Data Filter: The News You Need in Easy-to-Swallow Gel Cap Form

Electronic Gaming Business, Nov 3, 2004

News-o-Matic

Whassup?: Microsoft planned to launch its Xbox Live Arcade product on Nov. 3. Aimed at casual and female gamers, the service will let you download classic casual titles like Galaga, Pole Position and Bejeweled for $10 to $20 each. Once a game is downloaded it can be played offline. A free Ms. Pac Man title will come with the starter disc, but fewer than 10 games are ready for launch. So What?: Charging standard download game fees on top of the Xbox Live fee is short-sighted (MS should be underwriting this to capture a broader audience). And is this targeted at women who happen to have guys in the house with an Xbox Live account? Wouldn't those be the households where the male gamer already dominates the console? Right games, wrong platform. Put these arcade games on inexpensive discs and distribute them where you know you can reach casual and female gamers. A free Bejeweled demo with that Victoria's Secret teddy? Why not?

Whassup?: Cablevision doubles the number of interactive games available on its digital cable set-top boxes, including basic space shooters, puzzle and arcade games. Nearly 1 million games were played on Cablevision's iO Digital in September alone. ITV games maker Zodiac Gaming www.zodiacgaming.com) supplies Cablevision with the titles, and iO's Games Channel and arcade games packages have both been nominated for technical Emmys.

So What?: Good ITV games like these are more likely to grab casual players of all genders than any hapless attempts to redraw the image of consoles as Momfriendly. Those million games played on iO were off of a relatively small 1.2 million installed base. That is impressive and ominous for mainstream gaming. Consoles usually occupy the main family TV. What happens to game play time when mom and dad want to play ITV Canasta and little Ricky wants to play Halo 3?

Whassup?: Midway Games is celebrating its return from ignominy, announcing that Mortal Kombat: Deception sold 1 million copies in its first week at retail and that 130,000 matches had been played online. This comes after years of delayed products that performed poorly.

So What?: CEO David Zucker told the Associated Press recently that he will add more titles for young children, a smart move considering that the kid segment is moving to consoles at an earlier age than previous game generations. Midway also has become one of the most active licensors of game properties to film, with three projects in development with perennial suitor Viacom and Universal.

Whassup?: Blockbuster rolls out its DVD/game trade-in program at 3,000 stores nationwide. Customers can trade in games for store credit that can be used on any film or game rentals and purchases. BB is claiming it pays top dollar for games, offering $35 trade value for Star Wars Battlefront and Mortal Kombat Deception as well as special incentives for trading in three or more titles at a time for specific systems.

So What?: This represent a serious challenge to specialty retailers and even big box stores, and BB's special offers and best trade claims means the company is intent on taking share from traditional game sales venues. In almost all earnings reports from BB in the past two years, the company has shown substantial growth in video game sales, and it knows where the market is headed. As we have said in EGB exhaustively, the local video stores still represent one of the great untapped marketing/merchandising venues for games.

Whassup?: Europeans say no to convergent devices. Jupiter Research reports that only 7% of consumers in the major nations of the European Union are interested in a portable game and video playback combo unit. Merely 5% are interested in a music/video playback combo, while 27% like the idea of a music-only player. Size, weight and lack of content put people off to the idea of convergent portable media.

So What?: Handheld multimedia is an idea with niche written all over it, and it is good thing that Sony's large, battery sucking PSP will come in at under $200. At least it will grab the game core, but we think Sony is overreaching with this device. The convergence fantasy is beginning to fade. Sony's multi-function PSX is limping in Japan and, wisely, both Sony and MS seem to be backing off plans to burden next-gen consoles with PVRs and recordable DVD. Multi-function hardware is a losing consumer proposition.

Whassup?: Legendary RPG developer BioWare opens its own online store at http://store.bioware.com, where it sells direct to consumers add-on modules and tool sets to its previously released titles like Neverwinter Nights. Two modules are now on sale for between $4.99 and $7.99. They offer short additional game play with voiceovers.

So What?: It's a great idea, well implemented at BioWare's site. Incremental content sales represent an important revenue stream for companies, and they also extend brand loyalty among a game's base. The fee structure and game size (under 10 hours) are well tuned. For developers, especially, this can represent an important way to supplement their capricious cash flow and keep franchises alive.