Rumor: Lair Developer Trims Half of Work Force

By Earnest Cavalli EmailDecember 16, 2008 | 3:04:43 PMCategories: Business Matters  

Lair

Though a recent blog post by Factor 5 artist Sam Baker detailing the financial woes of the Lair developer was quickly removed from the 'net, Edge cites a "well-placed source" corroborating the artist's claims and then some.

In his missive, Baker detailed a host of recent problems at the firm, claiming that "workers hadn't been paid for weeks, health care was nixed and a project eight months deep had been canned." When the gaming press began reporting on Baker's words, the artist removed both the post and the entire archive of his work blog.

Yesterday, Edge received word from an unnamed source that not only were Baker's claims true, but that the company laid off 37 of its employees as of Friday, December 12. As Factor 5 is a relatively small firm, such layoffs would leave only 38 workers employed at the company's San Rafael, California studio.

Though Baker has since resigned from Factor 5 following the furor over his public outing of his employer's woes, Edge's mysterious source also claims that the company is considering suing Baker, presumably for violating the industry-standard non-disclosure agreement he no doubt signed as a condition of his employment.

Our attempts to contact Factor 5 representatives for clarification on the issue have been met with a typical "no comment" response.

Image courtesy Factor 5

Source: Factor 5 Cuts 37 [Edge]


Midway Cuts Jobs, Cancels Games to Save Cash

By Earnest Cavalli EmailDecember 16, 2008 | 1:39:49 PMCategories: Business Matters  

Mkdcu

In an effort to salvage the firm's future, Midway Games has revealed a cost-cutting initiative that will see a quarter of the company's employees laid off and a number of in-development titles canceled, reports Gamasutra.

Both Midway Chicago (creators of the above-pictured Mortal Kombat vs DC Universe) and San Diego will see sizable layoffs, and the company's Austin, Texas development branch -- most famous for the recent Blacksite: Area 51 -- will be shuttered.

The specific games on the chopping block are all titles that had yet to be revealed to the public, and are characterized by the company as "non-core."

"These initiatives, along with the other steps we have taken this year, are a response to the specific challenges we are facing at Midway, many of which have been amplified by the current economic conditions," wrote CEO Matt Booty.

Image courtesy Midway

Midway Lays Off 25 Percent, Closes Austin Studio, Kills Projects [Gamasutra] 


Brutal Legend Finds A Home At Electronic Arts

By Nate Ralph EmailDecember 12, 2008 | 2:40:00 PMCategories: Business Matters, Console Games  

Brutal_legend

Tim Schaefer's Brutal Legend has officially found a home, under the EA Partners wing of Electronic Arts.

The game is a third person action/adventure, starring Jack Black as heavy metal enthusiast Eddie Riggs. He's a roadie, who is magically transported to an alternate history where demons, goths, and glam rockers have taken over the world. As it's brought to us by those wondrously twisted minds at Double Fine productions (creators of the fantastic Psychonauts), I'll risk disappointment by getting overwhelmingly giddy with anticipation for this one.

The game was caught in bureaucratic limbo for quite some time, after Activision Blizzard declined to publish it -- presumably because Brutal Legend lacks that certain je ne sais quoi that allows for microtransactions, expansion packs, and countless derivative sequels. But as Tim Schaefer of Double Fine productions so eloquently states, "I think it's clear that this game, like Metal itself, can't be killed."

Brutal Legend will be arriving for the PlayStation 3 and Xbox 360 sometime in the fall of 2009.

Image courtesy Double Fine Productions

Double Fine And EA Turn It Up To 11 [Double Fine]

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November Game Sales: Nintendo Sells 2 Million Wiis

By Chris Kohler EmailDecember 11, 2008 | 6:52:53 PMCategories: Business Matters  

Reaverattack

The giant mudhole that Nintendo is stomping into its competition is just getting deeper this month: The NPD Group said Thursday that over 2 million Wii consoles were sold in the U.S. in November.

That's a gargantuan figure. It's well above and beyond what analysts predicted -- Wedbush Morgan Securities had sales pegged at 1.4 million. It's nearly three times what Nintendo sold in October. It's a record -- NPD says that it is the most consoles ever sold in the month of November since it started tracking monthly data in 2001.

And of course it's miles ahead of the competition, as evidenced by the rankings:

  1. Wii -- 2,040,000
  2. Nintendo DS -- 1,570,000
  3. Xbox 360 -- 836,000
  4. PSP -- 421,000
  5. PlayStation 3 -- 378,000
  6. PlayStation 2 -- 206,000

Continue reading "November Game Sales: Nintendo Sells 2 Million Wiis" »


Gears of War 2 Tops 3 Million Sold

By Earnest Cavalli EmailDecember 09, 2008 | 3:08:19 PMCategories: Business Matters  

Gears21

Only one month after Gears of War 2 hit store shelves, the action title has sold more than 3 million copies worldwide.

"Microsoft confirmed to me this afternoon that Gears of War 2 sell-through surpassed 3 million units as of last week," Rein recently told Eurogamer.

As the original Gears of War spent 10 weeks on store shelves before reaching the 3 million mark, it's easy to see Rein's announcement as definitive proof that Gears 2 is a much larger blockbuster than the original, but it's important to remember that the original was a new, untested franchise.

It's always easier to sell people a familiar sequel than a brand new gaming experience.

Image courtesy Epic Games

Gears of War 2 sales hit 3 million mark [Eurogamer]


Atari Parent Buys Star Trek Online Maker Cryptic

By Nate Ralph EmailDecember 09, 2008 | 2:29:00 PMCategories: Business Matters  

Champions_screen

Infogrames, parent company of Atari, has announced the purchase of Cryptic Studios, bringing the developers of the popular City of Heroes and City of Villains MMO games under the wing of Phil Harrison & Co.

Star Trek Online, the upcoming PC and Xbox 360 Champions Online and another unannounced game are all in development at Cryptic.

Atari will also receive access to Cryptic's proprietary development tools and server architecture, helping them usher in that nifty online gaming vision Harrison is always going on about.

Cryptic recently hired Bill Roper, former CEO of Flagship Studios, to serve as design director on Champions.

Though this move is consistent with Atari's goals, there's definitely quite a bit of risk involved. While Star Trek is a popular franchise, how well will it translate into the MMO space? And haven't we already tried the cross-platform thing with Shadowrun, and found it lacking? Is yet another MMO about superheroes and villains going to change all that?

Image courtesy Cryptic Studios

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Nintendo Bullish After Big Week of Wii Sales

By Earnest Cavalli EmailDecember 08, 2008 | 3:40:48 PMCategories: Business Matters  

Money

Nintendo has a decidedly rosy outlook on the U.S. economic slump, owing almost certainly to the 800,000 Wii consoles sold during the last week of November.

That 800,000 console figure, revealed by Nintendo president Satoru Iwata in an interview with Reuters, is a more than 100 percent increase in sales over the same period of the previous year.

"When the economy is strong, people tend to buy three things from the top of their wish list. But when things are bad, people often buy only the first thing on their list," Iwata told Reuters. "Fortunately for us a lot of shoppers put our products at the top of their list."

Additionally, Iwata revealed that sales of the Nintendo DS were "up about 20 percent" over the same time period.

Image: jenn_jenn/Flickr

INTERVIEW-Nintendo President says sales of Wii, DS strong [Reuters]


Fable II Designer Joins Splash Damage

By Earnest Cavalli EmailDecember 08, 2008 | 2:18:30 PMCategories: Business Matters  

Fable2evil

Splash Damage, a game developer most famous for the Enemy Territory series of id Software shooters, has appointed Richard Ham as their new game director, reports Gamasutra.

Previously, Ham was employed by Lionhead Studios where he was lead designer on the blockbuster roleplaying game Fable II (pictured above).

Splash Damage has enlisted Ham to head up a "new multiplatform title being developed in partnership with Fallout 3 studio Bethesda Softworks," according to Gamasutra.

"We have spent months searching for the right person to lead Splash Damage's new title creatively, and Richard is an exact fit," said Splash Damage owner Paul Wedgwood.

Image courtesy Lionhead Studios

Fable II Lead Designer Takes Creative Director Role At Splash Damage [Gamasutra]


NCsoft Leaves Entertainment Software Association

By Earnest Cavalli EmailDecember 08, 2008 | 1:07:49 PMCategories: Business Matters  

Tabularasa

Update: NCsoft's decision to leave the ESA "was not remotely financially motivated," according to an email from NCsoft's Janna Bureson to Edge.

"There have been many changes in the gaming industry over the past couple of years and, like other developers and publishers, we have decided to wait to see how related industry events and organizations further develop before rejoining. We will be reviewing our membership status on an annual basis," Bureson added.

MMO mega-publisher NCsoft has left the Entertainment Software Association and like Lucasarts and Activision before them, little official information has been offered to explain the firm's departure.

"We can confirm that NCsoft decided not to renew its ESA membership," ESA senior vice president Rich Taylor told GamePolitics. "We respect their decision and remain committed to serving the public affairs needs of the computer and video game industry."

GamePolitics posits the idea that leaving the ESA was a simple cost cutting measure for NCsoft, following the firm's recent decision to shutter Tabula Rasa (pictured above). As the ESA collects large membership fees from all members, the site believes NCsoft would simply prefer to keep their cash.

Image courtesy NCsoft

Has NC Interactive Left the ESA? [GamePolitics]

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Market Watch: Activision CEO Among 2008's Best

By Nate Ralph EmailDecember 05, 2008 | 1:46:00 PMCategories: Business Matters  

Koticksmall The pundits at Market Watch have spoken, and Activision Blizzard CEO Bobby Kotick was named as one of the finalists for the title of CEO of the Year.

Activision's wanton exploitation of video game franchises might tick us off, but the key thing to remember here is that the man isn't beholden to us -- he's at the mercy of shareholders. And as far as the shareholders are concerned, anything that boosts the bottom line is good business.

Kotick shared his all-too-familiar business plan with Market Watch: "If you constantly think about building an institutional business with lasting value, ultimately the market rewards you and your shareholders." While that mantra meant bilking gamers whenever an opportunity arose, and driving the Tony Hawk franchise into the ground (with the unending iterations of Guitar Hero and Call of Duty looming near that particular grave), the end result was unparalleled success, and the formation of the world's largest game publisher, Activision Blizzard.

While we might not like what he's done with the place, the house that Kotick built will be standing for a long time. But what does this success mean for the rest of the video game industry? My advice: Grudgingly salute his intelligence and business savvy, but think twice before dabbling in microtransactions, or plunking down pre-order money for yet another sequel.

Image courtesy Activision

Bobby Kotick Changes The Game At Activision [Market Watch]


South Korean Gov't to Aid Games Industry

By Earnest Cavalli EmailDecember 04, 2008 | 3:56:39 PMCategories: Business Matters  

Koreaarcade

The government in South Korea is a big fan of the economic benefits of a thriving gaming industry -- so much so that the politicos have promised the gaming groups a huge financial infusion over the next few years.

By 2012 the gaming industry will receive 350 billion Won ($237 million USD) from the government, according to Korean news site Digital Chonsuilbo. Additionally, the government has vowed to expand exports of games to 5 trillion Won ($3.38 billion USD) per year.

This infusion of Won seems to be a reward for the unexpected success enjoyed by S. Korea's gaming industry. By reaching the billion-dollar export mark two years prior to the initial 2010 goal, the gaming industry has proven itself a "future growth engine."

Image: d'n'c/Flickr

Gov't Betting on Computer Game Industry [Digital Chonsuilbo]


Massive To Bring Ads To Battle.net, Activision Games

By Nate Ralph EmailDecember 03, 2008 | 10:56:00 PMCategories: Business Matters  

Massiveracing

Massive, the Microsoft-owned in-game advertising firm, has announced a multi-year agreement with Activision Blizzard that will cover advertising for a number of Xbox 360 and PC games as well as advertisements on Blizzard's Battle.net service.

On the Activision side, Market Watch is reporting that Massive has inked an 18-title deal that will include games like Guitar Hero World Tour and Quantom of Solace.

And while there won't be any in-game ads in Blizzard titles, the Battle.net service will soon be home to a slew of new advertisements.

Continue reading "Massive To Bring Ads To Battle.net, Activision Games" »


Valve Unveils Half-Life, Counter-Strike Sales Figures

By Earnest Cavalli EmailDecember 03, 2008 | 2:11:07 PMCategories: Business Matters  

Hl2gordon

Valve, creator of such popular titles as Portal, Half-Life and the recent Left 4 Dead, recently granted Game Developer magazine a list of lifetime sales data for their most popular titles.

The list, reprinted by Gamasutra, demonstrates succinctly just how successful Valve has been over the years. The original Half-Life alone has moved nearly 10 million copies -- and that's only including retail sales.

Valve remains tight-lipped on exactly how many copies their digital distribution platform, dubbed Steam, has sold over the last few years of its existence.

Though the Gamasutra piece examines the numbers and offers commentary on their significance, Shacknews was kind enough to boil the figures down to a simple bullet list. You can find the details below.

Continue reading "Valve Unveils Half-Life, Counter-Strike Sales Figures" »


Consumers Warned Against Army of Two's Homoeroticism

By Earnest Cavalli EmailDecember 03, 2008 | 11:19:44 AMCategories: Business Matters  

Armyoftwo

In its 2008 edition of the 30 "most offensive" games on retail shelves, Christian investment firm The Timothy Plan warn consumers against purchasing Electronic Arts' Army of Two, citing the game's "homosexual encounters," reports GamePolitics.

"Somewhat homo-erotic undertones between the two main characters are present," reads the list's description of the game.

Additionally, the list warns against World of Warcraft's and Halo 3's high "addiction" rating, Devil May Cry 4's "demonic" references, and the violence, foul language and prostitution found in Grand Theft Auto IV.

"Many, if not most, parents who buy their kids video games really don't know the extent of sex and violence imbedded in them," says Plan president Art Ally. "I believe, if parents would take a moment to look at the report we've created, their game selections would be quite different."

Image courtesy EA

"Morally Responsible" Investment Firm Goes Gay Bashing in Games [GamePolitics]


Xbox 360 Topped PS3 on Black Friday, Says Microsoft

By Earnest Cavalli EmailDecember 02, 2008 | 12:23:46 PMCategories: Business Matters  

Money

Sales of the Xbox 360 and its games trumped those of Sony's PlayStation 3 during Black Friday, assuming you believe Microsoft's press release.

System sales for the Xbox 360 saw a 25 percent increase over Black Friday 2007 and the console outsold the PlayStation 3 by a 3:1 ratio, the official press release claims.

Additionally, the release trumpets the Xbox 360's "highest game attach rate of any console" though while it cites "key Microsoft titles, such as Gears of War 2, Fable II, and Lips" and claims they are on a "record pace" it fails to offer firm sales numbers for any of them.

I wouldn't go so far as to say Microsoft is lying, but I wouldn't be surprised to see a similar release from Sony tomorrow that paints the same figures in an entirely different light.

Image: jenn_jenn/Flickr


Lay Offs Won't Affect Conan, Says Funcom

By Earnest Cavalli EmailDecember 01, 2008 | 1:52:14 PMCategories: Business Matters  

Aocreview2

Despite a rash of lay-offs at Age of Conan developer Funcom, the troubled MMO will remain unaffected, claims product manager Erling Ellingsen.

"Our aim is for this to not affect development of ‘Age of Conan,’ or any of our other games, at all," Ellingsen told MTV's Multiplayer Blog.

"We are sticking firmly to our plans. The Xbox 360 version of the game is still in production, but as before we are not committing to any specific dates."

Image courtesy Funcom

Funcom: Staffing Cuts Won’t Affect ‘Age of Conan,’ Xbox 360 Version Still in Development [MTV Multiplayer]

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Majority of Midway Games Sold for $100,000

By Earnest Cavalli EmailDecember 01, 2008 | 12:39:32 PMCategories: Business Matters  

Mkdcu

Sumner Redstone has sold his controlling stake in Mortal Kombat publisher Midway Games for the paltry sum of $100,000 in an effort to reduce the debt of his National Amusements company, reports Reuters.

Mark Thomas, a private investor, purchased the 87 percent stake in the publisher for roughly $0.0012 per share. As a condition of the bargain price he received on the transaction, Thomas has agreed to assume "$70 million of senior secured and unsecured debt."

Though this sale marks a huge financial loss for National Amusements, the tax benefit from selling the firm is quite significant and should aid the company in repaying its $1.6 billion in outstanding debt.

Image courtesy Midway Games

Redstone sells Midway Games to ease debt: report [Reuters]

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Wii Tops eBay's Black Friday Searches

By Earnest Cavalli EmailDecember 01, 2008 | 12:01:15 PMCategories: Business Matters  

Wiilogo The weekend following Thanksgiving is traditionally the most lucrative sales period of the year, and this year Nintendo's Wii was the most sought after item, if eBay's search results are anything to go by.

The internet auction giant has revealed figures that show the console dominating consumer purchasing plans. 3,171 systems were sold during the course of Black Friday and the average sales price for the Wii throughout the weekend was $350 -- $100 more than Nintendo's suggested retail price.

Nintendo's electronic fitness device Wii Fit also saw a sizable following during the retail blitz, moving 1,059 units for an average price of $140 -- $50 greater than its retail price tag.

Image: Ian Mutoo/Flickr


Show Your Allegiance With A PlayStation Visa Card

By Nate Ralph EmailNovember 25, 2008 | 3:31:00 PMCategories: Business Matters  

Playstation_visa_2 The mere existence of a PlayStation Visa card is just one of the many reasons I love the gaming industry: We'd never let something as banal as an economic implosion get in the way of enjoying our passions. 

Nothing says fiscal responsibility like a brand new credit card with a PlayStation logo proudly emblazoned on the front. Using it will net you reward points to spend on PlayStation and Sony products, in addition to offering fans "a new way to show off their PlayStation pride." Right.

As an added bonus, if you apply for one by December 31, you'll be able to save $150 on a PlayStation 3. Which actually isn't such a bad deal, if you're okay with finance charges, or really love Sony gear.

Image courtesy Sony

Get Your Own PlayStation Credit Card [PlayStation.Blog]


Funcom Confirms Mass Layoffs

By Earnest Cavalli EmailNovember 24, 2008 | 1:51:30 PMCategories: Business Matters  

Aocreview2

It seems that this weekend's rumors of massive layoffs in Funcom's U.S. division are true.

Though the email confirmation issued by the firm failed to specify how many employees were let go (some reports hold that up to 70 percent of the group's American workers were dumped), it confirmed the rumors, saying "we did have some staffing cuts at Funcom this week as well as new positions opening in the organization as part of our ongoing cost based efficiency and performance initiatives that are vital to any business."

There is no official word on why Funcom has undergone such restructuring, though I have to assume it is at least, in part, due to the less-than-stellar performance of Age of Conan (pictured above) post-launch.

Image courtesy Funcom

Funcom Layoff Addendum: Official Comment from Funcom [Ten Ton Hammer]

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See more Game | Life


We have had rumble since launch

EDITOR: Chris Kohler |
CONTRIBUTOR: Earnest Cavalli |
CONTRIBUTOR: Nate Ralph |
WIRED MAG: Chris Baker

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