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This Week in the Business: 'Xbox Live is Going to Lose Out'

Illustration for article titled This Week in the Business: Xbox Live is Going to Lose Out

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

QUOTE | "Xbox Live is going to lose out."—Tim Schafer, CEO of Double Fine, talking about what Microsoft should do to stem the migration of developers away from Xbox Live.

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QUOTE | "You belong in a subset of human beings in a circle of Hell."—Brenda Garno Braithwaite, COO of Loot Drop, talking about what she calls the "disgusting subject" of social and mobile game cloning.

QUOTE | "Wii U is going to have to adopt a Trojan Horse philosophy."—Veteran game journalist Chris Morris on what Nintendo should and shouldn't do with the Wii U to in order to be a hit.

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QUOTE | "We monetize revenge." -Will Harbin, CEO of Kixeye, talking about how Kixeye's hard-core social games generate much more money per daily active user than Zynga's games.

STAT | 1.4 petabytes – The amount of data in Zynga's entire database, more than 10x the data required to store every Netflix movie in HD, according to Zynga CTO Allan Leinwand.

QUOTE | "I know this sounds crazy, but this will look better and play better than consoles."—David Perry, CEO of Gaikai, talking about how their game-streaming technology performs.

QUOTE | "It was offensive. I'll cop to that. I regret that. But there was nothing about it that said there was a hatred or dislike or distrust of women."—Twisted Metal creator David Jaffe, explaining his remarks about Twisted Metal that sparked some controversy, especially among female gamers.

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QUOTE | "Major Japanese companies are canceling all projects intended for Vita."—Comments from unnamed source quoted by Kiyoshi Shin, former head of the Japanese IGDA, which Sony says is "largely exaggerated."

QUOTE | "You mean PsychoNotch? We're talking. He meant it."—Tim Schafer, CEO of Double Fine, talking about Minecraft creator Markuss 'Notch' Persson's offer to help fund a Psychonauts sequel.

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QUOTE | "Capcom is now at a crossroads."—David Radd, Senior Editor at IndustryGamers.com, on whether they can make new AAA games like Dragon's Dogma a hit or if they ought to put more into mobile games growth.

STAT | $50 million—Amount Sony will be spending on marketing PS Vita to consumers in a massive blowout on television, print, and signage.

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This Week in the Business courtesy of IndustryGamers.com


(Image from Shutterstock)

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DISCUSSION

iOS and Facebook games will never, NEVER compete with XBLA or PSN indy games. They wont. it will not happen. They may SAY they are in competition. The media might make comparisons to sales and such. But they will never truly compete.

It is the same reason the gameboy never competed with the Xbox or PS2. The games you play on mobile devices and social networking sites are not the same you play on a console or a PC.

Can you imaging trying to play Crysis, or Skyrim, Fall out, Left 4 dead, starcraft II, or the likes on an iPod or Android tablet device? Can you imaging trying to play them on a phone? Do you even want to see Crysis ported to Java and flash to play on facebook? And is there anyone that you know what would want to play farmville or mafia wars on a console?

Now steam is someone who could steal a lot of the indy developers. But in the grander scheme of things who cares? I hate to be the one to get flamed for this, but consoles are where the money is at. PC game sales accounted for 11 or 12% of the Video game market last year? so out of the 50 or so billion dollars in VG sales last year about 5 Billion is for PC's?

This is why VG makers focus on consoles because it is where the money is. Yeah an Indy developer can leave XBLA and honestly I dont see why they dont. But an Indy Developer putting out a game is more times than not for the purpose of developing a lucrative IP and getting bought up by a major producer. So they will end up back over at XBL anyways creating a XBLA port of their game with Major studio dollars funding it so they wont see it difficult as much.

I dont see how this is a bad thing. the PC can claim a niche that consoles will not have the ability to compete in and can put out quality PC indy titles that take advantage of their hardware. And the major developers have a pool to grab great people in and have them start making company backed titles.