Console Innovation Is Past Due

The AP posted this story today outlining the state of the video game industry - and from looking at the list things aren't going so well. Company after company, from EA to Microsoft to Nintendo to Sony, are showing decreased revenues and/or losses from core video game products and services.

I'm far from a financial or industry expert, but it seems to me that the industry (particularly the console gaming industry) has been milking the cash cows of the current platforms for far too long and it's starting to catch up with them. The Wii, PS3 and XBOX 360 are very old by video game standards and the games themselves are starting be hamstrung by their aging technology. And most people who were ever going to buy one of these consoles has probably already done so - new products like the XBOX 360 Kinect notwithstanding.

But the software companies can't lay all the blame on the consoles either. I've gone on at length about my disappointments with EA, but they aren't the only company dropping the ball. Take-Two Interactive pushed back the release of BioShock Infinite from October 2012 to the end of February 2013 and took a 6% hit in stock price. And Activision Blizzard Inc. is showing lower revenue for their games as well - which isn't surprising considering their yearly Call of Duty releases are practically indistinguishable from each other.

Add all of this to the fact that games on platforms like the new iPad are increasingly more beautiful and engaging, and the console/traditional video game industry looks like it's in trouble. I understand why in a down-economy companies like Microsoft, Sony and Nintendo decided to stick with the current consoles and only make iterative improvements. But if they want to succeed in the future, the time to come up with some real innovation is now.

Video Games at CES 2012: The Giant Underwhelm

CES 2012 - the Consumer Electronics Showcase - has come and gone. And while the show is now (for the most part) not about new product announcements or big news anymore, I was still very interested to see what video game related stuff there might be. I wasn't expecting Microsoft to announce the next generation gaming console or for Sony to announce some major innovation with the PS3, but I was hoping for something more than what was being shown. Anything related to console gaming seemed like an afterthought, and the only cool thing I saw gaming-wise had to do with Apple's iOS (iPhones, iPod Touch and iPads). Which isn't really surprising I suppose.

On the Microsoft show floor there was an XBOX section (pictured above) with a couple of product marketers and ten games being shown off. There was also a few Kinect booths showing off some Kinect stuff, but it really wasn't anything that you couldn't experience by going to your local Best Buy and trying out Kinect or a first person shooter there. Many of the games (if not all of them) have been out for a while now, and while I suppose Gears of War 3 or Batman Arkham City does show off the best of what the 360 can do, it would have been (and was) much more impressive in 2009.

At Sony it was much of the same (shown below), with only five games on display for the PS3 and not much else. It definitely feels like the current generation of consoles are at the end of their product cycle, and while Sony's public statements contradict that (at least for the PS3) it's hard to get excited about the future of the current generation of consoles.

The one cool gaming related thing I saw this year at CES (cool enough at least to stop and talk to the exhibitor about) was the iCade Mobile from Ion Audio. It's a simple game controller for an iPhone or iPod Touch that works with up to 100 games currently (though more will be added). It kind of turns your iPod Touch into the form factor of PSP, and for kids who play a lot of games on their (or their parents) iOS device I can see how it might be fun to have. Check out my post about it at Modern Day Dad.

If CES 2012 is any indication, it looks like video gamers are going to have to be content with their current consoles and devices for the time being. Then again, Microsoft is kind of being cagey about their future announcements and could (in theory) make a big splash at E3 in June, which would turn a bleak future in to something pretty exciting. Here's hoping that happens.

$1.74 Billion Spent On Video Game Content? That's a Lot of Microsoft Points.

Image via DICE Designer @ChristinaCoffin

Someone once said that the guy that invented money was smart, but the guy that invented the poker chip was a genius. I suppose the same could be said for Microsoft Points, Facebook Credits, Wii Points and all the rest because according to a recent report, in Q2 2011 consumers spent more on video game content than they did buying physical video and PC game software. "Content" seems to be defined as anything except physical games, including in-game content, game downloads (including mobile games like on on your iPhone), game rentals and everything else.

To me it's a staggering number, and indicative of where the industry is headed. A few years ago I don't even think I'd heard of the term "DLC," but now if I love a game I won't think twice about spending 1,200 Microsoft Points on new maps. And iPhone and iPad games? What's a couple of bucks if I can get a few good hours out of it (or, more importantly, if it will distract my kids for 15 minutes).

"It adds up" is apparently an understatement.

Consumers spent additional $1.74 billion on video game content in Q2 [BGR.com]

Battlefield 3 Multiplayer Beta First Thoughts

The free Battlefield 3 Multiplayer beta opened up to the general public yesterday and after many attempts I was able to get into a few games to try it out. Demand must have been incredible because connecting to a game was really difficult (my suggestion is to just keep trying until it works). But it's a free beta and these things are to be expected, so ignoring the connection issues I thought I'd write up a few of my thoughts on the experience.

First, let me give BIG kudos to EA for making this available to the general public for free. Usually you have to pre-order the game or buy another completely different game in order to have access to the beta. Not with Battlefield 3, and I hope the strategy works. I'd love to have access to betas of other upcoming games, though my suspicion is that a free beta is a pretty good indicator of how confident EA and DICE are that this game is going to be successful, and a lot of other games probably wouldn't be as confident.

The game looks great, and I don't think a first person shooter has ever looked this good on the XBOX 360. The gameplay is largely the same as Battlefield Bad Company 2, with some noted improvements. They've changed out the fighting classes, giving the Assault class a med kit and replacing the Medic class with a Support class that carries ammo. I was initially able to get the most kills with the Support class, but all of the classes seem much more well balanced now. The Recon class has a sniper rifle but it feels more like a true Recon role than a sniper. And the Engineering class doesn't dominate quite in the same way it seemed to in BFBC2.

The other notable gameplay improvement is the ability to lie prone to get a shot or (more likely) duck out of the way of flying bullets. It feels weird to do initially, and I think it's one of those things that will take the longest to get used to. However, it also has the best chance of being the thing that I'll enjoy it the most of all the new features.

One odd change seems to be that the weapon upgrades you get (sights, etc.) seem to be specific to that gun. If you've earned the ACOG sight on that Russian assault rifle, it doesn't also transfer over to the M-16 on the American side. I suppose this encourages players to use all sorts of weapons, but I think having to slog it through iron sights on some of these guns will be more of a pain in the ass than anything.

The biggest problem I have with the beta though is a simple thing from BFBC2 that I would have bet money they would have fixed in Battlefield 3. In the Battlefield 3 beta a player still isn't able to quit the game in the "lobby" in-between rounds. You can't even quit while you're selecting your load-out, you have to wait until you spawn. Don't the people who make the game play it socially too? Usually you want to finish a game before you quit, but with Battlefield you have to wait until the next one starts before you can quit. Sitting in the lobby waiting until the next game starts so I can then quit the game is very annoying. It seems like such a simple thing that they could fix, and I can't find a reason why they wouldn't change it. In fact, I can think of a ton of reasons why they should.

The Battlefield 3 beta is fun, and even if you don't think you'll be buying the game it's definitely worth a download. It's a free way to play what is likely going to be one of the top shooters on the XBOX 360 ever. Just have some patience trying to get in.

Battlefield 3 Beta [Battlefield.com]

You can also pre-order Battlefield 3 for $59.95 from Amazon.com.

Netflix Is Going To Offer Video Games. But Why Now?

(Yes you did Netflix. Yes you did.)

I got an email on Sunday from Netflix. It was an apology email, telling me they were sorry for the way they screwed up the splitting of the online and the mail-in DVD service. It was appreciated on my part, because as a customer since the unlimited DVD plan was called the "Marquee Club," I was pissed off about getting my rates unceremoniously jacked up.

But that's not what was interesting about the email. The interesting thing was the announcement that their new disc mailing service (called "Qwikster") was going to include Wii, PS3 and XBOX 360 video games. It will be an additional fee to your monthly bill - much like getting Blu-Ray discs costs extra.

It always seemed to me that they could have incorporated video games into their existing service a long time ago. It could have been done with relative ease and taken advantage of their already huge user base in the process. Whatever the reason was for not renting games, they've now changed their minds and I think I have a pretty good theory as to why.

Qwikster is going to have to make money for Netflix, and fast judging by the blunder in the pricing restructure and the mass exodus of many of their users. So Netflix has to hold onto the business, even though discs are dying and are slowly being replaced in every form of media (video, music) that relied on them. All except the console video game.

If you're going to sell a service that mails old fashioned pieces of plastic back and forth to people, it makes sense to include the one thing that will still probably be shipped on a disc for a long time to come. Digital delivery is quickly on its way to being the dominant way people rent movies and TV shows, but the day I can buy a digital download of Gears of War 3 on my console (and be as satisfied that I have ownership of a copy of the game) seems a long way off. These games take massive amounts of data (gigabytes), and the next generation of consoles will likely garner games that require even more. A console isn't a PC with ever expanding hard drives - and honestly even PC gaming is really in many ways just beginning to figure out digital delivery with services like Steam.

I have no idea if Qwikster will be successful or not. Looking around at the number of Red Box kiosks I see every day I'm not too optimistic. But including games as an option does seem like a good idea, and they'll probably pick up a lot of customers who never tried a service like GameFly but might get a Wii game or two for their kids. And from Neflix's perspective it might be better late than never.