The monthly NPD reports tend to give a decent macro perspective on the video game industry economy in the U.S. market but there’s nothing like earnings season to unwrap the details. Yesterday, Sony and Electronic Arts opened their books. Sales were up. Today, Nintendo, THQ and Capcom rounded out the story. They and Disney, all reported results. Here’s the earnings wrap up for all four consolidated to a single Metue report:
Earnings season is always a busy time in the corporate finance world but for those watching the media and entertainment sectors, Tuesday was a day of particular information overload. DreamWorks Animation, Electronic Arts, Sony and Viacom all reported quarterly results. The news was mixed. There were some bright spots and some unpleasant surprises too. One by one we’ve got the four consolidated into one place; a single stop to summarize all four quarterly performances.
From the Wii News Files, 3 Short Takes on Nintendo News and Gossip. i. Talking storage and hard drives. ii. A Fuji Film partnership. And iii. an unlikely patent filing getting misrepresented in the rumor mills.
The Storage News:
Nintendo has been a trend setter in the gaming world. While competitors focused on horsepower and graphics engines, Nintendo put the emphasis on playability. While competitors catered to core audiences, Nintendo engaged the masses. They’ve focused on accessible games and innovated in an otherwise stagnant paradigm of user controls. The strategies have paid off. The Wii recently became the top selling console in the U.S. But behind the high demand, there’s one trend Nintendo has neglected to its own disadvantage: storage.
Gaming’s love of Hollywood and Hollywood’s love of gaming seems to be blossoming into quite an affair. About a week ago, Ubisoft acquired Hybride Technologies, the Canadian special effects shop behind movies Sin City and 300. Yesterday, Paramount and Legacy Interactive revealed the first games to come from their partnership will be remakes of past Paramount films. Now Electronic Arts has signed up an agent. They’ll look to United Talent Agency (UTA) to help them navigate Hollywood and create movies from games.
“Casual Games,” the buzzword and category for titles that are easy to approach, fast to learn, and playable regardless of skill level remains the hot zone for gaming investment. Today, news broke that San Francisco based Zynga, makers of casual games for social networks, closed a staggering $29m series B financing.
Founded in part by Tribe founder Mark Pincus, Zynga’s titles include card games like poker and blackjack along with reinterpretations of board and word games. According to the company, 55million people are registered and growth is estimated as high as 450k new players a day. On a monthly basis, they say, more than 18million people are playing the titles on social networks including Facebook, Bebo, Friendster and Meebo.
In March, Paramount got their game on a continued the trend of movie and gaming convergence. At the time, the Viacom movie studio behind hits as far ranging as Chinatown, Indiana Jones and Cheech and Chong’s Still Smoking, announced a plan to focus on in house game development and publishing (via Variety). Now the first titles to come from that project have been announced. They’ll come from familiar territory: Paramount’s own movie catalog.
Three PC based casual games are on track for a Q4 release. The titles will draw on three different decades of teen film source material and be marketed toward women, who are generally more active players of web based casual games than men.
No matter where the economy seems to go, no matter how high gas prices, or how poor home sales, no matter how much consumers are watching expenses, there seems to be little to no impact on the video game industry’s continued run. That was apparent at the E3 conference earlier this week and emphasized even further with the release of June retails sales results from tracking firm NPD.
Overall, gross sales in June topped $1.69b, up from $1.12b in May and a more than 50% gain year over year from last June. Looking at the first six months of the year, the result was similarly impressive: year over year, the industry is up 36%. January to June, gross sales were in at $8.27billion.
