Showing posts with label PS4. Show all posts
Showing posts with label PS4. Show all posts

2019/02/22

Publishers fireing people all over

You heard the news. Activision fires 800 people despite best year ever in terms of revenue. Arena.net, the operator of Guildwars, seems to get large layoffs. EA will fire a lot of people from their Australian studio (For Americans: that's near the Hobbit place, not the one in the Alps).

Longtime readers of my blog know why this happens now. Others can read my 6-year-old entries here:

https://teut.blogspot.com/2012/11/transition-years.html

https://teut.blogspot.com/2014/03/transition-years.html

Let's take the Activision case. Why fire 800 people when you had a record year? The reason is, you don't fire people due to the current year's results, but what you see in your forecast of the next. If you look at Activision's portfolio for 2019/2020 there is a large gap of original titles. Even Blizzard, part of Activision, said there is no new Blizzard game coming for a while. So the next one or two years will look bleak for Activision. That's why you optimize your company and fire the bottom 10%.

I am not defending this, I am just explaining. The one thing you can blame Activision is that they knew this is coming, its poor planning (and letting Bungie leave, wtf?).

Activision needs to invest their best teams into the next console generation. As the current one will drop in revenue in terms of software and the new one won't do much at first that gap is what we call transition years. EA is very experienced in this and already cut off workforce last year and will continue this year. If you google back into 2012 you will notice the same happened.

This transition year might not be as bad as the previous ones though as the rumored backward compatibility of the next generation, the Switch and the mobile market might buffer some of the previous revenue losses.

2017/11/14

MTX & Loot Boxes - Discussion still going on

As written in my last post the Loot box controversy is still active - and getting worse. It is interesting to follow the press, customers outrage, and publishers answers. Battlefront II and their loot box system even created the most downvoted thread ever on Reddit.

The main reason is that players paying $60+ for an AAA title do not feel eager to be forced to pay via MTX to gain significant important items or unlocks in the game. So EA responded by lowering the needed "grind" to unlock important characters by 75%.

See, that's where the problem lies. Users paid upfront and expect the complete game. They don't want to pay to unlock content (and let's not forget day 1 DLC's). The rule of F2P that content has to be free all the time was violated somewhat.  That's one point, that they didn't implement the Loot Boxes right.

My second point is one I said often during my talks when Loot Boxes came up, like here:


If you add Loot Boxes as MTX you admit your normal monetization system failed - unless your core mechanic of the game is Loot Boxes. Like Hearthstone. Clash Royale. Or Puzzle & Dragons. You will notice that these games never came up during those discussions. Or why do Overwatch Lootboxes do not spawn that controversy? Think about it.

Basically, EA admitted their AAA retail flat fee model of $60 for an AAA game is declining, isn't making enough money to return a sizable profit so they add MTX. 

Many games did this but EA of course brutally forced the MTX system on their game going over the top - while other games do it more wisely - as you should do too. Check out GTA V and their online Revenue, or even Assassins Creed IV Black Flag where I was part of the design team of the MTX system. They never had the backlash EA is feeling. 

There are signs on the horizon that the old AAA model is dying. PC revenue is rising but most of that us on the F2P or MTX side, the AAA revenue is not growing compared to previous years. Even console $60 sales are stagnant to previous years or growth curves of previous generations. 

It has come so far that AAA publishers contact me to teach them how to implement MTX correctly so the community accept it and it still raises revenue.

So AAA games feverishly try to adapt f2p methods to raise their profits to cover the ever-increasing development costs - and most of these teams never worked in F2p. They need help. Call me if you need to educate your teams. You can add MTX to your AAA title which players actually love to engage in. Loot Boxes aren't the answer. Believe me. Been there, done that.

2016/12/28

What 2017 will bring to the game industry

2016 was harsh. Many studios closed. Some hit games didn't sell. But overall the industry grew as always. Superdata claims we nearly reached $100b in 2016.

Meanwhile China became the largest gaming market of the world thanks to mobile. Talking mobile: it is now the largest segment of our industry. As forecasted by so many.

From my experience and point of view 2017 will be a hard year. In fact it will be more difficult than this year. For various reasons.

First some AAA IP's won't sell as good as they were, as already shown in 2016. The primary reasons are that gamers spend more time in less games and the competition in terms of price. f2p taking over even more market share does further impact the $60 AAA game market.

And of course mobile. Mobile will continue to grow. We will see new games entering the top 10 which do more and more revenue each year. The PC won't suffer, the consoles neither, but their growth will slow down. Nothing major but it will have an impact on studios relying on the old publisher model - meaning more studios will cease to exist.

We also will see a more dramatic impact on the crowded market space. Too many titles, not enough time to play them all. Remember? We will spend more time in less games. So the only way combating this is to bind your fanbase to your game - this means you must update your game and service it beyond its lifecycle. Games as a service. Invented by MMO RPG's now a must have for all games.

Update: read this:
http://steamed.kotaku.com/none-of-2016s-most-played-steam-games-came-out-in-2016-1791048654

We will see an invasion of non gaming IP's to the mobile space as the desperate publishers try to fight high acquisition costs with using foreign IP's. This won't work for most of them as we have so often experienced in the past: the 80's, 90's, 2000's all had those waves and most publishers failed with them unless they can afford the mega IP's - which they can't. If they afford it they won't have enough money left for the game - meaning they ship shitty games on large IP's - failing. We have seen that as well in the past.

VR will continue to be a toy - not a market (yet). So investors will shy away, studios will close. VR will be in a crisis waiting to be revived.

The Switch will ship and sell ok. Nintendo's IPs will be strong, and depending on Nintendos policy to sign up other developers the console will not rival the PS4 or XBox, it will rival Nintendo's old 3DS system, cutting their own market share.

Consoles will drop in price for Christmas 2017 and for the first time go under $199 - embracing new markets. But those new customers won't buy $60+ software, they will buy already discounted or used software - as we have seen in the past when that happens. Still the market will grow and reach its peak - and drop after that staring 2018.

We will see a new creative push from the III side. What is III? Triple Indie, from pro's who left AAA companies and going independent we will see a wave of really good titles created for lower budgets and selling enough to keep those new studios alive.

This means we see a remix of studios. Old ones go, new ones come - and in large numbers. We need to learn all those new studio names otherwise we lose track - so many will be there. All over the world.



2014/01/13

The WiiU CPU sucks - NOT

A recent anonymous post is making its rounds on social networks from a disgruntled developer:

http://www.eurogamer.net/articles/digitalfoundry-2014-secret-developers-wii-u-the-inside-story

While its worth reading make note that you can replace the word "WiiU" with any console in the past. Working on new consoles sucks. Launches are always messy. Some remember that Xbox development kits where Apple Macintoshes. Imagine that.

The point about the CPU clock speeds in the article is a bit extreme and wrong. Recent trends basically move more and more work into the GPU of your computer.

Wolfgang Engel, the "Shader God" of this industry (among others responsible for Lara Crofts Hair in Tomb Raider), explained it to me like this:

"GPUs move into the direction of CPUs since 2007. They become more general purpose. Fortunately they have a multi-core / multi-threading model that is very efficient and much easier to use.
On a fundamental level the difference between a CPU and GPU is the type of data they work on. GPUs work well on lots of similar "small" data sets while CPUs can work on more generic data. It turns out that games have a lot of those small data sets and that in general they became more common over the last 20 years with large amounts of data generated by computers.
So what we are seeing is that the importance of CPUs decreases in game consoles and the importance of GPUs increase. GPUs take over more and more CPU tasks. 

This is why the XBOX One and PS4 have -compared to the PC market- rather slow CPUs but quite fast GPUs."

No reason to complain about low clock speeds of your CPU, simply learn proper shader language and do your work there. And that is where the major difference lies from the last generation of consoles: when the PS3 and Xbox 360 was designed the GPU's weren't developed with that general purpose architecture. Now they are.

Sidenote: as all three consoles use AMD chips as GPU's they basically define the GPU and Shader standard to come. I wouldn't buy nVidia shares now...


Edit: and more developers speak out:

http://nintendoenthusiast.com/news/3rd-party-wii-u-developers-speak/

2014/01/12

Microsoft is losing one advantage on Xbox One

Microsoft is stupid sometimes. Well maybe more often than we like. Microsoft introduced the internet to consoles. The Xbox was a good start and they made it really good on the Xbox 360. Yes, they screwed up their interface and shop over time, but still it was much better compared to their counterparts Sony or Nintendo.

Why is this? My explanation is that both Nintendo and Sony are Japanese and in Japan the Internet never took off as big as in the western world. Online games never played a major role. The reason I guess is that PC's aren't used at home much due to space restrictions. Japanese people access the internet through their mobile phone. So they had all sorts of online services much sooner than we had. They already had full internet functions when UMTS was still in development in the western world.

If you look at how Nintendo handles the internet it can't get any worse. You add friends by using cryptic numbers like 435132. They claim to protect their kids customers. Sure. That can't excuse the bad online experiences you have with their club Nintendo or their eShop. If you ever tried to buy software there, recover your password or even link new devices you know what I am talking about. Abysmal user experiences.

Sony had the same problem for a long time but patched up their systems over time. Still it is odd that when you login the PlayStation Network on your PC and click on an advertised title to buy it you are redirected to their shop and need to LOGIN AGAIN. Besides only accepting credit cards (no point cards available) they have a decent collection of movies and TV series on top of their game offers.

The PS4 is slightly better in this regard but you see the Japanese style Internet of the 2000's working on all ends. I was surprised that Sony has the lead in live streaming over TwichTV on the PS4 while the Xbone feels like a closed system currently.

And that is my point: Microsoft is losing their big advantage they once had: The internet, online games, connectivity. And Sony is catching up fast. While Nintendo still doesn't understand how the internet works Sony is implementing features fast. Besides Twitch they offer now streaming services for PS3 games through their GaiKai aquisition. If that works well or not doesn't matter, what matters is that Microsoft must speed up their operating software development and store offers, otherwise they will continue to lose against Sony.


2014/01/11

Happy New Year!

Welcome to 2014. It will be an important year as the last generation of consoles will start to fade out while the new one takes over.

This Christmas will be the time of the new generation. The last hurrah of the last gen consoles will be in its software. Some good games are still to come.

The problem however is numbers. The last gen won't sell the millions of games it used to be simply because some users migrated to the new one, some users stored their consoles away or they simply break (remember the last gen is particularly prone to this).

The next gen won't have the numbers yet. GTA V sold zillions on a market with 140+ million consoles. The recent sales numbers of Xbone + PS4 are close to 8 million in total. If you extrapolate this to Christmas we might end up with maybe 24 million end of this year (both Xbone + PS4). Thats ca. 15% of the last gen market so publishers won't expect more than 20% of the revenues counting the effect in that there aren't many games yet and people buy everything they can get their hands on.

So the revenues of all publishers will be DOWN this and the next fiscal year (ending March 2015). Still it is an important step as afterwards we will end up with a better and healthier console market simply for some of these factors:

The PS4 and Xbone embraces online much better than the last gen. This will help smaller titles to be distributed online and make smaller console teams viable.

This will also allow MMO's to migrate to the consoles helping with long term revenue and retention for these titles. This include f2p titles (and first ones are very successful like Warframe)

More importantly the architecture of both consoles are very PC like as they use PC components. This will make cross platform development much cheaper and easier helping return of investment, lessening the risk of large scale AAA game development like Assassins Creed IV or GTA V was. You can basically develop for 2 consoles and PC at once without losing too much quality. The last gen had problems due to their custom architecture. Hint: this will push PC gaming a lot as a side effect.

So I expect further consolidation in 2014 until more money is being made on the markets (including mobile, online) which will have an investment effect in 2015+ soonest, maybe even as late as 2016. In 2016 we will be back in a market of 100m+ consoles making even more money than this gen. Remember this kind of investment has a lag of one fiscal year.

What about the other markets? Mobile will still grow (and is still growing in case you doubt it) but it is getting rather populated. The market is swamped with clones of games already existing making it even worse for new innovative games to be noticed. I think this is only a temporary phase until the markets mature and both developers and providers find ways to offer better visibility and customer acquisition. Signs of this are already there.

What about me? I will have public appearances in Helsinki at one of their Universities teaching f2p:

http://avp.aalto.fi/courses/games

I will also attend Casual Connect in Amsterdam participating in the Evil Game Design Challenge and talking about WoT:

http://europe.casualconnect.org/

Next I will attend Game Developers conference in SF analyzing the monetisation of World of Tanks:

http://www.gdconf.com/

Finally I will be in Berlin for Quo Vadis of course, ranting about our industry and giving German developers a glimpse what awaits them;

http://die-entwicklerkonferenz.de/

See you on one of these events or on this blog. Thank you for your loyalty and listening to my rants!

2013/08/29

Gamescom is behind us

Gamescom is exciting for me as I meet all industry friends easily within one location. I rarely go to that show to check out new games as websites do a much better job giving me all information I need (check out HD Titanfall trailers, or Watchdogs, even better, awesome!)

But some players need to wait for hours to peek at a new game for 5 minutes. Wtf. People. Why does Gamescom use that system to filter people (I know age rating). There were 340.000 visitors this year. Awesome record!

But less than 5000 can be jiggled through your lanes waiting for the games presentation, assuming you can get 50 people per 30 minute presentation all day long.

That is a huge price you pay for your booth to get only a fraction of the audience. 1.7%. One point seven! It is time to rethink the game show concept I believe.

Source: http://www.gamezone.de

2013/06/06

Bad opinion II

So it continues. It comes around every couple of years that industry professionals claim it is a good idea for Nintendo to get rid of their hardware business and write their games for all platforms. Mario on PS4, iPad etc. They think it is a good idea.

Some things they forget:

Nintendo is a Japanese company. They are patient as an elephant. They don't care if they lost one generation of consoles, hey, its just 5 years.

Nintendo is a rich company. Valued billions, having billions in cash reserve. In fact it is one of the richest companies of Japan.

Mario, Zelda, Pokemon etc are the high value IP's which cause people to buy Nintendo hardware.

Nintendo always innovated the consoles, controllers and systems with Sony & MS following their lead.

Compared to Sony and Microsoft Entertainment Nintendo had profitable console generations. MS did not. Sony did not.

Why should they bother about other platforms? Nintendo often enough stated that they do not see MS or Sony as competitors. They merely see bicycles, girls and TV as competition as they steal entertainment time from their consumers.

German article on Krawall.de mirroring my opinion:
http://www.krawall.de/web/Wii_U/special/id,65290/

And a video / Statement with the same position:
http://www.gametrailers.com/videos/uujebd/the-final-bosman-what-about-nintendo-



2013/05/31

In transition years there is no limit on bad opinions

The industry is in chaos, no one knows where it goes, everyone speculates and meanwhile the smartphone and tablet market opens up an entirely new segment.

Lets take 2 examples:

http://venturebeat.com/2013/05/31/forget-the-xbox-one-and-ps-4-the-most-powerful-gaming-device-is-your-pc/

Yes, your PC is faster than the next gen. Is it? Its not, simply as the number nerds forgot that on the next gen you can access the hardware directly, on the PC you can't. The layers of software between the games and the hardware is so thick to be compatible with 30 years old history that it slows down your games.

On next gen that is not the case. Ask yourself why most XBox 360 titles still look better than the most recent PC titles. That's why.

My favourite of the week is however this one: http://www.gameinformer.com/b/news/archive/2013/05/30/take-two-ceo-talks-mmos-next-gen-gta-v-and-zombies.aspx

Oh boy. MMO's don't work in USA. Thats what he said. Thats why he partners with TenCent for Asia, that's it. No MMO works in USA. I had to read that twice.

He also focusses in Asia on MMO's where 10-20 are successful. What a wrong numbers game. Does he know that in Asia they release like a new MMO per week?

But it gets better!

He believes the rental problem on console games only exists in the first 8 weeks of new games. Really. Did he ever visit a games rental store?

If I owned Take2 shares I would sell now. Or wait, no, I would sell after GTA V release.

2013/05/29

June 10th 2013 will be remembered

June 10th will be remembered as the day which changed our (games) industry. June 10th is the day where the key press conference are on E3. Big announcements will be made by Sony and Microsoft for their new consoles.

But.

Apple makes another keynote on June 10th as well. Deliberately placed to compete with the important gaming conference. Readers take note. I warned you.

June 10th 2013. Not a nice date to remember. 06.10.2013 (US) or 10.06.2013. 100613. 061013. Doesn't look nice.

Here is what else happened June 10th in our history: http://www.historyorb.com/day/june/10

2013/05/23

Sony share value during XBox One presentation

Without words:


XBox One Big Brother is watching you

Many things have been said about the epic fail of Microsoft's presentation of their XBox One (and the bad name), but this here basically cuts my interest to buy one in half:

http://www.extremetech.com/gaming/139706-microsofts-new-kinect-patent-goes-big-brother-will-spy-on-you-for-the-mpaa

Yes, this is really a plan. Do you really want Microsoft watching your living room. Really?


2013/05/18

Nintendo - again and again

With each transition year the same discussions appear generation after generation - and I can't really hear it anymore: Nintendo is in deep shit and should stop making consoles - instead they should release their core IP's like Mario & Zelda on all other platforms.

WTF.

This is the worst decision they could make. The sole existence of that argument proves that Nintendo should not do it: if you want to play their great games then buy their hardware.

And Nintendo still builds the best console hardware. Microsofts XBox is louder than a vacuum cleaner and red circles all the time. The PS3 is huge, can't be stacked and its only advantage is the Blue Ray.

Nintendo has one weakness they need to learn fast: online. That's where Sony and their PS4 learned very fast - the XBox paved the way but Microsoft screwed it up.

Let's see what may 21st will bring when Microsoft spills their beans.

Only one ting is clear: Nintendo, being 125+ years old, having a market cap others are envious about - has patience like an elephant. If this generation isn't theirs then it might be the next.

NEVER underestimate Nintendo!

2013/04/07

I was a huge Sony fan

In my younger years I was a huge Sony fan. In the time of Hifi, Walkman and classic Tube TV's Sony was the #1 quality manufacturer, they were the 'Apple' of their time.

Now Sony is in trouble since some years and even the PS3 didn't seem to make Sony happy. Now they announced the PS4 and somehow developers are excited - why?

First: the PS4 is a powerful machine considering its a high end PC but without all the compatibility brakes from Windows PC's. It features 8GB of ultra fast memory. And the graphics card is pretty nice but actually is better than its PC counterparts as games can use it to its full extend without worrying about backwards compatibility of 15 years VGA graphics. It will be actually much faster than comparable PC graphic cards.

But that is not the most important thing, we expect new consoles to be powerful. What is important is that somehow Sony learned from its past mistakes and someone up there at Sony decided to correct all of them.

First Sony announced to make their approval process easier for games - switching to a one step process just like the App store from Apple. For my readers who do not know how the approval process works on XBox360 or PS3 should google it, its a pain in the arse for developers and actually very expensive - impossible to finance by smaller studios.

Speaking about smaller studios: Sony wants to embrace indies (about time!) and is actively seeking them out for partnerships. They also announced the partnership with Unity3d, a good development engine for everyone.

And here is the kicker: usually you need very expensive development kits to create games on consoles, not this time: Unity3d compiles on retail PS4 machines, i.e. everyone owning Unity3d and asking Sony can develop for it and try to get approved. AWESOME.

The future looks suddenly brighter for the next generation of consoles if Microsoft follows Sony's example - from the past news though they seem to screw it up.

And just to make it clear: I play on PS3 - and will order a PS4. I AM a Sony fan!

Update 2013: Sony is back: http://www.engadget.com/2013/05/09/sony-2012-earnings/

2013/02/21

PS4: Managing Expections

The new Playstation has been announced and featuring a 8 Core CPU and PC like graphics card many people think why they should buy a PS4 when they got a high end PC already.

Here is the thing: the games on a PS4 will look better than on your PC, even if your specs are better on paper. Why?

Because on the PS4 you can fully utilize the graphic cards power without worrying about backwards compatibility or performance for small machines. You can go all in. On the PC this is not possible.

Want proof? Ask yourself why most XBox360 games look better than many of today's PC games although the XBox is now 6 years old. The reason becomes obvious.

Another thing you should not forget is that the hardware of the PS4 won't change much in the next few years so devlopers can fully commit to its features in the their pipeline, something which is not possible on the PC. Besides the development cycle of 2 years fits much better to a stable platform than on a moving one like the PC.

In other words the still-stand of PS4 hardware specs for the next 5+ years becomes an advantage, not a disadvantage.

Here is the funny quote on the link above: "The games looked amazing, but we’re skeptical that everything was gameplay. A lot of the videos seemed like target videos, examples of what the developers have in mind, rather than actual working games"

It was gameplay, real time rendering.