Tag Archives: Nintendo Switch

The tail of a prophet

I spoke on all kinds of matters, and I also gave some upcoming predictions. So, on June 17th of 2017 I predicted: “So by the end of 2018 the console offset ‘Sony:Nintendo:Microsoft’ could end up being ‘13:9:2’. This would show Microsoft on how they truly bet on the wrong marketing horses. So I admit, it is a speculative prediction, yet the sales numbers are not that far off and my expected Nintendo growth is not unrealistic“. It was (at https://lawlordtobe.com/2017/06/17/after-the-e3/) where I decided to introduce the audience to some of the massive bungles that upper management at Microsoft is involved in. Now, if they replied (read: if, if is good), it would be along the way of ‘it is not our core business‘, or ‘we have all out vestment set to the Azure solution‘. Yet in that view options like Hadoop are already mentioned on the way out, getting replaced by a new flavour of Big Data. Microsoft has Blockchain as a Service (BaaS), but there the adaption is not on the curve they need it to be, so as we see other places become contenders, we realise that Microsoft is too big to just fall over, but as they wanted to be in the generic ‘let’s be there for everyone‘, I see (a personal believe) that those focusing on one part of a business that they are excelling and they are taking away customers left right and centre. Now, this is not a tidal wave, it is a slow process. Yet, in all, the quote I gave now has a serious side. Only last night did I get the news that the Nintendo Switch has hit the 5 million sales mark Compare this to PlayStation 4 Total Sales: 63.4 million and Xbox One Total Sales: 26.5 million (not entirely accurate as clear numbers are hard to find), both released in November 2013. So in 6 months Nintendo closed the gap by a lot. Nintendo is currently committed to get production up towards 2 million consoles a month and this is showing as some analysts (not the group I have the most faith in) have predicted that by March 2018 Nintendo will be expected to be seen in over 13 million homes. So in one year the Nintendo Switch will close the gap with the Microsoft Xbox. My predictions are still on speed to become a reality, yet the given by December 2018 might not be the case. If Nintendo releases the games they have planned on time, the curve will increase and whilst the Microsoft business analysts will bedazzle the people with Scorpio, 4K gaming and other things, the consumers are starting to realise that the people at Microsoft are less clued in on the gamers needs, a thing I clearly stated for close to 2 years (or was that 3 years) and now my predictions are slowly moving into the sunlight for all to see. At present my 13:9:2 is likely to be 12:5:3 no more than, yet Nintendo remains in 3rd place, which was the larger part that mattered. Still this is based on two players with 6 years and Nintendo with less than 2 years by the end of 2018, so even as consoles would have been sold, the Microsoft growth will stagnate as a larger population from their camp will switch to Nintendo and the family friendly games that Ubisoft produces are not helping the plight of Microsoft in any way.

You see, there are two groups and as Microsoft does not care about one of them, it is that group that will drive the dagger home so to speak. It is my personal believe that Microsoft is ignoring the people who bought one and they are realise that to some degree they ended with a lemon. Now these people are not going to jump to Sony, but with the Nintendo wave and the good pricing of that console they will consider the Switch for Thanksgiving and Christmas, so there is a 95% chance that Nintendo will have a great Christmas on a near global level. You see, the group Microsoft neglected is now showing a dusty Xbox One, these people are not going to Scorpio and depending on their gaming prowess, not only will they advocate non-Microsoft solutions and buy a Switch, they will in theory prevent 2-3 other players getting an Xbox as well. So not only will Microsoft be fighting an uphill battle from the day they launch, their new system will be buried by the sales achievements that Nintendo is bringing to the ‘Just Dance’ floor, which will be a growing and is likely to be a Nintendo dominant dance floor. A nice little positive event (read: impressive achievement) for Ubisoft as well. A game that has hit the 25 million mark is showing to be as successful as the Xbox One console at present ever was. The fact that some Microsoft executives are not contemplating suicide is a small miracle to say the least. Perhaps they should have actually listened to the gaming community and not revere the spreadsheet they adhere to.

We see at present more and more news in both camps. One showing that Microsoft is more and more successful for the Scorpio, some show that Microsoft remains stagnant and are now setting $50 price drops and one source gives us “Only 13% Of Hardcore Gamers Plan On Buying An Xbox Scorpio“, which is a number I feel uncomfortable with as I expect that number to be at least twice as high. Yet between the expected buyer and the actual buyer there will be a gap and the results of Nintendo show that gap to likely be widening on a nearly daily basis. In other news, a few months ago we saw (at https://mspoweruser.com/project-scorpio-fails-impress-american-gamers-according-nielsen/) the title “Project Scorpio fails to impress American gamers according to Nielsen“. This fact is a lot more interesting were it not for one given part. When we consider the quote “Phil Spencer has to prove to gamers that they need to upgrade. The only way to do this is to show mind-blowing graphical upgrades and flood the internet and television with advertisements of the device” we need to wonder about the job Nielsen has in this. You see, ‘mind-blowing graphical upgrades‘ might seem nice, but in the end it is about good gaming and that has not been delivered by many games, not to the degree it needed to be. In the second, the part ‘flood the internet and television‘ might be to appease their other customers, but it does nothing for the gamers, only the badly informed consumers and that market has shifted a lot. It has shifted because people bought the WiiU and some of them are now hurting by the Xbox One, not in the smallest part because of unwanted and non-consensual uploads by the Xbox One into the Azure cloud. We are becoming more and more data savvy and the Microsoft helpdesk telling me (read: they really did) that this lies solely with the internet provider is a party line so stupid, it makes me want to vomit. So from the side of Microsoft, we see their hardware, their policies and their shortcomings, they sold out the gamer three times in a row with one console. that and the ignored part by Nielsen on how much of a blasting success the Switch was gives us more and more light that properly informing an audience is a loaded canon to say the least.

Now, I am willing to say that my data is not completely up to scrap. When we consider that several sources who give clear Sony sales records need to guess and get other data sources to compile the Microsoft numbers. The fact that Microsoft has been remiss (or pushing dates of publishing numbers) is one tactic to keep the diminishing group of Scorpio pre orders in the dark. The first set will be immediately sold out, that was never in question, but the three subsequent pushes are the ones that are in play. The war for Christmas is on and even as I have illusions regarding Nintendo winning that, there will be loads of Ps4pro’s and Scorpios on the list of plenty of kids. The A$650 might seem nice, but in the end, as people realise that storage remains an issue, having the A$675 2TB edition would have been the smarter move. Oh wait, that one does not exist because Microsoft did not consider the gamer in any of this, just their Teraflop speech laced with 4K resolution. That evidence is shown by Microsoft when we see “While Forza Motorsport 7 hasn’t been released yet and it won’t be out until October 3rd, the official Microsoft Windows store has listed the download size for the game and it is a gigantic 100 GB” (source: gearnuke.com), a factor I mentioned before, so as the 1TB drive loses around 300Mb for the operating system and store parts and so on, the gamer soon realises that there will only be space for 7 games in 4K. So how long was Microsoft going to hide that disaster? When you have to reinstall 3 games within 6 months and get the patches, how long until you get to be in an aggravated state of irritation? A clear issue that the Xbox One had and even as Microsoft had the ability to diffuse the situation, they decided to not do anything, which is another battle they lost to Sony and one that might drive more gamers towards the additional Nintendo pile of those who want to enjoy a game. This now also fuels the previous blog on digital rights (one that Euro gamer made me start after their video), because in that setting a physical copy on disc becomes more and more important to every gamer. Yet this is not all, it is the largest factor in gaming that is now starting to push the envelope to the degree that Microsoft will not be happy about. With the announcement of ‘a Nintendo Switch version for Fear Effect Sedna‘ just today will be coming to Switch pushes the bar as Microsoft is losing their exclusive range of games faster and faster. This is a known bar that both Sony and Microsoft pushed as much as possible, now that some iconic titles are also coming to Switch; the results will have an impact on all consoles (it will impact Sony to a much lesser extent). Even as I personally believe that some titles will not make a person not buy a game, but could push a gamer to get the Nintendo Switch on the side. This action results in more and more hazard points for the continuation of Microsoft consoles as a growing group of people are now cancelling pre-orders. Now, that is not an entirely accurate statement. Let me give you the ‘down low‘ on it. Last month has given more and more forums the issue where people came with the same issue “my Xbox One X pre-order was cancelled for no explainable reason by Target“. There seems to be a separate play going on. Some players never cancelled their pre-order, it seems that some players who wanted to make quick solid revenue are now confronted that their infrastructure cannot deal with the sudden ‘need’ of thousands of players and their systems seem to be unable to keep score to coin a phrase. So here Microsoft is wrongfully set in a bad light as other systems cannot deal with the infrastructure of some consumer chains and Target does not seem to be the only one. I believe that there are people having second thoughts, which will always happen. I believe that the ‘converted’ curve of Microsoft is a lot lower when we consider actual ‘converted’ gamers. So there are those numbers to consider as well. The backup in all this is that as cancellations happen, sales numbers might regionally shift and this is happening in the height of Thanksgiving and Christmas, so there will be a larger lash back to consider in January, but that will be a story for another day.

So as my tail is considering the tale of a console that was designed not fore gamers, but for players. Microsoft needs to sit down and make some clear considerations on where they went wrong and how they moved from second place to a possible degradation to initially position three, all because three factors that could have been directly avoided were ignored for (as I personally see it) other business needs.

A harsh situation that again, as I personally see it, is all the doing of Microsoft self and they only have themselves to blame, a market shift in merely 2 years. I wonder who they’ll blame when the numbers become crystal clear at the end of the next financial year. Perhaps it will give us a new console in 2018, the Microsoft EOFYbox, free with every Microsoft Surface Pro IV.

 

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To emphasize ‘flawed’

There are all kinds of issues playing. Murdoch who admits that they benefitted from hacked emails (so what else is new), the call for the leadership of the Tories or even more annoying the battering ram of North Korean rants and counter rants and the nauseating gossip train of the Las Vegas shooter. All of that is worth a few dozen words, yet in my mind, in light of yesterday’s view of IP and gaming IP, I think it is clear that a few more words need to be spend on the category, but now on a different field.

IP is at the heart of the matter, but now we will look at another side. For those who have had a view of games and gaming, many will remember the awesome trilogy called Mass Effect. Those who went through the growth of the Xbox 360 brand will have been aware of the Mass effect trilogy, there is no way escaping it. The first one gave us something new and exciting. When we consider the Elder Scrolls and the Fallout games, we were clearly introduced to a competitor in this field and Mass Effect delivered something new, 2007 became an almost magical year. Then something new happened, in 2010 we saw the sequel, a sequel that is still regarded as one of the best RPG games that the Xbox 360 ever received. I will skip the final part in all this. So in this history, you might understand that the expectations were so high (perhaps too high) for Mass Effect Andromeda. The people at Bioware had 5 years to get it right and they failed. The game was flawed on several levels and even as we need to accept that it is not a bad game, the utter quality of Mass Effect 2 was not equalled, not by a long shot. I am not alone, many reviewers saw the game as one that does not equal the initial trilogy and even now, the interest of a remastered original trilogy is desired a lot more than Andromeda is. I finally played the game, I was unwilling to pay the full amount after being shown the most basic of glitches and issues, but when offered as a new (not pre-owned) game for $25, I gave it a go. So as I have finished the game in a week, I concur, the game is flawed on several levels. I am not going into the animation and graphic glitches, too many did this. The game from the beginning shows a flawed approach to several sides. Now, it is shown in the initial level, a level which I usually ignore as it tends to be an intro level as to train the gamer how to play the game. So after the intro movie (which is actually quite brilliant) we get to go to the first place. Here we see the impact of flaws. So after 650 years in travel we get to a planet and whatever they have we can use to reload our own weapons. We see a new opposing player and that is fine, yet the battle strategy, the weapons, the resources show us a flaw from the very core onwards. Ammunition is the clearest part, but it goes beyond that. The Nexus, the entire evolution that we play through, we can go two ways here. Either the game should have been a lot bigger with a lot more to do to grow us into the nexus and locations, or live with the assumption jumps that were made, jumps that were wrong on a few levels (as I personally see it). Now, we need to accept that things like this happen in action games and shooters, because the focus of such a game is different. Yet in RPG you can’t get away with it. The plot does not thicken, but the elements get to be a lot more questionable. The Salarian ark and the Turian ark are just on the surface of that. When we get confronted with those elements in the story we see the flaws grow. Patched stories for the sake of whatever they thought it was going to be. So when we see (from Wiki) “Mass Effect: Andromeda required a team of over 200 developers and, according to Aaryn Flynn, was given a total budget of C$100 million, which included marketing and research costs.” we get the first realisation on the bungled level of a game. My initial personal design (concept) of the sequel to Skyrim took less than an hour to construct in my mind and an additional 4-5 hours to type. So I got to be in a much better place from the get go. Now, do not take my word for it, because you never should. So instead I am going to introduce you to a group of 20 people, not having anywhere near such a budget. The team is Unknown Worlds Entertainment and their take on RPG with Subnautica is one of the best, one of the most refreshing (all that water helps) and amazing trips I have had in my lifetime of gaming. I hope that this game makes it to the PS4 and if it is still available on Xbox live in early release do it because it will be the best $30 you are likely to spend this year. The comparison is important because even in its non-final stage Mass Effect does not get close to what Subnautica has already delivered. OK, granted that if shooting is your need in Mass Effect, Subnautica might not be for you, but overall Subnautica kicks Mass Effects ass on several fronts. Three programmers outshine the dozens that Mass Effect had and that is just embarrassing. If you want to learn more take a look at IGP (the Indie Game Promoter) who (at https://www.youtube.com/user/TheIndieGamePromoter) has all kinds of videos. So take a look at https://www.youtube.com/watch?v=KgyCiWXPZzE&index=76&list=PLVxH6E2fftrfbnmjYAXXiCJJwleb-HZvB for a first view of the game which gives a view almost two years before the final release. You want to skip to 1:45 and skip to the start of the game. The game is very much the truest view of RPG as they can get. So the intro is not as flash as Andromeda is, but that is the only time Mass Effect wins. Now, as stated, this is not a shooter, so be aware of that. The part that should amaze you is that this game is more about survival and the basic survivalist edge is often ignored by many RPG’s.

So as I am giving you a parallel on the skips of Mass Effect and also ‘story lining‘ of Mass Effect, we need to dig a little further. Now in their defence at times we cannot prevent that in the case of Mass Effect, but consider that after a trip for over 600 years, we get to aid certain players (Salarians) ‘just’ in the nick of time. This is an issue on a few levels.

Also even as we accept that many bought it soon and the game had sales close to three quarter of a billion, which is a financial success, it comes at the realisation that the game scores 72% which at the budget given is a massive flaw, yet here I will admit that the shooting side of the game is as some stated it: “The core shooting mechanics feel stronger here than anywhere else in the series“, which was made by Scott Butterworth of Gamespot and he is right, this part they did do very well and it is likely the one reason why the game remained the financial success it has turned out to be.

Yet the QA was far below par, the delivery was wrong and in the end I personally profited by getting a decent game for $25, a mere 6 months after release. So consider how this game could have gotten closer to the $1 billion mark by getting things right? An additional twice the investment by thinking things through and properly testing it from the start, and not even requiring to think too intelligent; the basic story line debated on the flaws that they needed to avoid from after the intro level onwards. Consider that the ‘Salarian Ark’ event became a basic shooting mission, whilst it optionally represented dozens of hours of additional gameplay on several levels. So apart from the timing as a ‘just in the nick of times‘ mission that is underused and oversold, we see that the other Arks become mere wasted moments in the game. In a place that has so many shortages, leaving behind an ark that has thousands of tonnes of resources seems weird, even if it does not have any lives left. It is not as the Nexus had an abundance of resources, did it? So there we see more, just after a setting that had a revolt, shortages and deviant issues, we see every time the Tempest comes and go’s (too often because of other flaws) we see that the docking level shows an environment that equals the embassy level of the citadel itself, all missed options and opportunities. There we see the option of an additional 10% score if it was done and properly tested. So now we get from 72% to 82%. Then there is the premise that this is a game with only 5 worlds to fix?

There could have been a few more, and more important, changing the way the vaults were accessed on at least one world might have made the game a little less obvious (to some extent). So here we have another 5% in the making, making the game approaching a 90% game, which is a given need when you waste 5 years and a hundred million. Subnautica, when you like that part of RPG gaming is giving you at 25% of the full price of the Mass Effect game. A game that was already awesome when I decided to get it and whilst playing the early release, the game added at least 4 more expansions to the main game and they are now part of the main game. In one part Mass Effect wins. The graphics, there is no denying that the graphics of Mass Effect were really good, but we might see that an additional 80 staff members (and 90 million more) should guarantee that part. All this and as we know that RPG’s are set over time, so we can accept that growing the impact over time as we play might have given a few more options and a few more changes to the way that the game was played, giving the gamer a better game (and optionally a much larger game).

So as I have enlightened you on some of the flawed parts, there is now the link to the previous article to set. The longevity of a game as well as the IP is the sellable part of any developed game and in that part Subnautica is all about original IP and they got the IP to grow value, loads of value. Even as we see that Mass Effect is to some extent more of the same, they did grow their IP range, but only to a fraction of Subnautica. This now gets us to the setting that is the link. In the digital age the value of the service purchased is the money we invest in the product we thought we bought. You see, as gaming progresses, we see a dependency and as such we no longer buy the property, but we lease it in some ways and rent it in other ways. The gaming industry has no choice but to set the multiplayer sides into a renting foundation (buying with an open point or termination), whilst the single playing part (the missions) will be leased for the term of the console. Now consider the satisfaction you get from leasing a game that is rated at 72%. Are you willing to go on paying the amounts we see? At this point I have now shown you the essential need to properly test a game before release. You see, it is shown in the quote that several sources gave. With: “Following Mass Effect: Andromeda’s poor critical reception and lacklustre sales, BioWare put the Mass Effect series “on ice”“. So even as we saw some sources state a sales numbers surpassing $500 million whilst there was $100 million invested, so either the numbers given were wrong, or we see the impact of greed as others walk away from a $400 million milk cow. In that part, what were the true costs and why would any company walk away from a possible $100-$250 million in season pass revenue. This part and the issues had shown from several sources that the detrimental financial health of IP and IP value is shown to be at least to a larger part to be due to the flawed quality of proper testing. Ubisoft has been though it (Assassins Creed Unity) and as we see Bioware and Electronic Arts walking away from half a billion dollars, we need to consider beyond games and the value of a gamer, we need to see that the impact of IP is not set in stone and the quality of the product (or service) is at the foundation of what we think we purchase and what we expect to receive. In this there is the clear evidence of the flawed product that is Mass Effect Andromeda and the weird part is that I saw the flaw in the first hour of the game. This now sets the premise of the wrong players (read: business parties) that were in charge within Bioware and Electronic Arts. It is my personal believe that their marketing division has either too large a vote and they looked at the wrong sides of the game. This in a setting of a 100 million invested, how weird is that?

So now we get the treasure that the Cullens, Patent and Trade Mark Attorneys give us on their web site. With “Whether buying or selling a business one of the most overlooked aspects of the transaction is the intellectual property of the business. Proper identification, scrutiny and valuation of intellectual property will have benefits for both the purchaser and vendor“. It is the issue that is really the bread and butter of growing game developers. In this the word business can mean either that or it can be set to ‘product’ or ‘service’ and the realisation of this quote which is not new, shows just how flawed (or sloppy) Mass Effect Andromeda turned out to be. Now, we look at the bad sides here, but the game has loads of good sides too. Yet it missed the boat by at least 20% (72%, instead of 92%) and I lighted up 15% in the easiest of ways. The last part we see when we dig into the world of the game testers. Now I can relate here, because I reviewed and tested games for the better part of a decade. My knowledge and skills showed me the parts I illuminated and I truly believe that there are better testers than me, so that implies that none of them work for either Electronic Arts or Bioware which is statistically near impossible, so that means that the large investment was made on a flawed infrastructure, or at least that is as I personally see it. You see, the old joke (from when I was young) has been that it takes 90% of the time to fix the last 10% of a project. At some point highly educated graduates were hired in places where the foundation of art is the core of the business and they introduced the setting of ‘linearity’ of art based projects. So that a project is done at 10% a month and the last two months of the year were for testing, which is not how it works and not how it will ever work. Now, I simplified the idea for illustration, so it is not an exact given, but the clarity of flaws that Mass Effect Andromeda shows on day one of release gives the validity of my view and shows just how breached the concept of design linearity is (perhaps you remember the Ubisoft statement of ‘every year a new Assassins Creed game’). As such, I believe that the game lost out on massive revenues.

Now consider the two headlines:

Bringing Mass Effect to a new galaxy isn’t quite the shot in the arm the series needed” or “Blown away in another universe 640 years later“. The first is IGN and the second one is one I came up with, if they had done a proper job. So would you buy the game if you read ‘isn’t quite the shot‘? Gamespot had “After the first few hours of Mass Effect: Andromeda, I was discouraged“, whilst Forbes gave us “I don’t think anyone will claim it outclasses the original trilogy, outside of maybe the very first game“, so a new game merely on par with a game released a decade ago. This is the setting of a flawed product and the fact that this was not seen in the beta stage of the game is questionable. So in an age of digital rights that are moving more and more from the permanent availability into a stage of temporary usage, where we no longer get to own the product, yet merely lease (read: rent) a product also requires others to realise that the game of gaming is shifting, and these players can only continue if they ‘up the quality’ of the product or service they make available. This shows in one way just how amazing a game like Skyrim is proving to be, the fact that the game still embraces gamers 6 years later whilst Electronic Arts loses the bulk of value of a product within 26 weeks. That is the evidence that shows that flaws are becoming a much larger issue for all in these fields and it shows that the players like Ubisoft, Electronic Arts and others as well, need to take a harsh look at what they offer and not merely listen to their own marketeers as the value of what they bring forth is now shifting whilst a product is in development, which is the third nail in the coffin for Electronic Arts as it took 5 years to get to a very much less than perfect place they ended up. I believe that the flawed setting can be improved upon, yet the people at Bioware better realise that the stakes are raised and they are raised by a lot, in that we need to ask whether they can match the needs of a shifted market.

I cannot answer for them, and like Nintendo Electronic Arts and Bioware are not out of the game. You see, even as Nintendo bungled the WiiU, they hit back with the Nintendo Switch, which is becoming a game changer in gaming. I believe that both Electronic Arts and Bioware can do the same, the question is whether they will, time (read: the next release) will tell. Should that fail, they could always move forward by charging their fans an additional $10 for a steel box of a game. Oh wait, they are already doing that with FIFA18, ahhh how the world turns!

 

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Drop the Mike, Ashley!

Welcome to the issues on a man that I do not know. This is not the most straight-forward of starts, yet the man who has been valued more than once and that verdict is several thousand stacks of £1,000,000. The man who owns Newcastle United, which means he gets the swanky seat in the stadium. Now, we can understand that this man founded Sports Direct. When you get enthusiastic about sports, you can bet that it will be part of your life. There is no denying it and as it became a good success, I would state ‘good for him’. Yet, the focus on him started in an entirely different way. It started with him getting in on the videogame action by getting a near 26% stake in the franchise ‘Game‘. That brand did not go well here in Australia, yet I always found it to be a decent store and the people working there knew their games and consoles. I have seen them in the UK as well and a similar feeling remained on that experience. Here it did not go well as they were up against EB Games (who grew aggressively at that time) and JB Hifi that was an established chain of quality stores, so they had a murder competition, they did not make it (for the most). Yet all this is now in play when I read “Mike Ashley swoops on video games retailer after profit warning forced by shortage of Nintendo Switch consoles“, this is a weird issue. We get ‘profit warning‘ in regards to a situation of shortage. Basically the story becomes, we are short on revenue/profit because we can’t get any more consoles, they are sold out, and everyone wants one! Which at present is pretty much the truth of the desire of people and their need for the Nintendo Switch, it is actually THAT amazing.

The result was “Game shares rose by more than 15% to 28p on the news, and later traded at 26.5p (up 9.3%), giving it a market value of £47m“, apart from the 28p not sounding like that impressive, it is the end result of +9.3% that is staggering. You see, I have issues with the entire part where ‘profit warnings‘ are labelled in the way they were. You see, the entire mess (as reported) gives no clue on the actual situation (well, the one as I personally see it), I do not care how people quantify one way or the other; it is the addressing of profit warnings.

I offer in evidence the following pieces

Part 1, Sony (at http://www.playstationlifestyle.net/2017/01/03/uk-2016-sales-chart-2016-game-sales-down-13-infinite-warfare-the-2-best-selling-game-of-the-year/) gives us ‘UK Sales Chart: 2016 Game Sales Down 13%, Infinite Warfare the #2 Best-Selling Game of the Year‘. In this we see: “The major titles of 2016 also disappointed when compared to 2015’s, with Call of Duty: Infinite Warfare (the second biggest title of 2016) lagging 31.5% behind Call of Duty: Black Ops 3. In other comparisons, Watch Dogs 2 fell just short of the 500,000 copies Assassin’s Creed Syndicate sold in 2015, Steep performed worse than Rainbow Six Siege, Gears of War 4 couldn’t reach the heights of Halo 5, and Final Fantasy XV was outsold by Just Cause 3.” For those who do not talk games, let me boil it down to the first item is that overall less games were bought. In my personal view, the overall quality of games was not great. Even as Watchdogs 2 was a good step up from the previous game, yet many gamers felt too burned by the first game. I believe that the second game was good, it has online and offline options and people were not forced to go online here. Regarding the other title, I am not a fan of Call of Duty, I know many are. the fact that a game like that became ‘the’ game is not entirely on the fact on how good their Infinite Warfare was, it is more that the other games were way below the line. The fact that the last four larger releases this year alone could be bought for 50% down, including the special editions with figurines is also a changing trend. People are less willing to just shell out the cash for games, reviews are more competitive and even though there are really good reviewers, there are a lot more really bad reviewers and they tend to get plenty of exposure. Yet in the end, the games were for a larger extent not up to snuff. The reviewers ‘deserve’ extra attention as some are more and more about the larger players, whilst some of the true gems have been largely ignored by plenty of people. Nioh is perhaps one of the most visible ones. Like Infinite warfare it is a specific game. I actually like this game, but I loathe the challenge it contains at times (they are really hard games). Some saw that is was some Dark Souls games and plenty of people ran for the hills as this is a game for actual gamers, not for wannabe’s. In my view there are several similarities, yet the only thing that the game Nioh truly has in common with Dark Souls III was its graphical excellence.

So here we see two elements that would push any revenue down.

Part 2, Pushsquare. At http://www.pushsquare.com/news/2017/01/ps4_physical_game_sales_increase_as_uk_industry_suffers_blow, we see more confirmation: “Overall sales down 13.4 per cent“, the mere subtitle and the direct impact that matters, less sales overall, this is not entirely correct, but I will get to that in a moment. The next quote is, as I personally see it wrong, but still essential. With “Bethesda’s Dishonored 2, for example, couldn’t come close to matching the success of Fallout 4, while Square Enix’s Final Fantasy XV somehow failed to outsell Just Cause 3.” My issue is that no matter how you slice it, Dishonored 2 is a little bit of a niche game, more intent for those who love stealth gaming (me being one), it is graphically superb, the game is a little steampunk in a very good way, but for the most, it is highly original and exquisite in quality. It is not fair to compare it to a game that has millions of followers and has been revered since its original release (Xbox 360, PlayStation 3 and PC) on 11/11/11, the date that some will carry with them for all time. An established success that was bought on the console be new players as well as nearly everyone who had the previous version. The game is good for months of gameplay, so a game that sells itself due to 5 years of raving reports. The second is equally unfair. I myself was never a FF fan, but I have always admired the originality and scope of the stories and the near perfection each game brought. Even I am surprised that Just Cause 3 outsold it, perhaps merely because of the over the top explosions and things you can do with the game? I cannot tell what the exact reason is, yet the second part implies that the gamers are diversifying in different directions, changing the gaming requirement. It is almost like there is a new generation taking over the baton of gaming and it has different tastes.

Yet he best is left for last, in part 3 we see Retail Week

The mention (at https://www.retail-week.com/sectors/entertainment/game-issues-profit-warning-as-uk-sales-falter/7022184.article), where we see “The specialist retailer, which posted a slump in its interim profits in March, said anticipated supply in the UK of the latest Nintendo console had failed to meet expectations, negatively impacting overall sales“, is a first issue. In this the mention ‘anticipated supply‘ beckons the question, so did you order enough or not? As the experts, you should have seen the impact it would make. The E3 and other events clearly showed that Nintendo was blowing both others out of the water. In addition we see “alongside ongoing poor sales of Xbox and PlayStation devices“, now we can argue about Xbox for several reasons, so let’s take this out of the equation, the PlayStation part gives the issue. Overall sales of the PS4 and PS4pro are still up by a decent amount, so it now becomes a shifting focus, but I will get to that soon.

For now I will end with the quote “The group continues to actively implement its UK action plan, encompassing improved supplier arrangements, enhancements to the customer experience, further operational progress including cost reduction programmes and disciplined cash management“, yet will not address it yet. Let’s take a look at three more elements.

The first is from the Business Insider which gives us “Sony sold 10 million PlayStation 4 consoles between early May 2016 and December 6, 2016. That puts sales in the neighbourhood of over 1 million sold every month, which keeps it locked in as the fastest-selling PlayStation console of all-time

The second is again from PlayStation Lifestyle with “Taking a deeper look at software last year in the UK, Games Industry points out that nearly 80% of all boxed games sold last year were either on PS4 or Xbox One (up from 66% in 2015)

The last is G24/7 where we see (at https://www.vg247.com/2016/11/14/ps4-console-sales-have-tripled-in-the-uk-following-the-launch-of-the-ps4-pro/) “Sony’s PS4 Pro launched at the end of last week and has had quite the impact on PS4 console sales. According to MCVUK, PS4 sales for the week ending Saturday, November 12, were up 204%. 65% of the total PS4 sales last week were for the PS4 Pro, while the final sales figure for all PS4 consoles was 44% higher than those for the Xbox One.

Now we put the whole together!

We know that sales were massive end of year 2016, especially with a new console and Christmas coming up, all that makes sense. We can also clearly see that overall, the consoles represent the bulk of all game sales. This partially makes sense because that is what we see as flagships in pretty much any gaming store, PC owners have a lot more options to buy in other places and at times a lot cheaper and there is Steam to consider, so that part remains an unknown and as such a much lesser impact to these stores (apart from the selling of steam credit). The fact that the PS4 is surpassing the previous consoles, is debatable (PS2 sold over three times the amount in its life time), yet the overall market trend is that games should be on par and were up by a fair bit last year. So when we go back to the initial start with “Video game retailers have been particularly badly affected by the broader shift away from the high street in recent years, with developers moving to increase their own profit margins selling games as direct downloads“, which we get from the Financial Times (at https://www.ft.com/content/172c3ba1-e880-35e8-9273-957e325cd7f4?mhq5j=e3).

In this there is debate, yet he part no one touches on is how the expectations were set, what they were weighed on and on the given image that sales were down, which had been an upcoming known for close to 2 quarters of a year. The part that the Financial Times gives us is that direct downloads are playing more of a role nowadays. It actually impacts the industry in 2 ways. Apart from buying directly, the additional issue is that consoles have a premium service; most gamers take that because of online gaming and the fact that both systems offer at least 2 free games a month. Microsoft was initially really bad with that (lousy games or games everyone had), they are still not great, yet this month it includes Lego pirates of the Caribbean, which is actually a nice and decent game (and not a large download in console terms). Sony beats Microsoft here hands down with titles like Until Dawn and Life is Strange. In all this both offer decent free games, with a bonus for Sony people as their account will also enable them to get free games for their Vita handheld, all that for around £50 per year, the premium service sells itself to both consoles without any difficulty. All elements that shows the impact of a bad year of games, not consoles, the overall quality of games gives rise to people deciding to just download an average game instead. The interesting part that even as Ubisoft lagged in a few ways, the one game what was awesome in many ways, ‘For Honor’ actually did not do that well, which is a mixed signal that multiplayer games are wanted, yet without a strong one player side, it tends to not make the cut in a top 10, which would be unfairly devastating on the makers I think. All elements that the analysts in this case should have known and realised and as such, when we see ‘would not meet expectations‘, my question becomes: “the expectations of whom and on what foundations?” Now we get to the part I skipped.

With “The group continues to actively implement its UK action plan, encompassing improved supplier arrangements, enhancements to the customer experience, further operational progress including cost reduction programmes and disciplined cash management” I wonder what we are being served.

  • Did they call short because they did not keep an eye on running costs, what arrangements would be needed with suppliers? Were they not up to scrap?
  • Even more customer experience? Were the current settings and anticipations of the competitor not up to scrap?
  • Disciplined cash management? Is cash not managed correctly?

The feedback we got from Game, directly below the image of a sort of smiley ‘Game CEO Martyn Gibbs on the merits of in-store gaming arenas‘ is one that leaves us with the thoughts that Game is going down because they are not on the ball of the game, and the game is passing them by? So in all this Mike Ashley merely flying in to pick up a bargain? In this he better realise fast that Game has an issue and more than one potential issue in play, he also needs to realise that the Games market is a shifty one and in the years before the publishers see clear to push a bigger load to online sales in the next 5 years (depending on where you live), we better consider that top games is a market in motion and it is likely to see a shift that Microsoft and Adobe made some time ago on PC’s, it is not a change that gamers are currently happy with, but it is one that the next generations of consoles will likely face, the game shop is seen as the middle man and they are trying to cut it out to maximise it for their own need to please whatever stakeholders they report on. It is early days now, but in 5 years it won’t be.

In the aftermath we actually need to look where I normally do not go. It is the Telegraph, in this case the business section, where (at http://www.telegraph.co.uk/business/2017/06/30/game-warns-profits-will-substantially-expectations/) we see the generic parts like “following its third profit warning“, we know that Christmas was weak (to some extent), yet in equality when you consider the previous information, the issue is not entirely just ‘weak Christmas‘, it is merely a much stronger competition to some extent and the fact that the cost of living in metropolitan UK seems to be ignored by analysts and those who speculate on how it would (read: should) be. The issue that is stronger is “The shares nosedived to just 21p on the back of the profit warning, valuing the business at £35.6m only two years after it was floated at 200p a share by US hedge fund Elliott Advisors” as well as “Elliott cashed in £101m at the time of Game’s stock market listing by selling a stake and made a further £59m by dumping a further 10pc of its stake just three months afterwards, despite agreeing to a lock-up period of six months” which now also implies that Game got played and not in such a nice way. Yet the bulk of all the sources do not give any clarity of the part that Elliott Advisors was playing, even the Financial Times steered clear of that part. In this, I am now also questioning the setting as given to Game and its senior management. Even as CNBC is giving the notion that Paul Singer, CEO of Elliott Management is just the best invention since Frozen Yoghurt (if we are to believe places like Forbes, CNBC and the Wall Street Journal), I wonder what price we can see the UK pay for getting played to the extent it is getting by the US Hedge market, in that regard should we allow for any US company coming in under false pretences and flood the market so that they can drain the profit quickly and walk away? It seems to me that they tried that in the Netherlands with Akzo Nobel, which had the great benefit of Elliott Management failing (for now), but it shows the extent that as a shareholder Elliott Management will go to get their profit, it seems to me that Game was not nearly as lucky and the fact that the different levels of publications left that side seemingly in the dark corners of ‘them not printing that part‘ is also upsetting (to me even more upsetting is the part that the Telegraph actually did get that info out). The fact that Game has been seemingly under exploitative attack does not diminish the issues as given by some of the publishers by the quotes, Game got caught out, which under the current size and the possible level of possible losses is a dangerous place to be in.

In all this, I am aware of things, but not as much as a person like Mike Ashley would be, so is this his triumph with Game, should we see this as a mere quick victory to see if he can get more out of this than Paul Singer’s place did, or is it an actual rescue and grow attempt? I am not implying one or the other, but as you see the presented evidence, there are a few issues with Game and I believe as such they were set up as the weak runt in the market, whether this will happen twice in a row is something I have no way of telling and I am not implying anything wrong, immoral or illegal. The entire mess is not completely shown by some players and that is what seems to be the actual issue. I remain in an attempt to be protective of the places that feed my need for gaming and there is a positive in having a diverse and competitive market. It guarantees to some degree I get the best games at the sharpest price, which is what every gamer wants, there is no exceptions to that rule.

 

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After the E3

I tend to not take Kotaku as a source (not for any negative reason), yet they have been hammering the nail on the head, even as they did not say it.  Their part ‘the losers’ starts with an image of the Xbox with the text ‘I witnessed the most powerful console ever‘, yes, hiding behind a technical detail whilst there is no proper space to store it is always a bad idea and I was happy to call the Microsoft presence literally a ‘waste of space‘ in my previous E3 article, so far I stand by it. Consider that the most powerful console has only 50% of storage space compared to a MacBook pro, which cannot do that level of gaming. Consider (taken Seagate 2.5″ drives as an example). The shift from 1TB to 2TB is $30, the shift from 2TB to 3TB is an additional $60. I do acknowledge that the 3TB drive is 8mm thicker, yet the dimensions of the 1TB and 2TB are identical, so twice the size for a mere $30 more, this is what makes the Xbox a joke. Sony might do the same, yet with Sony, you get the run on how to change it and there are good guides to show how to replace the hard drive. Plenty of gamers shelled out the additional $120 to get the space, with Microsoft it is not an option.

Now for the hardware, the Switch showed what fun was like and it has the games and more coming to keep us all happy. Both Sony and Microsoft failed us a little there. Now Sony was more about games, which is good and they just released the PS4pro, so this is not an issue, whilst the way they did it shows long term commitment, which is what gamers like. Now we see a changing market with any PS4 next to a Nintendo switch and it is a good day for gaming. Another visible event is that some of the better Xbox One exclusives are now making their way to Sony, so whilst the Sony exclusives grow, the Xbox exclusives list is starting to shrink. In addition, although not confirmed, the consoles Sony vs Microsoft was at 2:1 in 2015, some sources now give this a 6:1 setting. The PS4 has gone through the roof, with sales now surpassing 60 million consoles, meaning that they have surpassed the PS3 and could surpass the PS2 sales by 2018. I think it is a stretch, but part of me hopes so. Part of me can go towards Steve Ballmer with an ‘I told you so‘ state of mind. The weird think is that neither Mattrick nor Ballmer are stupid, they are decently intelligent and the conclusions I got to did not take a rocket scientist, which beckons who is drawing their marching orders and why are they on some track to force people to push data towards the Azure cloud? Why endanger your console market in this way?

By the way, pretty much NONE of the E3 attending press took a decent look at that, even the Guardian avoided the storage issue, which is a question for another day.

The only questionable part in it was the Bethesda Creation club. I think that it is not just about making money. The developer gets a share (as I understood it), so those with really good mods could stand to make $1-2 per quality mod. Now, I am not much of a mod fan, but there are a few really good ones and I would not begrudge the maker those $2 if need be. It would in addition up the ante for mod creators to become even better, which is not a bad thing. Finally, in some respects, a game like Fallout 3 (PC) went from awesome to beyond legendary, just because of some mods. Now, it might not be for all and that is fair enough, yet if your perception of a 90% game becomes a 98% game through the additional $2-$4 because of 1-2 mods, is that such a bad thing? It is up to the gamer to decide that, but I believe that there is some validity in the option. The validity is for them to come with it and for us to embrace those professional mods, or to ignore them. It should not impact the foundation (the original game) you bought.

In the end Nintendo did what it always does, it did something different, which is why I did not care about the WiiU and the failure I personally see it to be, from those ashes came the Switch and it rocks, going to the edge can get you big failures and massive hits, and the Switch could become their greatest hit yet, good for Nintendo! Yet, in fairness, there are media that really do not agree with me and that is fine. International Business Times was all but creating a shrine in the honour of the Xbox One X. The BBC is on my team when it comes to the Nintendo. They raised the issue that mattered for Nintendo; can the 100M units of Wii be equalled? I believe so! Now the Wii was backward compatible with the GameCube, which was my reason for getting it on day one, beyond that the Wii was a nice machine, yet it lacked a decent array of games. They let me down a little there. The Switch is already surpassing the game titles in the first year, compared to Wii 3 years, so they have that in the bag. Nintendo has in equal measure a few new IP options which can really make the Switch a phenomenal success. So from those points of view, the option of surpassing the 100M consoles seems like an easy mark. Even if the economy does not take a turn for the better, choosing between a Switch at $450 without 4K beats the Xbox One X at $500 with 4K gaming by close to 300%. So by the end of 2018 the console offset ‘Sony:Nintendo:Microsoft’ could end up being ‘13:9:2’. This would show Microsoft on how they truly bet on the wrong marketing horses. So I admit, it is a speculative prediction, yet the sales numbers are not that far off and my expected Nintendo growth is not unrealistic. Now, in the off season, the Switch is adding roughly a million users per month. I expect that the European summer, the upcoming games and upcoming festivity days could set it to a total of 10 million by the end of the year. If the economy kicks off a little stronger, it could go to 12 million, which means that in one year the Switch will equal the total Xbox One systems in the field. As more games come to switch, the added active users will fuel growth even stronger. Good games and word of mouth tends to do that, don’t take my word for it, and just look at the PS2 and PS4.

Yet, what more can we expect with the E3 behind us? Both the critics and people gave Super Mario Odyssey best of show, which fuels growth even more and it won by a substantial margin. Assassins Creed Origin did not win on any console or PC, they all had a different winner which was nice to see. Super Mario Odyssey also became best platformer, which is not really that big a surprise and again There was no win for Assassins Creed, which when we consider the stages of completion of the different games not too bad a negative. Again Nintendo got the best title for Strategy game. In this case ‘Mario + Rabbids Kingdom Battle‘, so as the laurels are handed to Nintendo in several ways. IGN wasn’t the only one with a voice, Gamesradar saw another part my way, they to just announced Ubisoft as the winner of 2017. It was a fair call and two brand new IP’s definitely boosts the score for Ubisoft. Gamesradar also shows one element the others did not, the lack of Indie developers. In regards to the PlayStation and the fact that this month Elite Dangerous will make it to PS4 is actually a big thing, it is one of the three top space games and now on PS4. The second is the remastered RPG original System Shock. Nightdrive Studios has enhanced a true original and so far has been able to capture the original suspense that System Shock brought us. The third one is unconfirmed from sources not that reliable, yet if true, Unknown Worlds with their open world RPG Subnautica will make waves. I reckon that the last two might bring additional hype to the Switch if they ever adapt those two for Switch. Games radar concurs; Nintendo is a winner, Xbox a loser. It is a harsh world for Microsoft and they might want to seriously consider in 2017 what their intent truly is, but as stated now the 4K and ‘strongest console ever‘ marketing gets them some media, yet in the end they poisoned their own customer base.

I think in the end it was a great E3, partially because Ubisoft and Nintendo amazed me with actual new stuff, which is what gets any gamer to the station ;-). I feel less negative about Bethesda than some of the ‘professional’ critics. Not sure why so negative as Bethesda delivered plenty, just some of their focus is VR, which might make them the legendary winner next year. In addition their new power puncher Prey was released a month before the E3, so there is that to consider. Finally there are more DLC’s coming for those games many love, so overall, we should not be too grumpy towards Bethesda.

So as the dust settles, we now get to wait another year for the next presentation of marketed hype by all the players. I for one will be very interested to see my own projection of Nintendo upcoming future. They have 5 optional new IP’s at their back and call and if they get 3 up and running, the run for Switch will grow more than even I predict which would be nice too. In the end, I am happy that the Nintendo message ‘it is about fun‘ that got through stronger than the need for 4K, which gives hope for gamers all over the world. For me personally, the moment it is a financial option, the Switch come in, perhaps a trade for my Xbox? I do hope that Nintendo will give us Pikmin, and Metroid Prime one and two, because those are the games I miss, and I will happily buy them again for the Switch, good gaming is just that, more good!

 

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