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July 24, 2006

AMD and ATI Join Forces, Toga Party to Follow

Well, AMD has certainly put together a nice little run over the last couple years. The chipmaker was considered an also-ran to the mighty Intel, but now AMD has emerged as a real threat with some well-timed innovations (its 64-bit architecture, Opteron and Athlon chips), a new partnership with Dell and now a major acquisition of graphics chipmaker ATI Technologies.

The $5.4 billion deal broadens AMD's product portfolio and helps the company's
goal of unseating Intel as the world's biggest chip company. To use a sports
analogoy, this is a little like Phil Mickelson/Vijay Singh upping their golf
game to challenge Tiger Woods after so many years of so many years of Tiger's
dominance. As for ATI, becoming part of AMD should help it put pressure on its
chief rival Nvidia.

Some folks are cheering the acquisition, while others are complaining that AMD
paid too much for ATI. I don't really know much about stock prices, and I don't
trust the Wall Street analysts anyway. So here's what I do know: at my previous
job covering IT for a biz magazine, I talked to computer resellers, white box
makers, and system builders all the time, and the consensus opinion was that AMD
was out-playing Intel in the innovation game over the last couple years. A
number of system builders I spoke with regularly (who were big Intel shops, BTW)
often said that Intel couldn't touch AMD's 64 performance. However, Intel's size
and market position gave it the ability to offer lower prices and better support.

Will the chip market dynamics change with the AMD-ATI marriage? We shall
see...

July 26, 2006

To free the regions or not to free the regions?

One of the contentious issues with games and films these days is the enforced region-encoding which ensures that if you buy a game in the US or the UK respectively, you can only play that game with a console bought in the US or the UK. Now in an attempt to claw over one another we could see region encoding going out the window with the next generation of consoles... though Nintendo would appear to still be making its mind up about whether or not the Wii will be region free or not.

Nintendo of America vice president of marketing and corporate communications, Perrin Kaplan, said in an interview when asked whether or not the Wii will be region free (rhyme!) or not, he said "We will share a lot of ways people can play globally, regionally, without boundaries. You're right that the region-free approach has proved to be a successful and attractive feature for Nintendo Wi-Fi Connection on Nintendo DS - we have even blown the doors off our own anticipated numbers! Cost, ease-of- use and player privacy are the three things that were a focus for us with Nintendo Wi-Fi Connection. Those priorities also will apply to the Wii system."

That's an ambiguous "maybe". Hell, anything these communication and marketing guys say that's not then written down and signed in blood to be sealed in a Papal tomb is ambiguous, but this is interesting. However Nintendo is not new to freeing up its platforms, as the DS is region free.

Well, we'll wait and see... importers could be the big winners in this next round of console wars.

July 27, 2006

Blizzard bans (another) 59,000 cheating accounts

There is nothing worse in an online game than a dirty, rotten, cheating sonofabitch ruining the entire experience for everyone else. Blizzard would seem to agree with me in this regard, and they have banned yet another 59,000 cheating accounts from World of Warcraft.

I say "another" as Blizzard has been banning 50,000 here, 5,000 there and 1,800 over that way on Battle.net, where the likes of Diablo II are played, and from World of Warcraft for quite some time now. It's also an approach taken, though not as frequently, by Valve on the Steam service.

Have no mercy, I say - cheaters, hackers, farmers, ban the lot. Apart from a few obsessed losers who may top themselves when deprived of WoW (I say that with a hint of sarcasm, but only a hint) it's hardly like you're killing anyone. When we pay for an online game we pay for the creators to manage the experience and ensure it remains fun. Blizzard is living up to its end of this agreement.

July 30, 2006

E3 is cancelled! No, wait -- it's still on! No, wait -- it's downsized!

I suppose you could have seen this coming. I did. Well, wort of. After attending E3 2006 back in May, I wrote a little ditty that asked the question "Has E3 become the Comdex of the video game industry?", to which I answered yes.

Well, I must be a visionary, because E3 is cancalled. Next-Gen.biz had an
exclusive report today, which featured "well placed sources" who claimed that
the ESA (Entertainment Software Association) decided to pull the plus on E3
after several major exhibitors had decided to pull out of the world's largest
video game show for 2007.

There was just one problem. Not long after Next-Gen "broke" the news, several
other competing video game news outlets, such as Ars Technica, issued their own
reports Sunday that E3 was, in fact, not cancelled and would go on, albeit on a
smaller sclae. Then more reports trickled out that featured their own un-named
industry sources, which claimed that E3 would undergo drastic changes -- like
being moved from the Los Angeles Convention Center to a smaller venue -- and be
significantly downsized because the show was becoming a Comdex-like behemoth
that was out of control. All of these conflicting reports have led to insults
and bickering between the trade news organizations, blogs and enthusiasts that
follow the video game industry.

Apparently, one thing is true -- the ESA is having serious discussions with
industry folks and major exhibitors about paring down E3 to a smaller, less
costly and more manageable event. According to the official E3 Web site,
planning is already underway for E3 2007 at the L.A. Convention Center, May 16-
18. The ESA is supposed to release the official word on the future of the show
this week, perhaps as earlier as tomorrow, which will hopefully do two things.

First, it will put an end to some of the immature behavior and silly
gamesmanship (no pun intended) that some "news" sites are engaging in with this
particular hot item. And second, it will give the video game industry a chance
to examine it premier trade show and figure out how to fix it before it breaks
for good and become another Comdex. Sure, tech trade shows aren't what they used
to be, but there's a still a place for smaller, more targeted events that
actually deliver value like CMP's Game Developer Conference.
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But E3 was becoming too crowded and too hard hard for people to digest. There
were too few informative seminars, panels or keynotes. Major players like
Nintendo, Microsoft and Sony getting their big news out of the way prior to the
event at adjacent locations (seriously, that's how it starts -- just as Comdex).
People waited six hours to play Nintendo's Wii, which is half the time they had
to wait in line to get lunch. All in all, E3 had turned into a mangled mess.
When you ask people if they are going to E3, and 99 percent of them let out an
exhaustive sigh followed by "Yeah, I'll be there, but I don' really want to go,"
well, that's when you know something is wrong.

July 31, 2006

E3 Dead? Dying? Downsized? Who cares...?

Well gosh dammit, I wrote this first. Or at least I'll presume I did. But apparently Roberto posted first. The fact that we didn't compare notes but came to the same conclusions is interesting. My post is far more interesting, though.

The gaming world is abuzz with rumours of the death, demise and downsizing of
the industries annual blow out in Los Angeles, E3. Apparently major publishers
have been talking to the organisers about the huge costs of the event versus the
low return in terms of hype generated and so on.

There is shock, anguish and a general cry of "Ohh, no!" among many fans and
journalists alike. But why, says I, should we lament the death - and make no
mistake, even if this is simply a downsizing of E3 it is the death of the event
we once knew - of E3 considering that it has surpassed its usefulness? The show
simply got too big and too loud for its own good. The fact that companies have
to spend double digit millions to get themselves seen and heard on the
epileptics nightmare of a show floor speaks volumes - there's no PR return worth
that sort of an investment.

Indeed the likes of Electronic Arts have been holding their own spectacular
press-only preview events, complete with marching bands and keynotes from
industry luminaries, after E3. These are far more effective, as the publishers
can schedule around one another and grab the limelight all to themselves for a
couple of days - unlike at E3, where time is precious and you're competing with
your major rivals for airtime (thus spiralling costs to do so.)

A lot of stuff gets missed at E3, and at best you can consider it to be a mass
human wave of PR that fills our heads and our offices so full of press kit shit
that it takes journalists until around September, when the promised games
actually start to get released en masse, to sort everything out and re-write the
press releases into neat little previews. We'd be better off spacing these
preview events out over the course of the summer, with E3 being the press event
to kick it all off still. We'd be able to sit down with developers for five
hours of a day, rather than five minutes in an hour before rushing off to the
next event.

I see the demise of E3 as a positive thing for the games industry - anyone who
knows me vaguely at this stage knows that I don't suffer PR glitz gladly, and I
much prefer the chance to be able to take a thoughtful look at the upcoming crop
of games than have to watch a preview video in a glass case (so nobody nicks the
screen); whilst the noise of the ten booths behind and around me provide
distraction, with some PR hack whose themed name badge I'm not going to bother
to read giving me a ream of features and cool notable points about the game that
I Really Hope To God are going to be in the press pack he'll inevitably hand me,
so that I may transcribe them later.

That was a long graph. Go back and read it four times without pausing for breath
and you get an idea of what E3 is all about. Play several tracks of pop, rock
and metal music together at once and at an obscenely high volume and you have an
idea of E3 in a nutshell.

Of course, inevitably, after a year or two of no major lightshows some genius
will get the idea of setting up another major tradeshow that will be E3 in
spirit. Let's just hope they put it in a more agreeable venue - either somewhere
calm and scenic, or somewhere properly dingy. LA is just too in-the-middle for
me.

E3 down(sized) but not out

The reports of E3's demise have been greatly exaggerated. However, the mega-show as we knew it will no longer be, according to Doug Lowenstein, president of the Entertainment Software Association (ESA). Instead of the sprawling, crowded event of years past, the new E3 in 2007 will be a "a more intimate event focused on targeted, personalized meetings and activities." Here's some of the official statement from the ESA and Lowenstein:

"The world of interactive entertainment has changed since E3Expo was created
12 years ago. At that time we were focused on establishing the industry and
securing orders for the holiday season," said Douglas Lowenstein, President of
the ESA, the trade association representing U.S. computer and video game
publishers and the owner of E3Expo. "Over the years, it has become clear that we
need a more intimate program, including higher quality, more personal dialogue
with the worldwide media, developers, retailers and other key industry
audiences."

The new E3Expo will take shape over the next several months. As currently
envisioned, it will still take place in Los Angeles, described by ESA as a
"great and supportive partner helping to build E3." It will focus on press
events and small meetings with media, retail, development, and other key sectors.
While there will be opportunities for game demonstrations, E3Expo 2007 will not
feature the large trade show environment of previous years.

"E3Expo remains an important event for the industry and we want to keep that
sense of excitement and interest, ensuring that the human and financial
resources crucial to its success can be deployed productively to create an
exciting new format to meet the needs of the industry. The new event ensures
that there will be an effective and more efficient way for companies to get
information to media, consumers, and others," said Lowenstein.

Additionally, the evolution of the video game industry into a vibrant and
expanding global market has led to the creation of major events in different
regions, such as the Games Convention in Leipzig, the Tokyo Game Show, and
company-specific events held by Sony, Nintendo, Microsoft, and others around the
world. As a result, Lowenstein said, "It is no longer necessary or efficient to
have a single industry 'mega-show'. By refocusing on a highly-targeted event, we
think we can do a better job serving our members and the industry as a whole,
and our members are energized about creating this new E3."

Additional details about the new E3Expo event will be forthcoming in the next
few months.

From the sound of it, E3 2007 most likely won't be at the L.A. Convention Center
and won't have tons of exhibitors and attendees. And that may not be a bad thing
after all.

August 1, 2006

E3 Expo is transformed into a "media festival," Aaron and I rejoice

Well, the news regarding E3's drastic transformation/near-death experience continues. Doug Lowenstein, president of the Entertainment Software Association (ESA), recently told the Wall Street Journal that the biggest video game conference in the world will now be known as the E3 Media Festival.

Instead of featuring a host of game companies with booth babes and elaborate
exhibits all vying for the attention of some 60,000 attendees at the enormous
L.A. Convention Center, the show will be significantly scaled down to about
5,000 attendees -- mostly media members like us! -- and will take place at a
couple of hotels where game companies will be able to deliver their messages to
a more targeted audience without the insane crowds and ridiculous clutter of
previous shows. The show will take place next July instead of May.

With the advent of the E3 Media Festival, it's safe to say the E3 Expo as we
knew is dead. The show will be an unrecognizable version of its former self. And
honestly, I can't say that's a bad thing. No one in the industry that I talked
to before E3 this year was looking forward to attending the mega-event; it had
become an exhausting affair where little business could be conducted. So the E3
Media Festival will most likely be a good thing for journalists like Aaron and
me. But what about the rest of the world? Is it a good thing for the video game
industry, which is currently experiencing some growing pains and struggling to
develop a more efficient economic model, to suddenly be without its most
important promotional event? I'm not so sure.

Don't screw the PR people

I nearly fell off my chair reading an article on video game journalism today. This is an odd thing to happen. Usually something like the crew of Star Trek singing Monty Python's Camelot makes me laugh until it hurts, and introspection about games journalism (to which even I'm prone) is either boring, depressing or so wide-eyed and hopeful that it's depressing.

So, what got me laughing this time? Well alright this is an article probably
aimed at the 16 year olds working on the freebie publications which "hire" for
"free games and glory". Hey, it's a start. Well anyways, href="http://www.gamedaily.com/features/?id=1068&page=3">page 3 of this
article concerns "relationships with PR people." The gist of this is, "Don't
screw the PR people. Screw with them, but don't screw them. If they're flirting
with you just remember, you're an ugly geek and they're doing it for better
coverage."

A pertinent lesson, Rob. (Mrs. Wright, please don't hit me, no I didn't mean to
imply... ohh God... somebody, call an ambulance...)

August 4, 2006

Making a killing off of Xbox Live Marketplace

The console makers are on to a winner with these so called "micro transactions", providing relatively cheap add on content for games via digital download. Microsoft's Xbox Live Marketplace is the first example we've seen get released into the wild, with people buying credit (and that's a critical part of the equation) for people to spend on items ranging from wallpapers to customise their console to add on maps and items for games.

Some of the stuff, like the Oblivion horse armour for example, has received a mixed reception from gamers. However they have been spending their credit, and Call of Duty publisher Activison has reported that they have sold almost $1 million in expansion maps for CoD 2, the most played multiplayer game on Xbox Live.

That's a serious amount of ongoing revenue intake, but the really surprising thing is that people have also been spending their credits to purchase things that, in the past, PR and marketing types would pay you to take. Things like wallpapers, to "customise" your desktop, can only be provided through the Xbox Live Marketplace, and so it is a sellers market. People have been literally buying promotional materials - only, when you spend "1000 credits" as opposed to "$12.50" it makes the medicine go down that bit easier.

Of course, a stingy person might point out that in games like Day of Defeat: Source and Red Orchestra we're getting bonus materials just as good as the Call of Duty map packs for free. Indeed, there was a time (once upon a better time...) when we got map packs for free. EA have tried selling smaller expansions for PC games, like the Battlefield 2 booster packs, and the exercise has largely been a failure. It seems that this sort of success story for publishers will only work in the highly managed, "sellers market", of something like the Xbox Live Marketplace or Sony's upcoming answer on the PlayStation 3.

August 8, 2006

Today is a good day to buy an Xbox. No, not a 360. An Xbox.

There has never been a better time to buy an Xbox than right now this second, I've decided to myself. In fact, I decided it to myself with the launch of the Xbox 360, but I'd like to reiterate the point since I've just returned from a lunch hour excursion in which I saw quite an amazing sight.

In a major game retail store they were (and please do excuse the euro pricings, just think in your native equivalent currency and all will be well) selling an Xbox for €90. Or, you could grab one with 5 games (decent ones at that, spreading the spectrum of fighten' and driven') for €150. And then, beside these now "retro" consoles, were games going for €30. Actually, they were going for €15 as there was a straight up "Buy one, get one free" offer. A "BOGOF" offer in the video gaming sphere is about as common as good music aimed at 14 year olds.

Every game we've been told is so, so bloody great over the past two years was there. This was no display of the shoddy wares that the Game group want to offload onto the streets - this was a display of the great games that the Game group wants to offload onto the streets.

When you consider that an Xbox 360 game costs €75, or €15 less than you can get an Xbox for these days, and even a PlayStation Portable, with no games, is gonna set you back €205 (at least in this particular store), well you begin to see, if you're not an avid Xbox player, how becoming one can be such an appealing financial alternative.

August 9, 2006

Spore slips into 2007, like so many more like it

Dammit, what is it with this industry? It would seem that the gaming business fraternity is so afraid that it won't have enough time (a year? Two?) to hype up a game that we get the announcements severely prematurely and then have to undergo a long spate of delays and disappointments. The great hope for many high-brow gamers at the moment is Will Wright's upcoming Spore - first announced in 2005 at the GDC, slated for a late 2006 release, shunted to the "TBD" land of ether and now finally into the second half of 2007.

That is to say, the game has been delayed by anywhere up to a year of what we had originally expected. I say delayed in the loosest sense of PR wording, as any developer on the team probably might have been able to tell you that the game wouldn't hit the late 2006 release date - at least not in any genre defining form.

Stop prematurely announcing games! The entire games press will be there to fondle over it in a years time, and if you're someone like Will Wright then your GDC keynote is pre- booked every year, five years in advance. The correct announcement time for Spore would have at least been at this years GDC - is there not something slightly wrong when we have games scheduled to be released over a year from when they've been announced, only to have that delayed so that in reality it will come out two years after the announcement? Sheesh kebab lads.

August 11, 2006

E3: Las Vegas?

It was bound to happen. We predicted it would happen. It's happening... E3 has been shrunk down to size, and now somebody else wants to replace it a new show, exactly the same as the old one. Big, glitzy, expensive, and ultimately self- defeating. Possibly not in the first year, or even in the second, but eventually it'll just become the untenable thing that E3 was this year.

The organisers of the Consumer Electronics Show, the big fish of big fishes where tech trade shows are concerned, have assembled what they're calling an "advisory committee to solicit gaming industry feedback and explore the viability of a West Coast event in late spring 2007 focused on the gaming and entertainment marketplace."

CES being in Vegas, maybe they'll stick it into that particular (proper) sin city, as our own Roberto wanted a while back. Down boy, you're a married man now, can't be at all that. Ultimately however this is a self-defeating exercise. It's one of those ideas that looks absolutely brilliant on paper, except for the fact that in practice it hasn't worked in the past - indeed, E3 isn't dead more than a couple of weeks at this stage.

I'm going back to bed now until somebody has a good idea. I need a good six month rest anyways...

August 14, 2006

WannabeE3Watch: GSTAR, Korea

So there I am sitting in my office, minding my own business and sipping a glass of water when suddenly the telephone rings. "Aaron McKenna" I say, my usual greeting which is designed to preclude PR types from wasting any more of my time than necessary by asking to speak to me. Unfortunately, it just takes them unawares, they're not quite sure what I've said and simply ask to speak with Aaron McKenna. Ohh well, back to the story.

"Hello," the other end replies, "Could I speak to Aaron McKenna?" I sigh.

"Speaking. How may I help you? You bastard..."

"Sorry?"

"Nothing. Continue."

"Well, after the announcement of the downsizing E3 next year, the world has been paying attention to GSTAR... that is, Game Show & Trade, All-Round, to be held on November 9 - 12 in Korea."

Aha, I think to myself. Should I put the phone down? Well, that would be rude. I might need this person at some stage in the future. All the back rubbing in this greasy industry, it'd be bad for business. "I see. Could you tell me a little more?" I ask, fully aware that the git was going to tell me anyways, even if I did put down the phone. I'd probably be walking down the street and get dragged into a white van filled with nattering PR people if I hung up.

"The drastic downsizing of E3 will enable GSTAR to expand in size and content as well as establish an exhibition identity," the voice continued. "With the success of last year's show, GSTAR, focusing on online games emerging as highly growing game industry, has become the 'real marketplace' where generates good results for both exhibitors and visitors, unlike the other game shows that cause low success against the spiralling cost of attendance, in the midst of severe competition between the video console and packaged game companies."

Right. Ok. "Erm, send me the press release would you? I'll take a look and get back to you." Great, now I'm going to have to get back to him and think of some good questions. Because I'm honest like that. A bastard, but honest.

One good question which will appeal to my ever cynical outlook though might be "How exactly will it be more cost effective to attend a trade show in Korea?" E3 was costly to attend for the European developers and press, but for the US crowd it was mostly a matter of falling out of their front doors and landing in the LA convention centre. Well, I'm sure they'll have a good answer. WannabeE3Watch continues!

August 17, 2006

PS3 wins the next-gen console race? Um, what?

A wise man once said that when it comes to the world of sports media, you can always find someone to take the other side of the argument no matter how far- fetched or absurd it may be. Sports writers will call Terrell Owens a great teammate, and they'll say Tom Brady is overrated.

Apparently, the rules of sports media can now apply to technology. Despite all
the negative press reports, despite all of the recent misteps from Sony, despite
the big lead that Xbox 360 has in the race and despite all the buzz around
Nintendo's Wii, one technology analyst firm has declared Sony's PlayStation 3 as
the clear winner in the U.S. next-generation console race. The Yankee Group
recently issued a report that predicts Sony will sell 30 millions PS3s in the
States by 2011 while Microsoft will sell 27 million 360s, capturing 40 percent
of the market and closing the gap on its chief rival.

The Yankee Group also reports that the Wii will be a big loser with just 11
million units sold, despite have a much smaller price point and a whole lot more
positive vibes out there. According to the report, Yankee Group analysts simply
don't believe the feel-good Nintendo nostalgia and glowing reviews from game
developers will translate into big sales for Wii. Also, the report notes that
console sales will be down overall compared to the previous PS2/Xbox/GameCube
cycle because of higher costs and confusion concerning the competing HD DVD and
Blu-ray formats.

Will Nintendo make the Yankee Group eat crow? Check back with us in five
years.

September 6, 2006

MySpace plus Napster plus Google plus (infinity) equals New Media

The word "convergence" has become a bit of a dirty one in the tech world, thanks to rather crap attempts to take every device known to man and stuff it into a handheld device that doesn't have very much battery life. In the New Media world however, the word might find new and productive meaning.

MySpace and Snocap (alright, so not Napster, it's just made by a bunch of the same guys) are jumping into bed together to provide music ("and maybe more..." Ohh God, that sounds like a midnight sex chat ad on the telly) to the fawning young masses.

The idea is that "if we want to crack the youngsters, we have to do it on their ground and on their terms", meaning that youngens will be far more likely to buy your stuff if it's sold to them on MySpace or Bebo than traditional outlets.

This entry should really be titled "I feel like I'm getting old", but I'm not self centred enough to take up a whole headline to tell you that. The guts of a paragraph will do. The reason? Because I'm so disconnected from this Bebo generation, and for the first time I feel like an old man in the technology world. Kids (I mean about 12 and up) are using sites like MySpace and Bebo to the extent that, like mobile phones, everyone has a profile and is to be found on one of these two social networking sites.

They're using them as cheap text messaging services and putting videos and pictures up on the web thanks to the simple interfaces offered by sites like YouTube. There's a whole debate about how dangerous this may be to said youngens, but that's another days discussion. For now, let's just accept that it's happening.

So I feel old because I'm watching as 12, 14, 16 year olds who would have derided anyone openly capable of switching on a computer, let alone being able to touch type, just a few short years ago; now just about as tech savvy as anyone really needs to be to get by in the modern day and age, if not more so besides. It has kinda crept up on me - we in the tech sector have been observing it from a distance, but it's different to sit down next to a 14 year old hammering away with a Bebo page and six MSN windows onscreen.

Back to New Media Convergence, if you please. Now that everyone in the hard- to-reach young demography is on social networking sites, New Media Convergence can happen. We already see it with, for example, Bebo integrating YouTube to such a simple extent that it's a matter of pushing a few buttons to get a stock video on your page; and just a few more after that to get your own cam/phone/whoknowswhatelse vids online.

Google paid top brass to get to be the search engine for MySpace a short while ago. And now we're entering into direct sales - forget about just being able to advertise to the demographic, how about being able to directly sell to them like even iTunes can't?

The new big growth sector is New Media Convergence, and so long as the social networking sites hold their water as mobile phones have done we'll be seeing them becoming a more day-to-day thing. Mix up mobile phones, social networking sites, search engines, stores, even municipal WiFi and you can see the shape of teenage lives forming around the internet, whether we like it or not.

Congratulations are in order, we've made technology so mainstream that ditsy blonde teenagers are using it in their fumbling attempts to have sex with one another.

September 20, 2006

Nintendo's Wii honeymoon is over

It's funny how things change oh so quickly in today's world, especially in the hyperactive technology market. Back in May at E3 2006, Nintendo's Wii stole the show from Sony's PlayStation 3 and, to a lesser degree, the already-released Xbox 360 from Microsoft. Since that time, Nintendo's little-console-that-could and its wacky controller have continued to roll as the hot item in gaming. But is the hype coming to a head?

Last month, I wrote a column about PlayStation 3's troubles and examine the
next-generation consoles in regards to the media hype and news cycle. Here's a
quick excerpt:

"After getting beaten up for a few years during the GameCube era and accused of
being obsolete, Nintendo is now emerging as the media darling with Wii. Part of
this is due to how Wii has separated itself from Xbox 360 and PS3 with an
innovative approach and lower price tag. But don't underestimate people's
"Nintendo nostalgia," which I think is leading to many folks to view Nintendo as
the loveable underdog instead of an out-of-touch has-been. In addition,
Microsoft has taken its lumps in years past, but releasing Xbox 360 on time and
ahead of its rivals proved the company has staying power in the video game
market and it has earned Microsoft at least some measure of respect from the
gamer community.

"But again, it's a news cycle. So-called purists are falling in love with
Nintendo's commitment to fun gameplay over realistic graphics, but what will
happen in a year or two? Will people begin to complain that Wii's processing
power pales in comparison to PS3? What will happen if style="FONT-WEIGHT: normal; PADDING-BOTTOM: 1px; COLOR: #ff6600; BORDER-BOTTOM:
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itxtdid="2188621">Blu-ray
turns out to be the dominant DVD standard and
provides a huge incentive to purchase a PS3? It's important to keep these things
in mind."

Well, I should have written "But what will happen in a month or two?" in the
above paragraph because it seems like Nintendo's hype has reached the breaking
point. I've read a lot of stuff about Wii in the wake of Nintendo's big event in
New York last week, and it appears there may be a little bit of a backlash
against Nintendo after its summer of media love. Nintendo announced the console
will launch on Nov. 19 in the U.S. and be sold in the for $250.

While $250 was the expected price point by most folks, industry rumors this
summer suggested the cost would be as low as $199. While I personally didn't put
much stock in this rumor (hey, $150 less than the next system was good enough
for me), some gamers did. Check out some of the forum feedback for disappointed
gamer who were hoping for a cheaper console. Now other gamers are saying Red
Steel and the new Zelda title don't look all that good, that too many of the
games don't support four players, and that the Broadway processor from IBM will
be too weak to support the system. My, how quickly things can change.

As for me, I'm still pumped about Wii. Nintendo got their hooks into me a long
time ago, and I've never been able to get them out. Like a lot of people, I
suffer from Nintendo nostalgia so I'm more excited about Wii than the other two.
But enough about me. Here are a few good bits from the Web regarding Wii.

Check out a report from TG Daily's Mark Raby href="http://www.tgdaily.com/2006/09/14/analysis_nintendo_wii/"> here. Mark
examines what gamers will really be getting for the low price point of $250 and
wonders whether the money saved on the system and games will make up for the
vastly lower processing power and inferior graphics of Wii compared to PS3 and
Xbox 360.

Kotaku has a number of funny,
insightful posts about the recent Wii news. Check them out. The headlines alone
are priceless.

Joystiq weighs in on Wii's multiplayer shortcomings, href="http://www.joystiq.com/2006/09/15/wii-not-even-remotely-region-
free/">false region-free claims
, and other href="http://www.joystiq.com/2006/09/14/critiquing-nintendos-wii-launch-
details/">Wii launch details
. There's also a good href="http://www.joystiq.com/2006/09/14/wii-then-and-now/">"then and now"
post from Ludwig.

Ex-Joystiqer Robert Summa, now at Destructoid, muses about the href="http://www.destructoid.com/a-wiis-day-is-done-looking-back-at-the-nyc-
nintendo-event">NYC event
and takes a critical look at Wii.

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September 22, 2006

PS3 price slashed in Japan -- thanks for nothing, Sony!

Sony delivered a somewhat surprising announcement at the Tokyo Game Show today, declaring that the PlayStation 3 price will be cut 20 percent for the 20 GB version -- but in Japan only!

Khaaaaaaan!!!! KHAAAAAAAAN!!!!!

Whatever. Maybe this will lead to an outcry from jilted North American and
European gamers (who will pay a higher price for in U.S. dollars for the console
than Americans -- more than $800 for the premium 60 GB version!). But I'm not
holding my breath. Why? Because I think that Sony's move was prompted by
Nintendo's less costly Wii, which has absolutely owned the next-generation
console buzz since E3. Microsoft hasn't particularly excelled at winning over
the Japanese crowd in the past, so it's easy to see why Sony may be more
concerned with the hometown favorite and lovable underdog Nintendo.

I'm not the only one who suspects that Sony has a little case of Wii-envy. Check
out the latest href="http://www.tgdaily.com/2006/09/22/sony_price_cut_nintendo_wii/">report
from Wolfgang at TG Daily.

September 27, 2006

Pestilence, War, Famine and MTV buying Guitar Hero - the end is nigh!

I so called this last month. In a column titled "Is MTV's Gaming Effort a Sign of the Apocalypse?" that I wrote following MTV Network's acquisition of casual and online gaming company Atom Entertainment, I hypothesized that MTV would soon be a bona fide gaming company that would develop and publish its own full-length games. Well, the day arrived sooner that I thought. MTV last week acquired Harmonix, the developer behind the acclaimed title Guitar Hero, for $175 million.

Here's what the head honchos at MTV had to say:
"The acquisition of Harmonix will deepen MTV's connection to its audience via
on-line, mobile and console music gaming, and expand the relationship with both
labels and artists through the creation of games based on classic songs as well
as future album releases," said MTV president Christina Norman in a press
statement. "Harmonix's technology allows everyone to pursue their rock and roll
fantasies, even people like me, with more musical ambition than actual talent."

"The acquisition of Harmonix advances MTV Networks' strategy of connecting with
target audiences by creating immersive, multi-platform environments that extend
to every device they use," said Judy McGrath, chairman and CEO of MTV Networks,
in a press statement.

Is MTV ready to be a big time game company? Well, it certainly needs a new
avenue because the network doesn't show videos anymore (as I pointed out in the
above column) and its reality TV programming is - how do I put this gently? -
complete and utter dog poo. In the column last month I wondered if a company
like MTV, which was producing crap content in one medium (TV) could branch out
and produce excellent content in another medium (gaming). I'm not sure if we'll
have the answer to this one for a while, but it will be interesting to watch
considering that MTV Networks is going with a convergence strategy.

MTV now has Atom (which boasts AddictingGames.com and Shockwave.com gaming
sites) as well as Xfire, the popular online gaming communication application,
which has more than 5 million registered users. With the addition of Harmonix,
which has Guitar Hero 2 coming out this November, MTV will have a formidable
gaming presence on which to build. But how in the world can MTV match up its
gaming strategy with its TV shows like "My Super Sweet 16" and "Pimp My Ride"?

For more on Guitar Hero, check out David Konow's story on href="http://www.twitchguru.com/2006/03/01/guitar_hero/">TwitchGuru.

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September 28, 2006

With the PlayStation 3 make Sony go bankrupt?

I remember a time when Sony was king of quite a few hills, and king of no bigger a hill than the video game console market. The word PlayStation is synonymous with a gaming box attached to the TV. Sony is master of this market no more, however, and the worry now is that they may crash out of it altogether.

To put it bluntly, I'm not sure if Sony could successfully organise a piss up in a brewery these days, where the gaming market is concerned. The first signs of worry came in 2005 with the PlayStation Portable. The handheld console is a nice piece of kit, but it's over expensive, dogged by piracy and poor format support in the form of UMD movies and games.

From a business point of view, Sony couldn't even roll it out to the world without a bit of a fiasco - anyone in Europe may recall that the entire European allotment of the PSP was shipped to North America, where expected frenzied buying never emerged, leaving Europeans to wait a half a year for the handheld and American warehouses full of them.

It's the PlayStation 3 which is the biggest concern for the company, however. I dunno about you, but when a company stands up and says "Expect it to be expensive, ohh and we're delaying it again... and hiking the price again... and not including some of its best features as standard, like HDMI cables... ohh, now we are, but we have to raise the price again because of it..." Well, I'm not particularly confident in that company. I'm even less impressed when they stand out on stage and arrogantly proclaim to the world at large that "The next-gen doesn't begin until we say it does" when, to be frank, if we left it up to them mankind would probably never get out of bed in the morning.

The PlayStation 3 is setting itself up to be a massive failure, at the very least a large loss-leader for Sony. This lot think that it might bankrupt the company entirely. I doubt that a little, but the numbers are interesting to look at; certainly the "next-gen" isn't going to make Sony a particularly rich company in the short to medium run.

When Microsoft came to market with the Xbox we all laughed at the massive losses the company was incurring - and still is incurring with the 360 - to grow itself a market position. Now Sony too is going to make a massive loss on their console... funny how the "norm" can switch so quickly to such a polar opposite position. It would seem that the boys at Microsoft have a lot more long-term brains than anyone has given them credit for with their games business.

HP gets gaming religion with VoodooPC

Hewlett-Packard appears to be following the strategy of its archrival Dell. Following Dell's acquisition of high-end PC maker Alienware earlier this year, HP announced later today that it has acquired VoodooPC, another high-end PC manufacturer and Alienware competitor. Terms of the agreement haven't been disclosed because the Calgary-based computer company is privately held. Rahul Sood, founder and co-owner of VoodooPC, will become the chief technologist of HP's gaming division while Ravi Sood, Rahul's brother and co-owner, will become the division's director of strategy.

Rahul Sood announced the acquisition on his href="http://voodoopc.blogspot.com/2006/09/project-vampire-is-about-to-
fly_28.html">blog
. Sood had made news back in March when he suggested in his
blog that Dell would buy Alienware - before the Alienware
acquisition was announced - and then followed up by disclosing in his blog last
month that he and Michael Dell had discussions in 2005 about the possibility
earlier of Dell buying VoodooPC. According to Sood's href="http://voodoopc.blogspot.com/2006/08/where-theres-smoke-theres-
fire.html">blog entry
on those discussions, he felt direct computer maker
wasn't a good fit for VoodooPC because Dell lacked innovation and it "lost its
way a long time ago."
Instead, VoodooPC will become part of HP. Sood wrote in his blog that he feels
HP, with its history of innovation and current management leadership, is a
better fit for his company. Sood continues:
"HP is hungry for new innovations, and if you can imagine what plugging our
corporate DNA into their labs would do - well, you get the picture. We are now
in the position to create absolutely fantastic products in all categories.
Voodoo and HP are complimentary opposites. This deadly combination of Voodoo's
gaming/luxury PC expertise and our brand DNA and influence, with HP's
innovations, scale, and leverage is going to lead to some of the most compelling
machines money can buy."

This is an interesting development for several reasons. First and foremost, I'm
surprised but glad that both Dell and HP, the top two PC makers in the world,
are taking gaming seriously. Second, I have to wonder if this will begin a trend
that will lead to fewer and fewer independent boutique computer makers that
create truly awesome gaming machines. Third, it will be interesting to see how
being part of huge multibillion dollar technology corporations will change
VoodooPC and Alienware. Will innovation be stifled or will having access to
great technical minds and lots of R&D (well, at least in HP's case) propel
the computer makers to new heights?
Whatever the case, I suppose the bottom line may be that the death of the PC was
greatly exaggerated. At my previous gig covering business IT, all we heard about
after 2001 was that PCs were a dead end business, especially after IBM sold its
PC business to Lenovo. But it's shaping up to be a fascinating time for PCs once
again and we may indeed start to see some true innovation real soon.

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October 5, 2006

Another One Bites the Dust - EA buys DICE and closes Canadian division

Electronic Arts has published a number of great games, but the company doesn't exactly have the greatest track record when it comes to acquiring game developers. For example, EA acquired Origin, Westwood Studios, and Bullfrog only to lay off the developers' employees or watch them leave EA because of creative disagreements and quality issues. As a result, EA has been blamed for producing a number of half-baked games that were rushed to completion. In addition, a number of highly anticipated games like the MMOs Ultima Online 2, Ultima X: Odyssey and BattleTech 3025 have been cancelled under EA's watch.

So it's easy to understand why fans of the Battlefield series are a little
ticked off these days, since EA finally completed its contested acquisition of
Swedish developer Digital Illusions Creative Entertainment (DICE). Originally EA
proposed the buyout in 2004, but two DICE shareholder groups controlling 28
percent of the stock opposed the deal. Nevertheless, DICE's board of directors
recommended that its shareholders accept the deal. After buying the majority
stake in DICE last year, EA sealed the deal this week. Thus, DICE became an EA
subsidiary studio.
Of course, EA announced today that it has closed down DICE's Canada operation,
Digital Illusions Canada in Ontario. So those Canadian developers didn't last
too long. EA has tried to put a nice face on this by saying that many Digital
Illusions Canada employees are being interview for other employee opportunities
in EA's Canadian locations. The only problem is, those locations are Burnaby,
Montreal and Vancouver, not Ontario.

The perception is that once EA buys a game developer the games will never be the
same because the publisher keeps the intellectual property but guts the studio
and dumps the employees. The scuttling of Digital Illusions Canada does little
to dispel that notion. I have a feeling that Battlefield 2142, due out this
month, may be the last Battlefield title many fans buy now that there's been a
changing - and dumping - of the guard.

November 1, 2006

Nintendo Wii to make double the revenue of Sony PlayStation 3 at launch