USAToday recently published an article from the associated press about how video games are changing. It’s becoming more than a means of entertainment, but also a place for visual and audio artists to display their work. As video games create more buzz with new technology, the article focuses on this art form luring in new audience members.
Now, video games are able to develop characters who evolve with the decisions made by the players. “It's an attempt to interest new customers and reverse a decline in video game sales as the maturing business fights for people's attention in the face of new devices such as the iPad.” (Ryan Nakashima, Associated Press) Players are now asked to make moral decisions, which shape the path or evolve the outcome of their game. Upcoming games such as Bioshock Infinite and Star Wars: The Old Republic tap into this vein.“With the recent Supreme Court decision protecting violent games as free speech, it's more appropriate than ever for games to have more of a message.”
The article also notes the drop in video game console sales since 2008, but we must also consider that fact that there as not been a new console out since then. Businessweek's video game industry blog posted an article; Spending on Gaming to Exceed $74 Billion in 2011,which differs from Associated Press's projection for the industry to by flat over last year with an expected increase of 10.4%. With rumors of a new XBOX system as well as Wii U and Sony’ enhancements to PS3, I would expect that we will see this number rise.
"From indie games to more mainstream offerings, in the next decade or so we are going to be seeing a greater diversity in subject matter," said Scott Steinberg, the chief executive of video game consulting company TechSavvy Global. "The selection of games will more closely resemble your selection of movies."
For this reason, I think it is even more important that we focus on the direction this technology is going. A-list actors, writers, and directors are increasingly participating in the industry, lending their voices, faces, and ideas to the medium. Understanding the needs of this audience helps us create the right product. By providing a streaming service for these games, we would be able to maximize the target audience and potential revenue growth for the industry, not to mention the advancements in audio and video quality as a streaming medium that would benefit even the independent film or video game maker.
Saturday, July 9, 2011
Saturday, June 18, 2011
Competition in the Digital World?
My first interview choice was postponed due to scheduling so I decided to take advantage of the training I was attending this week and ask some questions about the video game market for Best Buy.
It is no news that retailers are focusing on the video game market. At E3, we saw the introduction of the PS Vita (Sony) and the Wii U (Nintendo). As for XBOX’s big release, I think that was more about the next addition to the Halo franchise with Halo 4 as well as more titles for Xbox Kinect and a slimmer version of the Xbox console. For the Top 10 releases from E3, check out: E3 Top 10.
With more news of other gaming retailers acquiring companies with digital distribution models, it becomes even more important that actual stores capture customer loyalty and revenue with those shopping.
This week I spoke shortly with one of the Project Managers for Best Buy who has worked with their Musical Instrument team, Media, and now their Video Game initiative. My goal was to get a clearer answer on what Best Buy might be doing to compete with retailers like Game Stop. He mentioned that right now, the focus is on becoming more knowledgeable in the video game department and the first strategy is landing the selling culture in the stores.
Continuing our conversation, I asked if Best Buy had any plans in expanding into the digital distribution world. This is where we started talking about the negotiation piece. He informed me that they are currently in talks with an entertainment software company about providing digital services. The two companies have been going back and forth in the negotiation process, which is why digital content is becoming more of a focus.
Without revealing too much information, there are a few different things happening. First, while they are in negotiations, there might be some issues separating the people from the problem. With one specific retailer trying to collaborate with a specific software company, there will always be concerns about how other companies in specific industries will react to this partnership. No one wants to lose business, or their status/reputation. The other is Best Buy’s current backup plan, offering more “gaming cards/points” for games through Xbox live, Nintendo or PS3. You have to have a BATNA and right now, I do not see if as a full back up plan as it is not a permanent solution to the problems on the table, but it does still provide a revenue stream and involves more than the on company they are currently in negotiation with. The goal to any negotiation is mutual benefit. At this point, it sounds like that has not been clearly defined for both parties, causing a delay in the agreement.
I cannot stress the importance of digital distribution in the gaming realm. As I spoke with new gaming associates about my graduate business plan for video game console digital distribution, I had several people give me additional ideas and even ask if they could work for me if I can make this business happen.
Video game console digital distribution is coming sooner than I think anyone is willing to admit. Much like the music industry, if these big companies do not jump on the digital distribution expansion, they will be gone faster than free Napster. It sounds like Best Buy is slowly getting there, but Game Stop and GameFly have officially made more steps in that direction than the number one consumer electronics retailer.
It is no news that retailers are focusing on the video game market. At E3, we saw the introduction of the PS Vita (Sony) and the Wii U (Nintendo). As for XBOX’s big release, I think that was more about the next addition to the Halo franchise with Halo 4 as well as more titles for Xbox Kinect and a slimmer version of the Xbox console. For the Top 10 releases from E3, check out: E3 Top 10.
With more news of other gaming retailers acquiring companies with digital distribution models, it becomes even more important that actual stores capture customer loyalty and revenue with those shopping.
This week I spoke shortly with one of the Project Managers for Best Buy who has worked with their Musical Instrument team, Media, and now their Video Game initiative. My goal was to get a clearer answer on what Best Buy might be doing to compete with retailers like Game Stop. He mentioned that right now, the focus is on becoming more knowledgeable in the video game department and the first strategy is landing the selling culture in the stores.
Continuing our conversation, I asked if Best Buy had any plans in expanding into the digital distribution world. This is where we started talking about the negotiation piece. He informed me that they are currently in talks with an entertainment software company about providing digital services. The two companies have been going back and forth in the negotiation process, which is why digital content is becoming more of a focus.
Without revealing too much information, there are a few different things happening. First, while they are in negotiations, there might be some issues separating the people from the problem. With one specific retailer trying to collaborate with a specific software company, there will always be concerns about how other companies in specific industries will react to this partnership. No one wants to lose business, or their status/reputation. The other is Best Buy’s current backup plan, offering more “gaming cards/points” for games through Xbox live, Nintendo or PS3. You have to have a BATNA and right now, I do not see if as a full back up plan as it is not a permanent solution to the problems on the table, but it does still provide a revenue stream and involves more than the on company they are currently in negotiation with. The goal to any negotiation is mutual benefit. At this point, it sounds like that has not been clearly defined for both parties, causing a delay in the agreement.
I cannot stress the importance of digital distribution in the gaming realm. As I spoke with new gaming associates about my graduate business plan for video game console digital distribution, I had several people give me additional ideas and even ask if they could work for me if I can make this business happen.
Video game console digital distribution is coming sooner than I think anyone is willing to admit. Much like the music industry, if these big companies do not jump on the digital distribution expansion, they will be gone faster than free Napster. It sounds like Best Buy is slowly getting there, but Game Stop and GameFly have officially made more steps in that direction than the number one consumer electronics retailer.
Friday, May 20, 2011
The Digital Distribution Train Keeps Rolling
The competition for digital distribution in the video game market continues to grow. Now, GameFly may be acquiring direct2Drive.
GameFly is a video game service very similar to Netflix before their digital distribution model, offering media content (video game discs) straight to your door with a prepaid envelope for return to their distribution centers. Subscribers can hold on to the games for any length of time as long as the subscription is kept active.
The move by GameFly is very similar to GameStop’s recent news, acquiring a business that deals with digital distribution. By offering this service, it can increase the company’s revenue and drive profitability.
Much like other digital distribution models for video games, Direct2Drive incorporates digital distribution for Macs and PCs. It seems like more and more gaming distributors/retailers are focusing on digital distribution. Another computer game streaming service, OnLive, does not offer a download service but rather game “rentals,” and purchasing services.
As I continue to research this industry, I am starting to think that I may need to approach a company with my business plan once it is complete. There is still no discussion on streaming console games wirelessly through your specific console. Most of these models seem to be based on computer games. Fortunately, for what I am developing, we will be able to push technology even further.
In June, I am scheduled to meet with the Sr. Director of Global Content Operations for Napster. I will most likely document my interview with her here. I also hope to discuss digital content and the possibilities for the gaming world. This business plan is looking more and more like a solution.
GameFly is a video game service very similar to Netflix before their digital distribution model, offering media content (video game discs) straight to your door with a prepaid envelope for return to their distribution centers. Subscribers can hold on to the games for any length of time as long as the subscription is kept active.
The move by GameFly is very similar to GameStop’s recent news, acquiring a business that deals with digital distribution. By offering this service, it can increase the company’s revenue and drive profitability.
Much like other digital distribution models for video games, Direct2Drive incorporates digital distribution for Macs and PCs. It seems like more and more gaming distributors/retailers are focusing on digital distribution. Another computer game streaming service, OnLive, does not offer a download service but rather game “rentals,” and purchasing services.
Standard retailers and digital distributors are seemingly scrambling to figure out where the digital/physical retail space is heading as consumer tastes shift to social experiences, lower prices, and lighter loads on the desktop/notebook/mobile device. With GameFly moving into the digital distribution space, GameStop moving into the digital and on-demand space, Steam investigating the mobile space, and Nintendo gearing up to launch a new console, 2011 and 2012 looks to bring a huge wave of change in how gamers consume their favorite titles. (http://www.tomshardware.com/news/GameFly-Direct2Drive-IGN-GameStop-OnLive,12791.html)
As I continue to research this industry, I am starting to think that I may need to approach a company with my business plan once it is complete. There is still no discussion on streaming console games wirelessly through your specific console. Most of these models seem to be based on computer games. Fortunately, for what I am developing, we will be able to push technology even further.
In June, I am scheduled to meet with the Sr. Director of Global Content Operations for Napster. I will most likely document my interview with her here. I also hope to discuss digital content and the possibilities for the gaming world. This business plan is looking more and more like a solution.
Friday, May 6, 2011
Is Apple Getting an Audio Upgrade?
The past few days, there has been a lot of talk about Tomlinson Holman being hired by Apple to develop some sort of audio enhancement. Apple is regularly very secretive about their product developments, which is why this news comes as not so much of a surprise, but rather peaks the interest of those in audio. First tweeted by @leolaporte, "I have it on good authority that Tomlinson Holman (of THX fame) is joining Apple to run audio. Major upgrade."
Tom was chief electrical engineer at Advent Corporation, maker of the Apt/Holman preamplifier, and was at Lucasfilm Ltd for 15 years, winding up as the company's Corporate Technical Director and where he developed the THX Sound System and its companions the Theater Alignment Program, Home THX, and the THX Digital Mastering program.
“Tom Holman has always pushed the envelope of sound”(thmlabs.com.) Lucas gave him a year to study audio from on-set to the theater experience in turn developing Skywalker Sound’s state of the art audio mixing rooms. “ Realizing that this could change the way moviegoers experienced feature films, Lucas and the soon-to-be THX team designed a certification program to go beyond the walls of Skywalker Ranch. Thus, THX was born, and made available to movie audiences to coincide with the release of Lucas’ next film, “Star Wars Episode VI: Return of the Jedi" (THX.com)
Holman’s company, TMH Corporation, creates entertainment technology. They “provide solutions to industry-wide problems, make things that have never before existed, set world standards, and pioneer new markets" (tmhlabs.com) From the current business plan I am working on for my master’s in entertainment business, I too am developing entertainment technology, but my means of digital content.
I own Holman’s book on Surround Sound as it was used as a the text for a surround sound class I took at the University of Colorado Denver. After reading this news, I am certainly excited to see what Apple has in store. Though I have been talking about developing HD quality/surround sound streaming for video game content, I would not be surprised if this is the kind of project that Holman is assigned. Other possibilities include Apple developing their own HDTV, other something to do with the “theater” experience.
http://news.cnet.com/8301-27076_3-20059790-248.html
http://www.tmhlabs.com/about/about.html
http://www.thx.com/about-us/the-thx-story/
Tom was chief electrical engineer at Advent Corporation, maker of the Apt/Holman preamplifier, and was at Lucasfilm Ltd for 15 years, winding up as the company's Corporate Technical Director and where he developed the THX Sound System and its companions the Theater Alignment Program, Home THX, and the THX Digital Mastering program.
“Tom Holman has always pushed the envelope of sound”(thmlabs.com.) Lucas gave him a year to study audio from on-set to the theater experience in turn developing Skywalker Sound’s state of the art audio mixing rooms. “ Realizing that this could change the way moviegoers experienced feature films, Lucas and the soon-to-be THX team designed a certification program to go beyond the walls of Skywalker Ranch. Thus, THX was born, and made available to movie audiences to coincide with the release of Lucas’ next film, “Star Wars Episode VI: Return of the Jedi" (THX.com)
Holman’s company, TMH Corporation, creates entertainment technology. They “provide solutions to industry-wide problems, make things that have never before existed, set world standards, and pioneer new markets" (tmhlabs.com) From the current business plan I am working on for my master’s in entertainment business, I too am developing entertainment technology, but my means of digital content.
I own Holman’s book on Surround Sound as it was used as a the text for a surround sound class I took at the University of Colorado Denver. After reading this news, I am certainly excited to see what Apple has in store. Though I have been talking about developing HD quality/surround sound streaming for video game content, I would not be surprised if this is the kind of project that Holman is assigned. Other possibilities include Apple developing their own HDTV, other something to do with the “theater” experience.
http://news.cnet.com/8301-27076_3-20059790-248.html
http://www.tmhlabs.com/about/about.html
http://www.thx.com/about-us/the-thx-story/
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