Microsoft stunned the video game world on Monday with the announcement of its forthcoming 'Project Natal' technology, full-body motion-sensitive technology that should allow gamers to do what they want without holding on to any hardware.
(Credit: Daniel Terdiman/CNET)LOS ANGELES--For those of you who have been waiting for some really big news to come out of the video game industry, Microsoft answered your call Monday with its innovative "Project Natal," a hands-free motion-sensitive controller system.
Announced during Microsoft's annual E3 press conference, Project Natal seems almost certainly to be the culmination of several years of work by an Israeli start-up called 3DV Systems, which Microsoft recently acquired.
The technology, as demonstrated (see video below), appears geared toward allowing users to control games, movies, and anything else on their Xbox system with their hands alone, and without touching any hardware.
A prototype of 3DV Systems' motion-sensitive video camera, the technology that is most likely behind Microsoft's Project Natal, which it announced at E3 on Monday.
(Credit: Jared Kohler/CNET)Now, in what is clearly an attempt by the Xbox maker to significantly broaden the potential reach of the console and its Internet component, Xbox Live, Microsoft is betting that it can finally impress many of the millions of people who would never, ever consider themselves gamers but who somehow ended up with a Nintendo Wii in their homes.
How did Nintendo manage to break that barrier? By building a new-style motion-sensitive controller system that allowed users to direct game action by waving the controller around. To swing an in-game tennis racket, you swing the so-called Wii-mote like a tennis racket. To play a bowling game, you swing the Wii-mote in a bowling motion.
Natal, by comparison, provides much of that same functionality, but without having to hold on to the controller. Want to kick a ball in a game? Then make a kicking motion. Want to buzz in in a game show setting? Smack your fist into your hand. Want to share a drawing with an in-game avatar? Draw it and then hold it up to the Natal camera. As seen on-stage at E3, at least, it's all very simple, and very seamless.
So is Project Natal Microsoft's answer to the Wii-mote?
"And beyond, yeah," said Forrester principal analyst Paul Jackson. "Obviously, we've all got, in the game industry...a huge debt to pay to Nintendo for shaking things up a bit with the Wii, and for moving beyond the 37 button controller. This is taking things to the next extreme. Because even with the Wii, you still have (several) buttons, start and select. It's still a physical controller."
Added Jackson, Project Natal looks likely to "remove that final barrier between you sitting in your room and...what's on your screen."
Even given all that, however, a successful Natal launch is unlikely to knock Nintendo from the top of the next-generation console perch. The Wii's install base is huge, loyal and, in many cases, wary of Microsoft. And at the same time, one would have to expect that Sony, too, will be trying to get on the board with a full-scale motion-sensitive system.
Too early to tell
While there's no doubt that Microsoft caught everyone's attention with the Project Natal announcement, it's by no means certain that it will be a business success. For one, the company gave no indication of when the technology would be in users' hands. Nor did Microsoft say whether it would be sold as an Xbox accessory or be bundled with the console.
Microsoft Xbox Senior Vice President Don Mattrick did state that Project Natal would be compatible with every Xbox 360. But he didn't address how much it would cost, or whether it would be backward compatible with older Xbox 360 games. And afterward, Microsoft could not provide any additional details about the technology.
What this all means, then, is that while it's very clear Microsoft has some seriously cool technology on its hands, there's no way to judge--based on what we know right now, at least--whether Microsoft can successfully integrate Natal into its larger Xbox ecosystem. Still, given the company's deep pockets, and its traditional dedication to making new technology dominant, no matter how long it takes, I'd bet on Bill Gates & Co., having a winner with this one.
For one thing, Microsoft will finally have a response to the question of whether it can truly reach the mainstream. At the same time, however, it must find a way to attract that new audience while not alienating its core audience.
That's why Jackson said that no matter what happens with Natal, Microsoft is unlikely to abandon its traditional controller. It has to keep those core gamers, the ones who simply have to have their regular "Halo 3" gaming sessions, happy.
Jackson predicted that initially, Microsoft will sell Natal--or whatever it's called upon its release--in the $99 range. He pointed out that traditional controller systems come in the $50 range, but that Microsoft is going to have to pack some serious high-tech into Natal--a motion sensor, sophisticated directional microphones and video cameras.
SDKs begin arriving
On-stage at E3, Mattrick said that the Project Natal software development kits had just gone out. This means that while most of the video game world is in Los Angeles this week for the show, few people have had a chance to see it.
One who did get a sneak peek at Natal is Epic Games Design Director Cliff Bleszinski, the visionary behind "Gears of War."
"I had a chance to be hands-on with (Natal) a couple weeks ago," Bleszinski told CNET News, "and it was damned fun." But even Bleszinski said he hadn't gotten his hands on a SDK yet, and wasn't able to say anything about the development process.
Director Steven Spielberg came on-stage during the press briefing to praise Microsoft's approach to the mainstream audience with Project Natal.
(Credit: Daniel Terdiman/CNET)And while one should always take what is said during a press conference with a grain of salt, one would think that someone like legendary film director Steven Spielberg wouldn't heap praise on anyone or anything unless he really meant it. And when he came on-stage during the briefing Monday, heap praise on Natal is exactly what he did.
"I've been asking the crucial question: how can interactive entertainment become as approachable as other forms of entertainment?" Spielberg said. "The vast majority of people are just too intimidated to pick up a video game controller...Despite the size of (the video game) industry, still 60 percent of households do not own a video game console...The only way to bring interactive entertainment to everybody is to make it invisible."
So now we wait. Jackson said given the time frame of the SDKs and how long it takes developers to bring games to market, it would be unlikely that we would see Natal in gamers' hands before the middle of next year. In fact, given that time frame, E3 2010 may be a perfect place for Microsoft to formally launch the technology.
And whether it chooses to do so, it seems guaranteed that when Microsoft takes the stage for its E3 2010 press briefing, it will have some very big news in its pocket.
While you may think that the economic news is totally bleak, the video game industry seems like it may well be one very bright exception to the worldwide gloom.
Bolstering the theory that the industry may be recession-proof, or at least better positioned to weather the storm than most, the video game business posted a startlingly strong November, according to figures released Thursday by the analyst firm, NPD Group.
NPD reported that overall, the industry posted sales of $2.91 billion, up 10 percent from $2.64 billion in November 2007. And for the year, sales stand at $16.04 billion, up 22 percent from $13.14 billion through November a year ago.
This is good news, clearly, for those in video games, but also a rare ray of sunshine on an otherwise destitute economy, particularly, NPD pointed out, because the November sales numbers included seven less post-Thanksgiving days than last year.
Once again, the biggest winner was Nintendo, which sold an astounding 2.04 million Wiis, as well as 1.57 million Nintendo DS handhelds. By contrast, Microsoft moved what it said was a company November record of 836,000 Xbox 360s and Sony sold just 378,000 PlayStation 3s and 421,000 PlayStation Portables.
November, therefore, was a major vindication for Nintendo, whose Wii far outsold the Xbox 360, despite Microsoft's having dropped the price of its lowest cost console to $199, lower even than the Wii's sticker price of $249.
However, Microsoft can smile about the fact that the two top-selling console games SKUs in November were for the Xbox, Gears of War 2, with 1.56 million units sold, and Call of Duty: World at War, with 1.41 million moved. The PS3 version of Call of Duty sold just 597,000 copies.
Activision Blizzard also has bragging rights, however, as its World of Warcraft: Wrath of the Lich King sold a record 2.8 million copies on its launch day, November 13, alone. Figures aren't available for the full month.
So, it's clear that video games are doing well right now. The question that faces the industry--now more so than other sectors, though--is whether it can sustain its success in the face of a global recession the likes of which haven't been seen since the Great Depression. It's one thing to sell well before the holidays. It's quite another to do well once the gifts have all been opened and people are realizing they have no jobs and their houses are worth less than their mortgages.
Still, it's nice to see a sign that consumers are still willing to spend their hard-earned and dwindling dollars. Let's hope that continues to be true.
Stay tuned.
Electronic Arts' vice president of corporate communications, Jeff Brown, holds up a disc containing the first completed code of 'Spore,' the company's long-awaited evolution game from Maxis and Will Wright.
(Credit: Daniel Terdiman/CNET News)REDWOOD CITY, Calif.--Electronic Arts announced partnership deals with two independent games companies Thursday, including Gears of War publisher Epic Games.
The news of the two new members of the EA Partners program, which also revolved around Japan's Grasshopper Manufacture, publisher of games like No More Heroes, was part of EA's annual Studio Showcase event here.
During just over an hour of announcements and presentations, EA showed off 17 games it didn't show at E3 last month, as well as unveiled the partnerships.
Grasshopper Manufacture will create an all-new action horror game for EA. It will be produced by Shinji Mikami and directed by game designer Suda51.
It was too early, however, for EA or Grasshopper to go into any specifics about the title, and no launch date was given.
Similarly, the Epic announcement was solely about the relationship and no details at all were given about the substance of that partnership, other than that Epic's Poland-based People Can Fly studio would be building an action game for EA.
Beyond the new partnerships, there was little substantial news.
EA's vice president of corporate communications, Jeff Brown, started off the event by holding up a disc he said contained the first full "gold" version of Spore, the forthcoming evolution game from Maxis Studios and famous designer Will Wright.
Spore went gold Thursday, meaning that development on the game is finished and it has now gone to manufacturing. It will be released September 7.
Brown also joked that in the aftermath of the much-hyped signing of football quarterback Brett Favre by the New York Jets, EA had decided to post a new version of Madden Football online, since the boxed version had just come out featuring the then-retired Favre wearing his iconic Green Bay Packers uniform.
"Within two hours...100,000 people downloaded the new cover," Brown said. "That's not a lot of people for the Internet, but about 75,000 people more than went to the last Jets game."
Brown said that 100,000 people had downloaded a new digital version of the box cover for 'Madden '09' with Brett Favre in a New York Jets uniform, joking that that was '75,000 more than went to the last Jets game.'
(Credit: Daniel Terdiman/CNET News)There was also a short presentation on The Godfather 2, the sequel to EA's The Godfather, and it appears that that game will be released in February 2009.
Later, Paul Barnett, the creative director for Mythic, which is producing Warhammer Online, a full massively multiplayer online game, for EA, said that the title will be released on September 18. He also said that more than 800,000 people had signed up to play the game and that there had already been 120,000 pre-sales.
All in all, that was the extent of what seemed newsworthy. But it's not surprising that there would be a lack of big news, given that the E3 conference was just a month ago. Things move fast in the video games industry, but not that fast.
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