Gaming Juggernauts Are Finally Listening!

Gaming Juggernauts Are Finally Listening

 Yes ladies and gentlemen, the big, brash companies that think they can dictate to gamers what they want with little regard to anything else have finally learnt they can't. I'm not just talking about the E3 backlash that Microsoft received, but it also seems it has had a knock on effect with other companies reacting too.



Customer service economy

Believe it or not, customers have a bigger choice than ever and it is up to companies to stand out in order to receive their custom. More importantly, people demand companies that care about their customers and aren't just seen to want that big wad of cash consumers get at the end of the month. Organisations around the world are employing customer service specialists to improve their overall offering and as a result, improve customer retention.

                 Customer service consultancies such as ShankmanHonig have been sprouting up in 2013





Maybe we got it wrong

Microsoft's success truly went to their head. Being market leader gave Microsoft the temptation to start milking the industry for what it's worth with the Xbox One. They thought,  ''The market love us and we can do what we want'', Wrong! We all know how E3 went. Everyone was gobsmacked - ''how could Microsoft be so arrogant!'', they thought they could get away with it. What they didn't realise is that the gaming community is one of the largest online communities, and one of the most passionate. The gaming community were baying for blood. Customers want to be appreciated, not taken for 'mugs', Microsoft were scared, they had made a huge mistake.


We're Sorry



Since then, Microsoft have done all they can to reverse the massive amount of damage they caused to the Xbox brand, and to be fair to them they have been quite transparent about it. The list of changes are as follows:

• Used games allowed
• More powerful GPU
• Doesn't have to be always online
• You don't have to use Kinect

So Microsoft have tried to rectify all the negative points regarding Xbox One. But let's not kid ourselves, they still have work to do. They have created a base to work on and now they are starting to create goodwill within the gaming community. In August, Microsoft Studio's CEO Phil Spencer stated that their changes on the Xbox One are part of a "two-way conversation we have with our customers". There you have it, Microsoft are clearly stating they made a mistake and are working on providing better customer service. Recently, Microsoft have said they would offer indie game studios free Xbox one development kits - good PR that will appease the gaming community. If Microsoft can keep this going and become even more transparent with it's customers, they could be starting to turn over a new leaf.


EA Too!?

EA also seem to be pushing forward with a PR push to try and build a bridge with their consumers. EA's origin service has continually been found to offer abhorrent customer service and the gaming community generally see EA as one of the 'bad guys'



One of  the 'famous' EA online support chats.


In recent months however, we've seen EA act in ways that have surprised the gaming community.
Recently, EA participated in the Humble Bundle sale which gives consumers a selection of games in exchange for a donation of the persons choice.







EA offered all these games for charity, with EA potentially receiving nothing from them


Firstly, you have to applaud EA for this, over $10 million dollars were generated for charity and many gamers agreed that it was the best humble bundle to date. EA also launched the 'Great Game Guarantee' which allows people who download digital titles on Origin to return the game within 24hours. What this shows is that they are trying to create a better brand image.

The gaming community can hold a grudge for a long time, but with EA finally reacting and trying to build bridges with their customers, they are heading in the right direction.


So, have they learned?

So, it seems the gaming juggernauts have finally learned, you can't keep milking customers for all their worth, offer shoddy customer service and expect to get away with for years to come. Given the chance gamers will boycott. The arrival of the new console generation provided the perfect opportunity to do this. PS4 was a much more attractive option and as such, people saw it as a perfect time to jump ship. I think it woke up the gaming juggernauts and they finally realised - 'if we want to be here in the long-term, it's time to start taking our customers seriously.'


Do you think things are changing, or is it simply a PR stunt from these gaming giants? Let us know in the comments.

Wii U in Dire Straights.

This article kicks off the beginning of a 3-part article looking at the three new consoles. With the PS4 being announced next week, Nintendo are in trouble. The Wii U hasn't taken off as they would have liked and with new consoles coming, Nintendo should be seriously worried. In fact, latest reports indicates that Nintendo sold less than 100,000 units with a figure of 59,000 being mooted. This is shocking for a new console and Nintendo should seriously be worried. The Wii U is already being sold at a loss, presumably because of the high cost of the controller.



This graph courtesy of Ron Workmans blog, (http://www.ronworkman.com/) highlights the trouble Nintendo are in. in the past 4 years sales and income has plummeted. The 3DS has taken a battering due to smartphone's and Nintendo's hope that the Wii U's innovative controller would lead them to the heights of the orginal Wii has not come to fruition.

The Big Worry

Some might say the Wii U has been out for a matter of months and therefore, they should be given more time to sort things out. It's clear to see now though, that Wii U will never reach the same popularity as the Wii did. The Wii did so well because of the innovative motion controller. Nintendo have gone for the same strategy but this time the casual gamers are nowhere near as excited as before and this,for me, provides the killer blow for Nintendo.

One year advantage?


The reason I really worry for Nintendo is that they have blown that year advantage. An opportunity that Microsoft used for the Xbox 360 to get some sort of foothold. Nintendo should have had a number of stellar games out during this year, yet Wii U owners have very little games to shout about.

The Position

What perplexes me is that they have a console that can't really be called next-gen or current-gen. Yes, it's slightly more powerful than the Xbox 360 and Ps3 but what about when the PS4 and next Xbox arrive? These devices will technically wipe the floor with the Wii U and will provide Nintendo with the same problem the Wii had once the hype died down. 3rd parties will be reluctant to release games on it while they focus development on the more powerful Sony and Microsoft consoles. The casual market is open to all now and Microsoft and Sony will make sure they take advantage of that market from the beginning.

Sony

Sony are going to hit next-gen hard with the PS4 and my next article examines this. That being said, Nintendo have got it all wrong. They never wanted to compete with Sony and Microsoft directly in technical terms, but the level of innovation doesn't catch the markets attention as it did with the Wii.

My Prediction

• Nintendo start a big marketing push to combat the release of new consoles. Expect big games with a big marketing budget. Don't expect a price drop.

• The next Xbox will pick up where the Wii left off and target the causal market leaving Nintendo in its wake.

• The future looks bleak with both the Wii U and 3ds struggling too find a position in the market which appeals.

The next few years will be bleak for Nintendo. They might have already reached the point of no return. Will they be the next Sega? Leave your opinions on the comment section.

Next Gen: The Generation of Casuals and Blockbusters

As you've noticed on this blog, my posts are starting to focus on the next generation of console's. Looking back, this gen has seen some new trends. The casual market has really picked up with the Wii and Kinect. However, there has been question marks regarding the longevity of the casual market. Wii's sales quickly took a nosedive while Kinect and Move have been criticised for the lack of games that really utilise the technology. We have seen the rise of blockbuster titles that have smashed records and put video games's on par with movies. This article looks at why the next generation of consoles will focus on blockbuster titles and improving the casual market.

Companies investing in blockbusters

As is seemingly the case with every new generation, costs rise as developers invest more in graphics, sound, research and marketing. Publishers are looking for the next big thing, an existing franchise or a new IP that can last a whole console generation. The risks are high but the rewards can be huge. It will mean that we will see a lower number of games coming out, with a focus on a few big budget, blockbuster titles. In the first couple of years of the next console cycle, expect to see new IP's look to quickly establish themselves.











Next-gen game Watch Dogs has all the hallmarks of a blockbuster title.

Along with the new IP's, the successful current franchises will continue to sell incredibly well. The next Assassins Creed trilogy will continue on next-gen consoles and so will Call of Duty. These are cash cows that don't look like dwindling.

Of course, expect Activision to invest heavily in the COD franchise

Simply put. Publishers will be less inclined to invest in lots of different games. Instead they will hedge their bets on a fewer number of blockbuster titles.

The Casuals are here to stay


Disney Infinity was announced a few days ago and is set to combat the extremely  popular, Activision owned, Skylanders series. The concept sees video games crossed over with real action figures. Unlike Activision, Disney have access to a wide range of Disney, Marvel and Star Wars characters. The casual market will eat this game up. Although the game is set to be released on current-gen consoles, expect it to be on next-gen consoles when they are announced.

Disney Infinity will capture the casual markets attention for years to come.

Developers and publishers will continue to find concepts like this that look to keep the casual market engaged. The problem with party games such as 'Just-Dance' and 'Wii Sports' is that the casual market got bored of these titles quickly and therefore, there wasn't longevity when it came to usage. Just Dance rolled out the sequels to great success but eventually people will get sick of it, the market for these types of games are already saturated. Games like Disney Infinity will add DLC and extras to maintain sales and interest of the casual market for years.


What new trends do you think will arise from the next generation of consoles? Let me know in the comments below.

The New Cycle Begins

As I've said on numerous occasions, the PS4 and Xbox 720 will at least be announced by this time next year. In fact, developers have had a long time to work on them. I've been told that dev kits for the 720 have been in developers hands for 2 years.

With the rise of Kickstarter and the news surrounding big name developers leaving, things are changing, and just at an interesting time.

Cliffy B left Epic games last month

We've seen big name developers releasing below par games which can be attributed to publisher pressures. 
Take Rare for example. This console generation has seen them develop AAA titles to releasing Kinect party games. All that talent that made Rare so successful have gone and are working for other developers or going it alone.

What about Peter Molyneux? Did Microsoft force Lionhead into a certain direction which forced Peter to leave? I think developers are starting to realise that this is time for a fresh start, just as the new console generation starts.

I believe that in the next few years, you will see new companies sprouting up ready to unleash innovative titles and possibly be bought up by the bigger publishers. The new cycle begins.

How do you fix a problem like video game piracy?

Video game piracy is a beast that the industry just cannot tame. Many different techniques have been implemented to try and tackle this problem yet none seem to work. With pirated video games becoming more easily accessible by the day, it poses a massive hurdle for the industry and one that the industry is determined to crack. This article aims to examine the ways in which the video game industry tries to combat piracy and to see if those methods are effective.

The main thing that Video game publishers and developers must realise is that in their attempts to combat piracy they must punish the pirate without punishing the consumer. Many companies incorporated anti-piracy software onto the’ install disks’. Consumers were getting the sense that they were being punished for the actions of the pirates . EA games tried to do this with the game ‘Spore’, they added DRM software onto the disk. It backfired and the game went on to be one of the most pirated games ever. It turned out that pirates could bypass this software protection while consumers were forced to live with it. Publishers therefore must reward the consumer for purchasing the game.This can be done in many ways. They could offer money off the sequel of that game when it comes out, offer free downloadable content or offer free merchandise with every order. One of the main reasons for piracy is that people demand more for their money. More and more games are being released every year and the consumer only has a certain amount of money available to spend on video games. By offering a better value proposition the consumer is more likely to purchase the game rather than pirate the software. Punishing the pirates can be done through numerous ways but the traditional way of fining the odd pirate just does not work. Video games must play to their strengths; just recently EA games unveiled ‘Online pass’ which allows the consumer to enter a code to access the online play, a code is given to anybody who buys a new copy of the game. The importance of this is that people who pirate games will not be able to use one of the most important features in today’s games, online play. Of course people could still pirate these games and use the online feature by only paying $10 to acquire a code; this will allow publishers to get extra income from pirates who would not consider paying for any part of the game. As another bonus EA games will receive extra income from the used games market. Other publishers such as Activision must take note:, Call of Duty is famous for its online experience. If the consumer can utilise this same method you will see people purchasing the game rather than pirating it so that they can play online.

Another way to combat piracy is to simply make a good quality game with increased longevity. As stated earlier, consumers will not see the value of paying full price for a game that might be great but only lasts 10-12 hours. By making a game of good quality and longevity the consumers are going to see better value and will be more likely to buy the game. If individual’s were to evaluate a video game and realise it was not worth their money they are more likely to pirate the game instead of before when they would not buy it and consequently never play it, this is due to the convenience and easiness of pirating in modern times.

 Another point to consider for developers is which type of hardware they should develop for. The Sony Playsation 3 is notoriously hard to crack and therefore pirated games can’t be used on that system. On the other hand, the Xbox 360 and the Wii can be cracked by any individual who has access to the internet and a decent guide on how to crack the system. The PC needs no cracking at all and has become the pirate’s choice when choosing to pirate a game. Developers should work with these hardware companies to make sure that they are hard to crack or they could look at just developing solely on the playstation 3 as long as this trade off is a viable one.

The final point that could help combat piracy is by becoming a publisher or developer that listens to the community. By having a community that respects the organisation the chances are, it is  more likely to buy the game and discourage piracy. Companies can do this is by regularly communicating with people on forums, listening to their key consumers and offering incentives. These incentives could be  access to Beta’s or money off codes for being a member of the organisation’s forums or websites. More people will pirate a game if they feel the developer or publisher disregard the consumer’s desires or neglect them altogether. The developer’s ability to keep connected with their key audience is a very powerful tool and should be considered by publishers who have a poor relationship with their consumers. The knock on effect could lead to greater sales and thus profit margins. If all else fails developer’s 2D boy allowed consumers to name their price when purchasing ‘World of Goo. Although a lot of people chose to pay one penny for the game it was still a huge success. It could be said that would be pirates who had a chance to pay what they liked for the game would do so instead of pirating it.

In conclusion, there really is no sure fire way of stopping piracy. The old method of fining people randomly for downloading Illegal software is outdated and does not work. Publishers have to be creative and think outside the box, with people having less disposable income more and more will turn to piracy as a way of fulfilling their gaming desires. By using some of the methods stated in this article developers and publishers could start to see piracy for their game falling and their profits rising.

James Foti
Contact me: jamesfoti1@hotmail.com

Is Microsoft's Kinect strategy hit or miss?

The Video games market is currently expanding into many different segments thanks to the Nintendo Wii, no longer is gaming targeted towards the 13-40 Male consumer. There is the 60+ elderly market who love to get active by playing Wii bowling or the 30-50 range that are losing weight by using Nintendo Peripheral’s such as Wii fit. Both Sony and Microsoft must applaud Nintendo for expanding a previously narrow market.  With Nintendo monopolising these market segments Microsoft and Sony have been quick to react. Microsoft is introducing a camera that can track your body movements without the need to hold anything in your hand whilst Sony are going down a similar path to Nintendo by offering motion controllers. So what’s the deal with ‘Kinect’? Who is it targeted at? And how on earth will they provide competition to the extremely popular Nintendo Wii? This article will aim to answer these questions.

There is no doubt that Microsoft are after the casual market. This newly developed market has massive potential and is worth millions to Microsoft. Microsoft revealed the Kinect brand at E3 this year and for the first time ever it was broadcast in Times Square for everyone to see. Furthermore, they commissioned a show by the exquisite Cirque du Soleil to show of Kinect which was also broadcasted on MTV. These communication channels are not commonly used in the video game industry to show of new hardware. By broadcasting their E3 press conference live via time square it indicates that they want Kinect to entice the casual gamer into the Xbox experience.  However, is this the  right group to target? The marketing manager of Xbox recently said “I think we know that hardcore gamers will be the first to go out and buy it, as they are with any product”. This statement underlines their intentions to push Kinect onto the hardcore gamer but the thing is none of the software for Kinect will appeal to them. Casual games such as Kinect sports or Kinectimals will never a system seller for the hardcore gamer. In fact until Microsoft release a Kinect game that the hardcore can get excited about then the chances are they will hold off the purchase. Microsoft built its brand on offering a hardcore experience and it might be unwise to neglect them.

The pricing of Kinect has become a hot talking point in recent weeks. Although not confirmed it has been widely regarded that the price of Kinect will be around $150. Compared to the Nintendo Wii ($180) the value of Kinect could seem very poor. Why would the consumer who currently owns a Nintendo Wii part with a significant amount of money to purchase a peripheral that is essentially a very similar product? Microsoft needs to create a value proposition that warrants the $150 price tag and controller free gaming could be the answer. The unique selling point of Kinect is the fact that they offer a way of interacting with a game without the need to hold anything in your hands, this is something Nintendo Wii and playstation move don’t offer. Microsoft must therefore highlight this advantage when advertising this piece of hardware.  In fact by looking at Microsoft’s marketing strategy you could see why they are charging $150. They have to penetrate the market and get the casual market to take notice of this new product. Microsoft have already spent a huge amount on marketing Kinect through the Cirque du Soleil show and by displaying Kinect in various Macy stores. Make no doubt about it, they paid through the nose to do so. Marketing of Kinect is set to increase as they creep towards the release date and therefore costs will increase. Microsoft will aim to recuperate this cost and therefore will set the price as high as $150 however it is doubtful that they will make a profit on every unit sold as according to ‘Develop’ it is costing Microsoft $150 to manufacture the Kinect camera.

The casual market is here to stay and its going to grow and grow. Microsoft are entering a market in which they are determined to gain significant market share, they are in this for the long term. Kinect is just the beginning for Microsoft. It is expected to be bundled with the Xbox slim when it launches in order for Microsoft to get Kinect into homes across the world. Microsoft will initially want to focus on market share rather than profit so expect Kinect’s price to decrease and decrease quickly. Kinect or maybe an upgraded version will be bundled into the next generation of Xbox console because this will force the consumer to use it.  Consumers are more likely to see the value of Kinect and therefore use it if it becomes bundled in with the console rather than just on its own. Microsoft have a massive opportunity with Kinect and if sales are slow in the first year don’t expect Microsoft to drop Kinect. It is here to stay and if they do it right it could become a huge success just like the Nintendo Wii. Microsoft’s core customer is the hardcore gamer and they should not ignore them. Nintendo have currently realised their mistake of neglecting their hardcore consumer and rectified the issue by announcing numerous hardcore friendly titles. If Microsoft can maintain that balance then they could satisfy the hardcore whilst becoming a big player in the  lucrative casual market.

James Foti.

Contact me: jamesfoti1@hotmail.com