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November 12, 2009 4:31 PM PST

Video game sales fall off a ledge in October

by Daniel Terdiman
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U.S. video game industry sales plunged in October, dropping 19 percent from a year earlier, and 16.4 percent from September, according to data released Thursday by the NPD Group.

But with the tremendous, record-breaking, out-of-the-gate performance of Activision's Call of Duty: Modern Warfare 2 and the coming holiday season, NPD is bullish on the industry's fortunes for November.

Still, the $1.07 billion in total sales turned in by the industry in October were paltry, compared with $1.32 billion in October 2008 and $1.28 billion in September 2009. NPD analyst Anita Frazier tried to soften the blow a little bit in her monthly report, noting that while sales were down precipitously in October, it was still the third-best October sales report turned in by the video game industry.

"The continued economic turmoil, and in particular the troubling unemployment rate, is undoubtedly impacting industry sales," Frazier wrote in a statement. "Our latest Economy Tracker indicated that although consumers' general opinion about the economy is improving, their outlook on their own personal situation is worsening. If consumers' personal outlook continues to erode, they could very well be much more conservative with their holiday shopping this year."

That last sentence is no doubt one of the most chilling group of words imaginable to the honchos at companies like Microsoft, Sony, Nintendo, Electronic Arts, Activision, and many others involved in putting video game hardware and software in consumers' hands, especially as their most important sales months of the year are now at hand.

As always, regardless of the monthly results, the big console makers each had some things to celebrate in the NPD numbers.

For Nintendo, which has seen sales of its once-high-flying Wii dip and perceptions that the console's days of seeming infallible may be over, the numbers had some hope: in October, the Wii took back first place among the consoles--respectively the Wii, Microsoft's Xbox 360, and Sony's PlayStation 3. In October, Nintendo moved 506,900 Wiis, beating out the PS3 (320,600) and the Xbox (249,700).

Sony was coming off the first month the PS3 won since being launched in the fall of 2006, but while the console was beaten out by the Wii, there must certainly be some measure of gratification in having the PS3 come out ahead of Microsoft's console offering.

"In October, we saw continued momentum [for the] PS3, with nearly 70 percent growth, when compared to last October," Peter Dille, Sony Computer Entertainment of America's senior vice president of marketing, said in a statement. It was "the only console to see any growth year over year."

NPD itself touted Microsoft's chief bragging point for October: "Across all categories, the Xbox 360 platform contributed the greatest portion of total industry sales, representing 27 percent of total industry sales for the month," Frazier wrote.

Yet despite the record-smashing first-day sales posted this week by Call of Duty: Modern Warfare 2, the video game industry as a whole is facing a very painful reality: If sales don't improve quickly, there will be layoffs, slashed budgets, canceled games, and more.

Electronic Arts, for example, announced this week that it is planning to lay off 1,500 people as part of a major restructuring--the company's latest--and as a way to stave off growing losses.

And while the industry may have hoped that console sales--especially with prices for next-generation hardware now at their lowest levels ever--would help it rebound, Frazier did not offer much hope.

"Year to date, the hardware category has experienced the sharpest decline in the industry, with unit sales down 10 percent compared to the same time period last year," Frazier wrote. "Recent price cuts helped spur a one- to two-month increase in unit sales, and this month's Wii sales reflect that boost, but the other platforms have not sustained the sales momentum [after] price reduction."

Originally posted at Geek Gestalt
October 27, 2009 1:49 PM PDT

GoldenEye 007 coming to the Wii in 2010?

by Don Reisinger
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This is nothing more than a huge rumor at this point, but gaming-industry site Superannuation is reporting that it has found a resume posted by a video game animator claiming to have worked on an unannounced GoldenEye 007 game for the Nintendo Wii.

GoldenEye 007

Remember this level in GoldenEye 007?

(Credit: Screenshot by GameSpot)

According to the report, the animator worked for Eurocom Entertainment Software, a company that has worked on several versions of James Bond titles, including Quantum of Solace and James Bond 007: Nightfire, between July and September.

The job listing said the person worked on "GoldenEye 2010 (Wii)." According to Destructoid, which also viewed the resume, the job description read, "Animator on Activision's James Bond series for the Nintendo Wii assisting in: Key frame animation, the preparation and clean-up of motion capture data, prop animation, in-game cut-scene animation, scene layout, and camera animation."

The resume was eventually pulled down from the site from which Superannuation accessed it.

Since its release in 1997, the iconic GoldenEye 007 has been the subject of several rumors claiming that a follow-up was on the way. But after Microsoft acquired Rare, the game's developer, in 2002, and Activision acquired the James Bond game rights in 2006, several licensing roadblocks were erected, limiting the chances of such a release.

Neither Activision nor Nintendo immediately responded to request for comment.

Considering that Nintendo and Activision are mum on a possible GoldenEye release for the Wii, it might be safer to assume that those roadblocks are still in place. But that doesn't mean that there aren't discussions going on behind the scenes to pave the way for the GoldenEye release. At this point, we just don't know.

So, let's hear from you. Do you think that this is the smoking gun for which GoldenEye fans have been waiting? Will GoldenEye 007 come to the Wii next year? Let us know in the comments below.

Originally posted at The Digital Home

Don Reisinger is a technology columnist who has written about everything from HDTVs to computers to Flowbee Haircut Systems. Don is a member of the CNET Blog Network, and posts at The Digital Home. He is not an employee of CNET. Disclosure.

September 5, 2009 7:00 PM PDT

Hands on with The Beatles: Rock Band

by Dan Ackerman,
Jeff Bakalar
and
Scott Stein
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On September 9, classic rock fans will have a chance to strap on a plastic guitar and jam along with the biggest act in popular music history.

Artfully orchestrated buzz has been building for The Beatles: Rock Band since the start of 2009, and the team of developer Harmonix and publisher MTV Games (and distribution partner EA) hope to provide a bright spot in an otherwise drab video game market with one of the few video game products for the 2009 holiday season that has a real chance of appealing beyond core gamers.

We've gotten our hands on a final retail version of the game (minus the new Beatles-inspired instruments, but our old Rock Band gear worked fine), and gave it a test drive in CNET's AV Lab. Check out this video to see our extremely shaky music skills, and read our hands-on impressions below.

Dan:
Music aside, this is essentially the same Rock Band game you've been playing for two years, but with nicely done overhauls of the menus, graphics, and interface, including some very cool animated Beatles segments. The biggest change to the actual gameplay is the inclusion of three-part vocal harmonies (you'll need three USB mics). We found out the hard way that these songs are actually pretty tough to sing, and nailing the harmonies is even tougher.

... Read more

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Originally posted at Crave
August 19, 2009 10:00 PM PDT

World of Warcraft jumps into print

by Daniel Terdiman
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You might think that starting a brand-new, high-quality, full-glossy magazine in one of the worst publishing environments in years would be a suicidal business idea. After all, take a look at just about any magazine you can think of, and, thanks to the veritable collapse of advertising, odds are it's about as thin as can be.

But to the folks at Future--a leading games media publisher--the time couldn't be better to launch World of Warcraft: The Magazine, a new quarterly title that is expected to be unveiled at this weekend's BlizzCon event--the world's biggest World of Warcraft fanfest--in Anaheim, Calif. The magazine will be the "official" WoW magazine, and is both endorsed by and produced with the editorial cooperation of WoW publisher Activision Blizzard.

And, indeed, the timing for the forthcoming magazine is clever: The first issue is planned for sometime this fall, just as WoW celebrates its fifth anniversary. And with an astounding 11.5 million players of the game now spread out around the world, Future is hoping that by promising potential readers stunning artwork, behind-the-scenes looks at ongoing development, deep dives into the game's lore, and perhaps even occasional scoops about new features or other WoW elements, it will offer fans an invaluable experience. In fact, Future sees this magazine as something along the lines of a collectible coffee table book.

Still, Future has chosen a difficult business model for the new publication. Each issue is expected to be 148 pages long, with precisely zero ads, which means that the title is shut off from traditional magazine revenues, and therefore will rely entirely on subscription fees. On the other hand, that same dynamic also means that it should be shielded from the vagaries of the advertising market, something that is currently taking down one magazine after another.

According to Future, World of Warcraft: The magazine will be offered for subscription only--no single copy sales--with U.S. readers paying $40 annually, those in continental Europe 35 euros and the British 30 pounds. The magazine will be published in English, French, German, and Spanish.

"The magazine market is suffering a rough time," said John Gower, the international director of FuturePlus, the title's publisher, "but only those magazines that are based on advertising models. We've seen our magazines increasing across the board, especially the hobbyist" titles.

That may be true, but in order to support what the publishers say will be a costly blend of commissioned art, in-depth articles written by veteran journalists and behind-the-scenes access, Future will have to convince a great deal of its players that it's worth their while to pony up $40 on top of their $15 monthly game subscription fees, even as those same players can find an enormous amount of WoW-related information online.

And that proposition is clearly not for everyone, even some of the most passionate WoW players.

... Read more
August 10, 2009 10:00 AM PDT

Guitar Hero 5 gets ready to rock

by Daniel Terdiman
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In the newest version of the Guitar Hero franchise, Guitar Hero 5, as many as four players can all play guitar at the same time, instead of just two. Further, any combination of instruments is now possible.

(Credit: Activision Blizzard)

SAN FRANCISCO--The first couple of weeks of September are going to be a banner time for music video games. On September 9 (09/09/09), the much-anticipated The Beatles: Rock Band will hit store shelves, just eight days after Guitar Hero 5 gets its chance to rock living rooms everywhere.

With the Beatles game, it's easy to imagine long lines and huge sales figures. After all, this will be the first time that any of the recent slew of music-oriented video games will feature any Beatles songs, let alone dozens of them.

But with Guitar Hero 5 (see video below)--has so much time gone by already that there could even be five Guitar Hero releases?--one has to work just a little bit harder to envision the big bucks that its publisher, Activision Blizzard, surely is hoping to bring in.

Still, the guys at Neversoft, the game's developer, have proven time and again that they know what they're doing. The Guitar Hero franchise has produced hundreds upon hundreds of millions of dollars in revenue and created a dynamic in which people everywhere are now comfortable picking up and jamming away on a guitar, albeit a plastic one with buttons instead of strings.

And with that in mind, one has to give the Neversoft team the benefit of the doubt for their new game, which will be released for all the major video game platforms.

On Thursday, I stopped in at a Guitar Hero press event here and had the chance to speak with two of the executives most responsible for the new game: Brian Bright, the project director at Neversoft for Guitar Hero 5, and Tim Riley, who oversees the Guitar Hero franchise's music licensing.

Among the big-name rock stars who appear in Guitar Hero 5 as characters is Carlos Santana.

(Credit: Activision Blizzard)

One of the things I was most interested in was the rationale for a new Guitar Hero game. To be sure, game companies like Activision Blizzard, Electronic Arts, and Take-Two have a mandate to generate massive revenues, and so franchises like Guitar Hero are tried and true in that regard. But in spite of that, each new edition of a franchise game has to have something significant to offer to entice enough customers to earn its keep.

To hear Bright tell it, the best rationale for Guitar Hero--besides its 85 new songs by 83 artists--is its "Party Play" mode in which players can jump in or out of songs any time they please, all with the click of a single button.

What that means, Bright added, is that Guitar Hero 5 will offer a potentially broad new audience an entirely new level of "accessibility," in particular because in the previous versions, many people playing for the first time would have found themselves needing a little hand-holding to get started. Now, he said, that's no longer the case, and players new and old will be able to easily and quickly go right into rocking out.

Another important Guitar Hero 5 innovation, Bright said, is an "any instrument" selection that will, for the first time, allow more than two people to play guitar at the same time rather than someone in a foursome having to play drums and someone having to sing. And even if there isn't a mad rush to grab a guitar, this features means that any combination of instruments is, for the first time, possible, whether a group is playing cooperatively or competitively.

Downloadable content
Given that many players of the game's previous iteration--Guitar Hero: World Tour--likely paid to download songs, Activision is making it possible to port most of those songs to Guitar Hero 5. The company said 152 of the 158 downloadable songs from the earlier game will be compatible with the new one, though users will have to pay a "nominal re-licensing fee," the amount of which the company hasn't publicly spelled out yet.

Among the innovations in Guitar Hero 5 is the ability for Xbox players to use their Xbox Live avatars.

(Credit: Activision Blizzard)

And that means that with the 85 songs Guitar Hero 5 comes with, plus new downloadable songs, the new game's players can have set lists of potentially hundreds of songs, Bright said.

I wanted to know a little bit more about how Activision persuades musicians to allow their songs to be included in Guitar Hero, especially after learning how the Beatles were won over for the forthcoming Rock Band game.

Riley, the publisher's music licensing specialist, said that as the Guitar Hero franchise becomes better-known, he and his team have an easier time of it. In part, that's because "the larger the game gets, the more known it gets within the (music) industry (and) with the artists themselves."

And that means that Riley and his team have now had the chance to get musicians like Arctic Monkeys and Elliott Smith--whom they've never worked with before--to contribute songs to the game. Indeed, he said Guitar Hero 5 features songs from nearly 20 artists who have never allowed their music to be in a video game before.

Of course, it doesn't happen overnight. In the case of Arctic Monkeys, Riley explained, it took multiple visits with the band to show them demos and explain what the Guitar Hero franchise is all about to get permission.

One big factor, Riley added, was being able to assure artists that their music is "safe" in Guitar Hero, meaning that users won't be able to easily pirate the songs from the game.

At the same time, he explained that for a lot of musicians, games like this are now seen as an attractive way to get their music in front of large audiences, particularly because the record industry is becoming more and more notorious for doing a poor job of helping distribute new music.

"Just by having a song in the game," Riley said, "kids become familiar with the song, or the artist, and will go out and buy (it) or go out and purchase more music from that artist."

August 6, 2009 4:45 PM PDT

Brutal Legend suit settled out of court

by Brendan Sinclair
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In the legal dispute over heavy metal action game Brutal Legend, Activision and Double Fine Productions have reportedly buried the hatchet. Or more appropriately, the ax.

A scheduled Los Angeles Superior Court hearing in which Activision was to argue for a judge to block the release of Brutal Legend was canceled Thursday, the Associated Press is reporting. The publisher's attorneys said a settlement was reached, negating the need for the hearing, a representative of the court told the AP.

The settlement presumably clears the way for Eddie Riggs to go to hell. Wait, who won this again?

(Credit: Double Fine Productions)

No notice of settlement has been filed in the case, and there are no details as to the terms of the settlement. Representatives with Double Fine, Activision, and Electronic Arts (which is currently set to release the game through its EA Partners program) did not immediately return GameSpot's requests for comment.

Brutal Legend stars Jack Black as rock 'n' roll roadie Eddie Riggs, who must battle demons in hell.

The legal tiff over the game began at the Electronic Entertainment Expo in June, when Activision filed a lawsuit to prevent the release of Brutal Legend. Activision claims that even though it declined to release Brutal Legend after merging with original publisher Vivendi Games, it never lost the rights to put the game out.

As a result, Double Fine wouldn't have been free to shop the game around and secure the help of EA Partners in preparing Brutal Legend for its currently scheduled October 13 launch.

Earlier this month, Double Fine countersued, accusing Activision of unlawful business practices and trying to prevent the game's release to thin out potential competition to the publisher's own Guitar Hero franchise. The countersuit mentioned an aborted attempt to make Brutal Legend an extension of the Guitar Hero franchise and said Double Fine's continued existence hinged on the game's successful release.

Brendan Sinclair reported for GameSpot.

June 19, 2009 11:12 AM PDT

Activision CEO calls for PS3 price cut

by David Carnoy
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(Credit: Sony)

Apparently, it's not just CNET readers but game developers who are among those demanding Sony cut the price of the $400 PS3. In an interview with the London Times, Activision CEO Bobby Kotick has some strong advice for Sony and threatened to pull its support for the console.

"They have to cut the price, because if they don't, the attach rates (the number of games each console owner buys) are likely to slow," Kotick said. "If we are being realistic, we might have to stop supporting Sony." As for the timing on that, he adds: "When we look at 2010 and 2011, we might want to consider if we support the console--and the PSP (portable) too."

For its part, Sony, which is mired in third place behind Nintendo and Microsoft in the next-gen game-console wars, keeps saying it won't be pressured into trimming the price of the PS3. But with industry heavyweights like Activision making these types of remarks, it's becoming more and more clear that the pressure is indeed on.

Should Sony hurry up and wilt under the heat? Or should it stick to its game plan, whatever it is?

(Source: Times Online via TG Daily)

Originally posted at Crave
May 7, 2009 3:05 PM PDT

Introducing DJ Hero (do we need another Hero?)

by Scott Stein
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No more Heroes.

(Credit: Activision)

Forget new consoles: if game publishers got their wish, we'd stick with the system we have and just buy endless peripherals. Activision's latest announcement in its ever-growing Hero series is DJ Hero, a new game focusing on the joys of being a turntable-spinning club god.

While the idea could be pretty fun--in fact, Konami already semi-explored it in Beatmania--the new turntable accessory, while pretty, is yet another plastic device to tuck under the television and get dusty.

Activision claims that a big part of DJ Hero is the live remixing of popular songs across genres, as would be expected. If that means mashups, then this could get pretty wild.

Regardless, let us reflect for a moment on the plastification of modern gaming. This generation's peripheral count is skyrocketing--DDR mats, cameras, Wii Fit boards, wheels, Wii MotionPlus dongles, big-button game show controllers, and a tremendous plastic band list of guitars, drums, mikes and extra bass pedals. About the only thing we're missing is a synthesizer, a cowbell, and a didgeridoo. Count up the amount you'll spend on old and new versions of all these plastic tzochkes, and it'll make any grown person cry.

No pricing has been announced yet for the game's debut this fall, but it'll obviously cost more than a game that had no peripheral at all.

(Via Kotaku)

Originally posted at Crave
March 27, 2009 4:00 AM PDT

Lessons to glean from social gaming

by Daniel Terdiman
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At GDC Thursday, Kristian Segerstrale, CEO of PlayFish, one of the most successful publishers of games for Facebook and MySpace, talked about five lessons he thinks the mainstream games industry can learn from social games.

(Credit: PlayFish)

SAN FRANCISCO--While Nintendo's Wii continues to outpace expectations and certain games are making fortunes for their publishers, a strong argument can be made that the hottest segment of the video games industry is one that is still in its infancy: social games.

These titles, which are popping up by the bushelful on platforms like Facebook and MySpace, as well as on Apple's iPhone, are garnering user numbers that would previously have been thought impossible. And in a deep recession, when even the strongest console manufacturers and biggest game publishers are being forced to shut down projects and lay off workers, people have no choice but to sit up and take notice.

At the Game Developers Conference on Thursday, Kristian Segerstrale, the CEO and co-founder of PlayFish, one of the most successful publishers of social games, upped the ante, stating his case for how the mainstream video games industry can learn from his side of the business.

In his talk, "Five lessons from social games that matter to the rest of the games industry," Segerstrale argued that while the nature of the social games business differs significantly from that followed for many years by the more traditional, retail-oriented publishers, times are changing, customers' behaviors and expectations are shifting rapidly, and the winning model may well be the new one.

PlayFish's roster of games, including the mega-hit Who Has the Biggest Brain is illustrative of the popularity games can achieve on services like Facebook. Segerstrale said PlayFish has had 60 million players, averages about 25 million monthly users and 5 million daily players, and currently has 5 of the 10 most popular applications on Facebook. And by itself, Who Has the Biggest Brain has been played a total of 500 million times by 15 million people, he said.

With numbers like that, it's clear why Segerstrale feels he has some lessons to teach the rest of the games industry. And while the traditional retail games model has been relatively unchanged for decades and remains strong today, he said he sees signs that the Electronic Arts, Activisions, and Take-Twos of the world, not to mention the countless other game developers and publishers out there, may need to rethink their methodology.

One harbinger of that need for change is evident even within the traditional games business itself, he pointed out. He said that Nintendo established the Wii as a sleeper hit by exploiting a wide range of people's desire to be social with friends and family. And he explained that Nintendo itself is well aware of this, as evinced by ads for the Wii that show groups of friends playing gleefully. Yet the real estate in the ads devoted to showing the games themselves is minimal; it's the image of the social activity that sells the Wii.

"This is about you and your real-world relationships," Segerstrale said, "which is ultimately much more important than anything that happens between you and your screen...That's why you're playing. You're playing together, not because you're trying to beat the boss in level 10."

... Read more
March 3, 2009 1:23 PM PST

Court tosses Gibson's Guitar Hero suit

by Leslie Katz
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A California court has tossed out Gibson Guitar's patent infringement lawsuit against Guitar Hero maker Activision, saying Gibson's arguments "border on the frivolous."

The iconic guitar manufacturer filed suit in March 2008, charging that Guitar Hero's mock guitars infringed on a 1999 patent, U.S. Patent No. 5,990,405 (PDF).

Guitar Hero image (Credit: Activision)

That patent, also known as "The '405 Patent," covers "a system and method for generating and controlling a simulated musical concert experience." Specifically, it details a head-mounted display that includes stereo speakers and is worn while playing an instrument along with a simulated concert.

Earlier that same month, in a series of legal volleys preceding the suit, Gibson filed for declaratory relief--asking for compensation, in other words. But Activision decided it didn't need a license under Gibson's patent and said so in a legal countermeasure. Then came Gibson's suit.

In last week's ruling (PDF), a U.S. District Court basically decided that Gibson's patent only applies to devices that output an analog signal. "As a general observation, no reasonable person of ordinary skill in the relevant arts would interpret the '405 Patent as covering interactive video games," the ruling stated.

The court added that Gibson's interpretation of its patent could be extended to cover things from a "button of a DVD remote...to a pencil tapping a table."

But Activision isn't Gibson's only target. It sued major retailers--including Amazon, Target, Wal-Mart, and K-Mart--that sell games like Guitar Hero and Rock Band. Plus, it added MTV, Harmonix, and Electronic Arts to its list of plaintiffs. MTV, which acquired Guitar Hero developer Harmonix in 2006, uses EA as the distributor for Rock Band and is likely turning up the celebratory tunes following the Activision ruling.

Originally posted at Crave
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