From today�s Schwab morning briefing������
�Nintendo Co. (NTDOY $36), the world's biggest maker of handheld game players, surged after the gaming giant said annual profit and revenue rose more than it had estimated. Nintendo attributed the better-than-expected results to strength in its DS portable game system and software sales as well as a favorable foreign-exchange gain. Revenues jumped to 966 billion yen ($8.1 billion, trouncing its January forecast of 900 billion yen.�
Come on EA lets crank out those titles for the DS format, the Amazon top 25 reveals Nintendo�s dominance.
Same wire report from Next Generation�.
Also from NG on in-game advertising, this growth projection far exceeds what figures were being mentioned or calibrated in the past.
�A new report forecasts that global in-game advertising will rise by almost 23% a year for the next five years, reaching a figure of $1.94 billion by 2011.�
Let�s hope its (actual gameplay) tastefully done.
�Double Fusion will offer marketers the opportunity to reach players of THQ's leading properties by incorporating their brands into actual gameplay. The games will also feature a rich array of dynamic advertising placements, allowing advertisers to reach millions of gamers through real-time media buys. Double Fusion also offers consumer targeting, measurability, and flexibility in delivering advertising content.�
"Would the price be cheaper for a game with ads or cheaper for a game without, tough call? The problem is if a company pays a huge advertising fee for the placement of ads in a game, they certainly won�t want the consumer to have the ability to select a format."
A premium would have to be paid for the game with no ads. I believe the advertising solution would be something along the lines of my previous post: "This would require the advertising contracts to incorporate some sort of minimum agreed upon # of games to be sold "with" ads. There would then be a prorated rebate paid to the advertisers if that minimum # of games "with ads" were not sold."
I only brought this up as a reply to post about hating ads in games. I actually don't think that randomly placing products in games is distracting at all. I'm just saying that a no-ad version could be a solution "IF" enough gamers complained about it (I don't see that happening).
Well, now we can add The9 to ERTS investments. Mixed feelings for me. I like the idea that The9 in China represents but it IS still CHINA (government risk) after all. Overall I think it's a positive.
Good Investing to all!!
I wonder about the marketing (headache) dynamics if each game released came in two formats (with ads or without) as far as the retailer trying to provide enough shelf space. The other obvious concern would be the increase in the development cost for two different formats. I guess in 10 or 15 years everything could be downloaded, maybe that�s the solution. Would the price be cheaper for a game with ads or cheaper for a game without, tough call? The problem is if a company pays a huge advertising fee for the placement of ads in a game, they certainly won�t want the consumer to have the ability to select a format.
I thought this article (UPS) was interesting and made me wonder about counterfeit or piracy problems in these countries that are expected to continue their boom economically. Can a video game be copied? What preventive safeguards are already in place? Does anyone (techies) have any ideas?
�The survey of 1,200 leaders of small- and mid-sized business enterprises (SME) in Asia also found wide agreement that China will surpass the United States as the world's largest consumer economy in 10 years or less.�
"i hate in game adds and i refuse to buy any game that uses them."
Then you better get used to a greatly reduced selection because that's where we're going. Don't worry though; there will always be "some" games that ads will not be appropriate in.
The more I think about it, the VG industry might actually be able to offer people an option. For example, would you be willing to pay $25-$35 extra for a game WITHOUT ads?? It would I'd be interesting to see if people wanted that option.
This would require the advertising contracts to incorporate some sort of minimum agreed upon # of games to be sold "with" ads. There would then be a prorated rebate paid to the advertisers if that minimum # of games "with ads" were not sold. It would be a way to satisfy everyone.
I actually believe that most people would opt for paying less for a game "with" ads. What do you think stockmarket_savant?
Good Investing to all!!
�The average of that 1-3B number (2B) is almost exactly what that report calls for. I'll bet their number gets closer to the 3B figure over the next 2 yrs.�
Good call, I went back into my VG files and retrieved some data/year information from the experts (Big Boys) and stand corrected, I forgot the projection was for $3 billion as soon as 2011. The added rev growth from advertising as well as mobile will be a nice addition of $$$$$.
"Gaming has become a mass-market entertainment industry on a par with TV, movies and music," says Michael Wolf, principal analyst of broadband and multimedia research. "segment such as video game advertising, set to become a market worth close to $3 billion by 2011, will result in the further maturing of this industry. The ability to play music and media from powerful consoles and handhelds will drive overall industry growth as consumers begin to view gaming devices as one-stop-shop entertainment platforms." by Bryan Dawson
�Eibeler, who was removed as head of the company (Take-Two) by a group of opposing shareholders last week, will receive $2.475 million plus stock options granted prior to his termination date.�
Wow, you got to love that $800 car allowance that was include, I would�ve insisted on $875.00 though.
"..in-game advertising, this growth projection far exceeds what figures were being mentioned or calibrated in the past."
Not true. Here's an excerpt from a Sep 06' post that calls for that amount of ad revenue:
"As advertisers, even if you called it a wash on eyeball minutes you basically have the choice of paying 9b (T.V.) or 1-3b (VG�s)."
The average of that 1-3B number (2B) is almost exactly what that report calls for. I'll bet their number gets closer to the 3B figure over the next 2 yrs. Here's the complete post that the excerpt came from. It's a bit of a hard read (with <br>'s and no paragraph separation) because it didn't past into Yahoo's message board's format correctly:
Hey, who made that post? Oh that's right, it was me... :-)
Good Investing to all!!!