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.
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.
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Get ready to pay $20 for this game.
(Credit: Inifinity Ward)Gamers looking to get their hands on Call of Duty Modern Warfare 2 will have the opportunity to preorder the title and pay a net price of $20 if they follow basic guidelines announced recently by retailer Gamestop.
According to the company, anyone who preorders the game from Gamestop.com will have it when it hits store shelves on November 10. If those customers trade in the game by December 13, Gamestop will give them a $40 in-store credit.
Considering Modern Warfare 2 costs $60, that means that those who trade in the title will pay just $20 to play it. It's not a bad deal for frequent gamers who play through a game once and never play it again.
The $40 credit is also available to those who purchase the $80 Modern Warfare 2 Hardened Edition.
Of course, there are some rules that govern the deal. The $40 credit will only be offered for Xbox 360 and PlayStation 3 versions of the game. And after December 13, Gamestop's $40 offer will expire.
Gamestop's decision to offer customers the opportunity to pay an effective price of $20 for the game is an interesting one. Modern Warfare 2 is undoubtedly one of the most highly anticipated games of the year, and having an ample supply of pre-played titles is important to Gamestop's bottom line.
But it's putting a lot of hope in gamer willingness to return Modern Warfare 2.
Call of Duty 4 is still one of the most-played multiplayer games. Modern Warfare 2 will likely follow suit. Realizing that, will gamers want to part with what could be the best multiplayer first-person shooter release this year? Let us know in the comments below.
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.
The video game industry is poised to make a rebound, Wedbush Morgan Securities analyst Michael Pachter wrote in a note to clients on Thursday. The analyst also predicted that it will be Sony's PlayStation 3, and not the Nintendo Wii, that will lead console sales for the month, when NPD releases figures next week.
The PlayStation 3 Slim is helping spur console sales.
(Credit: Sony)"After six consecutive months of double-digit declines, we expect a return to double-digit sales growth (on video game software)," Pachter wrote to clients. "We forecast sales of $750 million, up 21 percent, compared to last year's $618 million."
It's a good sign that after months of decline, the video game industry is finally rebounding. That said, overall sales are still far behind 2008 figures.
PS3 victory?
But it's Pachter's next topic that might easily attract the most attention. According to the analyst, he estimates that September's NPD figures will show a "sell-through of 390,000 Wii hardware units (down 45 percent from last year), 350,000 Xbox 360 units (up 1 percent from last year), and 410,000 PS3 consoles (up 76 percent year-over-year), as the price cuts for all three consoles spurred demand."
Although Pachter said he thinks console sales will be "relatively flat for the balance of the year," he did say that the price cuts could "benefit the PS3 the most in coming months." Not only does Pachter believe Sony's console will outsell the Xbox 360, but he contends that it's possible that the PlayStation 3 will lead Xbox 360 sales for the rest of the year.
Another Xbox 360 price cut?
Pachter isn't convinced that the price cuts are over. He wrote to clients that "Microsoft has the ability to lower price yet again," but he cautioned that a more likely scenario would see the company offer a "more feature-packed Xbox 360 in early 2010 (likely with a 250GB hard drive) at the same $299 price point." It could cut the price of its console if "it begins to lose significant market share to Sony."
As interesting as they might be, Pachter's comments are purely speculation at this point. Look for the official sales figures to drop next week, when NPD makes them available.
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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.
The Entertainment Software Association reported this week that more colleges and universities than ever are offering degrees and certificate programs in video game design, programming, and art.
According to the organization, 254 institutions currently offer programs focused on video game creation. Notably, the University of Pennsylvania offers a master's degree in computer graphics and game technology. The ESA said 54 programs have been added since 2008, representing a 27 percent increase in the number of video game-related degree programs across the United States.
"Today, video games are not only the fastest-growing entertainment medium, they are also increasingly used in education and business for professional training and e-learning," Rich Taylor, senior vice president for communications and industry affairs at the ESA, said in a statement. "These new college programs underscore the importance of the video games industry, which is well-poised to create additional employment and professional opportunities in the coming years."
The ESA found that California has the most video game-related degrees, with 46 institutions offering programs. New York, Texas, and Florida follow California, with institutions offering 21, 20, and 19 programs, respectively.
The increase in the number of video game-related degree programs might have something to do with the industry's growth over the past decade. According to the ESA's 2009 Essential Facts about Computer and Video Games booklet, "68 percent of American households now play video games, and 42 percent of American homes have a video game console."
The organization also cited a poll conducted for it by KRC Research, claiming that "70 percent of major employers utilize interactive software, including games, to train employees. And 75 percent of these businesses plan to expand their usage within the next three to five years."
So it seems that it might be a good time for students to entertain a video game degree. And if the ESA's contention that more schools are planning to add gaming programs is true, students might soon have many more options to choose from when they pursue a career in the industry.
If you could start from scratch, would you pursue a career in the game industry, joining one of these programs? Let us know in the comments below.
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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.
One year and three months ago, Phil Spencer was appointed general manager of Microsoft Game Studios. On Tuesday, Microsoft announced that the executive has once again been promoted, this time to corporate vice president of Microsoft Game Studios. The first-party publishing label has been responsible for such Xbox 360 exclusives as Gears of War 2 and Fable II, and will distribute the forthcoming Halo 3: ODST and Alan Wake.
Historically, Microsoft Game Studios has also published PC titles such as the discontinued Age of Empires and Microsoft Flight Simulator. Its last corporate vice president, John Schappert, left Microsoft in June to become chief operating officer of Electronic Arts.
Microsoft Game Studios is part of Microsoft's Interactive Entertainment Business, which itself saw some executive changes Tuesday. Shane Kim, corporate vice president of IEB's strategy and business development, has announced he will retire this fall after 19 years at Microsoft. A spokesperson confirmed that the move was completely voluntary, with Kim saying a desire to spend more time with his friends and family was behind the decision.
Shane Kim welcomes journalists to Microsoft's Spring Showcase last year. Kim is retiring this fall.
(Credit: Daniel Terdiman/CNET)In other IEB news, Dennis Durkin, the current head of the division's financial operations, is to become its chief operating officer, a newly created position. A Microsoft representative said Durkin's duties would be to "lead the charge" and "to continue and focus the business."
Tor Thorsen reported for GameSpot.
Fallout, a role-playing game set in post-nuclear apocalypse, is at the center of a legal controversy.
(Credit: Bethesda Softworks)Bethesda Softworks, the current rights holder for Fallout, has sued franchise creator Interplay for alleged trademark infringement.
Back in 2007, Interplay signed over to Bethesda the rights to the Fallout game franchise for $5.75 million. That agreement required Interplay to provide Bethesda with packaging and promotional material prior to the release of any Fallout game that Interplay developed.
After Bethesda's successful Fallout 3 launch, Interplay saw the opportunity to release the Fallout games it had developed--Fallout 1, Fallout 2, and Fallout Tactics--in a package called the Fallout Trilogy.
According to court documents that Bethesda filed last week in U.S. District Court in Maryland, Interplay did not seek its approval of the package's promotional material. The court documents--reported by game site Gamasutra--allege that the release of the Fallout Trilogy could confuse customers. Bethesda cites Interplay's Fallout Trilogy and its own Fallout 3 as an example of such confusion. The company also objects to the use of the term "Trilogy," saying the franchise is not a trilogy.
Bethesda also accuses Interplay of other contract infractions. The company claims Interplay is in breach because it signed digital distribution rights on its Fallout titles with GameTap, Steam, and other services.
Bethesda is seeking an injunction on Interplay's sale of the Fallout Trilogy. According to court documents, Bethesda even wants to terminate a trademark agreement with Interplay.
As part of that trademark agreement, Bethesda allows Interplay to develop a massively multiple online (MMO) game under the Fallout banner. Interplay was apparently supposed to be in full-scale development by April 2009 and finding its own funding sources. Bethesda alleges that Interplay is in "breach of contract" for not ramping up its development efforts.
If the court decides in favor of Bethesda, the MMO project would be scrapped, leaving Interplay with no Fallout games.
Fallout MMO is Interplay's last best chance to stay relevant in the Fallout world. If it lost the possibility of ever creating a Fallout game again, Interplay could effectively be left out of its development in perpetuity.
Interplay could not be immediately reached for comment.
If you want to check out Fallout Trilogy, click here.
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.
The video game industry is having trouble reversing its poor showing over the past few months.
Industrywide revenue in August slipped 16 percent year over year, market researcher NPD Group reported Thursday. And total year-to-date sales were down 14 percent.
PS3 Slim....the next console leader?
(Credit: Sony)Neither software nor hardware could stop the industry's slide. Hardware sales came in at $297.6 million for the month--down 25 percent compared with August 2008. Video game sales brought in $470.32 million--a 15 percent hit, year over year.
Hardware
Nintendo once again dominated both the handheld and console markets in August. The industry's leader sold 277,400 Wii units in August. Consumers purchased 552,900 Nintendo DS units.
Microsoft's Xbox 360 barely held onto second place in console sales, pushing 215,400 units into homes.
Buoyed by the cheaper PlayStation 3, Sony's console trailed the Xbox 360 with 210,000 units sold. Its PlayStation Portable handheld was another popular item with 140,300 units sold. Ironically, Sony's PlayStation 2 continues to sell well. According to NPD, Sony sold 105,900 PS2 units--not bad for a product that isn't even considered "current gen."
Software
Unlike many previous months, Nintendo Wii games didn't dominate the top-10 list of best-selling titles. The company's console had only three of its titles make the list. Even so, that's the most games for any single console in August.
And this time around, a Wii game didn't take the top spot. Instead, Madden NFL 10 for the Xbox 360 reigned supreme with 928,000 units sold. Nintendo's Wii Sports Resort captured the second spot with 754,000 units sold. Madden NFL 10 for the PS3 captured third place, selling 665,000 units.
... Read moreDon 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.
Some stray ads have spawned speculation over the past week that Microsoft might soon be releasing a new Xbox 360 Elite with a 250GB hard drive and two wireless controllers.
The ads suggest that the new console is called the Xbox Super 360 Elite. The current Xbox 360 Elite comes with a 120GB hard drive and one wireless controller.
The rumors started last week when Amazon.com's German store listed an Xbox 360 Elite with a 250GB hard drive, two wireless controllers, and Forza Motorsport 3 bundled in the package. It was priced at about $400. The listing was subsequently removed from Amazon's pages.
The very next day, a South African retailer called BT Games promoted the Xbox Super 360 Elite in an ad. It also featured a 250GB hard drive, two wireless controllers, and a $400 price tag.
The Xbox 360 Elite might have a "super" friend soon.
(Credit: Microsoft)Although it's certainly possible for one listing to accidentally slip out for a product that might not be real, it's extremely coincidental that two listings, from two companies, about the same Xbox 360 model were discovered over two days.
I contacted Microsoft to see if it plans to release the Xbox Super 360 Elite. Rather than saying that it didn't want to comment on rumors or speculation--a common Microsoft response--a company representative said: "Microsoft has made no such announcement."
Microsoft contends that its Xbox 360 Elite is on par with the PlayStation 3 and the new PS3 Slim, even though Xbox lacks several PS3 features, including Blu-ray, built-in Wi-Fi, and free online gaming. When pressed for why it believes that the Xbox 360 Elite's value proposition is high enough, the company said that it's all about games to the gamer.
"Xbox 360 offers double the games library of PlayStation 3, and with Xbox Live, nearly 20 times the number of digital movies and TV shows," a Microsoft representative said in an e-mail. "On top of that, we're bringing even more to the table with instant-on 1080p HD streaming, Facebook and Twitter, and the future of games and entertainment with Project Natal."
Microsoft also asserts that its Xbox 360 Arcade--at $199--captures a portion of the market that its competitors cannot.
"When you're looking to find the best value in games and entertainment, price is really just one piece of the puzzle," the rep said. "However, consumers with $200 to spend this holiday season will still only find one console within their price range: our Arcade console."
... Read moreDon 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.
On the heels of Sony reducing the price of its PlayStation 3 and announcing the PlayStation 3 Slim, Microsoft announced Thursday that it too will be dropping the price of its console.
It's just the $299 Elite and the Arcade now.
(Credit: Microsoft)Starting Friday, the Xbox 360 Elite will be priced at $299, $100 cheaper than its current price. The Xbox 360 Pro, which currently retails for $299 will be priced at $249 starting Friday. Once retailers sell through their entire stock of Xbox 360 Pro units, that SKU will no longer be offered by the hardware maker.
Going forward, Microsoft will offer only the $299 Xbox 360 Elite with its 120GB hard drive, and the $199 Xbox 360 Arcade which comes bundled with five games and a 256MB memory unit.
Microsoft's decision to reduce the price of the Xbox 360 isn't a surprise. Numerous rumors have been swirling around the Web for weeks. But perhaps the reason for the price drop, at least according to Microsoft, might surprise you.
When I pushed Microsoft's director of product management for Xbox 360 and Xbox Live, Aaron Greenberg, on why the company had decided to reduce the Xbox 360's price now, he said that it had been planned for months.
"I'm sure some will think this is a response to competitor pricing," Greenberg said. "But we had planned this reduction months in advance. Retail circular ads and store merchandising were all lined up. We wanted to be ready for the holiday season."
Microsoft wouldn't say whether it is generating a profit off the sale of each Xbox 360 unit it sells. Greenberg would only say that, overall, Microsoft's Xbox division is profitable. That stands in stark contrast to Sony's PlayStation 3, which is currently being sold at a loss.
... Read moreDon 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.
Yahoo has signed an agreement to buy Maktoob.com, the leading online community in the Arab world with more than 16.5 million users.
Through the acquisition announced Tuesday, Yahoo will join its own services with Maktoob.com's local content, providing people with Arabic-specific information and Arabic versions of Yahoo Messenger and Yahoo Mail.
Popular in such countries as the United Arab Emirates, Jordan, Kuwait, Egypt, and Saudi Arabia, Maktoob.com says it reaches one-third of those online in the Arab world.
And there is room to grow. Citing figures from the World Bank, Yahoo noted that more than 320 million people worldwide speak Arabic, but less than 1 percent of all online content is in Arabic.
"Access to information and communications tools can positively impact people's lives in many ways," Yahoo CEO Carol Bartz said in a statement, "and with the acquisition of Maktoob.com and our investment in the region, the Arab world will soon get a Yahoo experience in Arabic with relevant local language content, programming and services."
The two companies are also touting the purchase as an opportunity for advertisers to access a new market. Yahoo cited statistics from Madar Research, which predicts that spending on Internet advertising will rise by 35 to 40 percent in the Arab region this year.
"Internet users in the Arab world will have access to Yahoo's vast content portfolio, as well as world-class communications products, which will be available in Arabic for the first time," Ahmed Nassef, general manager of Maktoob.com, said in a statement. "In addition, advertisers will be able to leverage the vast reach of the newly combined audiences to effectively market to consumers across the region."
The acquisition is expected to be completed in the fourth quarter, after which Maktoob.com will become a wholly owned subsidiary of Yahoo. Financial terms of the acquisition were not disclosed.
Maktoob Group, the parent company of Maktoob.com, was founded in 2000 and is based in Amman, Jordan. After the Maktoob.com acquisition is wrapped up, the remaining Maktoob Group companies--which include Souq.com, CashU.com, Araby.com, and Tahadi.com--will function under a newly created entity called the Jabbar Internet Group.
