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Nintendo worldwide president Satoru Iwata pledged to create ‘deeper game experiences’ at the company’s E3 presentation. The struggle between traditional games and 99-cent mobile games will be a key battle of 2012.
Photo: Jon Snyder/Wired.com

The next generation of videogames is finally coming, although it isn’t arriving all at once. Instead of mounting a shock-and-awe campaign, next-gen gaming is sneaking up on us. 2012 is likely to see an industry still taking baby steps forward.

With last year’s weaker-than-expected launch of Nintendo 3DS and the quick drop-off in sales of PlayStation Vita in Japan, dedicated portable game systems are fighting an uphill battle, though not necessarily an unwinnable one. Nintendo is releasing Wii U this year, which will be the first of the next generation of home consoles — but from all appearances it will only draw up to the Xbox 360 and PlayStation 3 in terms of processing power, not surpass them significantly.

So 2012 may not be a transformative year, just another step down the road that the gaming industry has already set itself on. Here’s where the industry stands, as I see it, at the dawn of 2012 and where it’s likely to go over the next year.

Portable Gaming: Nintendo vs. Sony vs. Everyone

As the leading maker of traditional game hardware, Nintendo has found itself under the most pressure to compete against … well, whatever it is Nintendo believes itself to be competing against. It continues to insist that it is not actually in competition with mobile games and that the rise of 99-cent iPhone games is not really impacting its portable-game business.

Well, something impacted it. Nintendo made no bones about the fact that sales of 3DS were more sluggish than it expected, which led to a massive price drop only a few months after launch. That, coupled with the one-two punch of Mario 3D Land and Mario Kart, stimulated sales quite a bit over the holidays. It also put Nintendo on track to what would be its first-ever annual loss.

Was the $250 price tag the only thing holding 3DS back, or were its holiday sales just given a temporary boost by the more attractive price and major titles? That’s what we’ll find out in 2012. Look for Nintendo to continually improve its downloadable games and other connected services, especially as packaged retail games are likely to remain slow to arrive on shelves. In Japan, Nintendo has dropped demo versions of retail games onto the eShop, big titles like Resident Evil: Revelations and Theatrhythm Final Fantasy.

Sony will unleash the PlayStation Vita in the U.S. and Europe this February. Sales of the machine in Japan have dropped off significantly since it launched in December.
Photo: Jon Snyder/Wired.com

Speaking of downloadable games, PlayStation Vita is out in Japan, and I’ve been playing with my launch-day unit. I purchased one cartridge game (Uncharted) but don’t see why I’d ever want to do that again. Having to carry around a case full of games is old and busted, and having all of your games saved to a memory card is the new hotness. So the fact that every PlayStation Vita game will be available via the digital store is music to my ears.

Here’s the potential flipside of that. By splitting up retail games (about $40 each) and downloadable ones (about $3-8 each), Nintendo has established a system in which downloadable games are sold at something of an impulse-buy price point. Not as cheap as 99-cent iPhone games, but still.

Sony’s Vita game library, currently, is mostly filled with downloadable games that cost upwards of $40, about the same as the retail cartridges. That is very much not an impulse-buy price. I’m curious as to how Vita’s downloadable game library will change and grow over the next year: Will there be a race to the bottom, price-wise, as we saw on the App Store?

I’ll write more about Vita later, but the thesis of any such piece will likely be something to the effect of: Vita is a really neat portable game platform, but who needs it? It was extremely forward-thinking of Sony to put a Blu-ray player into every PlayStation 3, which saved it from a fate worse than the bad fate it ended up with. But Vita doesn’t really have anything similar: It’s just a game machine, and right now it doesn’t exactly have a killer app on the level of Nintendo’s pair of Mario games. PSP never found one after 5 years on sale. Can Vita? And if 3DS tanked at $250, why wouldn’t Vita? The Kindle Fire at $200 is a serious competitor.

Meanwhile, Angry Birds sold 6.5 million copies on Christmas Day alone. There’s no reason to believe that the games market on iOS, Android and other such devices won’t continue to explode in 2012. One of the big questions is, will the attractiveness and depth of the games on offer continue to entice more and more hard-core gamers away from spending money on 3DS and Vita software (if not even home consoles, too)?

Razer’s “Project Fiona,” announced at CES this week, may look like a ridiculous boondoggle, but it’s also an attempt at addressing the double-edged sword that is tablet gaming: The simple touch interface has drawn in many new players, but perhaps there is only so much you can do without buttons and sticks. Exclusive software aside, this is the last real advantage that Nintendo and Sony have. What if someone finally manages to erase it, somehow?

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Silent Hill: Could there be any more of a gloomy and impressively immersive series?

While yes, number two is the epitome for survival horror in gaming, the sequels weren’t too bad except for misplaced monsters and fan service. The games are now getting a lovely little re-release with Silent Hill HD Collection. A fully remastered and newly voiced Silent Hill 2 and 3 in High Definition will be released on March the 6th. I really want to play this as I have only played the first back on the old PSX and would love to try out the sequels. I’m a little worried though if the voice acting has changed much between games and will cause a bit of fan outrage in the process.

One of their new steps in the series, Silent Hill: Downpour will be released on March 13th. For those who haven’t heard about the latest iteration, the story follows a convicted felon Murphy Pendleton and explores Silent Hill’s entire area as Konami is calling it “the most expansive Silent Hill to date.” I do and don’t like this concept as the idea of Silent Hill as contained really ramped up the atmosphere of previous games, while a gigantic play area may remove the claustrophobic atmosphere which has made the game great (See: Silent Hill 4:The Room)

And finally, Silent Hill Book of Memories will be exclusive to the Vita. The game has an odd premise to say the least as the game is entirely in book form with multi and co-op but you can create your own history of the story as it goes on. The game will be out on March 27th. The idea of unreliable narrator and player immersion will be awesome there.  Especially on the go, the game could be amazing for long bus trips.

I think Konami have a lot of great ideas for gameplay and storyline but the fact that all of these release dates are in March could cause some problems for fans who will probably have to shell out over two hundred bucks just to keep up plus time to play these new games. Either way, I wish them the best and will probably be getting the HD collection some time in the future.

Via [GameRevolution]

Will the future of videogame consoles be decided by videogames at all, or are we all just looking for fancier TiVos?

On this episode of the Game|Life podcast, we continue our discussion of the State of the Game as we enter the futuristic-sounding year 2012. On last week’s show, we talked about … well, we talked about Star Wars: The Old Republic mostly, but then we moved on to a discussion of the portable videogaming market and how it will continue to be impacted by and defend itself from mobile games.

Today, we move on to consoles. On Thursday, the NPD Group released its sales data for December 2011. Surprisingly, and in sharp contrast to previous years, the sales of each home game system were lower in December than in November. But the Xbox 360 had a banner year, and Microsoft had some major statistics to announce about the uptake of its non-gaming entertainment services like Netflix. Of note, the number of people using such apps went up by a whopping 50% from November to December.

With that in mind and considering Microsoft’s ever-growing feature set (which now includes live television), we find ourselves questioning what role traditional videogames will play in shaping the industry going forward. Wired magazine senior editors Chris Baker and Peter Rubin join Wired.com managing editor Marty Cortinas and me.

(Some other key factoids from NPD mentioned on the show are below.)

The Game|Life podcast is embedded below and is available on iTunes. You can also download it directly.

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Quotes from NPD analyst Anita Frazier

“Hardware was particularly hard hit in December. Normally, we see sales increase from November to December on an average sales per week basis (keeping in mind December is a 5-week retail month as compared to November which is a 4-week retail month). The 3DS and the DS were the only platforms to realize a unit sales increase versus November, which is highly unusual since typically all platforms enjoy a lift in the biggest month at retail.”

“Our preliminary estimate for the other monetization methods in which consumers can acquire games content is $7.24B for 2011, an increase of 7% versus 2010. This includes the consumer spend on used games, digital full game and add-on content downloads, mobile games, social network games, subscriptions and rentals. The increase in these areas partially offset the decline in new physical retail sales of content in 2011.”

“We get asked a lot about how Skylanders is performing. If you combine the sales of software bundles with the character packs which are tracked in the accessories category, the title would rank 4th in December, and 10th for Annual 2011 on dollar sales.” (Note: The quote originally read “11th,” as we say in the podcast. NPD later corrected the quote to “10th.”)

Quotes from Microsoft

“The hours of video consumed globally on Xbox LIVE increased 140 percent from 2010 to 2011.”

“In December more than 60 percent of U.S. Xbox LIVE Gold members used entertainment apps on Xbox LIVE — for an average of an hour a day each.”

“The number of people using entertainment apps on Xbox LIVE increased by nearly 50 percent globally from November to December.”

Image: Microsoft

We’ve seen this Xbox Live hacking story play out over the last few weeks, and we’ve seen the same arguments thrown up: Hacked users insist they didn’t do anything wrong, and Microsoft insists that Xbox Live is completely secure. Commenters then either bash hacked players for falling victim to phishing attempts, or cast aspersions on Microsoft for covering up a potential security threat.

As of today, we’re starting to see a few more details as to what may actually be causing the problem. Jason Coutee is a network infrastructure manager who also happened to have his Xbox Live account stolen and looted for 8,000 MS Points. Coutee conducted his own investigation (as is becoming the norm) and found a gaping hole in the security measures found on Xbox.com.

Apparently, Xbox.com allows for an infinite amount of incorrect login attempts. No matter how many times you get a password wrong, you can continue trying as long as you’re willing to enter a Captcha code. This means hackers have the option of brute-forcing account passwords, since there’s no consequence for a series of incorrect entries.

There’s naturally no word from Microsoft regarding the issue, and it’s unclear if this is the primary cause of the recent account hacks. However, it’s still a considerable security concern for a website that contains sensitive personal data and credit card information.

We’ll keep you updated as the story develops – we’re expecting some sort of response from Microsoft soon.

Do you think endless password attempts represent a security threat?

[Edge]

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Here’s a good one straight from Twitter: Minecraft creator Mark ‘Notch’ Persson has gone on the record as supporting those who pirate his game – assuming they can’t scrounge the cash to purchase the game legitimately. Persson has supported piracy in the past, noting that he believes pirates to be future customers rather than a dangerous threat, but it’s nice to see him literally putting his money where his mouth is.

Responding to a fan on Twitter who asked for a free account due to his dire financial straits, Persson simply responded:

“Just pirate it. If you still like it when you can afford it in the future, buy it then. Also don’t forget to feel bad. ;)”

Piracy is the current battle of the moment in the world of games, and it wouldn’t be a stretch to call Persson’s opinion counter to traditional wisdom. But one has to wonder whether he’s onto something.

Do you think pirates are future customers, or simply thieves trying to have fun on someone else’s dime?

[GameRanx]

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Razer showed its ‘Project Fiona’ concept gaming tablet at CES 2012.
Photo: Ben Kuchera/Ars Technica

LAS VEGAS — Razer is a company that isn’t afraid to take risks. The upcoming Blade is a $2,800 piece of hardware that’s gambling on the idea that gamers are looking for an ultra-premium gaming laptop, and we’ll have some thoughts on our hands-on time with that hardware later. But we’re here to talk about the brand-new concept device it showed off at the Consumer Electronics Show this year, and it’s a doozy.

“Project Fiona” is a gaming PC that takes the tablet form factor and adds controls on either side of the screen. Combine that with internal components that will allow all modern PC games to run and a projected sub-$1,000 price point, and you have a system that is like nothing else we’ve seen, for better or worse.

“Multitouch screens are good for casual gaming, but it just doesn’t work well for first-person shooters or the existing PC games of today,” Razer CEO Min-Liang Tan told Ars. “What we’ve done is include a dual analog stick design on the sides of the 10 inch screen, with a full multitouch screen and accelerometer, and it’s running off an Intel Core i7 platform.”

He described this product as going in the other direction of tablets that are using an ARM architecture; Razer went with a very powerful CPU that would be able to run all existing PC titles without any need to port the games.

Right now the hardware is running a skinned version of Windows 7, so you can navigate through the games and tabs such as video and an Internet browser, but this is a concept device, and Razer is hoping to launch by the end of the year with Fiona running Windows 8. The only detail they’re willing to reveal about what’s under the hood is the CPU; the rest is being worked out. The games we saw during our demo were running off Steam, and there was also a tab for OnLive in the user interface. The audio on the hardware will also be THX certified, and will include force feedback in the controls.

Tan stresses that the unit may feature a touchscreen and you’ll also able to hook up a mouse and keyboard, but that’s not the focus. The idea is that you’ll be able to play your favorite PC games with the built-in controls just as you would a gamepad. The handheld nature of the hardware allows you to play against your friends face to face, without having to lug your gaming rig over to a central location. This is a gaming PC you can throw in your bag.

How Well Does It Work?

I was able to take the unit for a short test, playing Space Marine using the built-in controls. The game looked great on the screen, and ran at a very respectable framerate. The controls didn’t seem to be optimized to the hardware, so it was hard to tell what button did what in the game, and I was very aware of the fact that I was holding the entire unit in my hand as I controlled the game. It’s not hard to use, but it’s much heavier than an iPad, and the form factor definitely takes some getting used to. But using it also drove home the hardware’s utter uniqueness.

The device didn’t seem hot to the touch, even after a few minutes of playing, and I could feel the internal fans blowing a good amount of hot air through the top of the system. While my brief demo didn’t tire my arms, I could definitely see wanting to rest the unit on a table or my lap if I were playing for a long period of time.

“For all existing current-generation PC games, out of the box they’re going to run on Fiona,” Tan said, also stressing that developers could add support for the accelerometers or different interface ideas using the touchscreen. It’s a bold vision, and my short demo of the hardware was interesting, but it’s unclear whether this is a product that gamers are looking for. Razer gets our respect for trying something new in the world of PC gaming, but we’re going to reserve judgment until we see the final hardware.

The second-hand games market is booming. Companies like GameStop have made billions simply by buying used games and re-selling them at a markup. And while this strategy is great for the company engaged in the practice, it doesn’t do much for the people that developed the game. When you buy a used copy of Battlefield 3, that profit goes to the retailer – not to EA/DICE.

The issue has caused tension between developers and retailers, with game creators recently starting to include mechanisms like online passes to ensure they get a piece of the second-hand market. The battle has been raging for a while, but it looks like a solution may be on the horizon.

In an interview with MCV, some retailers indicated that they would be more than happy to share the profits from second-hand sales with developers, assuming those developers were willing to offer something up in return. Compensation mentioned included the removal of online passes or lower initial costs for brand new games, both of which make it a bit harder for retailers to churn a profit.

The retailer statements are somewhat hilarious when you think about them – for years, retailers have re-sold products with a devil-may-care attitude, and they’re only willing to negotiate now that their bottom line is hurting. The idea that developers would make some sort of conciliatory gesture towards used game retailers after years of being ignored is pretty out there, but perhaps developers would rather have some used profits than online pass sales.

Do you think developers are willing to negotiate now that retailers are worried about their profit potential?

[Edge]

One of the hardest games around today may be getting some new content to test your mettle. Dark Souls is a tough game by all accounts, but everyone loves the punishment when it comes form such an excellent game. Now, according to a source that spoke to EGM, From Software is putting the final touches on “some form of expanded content.” Whatever it is, it’s supposed to be out this quarter.

Another thing worth noting is that From Software trademarked “Yama No Mori” in Japan, which roughly translates to “Dark Forest” or “Forest of Darkness.” Sounds like a good fit for Dark Souls, no?

Namco Bandai, of course, has yet to comment on any of this.

I haven’t played it yet, but everyone says Dark Souls is a pretty complete masterpiece that doesn’t really need DLC. Would you guys welcome DLC for it?

PC hardware maker Razer is at it again with another out-of-the-box piece of gaming hardware. Announced at the Consumer Electronics Show in Las Vegas on Tuesday, “Project Fiona” is a hybrid of a tablet and a dual-analog gamepad, allowing PC gamers to play any gamepad-enabled title on the go.

Although Razer says that the current design is merely a “concept,” it also says that it fully intends to ship the “actual product” in the fourth quarter of 2012 and estimates that the price will come in under $1000.

Featuring an Intel Core i7 processor, Project Fiona looks like an iPad welded to a pair of Wiimotes. And that’s just about how it works: Besides the analog sticks and buttons on the controller handles, Fiona also has a multi-touch screen, force feedback and accelerometers for motion control.

At Penny Arcade Expo last August, Razer showed another odd-looking, hybrid gaming device, the Razer Blade. A $2800 gaming laptop with a small touchscreen embedded next to the keyboard, the Blade was supposed to be released in 2011 but was pushed back to this year. Razer is also showing it at CES.

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OnLive, the streaming video game service launched just a few years ago, is aggressively expanding its market options by developing innovative and interesting technologies that aren’t necessarily gaming-centric. Their latest creation, OnLive Desktop, promises to bring full Windows functionality to an iPad near you.

According to OnLive, the OnLive Desktop program allows you to run a complete version of Windows on your iPad, including native Windows applications such as Excel, PowerPoint and Word. The app boasts multi-touch support and everything else you’d expect from an iPad app, with the added bonus of Windows flexibility.

Apparently you can even play PC games, though the iPad’s not exactly a high-performance gaming machine. That being said, the opportunity to run some of your favorite Windows applications on your iPad certainly helps expand the flexibility of the device, regardless of its sheer tech specs.

Look for OnLive Desktop on the App Store this Thursday – it’s free to download. You’ll also earn yourself 2GB of free cloud storage. A “premium” OnLive Desktop is slated for release later, with more applications and more features. That app will land at $9.99.

Would you run Windows on your iPad?

[Edge]