The Center for an Urban Future, a Manhattan-based think tank, has a report on New York's growing games industry. GameDaily reports that Take-Two and Atari, along with 30 game development companies and some 55 firms related to the industry, have a presence in the city that never sleeps. The size of the community is way behind cities like Seattle, San Francisco and LA, but there are approximately 1,200 people working within the industry around NYC.

IGDA Executive Director Jason Della Rocca says that although one would think NYC would be an "ideal place" for game developers, he points out that even Boston has a larger community. He explains that five or six years ago there has almost nothing in NYC, but that some casual game firms and a couple major studios have changed that. (Forgive us for what we're about to write.) So, start spreading the news, game developers are longing to stay. They want to be a part of it ... New York, New York.

Quietly unveiled at yesterday's PSN session was PhyreEngine, a new "free to use graphics engine" from Sony Computer Entertainment. According to the presentation, the package includes full documentation, "70+ samples" and "full source code and artwork" of sample game templates. Working on both OpenGL and Direct3D, this engine will allow developers to more easily develop for the PS3 by using PC environments they're more familiar with. A "simple recompile" is supposedly all that's needed to make the game run on the PS3. Sony is promising "ongoing development and support" for the PhyreEngine.

The ramifications of this subdued announcement are actually quite significant. Three titles have been revealed to have used the PhyreEngine for development: flOw, GripShift and DiRT. Of those three, only one is exclusive to PlayStation. It appears that the PhyreEngine is truly cross platform -- Sony is indirectly contributing to the development of PC (and Xbox 360) games.

But why make it potentially easier to make games on a competing console? Well, it's undeniable that developers are increasingly focused on multiplatform development. It's been rather commonplace for developers to neglect PS3 with inferior and oftentimes delayed versions of multiplatform games. With PhyreEngine, Sony is making a much more attractive plea: make games on PS3 first, guaranteeing high quality games that will not only match their 360 counterparts, but in many cases can exceed them. Sony's message is clear: start games on the PS3, and they will be better for both PS3 and 360 owners. It appears to us that PhyreEngine is a crucial part of that plan.

Traditional, point-based motion capture (the kind brought to you by guys in black suits with reflective balls) has been great for developers that want to capture basic skeletal motion for their in-game characters. But for realistic facial work, even setups with hundreds of reflective dots leave developers with rough, blocky data that requires a lot of post-production work to even start approaching the uncanny valley.

Enter motion capture company Mova, whose Contour Reality Capture system uses an array of cameras to create 100,000 polygon facial models that are accurate to within a tenth of a millimeter -- no special reflective balls required. At this year's GDC, the company is trying to attract the game industry's attention by unveiling examples of their facial modeling running in real-time on the popular Unreal Engine 3. Continue reading for exclusive, real-time video of the technology and excerpts from an interview with the Mova founder Steve Perlman.

Game developers always have a sizable stack of things to worry about when working on a new project; things like: Is my game going to be any good? Will people buy my game? Am I making Vampire Rain? Is it too late to cancel? Of course, financial worries are always present for developers, who have a growing number of costs to deal with during the creation of a game. However, according to a recent report by BBC News, budgeting woes have escalated into a full-blown panic among developers due to the growing cost of making games for next-gen consoles.

To put things in perspective, the article gives the example of Namco, who, in 1982, made Pac-Man for nearly $100,000 (today, it would be about double that amount, due to inflation). According to BBC News, the average PS3 game costs nearly $15 million to make -- and that's before any marketing is done for the game. Not only is this bad news for gamers, as it almost ensures our store shelves will be stocked with sequel after buyer-recognizable sequel, but it's also bad for developers, who could go belly up after one unsuccessful title.

As technology continues to improve and game consoles get more sophisticated, we wonder how this price spiral will continue to affect the industry. Will there be more safety-ensuring corporate mergers? Higher quality games? Most worryingly -- will there be too few games released to sustain the industry? The video game crash of 1983 was due to there being too many games on the market -- will a situation on the opposite end of the spectrum lead to another crash? For all our sakes, we certainly hope not.

(Via Evil Avatar)

Nothing takes away from a good, in-game voice acting performance than lip-syncing that looks like it came from a badly dubbed kung fu movie. But what developer wants to go through the painstaking process of modeling every minute mouth movement? That's where Sega comes in, with a new software tool that analyzes a voice sample and automatically matches a characters facial movements to the spoken words. The tool can even reportedly detect "happiness, anger, surprise and sadness" in the voice and change the character's facial expression accordingly.

Of course, Sega's lip-syncing solution isn't the only one out there, but this new tool reportedly "increased efficiency nearly 100-fold" in internal tests. That leaves plenty of time for more important things, like selling your body on the street to pay the tool's 207,900 yen ($1,862) asking price. That might be chump change for the big guys, but bedroom programmers should work on their come hither smile.

It only takes a quick, comparative glance at Pong and BioShock to see how far gaming technology has coming in a relatively short time. But despite all the progress, we haven't quite reached the pinnacle of a real-time, controllable, photo-realistic environments quite yet. What's stopping us? Popular Science takes a look with a recent piece on the ten greatest challenges in making realistic games.

The photo essay looks at some neat cutting edge technology aimed at fixing virtual modeling problems both natural (water and fire are particularly nasty to model) and human (artificial intelligence and uncanny valley faces, for instance), but the technology that impressed us most is based firmly in the real world. Organic Motion's Stage system replaces the standard black-with-ping-pong-balls motion capture suit with a simpler system. "Subjects step in front of the camera in their street clothes, and instantly their avatar forms onscreen," reads Pop Sci's description of what sounds to us like the coolest thing ever.

So will we ever reach that holy grail of totally reality simulation? It's a possibility if Moore's Law keeps up, but there'll almost certainly always be something to improve. As one designer put it to the magazine, "the more we can do, the more excited we get, and the more we want to do." In other words, the reach will always exceed the grasp.

[Thanks Wonderflex]

"Want to play the world's greatest game? Well, you can't, because you haven't made it yet!"

Every time one of those commercials come on, tempting impressionable youth into delusions of game design grandeur and luring them into less-than-stellar colleges focused on game development skills, we cringe. Badly. To the point where our significant others wonder if we're developing some kind of chemical imbalance. Are these game-centric universities worth the money?

The experts over at GameCareerGuide lay out the various advantages and disadvantages of attending a game school (as opposed to a more traditional university). While leaving their final opinion ambiguous, the article does a great job of preparing up-and-coming bright minds about the ramifications of their educational decision. We're not going to give any sagacious advice, either, but we will recommend anyone considering a game development school to attend one near a cluster of development studios so that you can benefit from a co-op work program and do some beneficial networking.

Sony is offering non-commercial PSP development kits at a "vastly reduced rate" for universities to purchase, according to SCE Europe's academic liasion Sarah Lemarié at the Develop Conference (via Pocket Gamer).

The kits reportedly build off of the the Linux-based PlayStation 2 schemes found in 20 UK universities. They will also ship with the same programming and debugging tools as used by commercial studios. Expected launch partners include University of Abertay Dundee, Sheffield Hallam and Hull universities.

We can't wait to see how this might expand the PSP's homebrew scene. Further details are expected soon; no word on Sony's academic pursuits in other regions (e.g. North America, Japan).

[Via PSP Fanboy]

Sony's trying to make their PlayStation Network all it can be by shifting their San Diego studio into full PSN development. According to Gamamsutra the San Diego studio has "shifted focus" to three different PSN games. The studio has approximately 30 people in development, however it also houses various facilities like a motion capture studio which will still be used for large-scale games. Each of the three games will be composed of a ten person team. No word yet on what any of the games are.

Sony's PSN tactic seems to be taking the first-party approach compared to Microsoft's XBLA, which utilizes many third-party developers. A break-out hit on PSN would help Sony maybe sell a few more PS3 units until they get their software act together.

There be much gaming going on in the great state of Texas. Many MMOs have a connection to Austin, just a sample list includes: BioWare's studio, some Sony Online Entertainment stuff and Blizzard is setting up camp there too. Recently, Gov. Rick Perry signed a bill providing game developers up to $250,000 in grants ... with a few little addendums, provisos and other such caveats.

To keep the dogs at bay, the incentives have restrictions on paying for violent games. Actually, it's a little deeper. The state can pick and choose the games they want to fund, avoiding those considered "obscene." Yes, that should make anybody not making the World of That's So Raven game just a little nervous. Oh, and the game can't "portray Texas or Texans in a negative fashion."

Tabula Rasa lead developer Richard Garriott said, "This is a great first step in trying to support developers who already are in the state of Texas or might consider developing projects in the state of Texas ... Our industry doesn't have a very sophisticated lobbying process. I do believe the legislators that have carried this through for us have done so in spite of the utter lack of lobbying." Oh well, any state that wants to give money to fund video games, even if there are restrictions, can't be all bad. At least it's not half as ironic as Boston's Mayor Menino meeting with game developers. So, developers, if you're looking for some cash, they make the grants bigger in Texas.

Three days, 62 programmers, and we can assume at least three dozen cases of Jolt Cola. The second Toronto Indie Game Development Jam (T.O. Jam ... get it?!) has come and gone, leaving in its wake nearly two dozen games created by programmers from across the continent. T.O. Jam is aimed at stirring creativity and helping game developers get the most out of their coding time. It isn't a competition, it isn't a seminar, it's just a bunch of geeks writing code for three days.

Only seven of the 20 games have been released, but already a few gems have surfaced. Especially worth checking out is Xiq, a clever combination of Qix and Vectrex.

Being a talented programmer and an accomplished artist can be two separate skills. Just because you can string lines of code together doesn't mean you can make pretty pictures people want to look at while playing your game. Enter Danc of Lost Garden and his new design challenge that gives you everything you need to make a game -- except the programming muscle.

Danc provides the graphics, including character sprites, items, and backgrounds. He also has a gameplay outline that is constantly being refined. The game, SpaceCute, should be a single player golf title with a strong focus on physics. Because programmers don't have to be concerned with graphics or basic gameplay mechanics, they're free to experiment and make the game as crazy as their imaginations can conjure.

The challenge is well underway (a few prototypes have already been released), but if you've got the skills and the game idea sparks your interest, it's never too late to jump in.

[Via Independent Gaming]

When you combine the words "serious" "learning" and "hard" in the same sentence, chances are you're going to end up with something that gamers won't like. But that's what the Serious Games Initiative is all about, developing games for "non-entertainment" purposes. Of course, the problem is games for non-entertainment tend to scare people away faster than the phrase "edutainment."

That's the main problem facing Serious Games, how do they make it seem like they aren't hiding the broccoli under the meatloaf? All of the games shown off were educational in one form or another, having to do with zapping cancer cells inside the human body, or how to interact with people in the workplace. Seriously, there is a game about the proper way to run a meeting, collaborate with coworkers, and generally function in an office. Too bad it's not running on the Unreal Engine. Zing!

A GDC seminar given by Tsutomu Kouno, director or LocoRoco, explored his process and goals in creating that PSP game. Like Miyamoto said earlier that day, Kouno wanted to make people smile. Speaking in Japanese, with us listening to a group of translators over a set of headphones, Kouno began with a personal history.

He described growing up making toys, saying he would show them to people to make them laugh. He felt that LocoRoco came from that history. He said, "I wanted to make a game that was easy to play, so that women and children, and people who have never played games before would be interested in playing it. ... I wanted to use AI to make people laugh. That's why I included actions like the LocoRoco stacking up."

See our gallery of LocoRoco design slides from the seminar.

Monday afternoon brought a pack of indie gaming stars out of their dark workspaces and into the spotlight of the Independent Games Summit. Kyle Gabler (Tower of Goo), Jenova Chen (flOw), Jonathan Blow, and several others were on hand to discuss the role innovation plays in independent game development. The overused "i" word has become a cliché in recent years with commercial developers using it to mask the ugly symptoms of sequelitis. But with smaller dev teams and less emphasis on making money, indie developers actually can focus on creating interesting content and stretching the boundaries of gaming conventions.

As Gabler points out, computing power will continue to progress over the next several decades and exceed our ability to use it. Instead of inventing new gimmicks to distract us, games must focus on the one thing that doesn't change: human emotion. That's the reason Final Fantasy VII will make you cry (if you're a wimp), Beyond Good and Evil will make you hate Big Brother, and Tetris will lead to the development of an odd proclivity for stacking objects.