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	<title>AllThingsD &#187; console</title>
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		<title>Lack of Major Videogame Launches in January Drags Down Sales</title>
		<link>http://allthingsd.com/20120210/lack-of-major-videogame-launches-in-january-drag-down-sales/</link>
		<comments>http://allthingsd.com/20120210/lack-of-major-videogame-launches-in-january-drag-down-sales/#comments</comments>
		<pubDate>Fri, 10 Feb 2012 17:39:51 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[General]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[Activision]]></category>
		<category><![CDATA[Call of Duty: Modern Warfare 3]]></category>
		<category><![CDATA[console]]></category>
		<category><![CDATA[hardware]]></category>
		<category><![CDATA[Liam Callahan]]></category>
		<category><![CDATA[Microsoft]]></category>
		<category><![CDATA[NPD Group]]></category>
		<category><![CDATA[PlayStation Vita]]></category>
		<category><![CDATA[software]]></category>
		<category><![CDATA[Sony]]></category>
		<category><![CDATA[videogames]]></category>
		<category><![CDATA[Xbox 360]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=173526</guid>
		<description><![CDATA[After a number of epic videogame launches prior to the holiday shopping season, publishers took a month off by not releasing any major titles during January.]]></description>
			<content:encoded><![CDATA[<p>After a number of epic videogame launches prior to the holiday shopping season, publishers took a month off by not releasing any major titles during January.</p>
<p><img class="alignright size-medium wp-image-145290" title="call of duty_box" src="http://allthingsd.com/files/2011/11/call-of-duty_box-285x285.png" alt="" width="285" height="285" />As a result, the industry saw a double-digit decline in physical software sales at retail, according to NPD, which tracks the industry.</p>
<p>It said last year new launches represented 13 percent of videogame sales in January, but that last month, the performance of new launches dropped by 99 percent, said NPD analyst Liam Callahan.</p>
<p>Videogame sales for console and handheld game units from retail totaled $356 million in January, falling 38 percent compared to the same period a year earlier. Overall sales, including hardware, accessories and software, dropped 34 percent.</p>
<p>But the drop can&#8217;t be blamed entirely on the lack of new launches. Sales of titles launched in the fourth quarter also performed poorly, falling 31 percent in units compared to the year-ago period.</p>
<p>&#8220;As shoppers were not drawn to stores due to new launch activity, this potentially impacted additional software purchases made on impulse,&#8221; Callahan said in a release.</p>
<p>NPD also estimated sales from used games, downloadable content and social and mobile games. It says those channels accounted for an additional $350 million to $400 million in sales.</p>
<p>Microsoft&#8217;s Xbox 360 continues to be the best-selling console, and Activision&#8217;s first-person shooter Call of Duty: Modern Warfare 3 continues to be the top-selling game title. Sony is banking on a spike in sales from the launch of the PlayStation Vita portable unit, which is expected to hit the market Feb. 22, along with 25 new titles.</p>
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		<title>Zynga's Stock Is Up -- And Why Every Other Game Company Stock Is Down</title>
		<link>http://allthingsd.com/20120113/zyngas-stock-is-up-and-why-every-other-game-companies-stock-is-down/</link>
		<comments>http://allthingsd.com/20120113/zyngas-stock-is-up-and-why-every-other-game-companies-stock-is-down/#comments</comments>
		<pubDate>Fri, 13 Jan 2012 21:44:09 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[Social]]></category>
		<category><![CDATA[accessories]]></category>
		<category><![CDATA[Activision Blizzard]]></category>
		<category><![CDATA[Barry Cottle]]></category>
		<category><![CDATA[console]]></category>
		<category><![CDATA[Electronic Arts]]></category>
		<category><![CDATA[Facebook]]></category>
		<category><![CDATA[GameStop]]></category>
		<category><![CDATA[hardware]]></category>
		<category><![CDATA[Industry Moves]]></category>
		<category><![CDATA[mobile gaming]]></category>
		<category><![CDATA[NPD]]></category>
		<category><![CDATA[social gaming]]></category>
		<category><![CDATA[software]]></category>
		<category><![CDATA[stock]]></category>
		<category><![CDATA[THQ]]></category>
		<category><![CDATA[videogames]]></category>
		<category><![CDATA[Zynga]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=163674</guid>
		<description><![CDATA[Zynga is bucking market trends today and is trading higher despite a report that came out yesterday suggesting that December sales were extremely weak across the industry.]]></description>
			<content:encoded><![CDATA[<p>Zynga is bucking market trends today and is trading higher &#8212; despite a report that came out yesterday suggesting that December sales were extremely weak across the industry.</p>
<p><img class="alignright size-medium wp-image-97852" title="EA_Battlefield3_E32011" src="http://allthingsd.com/files/2011/07/EA_Battlefield3_E32011-213x285.png" alt="" width="213" height="285" />Zynga was up 42 cents, or almost 5 percent today, to close at $8.87 a share.</p>
<p>That&#8217;s a huge reversal from earlier this week when the stock <a href="http://allthingsd.com/20120109/zyngas-stock-nosedives-falling-nine-percent-to-hit-new-low/">nosedived to an all-time low</a>. Meanwhile, none of the traditional game makers were having such a good day.</p>
<p>Electronic Arts closed down $1.47, or 7.5 percent, to $18.04 a share; THQ fell 7 percent to 66 cents a share; Take-Two Interactive fell .5 percent to $14.50 a share; and industry-leading Activision Blizzard slipped 2.5 percent $12.24 a share. GameStop also traded lower, finishing off the day down 2.8 percent to $23.51 a share.</p>
<p>The game makers were universally feeling the impact of an NPD Group report that revealed yesterday that <a href="http://allthingsd.com/20120112/xbox-accounted-for-40-percent-of-all-videogame-sales-in-2011/">videogame software sales fell 8 percent in December</a> compared to the same month in 2010. When including hardware and accessories, like game cards, the entire industry contracted by 21 percent year over year.</p>
<p>Potentially, investors were betting that if the traditional game-makers weren&#8217;t fairing well, then Zynga was a good bet. The leading Facebook game-maker operates purely online and on mobile, so it potentially would be more isolated from the retail and packaged goods sectors.</p>
<p>The old guard vs. new guard battle also played out on the front lines yesterday.</p>
<p>EA was dealt an additional blow when <a href="http://allthingsd.com/20120112/zynga-hires-top-digital-executive-away-from-electronic-arts/">Zynga announced it had hired away Barry Cottle</a>, head of Electronic Arts&#8217; Interactive division. Cottle, who was in charge of the company&#8217;s digital strategy, including social and mobile games, was EA&#8217;s biggest weapon in fighting Zynga&#8217;s dominance on Facebook and had led EA&#8217;s rise on mobile.</p>
<p>But EA&#8217;s loss was Zynga&#8217;s gain.</p>
<p>The social games leader appointed Cottle to the position of EVP of business and corporate development in charge of new global partnerships, acquisitions and other development roles.</p>
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		<title>The Nintendo Wii Still Managed to Outsell the 3DS in 2011</title>
		<link>http://allthingsd.com/20120103/the-nintendo-wii-still-managed-to-outsell-the-3ds-in-2011/</link>
		<comments>http://allthingsd.com/20120103/the-nintendo-wii-still-managed-to-outsell-the-3ds-in-2011/#comments</comments>
		<pubDate>Tue, 03 Jan 2012 16:27:56 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[Mobile]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[3DS]]></category>
		<category><![CDATA[console]]></category>
		<category><![CDATA[DS]]></category>
		<category><![CDATA[Mario Kart 7]]></category>
		<category><![CDATA[Nintendo]]></category>
		<category><![CDATA[Super Mario 3D Land]]></category>
		<category><![CDATA[The Legend of Zelda]]></category>
		<category><![CDATA[videogames]]></category>
		<category><![CDATA[Wii]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=159248</guid>
		<description><![CDATA[Nintendo released sales figures for 2011 today, reporting that its hot seller continued to be the Wii. The Wii sold 4.5 million units, and in close second was the new portable game unit, the Nintendo 3DS, which sold four million units. In last place was the older Nintendo DS family, which sold more than 3.4 million units. Hardware sales were fueled by Nintendo's own first-party software titles, like Super Mario 3D Land and Mario Kart 7 for the 3DS and The Legend of Zelda: Skyward Sword for the Wii, which have all sold more than one million titles.]]></description>
			<content:encoded><![CDATA[<p>Nintendo <a href="http://press.nintendo.com/articles.jsp?id=32357">released sales figures</a> for 2011 today, reporting that its hot seller continued to be the Wii. The Wii sold 4.5 million units, and in close second was the new portable game unit, the Nintendo 3DS, which sold four million units. In last place was the older Nintendo DS family, which sold more than 3.4 million units. Hardware sales were fueled by Nintendo&#8217;s own first-party software titles, like Super Mario 3D Land and Mario Kart 7 for the 3DS and The Legend of Zelda: Skyward Sword for the Wii, which have all sold more than one million titles.</p>
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		<title>What Connects a PlayStation Vita to a Walkman? A Designer.</title>
		<link>http://allthingsd.com/20111223/what-connects-a-playstation-vita-to-a-walkman-a-designer/</link>
		<comments>http://allthingsd.com/20111223/what-connects-a-playstation-vita-to-a-walkman-a-designer/#comments</comments>
		<pubDate>Fri, 23 Dec 2011 20:57:22 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[Mobile]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[analog]]></category>
		<category><![CDATA[console]]></category>
		<category><![CDATA[controller]]></category>
		<category><![CDATA[gaming]]></category>
		<category><![CDATA[handheld]]></category>
		<category><![CDATA[PlayStation 3]]></category>
		<category><![CDATA[PlayStation Vita]]></category>
		<category><![CDATA[portable gaming]]></category>
		<category><![CDATA[Sony]]></category>
		<category><![CDATA[Sony Corporate Centre]]></category>
		<category><![CDATA[Sony Walkman]]></category>
		<category><![CDATA[Takashi Sogabe]]></category>
		<category><![CDATA[touch pads]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=156663</guid>
		<description><![CDATA[Sony's upcoming handheld gaming device, the PlayStation Vita, was developed in part by one of the original creators of one of the most successful consumer electronics devices of all time.]]></description>
			<content:encoded><![CDATA[<p><img class="alignright size-medium wp-image-156671" title="SonyWalkmanFamily" src="http://allthingsd.com/files/2011/12/SonyWalkmanFamily-380x285.jpg" alt="" width="380" height="285" />Sony would consider itself very lucky if the PlayStation Vita has the same staying power as the Walkman, which celebrated its 30th anniversary two years ago.</p>
<p><a href="http://allthingsd.com/20111027/sonys-playstation-not-concerned-that-the-vita-will-miss-the-holidays/">Though it won&#8217;t arrive in the U.S. until Feb. 22</a>, Sony&#8217;s newest handheld gaming device has stumbled out of the starting gate in Japan. The device sold 321,400 units in two days, but on Monday, Sony <a href="http://allthingsd.com/20111220/complaints-about-sony-playstation-vita-arise-after-japan-launch/">issued an apologetic statement</a> after complaints emerged that the Vita was freezing and crashing.</p>
<p>But, for what it&#8217;s worth, there is a common thread between the two products: Sony&#8217;s new gadget was developed in part by one of the original creators of one of the most successful consumer-electronics devices of all time.</p>
<p><a href="http://blog.us.playstation.com/2011/12/23/five-things-we-learned-at-the-japan-ps-vita-launch/#utm_source=feedburner&amp;utm_medium=feed&amp;utm_campaign=Feed%3A+PSBlog+%28PlayStation.Blog%29">As the PlayStation blog reports</a> today, the look and feel of the Vita was designed by Takashi Sogabe of the Sony Corporate Design Centre. It also notes that Sogabe, who has been at the company for 27 years, worked on the original Walkman.</p>
<p><img class="alignleft size-full wp-image-156670" title="sony_takashi sogabe" src="http://allthingsd.com/files/2011/12/sony_takashi-sogabe.png" alt="" width="180" height="270" />While it probably isn&#8217;t entirely accurate that he worked on the original Walkman (since it came before Sogabe&#8217;s time), <a href="http://www.scei.co.jp/interview/interview6_e.html">a bio on Sony&#8217;s Web site</a> gives him credit for a &#8220;See-through Walkman,&#8221; and a &#8220;Beautiful Walkman.&#8221; He also worked on the PlayStation 3 and Sony&#8217;s e-reader.</p>
<p>The PlayStation blog will be posting a full interview with Sogabe later, but today&#8217;s post did offer some details.</p>
<p>Sogabe said the design team came up with various versions of the Vita, including one with a sliding back, and another that snapped shut like a clamshell.</p>
<p>He also said that they tried to incorporate two touchpads in place of the dual analog sticks, but that they weren&#8217;t accurate enough. </p>
<p>(<em>Takashi Sogabe image courtesy of <a href="http://www.sony.net/Fun/design/activity/product/prs-505_02.html">Sony</a></em>)</p>
<p>(<em>Walkman images courtesy of <a href="http://en.wikipedia.org/wiki/File:SonyWalkmanFamily.JPG">Wikipedia</a></em>)</p>
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		<title>Nintendo's President Expecting a Strong Holiday and Says What He Really Thinks of Zynga</title>
		<link>http://allthingsd.com/20111222/nintendos-president-expecting-a-strong-holiday-and-says-what-he-really-thinks-of-zynga/</link>
		<comments>http://allthingsd.com/20111222/nintendos-president-expecting-a-strong-holiday-and-says-what-he-really-thinks-of-zynga/#comments</comments>
		<pubDate>Thu, 22 Dec 2011 14:00:07 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[Media]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[Social]]></category>
		<category><![CDATA[3DS]]></category>
		<category><![CDATA[Black Friday]]></category>
		<category><![CDATA[Christmas]]></category>
		<category><![CDATA[console]]></category>
		<category><![CDATA[entertainment]]></category>
		<category><![CDATA[Facebook]]></category>
		<category><![CDATA[free-to-play]]></category>
		<category><![CDATA[holiday shopping]]></category>
		<category><![CDATA[Legend of Zelda]]></category>
		<category><![CDATA[Mario Kart 7]]></category>
		<category><![CDATA[Microsoft]]></category>
		<category><![CDATA[movies]]></category>
		<category><![CDATA[Nintendo]]></category>
		<category><![CDATA[PlayStation]]></category>
		<category><![CDATA[Reggie Fils-Aime]]></category>
		<category><![CDATA[social gaming]]></category>
		<category><![CDATA[Sony]]></category>
		<category><![CDATA[Super Mario 3D Land]]></category>
		<category><![CDATA[TV]]></category>
		<category><![CDATA[videogames]]></category>
		<category><![CDATA[Wii]]></category>
		<category><![CDATA[XBox]]></category>
		<category><![CDATA[Zynga]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=156088</guid>
		<description><![CDATA[Nintendo is seeing some of its biggest consumer demand this year in the weeks leading up to the holiday, resulting in record sales of its Wii, the 3DS and games, too.]]></description>
			<content:encoded><![CDATA[<p>Nintendo is seeing some of its biggest consumer demand this year in the weeks leading up to the holiday, resulting in record sales of its Wii, the 3DS and games, too.</p>
<p><img class="alignright size-medium wp-image-145855" title="Nintendo_mario Kart with Reggie" src="http://allthingsd.com/files/2011/11/Nintendo_mario-Kart-with-Reggie-380x238.png" alt="" width="380" height="238" />That&#8217;s in spite of Zynga, the rising star of social gaming, garnering much of the media&#8217;s attention last week, when it raised $1 billion in its initial public offering.</p>
<p>In November, Nintendo&#8217;s portable handheld, the 3DS, had its biggest single month of sales, representing an increase of more than 215 percent over the previous month; it has now sold nearly 2.5 million units since launch.</p>
<p>The Wii had its biggest Black Friday ever, with more than 520,000 units sold &#8212; six years into the console&#8217;s life.</p>
<p>The Japanese company also set a software record. Super Mario 3D Land, which was released Nov. 11, is now the fastest-selling portable Super Mario title in U.S. history, and Mario Kart 7 was the fastest-selling Mario Kart game.</p>
<p>In an interview with <strong>AllThingsD</strong> at the company&#8217;s U.S. headquarters in Redmond, Wash., Nintendo&#8217;s North America President Reggie Fils-Aime explained what&#8217;s driving strong holiday U.S. sales this year, and what&#8217;s on the horizon for the maker of games and hardware.</p>
<p>He also left the door wide open for Nintendo to experiment with new business models, including free-to-play or subscription, although he questioned the long-term prospects of social gaming companies, like Zynga.</p>
<p>Here&#8217;s an abbreviated version of our chat:</p>
<p><strong>AllThingsD: It seems videogame sales this holiday kicked off with a bang.</strong></p>
<p>Reggie Fils-Aime: We had a strong Black Friday for both our Wii and 3DS business.</p>
<p>The time frame from mid-November until the end of the year is critically important to us, and is driven by a number of software and hardware initiatives.</p>
<p>For the 3DS, we launched Super Mario 3D Land in November. It had the fastest sell-through for a handheld Super Mario game. That gave us a lot of momentum going into Black Friday, and right after Black Friday, we launched Mario Kart 7, which ended up being the fastest-selling Mario Kart, as well.</p>
<p>Together, that propelled our 3DS business. We&#8217;ve sold through more 3DS&#8217;s in eight months time than the original DS sold in the first 12 months. Our handheld business has a lot of momentum right now.</p>
<p><strong>But it took awhile to get there?</strong></p>
<p>What&#8217;s interesting is that we had a very good launch. The first week sales [of the 3DS] were fantastic. The initial rush of sales was really strong. But what happened after that in the spring and early summer time frame is &#8212; that&#8217;s when sales slowed down a little bit.</p>
<p>It was driven by not having great first-party software, and we were late in bringing some of the online functionality to the 3DS, and that&#8217;s when sales began to fall.</p>
<p>That&#8217;s when we took drastic action to reduce the price, right after the launch of The Legend of Zelda: Ocarina of Time 3D. Our bet was to regain momentum and make the holidays strong. We are having a strong holiday.</p>
<p><strong>A lot of retailers were concerned that we would see a Black Friday rush and then things would trail off after that. Is that what you are seeing?</strong></p>
<p>We haven&#8217;t seen that. We have seen things accelerate as we&#8217;ve gotten closer to Christmas Day itself. We are anticipating this week, across all of our businesses, will be the strongest sell-through week of the year.</p>
<p><strong>What about the Wii?</strong></p>
<p>The Wii had a strong Black Friday, too, driven by strong retailer promotions. This was our sixth Black Friday, and it was the best Black Friday week we&#8217;ve seen to date, so we&#8217;ve had very positive results.</p>
<p>It&#8217;s driven by software, and in this case, a new Legend of Zelda: Skyward Sword. It&#8217;s a game that&#8217;s been recognized by the gaming press to be one of the best games of the year.</p>
<p>The momentum continues for our Wii business, and sales are right on objective.</p>
<p><strong>How does it continue to break records six years in? That&#8217;s baffling.</strong></p>
<p>It&#8217;s because, even today, the Wii provides a family experience that you can&#8217;t get anywhere else. I love the stories I hear of grandparents playing with parents and with the grandkids.</p>
<p>Those are experiences that you can&#8217;t get elsewhere. That&#8217;s why we continue to break records. Plus, this holiday is the first holiday that it&#8217;s available for $149 or below. It&#8217;s reaching a whole new demographic that&#8217;s wanted to buy in, but couldn&#8217;t do it before.</p>
<p>And for consumers, there&#8217;s over 1,000 games that have been published, so the breadth of the gaming experience is extremely wide. The Wii continues to be the fastest-selling home console ever in the history of the gaming industry in the U.S.</p>
<p><strong>Does that change as we get closer to the next-generation console, the Wii U?</strong></p>
<p>The market is going to continue to differentiate based on the types of experiences that consumers want. As an example, if I&#8217;m the head of a household of a family of four, and my disposable income is $50,000 to $60,000, I&#8217;m going to continue to look at the Wii because of the software, and it&#8217;s a great entertainment device. For consumers who want to have the latest gadgets and have a higher disposable income, that&#8217;s for the Wii U.</p>
<p>We haven&#8217;t announced pricing or availability or any other details, but given the current pricing of the Wii, it&#8217;s not going to be there.</p>
<p>We&#8217;ve been very clear, the market is going to decide how long these products will coexist side by side. Our goal is to launch the Wii U and drive it into the marketplace, but it will speak to a different consumer than the one that is buying the Wii today during the holidays.</p>
<p><strong>What about the other consoles? Both Sony&#8217;s PlayStation and Microsoft&#8217;s Xbox are about the same age.</strong></p>
<p>All of the competitors haven&#8217;t talked about what&#8217;s next for them, and given the investments they&#8217;ve made in their technologies, for them to move to new systems &#8212; at least on the same timing we want to move at &#8212; would probably be pretty challenging. But in terms of what they are going to do, when they are going to do it, you&#8217;ll have to talk to them.</p>
<p><strong>What do you think of Microsoft&#8217;s move to make the Xbox the entertainment hub of the living room?</strong></p>
<p>In the end, the consumer decides what equipment to have in the living room. The interesting thing we&#8217;ve found &#8212; because of the family entertainment we provide, and the inclusion of Netflix &#8212; the vast majority of Wiis are set up on the main TV in the living room.</p>
<p><strong>Are you considering adding more content like live TV or movies?</strong></p>
<p>If the consumer wants live TV, they can get it through the options they have today. We always ask the question, &#8216;What can we do that&#8217;s new and provocative?&#8217; And we will continue to think of new and provocative experiences for the user.</p>
<p><strong>I&#8217;ve spent the past week covering Zynga&#8217;s IPO. What&#8217;s your perspective on social gaming?</strong></p>
<p>What&#8217;s the share price? It will be interesting when it breaks below $9 &#8230; I have a couple of thoughts on social gaming.</p>
<p>Consumers want to be entertained in a variety of ways, like watching TV or reading a book. The thing about entertainment &#8212; as consumers have a range of experiences &#8212; their desires for what&#8217;s new continues to be pushed out. So delivering the same experience all the time &#8230; consumers will move on.</p>
<p>So when I look at gaming experiences on social networks, there&#8217;s a variety of entertainment value. Some are strong, some are not. But in the end, how will they evolve? Doing the same thing over and over again is no longer fine.</p>
<p><strong>Is that really fair when you have Mario Kart 7 coming out?</strong></p>
<p>We continue to evolve the experience by providing a level of customization that&#8217;s new, or different ways to race with a sail and a propeller that allows you to drift under water. What we&#8217;ve done with Mario Kart 7, for some of the tracks, you can actually win when you go off the track, which never existed before. We&#8217;ve continued to make it more fun and add more enjoyment for the consumer.</p>
<p><strong>You don&#8217;t see that innovation happening in social gaming?</strong></p>
<p>The companies that will win in the social gaming space need to show an ability to provide the new and different experiences, and a way to monetize it. In the end, these are businesses that need to make money.</p>
<p><strong>Is that your comment on the free-to-play model? Will you experiment with free-to-play?</strong></p>
<p>I have two comments on that.</p>
<p>First, we make games for Nintendo devices, and that is a competitive advantage for us. You can only play Mario on a Nintendo device, so from that standpoint, I wouldn&#8217;t expect to see our franchises on other platforms, and I would argue Facebook is a platform.</p>
<p>My second point, on whether we will experiment with other forms of monetization?</p>
<p>Certainly.</p>
<p>How that comes about, or which ones we do first, that&#8217;s all experimentation that&#8217;s going on right now in our various studios.</p>
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		<title>OnLive Streams Xbox-Quality Games Like L.A. Noire to the iPad</title>
		<link>http://allthingsd.com/20111208/onlive-streams-xbox-quality-games-like-l-a-noire-to-the-ipad/</link>
		<comments>http://allthingsd.com/20111208/onlive-streams-xbox-quality-games-like-l-a-noire-to-the-ipad/#comments</comments>
		<pubDate>Thu, 08 Dec 2011 09:06:12 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[Mobile]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[Apple]]></category>
		<category><![CDATA[cloud]]></category>
		<category><![CDATA[console]]></category>
		<category><![CDATA[iPad]]></category>
		<category><![CDATA[L.A. Noire]]></category>
		<category><![CDATA[LEGO Batman: The Videogame]]></category>
		<category><![CDATA[OnLive]]></category>
		<category><![CDATA[Rockstar Games]]></category>
		<category><![CDATA[Steve Perlman]]></category>
		<category><![CDATA[streaming]]></category>
		<category><![CDATA[tablets]]></category>
		<category><![CDATA[videogames]]></category>
		<category><![CDATA[wireless controller]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=151771</guid>
		<description><![CDATA[OnLive, a Pandora-like service for videogames, has figured out a way to bring console-quality games to the iPad and Android tablets.]]></description>
			<content:encoded><![CDATA[<p><a href="http://www.onlive.com/games/featuredgames#&amp;tab=top_games">OnLive</a>, a Pandora-like service for videogames, has figured out a way to bring console-quality games to the iPad and Android tablets.</p>
<p><img class="aligncenter size-medium wp-image-151773" title="OnLive_streaming on tablets" src="http://allthingsd.com/files/2011/12/OnLive_streaming-on-tablets-380x129.png" alt="" width="380" height="129" /></p>
<p>That means that high-performance games, previously only able to run on top-notch hardware, will now be able to stream over the Internet to comparatively low-end mobile devices.</p>
<p>The Palo Alto, Calif.-based company has been selling its gaming service for a little more than a year. Up until now, consumers could stream games to their TV, or to a PC or Mac. The games can be purchased, rented for a few days or paid for via a monthly subscription. The mobile version will work the same way.</p>
<p>The apps will be available as soon as today in both the iTunes Store and the Android Market in the U.S. and the U.K. The app will also be coming to other devices, include the Kindle Fire.</p>
<p>OnLive founder and CEO Steve Perlman said an iPad would never have enough memory to play a 10 gigabyte game.</p>
<p>But OnLive&#8217;s service works because the game runs on the company&#8217;s server and then streams a compressed version to the device. The service is so efficient, in fact, that it will work not only on Wi-Fi but also on high-speed 4G wireless networks, like AT&amp;T&#8217;s or Verizon&#8217;s LTE. OnLive worked closely with AT&amp;T, which is one of its investors, to ensure its service would operate seamlessly.</p>
<p>At launch, the mobile app will have a catalog of about 25 games, including one of this year&#8217;s top sellers, Rockstar&#8217;s L.A. Noire, which is a 1940s Hollywood crime thriller.</p>
<p>Perlman said three categories of games will be available on mobile devices. The first category will be games like L.A. Noire that have been adapted to use the touchscreen. The second will be games that will use a virtual controller that appears on the tablet&#8217;s screen. And the third category will require an OnLive wireless controller, because the games require too many buttons to control. The controller will cost $50.</p>
<p>The number of games that have been fully adapted will be limited initially, but nearly all of OnLive&#8217;s 200 titles will be playable on a mobile device in some manner.</p>
<p>Because OnLive&#8217;s service is stored in the cloud, users will be able to pause a game on one platform, and then pick up on a mobile device where they left off.</p>
<p>One inconvenience of the iPad app is that all games will have to be bought on the PC, because of Apple&#8217;s policies on in-app purchases.</p>
<p>Perlman said it&#8217;s unclear what the demand will be for a mobile service like this, but that it has the potential to disrupt the way console games are traditionally sold.</p>
<p>&#8220;Before OnLive, games were a form of software and a type of application,&#8221; he said. &#8220;They were subject to piracy and hardware requirements, but now it&#8217;s music or movies. It doesn&#8217;t matter what the performance of the device is.&#8221;</p>
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		<title>Delays Force Microsoft to Roll Out Major Xbox Update in Phases</title>
		<link>http://allthingsd.com/20111206/delays-force-microsoft-to-roll-out-major-xbox-update-in-phases/</link>
		<comments>http://allthingsd.com/20111206/delays-force-microsoft-to-roll-out-major-xbox-update-in-phases/#comments</comments>
		<pubDate>Wed, 07 Dec 2011 01:08:01 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[Media]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[console]]></category>
		<category><![CDATA[content]]></category>
		<category><![CDATA[dashboard]]></category>
		<category><![CDATA[gaming]]></category>
		<category><![CDATA[Microsoft]]></category>
		<category><![CDATA[software update]]></category>
		<category><![CDATA[statement]]></category>
		<category><![CDATA[Voice Control]]></category>
		<category><![CDATA[XBox]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=151091</guid>
		<description><![CDATA[Microsoft's major software update for the Xbox continues to face delays. In a statement late this afternoon, Microsoft apologized and said that "within a few hours the first customers will begin to receive the update." It's unclear who will get the update because it is not based on geography. The new dashboard, which was supposed to launch this morning, will add both voice control and new content to the gaming console.]]></description>
			<content:encoded><![CDATA[<p>Microsoft&#8217;s major software update for the Xbox <a href="http://allthingsd.com/20111206/major-xbox-software-update-is-facing-slight-delay/">continues to face delays</a>. In a statement late this afternoon, Microsoft apologized and said that &#8220;within a few hours the first customers will begin to receive the update.&#8221; It&#8217;s unclear who will get the update because it is not based on geography. The new dashboard, which was supposed to launch this morning, will add both voice control and new content to the gaming console.</p>
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		<title>Here's How Microsoft Is Adding Voice Control and Gestures to the Xbox (Video)</title>
		<link>http://allthingsd.com/20111204/heres-how-microsoft-is-adding-voice-control-and-gestures-to-the-xbox-video/</link>
		<comments>http://allthingsd.com/20111204/heres-how-microsoft-is-adding-voice-control-and-gestures-to-the-xbox-video/#comments</comments>
		<pubDate>Mon, 05 Dec 2011 05:00:29 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
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		<category><![CDATA[Bing]]></category>
		<category><![CDATA[camera]]></category>
		<category><![CDATA[Comcast]]></category>
		<category><![CDATA[console]]></category>
		<category><![CDATA[controller]]></category>
		<category><![CDATA[entertainment]]></category>
		<category><![CDATA[ESPN]]></category>
		<category><![CDATA[FIOS]]></category>
		<category><![CDATA[games]]></category>
		<category><![CDATA[gestures]]></category>
		<category><![CDATA[Kinect]]></category>
		<category><![CDATA[Michael Suraci]]></category>
		<category><![CDATA[microphone]]></category>
		<category><![CDATA[Microsoft]]></category>
		<category><![CDATA[music]]></category>
		<category><![CDATA[navigation]]></category>
		<category><![CDATA[Netflix]]></category>
		<category><![CDATA[search]]></category>
		<category><![CDATA[TMZ]]></category>
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		<category><![CDATA[user interface]]></category>
		<category><![CDATA[Verizon Communications]]></category>
		<category><![CDATA[video]]></category>
		<category><![CDATA[videogames]]></category>
		<category><![CDATA[Voice Control]]></category>
		<category><![CDATA[voice recognition]]></category>
		<category><![CDATA[Vudu]]></category>
		<category><![CDATA[Wal-Mart]]></category>
		<category><![CDATA[Windows 8]]></category>
		<category><![CDATA[Windows Phone]]></category>
		<category><![CDATA[XBox]]></category>
		<category><![CDATA[Xbox Live]]></category>
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		<category><![CDATA[Zune]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=150015</guid>
		<description><![CDATA[Michael Suraci, Xbox's director of marketing, demonstrates the new features, which will roll out in a massive free software update, available Tuesday.]]></description>
			<content:encoded><![CDATA[<p>Microsoft is planning a massive software update on Tuesday for the Xbox, beginning the game console&#8217;s transformation into an entertainment hub for the whole family.</p>
<p><img class="alignright size-medium wp-image-72452" title="XBox Box" src="http://allthingsd.com/files/2011/05/xbox-box-275x206.jpg" alt="" width="275" height="206" /></p>
<p>The free update will allow users to control the console using their voice and gestures, or even their Windows Phone (if they have one).</p>
<p>In addition, Microsoft will begin to add more than 40 content providers to the console to increase the catalog of live and streamed TV, movies and music.</p>
<p>Microsoft has announced nearly all of these details previously, including some of its content partners, so today&#8217;s announcement serves as a reminder now that the final product is ready to go.</p>
<p>Last week, I met up with Michael Suraci, Xbox&#8217;s director of marketing, to get a preview of the updates.</p>
<p>According to Suraci, Kinect, the motion sensor that launched last year, is a central part of the update. When it was introduced, it seemed that all it was good for was dance games, but clearly Microsoft had much bigger plans for the camera and the microphone.</p>
<p>Now users can speak naturally to the Xbox, which tears down a number of barriers to family members in the household that weren&#8217;t comfortable with the clunky controller. If Microsoft pulls it off, it could teach people that televisions are meant to be talked to, just as Apple has taught people that screens are meant to be touched.</p>
<p>An unknown subset of the nearly 60 million Xbox owners worldwide that have purchased Kinect will be able to use all the new features in the update.</p>
<p>But everyone will have access to many of the updates.</p>
<p>One major improvement is in navigation. For example, the old interface required the user to decide which category they wanted to go into. For example, games, video or music. Then, they had to choose the application, like Netflix, ESPN or Zune.</p>
<p><img class="aligncenter size-medium wp-image-150018" title="xbox_pre-update_video marketplace" src="http://allthingsd.com/files/2011/12/xbox_pre-update_video-marketplace-380x214.png" alt="" width="380" height="214" /></p>
<p>In the new user interface, the person can search across all of the categories and apps.</p>
<p><img class="aligncenter size-medium wp-image-150017" title="xbox_update_Screenshot Bing Search 2" src="http://allthingsd.com/files/2011/12/xbox_update_Screenshot-Bing-Search-2-380x213.png" alt="" width="380" height="213" /></p>
<p>As Suraci demonstrates in the video, a user can say: &#8220;Xbox: Bing, &#8216;Fast and the Furious.&#8217;&#8221;</p>
<p>The results show all of the content that matches that criteria across games, music, video and other categories. The style of the user interface will be recognizable to anyone using a Windows Phone. The format will also be carried over to the upcoming Windows 8 update.</p>
<p>During Suraci&#8217;s demonstration, the software got confused a couple of times, but still, searching by voice will be much faster than typing in a string of words, letter-by-letter, using the controller to scroll through the alphabet.</p>
<p>Going forward, the Xbox could replace the need for a second set-top box in the household, but as Peter Kafka has mentioned before, <a href="http://allthingsd.com/20111004/microsoft-puts-more-tv-in-your-xbox-as-long-as-you-keep-paying-for-cable/">it&#8217;s not a service for customers looking to cut the cord</a>. In order to stream live TV, or watch movies, you&#8217;ll either have to pay for a subscription &#8212; like Verizon FiOS or Comcast&#8217;s Xfinity &#8212; or pay a la carte.</p>
<p>On Tuesday&#8217;s launch, the amount of content that will be available in the U.S. will be somewhat disappointing. But later in December and in early 2012, you will start to see integrations with Verizon FiOS, YouTube, HBO GO and Xfinity On Demand, TMZ, UFC, Wal-Mart&#8217;s Vudu service and others.</p>
<p><div class="video-wsj"><object width="640" height="360"><param name="movie" value="http://s.wsj.net/media/swf/microPlayer.swf"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><param name="flashvars" value="videoGUID=F7A84E50-FB5F-4D3A-A9A0-EB1D8AA3D4BD&playerid=4001&plyMediaEnabled=1&configURL=http://m.wsj.net/video-players/&autoStart=false" base="http://s.wsj.net/media/swf/"name="microflashPlayer"></param><embed src="http://s.wsj.net/media/swf/microPlayer.swf" bgcolor="#FFFFFF" flashVars="videoGUID={F7A84E50-FB5F-4D3A-A9A0-EB1D8AA3D4BD}&playerid=4001&plyMediaEnabled=1&configURL=http://m.wsj.net/video-players/&autoStart=false" base="http://s.wsj.net/media/swf/" name="microflashPlayer" width="640" height="360" seamlesstabbing="false" type="application/x-shockwave-flash" swLiveConnect="true" pluginspage="http://www.macromedia.com/shockwave/download/index.cgi?P1_Prod_Version=ShockwaveFlash"></embed><br />[ See post to watch video ]</div></object></p>
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		<title>Nintendo Records Lifetime DS Sales of 50 Million in the U.S.</title>
		<link>http://allthingsd.com/20111013/nintendo-records-lifetime-ds-sales-of-50-million-in-the-u-s/</link>
		<comments>http://allthingsd.com/20111013/nintendo-records-lifetime-ds-sales-of-50-million-in-the-u-s/#comments</comments>
		<pubDate>Fri, 14 Oct 2011 00:20:27 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[Mobile]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[Apple]]></category>
		<category><![CDATA[console]]></category>
		<category><![CDATA[Electronic Arts]]></category>
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		<category><![CDATA[iOS]]></category>
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		<category><![CDATA[iPhone]]></category>
		<category><![CDATA[iPod touch]]></category>
		<category><![CDATA[Madden NFL]]></category>
		<category><![CDATA[Nintendo]]></category>
		<category><![CDATA[Nintendo DS]]></category>
		<category><![CDATA[portable gaming]]></category>
		<category><![CDATA[videogames]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=132199</guid>
		<description><![CDATA[Nintendo's latest sales update reveals that it has sold 50 million portable gaming systems over the lifetime of the system in the U.S. But is it enough?]]></description>
			<content:encoded><![CDATA[<p>Nintendo&#8217;s latest sales update reveals that it has sold 50 million portable gaming systems in the U.S. over the lifetime of the system.</p>
<p><img class="alignright size-medium wp-image-72429" title="Nintendo 3DS" src="http://allthingsd.com/files/2011/03/PJ-AZ898_dsolJ1_G_20110315195941-275x183.jpg" alt="" width="275" height="183" />That figure confirms that Nintendo is definitely one of this country&#8217;s leading portable gaming manufacturers, but for comparison&#8217;s sake, we dug up numbers for the iPod touch, which is likely Apple&#8217;s most comparable device, rather than the always-connected iPhone or its larger and more expensive cousin, the iPad.</p>
<p>In a lawsuit, <a href="http://thisismynext.com/2011/04/19/apple-sues-samsung-analysis/">Apple revealed</a> that as of March 2011 it had sold more than 60 million iPod touch devices worldwide since late 2007.</p>
<p>While those aren&#8217;t entirely comparable numbers &#8212; one is worldwide and the other is only in the U.S. &#8212; many are saying that Apple&#8217;s products are starting to eat into Nintendo&#8217;s traditional base of players. With these figures being so close, and <a href="http://allthingsd.com/20111004/commas-zeros-and-no-1-apples-iphone-4s-event-by-the-numbers/">Apple claiming</a> that the iPod touch is the No. 1 portable game player, you can start to see why.</p>
<p>Last month, Nintendo sold more than 260,000 Nintendo 3DS units in the U.S., an increase of more than 10 percent from the previous month, following a much-needed price drop on Aug. 12.</p>
<p>The numbers were part of the NPD Group&#8217;s monthly figures, which state the overall health of the videogame industry. Generally, September is a sleepy month, as consumers hold off on making any big purchases and manufacturers delay big launches until the holidays.</p>
<p>The NPD Group said spending on hardware and software in September totaled $1.16 billion, falling 6 percent from the same period a year earlier, when consumers spent $1.23 billion. The sales only represent physical retail sales and do not include digital sales, which are fast becoming a big chunk of the industry.</p>
<p>During the month, software sales were helped out by the newly released Madden NFL by Electronic Arts, which was the top selling-game during the month.</p>
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		<title>Idle Games Raises $10 Million to Support Higher Quality Social Games</title>
		<link>http://allthingsd.com/20111013/idle-games-raises-10-million-to-support-higher-quality-social-games/</link>
		<comments>http://allthingsd.com/20111013/idle-games-raises-10-million-to-support-higher-quality-social-games/#comments</comments>
		<pubDate>Thu, 13 Oct 2011 17:46:48 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[Social]]></category>
		<category><![CDATA[CastleVille]]></category>
		<category><![CDATA[console]]></category>
		<category><![CDATA[Idle Games]]></category>
		<category><![CDATA[Idle Worship]]></category>
		<category><![CDATA[Jeff Hyman]]></category>
		<category><![CDATA[Playdom]]></category>
		<category><![CDATA[Rick Thompson]]></category>
		<category><![CDATA[social games]]></category>
		<category><![CDATA[videogames]]></category>
		<category><![CDATA[Zynga]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=131975</guid>
		<description><![CDATA[Idle Games has spent two years developing its first Facebook game in the belief that social games will require console-quality production. Of course, higher quality means more capital, too.]]></description>
			<content:encoded><![CDATA[<p><a href="http://www.idle-games.com/">Idle Games</a> has spent the past two years developing its first Facebook game as part of the belief that social games will require the same high production standards more commonly found on today&#8217;s consoles.</p>
<p><img class="alignright size-medium wp-image-131986" title="idleworship" src="http://allthingsd.com/files/2011/10/idleworship-326x285.png" alt="" width="326" height="285" />Of course, higher quality means bigger budgets.</p>
<p>To that end, the San Francisco company is announcing today that it has raised $10 million in a second round of capital.</p>
<p>The investment comes from Idle co-founder Rick Thompson, the former chairman and co-founder of Playdom, the social games company Disney acquired last year. Thompson previously led Idle&#8217;s initial round of $9 million.</p>
<p><a href="http://allthingsd.com/20111010/ex-playdom-exec-rick-thompson-calls-for-higher-quality-social-games/">In a recent interview with Thompson</a>, he told me, “I think developers are having to retire old practices and will have to provide experiences that people do enjoy. What I am saying is that the bar is being raised and the established players are having a harder time reacting to the environment, and it’s hard to let go of that. The innovation is coming from emerging players.”</p>
<p>But even the established companies are starting to see that players on Facebook are becoming more discerning.</p>
<p>Zynga <a href="http://allthingsd.com/20111011/live-at-zyngas-unleashed-event/">announced on Tuesday</a> that its upcoming release on Facebook, called CastleVille, will be one of the first social games to have music recorded from an orchestra, which is more typical of console productions.</p>
<p>Today, San Francisco Mayor Edwin Lee is scheduled to visit Idle Games&#8217; new 36,000-square-foot offices as part of a campaign to increase the number of tech jobs in the city.</p>
<p>Jeff Hyman, Idle Games&#8217; CEO and co-founder, said in a release, &#8220;We believe that Facebook games will only thrive by delivering the highest quality entertainment experience to users. That’s why we’re taking a new approach to Facebook game design with an emphasis on delivering a truly social experience, while raising the bar for creativity, quality and innovation.&#8221;</p>
<p>The company&#8217;s first game, Idle Worship, will launch soon. In the game, you are a god vying for the worship of friends, strangers and the indigenous population of Mudlings. The game will allow players to play synchronously, meaning that you&#8217;ll be playing together with friends in real time.</p>
<p>For a peek at what they consider quality, watch this trailer:</p>
<p><iframe src="http://player.vimeo.com/video/28792310?byline=0&amp;autoplay=1" frameborder="0" width="640" height="360"></iframe></p>
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		<title>Netflix Officially Launches in Latin America</title>
		<link>http://allthingsd.com/20110905/netflix-officially-launches-in-latin-america/</link>
		<comments>http://allthingsd.com/20110905/netflix-officially-launches-in-latin-america/#comments</comments>
		<pubDate>Mon, 05 Sep 2011 21:35:33 +0000</pubDate>
		<dc:creator>Kara Swisher</dc:creator>
				<category><![CDATA[Media]]></category>
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		<guid isPermaLink="false">http://allthingsd.com/?p=116929</guid>
		<description><![CDATA[As has been expected, Netflix has officially launched its online video streaming service in Latin America. In a blog post today, the company said: "By September 12, people throughout the Americas will be able to instantly watch a broad selection of movies and TV shows streaming from Netflix on computers, game consoles like the WII and PS3, and Smart TVs."]]></description>
			<content:encoded><![CDATA[<p>As has been expected, Netflix has officially launched its online video streaming service in Latin America. In a blog post today, the company said: &#8220;By September 12, people throughout the Americas will be able to instantly watch a broad selection of movies and TV shows streaming from Netflix on computers, game consoles like the WII and PS3, and Smart TVs.&#8221;</p>
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		<title>Study Says Five Percent of Mobile Gamers Are Willing to Spend More Than $50</title>
		<link>http://allthingsd.com/20110725/study-says-five-percent-of-mobile-gamers-are-willing-to-spend-more-than-50/</link>
		<comments>http://allthingsd.com/20110725/study-says-five-percent-of-mobile-gamers-are-willing-to-spend-more-than-50/#comments</comments>
		<pubDate>Mon, 25 Jul 2011 21:26:08 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[Android]]></category>
		<category><![CDATA[Apple]]></category>
		<category><![CDATA[console]]></category>
		<category><![CDATA[Flurry]]></category>
		<category><![CDATA[free-to-play]]></category>
		<category><![CDATA[freemium]]></category>
		<category><![CDATA[games]]></category>
		<category><![CDATA[gaming]]></category>
		<category><![CDATA[Jeferson Valadares]]></category>
		<category><![CDATA[Mobile]]></category>
		<category><![CDATA[mobile games]]></category>
		<category><![CDATA[PC games]]></category>
		<category><![CDATA[smartphones]]></category>
		<category><![CDATA[whales]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=102328</guid>
		<description><![CDATA[Here's a fairly compelling argument as to why a developer should continue to give away games for free: if given the option, some consumers are willing to pay much, much more.]]></description>
			<content:encoded><![CDATA[<p>The majority of players will never pay for anything inside a free mobile game.</p>
<p>That&#8217;s a fact.</p>
<p><img class="alignright size-medium wp-image-102386" title="Flurry_F2P_Transactions_v_Revenue_byPriceTier_v2-resized-600" src="http://allthingsd.com/files/2011/07/Flurry_F2P_Transactions_v_Revenue_byPriceTier_v2-resized-600-380x266.png" alt="" width="380" height="266" />But a new study conducted by Flurry, an analytics provider for mobile games on Apple and Android devices, provides a fairly compelling argument as to why a developer should continue to give away his or her games for free.</p>
<p>Ultimately, it&#8217;s because consumers are willing to pay much, much more &#8212; if given the option.</p>
<p>After evaluating the spending habits of 3.5 million consumers across both iOS and Android, Flurry found that among those who pay for in-app transactions, greater than five percent will spend more than $50, which rivals the amount paid at retail for top console and PC games. </p>
<p>What&#8217;s more, consumers are spending $14 per transaction on average, which easily exceeds the price tag of most premium games being sold on smartphones today.</p>
<p>Since $14 sounds high, Flurry&#8217;s GM of Games Jeferson Valadares explains the logic behind it <a href="http://blog.flurry.com/bid/67748/Consumers-Spend-Average-of-14-per-Transaction-in-iOS-and-Android-Freemium-Games">in a blog post</a> today. The findings are also a continuation of a report issued earlier this month that generically found <a href="http://allthingsd.com/20110707/mobile-games-generate-more-revenue-if-given-away-for-free/">that mobile games generate more revenue if given away for free</a>.</p>
<p>Valadares explains that only three percent of consumers are likely to spend money at all, but that at the high end, there are some very big spenders who are bringing up the average and generate a bulk of the revenue. Additionally, the number of consumers who pay very little remains fairly low. In fact, consumers spend only 99 cents less than two percent of the time.</p>
<p>&#8220;Why then would so few consumers spend just $1 in freemium games when this price point is so popular among premium games?&#8221; Valadares writes. &#8220;Because freemium games drive a different decision-making mindset for consumers. They simply are deciding whether or not to spend.&#8221;</p>
<p>The study found that 71 percent of all transactions are for amounts under $10; 15 percent are for spends between $10 and $20; and 13 percent are for amounts greater than $20.</p>
<p>The higher-end buyers are considered the &#8220;whales&#8221; of the industry.</p>
<p>Flurry&#8217;s advice to game developers is to focus on the whales: &#8220;If you’re a game designer, your main take away is that very few transactions &#8212; and consumers who complete those transactions &#8212; make up the bulk of your revenue. Therefore, your &#8216;meta-game&#8217; should be about whale hunting.&#8221;</p>
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		<title>Nintendo's Iwata Hopes the Wii U Will Steal Back Couch Time From the iPad (Part 1)</title>
		<link>http://allthingsd.com/20110614/part-i-nintendos-iwata-hopes-the-wii-u-will-steal-back-couch-time-from-the-ipad/</link>
		<comments>http://allthingsd.com/20110614/part-i-nintendos-iwata-hopes-the-wii-u-will-steal-back-couch-time-from-the-ipad/#comments</comments>
		<pubDate>Tue, 14 Jun 2011 13:00:48 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[Mobile]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[console]]></category>
		<category><![CDATA[E3]]></category>
		<category><![CDATA[games]]></category>
		<category><![CDATA[gaming]]></category>
		<category><![CDATA[iPad]]></category>
		<category><![CDATA[laptops]]></category>
		<category><![CDATA[Nintendo]]></category>
		<category><![CDATA[Satoru Iwata]]></category>
		<category><![CDATA[smartphones]]></category>
		<category><![CDATA[tablet]]></category>
		<category><![CDATA[videogames]]></category>
		<category><![CDATA[Wii]]></category>
		<category><![CDATA[Wii U]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=86367</guid>
		<description><![CDATA[In an interview with Nintendo's Global President Satoru Iwata from E3, he discusses the successor to the original Wii, called the Wii U, and how he expects it to compete against laptops, tablets and phones being used increasingly in a consumer's spare time today.]]></description>
			<content:encoded><![CDATA[<p>Nintendo&#8217;s next console is not just about playing games, but will act as another screen in the living room that will compete against laptops, tablets and phones for a consumer&#8217;s spare time spent on the couch.</p>
<p><a rel="attachment wp-att-86369" href="http://allthingsd.com/20110614/part-i-nintendos-iwata-hopes-the-wii-u-will-steal-back-couch-time-from-the-ipad/nintendo_satoru-iwata/"><img class="alignright size-full wp-image-86369" title="Nintendo_Satoru Iwata" src="http://allthingsd.com/files/2011/06/Nintendo_Satoru-Iwata.jpg" alt="" width="352" height="174" /></a>Here&#8217;s the first part of my interview with Nintendo&#8217;s Global President Satoru Iwata from E3, where he discusses &#8212; through an interpreter &#8212;  the successor to the original Wii, called the Wii U.</p>
<p>He not only tells me that the devices have higher-end components, capable of displaying hardcore games, but that the controller&#8217;s 6.2-inch display will attract a very wide audience of people looking for a casual way to connect to the Internet.</p>
<p>Stay tuned for the second part of the interview, where Iwata explains why Nintendo will continue charging for its games and not get caught up in the the frenzy to release free-to-play games. (<strong>Update</strong>: <a href="http://allthingsd.com/20110615/nintendos-iwata-asks-can-free-games-be-sustained-over-the-long-term/">Here is a link to the rest of the interview</a>.)</p>
<p><strong>Let’s get started by talking about the Wii U. What does it accomplish for the company?</strong></p>
<p><strong></strong>We consider the Wii U the next step for the Wii … By that I mean, the mission  this time is that we would like to transform the relationships between the family, the video game and the Internet into a new shape. Many things can be changed with the introduction of the Wii U into the household, especially how video games want to be played, how people are going to watch TV, and how the relationship with the Internet and family members will be changed.</p>
<p><strong><a rel="attachment wp-att-83973" href="http://allthingsd.com/20110607/three-key-takeaways-from-nintendos-wii-u-plus-photos/e3_nintendo_wiiu_hd-view/"><img class="alignleft size-medium wp-image-83973" title="The Wii U's touchscreen also has high-definition graphics." src="http://allthingsd.com/files/2011/06/E3_Nintendo_WiiU_HD-view-380x213.jpg" alt="" width="380" height="213" /></a>The Wii U represents a big shift from casual and family-friendly gaming that Nintendo is known for to hardcore gaming and first-person shooters.</strong></p>
<p><strong></strong>In the case of the original Wii, our intent was to extend the gaming population, but of course we needed to think about how we were going to motivate non-gamers to play with video games, so we came up with Wii Sports and Wii Fit, as well as how the Wii system was designed.</p>
<p>For example, in the case of our products, approximately 50 percent of our users are a female audience, the other platforms are around 30 percent.</p>
<p>So, the Wii has already achieved very impressive things, but there were two things we were not able to realize: We could not keep up with the hardcore gamers and the Wii original was not compatible with HDTVs.</p>
<p>This time around, Wii U is compatible with HDTV, so we now expect the Wii console to be as powerful as any other console and all the necessary buttons are there [Iwata holds the new controller and demonstrates its use].</p>
<p>When we approached the third-party publishers to tell them about the Wii U, all the publishers volunteered to make advancements in the field of shooting games that they are very good at. For example, ordinarily when you are playing a shooter type of game, your main TV screen is the battlefield; however, oftentimes you have to open a new window to select items or weapons or to see the entire map.</p>
<p>But you don’t have to do that anymore with Wii U because you’ll have a screen that will show you that information.</p>
<p>But this is just one of the roles. It will also have another mission, as well. By having another screen, we believe it will pave a new way in the opposite direction to attract the non-gamers today. It’s no denying that we’ve expanded the so-called gaming population, but there’s still a number of people that have yet to be interested in the Wii at all, even after we introduced them to such applications as Wii Sports and Wii Fit.</p>
<p>Even those people, we want them to utilize Wii U one way or another.</p>
<p>For example, there&#8217;s video chat or they may want to do Web browsing while watching the screen on the big TV and managing operations with the screen in your  hands.</p>
<p>For the past decade or so, many attempts have been made to link the TV and the Internet, but so far, nothing has been popular. So, the PC is still the strongest device to take advantage of the Internet, and now increasingly smartphones and tablets.</p>
<p>The ordinary TV sets in the household are located 10 feet away from yourself, and so it’s not the optimal solution to see the small letters of the Internet. You may also have problems with inputing and browsing.</p>
<p>On the other hand, when you look at this controller, it’s one foot away from your eyes &#8212; it has almost the same distance of the PC and other smartphones. In other words, this device is capable of handling such activities for you to input the letters in the palm of your hands.</p>
<p>In the future, if the TV and Internet can be used together, the TV will have a remote with a screen &#8212; and it will look very similar to how the Wii U controller is today.</p>
<p><strong>So, the Wii U is the TV remote of the future?</strong></p>
<p>Yes.</p>
<p>While on one hand we are trying to reach out to the hardcore gamers, we are also trying to make something that can be used as the TV remote of the future. The point is we are trying to reach out to both directions at the same time with the Wii U.</p>
<p><strong>So, do you see the audience continuing to be 50 percent women?</strong></p>
<p><strong></strong>A number of the videogame genres will be for male audiences, and the male audiences will increase, but on the other hand, this device is capable of many other things. On this device you can see video streams of Netflix, or you can use in conjunction with the TV. Regardless of the gender, you may want to use it &#8230; Our hope is it will be equal number of males and females who will be interested in this device.</p>
<p><strong><a rel="attachment wp-att-83974" href="http://allthingsd.com/20110607/three-key-takeaways-from-nintendos-wii-u-plus-photos/e3_nintendo_wiiu_web-browsing/"><img class="alignright size-medium wp-image-83974" title="The Nintendo Wii U will compete for time from other devices in the living room with capabilities like Web browsing." src="http://allthingsd.com/files/2011/06/E3_Nintendo_WiiU_web-browsing-380x285.jpg" alt="" width="380" height="285" /></a>After you announced the Wii U, <a href="http://allthingsd.com/20110607/three-key-takeaways-from-nintendos-wii-u-plus-photos/">I wrote that you are competing for time spent on the living room couch</a> &#8212; whether someone is using their laptop, or using a tablet to Skype, or playing a game on the phone. Is this a response to trying to take couch time back?</strong></p>
<p>I think it’s an accurate and acute insight into the situation.</p>
<p>Our mission is to try to shorten the distance between people and gaming, and in order to do so we tried to remove any possible barriers. If you like to play console games, you have to do so on the TV and you have to change the TV&#8217;s input and other things. We wanted to remove even these barriers. One of the ways to take advantage of that is to get access to some game-related information [on the Wii U's tablet]. It’s competition for couch time.</p>
<p>Once again, even though, we used a system that caters to the needs of the most skillful players, we are also trying to reach out to the people who are not interested in video games.</p>
<p>I think that  we have been able to reduce a number of issues with this.</p>
<p><strong>Because the Wii U can always be on?</strong></p>
<p>Yes.</p>
<p><em>Photo Credit: <a href="http://e3.nintendo.com/iwataasks/">Nintendo</a>.</em></p>
<p><h4 class="subhed">More From E3</h4>
<ul>
<li><a href="http://allthingsd.com/20110606/live-at-e3-xbox-wants-to-more-than-just-gaming/">At E3, Xbox Lets Kinect Lead the Charge on Gaming, Live TV Ambitions</a></li>
<li><a href="http://allthingsd.com/20110606/justin-tv-broadcasts-gamers-every-move-on-twitchtv/">Justin.tv Broadcasts Gamers’ Every Move on TwitchTV</a></li>
<li><a href="http://allthingsd.com/20110606/who-needs-war-sparks-will-fly-in-eas-new-sims-game-for-facebook/">Who Needs War? Sparks Will Fly in EA’s New Sims Game for Facebook.</a></li>
<li><a href="http://allthingsd.com/20110606/live-at-e3-sony-playstation-on-stage/">Sony Unveils Vita Gaming Device at E3; Will Launch This Year for $249</a></li>
<li><a href="http://allthingsd.com/20110607/live-at-e3-nintendo-to-unveil-the-successor-to-the-wii/">E3: Nintendo Unveils the Wii U With Tablet-Style Controller</a></li>
<li><a href="http://allthingsd.com/20110607/three-key-takeaways-from-nintendos-wii-u-plus-photos/">Three Key Takeaways From Nintendo’s Wii U (Plus Photos!)</a></li>
<li><a href="http://allthingsd.com/20110607/no-hacks-to-report-at-xbox-but-microsoft-isnt-letting-its-guard-down/">No Hacks to Report at Xbox, But Microsoft Isn’t Letting Its Guard Down</a></li>
<li><a href="http://allthingsd.com/20110608/forget-about-99-cents-what-if-you-could-rent-mobile-games-for-25-cents/">Forget About 99 Cents, What If You Could Rent Mobile Games for 25 Cents?</a></li>
<li><a href="http://allthingsd.com/20110608/digital-game-revenues-hit-5-9-billion-in-2010/">Digital Game Revenues Hit $5.9 Billion in 2010</a></li>
</ul>
</p>
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		<title>Surprise! Facebook Credits and Apple's iTunes Play Nice With Each Other.</title>
		<link>http://allthingsd.com/20110606/surprise-facebook-credits-and-apples-itunes-play-nice-with-each-other/</link>
		<comments>http://allthingsd.com/20110606/surprise-facebook-credits-and-apples-itunes-play-nice-with-each-other/#comments</comments>
		<pubDate>Mon, 06 Jun 2011 15:12:53 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[Mobile]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[Apple]]></category>
		<category><![CDATA[Chris Early]]></category>
		<category><![CDATA[console]]></category>
		<category><![CDATA[credits]]></category>
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		<category><![CDATA[Facebook]]></category>
		<category><![CDATA[iTunes]]></category>
		<category><![CDATA[micropayments]]></category>
		<category><![CDATA[Nintendo]]></category>
		<category><![CDATA[PlayStation]]></category>
		<category><![CDATA[Tom Clancy's Ghost Recon]]></category>
		<category><![CDATA[Ubisoft]]></category>
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		<category><![CDATA[virtual goods]]></category>
		<category><![CDATA[XBox]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=82868</guid>
		<description><![CDATA[Facebook has Credits, Apple has iTunes, and then there's the plethora of points and coins found on the major consoles and online services. Here's how a common currency is beginning to take shape, which will benefit both the consumer and the game maker.]]></description>
			<content:encoded><![CDATA[<p>Facebook has Credits, Apple has iTunes, and then there&#8217;s the plethora of points and coins found on the major consoles and online services.</p>
<p><a rel="attachment wp-att-82872" href="http://allthingsd.com/20110606/surprise-facebook-credits-and-apples-itunes-play-nice-with-each-other/ubisoft_ghost-recon/"><img class="alignright size-medium wp-image-82872" title="ubisoft_ghost recon" src="http://allthingsd.com/files/2011/06/ubisoft_ghost-recon-285x285.jpg" alt="" width="285" height="285" /></a>For game players, it&#8217;s the equivalent of traveling in Europe before the Euro.</p>
<p>Even if you are playing the same game by the same company, players must buy a different set of currencies when moving between Facebook, iTunes and the consoles. The hurdle is significant given that the free-to-play model is considered a good chunk of the industry&#8217;s future.</p>
<p>But there are signs that a pact is forming, even if it&#8217;s at a very unofficial level.</p>
<p>Chris Early, Ubisoft&#8217;s VP of Digital Publishing, told me <a href="http://allthingsd.com/20110605/a-hint-at-whats-to-come-at-this-weeks-e3/">the night before E3 kicks off</a> that both Facebook and Apple have agreed to honor currency purchased on each other&#8217;s platforms for the same game. The one condition is that it costs the same for the consumer on every platform.</p>
<p>Early said we&#8217;ll likely see this first for Tom Clancy&#8217;s Ghost Recon, which he tells me is being released over the next years on multiple platforms, including Facebook, mobile, console and the Internet.</p>
<p>The new pact means that if a customer purchased $20 worth of Ghost Recon Credits on Facebook, Facebook would still earn its 30 percent cut of the revenue, but players would be able to access the points in the Ghost Recon game on Apple devices. The reverse is true as well. Ghost Recon does not yet support micropayments on the console, so it would not use credits purchased elsewhere.</p>
<p>Early said Ubisoft will be responsible for managing a player&#8217;s current balance across all the platforms.</p>
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		<title>GameStop Breaks Out of the Box by Increasing Digital Revenues 53 Percent in the First Quarter</title>
		<link>http://allthingsd.com/20110519/gamestop-breaks-out-of-the-box-by-increasing-digital-revenues-53-percent-in-the-first-quarter/</link>
		<comments>http://allthingsd.com/20110519/gamestop-breaks-out-of-the-box-by-increasing-digital-revenues-53-percent-in-the-first-quarter/#comments</comments>
		<pubDate>Fri, 20 May 2011 02:27:16 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[advertising]]></category>
		<category><![CDATA[console]]></category>
		<category><![CDATA[digital]]></category>
		<category><![CDATA[DLC]]></category>
		<category><![CDATA[downloadable content]]></category>
		<category><![CDATA[e-commerce]]></category>
		<category><![CDATA[earnings]]></category>
		<category><![CDATA[games]]></category>
		<category><![CDATA[GameStop]]></category>
		<category><![CDATA[gaming]]></category>
		<category><![CDATA[Microsoft]]></category>
		<category><![CDATA[mobile]]></category>
		<category><![CDATA[Nintendo]]></category>
		<category><![CDATA[Paul Raines]]></category>
		<category><![CDATA[PC]]></category>
		<category><![CDATA[PlayStation]]></category>
		<category><![CDATA[retail]]></category>
		<category><![CDATA[social]]></category>
		<category><![CDATA[social gaming]]></category>
		<category><![CDATA[Sony]]></category>
		<category><![CDATA[Tony Bartel]]></category>
		<category><![CDATA[Wii]]></category>
		<category><![CDATA[XBox]]></category>

		<guid isPermaLink="false">http://emoney.allthingsd.com/?p=5586</guid>
		<description><![CDATA[It's not only the game publishers and console-makers that are seeing a transition to digital. It's also the retailers.]]></description>
			<content:encoded><![CDATA[<p>It&#8217;s not only the game publishers and console makers that are seeing a transition to digital. It&#8217;s also the retailers.</p>
<p><img class="alignright size-medium wp-image-5587" title="gamestop_store" src="http://emoney.allthingsd.com/files/2011/05/gamestop_store-275x217.jpg" alt="" width="275" height="217" /></p>
<p>GameStop, which has more than 6,000 physical locations, said today its digital revenues jumped 53 percent in the first quarter, compared to the year-ago period. Additionally, it&#8217;s on track to hit $450 million in digital revenues this year and $1.5 billion by 2014.</p>
<p>In an interview, GameStop&#8217;s President Tony Bartel and CEO Paul Raines explained that they see three sources of digital revenues: mobile; downloadable content to the console; and PC, which includes downloads and point cards for social games, as well as advertising.</p>
<p>To aid in its expansion to digital, GameStop has made a handful of recent acquisitions, of which two have yet to be completed. The acquisition of Spawn Labs will allow it to provide a cloud-based streaming game service&#8211;similar to OnLive&#8211;and Impulse will allow it to compete with Steam, a streaming service on the PC side.</p>
<p>Bartel said all three areas of digital are growing, but perhaps the fastest is downloadable content for the console, which they are projecting will become a $6.3 billion business in 2014.</p>
<p>He said all of the major game publishers are developing downloadable content that can be sold as add-ons to their packaged goods business, which creates a steady, recurring revenue stream.</p>
<p>Overall, what the two execs said they are seeing is an expansion in the number of people playing games&#8211;in other words, digital is not cannibalizing console. In addition to the 100 million homes that have an Xbox, a Wii or a PlayStation, increasingly consumers are playing games on their computer, smartphone or tablet.</p>
<p>The company&#8217;s stock reacted positively to the report, nearly hitting a 52-week high after increasing 64 cents, or 2.4 percent, to close at $27.32 a share.</p>
<p>Both its traditional physical-store business and its digital initiatives continue to grow.</p>
<p>&#8220;The important thing to know is that we are actually making the market bigger for gaming. We think gaming is a net positive growth activity,&#8221; Raines said.</p>
<p>Overall, <a href="http://www.businesswire.com/news/home/20110519005267/en/GameStop-Reports-Record-Quarter-2011-Results">the company reported</a> a first quarter profit today of $80.4 million, or 56 cents a share, on revenues of $2.28 billion. Profits were up 6.9 percent and revenues were up 9.5 percent compared to the same period a year earlier.</p>
<p>In addition to digital, GameStop also contributed its strong performance, in part, to the launch of Nintendo&#8217;s 3DS.</p>
<p>Nintendo <a href="http://emoney.allthingsd.com/20110415/nintendo-sold-400000-3-d-handheld-units-in-first-week/?mod=ATD_search">said it sold 400,000 3-D handheld game units</a> during its first week in the U.S., but since then sales have lagged. In the first full month the device was for sale, <a href="http://emoney.allthingsd.com/20110512/nintendo-ds-outsells-3-d-version-after-first-full-month-of-sales/?mod=ATD_search">it sold less than 200,000</a>, according to NPD Group.</p>
<p>GameStop said it has roughly a 45 percent market share on 3DS sales, but that it has lower expectations for how the Nintendo product will perform in the current quarter.</p>
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		<title>Nintendo DS Outsells 3-D Version After First Full Month of Sales</title>
		<link>http://allthingsd.com/20110512/nintendo-ds-outsells-3-d-version-after-first-full-month-of-sales/</link>
		<comments>http://allthingsd.com/20110512/nintendo-ds-outsells-3-d-version-after-first-full-month-of-sales/#comments</comments>
		<pubDate>Fri, 13 May 2011 00:10:49 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
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		<guid isPermaLink="false">http://emoney.allthingsd.com/?p=5365</guid>
		<description><![CDATA[The original Nintendo DS family continued to outsell the Nintendo 3DS during the first full month the glasses-free 3-D handheld gaming unit was for sale.]]></description>
			<content:encoded><![CDATA[<p>The original Nintendo DS family continued to outsell the Nintendo 3DS during the first full month the glasses-free 3-D handheld gaming unit was for sale.</p>
<p><img src="http://emoney.allthingsd.com/files/2011/05/Nintendo3DS_black-275x237.jpg" alt="" title="Nintendo3DS_black" width="275" height="237" class="alignright size-medium wp-image-5366" />According to NPD Group, Nintendo sold more than 620,000 hardware units in the U.S. in April. This includes more than 257,000 units in the Nintendo DS family, and only 194,000 Nintendo 3DS units. Nintendo also sold more than 172,000 Wii consoles.</p>
<p>Nintendo attributed the gap between the two handheld game units to the staying power of the original DS family&#8211;and avoided any implications that the 3DS was not selling well.</p>
<p>&#8220;With a rich library of games, Nintendo DS has something for everyone. The system’s staying power is exemplified by the recent launch of the Pokémon Black Version and Pokémon White Version games,&#8221; Nintendo said. Those two games sold an impressive 2.8 million units or more combined during their first 60 days of availability.</p>
<p>After the 3DS went on sale March 27, Nintendo was eager <a href="https://emoney.allthingsd.com/20110329/nintendo-says-first-day-sales-of-the-3ds-break-records/?mod=ATD_search">to report that the glasses-free 3-D device broke sales records</a>. However, the original DS still appears to be benefiting from having a deeper catalog of games available for sale. Additionally, sales may have been hurt by concerns of younger players viewing 3-D images over long periods of time, or complaints that 3-D images made people dizzy, or gave them headaches.</p>
<p>Overall, NPD Group said that the videogame industry saw very strong sales for hardware, software and accessories in April, compared to the year-ago period.</p>
<p>NPD&#8217;s Anita Frazier wrote that all three categories experienced double-digit dollar growth compared to April 2010, reversing a negative downward trend.</p>
<p>&#8220;Easter purchasing occurred in April this year as opposed to March last year,&#8221; Frazier wrote. &#8220;The Easter timing shift could explain about $60 million of the growth, but even accounting for that shift, sales of new physical product realized a notable increase versus last year.&#8221;</p>
<p>Hardware sales were strong across the board with the PS3, PSP and Xbox 360 platforms all seeing an increase in unit sales versus April last year. The Xbox 360 platform was the best-selling device of the month in terms of unit sales, followed by the Nintendo DS.</p>
<p>Software performed even better in April. It was the first month that new physical retail sales of content showed growth in both units and dollars since November of last year.</p>
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		<title>Can Electronic Arts Really Become A Digital Gaming Powerhouse?</title>
		<link>http://allthingsd.com/20110506/can-electronic-arts-really-become-a-digital-gaming-powerhouse/</link>
		<comments>http://allthingsd.com/20110506/can-electronic-arts-really-become-a-digital-gaming-powerhouse/#comments</comments>
		<pubDate>Fri, 06 May 2011 12:00:48 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
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		<guid isPermaLink="false">http://emoney.allthingsd.com/?p=5190</guid>
		<description><![CDATA[Electronic Arts CEO John Riccitiello talked a big game Wednesday, telling analysts on its year-end conference call that the 29-year-old company is well on its way to a major transformation. But the big question is whether EA can turn the ship around when there are 8,000 employees on it who are used to doing business the old way.]]></description>
			<content:encoded><![CDATA[<p>Electronic Arts CEO John Riccitiello talked a big game Wednesday, telling analysts on its year-end conference call that the 29-year-old company is well on its way to a major transformation.</p>
<p><img class="alignright size-medium wp-image-5194" title="john_riccitiello" src="http://emoney.allthingsd.com/files/2011/05/john_riccitiello-195x300.jpg" alt="" width="195" height="300" />It argued that instead of creating hits that are sold on store shelves for videogame consoles, the Redwood City, Calif.-based company wants to take popular franchises, like Madden or Need for Speed, and digitally distribute them across a number of platforms, such as mobile, social and PC, to create recurring revenue streams.</p>
<p>Riccitiello was unwavering in his commitment:</p>
<p>&#8220;The consumer has changed. 200 million console players have become 1.5 billion consumers gaming on multiple devices,&#8221; he said. &#8220;Today, we are a very different company&#8230;.From here, it is about building a better, more predictable, and more profitable business, a business that is less dependent on individual hits and more deeply anchored in the ongoing monetization of game franchises.&#8221;</p>
<p>But the big question is whether EA can turn the ship when there are 8,000 employees on it who are used to doing business the old way.</p>
<p>Habits are hard to break, especially when it requires replacing a controller with a mouse or a touchscreen. In the meantime, some of its more nimble competitors are getting most of the credit as the industry shifts to digital.</p>
<p>For example, earlier this year, we watched as the private market valuation of Zynga&#8211;EA&#8217;s much smaller and younger competitor&#8211;exceeded EA&#8217;s public market valuation. Zynga was reportedly worth between $7 and $9 billion, while EA was valued at roughly $6 billion.</p>
<p><img class="alignleft size-medium wp-image-5193" title="nintendo-controller" src="http://emoney.allthingsd.com/files/2011/05/nintendo-controller-275x206.jpg" alt="" width="275" height="206" />Today, EA&#8217;s market cap stands at about $7.25 billion.</p>
<p>Zynga, which makes such Facebook games as FarmVille and CityVille and has dabbled in mobile games, <a href="http://emoney.allthingsd.com/20110214/zynga-revenues-soar-to-850-million-in-2010/?mod=ATD_rss">reportedly had revenues of $850 million in 2010</a>. In comparison, <a href="http://emoney.allthingsd.com/20110504/electronic-arts-digital-revenues-hit-833-million-for-full-year-to-exceed-forecast/">EA&#8217;s digital revenues totaled $833 million for its fiscal year 2011</a>. (Meanwhile, its overall revenues totaled much more, or $3.6 billion.)</p>
<p>Still, smaller competitors, such as Zynga, which strictly make money from digital revenues, are viewed as not having a lot of baggage and can go hard after something new without sacrificing the old.</p>
<p>Just last week, there was a sign that EA wasn&#8217;t winning that battle&#8211;even internally.</p>
<p><img class="alignright size-medium wp-image-5195" title="ATDFarmville_Cropswither" src="http://emoney.allthingsd.com/files/2011/05/ATDFarmville_Cropswither-275x187.jpg" alt="" width="275" height="187" />Electronic Arts disclosed that <a href="http://emoney.allthingsd.com/20110426/eas-coo-john-shappert-leaves-to-join-zynga/?mod=ATD_search">its COO John Schappert resigned</a>. Rumors indicated that he was joining Zynga, although Zynga has not confirmed the appointment.</p>
<p>Despite that potential set-back, and EA&#8217;s public perception, it has been trying.</p>
<p>It has been on an acquisition spree for the past couple of years, picking up everything from Playfish, a social-games developer, to Chillingo, a mobile-games publisher. Earlier this week, it bought a small mobile-games studio <a href="http://emoney.allthingsd.com/20110503/ea-lands-firemint-acquisition-to-bulk-up-mobile-gaming-talent/?mod=ATD_search">called Firemint</a>. (Of course, those investments also become a curse because they have to start paying off.)</p>
<p>Beyond acquisitions, it has also re-prioritized the work it was doing.</p>
<p>On the call, Riccitiello said that involved paring back the number of titles it was making from roughly 70 to around 20. While that was something of a defensive move, he said they are now shifting to offense, by picking the game franchises they do decide to build and porting them across several platforms to increase their profitability. &#8220;Over the coming years, we will transform EA from a packaged goods company to a fully integrated digital entertainment company.&#8221;</p>
<p>He calls it the &#8220;games-as-a-service&#8221; model, which is comparable to the software industry switching from a licensed packaged goods model to SAAS, or software as a service, several years ago.</p>
<p>Under this philosophy, he said, they will rely on intellectual property and strong brands, such as EA sports and Hasbro, and build out a platform of registered users that can be marketed to (in Q4, it had 112 million users, roughly twice as many from a year ago). It&#8217;s also making managers experts across mobile, social and console, rather than making silos for each category.</p>
<p>&#8220;It’s a big change,&#8221; Riccitiello said. &#8220;As an investor, you can see this as a way to better manage our IP, and drive up the ARPU for our core properties.&#8221;</p>
<p>At least one analyst was reluctant to believe the transformation could take place. How does Riccitiello plan to get everyone on board?</p>
<p>&#8220;If only you could spend a couple of weeks with us,&#8221; Riccitiello joked.</p>
<p>His more serious answer was that they&#8217;ve spent the past three years conducting a managerial change: &#8220;We&#8217;ve identified intellectual property owners inside of our company, and we&#8217;re sort of organizing around that.&#8221; Those individuals are charged with plans that involve console, PC, mobile, social and a variety of business models, including microtransactions and subscriptions.</p>
<p>The change will be relatively slow. This year the company is projecting digital revenues to total $1 billion, increasing roughly 20 percent over 2011.</p>
<p>And despite all of its efforts, the company will face other challenges, including some that are out of its control. For instance, the company&#8217;s EA Sports business is facing two potential league lockouts and this year there won&#8217;t be a FIFA World Cup title. Those three things represent roughly a $250 million revenue gap.</p>
<p>It&#8217;s also launching its biggest launch campaign for a game in EA’s history for Battlefield 3, and it&#8217;s unclear when the highly anticipated launch of Star Wars, an online multi-player game, will occur. Depending on when it is ready, EA&#8217;s earnings per share could fluctuate by 15 cents.</p>
<p>Overall, at least some people were sold on the picture Riccitiello painted.</p>
<p>The company&#8217;s stock increased a modest $1.76 a share yesterday, or roughly 8.8 percent, to close at $21.68. And Piper Jaffray analysts raised their price target on EA&#8217;s shares from $19.50 to $25.00.</p>
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		<title>Industry Heavyweights Say the Future of Gaming Is Console-less</title>
		<link>http://allthingsd.com/20110428/industry-heavyweights-say-the-future-of-gaming-is-console-less/</link>
		<comments>http://allthingsd.com/20110428/industry-heavyweights-say-the-future-of-gaming-is-console-less/#comments</comments>
		<pubDate>Thu, 28 Apr 2011 12:45:27 +0000</pubDate>
		<dc:creator>Dennis Nishi</dc:creator>
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		<guid isPermaLink="false">http://voices.allthingsd.com/?p=39538</guid>
		<description><![CDATA[If you were to mute the seizure-inducing throb of the Electronic Entertainment Expo and distill the crowd, what you’d have left is the Los Angeles Games Conference, an annual trade show that is put on by tech publisher Digital Media Wire and the Consumer Electronics Association.]]></description>
			<content:encoded><![CDATA[<p>If you were to mute the seizure-inducing throb of the Electronic Entertainment Expo and distill the crowd, what you’d have left is the Los Angeles Games Conference, an annual trade show that is put on by tech publisher Digital Media Wire and the Consumer Electronics Association.</p>
<p>The two-day event was held in Beverly Hills, Calif., and heavyweights from Sony, Electronic Arts and dozens of other companies that operate within and around the gaming space met with industry analysts for serious powwow about payment models, digital distribution and social media. The latter was the dominant topic in many of the panels—notably discussing Facebook as a gaming platform.</p>
<p>A trio of analysts prefaced the conference with a trend report. Each drew interesting points including a prediction of death for game consoles like the Xbox and PlayStation. Like in the music industry, the digital delivery of games and online play is expected to eventually overtake the sales of physical products.</p>
<p><a href="http://blogs.wsj.com/speakeasy/2011/04/27/industry-heavyweights-say-the-future-of-gaming-is-console-less/">Read the rest of this post on the original site</a></p>
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		<title>Electronic Arts Hires Ad Exec Dave Madden from WildTangent</title>
		<link>http://allthingsd.com/20110425/electronic-arts-hires-ad-exec-dave-madden-from-wildtangent/</link>
		<comments>http://allthingsd.com/20110425/electronic-arts-hires-ad-exec-dave-madden-from-wildtangent/#comments</comments>
		<pubDate>Mon, 25 Apr 2011 20:08:49 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
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		<guid isPermaLink="false">http://emoney.allthingsd.com/?p=4801</guid>
		<description><![CDATA[After working for more than a decade at WildTangent, Dave Madden has accepted a position at Electronic Arts as the SVP of Global Marketing Solutions.]]></description>
			<content:encoded><![CDATA[<p><a href="http://emoney.allthingsd.com/20110209/wildtangent-not-playing-around-when-it-comes-to-advertising-in-social-games-video/?mod=ATD_rss">After working for more than a decade at WildTangent</a>, Dave Madden has accepted a position at Electronic Arts as the SVP of Global Media Sales.</p>
<p><img class="alignright size-medium wp-image-4802" title="wildtangent_davemadden" src="http://emoney.allthingsd.com/files/2011/04/wildtangent_davemadden-258x300.jpg" alt="" width="258" height="300" /></p>
<p>Madden, who shares no relation to EA&#8217;s top-selling NFL title, was most recently WildTangent&#8217;s EVP of sales and marketing. In his new role, he will head up advertising across all of EA&#8217;s properties, including console, online, mobile and social gaming.</p>
<p>&#8220;There&#8217;s a lot of free content being monetized through in-game transactions. That&#8217;s the perfect playground for advertisers to add value,&#8221; he said.</p>
<p>At EA, his focus will be on figuring out a way for advertisers to easily participate in a way that scales&#8211;across all the various platforms&#8211;and leverages their video and other Flash assets.</p>
<p>Madden, who continues to own stock in Redmond, Wash.-based WildTangent, said his decision to leave was the next logical move for his career. He will now be based in Los Angeles. The Global Marketing team has 50 employees.</p>
<p>In his absence, WildTangent, which operates a game platform on PCs, has promoted Bill Clifford to the position of SVP and general manager of WildTangent Media.</p>
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		<title>Nintendo Net Drops 66 Percent</title>
		<link>http://allthingsd.com/20110425/nintendo-net-drops-66-percent/</link>
		<comments>http://allthingsd.com/20110425/nintendo-net-drops-66-percent/#comments</comments>
		<pubDate>Mon, 25 Apr 2011 08:43:22 +0000</pubDate>
		<dc:creator>Daisuke Wakabayashi</dc:creator>
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		<guid isPermaLink="false">http://voices.allthingsd.com/?p=39345</guid>
		<description><![CDATA[Nintendo Co. said Monday full-year net profit was down for the second straight year, damped by sluggish sales of its DS handheld game device and Wii home console. The company also said it plans in 2012 to launch a home console to replace the Wii.]]></description>
			<content:encoded><![CDATA[<p>Nintendo Co. said Monday full-year net profit was down for the second straight year, damped by sluggish sales of its DS handheld game device and Wii home console.</p>
<p>The Japanese videogame maker said its net profit for the fiscal year ended March 31 was ¥77.62 billion ($944.5 million), down 66 percent from the year-earlier ¥228.64 billion. Revenue was down 29 percent to ¥1.014 trillion while operating profit was off 52 percent to ¥171.08 billion. Analysts polled by Thomson Reuters had forecast a net profit of ¥142.41 billion and revenue of ¥1.079.</p>
<p>Nintendo also said it plans in 2012 to launch a home console to replace the Wii, which has sold 86 million units since its 2006 debut. The company said it plans to show a working model at June&#8217;s E3 Expo in Los Angeles.</p>
<p><a href="http://online.wsj.com/article/SB10001424052748704132204576284311572084674.html">Read the rest of this post on the original site »</a></p>
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		<title>Nintendo Set to Launch New HD Gaming Console?</title>
		<link>http://allthingsd.com/20110414/nintendo-set-to-launch-new-hd-gaming-console/</link>
		<comments>http://allthingsd.com/20110414/nintendo-set-to-launch-new-hd-gaming-console/#comments</comments>
		<pubDate>Thu, 14 Apr 2011 21:50:21 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
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		<description><![CDATA[Nintendo's Super Mario Bros. in HD? Maybe, if rumors are correct about the company working on a new gaming console. Game Informer reports that an announcement could come as soon as E3, the big gaming conference in June. While it wasn't expected, a new console would give Nintendo a shot at increasing revenues as sales of its very successful Wii diminish, and would provide it an opportunity to have hardware more on par with Sony's PlayStation and Microsoft's Xbox. A key feature would be a high-definition display. A spokesperson declined to comment on rumors or speculation.]]></description>
			<content:encoded><![CDATA[<p>Nintendo&#8217;s Super Mario Bros. in HD? Maybe, if rumors are correct about the company working on a new gaming console. <a href="http://www.gameinformer.com/b/news/archive/2011/04/14/new-nintendo-console-at-e3.aspx">Game Informer reports</a> that an announcement could come as soon as E3, the big gaming conference in June. While it wasn&#8217;t expected, a new console would give Nintendo a shot at increasing revenues as sales of its very successful Wii diminish, and would provide it an opportunity to have hardware more on par with Sony&#8217;s PlayStation and Microsoft&#8217;s Xbox. A key feature would be a high-definition display. A spokesperson declined to comment on rumors or speculation.</p>
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		<title>Fed Up With Facebook? Hi5 Tells Social Game Developers There&#039;s an Alternative.</title>
		<link>http://allthingsd.com/20110228/fed-up-with-facebook-hi5-tells-social-game-developers-theres-an-alternative/</link>
		<comments>http://allthingsd.com/20110228/fed-up-with-facebook-hi5-tells-social-game-developers-theres-an-alternative/#comments</comments>
		<pubDate>Mon, 28 Feb 2011 20:07:12 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
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		<category><![CDATA[video]]></category>
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		<guid isPermaLink="false">http://emoney.allthingsd.com/?p=3140</guid>
		<description><![CDATA[The spotlight at the 2011 Game Developers Conference this week in San Francisco will be social networking, as Facebook has become an undeniable powerhouse in the industry--and a considerable force to reckon with.  In advance, we caught up with Alex St. John of Hi5, who has come up with an alternative he calls the "anti-social networking platform."]]></description>
			<content:encoded><![CDATA[<p>The spotlight at the 2011 <a href="http://www.gdconf.com">Game Developers Conference this week in San Francisco</a> will be social networking, as Facebook has become an undeniable powerhouse in the industry&#8211;and a considerable force to reckon with.</p>
<p><img class="alignright size-medium wp-image-3145" title="hi5_alexstjohn" src="http://emoney.allthingsd.com/files/2011/02/hi5_alexstjohn-275x269.jpg" alt="" width="275" height="269" />As just one example of the scope of Facebook&#8217;s influence, the 18,000 attendees, who have hundreds of sessions and panels to pick from over five days, will be subjected to listening to 12 employees of Zynga, the Facebook superstar, on 15 different panels. (Brian Reynolds, Zynga&#8217;s chief game designer, appears three times, while a search reveals no Facebook employees on the roster.).</p>
<p>Two other elements will serve as a backdrop to the event.</p>
<p>Apple will hold its much-anticipated event on Wednesday, where it&#8217;s likely to unveil a new version of its hugely successful iPad, <a href="http://kara.allthingsd.com/20110222/exclusive-apple-ipad-2-event-set-for-march-2/">according to BoomTown&#8217;s Kara Swisher</a>. The tech giant undoubtedly is becoming one of the dominant portable gaming giants, as the iPad and iPhone easily replace the need for dedicated gaming devices.</p>
<p>No need for Apple to attend GDC, however, <a href="http://digitaldaily.allthingsd.com/20110223/apple-announces-march-2-special-event/">when the unveiling will occur across the street at the Yerba Buena Center for the Arts</a>. So subtle.</p>
<p>Meanwhile, the GDC is commemorating its own 25th gaming conference by featuring a keynote by Nintendo.</p>
<p>But can you believe the company, which doesn&#8217;t have a new gaming console even on the horizon, is the one talking about the past 25 years and not what the future has in store?</p>
<p>Other companies with a significant presence include Sony, which will be showing off the new Experia Play phone and its motion-activated Move technology, Electronic Arts and independent mobile-game makers like Rovio, of Angry Birds fame.</p>
<p>However, with social being one of the main ingredients on the menu, we caught up with Alex St. John, a long-time executive in the industry, who has spent the past year and a half coming up with an alternative&#8211; he calls it the &#8220;anti-social networking platform.&#8221;</p>
<p>St. John is the president and chief technology officer of <a href="http://www.hi5.com">Hi5</a>, which was founded in 2003 as a competitor to Facebook&#8217;s social network. With all hope lost on that front, it&#8217;s now going up against the company a second time&#8211;this time for its games business.</p>
<p>The move is 100 percent anti-Facebook, and there&#8217;s nothing subtle about it.</p>
<p>Over the past year and a half, St. John has been building an alternative for social-game developers who fear they may be relying too much on Facebook.</p>
<p>Today, Facebook claims 30 percent of most revenues made within a game <a href="http://emoney.allthingsd.com/20110124/facebook-credits-will-be-mandatory-payment-platform-starting-july-1/">by mandating the use of its own virtual currency, called Facebook Credits</a>. Developers often hand over even more money to the social network in order to advertise and draw an audience to their games.</p>
<p>St. John&#8217;s ambitions are unnaturally large, and supercharged by the fact that he was able to skyrocket his last company, WildTangent, into the largest casual games network (above Yahoo), where it continues to stand today. (<a href="http://emoney.allthingsd.com/20110209/wildtangent-not-playing-around-when-it-comes-to-advertising-in-social-games-video/">Read our story on WildTangent for background</a>.)</p>
<p>Even more boldly, he&#8217;s promising to double or triple the amount of revenues a developer can make when using Hi5 compared versus Facebook.</p>
<p><strong>Here&#8217;s the logic:</strong></p>
<p>&#8220;If I have the same content, and have better monetization, even if my audience is tiny, I will eventually win because I can buy traffic cheaper than you.&#8221;</p>
<p>If you buy that, listen to his two-part plan.</p>
<p><img class="aligncenter size-Medium380 wp-image-3141" title="SocioPath_logo" src="http://emoney.allthingsd.com/files/2011/02/SocioPath_logo-380x189.jpg" alt="" width="380" height="189" /></p>
<p><strong>First, there&#8217;s SocioPath.</strong></p>
<p>SocioPath (the anti-social network) will enable game developers to provide a home for their games outside of the walls of Facebook.</p>
<p>By using it, they can create a unique URL for the game, and users won&#8217;t have to register. To do this, Hi5 clones Facebook&#8217;s APIs, and enables users to create profiles on the fly, so they can play with other people immediately. The caveat is that if the gamers want to chat or communicate with others, they&#8217;ll have to log in and register.</p>
<p>Otherwise, the auto-registration process creates little to no friction for playing.</p>
<p><img class="aligncenter size-Medium380 wp-image-3142" title="SocioPay_logo" src="http://emoney.allthingsd.com/files/2011/02/SocioPay_logo-380x209.jpg" alt="" width="380" height="209" /></p>
<p><strong>Second, there&#8217;s SocioPay.</strong></p>
<p>SocioPay offers game-makers a way to monetize. It uses a hybrid of advertising and commerce, a practice St. John mastered at WildTangent (for the record, St. John no longer has any role at WildTangent and doesn&#8217;t own any stock).</p>
<p>This model allows developers to continue to sell virtual goods to the three percent of users who are traditionally willing to pay in games, but still monetize the other 97 percent using advertising.</p>
<p>When a user clicks on a virtual good, Hi5 will automatically serve a 15-second video clip. If a user would rather pay, they can skip the ad and enter their payment information.</p>
<p>St. John claims you end up losing about 25 percent of sales because of the ads, but you gain way more in revenue through advertising. Over time, they&#8217;ll tweak the ad server, so it knows not to offer an ad if a person has already paid for coins or is likely to. His calculations point to a 200 percent&#8211;<em>maybe</em> 300 percent&#8211;jump in revenue.</p>
<p>Of course, this isn&#8217;t free.</p>
<p>Hi5 will charge developers who want to use SocioPay 30 percent of both commerce and advertising revenues. If the ad server is used anywhere else, like on an individual Web site, the developer can keep 100 percent of the revenues. St. John claims the terms are less onerous than those of Facebook, which takes 30 percent of virtual goods and charges additionally for advertising on the site.</p>
<p>When SocioPath launched in August, it had three social games. It is now live with 116, and launching two to five a week.</p>
<p>This week, for instance, SocioPay launches with five partners&#8211;Portalarium: Port Casino Poker; DJArts Games: Bush Whacker; Mososh: Chronicles of Herenvale; Game Insight: Resort World;, and Hit Point Studios: Gunbros.</p>
<p>St. John expects the program to go live in a month after the beta is completed.</p>
<p>Here&#8217;s a video of St. John, discussing the the trends of GDC, his decision to join Hi5, and his ambitions for the new game venture (to be a very successful No. 2 behind Facebook).</p>
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		<title>Raptr Snags $15 Million in Capital for Social Gaming Platform</title>
		<link>http://allthingsd.com/20110211/raptr-snags-15-million-in-capital-for-social-gaming-platform/</link>
		<comments>http://allthingsd.com/20110211/raptr-snags-15-million-in-capital-for-social-gaming-platform/#comments</comments>
		<pubDate>Sat, 12 Feb 2011 00:18:14 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
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		<category><![CDATA[venture capital]]></category>

		<guid isPermaLink="false">http://emoney.allthingsd.com/?p=2752</guid>
		<description><![CDATA[Raptr, which is building a social gaming platform that lets players track achievements and connect to friends on gaming consoles, has raised $15 million in capital. The round was led by DAG Ventures, with Tenaya Capital and Accel Partners also participating. In total, the Mountain View, Calif. company has raised $27 million. Raptr claims it is adding 750,000 new users a month and has a current total of six million.]]></description>
			<content:encoded><![CDATA[<p>Raptr, which is building a social gaming platform that lets players track achievements and connect to friends on gaming consoles, <a href="http://blog.raptr.com/raptr-2011-infographic/">has raised $15 million in capital</a>. The round was led by DAG Ventures, with Tenaya Capital and Accel Partners also participating. In total, the Mountain View, Calif., company has raised $27 million. Raptr claims it is adding 750,000 new users a month and has a current total of six million.</p>
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		<title>Electronic Arts Focuses on Digital Strategy as Earnings Beat Expectations for Fourth Straight Quarter</title>
		<link>http://allthingsd.com/20110201/electronic-arts-focuses-on-digital-strategy-as-earnings-beat-expectations-for-fourth-straight-quarter/</link>
		<comments>http://allthingsd.com/20110201/electronic-arts-focuses-on-digital-strategy-as-earnings-beat-expectations-for-fourth-straight-quarter/#comments</comments>
		<pubDate>Tue, 01 Feb 2011 21:56:34 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
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		<guid isPermaLink="false">http://emoney.allthingsd.com/?p=2243</guid>
		<description><![CDATA[Electronic Arts' stock is up after reporting solid earnings for the third quarter. Now the company is turning its attention to digital games, which generated just 15 percent of overall revenues.]]></description>
			<content:encoded><![CDATA[<p>Electronic Arts&#8217; shares are up in after-hours trading, after beating analysts&#8217; expectations. Now the company is turning its attention to its growing digital business.</p>
<p><img src="http://emoney.allthingsd.com/files/2011/02/EA_deadSpace-e1296603051963.jpg" alt="" title="EA&#039;s DeadSpace on iPad, Xbox and PC" width="250" height="169" class="alignright size-full wp-image-2245" />The videogame maker posted a GAAP loss of $322 million, or 97 cents a share, on revenues of $1.1 billion. However, when stock-based compensation and revenue deferrals are excluded, the company recorded a 59-cent profit, jumping 33 cents from the year earlier.</p>
<p>Those modified numbers beat expectations of analyst who forecast the company&#8217;s earnings to surge 76 percent to 58 cents a share from the year-ago period, according to Thomson Reuters.</p>
<p>It is now the fourth quarter in a row that EA has beat consensus.</p>
<p>Meanwhile, the company continues to try to call attention to its digital results as it transitions its business model&#8211;from one where gamers pay $60 for an Xbox title to one where consumers pay a few bucks for an iPhone game or play Facebook games that may be free and monetized through other mechanisms, such as virtual goods.</p>
<p>But it&#8217;s hard to convince anyone of the prospects when its packaged-goods business generated $1.1 billion in revenues and its digital games generated a paltry $211 million.</p>
<p>Still, its digital business is up, jumping 39 percent compared with the same period a year earlier. &#8220;We are on track to hit three-quarters of a billion in revenues this year as planned, and we were No. 1 on key platforms like iPhone and iPad,&#8221; said CFO Eric Brown in an interview.</p>
<p>Digital revenues mainly consist of mobile games, digital downloads and social games built by its Playfish subsidiary.</p>
<p>Mobile revenues totaled $59 million in the third quarter, up from $56 million last year. EA does not break out revenues of its Playfish subsidiary, but said it had 39 million monthly active unique visitors (MAUs) in social games, falling from 58 million in the year-ago period.</p>
<p>Brown explained that its monthly uniques are down, much like those of others in the industry that were hurt when Facebook changed its policies about a year ago on how much games could be promoted on the social network.</p>
<p>&#8220;That business is performing well. We are No. 2 in the social games space. MAUs are down for the entire segment, although we are monetizing better, and our strategy is to bring more EA-branded properties to the social network space,&#8221; he said.</p>
<p>Yesterday, Monopoly launched on Facebook, joining FIFA soccer and Madden.</p>
<p>The company also announced that it will repurchase up to $600 million in stock over the next 18 month, which demonstrates the company&#8217;s confidence in its digital strategy, said EA&#8217;s Chief Executive Officer John Riccitiello in the release.</p>
<p>Brown: &#8220;We have excess cash and there&#8217;s characteristics evolving for our digital strategy, as we build our digital revenue, and it becomes more profitable and predictable.&#8221;</p>
<p>Does that mean we won&#8217;t see any more big acquisitions&#8211;like the $400 million Playfish purchase&#8211; by the game maker?</p>
<p>&#8220;We still would have the opportunity to do small acquisitions. For instance, we recently purchased Chillingo, so we still have capital to do small scale, but we don’t intend to do large acquisitions in the short term.&#8221;</p>
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		<title>Nintendo&#039;s Profit Falls as Product Line Faces Steep Competition</title>
		<link>http://allthingsd.com/20110127/nintendos-profit-falls-as-product-line-faces-steep-competition/</link>
		<comments>http://allthingsd.com/20110127/nintendos-profit-falls-as-product-line-faces-steep-competition/#comments</comments>
		<pubDate>Thu, 27 Jan 2011 18:08:56 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
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		<guid isPermaLink="false">http://emoney.allthingsd.com/?p=2047</guid>
		<description><![CDATA[Nintendo is surrounded. On the home console side of the business, there's Microsoft and Sony. On the handheld side, there are dozens of smartphone makers. All of that added up to fewer sales of Nintendo's Wii and DS platforms in the third quarter, and there's not much relief in sight.]]></description>
			<content:encoded><![CDATA[<p>Nintendo is surrounded.</p>
<p>On the home console side of the business, there&#8217;s Microsoft and Sony with new motion-detection systems similar to the Wii. On the Japanese game maker&#8217;s popular handheld side of the business, there&#8217;s <a href="http://digitaldaily.allthingsd.com/20110127/game-changer-sony-uncrates-next-generation-portable/">Sony&#8217;s new offering&#8211;announced today</a>&#8211;and dozens of smartphone makers, from Apple to HTC.</p>
<p>All of that added up to fewer sales of Nintendo&#8217;s Wii and DS platforms in the third quarter, and there&#8217;s not much relief in sight.</p>
<p><img class="alignright size-medium wp-image-2051" title="mariocupcakes" src="http://emoney.allthingsd.com/files/2011/01/mariocupcakes-275x206.jpg" alt="" width="275" height="206" />Nintendo cut its sales forecast for the Wii console by 1.5 million units to 16 million for the year. It also lowered its DS sales forecast by 1 million to 17.5 million units (but raised it to 22.5 million units, including the sales of the upcoming release of its new handheld, which will offer a 3-D experience that doesn&#8217;t require glasses).</p>
<p>Today, Nintendo reported net sales for the nine-month period ended Dec. 31 of 807.9 billion yen ($9.8 billion), down from 1.18 trillion a year ago. Net income shrank to 49.6 billion ($603 million) from 192.6 billion in 2009.</p>
<p>For the same period in 2010, Nintendo said it sold 15.7 million DS units, with about half of those sold in the U.S. That&#8217;s down from 23.4 million in 2009. The company also said it sold 13.7 million Wii units worldwide in 2010, fewer than the 17 million sold in 2009.</p>
<p>Its financial forecast remains unchanged from revised figures released in September.</p>
<p>The company said <a href="http://www.nintendo.co.jp/ir/pdf/2011/110127e.pdf">in its earnings release</a> that &#8220;Nintendo continues to pursue its basic strategy of &#8216;Gaming Population Expansion&#8217; by offering compelling products that anyone can enjoy, regardless of age, gender, or gaming experience.&#8221;</p>
<p>But it seems that is also the goal of others, like Microsoft, which has been able to rapidly expand the audience for the Xbox by releasing the hands-free Kinect accessory. It <a href="http://emoney.allthingsd.com/20110105/microsoft-sells-8-million-kinects-well-not-really-but-close-enough/">sold eight million in its first 60 days on market</a>. Sony has also released the Move, and today announced a next-generation handheld gaming system that beats Nintendo&#8217;s upcoming 3DS at least on one front&#8211;it comes with wireless 3G.</p>
<p><em>Photo Credit: <a href="http://www.flickr.com/photos/clevercupcakes/2474410341/">Clevercupcakes</a></em></p>
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