Posts in category business
by Randy Nelson Aug 19th 2008 11:30PM
Filed under: PC, Sony PlayStation 3, Microsoft Xbox 360, First Person Shooters, Business
Speaking at the outset of this year's Leipzig Games Convention, Crytek boss Cevat Yerli revealed that the developer's graphical tour de force,
Crysis, cost an estimated $22 million to create. Yerli has previously lamented
the effect piracy has had on the title, but reiterated that it's still recouped the development costs, saying, "If it wasn't profitable I wouldn't be able to stand here."
Best known for their stunning visuals, Crytek's game engines are also guilty of bringing even the mightiest of gaming PCs to their knees. While the upcoming, heavily-optimized
Crysis: Warhead promises a significant performance increase even on mid-range systems, Crytek is already cooking up its next GPU melter, which Yerli says should be ready by 2012. That's when he anticipates GPU tech making the next major leap in its evolution; until then, he expects fellow developers to focus more on what they already have to work with, by means of stylized graphics and
hardware accelerated physics.
Source – Crysis cost 22 million to make, IGN
Source – Crytek: New engine in 2012, IGN
by Randy Nelson Aug 19th 2008 7:29PM
Filed under: Microsoft Xbox 360, Business
For
better or worse, Silicon Knights has finally kicked
Too Human out of the nest, seemingly
not too concerned about whether it will actually fly with most gamers. In fact, while the developer still intends to finish off the planned trilogy, it's not going to be doing so anytime soon.
Speaking with CVG, SK boss Denis Dyack confirmed that his studio's next game is going to be "Like nothing else we've ever made before." The dev has been working on a new title for Sega, which not too long ago was allegedly leaked in video form under the title
The Crucible. Sega was
quick to deny any connection between SK and a game with that name – which would be good for Dyack, since it was clearly a third-person action/horror game. You know, totally unlike
Eternal Darkness.
"We've been lucky enough to make Legacy of Kain, Eternal Darkness, Too Human ... and if you look at all of those they're all really different," Dyack said of SK's plans for its new IP. "We want to continue to do that, to keep fresh. That's really what's important, and making sure that we continue to make new IPs but also continue to innovate in the genres that we try to... create content in." We think it's safe to assume that, whatever this totally fresh new project is, it
won't be using the Unreal Engine.
by Kevin Kelly Aug 19th 2008 5:27PM
Filed under: Sony PlayStation 2, Sony PlayStation 3, Nintendo Wii, Microsoft Xbox, Microsoft Xbox 360, Business

According to DFC intelligence figures cited by
Dave Perry, Sony has lost more money on the PlayStation 3 hardware than it made on the PlayStation 2 during its five most popular years. In pure numbers speak it's lost $3 billion on the PS3, which is about equivalent to everything it made selling PS2s during its peak years. This story would actually have a lot more impact if Carl Sagan was around to say "beelyuns."
Perry, best known for his stint at Shiny Entertainment, was speaking at the really long-named Games Convention Developers Conference, which appears to be both a Convention
and a Conference, and was just using the figures to underscore how much Sony was spending on hardware development. However, the
1UP article doesn't mention until near the end that the original PS2 lost money in its first year, and that Sony (and the other console makers) does this so it can make bank on the software/games that people need to fuel their systems.
In all fairness, the article goes on to explain that Microsoft lost $4 billion on the original Xbox, and has had to spend over $1 billion replacing faulty hardware in the 360 and extending the warranty for original purchasers. So, we tend to think $5 billion trumps $3 billion. The real winner in this struggle? Nintendo. It has been churning a profit on that little Wii since it hopped out of the gate. Rassin' frassin' wand-wagglin' profiteers.
by Alexander Sliwinski Aug 19th 2008 4:58PM
Filed under: Culture, PC, Sony PlayStation 3, Nintendo Wii, Microsoft Xbox 360, Sports, Business
FIFA 09 cover athlete Maurice Edu has been traded to another team, meaning EA Sports will,
yet again, have to change the box art on one of its games. Edu, who would have been featured on the cover wearing his Toronto FC jersey, will now wear the uniform of the US Men's National Team -- not Scotland's Glasgow Rangers, which is the team he'll actually play on. EA Sports tells
IGN that the cover of the game will ship with the correct art -- no
"print out" version necessary.
This would be the second time in a month that EA Sports had to dump extra resources into changing a cover due to an athlete changing teams. Earlier this month the publisher had to
fix the art for perennial high-profile American football title
Madden 09 when cheesehead favorite Brett Favre
unretired and left for
New York New Jersey.
by Justin McElroy Aug 19th 2008 2:30PM
Filed under: Culture, Business

MTV Multiplayer has been the host for a lively discussion of box art credits recently (as has the
delightful David Jaffe), and a new post may add fuel to both sides' fires. The site has created some mock-ups of what your favorite game boxes may look like if the dev team got credit on the cover.
The immediate reaction as we perused boxes like
God of War and
Halo 3 was one of revulsion, but the more we think about it, it might be kind of cool to see boxes used to portray games as a team effort rather than just touting the IP within. What do you think?
by Alexander Sliwinski Aug 19th 2008 1:30PM
Filed under: Business
The
crack refinement corporation disguising itself as a game company -- also known as
PopCap Games -- has
announced that the
Bejeweled franchise has sold over 25 million units across all platforms. The definition of "all platforms" would consist of online, mobile, retail, "in-flight" and other channels.
PopCap also noted that the
Bejeweled series has been downloaded 350 million times from the interwebs and makes up one third of the company's billion-plus downloads. The game has earned over $300 million in revenue through sales and "tens of millions" in online advertising. Jason Kapalka, co-founder of PopCap, says online distributors wanted no part of the game when it released eight years ago -- he vividly remembers buyers telling him, "It's not even a game."
by Christopher Grant Aug 19th 2008 11:57AM
Filed under: Business
It's the hottest thing for Hollywood fat cats to do: In-between making things explode and vacationing, they'll attach their name to a video game so, as long as the young people of the universe are spending more and more time away from the movieplex, at least they're spending time with your (brand) name.
Peter Jackson;
Steven Spielberg;
John Woo;
Jerry Bruckheimer;
Vin Diesel – you get the idea.
Variety is reporting that Tony "Top Gun" Scott was similarly attached to Midway's
recently canceled – albeit never announced – Austin project,
Career Criminal. Of course, Midway won't confirm the information since, well, it never announced that the game existed in the first place, remember? The silver lining: Scott's free to work on our long-dreamed-of video game adaptation of The Last Boy Scout. Think about it: Bruce Willis' likeness and voice, that's the stuff
hits are made of.
by Alexander Sliwinski Aug 19th 2008 10:00AM
Filed under: Business
Flagship Studios' founder Bill Roper recently spoke with 1Up about how the
Hellgate London developer ended up becoming another
cautionary tale for young developers out there. Roper explains that the
revenue model on
Hellgate was broken and much of the money coming in went into keeping the game online, instead of expanding content like it should have.
Roper also admits the
quality of the title wasn't great. He blames the PC market for being "lousy last year" and concedes Flagship didn't have unlimited money to hold on to
Hellgate any longer. He also confesses that the company overreached trying to make "an MMO and an RPG and a shooter," attempting to please everyone and (obviously) satisfying very few at the end. Roper explains the Flagship Studios disaster in
1Up's interview in detail -- definitely worth a read for any aspiring studio head.
by Justin McElroy Aug 19th 2008 9:30AM
Filed under: Business
We couldn't be more excited about this news, so brace yourself: Jellyvision, creators of the
You Don't Know Jack series, are coming back to the games business.

As new head of Jellyvision Games Mike Bilder said in a recent release, the company's mission is now to "build huge new brands that run on every platform that makes sense -- the three consoles, PC, mobile, handheld, coin-op, Vegas. And, of course, we're going to start by truly reincarnating
You Don't Know Jack."
We're giddy at the thought of games that, as company CEO Harry Gottlieb said, "combine the social dynamics created by great board games, with the thrill and story arc of great television game shows." But ... and we almost hate to say it out loud ... could this also mean that an English
Seaman 2 might be just a little more plausible?
(P.S. If you want to warm up on some
Jack right now,
you totally can.)
by Alexander Sliwinski Aug 18th 2008 11:15PM
Filed under: Business
IBISWorld, publisher of "business intelligence research," released a report today that foresees the video game industry growing 10% annually and hitting a high of $63.2 billion in global revenue by 2013. The
report notes the industry currently brings in about $40 billion globally, "with a loyal client base regularly topped up by a fresh generation of users with older players failing to desert the sector at the age originally expected." Age originally expected? Are people expected to abandon movies, music or books?
Anyway, the report believes gaming parents are "ripe for the picking." It notes that 93% of gamer parents play with their children and, with half the games sold in 2006 being E-rated, that mom and dad are a viable market. Not to rain on the revelation parade, but didn't
Nintendo already figure that one out?
by Alexander Sliwinski Aug 18th 2008 9:45PM
Filed under: Culture, Business
GameDaily reports Joshua Larson, former VP of Games at CNET Networks and the man often blamed for GameSpot's
Gerstmann-gate scandal, has been named VP of Business Development at in-game ad agency
Double Fusion. Please let the deliciousness of that flow over you for a brief moment.
Double Fusion's President and CEO announced Larson's hiring along with several others, saying that the new folks share a love of games and a "history of strong results and success in their prior roles." Larson's previous role was to manage business strategy and product direction at GameSpot.com. He's been
dubbed the point man in the firing of Jeff Gerstmann and the
exodus which followed, leaving GameSpot an
editorially tarnished brand. If "success" is determined through money and not reputation, then it's probably being used to describe Larson's small roll in
CNET's purchase by CBS for $1.8 billion earlier this year.
by Kevin Kelly Aug 18th 2008 7:45PM
Filed under: Culture, Nintendo DS, Nintendo Wii, Business
We've already witnessed the news that made us go, "Wha?" -- Atari
actually turned a profit this past financial quarter, even though it was just a measly $3.5 million smackers. GameDaily went a little more in-depth in their
interview with brand-spanking new Atari CEO Jim Wilson to find out what the company's plan is for staying profitable and earning bigger margins, and we'll sum it up for you here: "We really, really, really hope
Alone In The Dark continues to do well," and "Location, location, location!" Yup, it's trying like mad to establish a strong footing in the North American market.
The trouble with that scenario is that the most exciting Atari title we were shown at E3 was
What's Cooking? With Jamie Oliver for the DS. Atari is relying heavily on
N+ and
Backyard Sports to make a splash... but will it be enough to keep its head out of the water? The publisher needs a huge smash that can potentially turn into a franchise to keep things rolling, or else release dozens of marginally successful titles for the DS and the Wii to make things stick.
Either way, the interview is an interesting read. While we don't want to see Atari fade into obscurity and bankruptcy again, the company has a hard row to hoe.
by James Ransom-Wiley Aug 18th 2008 6:15PM
Filed under: PC, Sony PlayStation 3, Nintendo Wii, Microsoft Xbox 360, Online, Business
Congratulations! You're now a part of history ... or at least, a part of Alex St. John's alternate reality. Spend enough time with "the guy who talked Microsoft into the console business" and you might start seeing a big red countdown -- the kind that ends in
KA-BOOM! -- tattooed on your gaming console, the UK's
Telegraph reports. "I think we're looking at the last generation of consoles. There's not going to be an Xbox 720 or a PS4, I'll make that bet, not going to happen," St. John predicts.
Not surprisingly, St. John's grim prophecy doubles as a convincing plug for WildTangent's forthcoming virtual console:
Orb. Orb will offer "enthusiast" games (
BioShock and
Assassin's Creed are two "possible" examples) for free on an ad-driven, session-by-session basis. In theory, this kind of digital platform could one day replace disc-based consoles, as it offers "free" gaming through an advertising model that consumers have accepted in other markets and cuts out the huge economic losses that console manufacturers can't seem to avoid (um, except for
Nintendo!). "I'll take the heat if I'm wrong and don't mind being mocked in the future with people going 'Wow, was he wrong,'" St. John says of his market forecast, "But it doesn't happen to me very often."
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