Archive for December, 2010

Pokemon and PSP take home the 2010 gold in Japan

Friday, December 31st, 2010

Clearly, Japanese gamers still hold Pokemon close to their hearts, as Nintendo’s Pokemon Black/White has come out on top of the Japanese 2010 top sellers list. Compiled by the ASCII corporation, and translated by 1UP, Pokemon Black/White is on top in terms of games with 4.7 million units sold, whereas Sony’s PlayStationPortable (PSP) barely nudged out a declining Nintendo DS to hold down the number one spot in hardware sales.

And it’s not just Black/White that’s keeping Nintendo on top in Japan. According to ASCII, Nintendo counts four games in the top 10 including; New Super Mario Bros. Wii, which was released in 2009. In 2010, the title moved 1.6 million units, and became the Wii’s first title to sell over 4 million units.

When it comes to Japanese hardware of choice, it appears as though there’s a war brewing on the island. Sony’s PSP took home the top honors, although by only a whisker. The PSP sold approximately 2.73 million units, with Nintendo’s DS 2.72 million units. However, the PSP was the only hardware device in the Japanese market not to see a decline in sales. The PSP saw a rise of 28 percent, with Nintendo seeing the exact same number, but in reverse. The Nintendo DS saw a 28 percent drop in sales from 2009 YoY number.

When it comes to consoles, the Wii remained the favorite amongst Japanese gamers, although sales numbers were down 9 percent when compared to 2009’s numbers, ultimately resulting in 1.59 millions sold in 2010. The PS3 saw numbers slightly lower, dropping 7.6 percent from 2009, resulting in 1.54 million sales. Of note, who seems to not be gaining any traction in Japan is Microsoft; Specifically the Xbox 360. Microsoft saw a 24 percent drop in sales, resulting in just 231,000 units sold.

The 2010 Japanese gaming market:

Japan’s Top-selling Game Software for 2010

  1. Pokemon Black/Pokemon White (DS) – 4,734,064
  2. Monster Hunter Portable 3rd (PSP) – 3,163,750
  3. New Super Mario Bros. Wii (Wii) – 1,692,401
  4. Wii Party (Wii) – 1,385,541
  5. Dragon Quest VI (DS) – 1,354,841
  6. Dragon Quest Monsters Joker 2 (DS) – 1,305,750
  7. Tomodachi Collection (DS) – 1,112,298
  8. Super Mario Galaxy 2 (Wii) – 931,534
  9. Inazuma Eleven 3 Snake/Bomber (DS) – 930,580
  10. Kingdom Hearts Birth by Sleep (PSP) – 844,980

Japan’s Top-selling Game Hardware For 2010 (and unit change from 2009):

  1. PSP (all): 2,729,718 (+604,199)
  2. DS (all): 2,719,544 (-1,054,354)
  3. Wii: 1,592,563 (-155,398)
  4. PS3: 1,542,258 (-126,680)
  5. 360: 231,258 (-118,405)
  6. PS2: 83,030 (-114,116)
 

GamersFirst calls 2011: Free-to-play to become dominant play form

Thursday, December 30th, 2010

The end of the year is a great time to look back at where we’ve been, but also a time to look forward. Yesterday we talked about Screen Digest’s predictions for Move and Kinect, and today free-to-play publisher GamersFirst has published their views on the upcoming state of play. They point to the success of the free-to-play industry, but also expect the format to overtake the status quo, and become the defacto form in 2011.

Looking at a DFC report, GamersFirst points to a 35% growth rate per annum in the free-to-play sector, resulting in a massive gain in free-to-play momentum. Based on these figures, and presumably a few of their own internals., GamersFirst is predicting that the free-to-play market will overtake traditional formats in 2011. They foresee a massive onslaught of free-to-play MMO’s, but also point to the potential headache for marketers everywhere who will be competing for gamers’ attention (and hard earned dollars).

More triple A in free-to-play. As we’ve seen with Turbine, converting your AAA title to free-to-play can have significant results. Based on this strategy, GamersFirst is calling 2011 to be the year of the AAA free-to-play. They see more competitive top shelf titles to engage with players via free-to-play, and that these gamers will eventually shift away from traditional subscription and box models in favor of online and free-to-play.

Digital distribution FTW! GamersFirst acknowledges the not-so-hot sales figures coming out of the traditional retail outlets (note: the depends on who’s figures you’re looking at), they’re calling 2011 to be the year of digital distribution. Based on previous and current digital distribution figures, this one isn’t that hard to swallow, as EA’s head John Riccitiello has even gone on record stating that the company will be scaling back on boxed options.

Rise of the Niche. Rounding out their predictions, GamersFirst recognizes the growing number of small(er) and independent gaming studios popping up around the globe. To this end, they see these indy developers as a driving force in 2011. Whether it comes to mobile gaming or desktop, these developers will be pushing out deeper and deeper niche games to the point where 2011 will see “something for everyone.”

 

Kinect to edge out Move in 2011 sales, 3D not so hot, and no love for OnLive and Gaikai

Wednesday, December 29th, 2010

Predicting hardware sales is a tricky business. Amongst the umpteen figures to consider, user preference is one of the hardest to call. However, UK based firm Screen Digest has planted their flag in the sand, stating that Microsoft’s motion based controller, Kinect will slightly outsell Sony’s answer, the Move by 7.6 million units to 7.3 million units, respectively.

According to GameSpot, Screen Digest’s predictions do not include 2010 sales figures. Normally, this would be a figure to throw by the wayside…if the two products were launched simultaneously, but you’ll remember that Move was out months before Kinect. It’s also noteworth, as Microsoft announced in November that it has moved 2.5 million Kinect units, and was well on pace to deliver 5 million by the end of this year.

Given these numbers, and Microsoft’s statements and additional numbers, moving 2.5 million units per month in the holiday buildup seems completely reasonable. Post holiday shopping will naturally see a decline, so let’s slim this number down to around half a million units per month. Even at this growth rate, Screen Digest’s numbers are a tad low. Meaning – although Screen Digest is lying on the conservative side of the numbers, it’s very likely that we could see Kinect push over 10 million sales in 2011.

Note: Piers hardin-Rolls from Screen Digest commented at Gamasutra clarifying the numbers:

“Our [data] actually refers to new Move and Kinect enabled consoles added during 2011, not installed base, which we forecast to be 11.7 million for Move and 12.1 million for Kinect by end of 2011.”

Adding: “Please note that the Move numbers refer to Move-enabled consoles and not total Move peripheral sales (as a % are bought for multiplayer gaming on single consoles).”

And while Sony may have answered the Nintendo Wii with it’s own motion based control, it’s a case of too-little-too-late. While Sony spent time developing at system that amounts to nothing more than a Wii in HD, Microsoft developed an entirely new product and input method. Coupled with Move software’s dreadful sales, it appears as though Sony has delivered the golden egg.

Screen Digest also noted a few other Sony shortcomings when it comes to all-things-digital. The much hyped and anticipated arrival of 3D televisions has been less than overwhelming, with the firm saying that 3D TV sales will fall flat in 2011. They state that broadcasters are putting too much focus on sporting events and non-recurring programming for consumers to find value in said television.

Also of note: Screen Digest wasn’t any friendlier when it came to streaming gaming services, aka OnLive and Gaikai. The postulate that neither device offer a compelling experience, ultimately providing a poor value proposition.

 

Second Life’s second life? Former EA exec Rod Humble takes on CEO role

Tuesday, December 28th, 2010

San Francisco, CA based Linden Lab has announced the arrival of the new CEO, former EA Play label executive Rod Humble.

“Rod is a great new leader for Linden Lab,” said Philip Rosedale, Founder of Second Life. “Second Life has become a consistently large and profitable business with a thriving virtual economy built together with its passionate Resident community. This has always been a big, long-term vision, it is still early and there is enormous opportunity for growth. With Rod’s fresh insights and deep experience in creating and leading the development of fun, intuitive, immersive entertainment experiences that have attracted massive audiences of loyal users, he’s the right leader to understand what makes us special and bring the next level of growth to Second Life.”

Humble comes to Second Life with over 20 years of industry experience under his belt. He’s worked on more than 200 games, and most recently headed up the EA Play label. If the Play business unit sounds vaguely familiar, you’ll remember that EA’s best-selling PC franchise game of all time, The Sims was borne from this group. That’s not to say, however, that Humble has experience solely in the realm of life sims, as Humble was also the VP of Product Development with SOE under the EverQuest banner. And if these two accomplishments alone weren’t enough, Humble was also ranked #2 in 2009 on Edge’s “Hot 100 Game Developers.”

“Joining Linden Lab is a very exciting opportunity,” said Humble. “I have a long standing interest in the how the boundaries of society and economics change as communications evolve in new ways. Second Life is unique: it sits at the intersection of virtual worlds, avatars, and human contact. The Residents and developers of Second Life have built something very special, I am honored to join the talented team at Linden Lab to help expand this new frontier.”

An interesting move by Humble, as Second Life has surely taken a few beatings over the past few years. With his Sims experience, and a dash of EverQuest here and there, your humble author truly believes that Humble might have some interesting surprises in store for the virtual world that started it all.

 

CityVille trumps FarmVille in only 22 days

Monday, December 27th, 2010

In an astonishing run, it looks like Zynga has been able to repeat, and trump their previous success, this time with CityVille. In doing so, Zynga is now officially the king of the hill with the world’s largest game.

As noted by VentureBeat, on December 24th, CityVille added a massive 6.9 million users to top out the day at 61.7 million MAU. A view of AppData’s figures makes it official – CityVille has surpassed FarmVille, which currently counts 56.8 million monthly active users.

When we first discussed CityVille, and it’s 22MAU in only 11 days, it was clear that CityVille was way on it’s way to surpassing the countryside farming. Given even these early numbers, it’s still an astounding feat – one not easily captured in today’s overcrowded social/casual gaming landscape. And Zynga’s now done it twice. Combined in part with the holiday season, i.e. plenty of free time to play free games, Zynga’s Facebook traffic numbers have skyrocketed from 198 million MAU in November, to 261.8 million MAU just before Christmas.

As noted in a previous CityVille post, Zynga is sitting in a unique position, in so much as they have a massive network within Facebook that they’ve clearly taken advantage of when it comes to pushing CityVille to interested Zynga gamers. You’ll remember that this past spring Zynga was pushing forward with CityVille (and other) developments, just as Facebook dramatically altered the way gamers communicate with other friends across Facebook. Clearly, Zynga has adapted, if not bent or perhaps even broken a few, of Facebook’s new game plan.

And remember, Zynga’s global domination program has surely received a shot in the arm thanks to CityVille. The company is aggressively making headway into the Japanese market via mobile gaming, just as Japan based DeNA is making moves in the U.S. market via ngmoco.

To be sure, 61.7 million monthly active users is an astounding figure. However, the question remains: Now that Zynga has these users, how successful will they be at converting MAU’s to PAU’s, or…Paying active users.

 

SGN’s MiniTycoon reaches over 600,000 iPhone users

Thursday, December 23rd, 2010

Palo Alto, CA. based SGN, has recently announced that their MiniTycoon Casino app for iOS devices has reached over 600,000 users. MiniTycoon exploded onto the scene at release back in November, achieving the coveted top social game in the App Store position. According to SGN, fans of the MiniTycoon app have banked nearly 300 billion chips in the casino inspired game since it’s debut last month. In addition to this gigantic number, players have also sent over 400, 000 virtual gifts, and collectively logged over 8 years of play time. In one month.

“As mobile social gaming continues to pick up steam among audiences, we expected MiniTycoon Casino to takeoff, however, we were surprised by its tremendous out-of-the-gate success,” said Randy Breen, CEO of SGN. “The appeal of MiniTycoon Casino is that it allows players to create the casino of their dreams and show them off to their friends as well as competing players. The new holiday themes expand the creative choices for players as they build their empires and cash in this holiday season.”

If you’ve not yet given SGN’s MiniTycoon a go (a free app), the title centers around not only games of chance, but the strategy involved in building a casino empire from the ground up. According to SGN, MiniTycoon is the first mobile social strategy game of it’s kind. Players can build the way to fame and fortune via slot machines, roulette and card tables, all the while earning chips. However, it’s not all pull the level and win a payout, as discerning patrons gravitate towards the fanciest, coolest, chicest, gambling floors on the strip. Players that find the delicate balance between casino look and feel and games offered will be the ultimate winners.

A fully Apple Game Center integrated game, MiniTycoon can also support game invites and achievement/trophy bragging via Twitter and Facebook.

To celebrate not only this milestone, but that holiday season, SGN is now offering a number of in-game holiday themed sets, allowing users to further customize the look and feel of their favorite gambling den. Features include holiday reel shots, video poker, blackjack and roulette tables, and naturally, a snowman or two, a snow cover pine tree or 10, and three different holiday themed floor and wall treatments.

MiniTycoon is available to all iOS device owners via the App Store for free.

 

The9 scores OpenFeint license agreement

Wednesday, December 22nd, 2010

Chinese online game operator and developer The9 has recently announced a software license agreement with OpenFeint Inc. The terms of the deal center around a five-year license to use the mobile social gaming network software across the Chinese market, and was made via a wholly owned subsidiary.

Unless you’ve been camped out under a rock for the past few years, you’ll recognize the importance of OpenFeint arriving in China. Arguably the most successful mobile social gaming network software for iOS devices and Android devices, OpenFeint’s developer SDK can be quickly and easily integrated into any iOS and/or Android based game. With China’s massive gaming market, this cooperation has mutually beneficial all over it. OpenFeint currently has over 13,000 registered game developers using the SDK and integrating it into their games. The result? OpenFeint counts over 50 million registered users with approximately 4,000 games in the App Store and Google Market.

“We are very pleased to introduce OpenFeint’s software to Chinese mobile game developers and users. As the world’s leading social mobile gaming network software, OpenFeint’s software combines both social networking and gaming features that have great potential for development in China. We believe that our mobile social gaming network in China can deliver to our users, fantastic contents and an overall exhilarating gaming experience,” comments The9 CEO Jun Zhu.

Along with their subsidiaries and partners, The9 plans on building and operating a mobile social gaming network built on mobile internet across China. Listed amongst the cooperating partners are mobile communication carries, a factor that’s sure to expedite the process.

An interesting sidenote, you’ll remember that Japan based DeNA has a significant investment in OpenFeint, and has been on a buying spree beyond compare over the course of 2010. They’ve recently hinted at a European strategic purchase, but working their way into the Chinese market via OpenFeint could prove quite valuable for the company. If they can’t crack the market under their own name, there’s certainly no better option than to license out technology that you’ve got a significant investment in.

 

EA scraps in-game ads in favor of microtransactions

Tuesday, December 21st, 2010

EA is an interesting beast. As one of the largest and most prominent games makers on the planet, they hold their own unique space in your average gamers’ world. And while EA has been going through a revamping process for longer than I can count, EA’s General Manager of Free-to-play, Ben Cousins, has some interesting things to say about the direction of the company in an interview with Edge.

According to Cousins, EA will be moving further and further away from any in-game advertising based campaigns, focusing more on microtransactions. “We actually aren’t getting much from ad revenue at all,” says Cousins. “The in-game advertising business hasn’t grown as fast as people expected it to.” It’s not that in-game ads are to fault, but rather, Cousins points out the massive and sudden explosion of microtransaction based revenue models, as evidenced by Zynga. “If you think about how fast the virtual goods business has grown in the last year or so, it’s been much quicker and become a much more reliable source of revenue.”

Cousins isn’t simply making numbers and figures up. You’ll remember when EA jumped into the free-to-play pool, they did so with Battlefield Heroes, which was supported through a mixture of (presumably tested and re-tested) in-game advertising slots and microtransactions. “We hedged our bets,” he said. “we thought we’d do in-game advertising and virtual goods sales, and one of those took off really fast and the other hasn’t really taken off at all.”

The interview with Edge arrives just ahead of EA’s newest iteration of a free-to-play Battlefield title hits the streets, Battlefield: Play4Free. He doesn’t quite see this shift at EA as the final nail in the coffin for IGA, but he does note that publishers need to up the bar in the creativity department for the model to be truly compelling, i.e. generate significant revenues.

“We did a deal with Dr Pepper for Battlefield Heroes, where if you buy a bottle and scan in the code you get an exclusive outfit. That kind of deep integration will work, I think, but I’m not convinced that we’ll have billboards in games and things like that. Maybe those days are over.”

Over the course of the year, we’ve seen a massive uptake in microtransactions, while the world of in-game advertising has already said goodbye to one of it’s major players. If Cousins’ is on the right track, could we see another IGA-based shop shutter it’s doors in 2011? Or…will advertisers take Cousins’ and others’ comments to heart and give a serious retooling to their methods?

 

Dr. Dre and Zynga drop beats via Mafia Wars

Monday, December 20th, 2010

Apparently the end of the year is no time to slow things down at Zynga, as they’ve recently announced yet another first – this time an in-game music partnership with a hiphop legend; Dr. Dre. This partnership will allow Zynga players from around the world to get the scoop on Dre’s first album in over 10 years. Titled Detox, Dre’s music video for the first single, “Kush” featuring Snoop Dogg and Akon will stream for free within Mafia Wars.

“We’re always looking for innovative and interesting ways for fans to discover great music and with an artist of Dre’s cultural significance we really wanted something special that’s never been done before,” said Jimmy Iovine, Chairman, Interscope Geffen A&M Records. “We felt it was a perfect fit for Dre to be the first musical experience for the millions of Mafia Wars players to enjoy while gaming.”

The Mafia Wars promotion kicked off this past Friday, and includes a number of Dr. Dre inspired in-game experiences, complete with music content and limited edition virtual goods via a “Hustin’ with Dre” portion of the game. Limited edition items include headphones (nice tie-in with his Beats by Dr. Dre line of headphones), a vintage car, and weapons. Speaking of the headphones tie-in, players will also have the opportunity to watch an exclusive Dr. Dre video within Mafia Wars, and can enter to win a signed pair of Beats by Dr. Dre headphones, as well as a signed CD when it’s released later next year.

“Dre is a cultural icon that has inspired generations of music lovers,” said Mark Pincus, CEO and founder of Zynga. “We’re huge music fans at Zynga and we know the players within Mafia Wars will love the chance to discover incredible music content while playing with their friends.”

Obviously, Snoop Dogg’s people found value in a Zynga partnership, as you’ll remember his blowing up of a 4 ton armored truck in the Nevada desert to commemorate Mafia Wars: Las Vegas reaching 10 million visitors in 2 weeks. Mafia Wars currently reaches over 19 million monthly active users, and according to Zynga, is the most popular crime-themed game in the world.

Targeted audience content, offering an exclusive offer from a major music industry figure, especially one that’s not been in the public eye (directly) in over 10 years? Zynga – well done.

 

New holiday gift giving report places games on top

Friday, December 17th, 2010

According to new survey data released by social shopping network Giftmeister.com, games and gaming consoles are at the very top of consumers’ shopping and wish lists this holiday season.

Giftmeister analyzed the purchasing habits and trends of more than 20,000 consumers across the entire spectrum of shopping channels, including online, social, and mobile. The report takes data from Black Friday onwards, and focuses on the popularity of product categories and brand preferences. The report also takes into account gender, budget and spending decisions.

The report finds that 2010 is a consumer electronics driven holiday season, with Digital Cameras dominating the female wish list and video games and/or video game consoles taking the top slot across the board, with 38% of those analyzed making a purchase in this category. Giftmeister’s Gifting breakdown:

  1. Video Games and Video Game Consoles – 38%
  2. Smartphones – 16%
  3. Cameras – 12%
  4. MP3 players – 10%
  5. E-readers/Tablets – 4%

Again, this is a list of the top 5 Gifted items from Giftmeister.com, meaning, items purchased by one individual to be shipped directly to another individual. When it comes to purchases made, and to be delivered to the same individual, the numbers change a bit. When viewed in this light, e-reader/tablet computers are the winner, with 3 of the top 10 items ordered belonging to this category. Amazon’s Kindle lead the way with a number 1 showing on the list, Apple’s iPad taking the number two slot, and Barnes and Noble’s Nook taking the 7th slot.

“With peak holiday shopping season upon us, it is important to keep our finger on the pulse of consumer electronics shopping trends, and truly understand what is motivating shoppers this year,” said Uzair Dada, CEO of Iron Horse Interactive, the parent company of Giftmeister. “With the latest Giftmeister Holiday Gifting Trend Report, we were able to gain critical macro insights into the average holiday shopper, as well as to understand specific shopping habits based on certain age groups, genders and economic profiles.”

Again, this data is taken from Giftmeister.com’s own data sets, and may not be 100% accurate and reflective over the overall consumer holiday spending market. However, based on personal experience, and from what I’ve viewed others’ wrapping up for placement under the Christmas tree, these numbers seem completely plausible to this humble author. Now….where’s my iPad?