This Week In The Business: Give In To Your Hate

Illustration for article titled This Week In The Business: Give In To Your Hate

QUOTE | “We’ve seen this in the franchise before - the reveal trailer for Black Ops II, which took the franchise into the future for the first time had the most dislikes of any reveal trailer we had ever made at that time, and that of course went on to become our most successful game ever.” - Activision Publishing CEO Eric Hirshberg explains why a wave of hostility aimed at Call of Duty: Infinite Warfare’s reveal trailer is no cause for concern.


Elsewhere in the business of gaming this week...

STAT | 7% - The amount of Activision Blizzard’s non-GAAP net revenue in the first quarter of 2016 that came from retail channels.


STAT | $100 million - The projected development cost of Gears of War 4 if Epic Games had continued making the series, according to CEO Tim Sweeney. The original game cost $12 million to develop.

QUOTE | “On stage Phil Spencer said that Xbox is an open platform, which surprises me because you have to get your game concept approved before you can start developing it and then you have to get every update approved and Microsoft has absolute control.” - Sweeney again, this time saying that Microsoft is in propaganda mode when it comes to the Universal Windows Platform initiative.

QUOTE | “In the past it was very Microsoft-ish to lock down everything, to make sure they had full control. But Satya Nadella is saying, ‘put all of our apps on all systems.’ I think people should think about that, because if they did [what Sweeney suggests], in my personal opinion it will really backfire big time.” - CD Projekt CEO Marcin Iwinski comes to Microsoft’s defense on the Universal Windows Platform initiative.

QUOTE | “When Wii U was launched, the yen was very strong. I am assuming that situation will not repeat itself. Selling at a loss at launch would not support the business, so we are keeping that mind in developing NX.” - Nintendo president Tatsumi Kimishima, implying the company will at least break even on every NX unit sold.


QUOTE | “One thing that VR people will be able to bank on, if not games, there’s a lot of enterprise applications and engineering and NASA stuff. So I think there will be opportunities. I’m just not sure it’s a consumer opportunity.” - Indie biz marketing contractor Dan Adelman, explaining why he’s bearish on VR as a mass market device.

QUOTE | “So if the experience is spend a lot of money, look goofy, have 15 cool moments and not have anything after that it’s going to be a cool hot fad and things won’t go anywhere.” - Former chief Xbox officer Robbie Bach predicts that it will be several years before VR gets a foothold with anyone but hardcore gamers.


QUOTE | “Venture capital for gaming startups has dried up, leaving a handful of larger operating companies including Glu as increasingly the only capital providers. As a result of this phenomenon, and we’ve been cautious about consummating large M&A opportunities in the short-term, as we believe the prices may come down further.” - Glu CEO Niccolo de Masi explains why his company hasn’t been buying up rivals. He might also not want to bring on additional headcount considering Glu’s recent campaign of cost-cutting layoffs.

QUOTE | “It’s more about operating leverage than it is about layoffs or risks or anything like that. It’s how you run the business and the yields you get from the resources and the talent you have. And I think by any measure, Zynga has not delivered against that in the past.” - Recently appointed Zynga CEO Frank Gibeau throws past Zynga under the bus to convince people present Zynga has a bright future.


QUOTE | “There is a risk that the more core Clash Royale gameplay will provide an exit ramp for Clash of Clans players out of the Supercell ecosystem.” - EEDAR VP of Insights Patrick Walker suggests that Clash Royale’s initial success could work against Supercell in the long-term.

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The thing I find interesting about the mobile sector, you have to constantly come up with some new(or copy) that stands so far the fuck out and explodes into popularity to gain any traffic and profits.

Like no one gives a shit if you made Farmville or Candy Crush or Angry Birds. Your name as a developer means very little to the mobile market. It means NOTHING on the app store. The people that play and spend money on those kinds of games have a totally different mind set from those that regularly buy games from a seasoned developer. Like Rockstar or CDPR.

Also I wonder why does it have to be that way? Instead of the race for the almighty dollar and the race to the bottom, can’t they instill a fanbase and grow over time with people like other well known developers do? I know I said people don’t give a shit but were they ever shown things from a different angle?

The only thing I can guess at is just the sheer volume of people they’re trying to hit to make as much money as possible in as little time possible prevents that kind of thing. Such a huge disconnect between 2 markets within the same industry.