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.

Why the Wii U price is spot on, for now.

The price I'm taking is from the US confirmed price for the black Wii U: $350.

I am not counting the cheaper 8gb white model because Nintendo as with other companies, release a lesser SKU to try and highlight the more expensive SKU's value. For example, why buy the white Wii U for $300, when, for $50 dollars extra, you can have the better model. It's a simple marketing trick that has been used for a while now.

Lets breakdown the cost. Bare in mind these figures are not 100% accurate. 

• $100 dollars for the controller 
• $250 for the actual console

The black $350 Wii U

As of today, the 250gb Xbox 360 will set you back $250 and the 160gb Ps3, another $250.

Now considering the Wii U is slightly more powerful, you can see that the actual price isn't that dear. The console itself is would cost the same as the 360 and Ps3, if it not for their tablet. Nintendo have timed it perfectly. They can benefit from having the most powerful console for at least a year. 

The problem arises when Sony and Microsoft release their new consoles. These consoles will have been announced by this time next year and will be considerably more powerful than the Wii U. Obviously, the price point for these will be higher than $250, try $400-500 for both. The Wii U will be out-dated by then, but as seen with the original Wii, the technology doesn't have to be the best, as long as it captures the users imagination, in the Wii's case, the motion controller.. Nintendo have tried to do this with the new tablet but in my opinion this is not enough.

The price point for me, is perfect. The Wii U will sell well for at least a year. It may start to struggle as the other next-gen consoles come out, but they will be positioned as the cheaper less sophisticated console.

This worked for the Wii and it may just work for the Wii U.

Why GAME has only got its self to blame

After a long absence I felt it necessary to share my views on the recent administration of GAME. Quite simply, they had it coming for a long while now. 5-10 years ago consumers were happy to shop in-store and pay a premium price. However, with internet stores such as Play.com and ShopTo.net offering fast delivery and cheaper games, it makes you wonder why GAME failed to properly catch up with their competitors.

Failure to Innovate

If companies do not innovate they will simply fail. Look at Blockbuster for example. They were the leading video game rental service until companies such as Netflix came and made the industry better for consumers. GAME were always playing catch-up. Whilst the high street was floundering, online stores flourished. Whilst GAME did have an online store, their prices were just not competitive enough. Consumers were not willing to pay for £10 extra for a game when they can simply purchase it online. This leads me on to the next point.

Digital Download

Another change in the industry GAME did not address was that consumers were more willing to digitally download their games. Previously, consumers wanted that hard copy in their hand due to trust issues and slow internet speeds. With companies such as as Steam offering a global service, consumers have quickly turning to digital downloads for their next game. Steam and other such providers offer significantly cheaper prices than GAME and more often than not, a wider selection. Consumers are starting to become more aware of the space video games take up on their shelfs so digital download seemed a perfect option.

Emergent Themes

GAME certainly stuck with their strategy but failed to realise the emergent themes in the video game market. Simply conducting market research would have made them aware that the more economically aware consumer was not willing to pay top dollar for video games when there are cheaper alternatives. GAME should have altered their strategy to scale down the number of high street stores and focus on an online store that offers digital downloads and physical copies. Many people saw GAME’s demise coming, unfortunately they did not.

Bridging the gap between Video Games and Movies

Its hard to say that video games can catch the audience's attention the same that movies do. Sure they can be more addictive and can last longer but ask yourself when was the last time you cried or even felt emotional through a Video Game? Personally, despite playing through some of the most interesting engaging stories in a video game I have yet to feel a tiny bit emotional. Your main ally dies? so what. Video games however much they try just can not match Movies when it comes to emotional attachment to the story or the characters.

LA Noire's Facial Animation.

Video games have massive potential to appeal to the audience who see video games as a waste of time. This is mainly because there has yet to be a video game that can capture the audiences attention the same way movies do. All that is about to change. New technology ushered in by Rockstar studios has allowed full facial animation of a characters face which means every little facial movement can be captured and put in the game. The first game to use this is LA Noire, a crime thriller. Sure, the animations might not be ultra realistic and the characters faces might seem a bit odd but this is just the start. This game has the potential to bridge the gap between video games and movies in terms of story and audience engagement . As the technology develops and more studios start using it video games stories might become as enthralling as a Hollywood blockbuster instead of a mediocre B movie.

The video game industry have realised the need to have a good story in almost every genre, most recently the sports genre. The next Fight Night game from EA has a significant story element to it which has never been done before. You can tell by the level of excitement for this game that incorporating the story element into sports games is a new and highly popular idea. Why stop at boxing though? the next Fifa game should have a story that pits you as a young and upcoming youngster who overcomes problems to play football professionally. I believe Fifa's 'be a pro mode' which lets you create a player and play him throughout his career  is the first step to this. If the Fight Night game sells well, who knows it may just catch on.

Fight Night Champion

I do not think it will be a long time until we see A-list actors not only providing voice overs for video games but actually acting in them by capturing their facial animations. Imagine if Natalie Portman can give the same performance she did in Black Swan with a video game. Okay, so that might be a long way off but it is possible. When that happens I truly believe Video games will match Movies.

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