This Week in the Business: 'Games like Call of Duty Need New Console Hardware'

Illustration for article titled This Week in the Business: 'Games like Call of Duty Need New Console Hardware'

What's happened in the business of video games this past week ...

QUOTE | "Games like Call of Duty need new console hardware."—RW Baird analyst Colin Sebastian on one of the reasons that Call of Duty: Black Ops II may not set any new sales records for Activision this holiday.

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QUOTE | "The hardcore gamer now is the niche market."—Stew Kosoy, financier at Swiss firm Digital Capital, talking about the game industry and what they're looking to finance.

QUOTE | "They're unique in that they have a 100 percent hit rate."—Shanti Bergel, SVP of Business Development for Gree International, talking about why Gree acquired Funzio this week for $210 million.

STAT | 436.8%—Gain in buzz on social networks for Call of Duty after Call of Duty: Black Ops II was announced, according to Nielsen Media tracking.

QUOTE | "Kids are going to destroy the internet."—Fight My Monster chairman Dylan Collins talking about the tricky under-13 market and how their expectations for games are very different.

QUOTE | "We could end up with an industry ... acting blindly in short-term self-interest."—Veteran journalist Rob Fahey, talking about the danger of publishers abusing buyers of digital products.

STAT | 5 million—The number of daily users of Draw Something that Zynga has lost in the past month, dropping from 15 million to 10 million according to AppData.

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QUOTE | "We embrace the law of unintended consequences."—Jon Lander, EVE Online's senior producer, talking about how CCP dealt with a very tumultuous year for the MMO, including a massive fan revolt.

QUOTE | "We are concerned that the company's accelerated release strategy is simply resulting in more churn of existing users."—Cowen and Company analyst Doug Creutz, talking about Zynga's loss of share in the social gaming market.

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QUOTE | "Some people say paid is dead and that's wrong."—Phil Larsen, chief marketing officer for Halfbrick Studios, talking about their success with Fruit Ninja and other mobile games.

STAT | 500,000 –Number of downloads for the free version of Pocket Ninjas in just 5 days, according to developer Cocky Culture.

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QUOTE | "It's odd to see it in a third-person game, and especially odd because it's not a shooter."—Michael Pachter, Wedbush Securities analyst, talking about God of War: Ascension and its new multiplayer mode.

STAT | 292 million—Monthly active users of Zynga games, according to Zynga's report on their first quarter 2012, with 182 million monthly unique users.

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QUOTE | "Services like this are going to become a necessity for real franchises."—Jamie Berger, VP of Digital at Activision, talking about the growth of Call of Duty Elite and its impact on the game industry.

QUOTE | "Facebook is nothing more than a distribution platform for other businesses like Zynga."—Dave Anderson, former Activision biz dev veteran, talking about business deals and the rise of social/mobile games.

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This Week in the Business courtesy of GamesIndustry International

(Image from Shutterstock)

DISCUSSION

ShadowflareXIII
ShadowflareXIII

"The hardcore gamer now is the niche market."

Yep, and this is what will be the core reason of the next gaming crash...too many companies are now trying to monetize to a fault and solely appease the fickle casual audience. You can only hold their attention so long before they get bored and move on.

The Wii found this out, Zynga is learning the hard way, and the apple app store is a treasure trove of primarily shitware and growing fast. Meanwhile, Microsoft and Sony both think its a great idea to kill backwards compat and hardcopies for everything with always online digital sales.

Whatever though...