The business wire believes that Nintendo will be unveiling the apparently rumored new Nintendo DS as well as new accessories to avoid a price drop.

The news comes in a year when Nintendo shared have dropped 39 percent amid fears that credit-related losses in the U.S. will affect demand for consumer electronics. Despite the stock drop, Daiwa Institute of Research believes that Nintendo will sell 26.5 million Wii consoles in the year ending March 31, compared with 7 million Xbox 360s. Sony believes it will sell 10 million PS3. Last year, Nintendo's Wii outsold the PS3 and Xbox 360 by two to one, according to Daiwa.

I've been saying since before E3 that Nintendo is relying more on accessories than platform prices and games to sell their Wii, and now it looks like analysts are starting to think that too. But what accessories could Bloomberg be referring to?

Please don't tell me they're talking about that pedometer. Whatever they turn out to be I'm sure plastic injection molding companies everywhere will rejoice.

Stay tuned this evening, about 10:30 p.m. Mountain Time for details from Nintendo's press conference in Japan.

Nintendo May Introduce New DS Player, Wii Accessories (Update1) [Bloomberg]

Game stocks regain ground in market rally [GameSpot]

Hardest hit? It's looking like Activision Blizzard in the States, which dropped nearly 14% today. GameSpot ran the numbers on the publishers trading on the NASDAQ and it's not looking pretty. Foreign stocks got a beating today too, with Ubisoft losing value to the tune of $17.92 over a period of a few hours. Ouch.

Careful out there, kids. Watch out for falling investors.

Market freefall drags down game stocks [GameSpot]

That's right, a game about the stock market crash of 1987, made in 1987. By current standards 500 points in a day is just a hiccup, but back in the early days it was enough to fuel a whole game. Wonder if there will be a game soon called "The Big Bailout", featuring real-time Henry Paulson supplication controls. Anyway, at least the current financial situation isn't very dire for computer-based games, sales being up 43% and all. Guess people may not want to play a game about the fall of the financial system during the fall of the financial system, but I wish they would. It's a great opportunity to teach and engage with a current problem that is definitely predicated by the playing of financial games in the late-80s, okay maybe not.

It's a fun look back at some not terribly scintillating-sounding titles (but leaping brokers? C'mon).

Financial Woes [How They Got Game]

For example, Aroon Tan, president of Games Exchange Alliance (GXA), suggested that Singapore—which has ambitions of becoming a regional games hub—promote itself as a gateway for foreign game developers to Asia. Based in Singapore, GXA aims to help game companies overcome commercialization hurdles and bring game titles to market across Asia.

Tan explained that setting up physical presence in several Asian countries is a challenge for North American and European game companies. However, Singapore's policies provide relatively lower barriers to entry to the country and the region, he told ZDNet Asia.

"Singapore offers lots of incentives, making it an attractive first market to enter the region," he said, adding that at the recent Game Developers Conference (GDC) in San Francisco, exhibitors he met were keen to do business in Asia.

The export market is still a giant hurdle — while there are South Korean and Chinese companies making quiet, but successful, inroads to Western markets, quality localization remains something that many companies haven't quite managed to do.

Asia must localize for global gamers [ZDNet Asia]

NPR argued yesterday that video games could serve as the mass opiate of this generation's great depression. In the 30s that role was served by nickle movies, but today's audience can perhaps get more bang for their buck, more distraction for their dollar with a game.

So which one will best help people to forget their worldly woes?

The Playstation 3 has theoretical future-proofing in the bag and includes a bunch of built in features that make using it for other purposes (without additional cost) a breeze and of course it has a Blu-ray player. Then again it's the most expensive, and blu-ray movies aren't exactly cheap either.

The Wii is the family friendliest of the bunch, the one most likely to attract reticent non-gamers to it's fold. Of course most of its games aren't as deep and it isn't the cheapest on the market anymore.

The Xbox 360 has the biggest selection of consoles, including the cheapest on the market. It also has the biggest selection of cheap downloadable titles and robust video on demand support, soon to be amplified by Netflix. But tapping into all of the 360's potential features means buying expensive add-ons, like the harddrive.

The arcade. Yes, the arcade. While they are almost non-existent in the U.S. and the likelihood that someone is going to suddenly invest in opening them up, especially now, is crazy, I think arcades are really the closest example of what happened in the 30s with movies. You don't need a television, you don't even need electricity, you just need a quarter and the time to play.

David Riley of the NPD Group says part of the reason video game sales are rising and movie ticket sales aren't is that a movie only lasts a couple of hours — it gives you less "bang for your buck. The difference, obviously, between a movie and a video game is the amount of time that you get," he says.

With gas prices rising and some of the nation's largest financial institutions in dire straits, more and more non-gamers are finding that video games are an excellent way to distract themselves from real-life issues. Anyone else find this slightly ironic? We're they just making fun of us for doing the same thing a couple years back?

It's alright, general public. We hold no grudges. Come, sit next to us, take up a game controller, and we'll ride this thing out together.

In Tough Economic Times, Video Games Console [NPR]

You're talking about the 150 titles every day, worth over $15. What we found was that the perception of our trade value was far different than the reality of our trade value. Far different. I'm sure you see that on the blogs, and so forth, you don't have to read very far. The reality is that there are a significant portion of our games that do actually represent a strong value.

So that was the basis of our campaign — to let people know that a large portion of our games are over $15 when you trade them in. We see that really as a very unique part of GameStop. We provide currency for the purchase of new games.

We really believe, and the reason that we're so passionate about our trade program, is that it drives new games. Last year, alone, we put over $700 million of trade credit back toward new games. I think that new games is about a $9 billion market. So if you stop and think about the currency that we're generating for the sale of new games, it's an absolutely amazing proposition.

It's long, but pretty interesting, even if you find yourself rolling your eyes somewhat frequently as I did. I generally go out of my way to avoid dedicated game store retail experiences (having gotten the 'Hey little lady, can we sell you something you don't need?' pitch more than a few times), and I've had some abysmal experiences at GameStop, so my laptop wound up with a mouthful of coffee on it when I read "It's the time that we get to spend and interact with the customer that really differentiates our experience from anyone else."

GameStop in 2008: The Mega-Interview [Gamasutra]

The Five Best Video Games to Play During a Stock Market Crash [Destructoid]

Rather than just a normal and a collectors edition, shouldn't we go further? The idea of being able to pay for gameplay advantage in an online game is hideous, but some Asian MMOs have done very well by charging players for cosmetic improvements. The idea of 'free game, charge people for hats' is much talked about in industry circles. There’s no reason why this can't be extended in a different way.

Take a game like Call of Duty 4. I loved it, and enjoyed it online and off. I'd have happily paid £50 rather than £30 for it. But some people ONLY wanted it for online play. Some of them might have used voice chat (I don't bother) and maybe some of them could only run it on low-resolution or detail. Why do we all pay the same price? Conversely I hate paying for the campaigns in Company of Heroes. I never play them, just skirmish and online.

I've found a lot of people to be suspicious of the microtransaction model in games, mostly for fear of poorer service and/or nickel and diming to death. I think the ability to pay for just what you want is nice — there are plenty of games floating around on my shelves with functionality I never use (or have used maybe once). It's an interesting article on potentials for more modular games in the future.

The Economy of Happiness [bit-tech.net via Rock, Paper, Shotgun]

This paper reviews what we know so far about gold farming, seeking to provide the first systematic analysis of the sub-sector. It assembles available data at the sectoral, enterprise and worker level. Five main analytical lenses are then applied. Economic analysis shows how exchange rate variations and scale economies do and do not impact gold farming; and the strong influence of information failure in the purchase of virtual items: known as "real-money trading". Analysis from the perspective of industrial sociology charts the commoditisation and globalisation of the sub-sector, while value chain models identify resource dependencies and power inequities. Enterprise analysis investigates enterprise entry, existence and progression, and outlines the competitive forces shaping the sub-sector's development; particularly threats. Developmental analysis investigates the impact of this sub-sector in macro and micro terms. Finally, there is a sociological analysis of the role played by perceptions and other social forces.

I've got it saved for future reading, and from what I've seen, it's definitely worth a look if you're interested in issues of RMT and gold farming. It is long (and academic!), but think about wading through if you're feeling inspired.

Current Analysis and Future Research Agenda on "Gold Farming" [IDPM Working papers via Terra Nova]

Prior to EA, Gray founded Heavy Iron, which was sold to THQ in 1999 and now serves as the primary studio creating the publisher's Pixar tie-in titles. Before that, Gray directed Parasite Eve for Square, and ran EA's software tools group and motion capture lab for the publisher during its original PlayStation era.

FerryGames says Gray will oversee not only its Secret Online franchise and upcoming expansion packs War of Heroes and Qin Warriors, but also its forthcoming casual products due summer 2009: the music, dance, catwalk and social network title codenamed Project Super, and massively online third person shooter codenamed X-Fire.

I'm personally very excited to see where the Chinese market is headed and how the gaming landscape is going to be changing over the next decade, both within China and on a more global scale. Little announcements like these aren't terribly exciting on a small level, but when rolled into the total sum of how the industry is doing, do portend some interesting things ...

FerryGames Gets EA's Steve Gray, Announces Line-Up [Gamasutra]

Those concerned with 'virtual worlds' — as opposed to 'games' — spend a lot of time contemplating the role of virtual worlds in a wider market; over at Terra Nova, Bruce Damer looks at the potential future of virtual worlds, which could be a lot bigger than most people imagine. Some potential answers to keep the industry growing? Piggybacking off platforms that are currently growing at a rapid clip, making sure virtual worlds are 'worth' something — perhaps some as of yet undiscovered little platform will be the key:

As we can see from the history of computing, it is often the case of “the small gobbling up the big, and everything else”. Trivially small, lightweight yet rapidly replicating platforms often grow up to become all-encompassing solutions. DOS grew up to become Windows and along the way the PC triumphed over the time-shared mainframe, minicomputer and workstation. Could it be that there is some small world platform out there that is destined to become the standard? Dick Gabriel of Sun Microsystems has written much wisdom and books on this phenomenon (http://www.dreamsongs.com/Books.html) in which he posits that one of several ways to create a virally spreading success is to hitch your wagon to something that is already growing. Does this mean that a small world embedded in Facebook or some other social network(s) is the answer?

It's an interesting article that pulls examples from other (formerly) 'new media'; the rise and sustainability of virtual worlds is an interesting problem. I suspect even the 'big ones' will be trucking along pretty quietly — not unlike a lot of the popular free to play MMOs from abroad.

Virtually Eternal: A Positive Pathway to a Healthy and Sustainable Virtual Worlds Industry? [Terra Nova]

With the rising costs of fuel and food and housing, it is more difficult to go out and buy a $399 console, and I think it's going to put pressure on the console manufacturers to reduce their prices.

Kotick is a regular ol' quote machine! Opinions? He's got 'em.
Game Console Prices May Be Cut [Reuters]

Wedbush Morgan analyst Michael Pachter says the strip mall swap meet is "as recession-resistant as anyone in retail can be", with NPD analyst Anita Frazier theorizing that folks will "hunker down" at home with a good, slightly scratched game to save money. Fret not, GameStop employees, you'll probably be employed by the end of the year.

GameStop's growth puts it in recession-resistant spot [Dallas News]

"We note that over the 1990-91 and 2001-02 recessionary periods, new consoles launched successfully and became significant drivers of growth for several years. As such, we believe it is unlikely that decreasing consumer confidence and economic growth would meaningfully impact video game sales in 2008."

Analyst: US Game Sales to Top $10 Billion in 2008 [Next Generation]

And all I can say is, that's a lot of cash to spend on pixel penises.

Second Life merchants estimated to rake-in over $1.3 million total every day [videogamesblogger]

The center will provide an exchange platform for assets and equity, and offer fund-raising, intermediary and pricing services for companies, said Cai Minyong, president of Shanghai United Assets and Equity Exchange (SUAEE).

More than 30 items ... were listed on the exchange with a combined price of about US$4 million.

Of course, the idea of intellectual property being traded in a country notorious for not really caring about IP rights in any sense of the word is a little ironic. Still, China is desperately trying to give its homegrown game and animation industries a boost in an attempt to compete with countries like Korea, Japan, Taiwan, et al. We'll see how it pans out.
Trading starts on animation, cartoon and game industry exchange [ChinaDaily via Xinhua]

After attending a conference on experimental economics in 2004 at which former lead EVE designer Dr. Kjartan Pierre Emilsson spoke, Guomundsson became fascinated by the way the economics of the game forced players to think in a more real-world business way. Three years later and here he is.

As the lead economist for EVE, my duties will include publishing economic information to the EVE-Online community. My duties will also be to coordinate research cooperation with academic institutions as the academic world has expressed quite an interest in doing research on this phenomenon

Move Over, Greenspan [EVE Insider Dev Blog]

Nintendo today just bumped up their consolidated financial projections for net sales by 66 billion. That's with a really big B. Now Nintendo expects to make 966 billion in net sales.

The company is pinning the 7 1/2 percent jump on DS, not Wii, software and hardware sales. I can't even imagine what their financial projections are going to look like next quarter. Or as Kim would say: BUY! Brian Crecente

Consolidated net sales are now expected to reach 966 billion yen as a result of the 66 billion yen increase from the financial forecast for the fiscal year ended March 31, 2007 set forth in the "Notice of Financial Forecast Modifications" dated January 10, 2007, primarily due to robust trends in sales of "Nintendo DS" software and hardware.

Consequently, consolidated operating income, consolidated income before income taxes and extraordinary items, and consolidated net income for the fiscal year ended March 31, 2007 are expected to exceed the previous forecasts as well. In addition, foreign exchange gain is expected to be approximately 20 billion yen (10 billion yen of foreign exchange loss in the previous forecast), mainly due to year-end exchange rate revaluation (the exchange rates: previous forecast: 1 dollar = 115 yen, 1 euro = 143 yen, and actual exchange rates: 1 dollar = 118.05, 1 euro = 157.33 yen) of assets and liabilities in foreign currencies without exchange contracts as of March 31, 2007.

Non-consolidated results are similarly affected.
Nintendo Co., Ltd. (the "Company") intends to accelerate its financial closing process to announce its March 2007 fiscal year results on April 26, 2007 at which time further information will be provided.
Regarding the year-end dividend to shareholders, the pre-established dividend payout policy (the 50% consolidated net income standard) is likely to be adopted due to foreign exchange gain in fiscal year ended March 31, 2007. The dividend amount will be announced as part of the March 2007 financial results announcement and will be proposed at the Annual General Meeting of Shareholders.

Said John Smedly, SOE president:

"The Station Exchange White Paper results demonstrate beyond a doubt that there is a significant demand for a secure, sanctioned online marketplace where players can enhance their gaming experience by spending real dollars."

EverQuest auction site turns over $1.8m in first year [GamesIndustry.biz]

Before I started to read this paper on MMO gambling, I balked a little at the article title "Internet Gambling and the MMORPG." I remember the joke-y bingo game some clever WoW players created, but thought little of it. Mark Methenitis, however, didn't. He authored the aforementioned paper and in addition to gambling, Melethenis takes a long look at the rise of virtual economies and their penetration into very real world wallets. It's a looooooong read, but one of the best I've come across.

Internet Gambling and the MMORPG [Mark Methenitis' Texas Tech Law Paper]

An NPR piece takes a look at how MMO economies are threatened by power leveling, gold buying and account purchasing. The writer infuses a little of his own situation when he asks if the time it's going to take him to make 90g for his level 40 mount is worth more or less than the amount of real life money he could spend to purchase the gold for the mount. However, the headline is a little misleading as you can't really "win" MMOs, you can clear what they have to offer, but there is always something to do, some obstacle implemented - and if not, one is probably coming a future patch.

Thanks Tim!

Paying Real Money to Win Online Games [NPR]

While the Nintendo may be cleaning up in Japan, Sony's PSP is the must-have portable in Korea. Since May, approx. 200,000 units have been sold, and the portable's software dominates sales. According to The Korea Times, PSP owners buy more games than other console users, including the PS2 and the computer. (People don't really "buy" computer games in Korea, but snag them via the Internet for free.) Baek Seung-dong, a manager of a major South Korean game distributor, said the PSP accounts for roughly 55 percent of total game sales each month.

Who's fueling this big PSP Korean kick? Why, the rich folks of course.
According to the article: "Because of its attractive appearance and relatively high price (330,000 won for a full set), PSP users are generally older and wealthier than average gamers." I sure hope Sony Korea capitalizes on this and releases a buncha games about the weather. Sure-fire-hit.

PSP a Hit [The Korea Times]

Equally interesting is the segment on the shift-changes of the farmers (who usually work in pairs on an account). As they near a shift change, the farmers try and dump their wares. At this point, the patient consumer can try and get their goods on the cheap (assuming the farmer hasn't hit their quota for the day). The net result of the piece is the argument that farmers do not inflate the market and instead that their sales of many items at bargain bin prices actually restricts inflation.

Secrets of Massively Multiplayer Farming [Game Guides Online]

The Japanese economy is being powered by dorks. The Nomura Research Institute estimate that the total otaku market is worth $4.11 billion US. The group broke down the subculture in each individual bracket and estimated their value. The institute defined "otaku" as someone that spends the majority of their money and time on their hobby.

"Animation" took to the largest share of money with fans spending an estimated $830 million US last year. Other sizable categories were "Idoru" at $610 mil, "Computer Assembly" at $360 mil and "Video Games" at $210 mil. The lowest ranking otaku hobby was "Trains," racking up $40 mil. a year. Oddly, "Fashion" came in at $130 mil. I'm not sure if the results refer to label whores or cosplayers, because most otaku I know dress like bums.

Full results after the jump.

Full Results in Japanese [NRI]

Call it a separation of the "have's" and "have-not's". At the TGS, the big boys have big booths, and the little guys are shoved off into the corner.

Without next gen pyrotechnics to draw visitors, small-time vendors must bring out a monkey hat dude to give away flower bouquets. If only they'd put the same innovation into their games.

That's some wicked gloss Sony's put on these silver, grey and black PS3's. Not nearly as wicked as that monster power or that $500 price tag.

So, let's see... Four consoles at five hundred bucks a pop. You do the math.

PS3 Game Prices

With regards to the WoW story we ran yesterday, Kotakuite Jesse pointed out that buying gold, characters or even sex violates Blizzards terms of service and could result in getting your account banned.

There are several WOW sites that have banded together under the "No Gold" banner who won't take advertisements from gold re-sellers both because it violates TOS, and to protest the "gold sweatshops" that are cropping up like crazy in China and other countries where kids are paid pennies to farm gold all day.

There you have it folks. Don't send your real money to Chinese "gold sweatshops" in order to get yer fake money. You'll be promoting slave labor, exploiting children and helping capitalistic pigs buy new Armani suits. Instead, send your real money directly to Blizzard's HQ (or Kotaku).

Gold for Sale

Add selling gold to the laundry list of ways folks are cashing in on WoW. Claiming to be a professional World of Warcraft retail website, TooWay.com says it can get you as much gold as you need within four hours. This website even has a Pizza Hut like guarantee, saying that if your gold isn't there in four hours, you'll get a 10 percent discount. Don't forget, you'll need to give them real money that you can use to buy real things in the real world.

Get Yer Gold Here [Company Site]

IT Media polled readers to see how many games they'd bought in the last three months. A whopping 66 percent said that they had only purchased three titles. The other percentages broke down as such:

Could this apparent decline be due to a lack of pocket money from parents or, more likely, a lack of must-have games at the moment? Or has everyone already started saving for a PS3?

Japanese Gamer Poll [IT Media]

The San Francisco Chronicle has a surprisingly in-depth, and perhaps a tad dry, article on the economies of virtual worlds. The piece talks about the possibility of using massively multiplayer online games as a "social science petri dish," and includes quotes from Terra Novaites Edward Castronova and Dimitri Williams. (One's an economist, the other's a communications professor.)

Economists to explore world of online games [SF Gate]