Gaming and Culture

The Nintendo Wii remains a force to be reckoned with in the video game world and new survey statistics along with new revenue streams suggest that Nintendo has still has something up it's sleeve.

Wii 'Theater no Ma'

(Credit: Nintendo)

The Wii and Wii-related gear were wished for twice as much as the Sony PS3 and Xbox 360 combined though 38 percent of people wanted something other than products--namely cash, and in one case, Satan (I assume for a visit, not as a full-time family member.)

And while a wish, or a request for a gift, is no guarantee that a product will actually sell, there is a dearth of exciting gifts for this holiday season, leaving room for the Wii and other less-new products to be successful.

Just a few weeks ago, Electronic Arts CEO John Riccitiello commented that the "Wii platform has been a little weaker than we had anticipated" but Nintendo of America's executive vice president of sales and marketing Cammie Dunaway was extremely positive about the current sales and the future growth.

But, the focus in the U.S. remains on selling more titles and accessories, not branching out into additional services such as we've seen with Microsoft's Xbox Live, which provides access to Facebook, Twitter, and Last.fm through the console.

Services supporting the Wii are much more sophisticated in Nintendo's home country of Japan, where the company previously launched an advertising program to turn family time into a commercial endeavor and a catering channel that lets users order food from a variety of vendors directly through the console, delivered directly to their front door.

This weekend Nintendo added to the Wii's variety of interactive offerings, with a paid video download service for Japan. "Theater no Ma" will offer a range of movies, anime and other paid content from providers including Walt Disney and Sesame Workshop.

Downloading rental content onto game consoles and set-top boxes has been common in the U.S for awhile, but the reason this service could prove meaningful in Japan is because Nintendo researchers previously found that 87 percent of Wii users use the console on the biggest screen in the house, which is still the one in the living room.

There is a view that removing all 15-year-old boys from this earth would not only help global warming but also our cultural horizon.

Supporters of this view will then be heartened to hear the story reported by the Chicago Tribune of a 15-year-old boy who suffered a serious trauma. His parents took away his Xbox.

The boy, a resident of Buffalo Grove, Ill., which sounds like the sort of place where discipline is imparted along traditional lines, decided to express his feelings and exert his identity. He called 911 in order to ask the police whether his parents were, indeed, within their rights to remove his gaming equipment from his sensitive little fingers.

How could any parent take away such a vital component of a child's life?

(Credit: CC Dave B/Flickr)

However, brave as all 15-year-olds are, he appears to have hung up. So the Buffalo Grove police which, on its website, declares that it is "dedicated to making our community a better place to live and work", wandered along to his house.

Where they may have just laughed until their shirts billowed like the kaftans of the late Luciano Pavarotti.

Commander Steve Husak told the Tribune that the officers not only told the little tyke that parents do, indeed, have the right to take away his gadgetry, but that it might be an idea to listen to what they had to say.

It is not recorded why the parents took away the boy's Xbox. Perhaps it was because he's a vastly intelligent youth who will soon be the governor of Illinois.

Electronic Arts has closed the door on its game developer unit Pandemic Studios.

EA shut down Pandemic as a separate unit on Tuesday, laying off 200 employees, according to published reports, but moving a small core team to EA's Los Angeles headquarters. Those exiting include Pandemic's two founders, Andrew Goldman and Josh Resnick.

An Electronic Arts spokesperson confirmed the news to CNET, but called it a consolidation rather than a closing, saying that the company merged Pandemic with EA's nearby LA campus. The core team of developers integrated into EA will continue to work on Pandemic properties.

An internal memo by EA Games Label Senior Vice President Nick Earl also confirmed the closing, as reported by the Web site Kotaku.

"I want to make it clear that the Pandemic brand and franchises will live on," wrote Earl in the memo. "In the months ahead, we will announce plans for new games based on Pandemic franchises. This type of change can be difficult. But the situation calls for us to act decisively, to take control of our destiny and to run a stronger, more focused development operation. That's how we will continue to make great games in our LA studios."

The EA spokesperson also confirmed that the Pandemic brand and franchise are still alive and well, and that EA is still very committed to it.

Started in 1998, Pandemic Studios was later bought by Electronic Arts in 2007 as part of a deal for which EA paid $860 million for both Pandemic and Bioware. Pandemic is behind the design of many popular titles, including Star Wars: Battlefront, Mercenaries, and Full Spectrum Warrior. The studio's most recent game for EA, The Saboteur, will hit stores next month.

On the plus side, Bioware seems in little danger of closing. With its slew of blockbuster games, such as Mass Effect and Dragon Age: Origins (which triggered more than a million downloads of premium content in its initial week), Bioware has proved to be one of EA's more successful studio purchases.

Hit by weak game sales, EA has been hurting since last year when it warned that 2009 would be a tough one. The company said at the time that it would need to cut staff, trim product lines, and close studios. EA initially announced job cuts of 10 percent of its workforce, then later revised that to 11 percent. In January, EA also jettisoned Pandemic's studio in Brisbane, Australia.

Electronic Arts has indeed struggled this fiscal year, announcing higher losses and lower sales for its first quarter and again for the second quarter, ended September 30.

The continued downturn forced the company earlier this month to announce additional job cuts of 1,500 employees beyond the initial 11 percent. With the layoffs scheduled to occur by March of next year, the game maker hopes its actions will trim annual expenses by at least $100 million.

"Laying off employees and closing facilities is never pleasant--we have a lot of compassion for those impacted--but these cuts are essential for transforming our company," said EA CEO John Riccitiello in an earnings call following the announcement of the cuts.

Call of Duty: Modern Warfare 2 is enjoying big success.

(Credit: Infinity Ward)

If you think Call of Duty: Modern Warfare 2 has had a major impact on just the video game industry, you may need to adjust your expectations.

According to Activision Blizzard, the game's publisher, Modern Warfare 2 has set records across the entire entertainment industry.

Call of Duty: Modern Warfare 2 is the "biggest entertainment launch in history," Activision said in a statement. In its first five days of availability, the game set a worldwide record with about $550 million in sales, according to internal Activision figures. It's impressive. But more impressive is the list of launches that it beat out.

In the first five days of availability, Modern Warfare 2 has eclipsed the largest worldwide box-office opening, held by "Harry Potter and the Half-Blood Prince," which tallied $394 million over its first five days. It also beat "The Dark Knight," which holds the U.S. box-office record with $203.8 million in first five-day sales.

The game also narrowly trumped Grand Theft Auto IV, which captured $500 million in sales in its first five days of availability.

In other words, Modern Warfare 2 has had a major release.

The game's success also translated to major numbers on Xbox Live. Activision reported that "more than 5.2 million multiplayer hours were logged playing Call of Duty: Modern Warfare 2 on the first day alone." On November 10, 2.2 million unique gamers played on Xbox Live, setting a new one-day record for the online-gaming platform.

Of course, it should be noted that all these figures come from Activision's internal estimates, which might differ from the NPD Group's official totals when it announces November video-game sales.

But until then, Activision can (rightfully so) celebrate Modern Warfare 2's success. And maybe the video-game industry, which has always received second billing to film in the entertainment space, can finally stake its claim to the top spot. Video games are, based on Modern Warfare 2's success, just as viable an entertainment platform as movies.

The Wii is coming to...Sports Authority?

(Credit: Nintendo)

You might be used to buying your video game consoles only at an electronics store, but all that will soon change. National sports retailer Sports Authority announced Tuesday that it will start selling the Nintendo Wii and Wii Fit Plus in its stores.

Aside from being able to pick up a Wii and Wii Fit Plus, consumers will also find Sports Authority stores that boast a Wii "interactive fitness experience." The section of the store will have "knowledgeable fitness trainers allowing customers to try Wii and Wii Fit Plus before they buy."

While it's certainly interesting to see a Wii being used by a fitness instructor in a sports store, Sports Authority said it believes that it will help set it apart in the marketplace. According to the company, users will now be able to "satisfy their fitness- and sports-gaming needs under one roof."

But just how much of a benefit Wii Fit actually affords its users is up for debate. Sports Authority might claim that it helps users "achieve better health," but a recent study (PDF) from the American Council on Exercise found that the game offers a "very, very mild workout."

That could throw a wrench in Sports Authority's plans as it attempts to make the case that the Wii and the Wii Fit Plus make sense next to other products designed specifically to improve the health of its users. As appealing as it might be to some, Nintendo's game might not be able to stand up against fitness-focused products.

Regardless, Sports Authority has thrown its support behind Nintendo's console. The Wii and the Wii Fit Plus will be available in 102 stores starting on Thursday. It will be rolled out to remaining company stores by spring 2010.

Correction at 4:50 a.m. PDT November 18: Cammie Dunaway incorrectly described Wii's October sales figures compared with other next-generation game consoles. Wii sales were nearly the total of its rivals combined.

Stung by lower Wii sales and a couple of down quarters, Nintendo may be a bit off its game this year. But Cammie Dunaway, Nintendo of America's executive vice president of sales and marketing, keeps focused on the company's strengths and positive numbers.

The recession and a paucity of blockbuster titles have taken a bite out of the overall video game industry this year, with revenue down from record levels in 2008. Nintendo certainly hasn't been immune. For the first half of the year, earnings fell about 50 percent from 2008, while Will sales dipped.

Cammie Dunaway, Nintendo of America's
executive VP of sales and marketing

(Credit: Nintendo)

In the midst of this atmosphere, I spoke on Thursday with Dunaway, known to many video game buffs for her high-spirited appearances at E3.

Though I asked Dunaway about the company's revenue decline, lower console sales, and potential competition, she continually championed Nintendo's assets, including its Wii and DS consoles and recent popular games like Wii Sports Resort and Wii Fit Plus, as well as new titles like Super Mario Bros.

Dunaway's optimism about Nintendo may have been borne out by the latest results. Though overall video game revenue fell in October, the Wii bounced back to recover its spot as the top selling console, according to NPD.

Last month, Nintendo sold 507,000 Wiis, compared with 320,600 Sony PlayStation 3s and 249,700 Microsoft Xbox 360s. Coming in second in video game hardware sales was Nintendo's portable DSi and DS Lite, with gamers scooping up 457,000 units.

Four of Nintendo's titles also did well in October, finishing in the top 10. The company sold 232,000 copies of Wii Fit Plus alone, and 209,000 of Wii Fit Plus bundled with the Balance Board. Wii Sports Resort scored with 179,000 copies sold, while Kingdom Hearts 358/2 Days for the DS found 169,000 new customers.

I spoke with Dunaway by phone before before NPD released the October sales figures. But she certainly knew ahead of time that the numbers would look good for Nintendo.

Q: The question on everyone's mind is Nintendo's performance this year. For the first half, earnings were down about 50 percent. Sales for the Wii have dropped. Your president, [Satoru] Iwata, recently admitted that sales of the Wii have stalled. What do you pin as the reasons for this downturn, both for the company and for the Wii itself?
Dunaway: Let's talk about the U.S., and let's break it down into the separate platforms. So, speaking first about the Wii--what's important to understand is that in 2008, we sold 10 million units of the Wii, which was a record for any console ever in history. And so it's a high mark.

What's also important to understand is that the pacing of our software this year was quite different than it was in 2008. In 2008, our big titles were released early in the year. And this year's huge title, released a few weeks ago in October, Wii Fit Plus, is doing quite well. And then arguably, the largest title of the year, New Super Mario Bros. for the Wii, only releases Sunday [November 15]. So we believe that going into the holiday season, consumers will continue to look for the products they see as representing the best value and the most fun.

Now on DS, we also had a record setting year last year, selling over 10 million units, and we are actually 16 percent above that pace year-to-date in 2009. So the combination of DS Lite and our new product DSi is really resonating with consumers.

Then on software, here in the U.S., our software for both Wii and Nintendo DS is actually up over a year ago. So despite the fact that our big titles are yet to come, we still have had a good year overlapping a tremendous year with our software.

Can you talk about some of the new titles Nintendo has in store for the holidays and next year? You mentioned Super Mario Bros. is a key title for the holidays. Are there others?
Dunaway: Looking to some of the additional titles for the holidays, New Super Mario Bros., for the first time enables four people to play a Mario game together. And it is going to be something that provides tremendous challenge to experienced gamers, and something a brand new gamer can jump in with their friends and family and enjoy. So that one will be a monster hit.

We also on the DS side have a new Zelda title--Zelda Spirit Tracks--coming on December 7. And Zelda titles are always strong performers, and it's a franchise that loyalists look forward to, line up to get copies of. And it's a title that we also think expanded market consumers will enjoy because of its heart. It's really about solving puzzles and going on an adventure, which is something that really anyone can have a good time doing.

Then as we go into next year, while we haven't announced timing, we have announced that we'll be launching a new Pokemon Gold and Silver, which has broken all records on its launch in Japan. [We're also launching] a title that will be great for loyalists called Sin & Punishment and a title called Endless Ocean that really provides a wonderful family experience on the Wii.

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."

(Credit: CNET / Josh Lowensohn)

Ever wondered what some of the graphical differences are in games that make use of the newer hardware in the latest versions of Apple's iPhone and iPod Touch? So were we. That's why we put together a screenshot comparison gallery of 13 games, all of which are either packing extra OpenGL ES 2.0 goodies, or that more complicated graphics modes that run a whole lot better on the beefier hardware spec.

As for our testing, we ran each title on an iPhone 3G and a third-generation iPod Touch, the latter of which packs the faster innards required for some of the advanced OpenGL effects.

To our surprise, there were very few apps on the App Store that made use the new graphical spec, and even fewer that required a standalone version of that application to do so. However, many of the developers we talked with said that they were cooking up new titles that would be pushing these new devices a little further than what they had already created. That's good news for those with a newer iPhone or iPod Touch, but a definite thorn in the side of those who might not be able to play some of near-future App Store releases on their original iPhone or iPhone 3G.

Click on our slideshow link below to get started. We've also included links to each version of each app (in case there are variations), all of which open up in iTunes. Also, in case we missed any, feel free to leave them in the comments and we'll try to add them later.

Update: We've added bonus screenshots of Ravensword, the upcoming 3D RPG, as well as top-down pinball game Wild West Pinball.

Images: iPhone games graphics showdown

See also:
The future of iPhone games
For games, no big rush to speedy iPhone 3GS
iPhone developer: 3G S graphics will be sooo much better than PSP's

The Wii isn't living up to its expectations.

(Credit: Nintendo)

Electronic Arts CEO John Riccitiello didn't pull any punches when he spoke at a quarterly earnings call earlier this week. As he discussed some of the issues his company faces in today's gaming market, he singled out Nintendo and its Wii as contributing factors.

According to Riccitiello, third-party games on the Wii just aren't performing nearly as well as EA had expected. And as the Wii's sales start to slip, it doesn't seem likely that that will be changing anytime soon.

"To be honest with you, I think the Wii platform has been a little weaker than we had certainly anticipated," Riccitiello said, according to a transcript of the call published by Seeking Alpha on Monday. "And there is no lack of frustration (about this coming out) at precisely the time where we have the strongest third-party share."

But Riccitiello didn't stop there. He said EA is "reaching out to Nintendo to find ways to partner to push third-party software harder." He contended that in order for the Wii to perform up to Nintendo's own expectations, the platform needs help from third parties.

Riccitiello continued on that theme. He said his company is providing high-quality titles for the Wii, but it's Nintendo that needs to do more.

"Wii is where we are missing it," Riccitiello said on the call. "And so I really do think that the opportunity exists to find different ways to partner with (Nintendo) in this case, to sort of help establish in the minds of the consumer legitimacy of some of these other brands, when they are going out multiplatform."

But it was Riccitiello's next statement that might send the most shockwaves through the Nintendo world. The EA chief said "very, very few multiplatform titles are succeeding on the Wii so far, and collectively, Electronic Arts and Nintendo need to tackle that."

Perhaps now the question is, then, how will those two major forces in the gaming industry achieve what Riccitiello wants? Nintendo's platform has enjoyed strong sales since its debut, but the Wii is slipping. Worst of all, during the most successful periods for Nintendo, it was first-party titles, not third-party games that performed best at retail. Whether Nintendo can help change that, making it more profitable for third parties to develop games for the Wii, is very much in doubt.

What do you think? Is Nintendo really in bad shape? Is Riccitiello overstating the Wii's shortcomings? Let us know in the comments below.