Gaming - Page 372

Blizzard has already confirmed Diablo IV will have cosmetic microtransactions, but new surveys may have confirmed a battle pass for the game.

Diablo IV may be the latest Blizzard game to get a battle pass. The developer has announced that Diablo IV will rely on cosmetic microtransactions despite being a full-priced premium game, but unlike Diablo Immortal, the new sequel will not sell items or content that have tangible effects on gameplay. Yet that doesn't mean Diablo IV won't have its own premium currency scheme to maximize spending and encourage multi-bundle purchases--a tactic that EA, Ubisoft, Take-Two, and of course Blizzard have all used to make billions of dollars every year.

According to newly leaked surveys sent to gamers in Germany, Blizzard may also include battle passes in Diablo IV to complete the monetization trifecta (mTX, in-game currencies, paid passes). Blizzard has already confirmed Diablo IV will also have paid expansions. The new developments basically show Diablo IV will have every monetization structure possible outside of pay-to-win options.

THQ Nordic has revealed that it will be publishing the new South Park game that's in development.

In 2021, Comedy Central announced a $900 million South Park deal that includes a brand new 3D South Park game developed alongside South Park studios. Then in January developer Question Games put up a job listing confirming they are working on a new Unreal Engine-based South Park game.

"Question and South Park Digital Studios are seeking a Lead Level Designer for work on a new video game set in the world of South Park," the still-live job listing reads. Given the developers involved we predicted the game could be a first-person shooter and possibly a spiritual successor to South Park 64.

Hogwarts Legacy, the new Harry Potter RPG, is the latest game to get delayed.

Hogwarts Legacy will no longer release in 2022, and has instead been pushed back to February 10, 2023 on both PlayStation 5 and Xbox Series X/S. The upcoming Switch version has been delayed indefinitely and developer Avalanche says a date will be revealed shortly.

"The team is excited for you to play, but we need a little more time to deliver the best possible game experience," developer Portkey Games succinctly said on Twitter.

SEGA management says that there currently are no plans to delay Sonic Frontiers even as the game faces criticism from fans.

Sonic Frontiers' original gameplay footage was widely panned for its strange world design that seemed empty and disparate, but SEGA isn't ready to push the game back. The company is taking feedback to heart however SEGA is primarily a games business and is relying on Sonic Frontiers to help make earnings throughout its current fiscal year.

In a recent Q1 FY23 earnings call with investors and analysts, SEGA executives affirm that it will be more transparent with Sonic Frontiers and that the game should get new content in 2023 and beyond.

The Grand Theft Auto franchise has made nearly $8 billion since GTA V launched in 2013.

Take-Two Interactive's new Q1 FY23 report delivers an update on total GTA earnings. According to the data provided by the publisher and compiled by us, Grand Theft Auto has earned $7.68 billion in revenues since GTA V's original release in late 2013.

The report shows that GTA earnings hit $202 million during the quarter and dropped to pre-pandemic levels. The games industry is largely correcting itself after abnormal earnings spikes during COVID-19 lockdowns.

Sony's new gaming hub may hint at features coming to new PlayStation games on PC.

Sony recently put up a new PC gaming section on the PlayStation website, and at first glance it seems like an unremarkable (yet useful) listing of first-party PC games. Scrolling down to the FAQ section gives us some interesting possibilities.

The site may hint at two very important features coming to PlayStation games on PC: PSN integration, which is valuable for Sony's metric tracking and engagement systems, and cross-saves between console and PC. Based on industry trends and the stark contrast between consoles and PCs, we're betting these two features will principally (and perhaps exclusively) apply to Sony's new live games.

Sony once had a walled garden of console exclusivity protecting its valuable first-party games. Now these exclusives are being freely advertised for PC.

Sony is taking Microsoft's lead and has released a handful of first-party PS4 and PS5 exclusives onto PC (well, they used to be exclusives). The company now realizes the power of PC gaming--an all-digital marketplace that does not require manufacturing or shipping, which is great in this COVID-19 affected industry--and wants to diversify game sales across Steam and the Epic Games Store. Sony is now willing to take a cut to sell evergreen catalog games on new platforms.

As more PlayStation games come to PC, it's extremely important that Sony creates a one-stop shop for newly released PC titles. Sony has launched a new PC gaming hub on the PlayStation website that conveniently lists, advertises, and links directly to buy options for currently available PlayStation games on PC. This is a quick and easy way for PlayStation console owners to discover games they may be able to play on PC, too, albeit for a separate fee.

Microsoft's legal counsel has responded to Sony's claims about the Activision-Blizzard deal, and has over-dramatized a common business practice among platform holders.

Microsoft representation had interesting things to say about Sony in its response letter to Brazil's CADE agency, which functions similar to the FTC in the United States. CADE is currently asking games companies about Microsoft's huge Activision-Blizzard deal and how it could affect the industry. Sony counsel implied that Call of Duty being kept off of PlayStation could cause anti-competitive harm, and said that subscription services can lower a game's overall quality. It's important to remember that attorneys and lawyers representing Microsoft and Sony have made these comments.

Now Microsoft's counsel has issued a document arguing against Sony's claims namely exclusivity. One of the more interesting sections has dramatized how exclusivity works in regards to subscription services. Legal reps allege that Sony pays video game developers and publishers for "blocking rights" to "prevent" a game from coming to Game Pass. This nomenclature can be simplified in a term that all gamers will recognize: Exclusivity.

Grand Theft Auto franchise revenues have dropped to pre-pandemic levels as the industry adjusts for an inflation market.

The games industry is starting to stabilize after record earnings during the pandemic. Major franchises like Grand Theft Auto are making less money as consumers face rising costs of living, and major platform-holders like Sony, Nintendo, Capcom, and Konami saw losses from unfavorable foreign exchange rates.

All the biggest players are getting hit, including Grand Theft Auto. While GTA V has sold nearly 170 million copies worldwide and now accounts for 44% of total GTA game sales, total series earnings dropped to pre-pandemic levels in the latest quarter. Take-Two's Q1'23 earnings show GTA revenues made $202 million, down 26% year-over-year.

Grand Theft Auto V has shipped nearly 170 million copies worldwide across physical channels, continuing the game's incremental monthly growth.

Even after 9 years with releases on 3 console generations, GTA V still isn't slowing down. Take-Two Interactive has confirmed GTA V has sold-in nearly 170 million copies worldwide. Total franchise sales are now at 380 million, so GTA V makes up 44% of total GTA sales.

GTA V has sold copies than these entire franchises:

Physical sales of the controversial GTA trilogy remaster collection have bombed for the second quarter in a row, Take-Two Interactive's reports indicate.

The GTA Definitive Edition remaster sold a whopping 10 million copies at launch, but our tracking shows the game has significantly fizzled out over the past two quarters. There's a big reason for this: The game is largely regarded as a failure among Rockstar fans due to graphical issues, technical hiccups, and a disastrously controversial launch that has soured public opinion.

The sales figures reflect this sentiment. According to Take-Two Interactive's recent investor's presentation, the GTA franchise has sold-in 380 million copies to date. A quick bit of math offers figures for the trilogy collection. GTA franchise shipments increased by 5 million units, and total franchise shipments also increased by 5 million. This squeezes the trilogy out of the equation with sub 1 million sales.

Bandai Namco expects the Dragon Ball franchise to generate nearly $1 billion in revenues this year, potentially breaking a four-year streak of earnings.

Mega-hit sensation Dragon Ball is Bandai Namco's most popular franchise. Every year from 2019 to 2022, Bandai Namco has made over $1 billion from sales of Dragon Ball games, services, and collectibles.

Weaker yen-to-USD conversions may end up breaking this billion-dollar streak in the company's FY23 period. Dragon Ball is expected to make 133.5 billion yen throughout Fiscal Year 2023, which is above all previous years except for the record highs set in 2020, but current foreign exchange rates put Dragon Ball earnings at about $989 million.

EA's most recent earnings call didn't deliver any real substantial news on upcoming games or content with zero mention of Battlefield 2042.

Alongside BioWare's failed game Anthem, Battlefield 2042 is one of EA's biggest bombs in recent memory. The shooter launched to massive controversy due to performance issues and lack of basic features. EA has publicly acknowledged Battlefield 2042's shortcomings and has promised fixes are coming.

Fast-forward to EA's recent Q1 FY23 earnings call and there's absolutely no mention of Battlefield 2042. The usual suspects--Apex, FIFA, Madden--are touted, but DICE's latest shooter is left out.

EA explains why Skate went free-to-play...and the short answer is social interactions.

The main reason why most games go free-to-play is to maximize reach and microtransaction spending. This is certainly one of EA's big motivations with Skate, which is indeed F2P and will also have microtransactions. EA makes billions every year from live services and Skate will feed into this stream.

Aside from the game's business tactics, EA management gives more color, saying that Skate's new F2P release will appeal and cater to a very specific age group: Gen Z and Gen Alpha, both of which are very much connected to live games.

Bandai Namco has teased a new Tekken game at EVO 2022, and it's likely Tekken 8.

Tekken is coming back sometime and based on the quick teaser clip shown at EVO 2022, it should be an ultra high-def brawler on PS5 and Xbox Series X/S.

To show off the game's new graphics, Bandai Namco had a stark compare-and-contrast clip showing the cinematic end scene from Tekken 1 where Kazuya throws Heihachi off a cliff. Kazuya turns and looks at the viewer in the classic old-school shot with PS1 graphics, which promptly zaps over to the modernized visuals of the new Tekken game. Kazuya's devil eye gleams in high-def glory.

EA reveals its major motivations behind singleplayer games while reiterating that live services are the bedrock of its business.

In a recent earnings call, EA CEO Andrew Wilson discussed how singleplayer games fit into its portfolio and why the company will continue to make them. Wilson says that EA makes games for two reasons: storytelling and building online communities. Singleplayer games like Jedi: Fallen Order--whichsold so well that EA changed how it thinks about singleplayer games--fit into the more personal entertainment experience category.

Wilson didn't necessarily say that singleplayer games are "really really important," but did indicate that singleplayer experiences are more creatively-driven and less weighted on EA's business than live service games. Wilson seems to delineate singleplayer from live games and may hint that multiplayer/microtransactions won't be feature in future games like Mass Effect 5 and Dragon Age: Dreadwolf.

Singleplayer games might be important to Electronic Arts, but they are the farthest thing from for Activision-Blizzard.

It's no surprise that Activision-Blizzard is focused on live games. The publisher makes billions every year from online games like Call of Duty, Candy Crush, and World of Warcraft, and in Q2 2022 it made $1.2 billion from in-game microtransactions.

While scouting Activision's latest earnings report, I noticed an interesting breakdown of its revenue sources. There's two types of revenue streams for Activision-Blizzard's games: Point-in-time, which is basically a singleplayer/multiplayer game that you buy and receive in full that has no microtransactions (think Tony Hawk 1+2 remasters), and point-over-time, or live games with expanding content with in-game purchases (practically every other ATVI game).

Activision made more money from mobile in Q2 2022 than all other platforms combined, signalling the importance of breakout hits like Diablo Immortal.

Diablo Immortal is helping buoy Activision-Blizzard earnings amid stabilization of pandemic spending highs. The publisher has reported significant revenue drops The popular mobile game helped Blizzard's mobile earnings skyrocket by 462% year-over-year, and with the help of Candy Crush and Call of Duty Mobile, has catapulted total company mobile earnings.

In Q2 2022, mobile generated $831 million and accounted for 51% of total quarterly earnings. Mobile beat all other segments combined including console ($376 million), PC ($332 million), and other, which includes distribution and Overwatch/Call of Duty League earnings ($105 million).

Activision's Q2 2022 period doesn't meet or beat last year's record highs as revenues slide by $652 million.

Call of Duty Vanguard and World of Warcraft were the major contributes to Activision's recent earnings drop. Activision-Blizzard reported $1.644 billion in net revenues during the Q2 period, down 29% or $652 million from Q2 2021's record $2.296 billion. Tough comparisons were the main reason for the drop in revenues; Q2'21 had the might of Black Ops Cold War swinging into the mid-year season after the release of the PS5 and Xbox Series X/S from the year-ago holiday period, coupled with World of Warcraft's Shadowlands from a year prior and new classic content.

"The decrease in...net revenues...was primarily driven by a decrease in revenues of $627 million due to lower revenues from Call of Duty Vanguard (as compared to Black Ops Cold War) and World of Warcraft," Activision wrote in its Q2 earnings report.

Blizzard Entertainment's mobile segment earnings are up 462% year-over-year thanks to Diablo Immortal's release in June.

Activision-Blizzard just posted up its Q2 2022 earnings, and while overall revenues and metrics are down, game segments like Blizzard are showing growth in key platforms. Blizzard's mobile revenues hit $90 million in Q2'22, up 462% over the $16 million earned in Q1'22.

In terms of raw earnings, mobile only generated $28 million in revenues for Blizzard during the period. However the company recognized $62 million in deferred revenues to boost total earnings to $90 million. These revenues likely reflect the release of Diablo Immortal.