money than Microsoft or Sony, they are probably not making money on the Wiis themselves.

    5. Re:Nintendo isn't losing money by HAKdragon · · Score: 4, Funny

      I would hope that Microsoft doesn't take a loss when somebody buys a Wii, or the console market is more cut throat than I thought. ;)

      --
      "Our opponent is an alien starship packed with atomic bombs. We have a protractor."
    6. Re:Nintendo isn't losing money by Anonymous Coward · · Score: 0

      Generally retail stores buy product at 40-50% off of the suggested retail. With a standard retail of $250, and a cost of $158, 250/158 = 0.632. Meaning retail only gets a 36.8% margin.

      That may be generally true, but it's nothing like that for consoles. Consoles are often sold at near cost by retail outlets in order to get the sales of games & accessories (which have a higher markup...though nowhere near 50%).

      Engadget claims that the retail markup on a Wii is only $12.50. That leaves plenty of profit for Nintendo:

      http://www.engadget.com/2006/10/07/wii-retail-deta ils-markup-and-endcaps/
    7. Re:Nintendo isn't losing money by Anonymous Coward · · Score: 0

      I laugh every time someone jumps up to mention this piece of information. The fanboys always seem to use it as a weapon in their arguments as to why Nintendo is "teh bestest". "But Sony and MS LOOSE money on there consoles! Nintendo MAEKS teh money!!"

      As a consumer, why would you even CARE how much money the company makes or loses on the product? Does it somehow affect your enjoyment of it? Are the games magically more fun knowing that the parent company is making more money off you??

    8. Re:Nintendo isn't losing money by AK+Marc · · Score: 1

      Generally retail stores buy product at 40-50% off of the suggested retail.

      That sounds about right for clothing, but not for electronics. Electronics are much lower, and can even be as low as 10% or less for the gross margins. Especially for gaming, the consoles will be at a lower margin, and the games and accessories at higher margins.

    9. Re:Nintendo isn't losing money by wellingj · · Score: 1

      Actually in a way they do....unless you are one of those geeks who buys more than one videogame system....
      *runs and hides*

    10. Re:Nintendo isn't losing money by Anonymous Coward · · Score: 0

      This is an article on how well consoles are doing, not how much you are enjoying the console. So, the mention that Nintendo is not losing money is quite valid.

    11. Re:Nintendo isn't losing money by Anonymous Coward · · Score: 0

      Not selling a console at a loss causes the fanboy's epenis to increase in size .5mm

      HTH

    12. Re:Nintendo isn't losing money by donaldm · · Score: 1

      Are you really sure Sony is loosing money on their console?

      I know many so called bloggers' and games magazines are stating that with cost breakdowns however if you do some comparisons the write-ups are nearly identical (plagiarism anyone!) and the seem to be concentrating on cost to the public or some badly (IMHO) thought out cost. When you are a large electronics manufacturer and Sony is then your overall costs are going to be much smaller than if you or I walked onto an electronics shop and asked for a particular electronic part.

      Consider the Cell chip it has cost US%500M+ to develop this however the cost is actually shared between Sony, IBM and Toshiba, so once you start fabricating it the overall cost is basically the raw materials (mainly silicon on insulator - approx US$1000/30cm diam wafer) and some doping materials (not sure n cost here - can anyone supply this?) plus the overall cost of the fabrication plant (approx US$5M to US$15M) and it's running costs. Providing you are producing millions (and Sony, IBM and Toshiba are) then overall costs/chip are not that expensive. Of course if you increase the yield (ie reduce from 90nm to 65nm) the costs come down dramatically.

      Now to Bluray. If you walk into a shop and get a Bluray ROM you are going to pay approx US$10 to US$20 but if you are a games producer who is going to stamp out about one million games then your cost per BD disk is going to be in the US$0.5 to US$1.00 mark (this is very much like the costs associated with DVD's when they first came out).

      Now getting back to if Sony is loosing money per console. IMHO I think they are but how much I don't know and only Sony can tell you that and they won't (Lets get real here why should they). To put this in a better perspective the PS2 was initially sold at a loss (it was quite small) and of course all the game writers though they were losing big time (they were wrong) but in a few months Sony was making a profit on every console sold. The only company that lost money big time was Microsoft on their Xbox to the tune of US$5B. Microsoft was willing to loose this amount to get into the lucrative console gaming market.

      --
      There ain't no such thing as proprietary standards only proprietary formats. Standards are by definition open.
    13. Re:Nintendo isn't losing money by CarpetShark · · Score: 1

      That's because Nintendo thought about what it could afford to create, and what customers would buy as a games machine --- the traditional approach to selling something.

      Sony, and MS in particular, seem to have entirely different goals: getting a foothold of an entertainment audience by selling something to kids, and having them grow up with it. As such, they're prepared to have a loss at the beginning, as long as the kids like MS when they're old enough for office machines and purchasing decisions, or as long as they'll boost the market for Sony's Bluray.

  3. Nintendo by cyphercell · · Score: 3, Funny

    This would be where Nintendo laughs on it's way to the bank.

    --
    Under the influence of Post-Cyberpunk Gonzo Journalism
    1. Re:Nintendo by shoptroll · · Score: 1

      *inserts "It Prints Money" image macro*

      --
      Insert Sig Here
    2. Re:Nintendo by Mockylock · · Score: 1

      My guess is IBM is laughing it's way all the way to the bank. They manufacture processors for all 3 systems.

      --
      "Please, shut up. Just when I think you can't say anything more stupid, you speak again." -Archie Bunker.
  4. This isn't new by wampus · · Score: 1

    I was under the impression that most consoles have been loss-leaders for some time now, at least at launch, with the real money coming from licensing.

    1. Re:This isn't new by cyphercell · · Score: 1

      I think the difference is at which point the consoles become profitable. The 360 and PS3 are going to be leading for a while and the question is whether or not market penetration will make up for the losses. I think it's safe to assume that Microsoft will be able to survive. Once again reiterating the fact that this gen of consoles has Sony fighting it's way out of a corner.

      --
      Under the influence of Post-Cyberpunk Gonzo Journalism
    2. Re:This isn't new by Guppy06 · · Score: 1

      "I was under the impression that most consoles have been loss-leaders for some time now, at least at launch, with the real money coming from licensing."

      "It's the way things have always been done" doesn't mean it's sustainable.

    3. Re:This isn't new by ADRA · · Score: 1

      From my recollection, PS2 was the first console to be sold at a loss for launch. After maybe the first year they started making profits on the unit. The xbox units have never made a profit off just the hardware. Maybe the make it up in Live, which could arguably be considered a part of the hardware depending on your mindset. For Nintendo, I was under the impression that they make it their mission to not sell consoles at a loss. I don't know specifically if they've ever had first year losses like the PS2 did.

      --
      Bye!
    4. Re:This isn't new by rjung2k · · Score: 1

      The only Nintendo console to be sold at a loss, from what I heard, was the Gamecube -- and the loss was only $10 per unit.

    5. Re:This isn't new by SethraLavode · · Score: 1

      The loss taken on the GameCube was only immediately after the price drop to $99. The system was reengineered shortly afterward(removing the digital video out, etc.) to bring it back to profitability.

    6. Re:This isn't new by Akaihiryuu · · Score: 3, Informative

      Urban legend. The first console to ever be sold at a loss was the Sega Saturn (it lost around $100 IIRC). The Playstation was profitable from day 1. The Dreamcast followed the Saturn model in an attempt to recapture market share...even though it was successful it lost a ton of money and drove Sega out of the hardware business. The PS2 was profitable from day 1. The Xbox followed the Sega model (only difference is that Microsoft could afford to write off the loss). The 360 lost money at first (not sure how it's doing now). The PS3 is losing more money per console than any manufacturer has ever done before. The Wii is profitable on hardware. Before the Saturn, the concept of "selling hardware at a loss and making it up on the games" was absolutely unheard of. This rumor got started because when Sony announced the launch price of the PS1 in the US, it was quite a bit cheaper than in Japan at the time (but the launch was still months away and costs dropped in the meantime - they were thinking ahead). Atari accused Sony of "dumping", claiming that the PS1 was going to be sold below cost when it actually wasn't...due to costs dropping significantly before the launch. Sega dropped the price of the Saturn to $299 when the PS1 launched, thus they were the first to start losing money.

  5. Wii is not a loss leader . . . by div_2n · · Score: 4, Informative

    Hardware makers are losing hundreds of dollars on every console sold

    Since the Wii allegedly only costs about $158 to make and is sold for $200, I don't find a compelling reason to take the rest of the article seriously.

    1. Re:Wii is not a loss leader . . . by LWATCDR · · Score: 4, Interesting

      Nintendo's plan,
      1. Sell the console for a profit,
      2. Make fun games.
      3. Make it cheap and easy to develop for.
      4. Profit.

      I still find it all very interesting. I still see the occasional article about how the PS3 will win in the end but I don't know anyone with a PS3 yet but I know a lot of people that have 360s and that want Wiis.

      I predict that Microsoft will win the hardcore gamer market and possibly the video delivery market. The Wii will win the broad based gamer market. IE even the hard core gamers will have a Wii next to their 360.
      Sony I just don't know. They may end up in third place this time.

      --
      See my blog http://ilovecookes.blogspot.com/ for light hearted technical information.
    2. Re:Wii is not a loss leader . . . by Ant+P. · · Score: 1

      Sorry, but 3 should be "?????", unless Nintendo released a linux dev kit for free without anyone noticing.

    3. Re:Wii is not a loss leader . . . by Floritard · · Score: 1

      The Nintendo dev kit is ~$2000 which is like an order of magnitude cheaper than the competition AFAIK. And to the parent, I paid $270 for my Wii...

    4. Re:Wii is not a loss leader . . . by shoptroll · · Score: 4, Interesting

      I think your prediction is on target if the current trends stay the course. They did a poll on GameFaqs a day or two ago asking who owned what "next-gen" system. The ranking (from top pick decresing) goes: None, Wii, XBox360, Xbox360 + Wii, PS3, All 3, PS3 + Wii, and finally PS3 + Xbox360. I'm not going even going to suggest that this is the most accurate polling system ever to grace mankind. Here's the poll results: http://www.gamefaqs.com/poll/index.html?poll=2722

      That said, I would not classify GameFaqs as a casual gamer's haven. Most of the traffic is going to be generated by Hardcore gamers looking for info. Maybe casual players looking for info on Zelda or Final Fantasy, but if you look at the Top 10 lists, this isn't casual corner.

      So, the Wii is making inroads on the hardcore gamer. Actually, I'm surprised that the system is the only next-gen system in almost 25% of the responses. With 17% dual-booting with the Wii60 combo and about 12% going it alone with the 360, I think it's very very understandable why there have been a large number of PS3 exclusives going multi-platform. Sony has, for lack of a better word, been shunned big time by the community at large.

      However, it's still to early to tell if we're truly in the middle of a paradigm shift. Nintendo's strategy of appealing to a large audience with a cheaper system is obviously working. MS is holding their own, and Sony can easily get back into the game if they want to. This is still too close to call.

      --
      Insert Sig Here
    5. Re:Wii is not a loss leader . . . by Anonymous Coward · · Score: 0

      So how much are they profiting when you factor in how much the stores are actually paying for them (they have to make a profit too, you know), and any costs between the manufacturer and distributor.

      It would be optimistic to say they break even.

    6. Re:Wii is not a loss leader . . . by CastrTroy · · Score: 1

      Also, there's a lot of people that want Wiis, but can't find them. On the other hand, if you want a PS3, it's quite easy to find one. And still, nobody is buying them.

      --

      Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
    7. Re:Wii is not a loss leader . . . by Anonymous Coward · · Score: 0

      The Wii is $250USD

    8. Re:Wii is not a loss leader . . . by earthbound+kid · · Score: 1

      I predict that Microsoft will win the hardcore gamer market and possibly the video delivery market.

      US or Japan? I agree with you if we're talking about the US market, but the 360 is dead in Japan in spite of already having some great releases out. In Japan, Wii is already the best selling next-gen home console, but the PS3 has also overtaken the 360. Now, I guess it's possible that the 360 will bounce back in Japan, but I just wonder why it hasn't done that well yet. I think what we're going to be looking at is a market split with Japan lining up behind the Wii and PS3 but the US going for the 360 and Wii. Nintendo will laugh all the way to the bank, and the next next gen systems will all be launched a little early (4 years instead of 5) and the market will reconfigure again.

    9. Re:Wii is not a loss leader . . . by tepples · · Score: 1

      The Nintendo dev kit is ~$2000 which is like an order of magnitude cheaper than the competition AFAIK. The Windows dev kit is $900 for a PC+OS+monitor+keyboard+mouse and $10 for someone burning a copy of Dev-C++. And did you forget that Nintendo states on warioworld.com that it sells dev kits only to studios with a leased office space detached from the residence (that is, not home-office microstudios that are looking to get their shareware into Wii Shop Channel)?
    10. Re:Wii is not a loss leader . . . by Maxwell · · Score: 0, Troll

      That site has a ton of XBOX360's in stock, so I guess they aren't selling either. And holy cow, look at the DVD's sitting on the shleves at Best Buy. Obviously NO ONE is buying DVD's anymore! Otherwise they would be sold out....right?

      The BB in downtown toronto had 15 ps3's last week. (And dozens of PSP's and DS's.) This week they have 2 PS3's left so SOMEONE IS BUYING THEM. There are, what, 50 BB in canada? At 60 per month, that's 3000/month in Canada alone. They are selling, just like Xbox360, psp they are just not in short supply.

      Can we please drop the stupid 'they are in stock so that proves no one is buying them' concept?

      And while we are on this topic, can we also please drop the 'I don't know anyone with a PS3 but I know for a fact that everyone on earth wants a Wii'

      Please.

      JON

    11. Re:Wii is not a loss leader . . . by poot_rootbeer · · Score: 1

      Sorry, but 3 should be "?????", unless Nintendo released a linux dev kit for free without anyone noticing.

      No, 3 shall stand at "cheap and easy to develop for", which the Wii is, even if they aren't giving away Linux devkits for free.

      Anyone serious about developing for the Wii will find the experience cheap and easy (compared to other consoles). I'm sorry if it's neither cheap nor easy enough for your tastes.

    12. Re:Wii is not a loss leader . . . by masterzora · · Score: 1

      I believe the point is that, since both are receiving regular restocking and the Wii cannot be found as easily as the PS3, the Wii is therefore being sold more than the PS3. This is *entirely* different from DVDs if only because of the quantities of production, so that's a crappy analogy, too. I sympathize with your point, but, quite simply, "you're doing it wrong".

      --
      Remember, open source is free as in speech, not free as in bear.
    13. Re:Wii is not a loss leader . . . by WozNZ · · Score: 1

      As the PS3 has only JUST released you would expect demand to be far higher than supply. But on RELEASE DAY I could go to ANY shop here in Christchurch and pick upa PS3 as EVERYWHERE had not even sold their initial shipment. By contrast, EVERY console release back as far as I can remember HAS sold out for months after release. So YES, stock of the PS3 left on the shelves EVERYWHERE means the PS3 has not had a good start. You can even get discounts if you shop around. Very sorry state for a new release of games hardware. The way to compare it to the fact you can go and buy a DVD player is naive.

    14. Re:Wii is not a loss leader . . . by LWATCDR · · Score: 1

      Hey I don't own a Wii yet, I do own a GC, PS2, and a Dreamcast. I am sorry but the simple fact is that I can find PS3s everywhere and Wiis can not be found. I work at a software development firm. We have a good number of gamers but not a single PS3 owner in the bunch. I know somebody is buying them but not in the numbers that Nintendo is selling or to any of my friends or coworkers.
      Right now the Wii is the top selling console in the US and Japan. I don't know about Europe but I think the Wii is number one there as well.
      The PS3 is outselling the 360 in Japan but Japan is a very hard market of a US game manufacture to crack.
      The PS3 is the most expensive console and doesn't seem to have have any real must have titles yet. I have heard that Virtual fighter is good but I don't like fighting games.
      The 360 is cheaper with a larger library of games and the Wii is much cheaper and seems to have all the buzz. The PS3 frankly has a long road ahead of it right now. Things could change but the facts are the facts.

      --
      See my blog http://ilovecookes.blogspot.com/ for light hearted technical information.
    15. Re:Wii is not a loss leader . . . by ShadowsHawk · · Score: 1

      I think the power of the Wii (stop snickering) really lies with the casual gamer. I bought one at launch and had a bunch of couples over for new years eve. Two couples went out and have purchased Wiis since then. Last I had heard, the one couple had already purchased Cars, Need for Speed, Rayman and they were thinking about getting Trauma center. All this coming from people who have never played anything besides solitar and a little bit of sim city.

    16. Re:Wii is not a loss leader . . . by shoptroll · · Score: 1

      I'd highly recommend Excite Truck to them as well, since they seem to like the racing games.

      Trauma Center is pretty good on the DS. Haven't tried the Wii version yet.

      --
      Insert Sig Here
    17. Re:Wii is not a loss leader . . . by KillaBeave · · Score: 1

      IE even the hard core gamers will have a Wii next to their 360.

      That sounds just like my entertainment center :)
    18. Re:Wii is not a loss leader . . . by brkello · · Score: 1

      First off, your GPs post model for how Nintendo is to make money was the same as it was for the Gamecube. They just were able to generate enough buzz with their controller and much lower price to get a high demand (and now third parties are going crazy trying to make games for them).

      But what I really want to write about is the term "hardcore gamer". Somewhere people are getting confused on what that means. The people who play Zelda and Final Fantasy are not casual gamers...these are hardcore gamers. Hardcore gamers own or want to own all 3 systems and have a PC. The Wii is different in that it is designed to have a more intuitive control for the casual gamer. Really, what defines a casual gamer is how long they play. I say Zelda and FF are not for casuals since they require a longer time commitment. But a person who plays Wii Sports 3 hours a day isn't a casual gamer either. The people who play bejewled 15 minutes every few days is.

      Somewhere...and I don't know where or how...hardcore got associated with college males that play FPS. While they are part of the hardcore demographic...people playing cute Nintendo games can be just as hardcore. Just sort of irritating to read that the Wii is all casual gamers and it is making inroads to the hardcore. Nintendo is doing so well because of hardcore gamers who grew up and love Zelda. Their sales are boosted by casuals who got their first taste of fun with Wii Sports and had to get one of their own.

      --
      Support a great indie game: http://www.abaddon360.com
  6. Cheaper videogames? by Canthros · · Score: 1

    Sign me up!

    Well, okay. I don't actually wish ill on game devs, but I am kinda blase about the hardware end of the business. And the article fails to note that Nintendo doesn't sell its hardware at a loss, correct?

    --
    Canthros
  7. Correction by adnpryde · · Score: 4, Insightful

    Microsoft and Sony are losing hundreds of dollars on each system sold, while Nintendo makes a profit on every console. This just seems like a sky-is-falling article that doesn't take into consideration the massive growth of the online and casual markets, as well as the huge growth of portable.

    1. Re:Correction by Maul · · Score: 1

      There have been thousands of articles written since around since the 16-bit days (or earlier) predicting the "second crash." I tend to take each one with a grain of salt. That isn't to say a second crash could never happen.

      At worst case right now, Sony and Microsoft could fold out of the console business. Nintendo will likely stick around because they know how to make money, even when they don't have the top selling console. As long as Nintendo sticks to that, I don't see a "full crash."

      --

      "You spoony bard!" -Tellah

    2. Re:Correction by Anonymous Coward · · Score: 0

      Actually, Microsoft break even on each unit sold these days. It's amazing what a year without a price cut does to profitability.

    3. Re:Correction by Impy+the+Impiuos+Imp · · Score: 1

      I don't even know if there are any crashes -- like the music industry, there are just long stretches where few if any real "hits" are produced, then, for better or for worse, along comes someone with a couple of catchy tunes with a "hook" in 'em.

      --
      (-1: Post disagrees with my already-settled worldview) is not a valid mod option.
    4. Re:Correction by CastrTroy · · Score: 1

      Who the f*** decided that sentences on the Internet shall no longer be formatted with two spaces after a period?!
      Since somebody else decided that extra whitespace in HTML documents should be ignored. So, even if you type two spaces, it shows up as 1 in the web browser. I personally think they should fix that.
      --

      Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
    5. Re:Correction by Anonymous Coward · · Score: 0

      Ya see a lot of talk about how much is lost on each console sold in stores.. but you never see anyone mention quite how much is gained from sale of devkits and test kits... do you have any idea how much a dev kit costs? They would have to sell hundreds and hundreds of retail units to eat away the profit made on a single dev kit.. it's the developers that are funding the next-gen war.. not the consumers.

  8. Losing Money? by Anonymous Coward · · Score: 0

    That's odd... I thought Nintendo was making a profit with every sale. Nice researching, BBC.

    1. Re:Losing Money? by 91degrees · · Score: 4, Informative

      The XBox 360 is apparently slightly better than break even now as well.

    2. Re:Losing Money? by Dorceon · · Score: 1

      Good, now they can start digging themselves out of the hole made by all the below-cost sales they already made.

      --
      What sound do people on rollercoasters make? Hint: it's not Xbox 360.
    3. Re:Losing Money? by Anonymous Coward · · Score: 0

      Thats break even on the sale of 1 console. There are plenty DOA's and breakdowns they have to replace/repair under warranty so they still lose on the hardware.

    4. Re:Losing Money? by 91degrees · · Score: 2, Insightful

      Hole?

      They spent roughly 4 billion on creating a console empire.

      Biuying a console empire would have cost a lot more than that.

    5. Re:Losing Money? by masterzora · · Score: 1

      But a console empire isn't good if it's not you don't make money. I don't know the numbers, but MS went in the hole big to build that empire and it's going to take a lot better sales or margins to dig themselves out. Someday they might, in which case it will have been worth it, but they still have to dig until they get there.

      --
      Remember, open source is free as in speech, not free as in bear.
    6. Re:Losing Money? by 91degrees · · Score: 1

      Well, the way I see it, is if they wanted to buy Sega's brand name and console business when Sega pulled out of console production, it would have cost a comparable amount, but if they were in the same position as they are now everyone would be saying what a bargain MS got.

  9. Article Author fails at Journalism by Anonymous Coward · · Score: 0

    Though Sony and Maybe microsoft (not sure on MS) may be losing money on the hardware, Nintendo is making a profit on their hardware. It's not being sold at a loss (neither the DS Lite nor the Wii).

    I don't think the industry could crash again like the Atari crash. The market is just completely different, not to mention the Atari crash was America only, and the Video game market is now a global market.

  10. PC by Xtense · · Score: 1

    Even IF Nintendo would be losing any money and all this doomsaying actually came true, there is still our beloved PC platform. If consoles turn out not to be profitable anymore (which i seriously doubt), in my opinion the developers won't just sit there like lemons but will jump ship and go back to the oldest harbor that kept them safe for all these years.

    --
    "We are the music makers, and we are the dreamers of dreams [...]."
    1. Re:PC by Grave · · Score: 1

      Actually a number of developers are looking at the consoles as the primary profit driver thanks to increased piracy on the PC. id has shifted their development focus to the 360/PC, whereas it always used to be the PC, with ports for the consoles being made available later on by third party companies. Now id is talking about simultaneous release on both PC and 360, with the PS3 being a possibility (though last I heard, it wasn't Carmack's focus). Valve is expected to do the same starting with HL 2: Episode 2 and Team Fortress 2. Same for Epic (and many of the myriad games using UE3).

    2. Re:PC by Xtense · · Score: 1

      That is, of course, true, but that console-dying-developers-moving thing was just a hypothesis :) . Also, while it does require significantly more effort to pirate games on consoles, it's not impossible of course, so it IS possible we'll actually see a reverse tendency - console developers running away to the PC market. But, to be honest, i just don't see it happening in the next 10 years.

      --
      "We are the music makers, and we are the dreamers of dreams [...]."
  11. Lack of Innovation by bhunachchicken · · Score: 5, Insightful

    The main problem stems from the fact that there is just a constant deludge of first person shooters and racing games. The Xbox 360 is by far the worse offender in this regard. There seems to be little else on the platform worth looking at.

    The other issue is that the cost of development is becoming so high now that devs are less willing to take risks on new IPs and gameplay styles. Look at Clover Studios - They made Viewtiful Joe, Okami and God Hand, all great games that did nothing but cause the company to fold.

    I wouldn't be surprised if as this console generation moves on developers make more money from the smaller downloadable games on Playstation Network, etc. than from the big box retail ones.

    1. Re:Lack of Innovation by pizzach · · Score: 1

      I agree with you except on Viewtiful Joe. The sequel was released for the PS2 first, which hurt the sales of the GameCube version when later released. The ironic thing was that the GameCube sales were still larger than the PS2 sales. Disclaimer: I may be wrong on any and all points. This information is second hand.

      --
      Once you start despising the jerks, you become one.
    2. Re:Lack of Innovation by MMaestro · · Score: 1

      I can't comment on Okami (which was arguably a "lets finish this last project, pray it makes a profit, but fold the company anyway cause this isn't working out") or God Hand, but Viewtiful Joe butchered itself after the first game. The first sequel was released on the PS2, so it alienated the GC audience, the only people to have bought/owned the first game. Not a very logical move.

    3. Re:Lack of Innovation by tieTYT · · Score: 1

      I wouldn't be surprised if as this console generation moves on developers make more money from the smaller downloadable games on Playstation Network, etc. than from the big box retail ones.

      I think that would be awesome. As a result, this could be the Renaissance of video games. I welcome the new RPGs that focus on story instead of FMV and action games that focus on gameplay.

  12. In short, no. by MeanderingMind · · Score: 4, Insightful

    There will be no Video Games Industry Crash. However, we may see a dramatic shift in the industry.

    What we are seeing is the end of hardcore dominance of the industry, nothing more or less. The perceived demands of the hardcore are insustainable, driving companies to make consoles that lose them money in order to gain some ill-defined future benefit. Whether it is the companies or the hardcore themselves that are to blame for the previously shrinking industry is uncertain and largely irrelevant.

    What we are seeing is the introduction of video games as a true form of mass media. Talk to anyone on the street and you will be hard pressed to find someone in this nation who hasn't read a book, watching a movie, or viewed a painting or photograph. What's more, each of these forms of media has subsections that cater to particular tastes. Video games have not been mass media because they didn't reach everyone, only an elite few who knew what was going on. Now the "casual" gamers and even those who do not game at all have been targeted, and they will be the driving force in the future.

    Right we are in transition, and it's confusing people. Depending on the person, some hardcore gamers are afraid that the Wii and DS are the harbingers of the end. Will games like Guilty Gear, Counter-Strike, and Armored Core survive in an industry focused on the majority? Having been catered to for decades, the prospect of losing attention is frightening. However, the fear is unwarranted. Despite the fact that games like the Sims, Bejeweled and all manner of "casual" games have invaded and perhaps dominated the PC, we still see games such as Supreme Commander, Hellgate: London, and the odd MMORPG tax video cards in SLI and quad-core CPUs.

    In the future, the majority of games will be like summer blockbuster films. This is not bad, because the volume of games will increase such that we will still see the same number of "hardcore" titles, including AAA ones.

    There will be no crash, but there will be a paradigm shift/revolution.

    --
    Thunderclone: ONE MAN ENTERS! TWO MEN LEAVE! ONE MAN ENTERS! TWO MEN LEAVE!
    1. Re:In short, no. by TKOTolman · · Score: 1

      I have to agree hard core systems make no point, in a year it will be outdated. The games that I would want to play with a system like that are better on a PC that I can update with better video cards and ram and so on. So how can a console compete with a PC for the hardcore market? I don't think it can.

    2. Re:In short, no. by MeanderingMind · · Score: 2, Insightful

      It is important to note that at this moment console systems take in greater revenue than PCs, at least according to the article.

      I'm somewhat skeptical about it, because the chart at the end is based of a analyst report from approximately one month after the launches of the PS3 and Wii. While the report itself is not suspect, you'd think there'd be a similarly credible and more up to date analysis and projection after 6 months.

      It also seems to be weird citing a report that places a large emphasis on success for Microsoft and Sony's systems in an article alluding to an industry crash.

      --
      Thunderclone: ONE MAN ENTERS! TWO MEN LEAVE! ONE MAN ENTERS! TWO MEN LEAVE!
    3. Re:In short, no. by rlp · · Score: 1

      Interesting analysis, but I disagree that games will go entirely to the 'mass market' blockbuster. If anything I think games will move to the 'long tail' model. There still will be blockbusters, but there will also be small games that will find their own marketable niche. These will be developed by small companies, or even individuals and sold as downloads. Review sites and on-line word of mouth will steer people to these games.

      I'm most familiar with Nintendo's Virtual Console which offers various game company's back catalog, but nothing new (yet). I expect that to change, and I expect small niche games in aggregate, to be quite profitable for console makers.

      --
      [Insert pithy quote here]
    4. Re:In short, no. by AndersOSU · · Score: 1

      I don't know about the long-tail. My take is that video games are far too expensive to produce to succeed with that type of a business model. Really the only media that do well in a long tail economy are books and webpages, and both of those can be done well by a single person. Now there might be some single author video games out there, but they in no way resemble half-life.

      I think the movie analogy is apt. The video game industy can do better with the movie model IMO because the serious money will be invested in mass-market appeal games, but the engines etc. can be reused for hardcore lower-budget games.

    5. Re:In short, no. by blahplusplus · · Score: 2, Insightful

      "In the future, the majority of games will be like summer blockbuster films. This is not bad, because the volume of games will increase such that we will still see the same number of "hardcore" titles, including AAA ones."

      I think you're not understanding the market nor the nature of the beast that is gaming and game devleopment, the market is more complicated then your post will admit.

      Right now there is major economic upheavel in North america. While you made one valid point: that theres tension and shift between hardcore and casual... the core of gaming is still built around the so-called "hardcore". The best games in existence are hardcore, don't tell me Will-wright got to where he was by making "casual" games, or Peter Molyneux, or John carmack, or Mark Rein of epic games... all these guys are "hardcore". While profitability has suffered, its because of factors beyond the so-called "market" the truth is it's due to technological power and the technolust of game developers / publishers. Many games could be profitable if they didn't spend so much on graphics devleopment and were not forced by wal-mart publishers into ridiculous development catch-22's.

      MMO's and games like God of War, are -- hardcore. WoW makes casual accessability to "hardcore" (read: interesting, deep) play mechanics easy for everyone by simplifying the interface. WoW deeply borrowed lots of hardcore elements from diablo, the only thing missing was more twitch real-time control over your character in WoW.

      The solution is not ot make more "casual" games, the solution is to find a way to make "hardcore" (read: deep interacitivity and choices, and other fun stuff) accessable to people beyond the hardcore while still retaining "hardcore" elements, basically, deep and engaging interactivity, and an emphasis on not going into passive gamer la-la land like many games today (MMO's I'm looking at you). Personally I think you'd be hard pressed to find anyone in the gaming industry who makes games who is not *hardcore* about games, real game developers are to some extent hardcore gamers or else they wouldn't put in the blood sweat and tears to develop games. I think you underestimate the power and influence of the "hardcore" gamers... without the hardcore gaming would not have been nourished and fed the money it needed to get to this point. Gears of War, Halo, and other 'hardcore' games prove theres still lots of money to be made from hardcore gamers if you provide *an experience worth paying for*, the FPS is one of the games thats near universally accessable or at least looks so interesting casual players will spend the time to pick up and play an FPS. A good looking game that plays like crap is still a shit game, despite its sales, and at the core of every game you have to have something fun, or else your profitability will eventually suffer.

      I think "causal" games for most people will be more of a passing fad, since most true gamers associate 'casual' games with games that are not in the vein of most games. Just because more casual people have picked up video gaming doesn't mean that *they will buy games*. In my opinion the people least likely to buy games are casual players.

      Gears of War and Halo are by definition *hardcore games*, which sold millions of units. Anyone who says FPS is "casual" is an understatement.

    6. Re:In short, no. by jackbird · · Score: 1
      don't tell me Will-wright got to where he was by making "casual" games,

      Sim City and The Sims are arguably the biggest-selling "games for non-gamers" of all time, perhaps eclipsed only by portable Tetris and coin-op Ms. Pac Man.

    7. Re:In short, no. by blahplusplus · · Score: 1

      You're missing the point, sim city was originally 'hardcore' game, many of will-wrights ideas are *hard core*, he just makes them accessable to other people. Many sim-city games are not that 'casual' at all, I've played all the sim City's and I wouldn't call them "casual". "The sims" is more casual then sim city ever was. Either way you're missing the main point: Most of the best game designers are 'hardcore gamers' and the distinction between 'casual' and 'hardcore' is not 'night and day', the casual gamer does not care about what makes games great. The hardcore gamers *does*. Will wright is perhaps the only exception in the industry, almost all others were hardcore. My point was what makes games great is "hardcore" elements. Lose that and you lose what gaming is about: non-passive interactivity.

  13. Its beginning to feel that way to me by mcnut · · Score: 2, Funny

    I was an avid gamer about 6 months ago, and I have been excited about a few games to come out recently, but I just don't see a reason to buy them anymore. The games I was excited to see come out this quarter I could live with or without now. Am I.. growing up?!? nooOO!

    --
    ok.. so heads you lose tails I win. right?
    1. Re:Its beginning to feel that way to me by MortimerV · · Score: 1

      Nope, you're just getting old.

    2. Re:Its beginning to feel that way to me by Anonymous Coward · · Score: 0

      Just chill, it's part of life's cycle.

      There are some advantages -- let me tell you about
      these people called "girls" ....

  14. It's the pirates, I bet by Opportunist · · Score: 1, Funny

    Outdated business models? Costs that aren't offset by the revenue? Prices that don't match the value?

    Usually, when those stars are aligned this way, the culprit is someone copying the content.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  15. Are we headed for another "game crash" article? by tgibbs · · Score: 2, Insightful

    Ah, the perennial "is another game crash around the corner?" article. Always a good bet if you can't think of anything substantive to say.

    The answer, of course, is no. The "game crash" of '83 marked the end of the game fad. Electronic games had become a novelty, and virtually anything would sell...and then the novelty wore off. And like the end of any fad, what was once cool became decidedly uncool for a time.

    But something is only a fad once. Videogames are now just one more form of entertainment, competing with movies, TV, music, etc. The industry is transforming. Improved technology has driven up the cost of development, so that game production is more and more characterized by the same hit-driven economics that is typical of the entertainment industry as a whole, posing new challenges for the industry.

    But at least we don't have to worry that everybody is going to simultaneously lose interest in videogames.

    1. Re:Are we headed for another "game crash" article? by DaveCBio · · Score: 1

      I agree. The market now is substantially different. This is like saying, "Are we headed for a movie or TV crash?"

    2. Re:Are we headed for another "game crash" article? by LKM · · Score: 1

      But something is only a fad once.

      It's very rare that I read something on /. which actually changes what I think. Truly insightful point, thanks!

  16. Actually, the article says "revolution" by cgenman · · Score: 2, Insightful

    The BBC article seems pretty well thought out, and only mentions the word "crash" once, under a picture of Burnout Revenge. For the most part, it's an article about the alternative revenue sources that have been rising up to defray the additional costs of development, including advergaming, Korean-style online accessory sales, and cell-phone game tie-ins. They even go out of their way to point out that total game sales are expected to rise by 800 million dollars this year, even if the console transition will make it difficult to break even on a next-gen only title.

    This isn't the worlds most accurate article about the state of costs and revenue sources in gaming, but it's a good overview of how things probably look from within a large publisher.

  17. Source Examination? by T0wner · · Score: 4, Insightful
    Unfortunately you have to pay $1500 view the detailed report BBC used as it's source. There other source is a "Gerhard Florin, executive vice president at EA and the general manager of its international publishing business." The article itself resides in the Business section and was written by Tim Weber Business editor. The article reads like an EA advertisement for investors. It talks about future revenue streams such as in-game advertising user-generated revenue, online tie ins etc... I really have to question the neutrality of the source when the main interviewee has such a huge vested interest in the revenue streams he's hoping for his own wallet will come to pass. especially in the online sector where he incidentally berates the Wii

    Nintendo's efforts, scoffs Mr Barton, are "frankly stone age compared to the others". As well as the parent poster mentioning the Wii isn't losing money on the console. Aren't the sales figures wrong on Screendisgest's graph. That to me is suggesting as of this month the PS3 is outselling the Wii by 30%. I was under the impression that these sales figures are still be released for independent review and that the Wii was selling better than the PS3 was in at least 2 of the big 3 territories.

    Heres something which really caught my eye:

    Players will be able to create new levels for games and share them online. "Users could create revenue for games," says Mr Barton. "The potential for this is absolutely enormous". Step 1. Community makes maps, mods, skins etc.. for a game.
    Step 2. Publisher claims it as there own IP
    Step 3. Profit

    This really annoys me. They can go **** themselves if they think I'm going to spend 40 hours programming something interesting for a game I enjoy just to have them take it and make money out of it to subsidise the inadequacies of their retarded business model.
    1. Re:Source Examination? by Anonymous Coward · · Score: 0

      They can go **** themselves if they think I'm going to spend 40 hours programming something interesting for a game I enjoy just to have them take it and make money out of it to subsidise the inadequacies of their retarded business model.

      I think the idea there is that the availability of your extra content (even for free) drives sales of the original game (e.g. as with NWN).

    2. Re:Source Examination? by Anonymous Coward · · Score: 0

      NOOooez! the wii is not LOSing moneY!!! OMG those infidels must shut the hell up how dare they doubting of out god NintedNo!

    3. Re:Source Examination? by nick_davison · · Score: 3, Insightful

      This really annoys me. They can go **** themselves if they think I'm going to spend 40 hours programming something interesting for a game I enjoy just to have them take it and make money out of it to subsidise the inadequacies of their retarded business model. How many copies of Doom were sold because everyone wanted the full version that would allow them to play the WADs everyone else were creating?

      How many people with both an X360 and a PC chose to buy the PC version of Oblivion because they could get a ton of free mods to upgrade the PC version whereas Microsoft insisted the publisher charge a couple of bucks for every "upgrade" that really should have been a patch?

      How many people bought the original Half Life so they could play the free mods that came out for it?

      A publisher doesn't have to charge for mods in order to make money. They can make an easily modable game, let people download the mods for free, then rake in the extra sales of the original product.

      It's a shame that Microsoft seems hellbent on forcing "microtransactions" that aren't that micro, demanding 500 XBL points for things that should really be free and closing the doors on things that normally would be.

      Hopefully, the quote was about making extra revenues in original media sales that are spurred by free mod content.

      Sadly, after reading previews of the forthcoming Tiger Woods game, I don't trust EA with that for one moment.

      Their model is apparently to let users share their best games, etc. in order for others to try beating various aspects of the game like number of spectators hit, fewest shots to the green, etc. This content that enhances the game and thus, hopefully, drives EA sales is only free for three uploads. After that, you have to start paying to make their game more valuable to others.

      This follows Battlefield 2 where they figured out how to charge people for the most interesting servers and make people feel grateful for it and Test Drive Unlimited where Microsoft made people fork out for Gold XBL service in order to share user created challenges.

      So... User created content is a great way to make more money by selling more copies of the original media. Sadly, much as that's a viable model on its own, it really is becomming yet another area to try charging people more for something the publisher simply enabled but certainly never created.

      Funny how free mods in Doom, Half Life, Morrowind and Oblivion has turned them in to beloved games that kept selling WAY past their shelf life while screwing every last penny out of their users turns games like X360's Morrowind, Test Drive Unlimited and the upcoming Tiger Woods in to resented money sinks with short shelf lives.

      The sad thing is, I actually started this post to protest there was a more innocent interpretation but then, realizing the sad state of consoles where you're locked in - plus Microsoft's plans for XBL's port to Vista - and I kind of lost faith. It'd be great if they showed a little forethought and built valuable franchizes rather than raping every last dollar - sadly I don't believe that of them anymore.
    4. Re:Source Examination? by Rico_Suave · · Score: 1

      "How many people with both an X360 and a PC chose to buy the PC version of Oblivion because they could get a ton of free mods to upgrade the PC version whereas Microsoft insisted the publisher charge a couple of bucks for every "upgrade" that really should have been a patch?"

      Um... 360 game patches *are* free. Additional content != patch. Bethesda charges for the same content on the PC side as well.

  18. Failed attempt by Anonymous Coward · · Score: 4, Interesting

    This is another succesfull attempt at disinforming the masses.

    We all know the reason for next gen consoles, excluding the Wii. They are here to satisfy another agenda.

    Microsoft: Monopolise the gaming market. (DX 10, VISTA, Entertainment system)
    Sony: Monopolise the DVD format market.

    Move along nothing to see here.

    1. Re:Failed attempt by badboy_tw2002 · · Score: 0, Troll

      Actually, I think its more like:

      Microsoft: Make Money.
      Sony: Make Money.
      Nintendo: Inspire the masses, bring a new era of creativity and end world hunger through friendship created through the joy of gaming....I mean, Make Money.

      The strategies might be different and some definately better for those of us that love gaming, but the end goal is always the same. And if you don't think that Nintendo wouldn't love to be the 800lb. Donkey Kong it was in the old days so it can throw its weight around in the same way Sony has burned itself doing, think again.

    2. Re:Failed attempt by Anonymous Coward · · Score: 0

      I just love that this was modded troll

      HOW DARE YOU INSULT NINTENDO?

      Report to the Slashdot hivemind re-programming facility right now.

      Nintendo can do no evil! If only they'd merge with Apple! And Google! I might have an orgasm!

    3. Re:Failed attempt by walnutmon · · Score: 1

      I was thinking that while reading the parent... then saw your post... then I laughed.

      That was the order of events. I am only reading this because my DS battery died in the middle of an annoying game of Castlevania. Yep, you may not know if you use Slashdot as your only way of getting game news... but the DS battery doesn't last forever!

      Fancy that.

      --
      You take it, I don't want it...
    4. Re:Failed attempt by badboy_tw2002 · · Score: 1

      That's actually your fault, because the DS is really powered by the good will in your heart. Obviously you don't love it enough or have enough courage, so its screen dims. Nintendo doesn't support evil players, sorry.

      (Ok, that one really should be troll...)

  19. Mainstream penetration by strider2k · · Score: 1

    I will use my personal observation about the DS in a small family reunion of my girlfriend. During one of the long boring speeches, a few of her cute cousins reached into their purses for a DS. About 5 DS were used to network Big Brain Academy. Now, I was shocked since it's semi rare for me to see females with video games. It's even rare when I see CUTE females with them. Usually, they would be too cool and play cell phone games. It's even weirder that one of the cousins is in a sorority. My point is that video games are decoupling from the typical nerd stereotype.

    --
    Every geek has some sort of website, programming or computer project. Here's mine: www.youtasteit.com . What's yours?
    1. Re:Mainstream penetration by PresidentEnder · · Score: 2, Funny

      So... if nerdy games can penetrate the sorority girl market, when can nerds start penetrating the sorority girls?

      --
      I used to carry a bottle of whiskey for snake bite. And two snakes. -Nefarious Wheel
    2. Re:Mainstream penetration by nomadic · · Score: 1

      I'm not sure if I believe your story. Please provide me with the contact information of these alleged cute females so I can verify.

    3. Re:Mainstream penetration by cyclomedia · · Score: 1

      My wife hinted that she might like a DS not long ago after seeing a few ads for them, she's got a geek streak for sure (hell she married a slashdotter!) but i was quietly surprised. She might get one for xmas (and i might get me a dreamcast :-)

      --
      If you don't risk failure you don't risk success.
    4. Re:Mainstream penetration by walnutmon · · Score: 1

      You: "So, I see you girls are playing Brain Age... I have a DS too"
      Them: "Get out of here, weirdo"

      And life returned to normal.

      --
      You take it, I don't want it...
  20. Wii is not a loss? by Anonymous Coward · · Score: 0

    I suppose you guys who are saying the Wii is profiting Nintendo directly actually have some sources to back that up?

    That $158 figure doesnt say anything about how much the stores are purchasing them for, and how much cost is between the manufacturer and distributor. Put your sources where your mouth is.

    1. Re:Wii is not a loss? by metamatic · · Score: 1

      Well, I don't have a web page to back it up, but a friend who runs an electronics resale store (shopthejunkyard.com) tells me that the margins on the Wii are razor-thin to nonexistent, for the retailer. Maybe Wal-mart squeezes a few dollars of margin out of Nintendo, but it's nothing like the $80 margin Nintendo would have to be giving stores to be selling the Wii at a loss.

      --
      GCHQ Quantum Insert installed. If only our tongues were made of glass, how much more careful we would be when we speak
    2. Re:Wii is not a loss? by Anonymous Coward · · Score: 0

      The retailer may not have note-worthy profits on the actual console, however the people buying the consoles are now walking around the store looking at all the other, more profitable items on the retailer's shelves.

  21. It'll happen... by Jaysyn · · Score: 1

    ... right after the "Movie" crash....

    --
    There is a war going on for your mind.
    1. Re:It'll happen... by Anonymous Coward · · Score: 0

      Why the scare quotes? Crash won the Oscar for best motion picture of the year.

      Or perhaps you meant the crash of the movie industry? Pbbbbbttt.

    2. Re:It'll happen... by Anonymous Coward · · Score: 0

      I doubt that there will be a "movie crash" considering that film is actually art, culturally sound, and has meaning. Video games are perceived for children, college kids, lonely computer science guys, and white trash blue collar construction workers.

    3. Re:It'll happen... by Gilmoure · · Score: 1

      Hey, I'm a blue collar, white trash, perennial collage student geek who works tech support. Games are meant for me? Cool! Where can I find SMAC/X for GBA?

      --
      I drank what? -- Socrates
  22. Happens with every hardware cycle by Tord · · Score: 2, Interesting

    There is always a shakeout between game companies at the beginning of each new generation. A few things combine to make this happen every time:

    1. Many people stop buying games for the old system since they already have decided to buy the new system... as soon as it falls a bit more in price. This makes a gap in the market until the next generation has moved enough units. Many developers and publishers don't have enough cash to survive this.

    2. Timing is hard. When should you stop developing for the old system and start developing for the new? With 18-24 months time-to-market it's hard to know if your new game should be made for the old or new generation. Make the wrong choice and you might find yourself move as much as two years too early or late.

    3. Every new generation has so far demanded higher budgets and larger teams. Many companies that are too small will fail to make the switch.

    4. It takes time and costs money to learn a new system and you will also need to develop new tools and engines. Either you will have to invest extra heavily in your first title for the new platform or settle for lower quality, which is likely to give you less sales...

    I've been working in the industry for almost ten years (not anymore now though) and I'm surprised that everyone seems to be caught off-guard every time it happens....

  23. Sales figures by wilsonthecat · · Score: 1

    PC games
    2006: $3.9bn
    2007: $3.7bn

    I wonder if they have factored in World of Warcraft in these figures, or its imminent demise in the next 9 months. The game is like swarm of locusts on the PC games market at the moment (still after 2 years). More people play WoW than people who have PS3s, XBox 360s and WIIs (according to the Times Online). This is stifling all competition in the PC games market making it stagnant. It appears with the new expansion, the playerbase is slowly dying away though, which could actually be beneficial for other games producers.

    Of course you could argue a lot of people who play WoW simply wouldn't play games on their PC otherwise.

    1. Re:Sales figures by Rayonic · · Score: 1

      I wonder if they have factored in World of Warcraft in these figures, or its imminent demise in the next 9 months.

      It appears with the new expansion, the playerbase is slowly dying away though

      Uh, have any sources for this? Other than your bitter anti-WoW fantasies, that is. Internet forums and "people I know" don't count either.

      Frankly, I loved the expansion changes, and look forward to the coming patch. IMO, most people quitting are either "hardcore" whiners or people upset (heartbroken!) that they can't keep up with the hardcore whiners.
    2. Re:Sales figures by wilsonthecat · · Score: 1

      Sorry but your reply looks like so many other World of Warcraft player's lingo: excessive use of the word "whine" and refusal to have anyone criticising the game.

      My sources are the official forums, which have almost daily posts about players quitting and all their friends quitting, and also from in game friends on 3 different servers. Infact there was a forum post that was 25 pages long post about this not too long ago. This might be the old timers who are now bored of it, but I'm sure that represents a hefty chunk of the pie. The Blizzard statistics also seem to contradict themselves, give their account numbers as totaling 7 million, while their headline proclaims 8.5 million play the game. If you want me to quote official figures, sorry I don't work for Blizzard and I doubt Blizzard will ever post a PR with "WoW account subscribers down by 1 million since March!".

      Coming this year: Crysis, Unreal 2007, Team Fortress 2, Warhammer Online plus a whole variety of other games. I think only the most optimistic World of Warcraft diehard fan would not see that the game is due to lose players to these big titles coming out.

      That isn't an "anti-WoW fantasy" as you call it, the game served me well for a few years and is a quality game. I do however like to play more than 1 game, and hope that other games besides recycled EA WW2 shooters will be able to remain profitable for the PC market.

    3. Re:Sales figures by MeanderingMind · · Score: 1

      My sources are the official forums, which have almost daily posts about players quitting and all their friends quitting, and also from in game friends on 3 different servers.


      Those kinds of posts have been seen on the forums since the game released. It's nothing new.

      Infact there was a forum post that was 25 pages long post about this not too long ago. This might be the old timers who are now bored of it, but I'm sure that represents a hefty chunk of the pie.


      You're making a fundamental assumption that the official forums represent any significant portion of the pie to begin with. While active, I'd hardly say any significant fraction of the playerbase posts on the forums consistantly. Additionally, the forums are not necessarily representative of the actual demographics and beliefs of the larger player base. People more often complain than they do compliment.

      The Blizzard statistics also seem to contradict themselves, give their account numbers as totaling 7 million, while their headline proclaims 8.5 million play the game. If you want me to quote official figures, sorry I don't work for Blizzard and I doubt Blizzard will ever post a PR with "WoW account subscribers down by 1 million since March!".


      Where did you get the first number there? I'm aware Blizzard recently announced hitting 8.5 million players, but you aren't clear on where the first number came from.

      Above and beyond all of that, you make the fundamental assumption that because people play WoW, they will not buy or play other PC games. A lot of people take this view. However, consider many of those who play WoW are the same kind of people who would play Starcraft, Diablo, or any other single game [i]exclusively[/i] anyway. I know these people, because my friends and I are those kinds of people. For my entire freshman year of College, the only PC game I played was Diablo 2, and I'd already played that for a year. Sophomore year, it was more Diablo 2. I played Age of Wonders II Junior year (borrowed from a friend), and more Diablo 2. Then my Senior year I went to Japan, then came back and picked up WoW. A year later, I'm still playing WoW and now have the expansion. Somewhere in there I picked up Warcraft III and it's expansion, but the first disconnect hack killed the game for me.

      In 6 years of PC gaming I bought 3 games and 3 expansion packs. That's one measley $50 purchase per year. Thanks to WoW, I'm spending three times that a year. More if you factor in that I paid for my brother's copy and subscription, and subsequently the subscriptions for friends of mine as well. I'm a Wowvangelist of sorts.

      People like me are not all there is to PC gaming, but we do make up a significant number of the people supposedly spending less money on PC gaming.
      --
      Thunderclone: ONE MAN ENTERS! TWO MEN LEAVE! ONE MAN ENTERS! TWO MEN LEAVE!
    4. Re:Sales figures by Anonymous Coward · · Score: 0

      My sources are the official forums, which have almost daily posts about players quitting and all their friends quitting, and also from in game friends on 3 different servers.

      Truly stunning, the depth and rigor of your market analysis methodology. Madison Ave is no doubt beating a path to your door.

    5. Re:Sales figures by Anonymous Coward · · Score: 0

      Two friends and I just started playing the game as of two weeks ago. Should we make a thread on the official forums to inform you of this or is it alright for me to tell you here. Thanks.

    6. Re:Sales figures by fractoid · · Score: 1

      My sources are the official forums, which have almost daily posts about players quitting and all their friends quitting... WoW might be approaching saturation, but unless server population caps are being lowered, I'd say the huge list of full realms and the continual release of new ones contraindicates the population falling significantly. The official Blizzard forums have always been full of "I quit [if X happens]" posts. Very few seem to put their money where their mouth is and actually quit.

      Coming this year: Crysis, Unreal 2007, Team Fortress 2, Warhammer Online plus a whole variety of other games. I think only the most optimistic World of Warcraft diehard fan would not see that the game is due to lose players to these big titles coming out. Some people will definitely switch to these games, although I can't help thinking of the old WoW adage; "They'll come crawling back." Plenty of my friends have quit WoW, some of them multiple times. :P

      Rolling a new character last night on one of the new Oceanic realms, a lot of the players I encountered were genuine new players rather than rerolls. From this (small) sample I'd say that reports of WoW's death are greatly exaggerated. :P
      --
      Rampant carbon sequestration destroyed the Dinosaurs' tropical paradise. I'm here to help repair the damage.
    7. Re:Sales figures by metroid+composite · · Score: 1

      More people play WoW than people who have PS3s, XBox 360s and WIIs (according to the Times Online).
      Last press release WoW had hit 8 million subscribers. There are about 19 million next-gen consoles in homes worldwide (9-10 million 360s, 6-7 million Wiis, 3 million PS3s). Now, obviously some people will own more than one next-gen console, but based on GameFAQs that's only about 30% of next-gen console owners (and GameFAQs users are more hardcore than the general public, hence more likely to own multiple systems) so...you're still left with a good 15 million next-gen console owners. (Roughly double that of WoW's subscrption rate).

      And...even if home consoles are deemed a failure this time around, portables certainly are not (having roughly 60 million between the PSP and DS, roughly eight times the WoW subscription rate. Though naturally the new portables have been on the market for longer. Almost as long as WoW's been on the market, in fact...).
  24. All you Wii naysayers, your number is up... by 7Prime · · Score: 4, Informative

    I've had a Wii for a while now, and while I enjoyed it, my personal opinion, alone, hasn't convinced me, one way or another, what the draw of the console will be. Last night, this question was proven to me, once and for all.

    I brought it to a BBQ that another friend of mine was hosting. Half of the people there were gamers, and half of the people there were decidedly NOT gamers (Chinese students, a few hippies, some others). At first, all my gamer friends screamed for some "SMASH!" and that went on for about 45minutes in the other room while everyone else went outside and sat around jawing.

    Then I pried the GameCube controllers away from the gamers, and stuck in Wii Sports. The other half of the party suddenly rushed inside and grabbed controllers. They'd obviously never played or seen the games before, since they had no idea what to do, but within 5 minutes, everyone had made their own Miis, and were smacking tennis balls around to their hearts content. We alternated Wii Sports and WarioWare for the next few hours. By the end, many of the non-gamers were coming up to me, asking me how much the Wii cost, and where they could get them. I was pretty shocked, myself. I'd heard stories like this before, but hadn't really witnessed it in person, and was pretty amaized at the degree of involvement everyone had. Also, it was a party... none of us were sitting around, alone, brooding over a scummy screen. We were joking with eachother, making cracks all the time--we were interacting with each other even more than if we'd been doing most other normal party activities. In the end, the host came up to me and thanked me profusely, saying that everyone there had had a blast, and bringing the Wii was exactly the thing we needed.

    Just the other night, NBC news ran a piece on how retirement communities were getting into games... although the only games they showed were Wii games, there was no mention of PS3 or 360 titles. It's clear, the Wii is a phonominon, like no other we've seen in videogame history. We are entering a period of unknowns, in gaming... this is the LAST time to be making doomsday prophecies for the game industry.

    This guy from the BBC needs to get out more, see what exactly is going on in the world. He sounds as closeted as a 15-year-old gamer in his mother's basement.

    --
    Multiplayer Gaming (defined): Sitting around, discussing single-player games with my friends, at the bar.
    1. Re:All you Wii naysayers, your number is up... by Anonymous Coward · · Score: 0

      That sounds very encouraging. The question that remains is, can Nintendo snatch defeat from the jaws of victory?

      I mean, other than Wii Sports and Wario Ware, do they have any other games coming that will appeal to this new casual gamer crowd? Metroid, Mario, and Zelda are awesome, but only seem to appeal to regular gamers. (As is evidenced by the Gamecube's level of success.)

    2. Re:All you Wii naysayers, your number is up... by Anonymous Coward · · Score: 0

      I mean, other than Wii Sports and Wario Ware, do they have any other games coming that will appeal to this new casual gamer crowd?

      Brain age is coming out in the next quarter...it's definitely targeted at the casual gamer crowd. As well, a "lite" version of the Sims, Guitar Hero, Mario Party 8, plus any new sports games should appeal to the casual crowd.

      Currently, I'd say the following are also reasonably "casual" titles:
              Trauma Center: Second Opinion
              Rayman Raving Rabbids
              Super Monkey Ball
              Elebits
    3. Re:All you Wii naysayers, your number is up... by MeanderingMind · · Score: 1

      I'm going to call DS on this one.

      When Spring '08 comes around this question will have been answered, and likely in the same fashion as the DS. That's about how long it took for the DS to come unto its own, and I expect it will take a similar amount of time for the Wii.

      --
      Thunderclone: ONE MAN ENTERS! TWO MEN LEAVE! ONE MAN ENTERS! TWO MEN LEAVE!
    4. Re:All you Wii naysayers, your number is up... by fhage · · Score: 2, Interesting
      The source of this analysis is Ed Barton of Screen Digest http://www.screendigest.com/about_us/analysts/ed_b arton. They want $3600 for an analysis that forecasts the PS3 as dominating. While they seem to have reasonable insight as to the past, they've completely missed the mark as far as the Wii goes. They have failed to predict the very strong mass market appeal the Wii has and how this will open up new markets. Perhaps the sea change is hard to see without actually owning a Wii. However, as a long time - console and PC game collector and Wii owner it it very clear to me. Nintendo has hit a really sweet spot this time around.

      My (free and mostly serious)Predictions for 2008:

      • New TV's and DVD's will interoperate with the Wiimote. TV's will have built-in sensor bars. Using cursor keys to navigate the DVD menu? - How quaint. I suppose you still have a rotary phone too, Grandpa.
      • One of Youtube's top browsers will be Wii Opera. I find watching internet videos much nicer on the HDTV. The new Wii version of Opera is much, much better than the beta version, and makes surfing a much more social experience. Javascript will grow support for multiple pointers
      • Specialised Flash games will become huge and will be a good way to reach specific markets. The quality and appeal of sites like Wiiarcade are already showing this potential.
      • Virtual console games will make lots of money. Customers like me are happy to spend 5-10 USD to get our old favorites up on the new HDTV. (I check weekly for Pilot Wings 64! :-)
      • Somebody will make a billion dollars catering to Seniors who own a Wii. 3-D shuffle Board! - CSPAN Interactive, oh yeah....
      • "RV Mayhem" replaces GTA as the top seller. "Compete with others for the best parking spots:- Pimp your virtual RV with the latest hardware and paint jobs. - Gather with friends in the online Coffee Shop" ;)
    5. Re:All you Wii naysayers, your number is up... by bobaferret · · Score: 1

      I think you are correct in most regards, however, I think it can depend on the game. Guitar Hero will draw a crowd. But the Wii has the advantage in that most of the games draw a crowd. It's as if they really went for party games with the wii instead of imersive games like the PS3.

    6. Re:All you Wii naysayers, your number is up... by LKM · · Score: 1

      Other than the games already mentioned, Wii Fitness and Wii Music are going to be heavy hitters.

    7. Re:All you Wii naysayers, your number is up... by 7Prime · · Score: 1

      Guitar Hero III has been officially announced for the Wii, btw.

      Anyway, as a gamer, I still do want to see a steady influx of more immersive, involved games on the Wii, but I'm not too worried. As of late, it's only 5 months in, developers haven't had the time to make those big, juicy epics yet, as they take a long time to make. I just think we're going to see more games, and more game developers come into their own, over the next few years. I think the Wii will inevitably have just as many immersive games as the other guys... at least I hope so, because I'd like to see the Wiimote combined with some epic content.

      --
      Multiplayer Gaming (defined): Sitting around, discussing single-player games with my friends, at the bar.
    8. Re:All you Wii naysayers, your number is up... by buswolley · · Score: 1
      My dad, mom, and three girls in the family are all decidedly anti-gaming (meaning they HATE and ridicule video games); they spent an entire evening bowling on Wii Sports, drinking wine and being merry this last weekend. My grandma even wanted one, but I think she was kind of expecting a price tag in the $60 range. She is frugal. :)

      Sorry Sony.

      --

      A Good Troll is better than a Bad Human.

    9. Re:All you Wii naysayers, your number is up... by PeelBoy · · Score: 1

      True. Don't forget games like Cooking Mama and also Square-Enix is making a Yoga game (a learning tool or something I suppose?) for the DS among other non-games which could easily make its way to the Wii. Also I wouldn't count out the internet channel for surfing the web. It sounded stupid to me at first but I've actually used it quite a bit when I didn't feel like getting up and going to another room to use my computer when I could simply do it from where I was and then continue on with what I was doing and at my parents house we have used it to talk about some topics or look up stuff like sports scores or what not (and yeah... my 55 year old dad who has never really been a gamer freaking has a Wii.. well it was my little brothers but he pretty much gave it to them).

      Anyway.. back on topic.. if Nintendo comes out with a tool to learn Japanese similar to their English Training (I think they might have already? but not in the US) I will be all over it.

      I don't know.. Anybody who can't see all of the interest from companies (AND consumers) wanting to take advantage of this... has to be blind and deaf.

    10. Re:All you Wii naysayers, your number is up... by Gravatron · · Score: 0, Troll

      Well yeah, Nintendo is pushing it as the console of the bejewelled player. The wii thrives on cheep, easy games that are simple to play. Attracts a lot of new gamers, but the older ones are left out as a result. Motion controls, as the wii has it's set up, just don't work for a lot of genres, but they are great for point and click games and ones that only require motion to control, like golf. Everything else its stuck with a bad control scheme. The result? Formally mainstream genres become unplayable on the console. Not to mention, the lack of power makes the grand epics we see in the future of the PC, ps3, and 360 platforms near impossible. It just doesn't have what it takes to bring such games to light in the way the others can. Its like limiting a movie director to 8mm film, where as the other studios are letting them go hog wild with 32mm and digital stock. Sure you can make some great stuff, but the limitation is obvious. I've had a wii since release and well, it's novelty has worn on me. The two greatest games are ports form a previous generation. The controls on most games are horrid and graphics and sound seem washed out. It's pretty much the home console built for people who spend time on thousand dollar pc's playing java games. These aren't the people who run out and buy half life 2 or the like. What I fear is the wii's influence on the industry. I don't want to see the end of the epic game due to the profitability of the simple mini-game. It was that style of game design that caused the industry crash, and kept video games are child's toys for decades. Nintendo is making insane amounts of money by basically selling the TV console version of a gameboy. Gameboys rarely, if ever, produced any sort of epic game. The majority are simple junk thats really isn't worth playing in the long run. As for how they make so much money? They avoid costs. No online setups, no support for advanced audio or video options, outdated or barely acceptable hardware, and farming out main franchises to second or third parties. This lets them avoid all the sought after, but costly, expenses you see Sony or MS endure. But because of Nintendo's following, they can never be seen in a bad light. They can literally do no wrong in the eyes of most people. If Sony or MS had made the same design decisions, they woudl be bashed to hell and back. After all, didn't we bash sony for months over Ps3 spec's, yet have forever remained silent that Nintendo never released any wii specs? So really, the core of the matter is the wii is the home gameboy, with all the same limitations, and with largely the same audience in target. Frankly, I just don't see why thats a good thing.

    11. Re:All you Wii naysayers, your number is up... by shoemilk · · Score: 1

      I'm sorry for this really trolly post, but paragraphs, please use them.

    12. Re:All you Wii naysayers, your number is up... by LKM · · Score: 1

      Unfortunately, there's no Japanese training for foreigners - I'd buy that in a second. There's only a bunch of Japanese Training apps for the Japanese, which are only marginally useful for foreigners.

    13. Re:All you Wii naysayers, your number is up... by Anonymous Coward · · Score: 0
      By the end, many of the non-gamers were coming up to me, asking me how much the Wii cost, and where they could get them.

      So, where can you get them? I've never actually seen one for sale in any shop...

    14. Re:All you Wii naysayers, your number is up... by cosinezero · · Score: 2, Informative

      "It's clear, the Wii is a phonominon, like no other we've seen in videogame history." -->Actually, I -vividly- remember family parties when the atari came out. Young and old alike gathered around to play pacman, asteroids, space invaders. The NES kind of became too complex for people to immediately pick up - too many buttons for just anyone to get into a game. The wii is definitely a return to the place that an Atari had in the joe public household; intuitive controls making for a much more accessible game.

  25. Piracy is good for you shock by Bearhouse · · Score: 3, Funny

    This gem tucked away at the end of the article: 'As it turns out, software piracy can be good for you. "We have extremely strong brands [in Asia] thanks to the pirates; they have created millions of consumers - not customers,"...' That's why copy protection / prevention has been so weak in Microsoft products for years, and will probably remain so as long as 'free' alternatives exist. Quoting St. Francis Xavier: ''Give me the children until they are seven and anyone may have them afterward'. (Sometimes mis-attributed to Joseph Goebbels, albeit in a deformed way). In other words, get 'em young and they'll be asking for Vista & Outlook instead of Ubuntu & T'bird...

    1. Re:Piracy is good for you shock by supersysscvi · · Score: 1

      Quoting St. Francis Xavier: ''Give me the children until they are seven and anyone may have them afterward'.
      Whoa! St. Francis Xavier said that? Wow, I didn't know saints could have such a strong impact in the gaming industry. Maybe I should look this up some more...
  26. A vicious cycle... by Anonymous Coward · · Score: 0

    ...in which for some reason Nintendo seems to be the one that survives, and pulls the industry back on its feet. Back in the Atari-age video games crash, it was the NES that got the industry back up, after all.

    I think Microsoft and Sony might just be learning a lesson... there's a reason hardware doesn't just rush to 20million cores and 8x SLI: there's costs involved that prevent it from just jumping there, regardless of whether the technology gets researched and released easily.

    The 360 was supposed to be, just like the original Xbox, the top console in graphics. Sony raised the bar by matching (give or take) the 360's prowess. That's why the current video game market is divided by people into the 360/PS3 market and the PS2/Wii/portables market. Oh, and guess what? The PS2, the DS, and the Wii are the ones that are actually making any money out of this deal.

  27. No Game Boy Player for Wii by tepples · · Score: 1

    Entire Collection of GameCube Games True, but GameCube can play more games than Wii. GameCube can play nearly all Game Boy, Game Boy Color, and Game Boy Advance titles.

    Entire Collection of Virtual Console Releases Compare to "Entire Collection of GBA Homebrew Releases" and "Large Collection of Questionably Legal Emulated Games" on GameCube with Game Boy Player perhaps?
    1. Re:No Game Boy Player for Wii by Mr2001 · · Score: 1

      Well, as long as you're considering homebrew part of the game library... the Wii can play GameCube homebrew apps, and by extension, it can play all the GB/GBC/GBA games. You just need to use an emulator instead of the hardware GB Player.

      --
      Visual IRC: Fast. Powerful. Free.
    2. Re:No Game Boy Player for Wii by tepples · · Score: 1

      the Wii can play GameCube homebrew apps Does Wii Wi-Fi emulate the GameCube network adapter? If not, how does one load the homebrew onto the GameCube?
    3. Re:No Game Boy Player for Wii by Mr2001 · · Score: 1

      You use a memory card (SD + GameCube adapter) and a boot disc, as described here. Datel sells everything you need for $50.

      --
      Visual IRC: Fast. Powerful. Free.
    4. Re:No Game Boy Player for Wii by Anonymous Coward · · Score: 0

      Also the only reason why a Wii CAN'T use a Game Boy Player is because the Wii is not shaped like a Gamecube. The disk needed for it works... You'd need to mod the hardware to connect it up.

    5. Re:No Game Boy Player for Wii by Mr2001 · · Score: 1

      You'd need to mod more than just the shape. The Wii doesn't have the same expansion ports as the GameCube, so there's nowhere to plug in the GB Player.

      --
      Visual IRC: Fast. Powerful. Free.
  28. Seems to me everyone is getting what they want. by ZombieRoboNinja · · Score: 1

    Nintendo is selling oodles of consoles and games, which is obviously their game plan. I don't think anyone doubts that they're happy with this generation so far.

    Xbox 360 is selling decently, they're well on their way to being the "mainstay" system for hardcore gamers, and they're selling all sorts of crap that used to be free through their online service. Plus, they've got some great exclusives lined up (Mass Effect woo!) and they haven't even played the Halo card yet.

    Sony isn't selling as well as they might like, BUT they seem to have achieved their primary goal with the PS3: leveraging the console to push Blu-Ray over HD-DVD. Their console sales may suffer, but for some reason Sony seems to think that achieving Blu-Ray dominance is paramount, so I wouldn't guess they're disappointed quite yet.

    So really, while Sony and MS might each prefer to be grinding all opposition beneath their iron heels, it's not like they're failing at what they set out to do here.

  29. Consoles are a retail loss leader by tepples · · Score: 2, Interesting

    Generally retail stores buy product at 40-50% off of the suggested retail. Except video game consoles. Retail chains sell consoles as a loss leader (after overhead) to get people to buy games and accessories.
    1. Re:Consoles are a retail loss leader by faragon · · Score: 1

      In Spain, the margin for console is just a mere 5% (I can confirm it for PS3, but I suppose that figures are similar for the 360 and the Wii).

  30. Bias against the smallest studios by tepples · · Score: 1

    Make it cheap and easy to develop for. Except for microstudios. For a development team working out of their homes with a nearly complete title that runs on Windows OS, it costs a lot of money to meet Nintendo's demands. The team needs to have incorporation or limited partnership papers. The team needs to have office space that is detached from any residence. (Source: Warioworld.com)
    1. Re:Bias against the smallest studios by LWATCDR · · Score: 1

      Compared to PS3 and the even the 360 the Wii is cheap and easy. The cost of tools really is a small cost when you look at development costs.
      As far as I can tell none of the consoles are all that friendly towards microstudios. Low cost PS3 requires you to install Linux and prevents access to the graphics chip and I think the 360 makes distrbuting your own software not so easy but I really don't know.

      --
      See my blog http://ilovecookes.blogspot.com/ for light hearted technical information.
    2. Re:Bias against the smallest studios by tepples · · Score: 1

      As far as I can tell none of the consoles are all that friendly towards microstudios. So what strategy do you recommend for a microstudio's game that could be the next Bomberman? Four players can't fit around the typical 17" to 19" PC monitor, and even the PS3 is outselling set-top PCs.
    3. Re:Bias against the smallest studios by MeanderingMind · · Score: 1

      Make it a networkable game?

      Make it an emulatable NES/SNES/N64/TGFX16 rom?

      Get the necessary papers?

      Stalk Miyamoto?

      --
      Thunderclone: ONE MAN ENTERS! TWO MEN LEAVE! ONE MAN ENTERS! TWO MEN LEAVE!
    4. Re:Bias against the smallest studios by LWATCDR · · Score: 2, Insightful

      Put it out for the PC first or as a flash game on the web.
      Once you are making some money from it get an office and then a Wii Developers kit.

      Sort like what the creators of Bejeweled did.
      The really big question is will Nintendo offer something like the XBox Marketplace for cheap downloadable content?

      Once you start producing software for a living the cost of tools is really a pretty small expense. The real savings that the Wii offers over the PS3 and 360 is the cost of artwork and developer time. The Wii is just a super GC so if you have developed for the Gamecube the Wii will seem pretty much like the same old same old. The PS3 is nothing like the PS2 and the 360 is very different from the XBox.

      --
      See my blog http://ilovecookes.blogspot.com/ for light hearted technical information.
  31. Console makers' policy toward microstudios? by tepples · · Score: 1

    If anything I think games will move to the 'long tail' model. There still will be blockbusters, but there will also be small games that will find their own marketable niche. These will be developed by small companies, or even individuals and sold as downloads. Allowing any individual to develop and sell shareware on the walled-garden platforms would be a significant change in policy for the console makers, who have historically shunned microstudios. I don't see that happening this generation.
  32. I think the analysts are lying by tkrotchko · · Score: 4, Interesting

    I think for the most part the analysts are lying when they say Microsoft or Sony is losing hundreds of dollars on each console. When you look into all these pricings, they generally including costs that are comparable to retail.

    Not to mention that when you look at this article:
          http://www.ps3focus.com/archives/167
    It claimed a $100 loss if Sony sold at $500. But the retail is closer to $600 suggesting at worst Sony is breaking even.

    But then you look at this article:
            http://news.cnet.co.uk/gamesgear/0,39029682,492853 30,00.htm
    Which suggests at $600 Sony is losing $240.

    I say it's all nonsense. I think Sony & Microsoft like this analysis of pricing because people lap it up and think "Oh gee, for $600, I'm getting something worth almost twice as much! What a deal!". It plays on greed.

    The only people who know how much the console makes (or doesn't make) aren't saying. Everybody else is talking out of their ass. Everybody.

    --
    You were mistaken. Which is odd, since memory shouldn't be a problem for you
    1. Re:I think the analysts are lying by 2nd+Post! · · Score: 1

      Microsoft (MSFT)'s quarterly and annual reports detail exactly how much the XBox and XBox 360 is losing them money.

      Every quarter except for one, so far, they have lost money on those products. The only profitable quarter was the release of Halo2. That's it.

  33. Movie Industry Crash??? by RexRhino · · Score: 1

    The video game industry crashed back when video gaming was a rather less developed market... also, video games where so simple that it was easy to make a knockoff. (A knockoff of space invaders was almost exactly like space invaders... A knockoff of half-life, or halo, or splinter cell, will not be remotely enough like those games to steal their market). Now that the video game industry is larger than the movie industry, and there are several generations of people who grew up with video games, home video games aren't going anywhere.

    What we might see is a slow down in hardware advances, and video game production budgets going down. Maybe the current gen of hardware is used for the next 8 years instead of the next 4 years. We might see the life cycle for a video game platform be more like a movie platform (how long has DVD been around). But there is no video game crash coming.

  34. Attach rate by LKM · · Score: 1
    1. Re:Attach rate by walnutmon · · Score: 1

      Yes, Nintendo had a far better attach rate... in december 06... troll.

      --
      You take it, I don't want it...
    2. Re:Attach rate by LKM · · Score: 1

      What's your point?

    3. Re:Attach rate by walnutmon · · Score: 1

      My point is that giving a link that points to statistics that are 4 or 5 months old is ok if the systems had been out for several years, but they have only been out for 6 months. The reasons why the Wii has been so successfull in the short term are obvious. It is cheap, they made a bunch of them, and there has been a ton of hype surrounding it. The PS3 has been plagued by Sony's poor name and the high price of the system that up until now hasn't shown anything that the xBox is not capable of at a reduced price, besides blu-ray, which may or may not work out for them, but I think it's little more than a perk at this point.

      The fact of the matter is though, that at this moment, we dont' know how well the Wii or PS3 are doing. The Wii has a bunch of cutesy games and the PS3 has... well, very little to offer. The Wii is doing very well in the 8-12 year old demo too, which most people don't consider to be "gamers".

      Therefore, if the Wii succeeds and the PS3 and xBox begin to fail, that could be considered by most of us real gamers a crash, since we will no longer be getting the high quality in depth games that technology could provide, since the development cycles and R&D costs will no longer be worth the profits when they can just sell cheaper old school platformers and cartoony games...

      I like games like oblivion, not that it is perfect, but if the creation of games like that no longer are profitable because of the cheap and easy route of making games like castlevania: again, the games that people like me love will stop progressing.

      The idea of this article isn't that all games will be useless and all gaming companies will go out of business, it is that consumers as a whole will stop benefiting. If you like to play a particular type of game, that is fine, there is nothing to say that you should like my style of game. But the constant Nintendo cheerleading gets annoying because not EVERY gamer wants to play Zelda, Mario, or Metroid. So when those games start to rule the game world and force out competition, it is a bad thing. If Nintendo becomes the only profitable platform, not only will the games I like suffer, but it will only be a matter of time where the games Nintendo fans like begin to suffer.

      --
      You take it, I don't want it...
  35. Does MS make a profit on each Xbox sold? by LKM · · Score: 1

    You seem to be pretty sure about Microsoft's profit margin. I don't think they ever announced anything in that regard, have they? Frankly, I doubt they're making money on console sales. If they did make money, they would probably lower the price, given how the sales numbers of the 360 aren't exactly spectacular.

    Either way, as you say, Microsoft's console gaming division most certainly doesn't make money, all things considered. And not only due to their investment in games: They have a lot of investment to get back from developing the 360 itself, too. Not that it matters - Microsoft will gladly put billions into this whole idea just to destroy Sony.

    1. Re:Does MS make a profit on each Xbox sold? by Kelbear · · Score: 1

      I remember the announcement as well that the console sales are now generating a profit(less than 10 bucks IIRC, less than the per unit profit Nintendo is getting, but still a profit). I could google up a source for you, but then, you could do the same just as easily. And like you and the other poster, I too would bet that the MS gaming division has yet to make up for the amount of money sunk into it. It has made considerable headway in that regard though over the Xbox predecessor.

    2. Re:Does MS make a profit on each Xbox sold? by LKM · · Score: 1

      There was no announcement from Microsoft. iSuppli announced something to that end, but they are bascially making stuff up (okay, they are taking gear apart, trying to figure out how much it cost to put it together, which is rather similar to just making stuff up).

      True, though - compared to the original Xbox, the 360 is probably doing a lot better. I don't think the original Xboxes ever turned a profit, which is why Microsoft was so quick in killing it, and which is why Microsoft took a totally different approach with the 360.

  36. No, we can't drop that stupid thing! by LKM · · Score: 1

    Can we please drop the stupid 'they are in stock so that proves no one is buying them' concept?

    We could, if it weren't true. It's still early after launch. The PS3 launched a few weeks ago in Europe. I bought mine a week after launch and had no trouble finding one - most electronics shops had them in stock (although the store I bought mine in had no Sixaxis, so I bought one of these crappy Logitech pads with a freaking hairdrier inside them).

    It's not like Sony manufactured 6 millions of these. By all rights, they should be sold out.

    And while we are on this topic, can we also please drop the 'I don't know anyone with a PS3 but I know for a fact that everyone on earth wants a Wii'

    I don't think anyone said that, but if you mean to imply that the Wii doesn't have more mass market appeal than the PS3, you must have been sleeping for the last few months. Good morning, I hope you had a nice dream, because you're not going to like reality :-)

  37. Three Fearless Predictions by Trojan35 · · Score: 1

    1) You'll see less "fluff" in-game.
    The companies that will remain are the ones that control unnecessary costs. Aside from RPG's, you're not going to see CGI movies in games. It's unnecessary and costly.

    2) You'll see less "fluff" to buy.
    As the novelty of paying $5 for horse armor wears off, you'll see these silly products go by the wayside. They'll be replaced with full-fledged expansion packs like Shivering Isle.

    3) You'll see more *good* DLC/Full Games.
    EBGames should be scared. The future of the gaming industry is to get more $ out of the consumer to support higher development costs. The industry hasn't been able to raise the price on games enough to support this. The solution is to sell games at the same price, but through digital distribution. It cuts out the middle-man, and more importantly cuts-out used game sales.

  38. I've only been SHOUTING about this since last YEAR by Korexz · · Score: 1
  39. 1 company crashes, the other two thrive? by kinglink · · Score: 2, Informative

    Let's be honest here, Sony's lost 1 engine, and in a tail spin, they're likely going to crater or step out of the industry, they have given us no reason to remain and arn't looking like it in the future, but Microsoft is the young up and comer who's going to follow's sony's example (last generation it was Sony who was pulling a Microsoft, mega sales, great games, nothing could go wrong.)

    Nintendo has the key to avoiding another 1983 level crash. They sidestep all the problems and go in a new direction. A direction that lowers development cost (most development cost is to get better graphics or bigger games). Instead of a race to climb the next mountain they are going around the mountain.

    Essentially the problem with this generation is everyone wants more content, more game, more graphics, and they want them all to look bigger and better. The problem is this costs money. GTA style games are big bucks now but they are even bigger budgets because you have to make a huge world.

    I don't see a 1983 crash happening, however I do see Xbox struggling next generation, Sony being driven to a sink or swim level, but Nintendo's the fuzzy factor, if the industry starts working with the Wii, and developing lower budget but more innovative titles then you can see millions saved just from that move and the market is saved, otherwise you're going to see an epic level crash when we get to the question "what's next" after the 360? Better physics, better graphics? We're just killing ourself with every step we take on that path because the gameplay which has always mattered is ignored yet again.

    Personally it's getting to that point. What's the difference between command and conquer 3, Company of heroes and Warcraft 3? Different motif, pretty much same game. What's the difference between Halo 2, Half-life 2, and Doom 3? Most JRPGS? Kotor 1 vs Kotor 2 vs fable vs the next western RPG. Most SRPGS based on disgaea typed engines (not even just nippon ichi titles)?

    We are getting the same game over and over with slight changes and slight modifications and people are starting to realize that not every game is a completely unique and new experience, and from the sound of it we are getting pissed.

  40. We broke them! by Anonymous Coward · · Score: 0

    Haha! I bought 3 consoles with no intention of buying any games, just to spite the console manufacturers. I know you all did the same!

  41. they're losing money on the hardware, sure. by DragonTHC · · Score: 1

    but they're raking in the profit on software licensing.

    They get paid a "per unit" fee for licensing. and don't forget how much the sdk costs to license.

    --
    They're using their grammar skills there.
  42. Last I heard... by Dave+Parrish · · Score: 1

    Nintendo ISN'T losing money on every console sold.

    Maybe Sony and Microsoft need to take a look at the Wii's success and figure out that gamers don't want pretty graphics at outrageous prices. We want to have FUN.

    There is absolutely nothing, in my mind, to justify paying $600 for a video game console. If I wanted ridiculous graphics, I'd go outside. I hear the resolution is FANTASTIC.

    1. Re:Last I heard... by prunde · · Score: 1

      There is absolutely nothing, in my mind, to justify paying $600 for a video game console. If I wanted ridiculous graphics, I'd go outside. I hear the resolution is FANTASTIC.

      There is absolutely nothing, in my mind, to justify paying $200 to play golf on the Wii. Using the logic of the above statement and my own experience, the four hours on an actual golf course ($30-$50 for 18 holes in my area) will never be matched by any amount of play time of any sports game on any platform. That doesn't mean I don't find these games entertaining. I enjoy them. They just do not compare to the real thing.

      The point is, I don't want ridiculous graphics to experience what I can find outside my door. I want ridiculous graphics to immerse me in places I cannot go. I seek out games the same way I do movies and novels. I want to sample the sights, sounds, and emotions that I can not, or do not want to, experience in real life. The best novels, movies and games will draw me into their worlds and keep me there for as long as I choose. The bad ones, through bad writing, acting, directing, etc..., will jar me out of that world.

      The truth is, the most entertaining games on the Wii are just inadequate imitations of what we can choose to do in real life. The other games, where we seek total immersion in unknown worlds, the Wii's controllers have a negative effect. At best, they can only attempt to simulate interaction in a game world using inappropriate physical activity by the player. This activity only reminds the player that he/she is doing the jig in front of the TV set. It reminds the player that he/she is as far from the imaginary world of the game as he/she can get.

      But I am not dismissing the Wii's innovations. It is a step in the right direction. It is just that we have a very, very, very long way to go. Right now, the games I desire will have the best graphics, AI, sound, gameplay and the least physical interaction. Physical interaction only makes sense when you have tactile feedback. In other words, when you are running in the game, you feel like you are actually running, not just hopping up and down.

    2. Re:Last I heard... by Dave+Parrish · · Score: 1

      Um. Your argument essentially hinges on the fact that the most impressive Wii game is Wii Sports. That's a bit of a stretch, wouldn't you say?

      Unless you are implying Super Paper Mario or Warioware are "inadequate imitations of what we can choose to do in real life." I don't know about you, but I can't flip to other dimensions (ala Paper Mario).

  43. Absured by HotDogWater · · Score: 2, Funny

    I find it hard to believe that many game industries like Playstation would produce something like the PS3 knowing that they would loose money on it. What did they hire the team of monkeys from career builder. Maybe blueray dvd in the PS3 was not a great idea after all. At least Capcom is making shit tons of money from their awesome games like dead rising and lost planet.

  44. I have money! by crhylove · · Score: 1

    OK, maybe that's a gross exaggeration, but seriously, can I just get a good game or two? The only thing keeping me off of Linux was a lack of good games, but then I realized there weren't really good games out for Xbox, PS3, or Windows, either, so......

    I mean, is there a single game out that is better than the old Nintendo games in emulation? You give me a game as fun as Mario Kart 64, and I'll consider buying it, a console, and 4+ controllers.

    Till then, my friends and I will keep playing Mario Kart and Urban Terror like we do now.

    It's funny to watch the same corporations who are failing in the music industry duplicate their failed efforts in the video game market. They don't understand the product, they don't understand the consumer, it's a wonder they EVER made money if you ask me!!

    rhY

    --
    I hold very few opinions. I hold information based on observation and fact. If you wish to disagree, please use facts.
    1. Re:I have money! by ShadowsHawk · · Score: 1

      Mario Kart DS is fantastic. I spent several hours on Sunday hanging out with a bunch of friends playing via WiFi.

    2. Re:I have money! by crhylove · · Score: 1

      Can you play more than 4 players at once? I've been considering the DS anyway for it's hackablity.

      --
      I hold very few opinions. I hold information based on observation and fact. If you wish to disagree, please use facts.
  45. One word sells - "Fun" by Danathar · · Score: 1

    Graphics, controllers, sounds they all are secondary to one thing, having fun. If there is one word that should be on the wall of every game developer it's "FUN".

    You can achieve this without spending a 100 million dollars in development.

  46. Blacklist? by tepples · · Score: 1

    You use a memory card (SD + GameCube adapter) and a boot disc, as described here. Datel sells everything you need for $50. Do I run the risk of Wii system software updates blacklisting Datel's boot disc, as the September 2005 Nintendo DS update did with PassMe and WiFiMe and as nearly every Sony PSP update does?
    1. Re:Blacklist? by Mr2001 · · Score: 1

      Doubt it. As far as I know, Nintendo is committed to 100% compatibility with GC discs, which would include this one (as well as the Action Replay, which is for cheat codes but can also be used to boot homebrew). I don't know if a firmware update could even blacklist GC discs, from what I've heard about how the backward compatibility is implemented. You can also use a mod chip to boot homebrew, but I don't have the details.

      --
      Visual IRC: Fast. Powerful. Free.
  47. -1, Offtopic by 75th+Trombone · · Score: 3, Insightful

    Quoth your sig:

    Who the f*** decided that sentences on the Internet shall no longer be formatted with two spaces after a period?!

    It's never been proper typography to put two spaces after sentences in any type that doesn't use a monospaced font. Double-spaces are an unfortunate carryover from typewriter (i.e. monospaced) days, and the HTML folks were doing the right thing in abolishing them.

    You should check out The PC is Not a Typewriter or The Mac is Not a Typewriter for more bad computer habits that make designers cringe.

    --
    The United States of America: We do what we must because we can.
  48. -1, Offtopic, Redundant by 75th+Trombone · · Score: 1

    Incorrect. See my reply to the GP.

    --
    The United States of America: We do what we must because we can.
  49. I'm laughing with them by patio11 · · Score: 1

    My NTDOY stock is up enough to buy me a second Wii if I sold. (And I got in after Christmas.) I'm promising myself that I'll buy more stock every time I buy more games to keep myself from frittering away too much money. Ooooh, did somebody say Brawl is coming out soon? What was that brokerage password again...

  50. PS4? by master_p · · Score: 1

    Sony painted itself into a corner with PS3: each new Sony console is a quantum leap, technologically speaking, from the previous one. But it is very hard to sustain that model. Unless they find a way for the PS4 to have the power of Deep Blue, I just do not see it possible. And then, of course, it would mean more nightmares for the programmers. That's Sony's crash, not the videogame industry's...

  51. As often a bad article by jean-guy69 · · Score: 1

    * Nintendo don't loose money on Wii hardware.

    * Wii development cost aren't significantly higher than gamecube ones, and significantly lower than the other current consoles.

    * The screendigest graphic is totally false and give a false picture of the market.

    It seems as Xbox 360 PS3 and Wii were released simultaneously, which is of course false.
    And the ratio between teir marketshares is untrue as well.

    On a correct graphic, Wii market share would look a lot more spectacular, in term of absolute market share and of progression. The forecast wouldn't be credible at all.

    It's like the incorrectness was intentionnaly introduced in the graph to make the forecast seem realizable.

    All in all, the points made seem to apply to the Xbox360 and the PS3, definitively not to the Wii.

    Maybe as the article suggests Sony and MS are in a dead-end (IMHO it's doubtful), that's definitely not the case of Nintendo.

  52. Oh well... by Anonymous Coward · · Score: 0

    XBox/360 is more than the console; XBox Live has got to be the biggest money loser for MS; there's advertising, promotions, and all the stuff that builds the entire ecosystem for XBox.

    I don't believe MS or Sony loses money selling individual consoles. But it's likely that MS has lost money overall on videogame sales.

  53. Of course... by Talgrath · · Score: 1

    That's why video game sales numbers have been rising the past two months and are predicted to remain about the same this month; it makes perfect sense, the video game industry is heading towards a crash. Why anybody turns to the BBC for news with "insight" like this is beyond me.

  54. Huh??? by LKM · · Score: 1

    So your point is that you think that the Wii Attach Rate Statistics are outdated. Well, I linked to a google search on "wii attach rate," to which you replied with "Yes, Nintendo had a far better attach rate... in december 06... troll."

    In this context, "attach rate" refers to the number of games sold for each console ("The game attach rate is defined as the average number of games purchased per game system, calculated by simply dividing the total number of games sold by the total number of consoles sold," as defined by arstechnica). Now, this number has an interesting property: It typically only ever goes up during the lifetime of a console. The reason is simple: The older a console is, the more owners you have who have owned the console for a longer time, and have thus had more time to buy games.

    Or, in other words, you're very likely to own more games for your 5-years-old PS2 than for your brand-new PS3.

    So, back to your argument: You're claiming that the attach rate from 4 months ago is useless. Now lets go back to what the original argument that sparked the discussion was:

    It's a good thing they're not losing money on those consoles, cause they're certainly not making any on games. What's the only game 90% of the Wii owners are playing? Wii sports. And are they buying others? Nope, because the gimmick pretty much ends there.

    The claim was that people who buy Wiis don't buy other games. But even the attach rate of a few months ago - which has only gone up since then - disproves that.

    You still have not explained to me how what I wrote is wrong in any way. I have no idea why you keep ranting on and on about the PS3 or the Xbox or the Wii's success. This discussion has got nothing to do with success or failure, with the "console war," with crashes, with Oblivion, with game styles, with "Nintendo Fans," or with which console comes out on top. In fact, I actually own a PS3 and very much want it to succeed.

    I only said that the original claim - that Wii buyers only play Wii Sports - is wrong.

    In fact, I still don't quite understand what made you so angry, and why you keep ranting on and on about all those things, about which I have claimed nothing at all.

    Frankly, I'm still not entirely sure what you're trying to tell me. You sound a bit like a anti-Nintendo fanboy, jumping at every chance he gets to rant about how bad Nintendo is.

  55. I'll be ready this time! by Hoi+Polloi · · Score: 1

    I grew up through the first crash so I'll be ready this time. I've got the basement stocked with MAME and a bunch of cds full of ROMS in addition to my FPS and RPG games. As a final backup my web browser has links to a bunch of free online java/flash games. I have a generator for my desktop and a modem to back up my DSL line. Clothing-wise I have 1 pair of faded black jeans and a too small t-shirt that says "Drow Do It In The Dark". My food supply consists of a few months supply of fruit leather, Goldfish crackers, Diet Coke, and boil in a bag dinners. I also have a cache of virtual weapons online to protect myself against any orcs or AK-47 tot'n enemies. For hygiene I have a bottle of Listerine, a bottle of Purell, some handwipes I got from a BBQ place and a stick of deodorant. Finally, I have a comfy desk chair with a built in bedpan for extended gaming sessions but I've already had that for a while.

    --
    It is by the juice of the coffee bean that thoughts acquire speed, the teeth acquire stains. The stains become a warning