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[Prinny Blog]
Disgaea developer and publisher Nippon Ichi didn't have the best 2009, dood. Last week, the company announced its earnings for the first nine months of its fiscal year (ending December 31, 2009), recording operating profits 97.5% lower than those of 2008.

This week, reacting to the news of the precipitous drop, investors freaked out a bit and the price of NIS stock on the Japanese JASDAQ exchange dropped ¥7,000 ($78.42), almost 20%. JASDAQ froze the price, or it might have dropped further. Siliconera posted a list of all recent and upcoming NIS games. Have a look -- we're sure NIS America would really, really appreciate a purchase of Sakura Wars: So Long, My Love or Holy Invasion of Privacy, Badman 2 in the next few months.

JoystiqNippon Ichi earnings plummet in 2009 originally appeared on Joystiq on Tue, 09 Feb 2010 03:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>disgaeaearningsjapannippon-ichinippon-ichi-softwarerecessionTue, 09 Feb 2010 03:00:00 EST<![CDATA[NPD discovers why people braved the Black Friday crowds]]>http://www.joystiq.com/2009/12/01/npd-discovers-why-people-braved-the-black-friday-crowds/http://www.joystiq.com/2009/12/01/npd-discovers-why-people-braved-the-black-friday-crowds/http://www.joystiq.com/2009/12/01/npd-discovers-why-people-braved-the-black-friday-crowds/#commentsNPD, known in the video game world for its US sales charts, has released its first study of the Black Friday phenomenon. "The Anatomy of Black Friday 2009" is based on a survey of 1,700 shoppers about their Black Friday shopping activities. Why, exactly, did shoppers wake up at ridiculous times and stand out in the cold just for the privilege of being crammed into Best Buy or wherever like sardines? For 35% of Black Friday shoppers, it was a specific item. "I saw an item I wanted advertised on sale" was the top response, followed by "I was just curious to see what was out there."

The top reason for not subjecting themselves to the crowds and queues to buy anything on Black Friday? No, it wasn't "I'm not crazy," it was "no money."

JoystiqNPD discovers why people braved the Black Friday crowds originally appeared on Joystiq on Tue, 01 Dec 2009 01:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>anatomy-of-black-friday-2009black-fridayblack-friday-2009dealsnpdrecessionshoppingTue, 01 Dec 2009 01:00:00 EST<![CDATA[Man forced by kidnappers to purchase a PlayStation 3]]>http://www.joystiq.com/2009/11/14/man-forced-by-kidnappers-to-purchase-a-playstation-3/http://www.joystiq.com/2009/11/14/man-forced-by-kidnappers-to-purchase-a-playstation-3/http://www.joystiq.com/2009/11/14/man-forced-by-kidnappers-to-purchase-a-playstation-3/#comments You can tell the recession is dramatically affecting folks all over the United States when stories about kidnappers forcing their detainee to buy them gaming consoles arise. That's exactly what Kyle Yarkosky is alleging that David Daniels and another unnamed suspect did to him, after forcing him at gunpoint into their vehicle, having him steal his stepfather's credit card, and then drive to the local Walmart where they made him buy them a PlayStation 3.

Naples News reports that the suspected assailants entered the Pebblebrooke Lakes gated community in a white truck, with Yarkosky following behind on foot, said to be headed to "meet a friend." Instead, the truck allegedly stopped, with Daniels and "an Asian-looking man" exiting and ordering Yarkosky into their vehicle. The two suspects are said to have forced Yarkosky to steal his stepfather's credit card and drive to a local Walmart, where Daniels intended on having a gun purchased. When the gun counter was closed, he then requested Yarkosky purchase a PlayStation 3. According to reports, Daniels then told Yarkosky he was "free to go," thus ending the ordeal.

[Thanks Kreyg!]

JoystiqMan forced by kidnappers to purchase a PlayStation 3 originally appeared on Joystiq on Sat, 14 Nov 2009 11:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>collier-countycrimedavid-danielseconomyfloridakidnappingkyle-yarkoskynaples-newsrecessionrobberytheftTheFlamingLipsWal-Mart StoresWal-martStoreswalmart adWalmartAdSat, 14 Nov 2009 11:30:00 EST<![CDATA[Sony: PS3 price cut not due to 'market conditions,' more social networking features on the way]]>http://www.joystiq.com/2009/08/24/sony-ps3-price-cut-not-due-to-market-conditions-more-social/http://www.joystiq.com/2009/08/24/sony-ps3-price-cut-not-due-to-market-conditions-more-social/http://www.joystiq.com/2009/08/24/sony-ps3-price-cut-not-due-to-market-conditions-more-social/#comments
Though the world economy is crumbling faster than a three-year-old sugar cookie lying on the floor of a jam-packed mosh pit, the recent cheapening of the PS3 shouldn't be attributed to current market conditions. Don't believe us? Perhaps you'll pay heed to the words of SCEE president Andrew House, who explained, "We are aware that consumers are watching their euros and pounds more carefully than before," but later added, "it would not be fair to say [the PS3 price cut] is a reaction to current market conditions." See? We told you.

This quote came in the middle of an interview with Financial Times -- an interview in which House would later mention that Sony is planning on implementing additional "social networking features" into the platform. Financial Times' write-up mentions a possible "tie-up with popular sites such as Facebook," but heck -- we'd be content with just being able to, y'know, talk to each other regardless of what games we're playing.

[Via Edge Online]

JoystiqSony: PS3 price cut not due to 'market conditions,' more social networking features on the way originally appeared on Joystiq on Mon, 24 Aug 2009 15:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>andrew-housecross-game-communicationfacebookmarketprice-cutps3-slimrecessionsocial-networkingMon, 24 Aug 2009 15:30:00 EST<![CDATA[Atomic Games unable to secure funding for Six Days in Fallujah, reduces staff]]>http://www.joystiq.com/2009/08/06/atomic-games-unable-to-secure-funding-for-six-days-in-fallujah/http://www.joystiq.com/2009/08/06/atomic-games-unable-to-secure-funding-for-six-days-in-fallujah/http://www.joystiq.com/2009/08/06/atomic-games-unable-to-secure-funding-for-six-days-in-fallujah/#comments
(click to embiggen)

Citing a lack of "full-scale funding" for controversial game Six Days in Fallujah, Atomic Games is reporting today that it's trimming staff. According to Atomic, the 75 employees of the studio remained until this week when an undisclosed amount were let go.

Though the developer assures the "dozens of Marine veterans" who have spent "hundreds of hours in this project" that it will "fight on," we worry that this is just one more sign of a likely to-be-canceled game. After Konami dropped out as the game's publisher back in April, Six Days in Fallujah's fate has been up in the air. It probably doesn't help that rumors circulated yesterday about the studio's creative lead hitting the road for (presumably) greener pastures. We've reached out to Atomic for further information about those let who were let go and will update this post as we hear more.

Gallery: Six Days in Fallujah

JoystiqAtomic Games unable to secure funding for Six Days in Fallujah, reduces staff originally appeared on Joystiq on Thu, 06 Aug 2009 15:27:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>atomicatomic-gameseconomyfallujahfiringskonamilayoffsMicrosoftrecessionsix-days-in-fallujahXbox-360Thu, 06 Aug 2009 15:27:00 EST<![CDATA[Disney Interactive posts 20 percent losses in third quarter, citing bad economy]]>http://www.joystiq.com/2009/07/31/disney-interactive-posts-20-percent-losses-in-third-quarter-cit/http://www.joystiq.com/2009/07/31/disney-interactive-posts-20-percent-losses-in-third-quarter-cit/http://www.joystiq.com/2009/07/31/disney-interactive-posts-20-percent-losses-in-third-quarter-cit/#comments
Businesses don't adhere to the same rules we silly humans do; the cycle of the Earth around the sun, for instance. Disney Interactive Media Group is no exception, posting its quarter three financial results -- the quarter that ends in June, folks -- just this week. According to Gamasutra, revenue dropped by $29 million year over year, which company CEO Robert A. Iger said during a conference call was due to "adverse economic conditions."

Though Iger didn't specifically spell it out, we would imagine that investing in the development of multiple major titles in Split/Second and, um ... whatever it is that Warren Spector's working on at Junction Point isn't helping with the money intake either. The CEO is positive about the future, but remains worried about the current economy, saying, "We do see signs of economic stabilization, but the pace and strength of recovery remain uncertain and we are managing accordingly." We're guessing it's a bad time to ask for those free passes to Epcot?

JoystiqDisney Interactive posts 20 percent losses in third quarter, citing bad economy originally appeared on Joystiq on Fri, 31 Jul 2009 18:15:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>businessdisneydisney-interactiveeconomyepic-mickeygamasutrajunction-pointjunction-point-studiosrecessionrobert-igersplit-secondFri, 31 Jul 2009 18:15:00 EST<![CDATA[Gameloft still enjoying lofty sales despite continuing recession]]>http://www.joystiq.com/2009/07/29/gameloft-still-enjoying-lofty-sales-despite-continuing-recession/http://www.joystiq.com/2009/07/29/gameloft-still-enjoying-lofty-sales-despite-continuing-recession/http://www.joystiq.com/2009/07/29/gameloft-still-enjoying-lofty-sales-despite-continuing-recession/#commentsGameloft, which happily announced increased sales in Q1 of 2009 despite the fact that it was, you know, Q1 of 2009, after announcing increased sales in 2008, has released its results for the first half of 2009. Guess what?

"Gameloft achieved consolidated sales of EUR60.1 million for the first half of 2009," the statement reads, "up by 20% from the previous year." 95 percent of Gameloft's sales for this period came from mobile games, a business that grew thanks to the increasing popularity of the iPhone App Store. Clearly, releasing the same soccer and brick-breaking games on every platform ever is a business model that more publishers should be looking into.

JoystiqGameloft still enjoying lofty sales despite continuing recession originally appeared on Joystiq on Wed, 29 Jul 2009 07:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>gameloftmobileprofitsrecessionsalesWed, 29 Jul 2009 07:30:00 EST<![CDATA[Amazon stock drops citing 'an industry slowdown in video games and consoles']]>http://www.joystiq.com/2009/07/26/amazon-stock-drops-citing-an-industry-slowdown-in-video-games-a/http://www.joystiq.com/2009/07/26/amazon-stock-drops-citing-an-industry-slowdown-in-video-games-a/http://www.joystiq.com/2009/07/26/amazon-stock-drops-citing-an-industry-slowdown-in-video-games-a/#comments
The global economic recession is finally hitting home, folks. That's right -- the Internet. Major online retailer Amazon.com is citing, "video games and consoles" as one of the primary culprits causing the company's financial hardship. According to the Wall Street Journal, though the company posted 14% increased profit margins in its last financial quarter, sales of "media" in the US (books, movies, video games) have nearly stopped.

While we can't speak for the other two forms of "media," we'd like to point out to Amazon that, comparatively with spring of 2008, sales of video games in spring of 2009 have been predicted to decrease for some time now. It probably doesn't help that, you know, it's summer. Still, with the flood of great games coming out later this year, we're betting the lean times (in terms of video game sales, at least) won't last for long.

JoystiqAmazon stock drops citing 'an industry slowdown in video games and consoles' originally appeared on Joystiq on Sun, 26 Jul 2009 13:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>amazonamazon.combusinessdigital-distributioneconomyrecessionretailsaleswall-street-journalSun, 26 Jul 2009 13:30:00 EST<![CDATA[Two Midway studios facing possible closure in two weeks]]>http://www.joystiq.com/2009/06/16/two-midway-studios-facing-possible-closure-in-two-weeks/http://www.joystiq.com/2009/06/16/two-midway-studios-facing-possible-closure-in-two-weeks/http://www.joystiq.com/2009/06/16/two-midway-studios-facing-possible-closure-in-two-weeks/#comments
If you've got an extra few million bucks lying around, we can think of a couple of video game development studios that could really use it. According to a recent report from Guardian.uk, Midway's Newcastle and San Diego studios are facing closure if they can't find buyers by the end of June. For those whose extended WoW sessions have left them chronologically unaware, that's just two weeks from today.

The Guardian's article focuses on the Newcastle studio -- creators of the recently released Diesel-fest Wheelman -- which is trying to stave off death by finding investors for its unannounced open-world action game. We're far from financial experts, but perhaps keeping said project under wraps isn't the best way to attract suitors in such a brief timeframe. Just, you know, a suggestion.

[Via CVG]

JoystiqTwo Midway studios facing possible closure in two weeks originally appeared on Joystiq on Tue, 16 Jun 2009 15:10:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bankruptcyclosureeconomymidwaymidway-newcastlemidway-san-diegorecessionTue, 16 Jun 2009 15:10:00 EST<![CDATA[Empire's remaining stockpile to be sold off this week]]>http://www.joystiq.com/2009/06/09/empires-remaining-stockpile-to-be-sold-off-this-week/http://www.joystiq.com/2009/06/09/empires-remaining-stockpile-to-be-sold-off-this-week/http://www.joystiq.com/2009/06/09/empires-remaining-stockpile-to-be-sold-off-this-week/#comments Zoo Publishing may already own the rights to Empire Interactive's IP (having bought the fallen company's catalog last month), but it doesn't own any of the company's current physical stock. This means there's a warehouse somewhere in Birmingham, England filled with the defunct company's retail software (212,000 boxes, to be exact) just sitting idly, collecting dust. KPMG is looking to liquidate these former Empire assets, hoping to sell everything altogether for a 15% premium this week and finally let Empire fade into history.

Of course, only those with pockets lined with gold and don't mind swimming in multiple copies of Pipemania, could afford to take up the offer. As MCV sadly notes, none of the proceeds will go to the 40 ex-Empire staff who were laid off and unpaid for their final eight weeks at the company.

JoystiqEmpire's remaining stockpile to be sold off this week originally appeared on Joystiq on Tue, 09 Jun 2009 03:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>businessempire-interactivelay-offsrecessionukTue, 09 Jun 2009 03:00:00 EST<![CDATA[Ruffian Games expands team by 15, 'itching' to reveal first project]]>http://www.joystiq.com/2009/05/22/ruffian-games-expands-team-by-15-itching-to-reveal-first-proj/http://www.joystiq.com/2009/05/22/ruffian-games-expands-team-by-15-itching-to-reveal-first-proj/http://www.joystiq.com/2009/05/22/ruffian-games-expands-team-by-15-itching-to-reveal-first-proj/#comments While many other development studios are withering beneath the sweltering heat of the recession, it seems at least one studio is blossoming -- Ruffian Games, founded earlier this year by a number of former Fable II, Crackdown and GTA devs, recently announced that it had bolstered its staff with 15 new recruits.

This is great news for the unorthodoxly expanding studio (and for the recently employed developers), but we still don't know what Ruffian is working on. Apparently, this fact bothers them as much as it bothers us -- studio head Gaz Liddon said, "Now we're in full production, we're itching to share the fantastic work these guys have been producing," adding that he hoped said sharing "won't be too far away." We hope so too, as our attention span is pretty limited as far as -- Hey, a butterfly! Neat!

JoystiqRuffian Games expands team by 15, 'itching' to reveal first project originally appeared on Joystiq on Fri, 22 May 2009 14:45:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>ActioncrackdownCrackdown-2developmenthiringMicrosoftrecessionRiot-Act-2ruffianruffian-gamesSandboxstudioXbox-360Fri, 22 May 2009 14:45:00 EST<![CDATA[Sony cutting suppliers by half to save $5.3 billion]]>http://www.joystiq.com/2009/05/21/sony-cutting-suppliers-by-half-to-save-5-3-billion-dollars/http://www.joystiq.com/2009/05/21/sony-cutting-suppliers-by-half-to-save-5-3-billion-dollars/http://www.joystiq.com/2009/05/21/sony-cutting-suppliers-by-half-to-save-5-3-billion-dollars/#comments In a move undoubtedly aimed at preventing any further losses, Sony corp. plans to cut its manufacturing suppliers by more than half. MCVUK reports the company will be whittling down its 2,500-strong suppliers list to just 1,200 by or before 2011. The restructuring will cut costs by around ¥500 billion ($5.3 billion).

While this is a big change for the company as a whole, it's uncertain how Sony's Computer Entertainment division will be affected. In what ways could this whole business of slimming down impact SCEA, or the PS3 for that matter?

JoystiqSony cutting suppliers by half to save $5.3 billion originally appeared on Joystiq on Thu, 21 May 2009 20:15:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>businessrecessionsceasonyThu, 21 May 2009 20:15:00 EST<![CDATA[Used game sales balloon GameStop Q1 2009 numbers]]>http://www.joystiq.com/2009/05/21/used-game-sales-balloon-gamestop-q1-2009-numbers/http://www.joystiq.com/2009/05/21/used-game-sales-balloon-gamestop-q1-2009-numbers/http://www.joystiq.com/2009/05/21/used-game-sales-balloon-gamestop-q1-2009-numbers/#comments
Now here's a real economic indicator: during the fiscal quarter ending May 2 of this year, used game sales at GameStop increased by 31.9 percent, while new game sales decreased by 2.8 percent. Game sales in the US aren't declining, new game sales are -- to the tune of 548.5 million dollars in Q1 2009 alone, just over a quarter of GameStop's entire earnings during the period.

Sure, the Nintendo DSi release and a handful of blockbuster titles from Capcom earlier this year helped to keep new games and hardware from dropping off too much -- new hardware numbers actually increased from last year. But that isn't to say that the 114 new stores opened by the company recently due to "the downward pressure of rents" is a good idea. While GameStop predicts even better sales over the next half of the year, it'd be wise to carefully plan around the "brittle global economy."

[Image credit]

JoystiqUsed game sales balloon GameStop Q1 2009 numbers originally appeared on Joystiq on Thu, 21 May 2009 14:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>businesseconomic-indicatoreconomygamestopnintendo-dsirecessionThu, 21 May 2009 14:30:00 EST<![CDATA[Brain drain hurting UK's game development industry, government to rethink subsidies]]>http://www.joystiq.com/2009/05/19/brain-drain-hurting-uks-game-development-industry-government-t/http://www.joystiq.com/2009/05/19/brain-drain-hurting-uks-game-development-industry-government-t/http://www.joystiq.com/2009/05/19/brain-drain-hurting-uks-game-development-industry-government-t/#comments
[Image credit: ZDNet]
The UK is not only looking to remedy its ailing game development scene by rallying against outsourcing, but is also in need of finding a better solution to the bigger, and arguably more pressing, issue of brain drain. Professionals in the British game industry are leaving their native land for places like Canada and France, where game developers receive tax breaks and other incentives not offered in the UK. Tax breaks are among the most sought after subsidies for British devs, and if they're not getting it, they're obviously going to have to look elsewhere. And, look elsewhere they have -- on record, there are at least 30,000 British expats in BC, Canada alone.

The Guardian reports that communications minister, Lord Stephen Carter, is currently weighing out the best options of support to combat shrinkage, though it's not certain if and when these incentives will come into effect. The British developer landscape has become quite barren; dev studios and projects have been axed in recent times, while others have been sold to foreign companies. Of course, consumers in Britain are unaware of the state its development industry is in; they're too busy buying the latest fitness thingamabobs from Japan.

JoystiqBrain drain hurting UK's game development industry, government to rethink subsidies originally appeared on Joystiq on Tue, 19 May 2009 04:01:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>britaindevelopersdevelopmentindustryrecessionukTue, 19 May 2009 04:01:00 EST<![CDATA[Time editorial (sort of) explains why video games are a good economic indicator]]>http://www.joystiq.com/2009/05/15/time-editorial-sort-of-explains-why-video-games-are-a-good-eco/http://www.joystiq.com/2009/05/15/time-editorial-sort-of-explains-why-video-games-are-a-good-eco/http://www.joystiq.com/2009/05/15/time-editorial-sort-of-explains-why-video-games-are-a-good-eco/#commentsTime Magazine thinks that video games are a good economic indicator -- as in, if the gaming industry is doing poorly (it's not), that speaks volumes about the national economic situation. And Time's reasoning is sound, more or less: "When people cannot spend $300 on a console or $50 on a game which can be used for hours and played over and over again, the money for discretionary spending has dried up."

The piece references declines in sales of the Nintendo Wii (selling "only" 340k units in April) as well as the recent loss report by Sony on its PlayStation division. Problem is, it makes no mention whatsoever of the repeated analyst reports citing year-over-year declines being forced by AAA-games being released in the traditionally dormant late-Winter/early-Spring months, during 2008. And furthermore, the author worries about the sales of the PS3 in April, not making any mention of the relatively robust PS2 and PSP sales during the same time period.

Then again, the Time website has Jim Cramer divvying out economic tips just three inches to the right of this piece, so, ya know, there's that trustworthy source of financial information.

JoystiqTime editorial (sort of) explains why video games are a good economic indicator originally appeared on Joystiq on Fri, 15 May 2009 21:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>businesseconomyjim-cramernpdrecessiontime-magazineFri, 15 May 2009 21:00:00 EST<![CDATA[Factor 5 shuts down US operations]]>http://www.joystiq.com/2009/05/14/factor-5-shuts-down-us-operations/http://www.joystiq.com/2009/05/14/factor-5-shuts-down-us-operations/http://www.joystiq.com/2009/05/14/factor-5-shuts-down-us-operations/#comments
Factor 5 officially announced the closure of its US operations recently, concluding a story that feels like it's been just out of reach for half a year. The developer had been having some rough times since the poignant failure of Lair. Following that, there was its falling out with Brash Entertainment (which led to layoffs), leaks of the Superman and Kid Icarus games, and, obviously, the closure of the studio.

The bright side on this really dark tale is that Achim Moller, CEO of Factor 5 Germany, states the company has "partnered with both old and new friends in the industry who will reveal our upcoming projects over the next months." With E3 visible in the smog-filled distance, perhaps we'll learn what the German-based developer is up to soon.

[Via Kotaku, Siliconera]

JoystiqFactor 5 shuts down US operations originally appeared on Joystiq on Thu, 14 May 2009 13:15:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>businessclosuredepressioneconomyfactor-5kid-icaruslairlayoffsrecessionsupermanThu, 14 May 2009 13:15:00 EST<![CDATA[Analyst calculates layoff totals, the belief in a 'Gaming Renaissance Movement']]>http://www.joystiq.com/2009/05/12/analyst-calculates-layoff-totals-the-belief-in-a-gaming-renais/http://www.joystiq.com/2009/05/12/analyst-calculates-layoff-totals-the-belief-in-a-gaming-renais/http://www.joystiq.com/2009/05/12/analyst-calculates-layoff-totals-the-belief-in-a-gaming-renais/#comments
M2 Research market analyst Wanda Meloni estimates that 8,450 game industry employees have been let go since July 2008. North America had approximately 6,300 layoffs (75 percent), which represents 12 percent of the region's workforce -- her piece was published on Gamasutra last Friday, so it likely doesn't take into account the Massive and 3D Realms hits.

Meloni's "glass half full" view of the layoffs is that these folks will start small development studios and form part of what she's calling the "Gaming Renaissance Movement." She feels that these start-ups -- many self-funded through severance packages -- have the "creativity, vision and sheer grit" (not to mention: no other choice) to do their best to make it.

The majority of Meloni's post goes into detail about what tools, funding and partners these start-ups have at their disposal. As for us, we're just looking to give the "layoffs" tag a rest.

[Via Edge]
[Image]

JoystiqAnalyst calculates layoff totals, the belief in a 'Gaming Renaissance Movement' originally appeared on Joystiq on Tue, 12 May 2009 08:45:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>businessdepressioneconomylayofflayoffsm2-researchrecessionwanda-meloniTue, 12 May 2009 08:45:00 EST<![CDATA[Disney Interactive revenue down citing lack of console games]]>http://www.joystiq.com/2009/05/07/disney-interactive-revenue-down-citing-lack-of-console-games/http://www.joystiq.com/2009/05/07/disney-interactive-revenue-down-citing-lack-of-console-games/http://www.joystiq.com/2009/05/07/disney-interactive-revenue-down-citing-lack-of-console-games/#comments
Disney Interactive has been having a pretty rough year. The company kicked off 2009 with a handful of layoffs, and now, according to reports at Gamasutra, it's also facing a near 20 percent drop in year-over-year revenue. Big surprise? Not exactly, considering the publisher only internally published a handful of games last year (including critically acclaimed Pure and not so critically acclaimed Turok).

Also not a big surprise, Disney Interactive prez and CEO Bob Iger cites "the weak economy and other factors" when explaining his company's less than fantastic financial situation. Let's just hope Warren Spector's "epic" Mickey Mouse game can help to bolster Disney's 2009 lineup.

JoystiqDisney Interactive revenue down citing lack of console games originally appeared on Joystiq on Thu, 07 May 2009 15:15:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>businessdisneydisney-interactiveeconomygamasutrapurerecessionturokwarren-spectorThu, 07 May 2009 15:15:00 EST<![CDATA[Microsoft lays off 28 percent of Massive]]>http://www.joystiq.com/2009/05/06/microsoft-lays-off-28-percent-of-massive/http://www.joystiq.com/2009/05/06/microsoft-lays-off-28-percent-of-massive/http://www.joystiq.com/2009/05/06/microsoft-lays-off-28-percent-of-massive/#comments
It seems as though the reports coming in this morning regarding Microsoft layoffs at its in-game advertising department, Massive, were more than a tad overstated. A Microsoft spokesperson, as well as Cassandra Nuttall, head of marketing at Massive, confirmed to us this afternoon that, "In total, the Massive business unit will see a headcount reduction of 28 percent."

Earlier today we reported that a variety of outlets, relying on "anonymous sources," were told that the layoffs at Massive were as high as 75 percent. "While yesterday's job eliminations included full-time employees who work for Massive," the spokesperson told us, "the reports of a 75 percent workforce reduction are inaccurate." Citing the "global economic downturn" for the staff cuts, Ms. Nuttall also insures us that the company "foresee[s] no disruption whatsoever [in its] current relationships with global, blue chip brands and leading game publishers." To those of you laid off, we wish you the best in the coming months.

JoystiqMicrosoft lays off 28 percent of Massive originally appeared on Joystiq on Wed, 06 May 2009 19:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>businesscassandra-nuttalleconomylayoffsmassivemicrosoftrecessionWed, 06 May 2009 19:00:00 EST<![CDATA[Canadian video game sales dip for first time since 2002 ]]>http://www.joystiq.com/2009/05/05/canadian-video-game-sales-dip-for-first-time-since-2002/http://www.joystiq.com/2009/05/05/canadian-video-game-sales-dip-for-first-time-since-2002/http://www.joystiq.com/2009/05/05/canadian-video-game-sales-dip-for-first-time-since-2002/#comments According to number crunchers at NPD, game industry sales have given Canadian retail outlets the cold shoulder so far in 2009. Much like the region's warmer cousin to the south, sales have slowed through the first quarter, with NPD reporting an 8.5 percent decline in overall sales compared to the same period last year. Interestingly, it isn't games that shoulder the biggest burden of this hit, but hardware, with sales of portables plummeting a dramatic 21 percent during the period. Console sales fared little better, dropping 14.5 percent in sales year-over-year.

The dip represents a first for the market since NPD began tracking Canadian sales in 2002. The group points to an overall lack of "blockbuster titles" so far compared to 2008 as a driving reason for the ongoing slump, with the same period in 2007 buffeted on sales of games like Guitar Hero III and Super Smash Bros. Brawl. As games like Resident Evil 5 and Halo Wars are not enough to get more Canadians checking out new platforms, clearly the time is right for a new hockey or moose hunting game to ski in and save the day.

JoystiqCanadian video game sales dip for first time since 2002 originally appeared on Joystiq on Tue, 05 May 2009 01:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>canadaeconomyguitar-hero-iiinpdrecessionsalesssbbTue, 05 May 2009 01:00:00 EST<![CDATA[Empire Interactive might go bust]]>http://www.joystiq.com/2009/04/27/empire-interactive-might-go-bust/http://www.joystiq.com/2009/04/27/empire-interactive-might-go-bust/http://www.joystiq.com/2009/04/27/empire-interactive-might-go-bust/#comments

Empire Interactive (Pipemania, FlatOut) is the next game company to be hit hard by the global recession. MCVUK reports the British developer has fallen into administration and its entire staff is expected to be laid-off. Sources tell Joystiq that Empire is in financial trouble because suppliers and retailers have not made appropriate payments to EI. Our sources also tell us that talks of a buyout to purchase EI have been going on since GDC in March; however, with a month gone by and still no buyer, the situation is looking rather grim.

Meanwhile, Empire's parent company in the US, Silverstar Holdings, denies that EI will be laying off its entire staff due to its financial woes but admits there will be losses. In fact, some employees back in the UK have already been given the pink slip. In any case, this probably means that Empire's summer line-up of Animal Paradise Wild and You Can Draw won't be out on schedule -- if they make it out at all.

Source: MCVUK
Source: MCVUK
Source: Gamasutra

JoystiqEmpire Interactive might go bust originally appeared on Joystiq on Mon, 27 Apr 2009 21:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>businessempireempire-interactiverecessionMon, 27 Apr 2009 21:30:00 EST<![CDATA[BioShock movie gets budget cut, 'in a holding pattern']]>http://www.joystiq.com/2009/04/25/bioshock-movie-gets-budget-cut-in-a-holding-pattern/http://www.joystiq.com/2009/04/25/bioshock-movie-gets-budget-cut-in-a-holding-pattern/http://www.joystiq.com/2009/04/25/bioshock-movie-gets-budget-cut-in-a-holding-pattern/#comments The bad economy just won't stop showing up in our news posts these days. First we get predictions of months of down sales, and now we get news that the Gore Verbinski directed BioShock film adaptation is stuck "in a holding pattern." Variety is reporting that Verbinski and production company Universal are looking at possibly moving the currently in pre-production film to outside the US to "take advantage of a tax credit," allegedly looking at moving production to London from its current Los Angeles locale.

Additionally, according to Variety's sources, some of the pre-production staff has been let go while the budget restructuring takes place. The studio (and Verbinski himself) have vowed to not allow the BioShock movie to succumb to the same fate as the perpetually on-again, off-again Halo film. As BioShock is one of the few games we could actually see making a really interesting film, we're hoping they're not just pulling our chain.

[Thanks, Aaron!]

JoystiqBioShock movie gets budget cut, 'in a holding pattern' originally appeared on Joystiq on Sat, 25 Apr 2009 13:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>big-daddybioshockBioShock-movieeconomygore-verbinskimoviesrecessionuniversalvarietySat, 25 Apr 2009 13:00:00 EST<![CDATA[Game investor consultant says budgets are tightening for VCs]]>http://www.joystiq.com/2009/04/25/game-investor-consultant-says-budgets-are-tightening-for-vcs/http://www.joystiq.com/2009/04/25/game-investor-consultant-says-budgets-are-tightening-for-vcs/http://www.joystiq.com/2009/04/25/game-investor-consultant-says-budgets-are-tightening-for-vcs/#commentsWe here at Joystiq have a long history of making unsubstantiated claims about games we're absolutely, 100 percent, without a doubt not making. Unfortunately though, it seems that Joystiq Publishing[TM] is going to have to close its doors, as Develop's Nick Gibson tells us that fewer and fewer venture capitalists are shelling out dough on fledgling developers these days. More specifically, he says, "in the last four or five months there has been a collapse in venture capital," meaning less money is out there for small developers and publishers -- not to mention new development companies.

The problem with this, he argues, is that innovation will be stifled (or at very least slowed) as funding drops out for potentially "risky" games. "There will be considerably fewer start-ups able to pick up the innovation baton and continue to evolve the market," he says. We're hoping that the lack of money forces big publishers to reconsider wasteful spending and instead focus on making the best possible games they can with the resources alotted. We're also hoping for unicorns to land on the moon and find the sattelite's creamy center actually full of an unlimited energy source. So there's that!

JoystiqGame investor consultant says budgets are tightening for VCs originally appeared on Joystiq on Sat, 25 Apr 2009 01:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>businessdevelopdevelopmenteconomynick-gibsonrecessionventure-capitalSat, 25 Apr 2009 01:00:00 EST<![CDATA[Analysts: US game sales slump to continue until second half of '09]]>http://www.joystiq.com/2009/04/21/analysts-us-game-sales-slump-to-continue-until-second-half-of-09/http://www.joystiq.com/2009/04/21/analysts-us-game-sales-slump-to-continue-until-second-half-of-09/http://www.joystiq.com/2009/04/21/analysts-us-game-sales-slump-to-continue-until-second-half-of-09/#comments
The go-to game industry analysts see the downward sales in March as a trend that could continue over the next several months. Wedbush Morgan's Michael Pachter notes that hardware sales were down 19 percent year-over-year and he doesn't see a reversal of software sales in the "near term." Lazard Capital's Colin Sebastian is concerned that the industry continues to see sales "concentrated among a small group of top-tier software publishers and first-party platform holders." He believes this leaves little room for ... well, anyone else in the near future.

Both gurus see the second half of the year working out better for the industry. Edge notes that US industry sales have hit $4.25 billion during the first quarter, the same place they were during 2008's record-breaking year.
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JoystiqAnalysts: US game sales slump to continue until second half of '09 originally appeared on Joystiq on Tue, 21 Apr 2009 19:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>analystanalystscolin-sebastianeconomymichael-pachternpdrecessionTue, 21 Apr 2009 19:30:00 EST<![CDATA[Realtime Worlds offers workers 'generous' benefits]]>http://www.joystiq.com/2009/04/07/realtime-worlds-offers-workers-generous-benefits/http://www.joystiq.com/2009/04/07/realtime-worlds-offers-workers-generous-benefits/http://www.joystiq.com/2009/04/07/realtime-worlds-offers-workers-generous-benefits/#comments
The video game industry has the dubious reputation for working its talent to the bone, and in this economy many have been rewarded for their hard work with a pat on the back and a swift kick to the curb. Now Crackdown developer Realtime Worlds says that while it can't promise its employees won't work ridiculous hours, it offers workers "one of the most generous benefits packages" in the industry.

Realtime Worlds notes that it currently has over 40 positions open, jobs that will likely be filled in part by the pile of resumes the company collected during GDC. It's reassuring to see any company step up for its workers, and while devs grind their fingers down for hours on end, with paid (paid!) overtime and medical insurance at least they'll have something more to show for it than a pink slip and bloody stumps where their fingers used to be.

JoystiqRealtime Worlds offers workers 'generous' benefits originally appeared on Joystiq on Tue, 07 Apr 2009 09:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>economyhiringovertimerealtime-worldsrecessionTue, 07 Apr 2009 09:00:00 EST<![CDATA[Analysts: Gaming on the rise during recession, but gamers choosing more carefully]]>http://www.joystiq.com/2009/04/02/analysts-gaming-on-the-rise-during-recession-but-gamers-choosi/http://www.joystiq.com/2009/04/02/analysts-gaming-on-the-rise-during-recession-but-gamers-choosi/http://www.joystiq.com/2009/04/02/analysts-gaming-on-the-rise-during-recession-but-gamers-choosi/#comments On the heels of high February sales numbers, Reuters is reporting that the game industry is actually thriving during the economic recession (so long as you don't work for the game industry, anyway). The article notes that the games market has expanded, largely thanks to the Nintendo Wii, which has brought an influx of female gamers. Reuters states -- as have others -- that many consumers are turning to home entertainment in the current economic environment. Analysts expect the industry to continue growing, with IDC's Billy Pidgeon expecting double digit growth in 2009, though he adds that gamers "will consider purchases more carefully" given the recession.

Analysts expect the recession to have other effects on the game industry as well. Interpret's Michael Cai expects used games and budget titles to take up a more significant share of sales this year. Wedbush Morgan analyst Michael Pachter, unsurprisingly, expects hardware manufacturers to cut the price of their consoles. We're assuming he wasn't referring to the PS2.

[Original image: tachyondecay]

JoystiqAnalysts: Gaming on the rise during recession, but gamers choosing more carefully originally appeared on Joystiq on Thu, 02 Apr 2009 21:50:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>businesseconomyrecessionThu, 02 Apr 2009 21:50:00 EST<![CDATA[Industry professionals having trouble finding work]]>http://www.joystiq.com/2009/04/01/industry-professionals-having-trouble-finding-work/http://www.joystiq.com/2009/04/01/industry-professionals-having-trouble-finding-work/http://www.joystiq.com/2009/04/01/industry-professionals-having-trouble-finding-work/#comments
Things are tough all over, and after months of industry cutbacks and studio closures, a number of video game professionals have been left holding the bag in one hand and a pink slip in the other. While last week's Game Developers Conference gave many jobless developers the opportunity to hand out resumes, a new report from the LA Times writes that many are still having a difficult time finding work.

One issue is that with so many industry professionals pounding the streets, studios have their pick of talent. According to the Times, Ray Miller, an exec at Crackdown dev Realtime Words, collected a shopping bag full of resumes from job seekers at GDC, commenting, "We've been so busy talking to people that we haven't even touched our lunches." Still, as ECA blog GameCulture points out, all is not doom and gloom for those still on the outside, and with game sales in the US showing a steady increase so far in 2009 there is reason to hope that the recently unemployed will be able to find work soon. Then again, they could just start up their own company instead. That's working out alright for some of the downturn's victims so far.

[Via GameCulture]
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JoystiqIndustry professionals having trouble finding work originally appeared on Joystiq on Wed, 01 Apr 2009 08:05:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>crackdownecaeconomygdc-2009layoffsrealtime-worldsrecessionWed, 01 Apr 2009 08:05:00 EST<![CDATA[DSi surpasses 2 million sales mark in Japan]]>http://www.joystiq.com/2009/03/24/dsi-surpasses-2-million-sales-mark-in-japan/http://www.joystiq.com/2009/03/24/dsi-surpasses-2-million-sales-mark-in-japan/http://www.joystiq.com/2009/03/24/dsi-surpasses-2-million-sales-mark-in-japan/#comments
It's been roughly five months since the Nintendo DSi launch in Japan (144 days, actually) and the updated handheld has been selling like gangbusters. Famitsu (via VG247) is reporting the landmark number of 2 million units, a figure that amounts to roughly 14,000 units being sold per day in the country since its launch.

To put that in some perspective, the DSi has been outselling the now totally boring DS Lite at roughly 7:1 on a daily basis in the country since its launch last November. 100k every week in Japan -- on average, no less! Our hats are off to you Nintendo, patiently awaiting some soup. You see there's this recession thing you might've heard of. We're not doing so hot ...

[Via VG247]

JoystiqDSi surpasses 2 million sales mark in Japan originally appeared on Joystiq on Tue, 24 Mar 2009 11:03:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>DSdsieconomyfamitsuNintendonintendo-dsirecessionvg247xbox-360Tue, 24 Mar 2009 11:03:00 EST<![CDATA[GameStop doesn't see recession's impact on gamers]]>http://www.joystiq.com/2009/03/21/gamestop-doesnt-see-recessions-impact-on-gamers/http://www.joystiq.com/2009/03/21/gamestop-doesnt-see-recessions-impact-on-gamers/http://www.joystiq.com/2009/03/21/gamestop-doesnt-see-recessions-impact-on-gamers/#comments
GameStop's senior vice president of merchandising, Bob McKenzie, doesn't think the recession has had much impact on gamers. Speaking with Venture Beat during the Resident Evil 5 launch event in San Fransisco, McKenzie said people are staying in more often (presumably awaiting further financial ruin) and turn to video games and other entertainment to pass the time.

But has GameStop seen a spike in the lucrative -- yet controversial -- used game market since the recession? McKenzie wouldn't say "yes," but quickly pointed out that gamers today are even more aware about "tightening their wallets." Even though traffic at retail has slowed, McKenzie reiterrated that GameStop continues to post solid numbers -- recently reporting a 24 percent increase in year-over-year sales to $8.8 billion.

Unfortunately, the rest of the industry isn't fairing as well. Perhaps video game publishers should get into the used game market. As long as they vow to keep all of the profit for themselves they should be able to dig themselves out of this whole "economic apocalypse" thing.

JoystiqGameStop doesn't see recession's impact on gamers originally appeared on Joystiq on Sat, 21 Mar 2009 01:10:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bob-mckenziebusinessgamestoprecessionused-gamesSat, 21 Mar 2009 01:10:00 EST<![CDATA[Pachter: February NPD impact 'limited,' industry 'highly recession-resistant']]>http://www.joystiq.com/2009/03/20/pachter-february-npd-impact-limited-industry-highly-recessi/http://www.joystiq.com/2009/03/20/pachter-february-npd-impact-limited-industry-highly-recessi/http://www.joystiq.com/2009/03/20/pachter-february-npd-impact-limited-industry-highly-recessi/#comments
Oh Michael Pachter, you're just like my mother, she's never satisfied. Wedbush Morgan's resident palm reader feels that despite the industry's pocketing of nearly $734 million last month, he expects "limited market reaction" to February's seemingly triumphant sales data. Pachter calls the sales growth "quite respectable" overall, but finds little to celebrate with giants like Electronic Arts and THQ suffering a financial beating at the cash register.

Looking for the silver lining, the analyst told investors in a note that "concerns about the economy are likely to limit share price appreciation," but that steady hardware sales demonstrate strong game sales "well into 2009." Interestingly, Pachter also called the software industry "highly recession-resistant," though we imagine some on the unemployment line might have something to say about that.

JoystiqPachter: February NPD impact 'limited,' industry 'highly recession-resistant' originally appeared on Joystiq on Fri, 20 Mar 2009 09:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>analysteconomymichael-pachterrecessionFri, 20 Mar 2009 09:30:00 EST<![CDATA[Kotick: more original Wii titles coming, consoles still aren't cheap enough]]>http://www.joystiq.com/2009/03/10/kotick-more-original-wii-titles-coming-consoles-still-arent-c/http://www.joystiq.com/2009/03/10/kotick-more-original-wii-titles-coming-consoles-still-arent-c/http://www.joystiq.com/2009/03/10/kotick-more-original-wii-titles-coming-consoles-still-arent-c/#commentsIn a Reuters interview, Activision CEO Robert Kotick talked about the state of the video game business in the current economic situation. "There's probably more opportunity for our industry than just about any other industry I can think of other than maybe bankruptcy lawyers," an apparently unworried Kotick said. The company plans share buybacks and some acquisitions, though nothing on the scale of the Activision-Vivendi merger.

The executive showed confidence in the growth of gaming during this time, noting, however, that it would grow more if consoles achieved even lower, prices. "The price on platforms today has still not gotten down to mass-market price points," Kotick said, "and I think when you're in the economic circumstances that the world has found itself in, there really is a difference between a $199 game system and a $299 game system."

Kotick then expressed an interest in improving Activision's performance on the Wii -- otherwise known as the console that most of the mass market owns. "In the past we approached the Wii as an extension of what we were doing on PlayStation and the Xbox and I think we can do a better job of creating original content for the Wii, and I think you'll see more of that this year." Does that mean original content like a Call of Duty, or like Big League Sports?

[Via IGN]

JoystiqKotick: more original Wii titles coming, consoles still aren't cheap enough originally appeared on Joystiq on Tue, 10 Mar 2009 09:39:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>activisionbobby-kotickindustryrecessionTue, 10 Mar 2009 09:39:00 EST<![CDATA[More gamers turning to pawn shops due to recession ]]>http://www.joystiq.com/2009/02/23/more-gamers-turning-to-pawn-shops-due-to-recession/http://www.joystiq.com/2009/02/23/more-gamers-turning-to-pawn-shops-due-to-recession/http://www.joystiq.com/2009/02/23/more-gamers-turning-to-pawn-shops-due-to-recession/#commentsFiled under:


Most gamers who've possessed a longtime penchant for frugality know the pawn shop business model quite well thanks to a certain pre-owned retail juggernaut -- however, due to the aforementioned retailer, we've traditionally rarely taken our business to actual pawn shops. According to a recent Chicago Tribune article, this trend may be reversing -- the article points out that national pawn shop chains had a highly profitable year in 2008 (thanks to the ailing economy), and that most are seeing an increase in hocked electronics; namely, TVs and "expensive game systems."

Sure, it may sound like a depressing trend for gamers to resign themselves to, but really, it's more disastrous news for GameStop. When gamers collectively realize that pawn shops not only offer video games, but also pre-owned Glocks and rings with which to "make that gal an honest woman," they're probably never going to cross the threshold of a GameStop ever again.

[Via GamePolitics]

JoystiqMore gamers turning to pawn shops due to recession originally appeared on Joystiq on Mon, 23 Feb 2009 22:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>economygamestoppawn-shopsrecessionused-gamesMon, 23 Feb 2009 22:00:00 EST<![CDATA[DICE 2009: Riccitiello addresses recession, a 'blessing' for gaming industry]]>http://www.joystiq.com/2009/02/19/dice-2009-riccitiello-addresses-recession-a-blessing-for-gam/http://www.joystiq.com/2009/02/19/dice-2009-riccitiello-addresses-recession-a-blessing-for-gam/http://www.joystiq.com/2009/02/19/dice-2009-riccitiello-addresses-recession-a-blessing-for-gam/#commentsFiled under:


Electronic Arts CEO John Riccitiello knows a thing or two about money -- and considering the recent, brutal round of layoffs that the company had to undergo, he probably knows a thing or two about the current economy's sad state of affairs as well. Loading up a tongue-in-cheek screenshot depicting a gruesome wreck in Burnout Paradise, the EA commander-in-chief addressed the recession's effects on the gaming industry, as well as his company's strategy for staying afloat, during his speech at the 2009 DICE Summit in Las Vegas.

Said strategy is unbelievably simple -- Riccitiello summed up the EA survival plan which will result in over 1,000 positions within the company being jettisoned by April in three easy to remember steps: "Start by deciding what's important. Invest heavily in those programs. And cut the rest." This likely adds insult to injury to the nine (apparently unimportant) studios and publishing locations which were recently "cut" by the company, but it sounds like this relentless pruning is in the best interest of the EA mothership.

However, according to Riccitiello, gaming enthusiasts shouldn't be completely disheartened by the recent outbreaks of industry downsizing. He hypothesizes that the "riffraff" that tarnishes the gaming universe will die out, allowing for the market to become more accomodating for the visionaries and luminaries who want to move the medium forward. We certainly hope Riccitiello's dream of a "survival of the fittest" gaming utopia is realized -- we just hope we're all not eating shoelaces and apple cores by the time it gets here.

JoystiqDICE 2009: Riccitiello addresses recession, a 'blessing' for gaming industry originally appeared on Joystiq on Thu, 19 Feb 2009 21:15:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>dice-2009dice-summiteaeconomyElectronic-Artsjohn-riccitiellolayoffsrecessionThu, 19 Feb 2009 21:15:00 EST<![CDATA[MSNBC asks analysts if $60 is too steep for games]]>http://www.joystiq.com/2009/02/06/msnbc-asks-analysts-if-60-is-too-steep-for-games/http://www.joystiq.com/2009/02/06/msnbc-asks-analysts-if-60-is-too-steep-for-games/http://www.joystiq.com/2009/02/06/msnbc-asks-analysts-if-60-is-too-steep-for-games/#comments
MSNBC asked several analysts -- but not a single consumer -- if game prices could retain the standard $60 next-gen price point in this worsening economy. So far, despite layoffs across the industry, game sales are up around the globe -- well, mostly. A survey by Frank Magid Associates last spring noted that only 17% of respondents would pay full price for a game at that time, so MSNBC wonders what consumers are thinking now.

Signal Hill analyst Todd Greenwald reiterates his concerns about the $60 price point in the piece and analyst Colin Sebastian states he can already see price cuts accelerating on "second tier and older games." Greenwald expresses that publisher financials depend on that $60 price point -- without it, he believes, we'll see "poor quarterly earnings, layoffs and studio closures." But, wait, isn't that stuff already here?

[Image]

JoystiqMSNBC asks analysts if $60 is too steep for games originally appeared on Joystiq on Fri, 06 Feb 2009 15:46:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>economicseconomyprice-cutpricingrecessionFri, 06 Feb 2009 15:46:00 EST<![CDATA[Analyst: Publishers potentially slashing $60 pricing]]>http://www.joystiq.com/2009/02/03/analyst-publishers-potentially-slashing-60-pricing/http://www.joystiq.com/2009/02/03/analyst-publishers-potentially-slashing-60-pricing/http://www.joystiq.com/2009/02/03/analyst-publishers-potentially-slashing-60-pricing/#commentsIn this day and age of economic downturn, people are holding on to their hard-earned greenbacks. For some, the $60 price tag on new gaming software is a bit too rich for their blood and - as if sensing their trepidation - Signal Hill analyst Todd Greenwald says it might be on its way out. Greenwald points to this trend using retail and publisher-supported price reductions during the past holiday season (Mirror's Edge, Madden NFL 2009) as examples of what could become stationary in 2009.

Consumers might be smugly smiling at the possibility of future software price cuts; however, such a move to counteract slowing sales would only be a brief riposte. In the long run, it would cut the industry deeply and would be "devastating for margins." That means more of this and less of that. In the end, it's a double-edged sword for both the industry and consumer alike.

JoystiqAnalyst: Publishers potentially slashing $60 pricing originally appeared on Joystiq on Tue, 03 Feb 2009 20:35:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>economyindustryprice-cutrecessionsignal-hilltodd-greenwaldTue, 03 Feb 2009 20:35:00 EST<![CDATA[Casual game companies confident about their chances in the recession]]>http://www.joystiq.com/2009/01/30/casual-game-companies-confident-about-their-chances-in-the-reces/http://www.joystiq.com/2009/01/30/casual-game-companies-confident-about-their-chances-in-the-reces/http://www.joystiq.com/2009/01/30/casual-game-companies-confident-about-their-chances-in-the-reces/#commentsFiled under: ,


Casualgaming.biz asked a who's who of casual games about how they felt the business would get by during the current financial horribleness. As it turns out, the polled companies expect to either weather the crisis or even benefit from it.

A representative for PopCap said "When economic times are tough, the most broadly appealing, cost-effective forms of entertainment tend to not only survive - but thrive." This sentiment was echoed by the CEO of Oberon Media. Nickelodeon's Dave Williams, however, sees problems for companies who "need access to outside capital and high valuations to fund growth and investment and/or haven't reached profitability and need cash to fund existing operations." In other words, companies who rely on others' money to make their games.

Not that we're Industry Analysts, but we fully expect the casual games industry to do well during this recession. It's pretty simple: these companies make video games -- often very enjoyable ones -- that do not cost sixty dollars.

JoystiqCasual game companies confident about their chances in the recession originally appeared on Joystiq on Fri, 30 Jan 2009 04:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>casual-gamesnickelodeonoberon-mediapopcappopcap-gamesrecessionFri, 30 Jan 2009 04:30:00 EST<![CDATA[NPD says games already in recession]]>http://www.joystiq.com/2009/01/15/npd-says-games-already-in-recession/http://www.joystiq.com/2009/01/15/npd-says-games-already-in-recession/http://www.joystiq.com/2009/01/15/npd-says-games-already-in-recession/#commentsFiled under:


We're not sure who exactly said video games were "recession-proof," but, as you've probably already guessed, they were sorely mistaken. NPD senior account manager Michael Klotz detailed the incorrectitude at the Game Business Law summit, saying that the industry was already feeling the effects of the economic slowdown.

The games industry is still growing, but that growth slowed considerably towards the end of 2008, with 9% growth in August, 12% in October and 8% in November. Most embarrassing was September, which actually saw a 7% decline. And with that, we've just passed 80 words, which is the maximum amount of time we're able to focus on economics without blacking out. Thanks for hanging in there.

JoystiqNPD says games already in recession originally appeared on Joystiq on Thu, 15 Jan 2009 13:22:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>npdrecessionThu, 15 Jan 2009 13:22:00 EST<![CDATA[Nintendo, Capcom smell success despite stinky economy]]>http://www.joystiq.com/2009/01/14/nintendo-capcom-smell-success-despite-stinky-economy/http://www.joystiq.com/2009/01/14/nintendo-capcom-smell-success-despite-stinky-economy/http://www.joystiq.com/2009/01/14/nintendo-capcom-smell-success-despite-stinky-economy/#commentsFiled under: , , , ,

Nintendo Korea boss Mineo Koda believes his company's success is dependent on its ability to release "fun" products, and not on the state of the economy. "Regardless of downturns, consumers pursue something fun," Koda told Asia News Network. Capcom's Michael Pattison wouldn't disagree, though he believes Q1 2009 will be fruitful for his company because of "core" gamers' support. "The industry isn't immune to what's happening in the economy," argues Pattison. "Core games are perhaps better placed than those targeting a more casual audience, as core gamers will obviously purchase more games than a casual gamer." Capcom is releasing two, core franchise sequels in Street Fighter IV and Resident Evil 5 this quarter.

Of course, Nintendo, which is thriving from "casual" purchases, appears exempt from Pattison's assessment and is very much in a league of its own. Or, rather, a league of exclusive "recession-proof" products, namely: chocolate, booze and cigarettes. It would seem, then, folks are in need of Wii Fit now more than ever.

Source - 'Nintendo is recession-proof' [Asia News Net; via GI.biz]
Source - Resident Evil 5 will be series' biggest seller, says Capcom [MCV]

[Image credit: freezelight]

JoystiqNintendo, Capcom smell success despite stinky economy originally appeared on Joystiq on Wed, 14 Jan 2009 14:28:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>capcomDSnintendoPS3recessionspamWiiXbox-360Wed, 14 Jan 2009 14:28:00 EST<![CDATA[EA cutting 10% of its work force]]>http://www.joystiq.com/2008/12/19/ea-cutting-10-of-its-work-force/http://www.joystiq.com/2008/12/19/ea-cutting-10-of-its-work-force/http://www.joystiq.com/2008/12/19/ea-cutting-10-of-its-work-force/#commentsFiled under:

Publisher EA has hit some tough times, as the company has detailed plans to restructure itself and release 10% of its workforce by March 31, 2009. That 10% comes down to about 1,000 jobs, so it's nothing small. And, part of that 10% includes EA Black Box, the developers behind Need for Speed, Skate, and its Wii port, Skate It.

Black Box aren't the only ones affected, however, as EA will be closing nine studios and publishing locations overall. The remainder of Canada-based Black Box will be merged with another EA Canada studio, based out of Burnaby, BC.


[Via Joystiq]

JoystiqEA cutting 10% of its work force originally appeared on Joystiq on Fri, 19 Dec 2008 17:12:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>black-boxbusinesseaelectronic-artrecessionsalessalesfiguresFri, 19 Dec 2008 17:12:00 EST<![CDATA[Reeves: no personnel or development cutbacks due to recession]]>http://www.joystiq.com/2008/12/16/reeves-no-personnel-or-development-cutbacks-due-to-recession/http://www.joystiq.com/2008/12/16/reeves-no-personnel-or-development-cutbacks-due-to-recession/http://www.joystiq.com/2008/12/16/reeves-no-personnel-or-development-cutbacks-due-to-recession/#commentsFiled under:

In an interview with Dutch economics program RTL Z, Sony Europe president David Reeves speaks about the economic crisis and how it relates to the video game industry in Europe. Reeves is quick to state that the industry is not recession proof, but that there is no visible slowdown. He postulates that consumers are putting the recession to the back of their minds over Christmas, or that they are choosing to stay at home more and, as a result, are spending money on home-based entertainments, such as video games.

Reeves also states that within Sony Computer Entertainment Europe there will be no personnel or development cutbacks. "We don't have many personnel to cut back. Half our personnel are in the development of the games. That's an investment. We're not scaling down at all." Good news for first party developers; it looks like their jobs (and the games they are developing) are relatively safe.

Reeves goes on to say that while the Christmas period is showing no visible evidence of the recession, he expects sales to dip once the new year begins. At which point promotions will be introduced on software, either via Sony or via retailers themselves. Will this spread to a hardware price cut sometime next year? Let's hope so. As far as future development goes, Reeves sees more in software than hardware. Not necessarily games, but also user interfaces, PlayStation Network enhancements, Home, etc. Check out the full interview for plenty more interesting views from the SCEE chairman.

[Thanks NewDust]

JoystiqReeves: no personnel or development cutbacks due to recession originally appeared on Joystiq on Tue, 16 Dec 2008 09:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>david-reeveseconomic-crisisinterviewrecessionTue, 16 Dec 2008 09:30:00 EST