Tuesday, November 22, 2005

Interesting email from a Games Industry Insider...

I work in the games industry and have a PSP game in the charts right now. The vibe is that people already are, or should consider ditching their DS. As an "insider", my advice is to hold onto your DS. Here are some facts and figures:

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http://nintendoinsider.com/site/EEEFylpkElFffmiBlr.php

http://nintendoinsider.com/site/EEEZuAypVuTuOJPzyb.php

http://lostgarden.com/2005/09/ninte...n-strategy.html

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The division of Microsoft that handles the Xbox has a net revenue of $3.1 billion, but makes a loss of $551 billion, as it subsidises the cost of each Xbox sold.

Sony also spends heavily in order to maintain its presence in the videogame market, though it manages to make a profit for $400 million from its games division.

Meanwhile, Nintendo doesn't subsidise its hardware so makes larger profits of $4.7 billion. Furthermore, it (surprisingly perhaps) has approx 60% market share of total console sales worldwide. From games alone, it makes nearly enough profit as the entire Sony empire combined.

Videogames seem to crop up a lot in people's posts on the moneysaving forums. I just thought I'd balance things out based on facts rather than hype from PR firms.

Analysis of sales figures also throws up some surprises. Eg. a #1 selling PSP game can actually be low (#37) in the multiformat sales chart. A couple of DS games that are higher in the multiformat chart are selling more, but appear lower profile in the shop because Nintendo hasn't payed for them to be all over the place.

That chart-track.com website is the only sales-based chart for the UK. Retailers such as HMV, Game, WHSmiths etc charge us a fee in order to have a game in their chart. They also charge for window displays, shelf space etc... When you walk into a shop and see Burnout (for example) all over the place, its because the publisher has payed tens of thousands of £££s for it to be there. Its not because its a good game, (though in Burnout's case it is actually good).

Be aware that games publishers can buy space in magazines, (and I don't just mean adverts) magazine covers, content, coverdisks, players guides etc... If a magazine gives too many low scores, the game publisher stops sending it early review versions and images for print. The result is that most games mags are just reprints of glossy press releases from the games companies.

If I want an honest opion of a game, I tend to go to www.gamefaqs.com where you can find every game on every platform reviewed by ordinary people. You soon get an impression of what's a turkey and what isn't. www.metacritic.com is also handy.

<<< I expect this post will generate a lot of angry and aggressive replies from Sony and Microsoft fans who have absorbed their PR company's spin >>>

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