As the economy continues to flounder, it seems no one is immune from its bite. Sega of America and Microsoft are the latest video game maker to announce layoffs.

Sega has let 30 people go in an effort to streamline its operations and reduce costs. Sega has issued an official statement about the move: “Sega of America has grown at pace with the booming videogame industry, but at this time of economic recession, harsh retail landscape, and the reality of business challenges to profitability, we must take steps to reduce our cost structure and ensure long-term success."

Sega joins a long and ever-growing list of video game and related companies that have announced layoffs. Some of the more notable firms to slice their staff numbers have included Midway, EA, Funcom and Sony. Microsoft also announced it will let up to 5,000 go across many of its departments.

Although I don’t have a crystal ball to predict what will happen tomorrow, next week or next year, it is interesting to note that Nintendo has been largely quiet in this economic downturn. In fact, some industry writers and analysts say that company is actually experiencing somewhat of a boom.

In Canada alone, the Wii sold nearly 700,000 units without Christmas season sales. About 10.2 million consoles sold in America.

If Nintendo is any indication, the companies that will do well in this recession are those that are lean, mean and offer products that provide not only entertainment, but also value. While it’s hard to find good news in the recession, if anything, maybe a return to good old fashion value for money invested will be witnessed more in the gaming world and outside of it, as well.

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Labels: microsoft, Nintendo, nintendo wii, sega, Wii

As the next-generation console race leaves Sony’s PlayStation 3 in the dust the problem is not with the console, it’s with the price tag. With a starting price of $399, the console’s bells and whistles just haven’t been enough to move the PS3 off the shelves. This could change in April.

According to industry analyst Michael Pachter from Wedbush Morgan Securities, Sony is likely to drop the price of the console to a sweet $299. This would better position it against the Wii and the Xbox 360 in terms of investment.

“Once the PS3 is at a more affordable price point, we think that sales of that device will once again begin to grow,” Pachter is quoted as saying.

Pachter is convinced the price cut is necessary to make the PS3 more attractive in a market where consumers are forced to hang on to every penny they have. He also expects Microsoft to drop pricing on its Xbox 360 even more.

If Pachter is right, 2009 could shape up to be an interesting year for gamers who have yet to jump on the next-gen bandwagon.

The question is whether or not a PS3 price cut would come soon enough to balance out the financial losses Sony has faced, in part, due to the PS3. The console costs almost $450 to make, which means game sales would have to be extremely high to make up for the loss of another $100 in entry price.

Add to this the prediction that Microsoft will further slash the 360’s price and it might just turn out to be an even bigger hit for Sony. While it technically has the most impressive of the next-gen machines, players still want value. The 360 already offers this with its most recent price tag sweetening the deal. Put another cut out there and Sony could be very hard-pressed to compete.

Although a price cut would make the PS3 a whole lot more attractive, it just might be a case of a little too little and a little too late.

Regardless, it will be interesting to see how the Big 3 compete in a market where value and pricing suddenly matter a whole lot.

Nods to Xbit

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Labels: microsoft, nintendo wii, ps3, sony, xbox 360

Sony’s PlayStation 3 might be the most powerful and impressive of the next-gen consoles, but that isn’t translating at the sales counter. With a starting price tag of $399, this machine does require a serious investment. While the power and graphics capabilities make it a sound purchase, Sony just can’t seem to beat out Nintendo’s Wii or Microsoft’s Xbox 360 Arcade in the sales department.

There are a host of reasons for this that go well beyond the pricing difference. Now that Microsoft has dropped the starter 360 to $199 and the Wii price remains a very fair $249, Sony seems to be running a little scared. The proof is in the latest marketing ploy. Sony has released a value comparison chart that shows the PS3 offers a whole lot more bang for the buck over the two other consoles.

While there’s no denying that the PS3 does offer a tremendous amount of power and lots of bells and whistles, these things are not adding up to be enough to make gamers rush out and buy the console.

So, what’s the PS3 missing?

It all comes down to perceived value. Sure, the starter 360 doesn’t have Wi-Fi or an included hard drive. It does, however, have a mass of titles available for play.

Plus, it does provide these things as optional if players decide they need or want them. It, in short, gives users choice.

The Wii doesn’t come with a whole lot of bells and whistles either. Add ons aren’t really part of the design. This console does, however, deliver a ton of titles and a whole lot of fun. The value is there.

We have all three consoles in my house. The Wii and the Xbox 360 get used a lot. The 360, in fact, is used daily for playing Halo, Call of Duty (and Pacman. Hey! I’ve gotta have a vice, right?). The PS3 has been relegated to replace a broken DVD player. I don’t think we’ve played a game on it in about six months.

While the PS3 has the power, it doesn’t offer the same level of fun. And, if you look at the pricing of the three consoles, you can get a Wii and now an Xbox 360 for only about $50 more than a single PS3. Now, that’s real value!

Sony's going to have to do a whole lot more than make neat charts to convince buyers the PS3 offers enough use value to justify the price.

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Labels: call of duty, halo, nintendo wii, ps3, sony, xbox 360

There is no denying that Nintendo has done it again. Not only is its console the hottest thing on the market, but the company even has Americans falling all over themselves to get fit – Wii Fit that is.

The shortage of this anti-couch potato “game” was predicted by Nintendo itself prior to the start of the 2008 holiday season and it’s panning out to be quite true. Retailers all over America have been running into shortages of this hot demand item.

Amazon.com, for example, has instituted a Wii Fit purchase limit policy. On the Wii Fit page, Amazon warns customers: “As you may know, the Nintendo ‘Wii Fit’ is in great demand, and there are shortages of this product across the U.S. In an effort to provide as many customers as possible with the opportunity to purchase a ‘Wii Fit,’ we are limiting the total number of ‘Wii Fit’ units that can be purchased. As a result, each household may only purchase two Nintendo ‘Wii Fit’ units within any 30-day period.”

Even in my local Wal-Mart in the Tampa, Fla., area, a limit of one per customer is in effect. A sign hangs ominiously on the Wii display proclaiming this fact. Unfortunately, the store’s been out of Wii Fit boxes for a while.

So, what is it about this particular Nintendo creation that has had shoppers going nuts since its release in May? It all comes down to the sheer brilliance of this title. Not only is Wii Fit fun, it also provides one heck of a workout.

A friend of mine managed to snag one earlier in the holiday shopping season and I’ve been hard-pressed to catch her on the telephone ever since when she’s not Wii Fitting. An avid sports fan and gamer, she said she wanted the Fit just to see if it would work. She was in shock when she realized she had actually broken a sweat following the routines.

While a lot of people will probably go without a coveted Wii Fit this holiday season, there’s no doubt Nintendo has done it again. The company has not only packaged and sold simplicity, it’s got gamers actually on their feet, working out and breaking a sweat in the process.

Now, that’s impressive!

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Labels: nintendo wii, Wii, wii fit

As the economic downturn continues to take its toll worldwide, Sony has joined the list of manufacturers that show the gaming industry isn’t bulletproof. That corporate giant has announced plans to shave its workforce by a whopping 8,000 people. It also intends to close quite a few of its manufacturing facilities to help it save an estimated $1.1 billion at next fiscal year’s end.

As Game Spot points out, the news is just the latest in a series of blows to the industry. Earlier, EA announced the reduction of 600 employees and a loss of $310 million. Other gaming and electronics industry companies have also faced the crunch, including Midway, Eidos and Samsung.

While Sony joins the conga line of companies impacted by the worldwide economic crisis, its news is particularly troublesome. When the giants suffer, you know it’s bad out there.

Although Sony’s announcement does highlight the severity of the global downturn, the entire situation can end up being good news for the industry. As more consumers tighten their wallets and demand quality over quantity, it could force those who want to survive to be even more creative and offer more bang for the buck.

While Sony is crying over sales, Microsoft is cheering its three-to-one sales victory over the PS3 on Black Friday. This, in my opinion, is largely due to the value the $199 Xbox 360 now offers gamers. The Wii also still seems to be more than holding its own.

It seems that sales, although down, are still coming. Consumers are demanding value for their money and they are turning to the products that deliver. The end result could be very troubling times for the industry as a whole, but it might just emerge leaner, meaner and even more intriguing for gamers.

On a side note, my heart goes out to those who have lost their jobs. This is a horrible time to be out of work. The human toll of the downturn should not be discounted, and it’s my fear we are only seeing the beginning.

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Labels: microsoft, nintendo wii, PlayStation 3, ps3, sony, xbox 360

It has cross-generational appeal. The price is right. The game play is fun. Still, there is something missing from Nintendo’s Wii that does help the competition edge it out with certain buyers. That something is a video delivery service, something at least one analyst thinks may soon be on the horizon.

Former Microsoft senior exec, Colin Dixon, who now works for The Diffusion Group, recently discussed the differences in consoles and content delivery.

"(Nintendo) Wii hasn't delivered any movie services, but once they do, and we expect them to do that, they will have a much broader set of content."

Evidence that Dixon’s prediction is correct is found in Japan where Nintendo plans to release a theater channel soon. No plans, however, have been discussed for a North American version – just yet.

Speculation as to what Nintendo will do for delivery of content ranges from besting Xbox Live with an even broader array of programming to turning the devices into cable delivery boxes to compete with local providers. There’s also hope in the gaming community a firmware release might enable DVD use.

No matter how you crack it, if Nintendo does add some sort of video delivery ability to the consoles, they’d go up immensely in perceived and actual value. I can tell you in our home, the PlayStation 3 doubles as a DVD/Blu-ray player and is used more for that than gaming. The Xbox 360 also gets a fair amount of use as a movie-viewing machine when programming on our local cable company’s on-demand channel is light.

It would be nice to see Nintendo enter this fray. I might never have to buy a DVD player again! My fingers are crossed.

Via The Wiire

Labels: microsoft, nintendo wii, PlayStation 3, Wii, xbox 360, xbox live

Gamers wondering what will be hot this holiday season only need to look back to the past two years to see what’s coming. While Nintendo is promising a good supply of consoles for the season, some retailers are not convinced they will be able to meet demand. GameStop, in particular, is expecting a complete sell out.

According to GamePro, David Carlson, GameStop’s CFO, is anticipating a run on the consoles. In particular, he expects Wii Fit to sell out.

"Wii Fit is in very, very short supply. It sells through as quickly as it hits the stores," Carlson said. "And although the Wii hardware is in very good supply right now we believe it may as well be out of stock by the holiday season."

Nintendo, however, is confident it can meet the holiday demand for consoles. The Wii Fit is another issue all together though.

“With Wii hardware, I think we've got a good shot at meeting demand during the holidays," Reggie Fils-Aime recently told Forbes. "With Wii Fit, I know we'll fall short."

With many holiday shoppers looking for bargains and value both, Carlson’s prediction makes a fair amount of sense. The Wii, as much as I picked on it in the past, does offer both value and excellent pricing. This is a console that can cut across generational lines and give owners some serious bang for their bucks. While it might not have the bells and whistles of the competition, it is a purchase that will get used – unlike many other gifts out there for kids and adults both.

So, if you want to get your hands on a Wii for Christmas, my suggestion is to shop now. Chances are reasonably strong that finding one as the holiday approaches will become increasingly more difficult.

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Labels: nintendo wii, Wii, wii fit

In a time when most earning reports are bleak and the economy looks even bleaker, video games seem to be doing more than holding their own. If you’re a fan of console or computer-based gaming, chances are you already know the reason why: Video games can offer a big bang for the buck.

According to Reuters, sales of video game-related hardware and software climbed an estimated 18 percent in October. While sales were down 7 percent in September, Wii consoles became a shining star in boosting the numbers for October. With an estimated 800,000 units sold in that month alone, the little console that could just keeps on going. In fact, the Wii is said to have sold 13 million units since its debut two years ago, making it more popular than even World of Warcraft.

As more people scale back their entertainment spending and look for things that offer repeat fun and real value, I wouldn’t be surprised to see video games continue to do well in sales.

Microsoft, however, isn’t completely banking on this based on David Dennis’ quote: “We feel cautiously optimistic (going into the holidays), we don't see anything in this (NPD) data that leads us to believe there's a pullback."

With the overall industry remaining robust at about $22 billion in sales for the year, Microsoft probably doesn’t have much to worry about.

What Reuters failed to point out in its article is the likely reason why games are doing so well. It all comes down to smart investments. People today can spend $50-plus on dinner and movie or take that same money and buy a game, which can be played over and over again. Console buys are smart, too, because they can double in for other entertainment. Watch a Blu-ray disk on a PS3 or rent a move over Xbox Live and the real beauty of being a gamer in this economy becomes clear.

While critics out there might scoff, gamers are ahead of the curve when it comes to surviving in this economy and having a little fun along the way.

Labels: nintendo wii, ps3, Wii, world of warcraft

Hoping to get your hands on a copy of Wii Fit in time to whip yourself in shape for the holidays? You’re in luck! At least you could be if you’re a fan of “Extra.”
Warner Bros. “Extra” wants to help its viewers get fit while having fun. The entertainment magazine television show is giving away a copy in a promotion to sign up “friends” on its Web site.

Now in its 15th season, “Extra” is the second-longest running entertainment news show on television. Starring Mario Lopez, from “Saved by the Bell” fame, the show covers what’s hot and what’s not in Hollywood.
Gamers or viewers who sign up online to be “Extra” friends will automatically be entered to win a copy of Wii Fit. They can also win one of three Mario Super Sluggers packages.

Interesting promotion, I’ll give them that. Not many news releases catch my eye, but this one did. Wii Fit has become a sensation since it hit store shelves. Shortages in my particular community led a friend of mine to rope an out-of-state relative into sending her a copy. I understand from her it does provide quite a challenging workout along with some fun.

To check out the promotion and have a chance to win your own copy of Wii Fit, click here.

Labels: nintendo wii, Wii, wii fit

It might be one of the best-selling consoles on this side of the globe, but the Japanese have had different opinions since day one. It seems those opinions are holding strong.

According to Punch Jump, the Xbox 360 is still hanging out in the No. 6 position in Japan, falling behind most other gaming machines, handhelds, too, in the country.

Average sales for the console on a weekly basis there fall in between 2,000 and 3,000. Software ranking is also sluggish, but that makes sense with the console's popularity or lack thereof.

Still, there's a silver lining in the cloud. Amazon Japan's video game division has Forza Motorsport 2 and another 360 title on its Top 20 list.

Will they be enough to get the console some attention?

Probably not enough. With the Wii and the PlayStation 3 both trouncing the 360 on weekly sales, a pull out of the figures seems unlikely.

Still, it's doubtful Microsoft ever bet the farm on winning Japanese gamers over.

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Labels: japanese sales, nintendo wii, ps3, video games, Wii, xbox 360

Anyone who thinks video games don't make a difference in the world should check out Time magazine's voting for the 100 Most Influential People list.

Right there in black and white, online and everything, is Nintendo's Shigeru Miyamoto – the creator of Super Mario, Donkey Kong, The Legend of Zelda and most recently the Wii. Granted, he hasn't made it yet, but the mere inclusion on the voting is a fairly big deal.

Time has his pros listed as those creations and his cons being: "His perfectionist tendencies often result in games being significantly delayed and, despite the Wii's gameplay innovation, its graphics are far behind the competition."

While I have to agree with the graphics part of the Wii being somewhat of a con, the perfectionism is exactly what makes Miyamoto so "influential." His games are trendsetters that cut across generational lines. Heck, I grew up playing Donkey Kong and Mario, and now my daughter's generation is enjoying the same brand of game play.

The Wii itself, poor graphics and all, is defining more casual game play in a way I can't remember a console ever having done before. With players ranging from small children to retirees in nursing homes, the Wii is absolutely influential.

What Miyamoto has managed to do is create something that appeals to entire families from the youngest member to the oldest, with a style of play that everyone can understand. In essence, he's given people of all ages a common ground to come together and enjoy a little bit of fun.

I personally think that's pretty darn influential.

Check out Time's listing here.

Nods to Gizmo Cafe.

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Labels: donkey kong, Nintendo, nintendo wii, shigeru miyamoto, Wii

With Sony's slickness and Microsoft's early start, few expected Nintendo to actually come out on top in the next-gen battle, but once again, the Wii has taken on all comers. The DS, too, is leading in sales.

According to Game Daily, March was a very good month for the game maker. "Despite widespread shortages for both systems, more than half a million buyers snapped up the portable Nintendo DS, and Wii was once again the top-selling new home video game console... Wii remains the fastest-selling new console in more than a decade, based on NPD sell-through information over the first five months of availability. So far this year, Nintendo has sold more video game systems than all other manufacturers combined."

"The message delivered by both Wii and Nintendo DS is the same one," said Reggie Fils-Aime, president, Nintendo of America has been quoted as saying. "Innovation is compelling both current gamers and new gamers to experience a new way to play. Nintendo is bringing gaming back to the masses."

While shortages of the Wii will likely remain, production has increased.
Although it was the underdog, Nintendo is clearly proving different can be quite good.

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Labels: ds, Nintendo, nintendo ds, nintendo wii, Wii, wii production

There's no word on when or even if Sony's new "hand-held computer interactive device" will make it to the market, but the patent drawings sure make it look and sound sweet.

The device would put the power of movement in gamers' hands very much like the older model Power Gloves from Nintendo did decades ago, but this updated version might just have a greater ability of catching on thanks to the success of the Wiimote.

The Sony controller would have the ability "to capture a user's hand movements." This means finger, palm and full hand movements combined. It would also offer "tactile feedback" so users would know if their actions have been completed.

While the concept isn't a new one, it could be a real hit in the market of today where gamers have rapidly fallen in love with the Wiimote.

Although there's no word on what Sony plans to do with the patent, it would be an awesome addition to the PS3 or even an eventual PS4. Some are billing it as a Wiimote killer, but that might be a little premature. Still, the concept is one that has found its time. And, the glove style might just be safer than the Wii strap!

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Labels: nintendo wii, ps3, ps4, sony, Wii, wiimote

Nintendo of America’s donation of 100 consoles and copies of Wii Sports to YMCAs across the United States is not only a brilliant stroke of marketing genius, it’s also likely to work in its more altruistic mission.

It seems the YMCAs plan to use the consoles to “keep the energy of children alive and to encourage bonding with parents,” according to a piece on el33tonline.

“Consumers all over America are telling us the Wii helps them to stay active and fit and also gives them another reason to be together as a family,” says George Harrison, Nintendo of America’s senior vice president of marketing and corporate communications. “Wii has quickly become a part of America’s fitness plan, from bowling leagues for active seniors to kids and parents who sweat through Wii Sports pentathlons together.”

I’d have to say from personal experience, the YMCAs and Nintendo are on the right track with this one. The console has an amazing ability to bring parents, children and even grandparents together for a bit of computerized fun.

It might not be the most impressive console out there graphics wise, but it sure is a blast to play.

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Labels: Nintendo, nintendo wii, Wii, wii sports, ymca

UK PlayStation 3 and Wii owners can now listen to the radio on their high tech, next-gen consoles thanks to a deal with Virgin Radio. The music will soon come to the Xbox 360, too.

“It’s great for us to achieve another new media first and be the only UK radio station available on both of these massively popular games consoles,” said James Cridland, director of digital media, is quoted as saying by el33tonline.

Virgin’s saying “if it’s got a speaker on it, we want it to be playing Virgin Radio.”
To access the service, gamers need to open their Internet browsers on the PS3 or Wii and go to virginradio.co.uk/listen. Click on the “listen now” button to access the player designed for the next-gen systems.

This sounds like a solid play to ensure the next-gen consoles become total entertainment devices. Now, to just get this in North America!

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Labels: Nintendo, nintendo wii, ps3, sony, virgin radio

Nintendo Wii fans who have been dying to see what Resident Evil action on the little console that could might be like are soon to get their chance.

Capcom has announced that Resident Evil: The Umbrella Chronicles and Resident Evil 4 will soon creep onto the Wii gaming scene. The Resident Evil 4 version for the Wii will offer the PS2 content and also incorporate Wii’s nifty motion sensing abilities. This game is expected to appear sometime this summer.

The Umbrella Chronicles is a new addition for the franchise. It will reveal some of the back story behind the Umbrella Corporation’s fall and include some locations from the original Resident Evil games. There’s no set date for this installment, but you can be I’ll be in line to check it out.

If Capcom takes advantage of the Wii’s abilities well, the Resident Evil franchise might be the one that defines the console for me. With its great storylines, creepy settings and fun combat, this particular game seems to lend itself well to the console’s unusual abilities.

While the graphics won’t likely be anything to write home out, they’ve never been the strong point of Resident Evil any way. Cool, quirky, monster blasting fun has always been the draw for this series in my mind.

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Labels: capcom, Nintendo, nintendo wii, resident evil, Wii