Saturday, August 15, 2009
Alarm sounded over game futures
A stark warning about the finances of the games industry has been aired at the Edinburgh Interactive conference.
 EA is experimenting with novel ways for players to pay for games |
The sector had suffered "significant disruption" to its business model, Edward Williams, from BMO Capital Markets told the industry gathering.
"For Western publishers, profitability hasn't grown at all in the past few years and that's before we take 2009 into account," he said.
By contrast, he said, Chinese firms were still seeing improved profits.
What makes the difference between Western firms and Chinese developers was the way they went about getting products to players.
Western publishers, said Mr Williams, still relied on the traditional develop methods of putting a game on a DVD and then selling that through retail channels.
Chinese developers focussed primarily on the PC market and used direct download, rather than retail stores, to get games to consumers.
Those Chinese developers were also helped by the low number of console users in South East Asia (other than Japan) which meant developers there did not have to pay royalties to console makers.
Future models
Three factors, said Mr. Williams, were forcing the operating costs of Western firms to spiral upwards:
• Games are getting larger, which meant longer development time and larger staff costs.
• In the 1990s the PlayStation accounted for 80% of the market, today the console space is very fragmented, so developers have to work on many platforms at any one time.
• The cost of licensing intellectual property or gaining official sports body endorsement (such as FIFA or FIA) has gone up.
These factors, said Mr. Williams, explained the stagnation in overall profitability despite sales in the games sector increasing by $30bn (£24.17bn) over the past four years.
Recent figures suggest sales are also coming under pressure. US game sales fell by 29% in the last 12 months suggest statistics from research group NPD.
 The PlayStation no longer dominates pushing up costs for game makers |
Speaking to the BBC, Peter Moore - president of EA Sports - said that while the Chinese and Western markets were still very different, he expected to see some significant changes in the way Westerners buy games in the future.
"In China, PC and mobile platforms will continue to dominate," he said. "There isn't the necessity to buy other pieces of hardware and it is our job to service that."
"In Europe we are going to see more content that's delivered electronically, be that through Steam, Xbox Live or whatever."
Mr Moore added that while this may have some impact on retailers, the future of the high street shop was still bright, especially if you factor in sales of hardware, peripherals and game-time cards.
"The release of Tiger Woods online as a free to play experience will be the real test of the Western consumer's appetite for digital downloading," he said.
The game, scheduled for release in late 2009, has a segment which gamers can play for free online but can also pay for additional content as required.
Now in its sixth year, the Edinburgh Interactive Conference brings together industry figures, developers, publishers and the media to discuss issues facing the interactive game sector and to try to promote creativity.
From BBC
Premier League round-up
Manchester City put down an early marker of their ambitions for the season by beating Blackburn Rovers away from home as title favourites Chelsea left it late to overcome Hull City on the opening day of the Premier League season.
Arsenal fired a warning to any critics doubting their title credentials with an emphatic 6-1 victory at a woeful Everton.
New boys Wolves and Burnley suffered 2-0 defeats against West Ham and Stoke City respectively, while Aston Villa surprisingly lost by the same scoreline against Wigan Athletic.
Portsmouth look set for a difficult season after losing at home to Fulham and Sunderland's campaign got off to a winning start after a narrow success at Bolton Wanderers.
Didier Drogba scored a lucky injury-time winner as Chelsea overcame stubborn resistance from Hull City to secure a 2-1 victory at Stamford Bridge.
Stephen Hunt marked his debut by putting the Tigers in front on 28 minutes, but Drogba fired home a free-kick to equalise before half-time and the Ivory Coast striker's attempted cross crept inside the far post to claim the points at the death.
Arsenal enjoyed a dream start to the new season as Cesc Fabregas ran the show in a brilliant 6-1 victory over Everton at Goodison Park.
Denilson opened the scoring for the Gunners on 26 minutes before Thomas Vermaelan and William Gallas were both left unmarked to head home free-kicks.
Fabregas made it 4-0 to Arsenal just three minutes after half-time and the Spaniard added another on 69 minutes with a low shot from 25 yards before Eduardo tapped home a late sixth. Louis Saha scored a late consolation.
Mark Hughes
City's goal after just three minutes arrived on the back of some desperate defending on their own line with the visitors then breaking upfield before debutant Emmanuel Adebayor smacked a thumping effort past Paul Robinson. With Rovers pressing for an equaliser, City broke in the final minute and, after taking his time, Stephen Ireland eventually slipped the ball inside the post. Burnley were given an early warning of the difference between the Championship and the Premier League following a 2-0 defeat by Stoke at the Britannia Stadium. Ryan Shawcross Wolves endured a disappointing return to the Premier League as West Ham scored a goal in each half in a 2-0 victory at Molineux. Mark Noble curled home a sublime opening goal for the Hammers midway through the first half and Matthew Upson made sure of the points with a 69th minute header. Aston Villa were booed off at the end of their first game of the season after crashing to a 2-0 defeat at home to Wigan. Wigan twice came close to taking the lead when Charles N'Zogbia struck the post and Hugo Rodallega's header was cleared off the line by James There were no doubts over the Latics' opener on 31 minutes, though, as Rodallega beat Brad Friedel with a stunning volley and Jason Koumas slotted home the second 11 minutes after half-time. Darren Bent made an instant repayment on his club record transfer fee by scoring the only goal as Sunderland beat Bolton 1-0 at the Reebok Stadium. Bent, signed from Tottenham Hotspur, Fulham ensured there will not be such a long wait for an away win this season as Roy Hodgson's The only goal came after just 13 minutes when Clint Dempsey's drive from 25 yards took a wicked deflection off Bobby Zamora www.skysports.com
Death takes UK Afghan toll to 200
A British soldier has died from wounds suffered in Afghanistan, taking the number of UK troops killed since operations began in 2001 to 200.
The soldier, from the 2nd Battalion the Royal Welsh, died in hospital in Birmingham. Family have been informed.
He was injured in an explosion while on patrol in Helmand on Thursday.
Prime Minister Gordon Brown described the death as "deeply tragic news", but renewed his commitment to the "vital" mission to make Afghanistan stable.
"Today is a day of mourning, and also a day of reflection. I want to thank the entire armed forces and the families and communities which sustain them," he said.
"We owe it to you all never to forget those who have died. But my commitment is clear: we must and will make Britain safer by making Afghanistan more stable.
"We will honour and support those who have been killed or wounded in the field of battle. And we will give those who fight on all the support that they need to succeed in this vital mission."
'Deeply saddened'
The latest soldier to die in the conflict was wounded while on vehicle patrol near Musa Qala in Helmand province on Thursday morning. He died of his wounds on Saturday at the Royal College of Defence Medicine in Selly Oak.
Lt Col Nick Richardson, spokesman for Task Force Helmand, said: "We are deeply saddened by his loss and join with his family and friends to mourn his passing."
A total of nine UK personnel have died this month as troops attempt to shore up security ahead of August elections.
The latest death follows those of three soldiers killed by roadside bombs while on foot patrol in Helmand on Thursday.
Two of the soldiers had been attempting to help a comrade who had been wounded by an earlier blast.
Rifleman Daniel Wild, 19, from County Durham, and Captain Mark Hale, both serving with the 2nd Battalion The Rifles, were carrying Lance Bombardier Matthew Hatton, 23, of 40 Regiment Royal Artillery, from North Yorkshire, when they were hit by a second explosion.
'Progress made'
Defence secretary Bob Ainsworth said news of the 200th death made it a "grim day" and said Britain mourned every loss of life in the conflict.
But he insisted UK troops had been making "good progress" in their mission.
He accepted the recent offensive against the Taliban - Operation Panther's Claw - was a "tough fight", but said it had brought nearly 80,000 Afghans out from under the "tyranny of the Taliban".
Mr Ainsworth also said he believed the second Afghan presidential elections, to be held later this week, would offer more Afghans "a stake in their own emerging democracy" and provide greater security for the UK.
"It is only by supporting the Afghan government and its security forces to bring stability can we ensure that we prevent Afghanistan becoming the haven for terrorists it once was, protecting Britain from attack and promoting peace across the region.
"We must not fail in this task, and we will not."
Shadow defence secretary Liam Fox said passing the 200th death mark served as a "stark reminder of the bravery and sacrifice of British troops in Helmand".
news.bbc.co.uk
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