Posted by Dmitriy (Thank you Dmitriy!) - EA has partnered with IMG

EA announced a multi-year strategic partnership with IMG, a licensing, marketing, and media company. IMG plans to extend the EA sports brand into innovative businesses on a global scale. IMG plans to use the license from EA to create a variety of new products and apparel with EA sports on it. Expect to see EA on footballs, hats, and of course… on athletic supporters.

http://www.ea.com/article.jsp?id=easimgfeb1408

Thank God for the EU? Microsoft gets nailed.

At least one government has the wherewithal to stand up to the monopolistic beast that was Microsoft. Unfortunately it may be a little too much and certainly too late. The damage has largely been done, but this decision should loosen what remains of Microsoft's stranglehold on creativity and computing.

http://news.yahoo.com/s/ap/20080227/ap_on_bi_ge/eu_microsoft

Dmitriy raises an interesting question - when does consolidation in gaming go too far?

Thank you Dmitriy for bringing this article to our attention. Basically the article asks if EA's takeover bid of Take-Two, which is likely to go ahead with or without Take-Two's approval, is a step too far. Is this takeover part of a wider trend towards industry consolidation that might spell the end for video gaming creativity? Or will it strengthen the ability of video games to go further?

Undoubtedly the creation of a duopoly could be bad for creativity and for consumers in general, assuming that such a duopoly (i.e. EA and Activision) is able to inflate barriers to entry so as to prevent competition. Yet it is hard to see how EA and Activision would be able to create sustainable barriers to entry - unlike Microsoft which was able to dominate the PC market for so long by owning the operating software. Video games can still be created by anyone. The consolidation that is occurring gives EA and Activision an advantage in the creation and distribution of mulitmillion dollar hits such as Halo 3. This is in fact a reflection of increasing economies of scale, and means that games should get better. If the investment of millions doesn't lead to equivalent sales, there is nothing EA and Activision can do to force the market to repay it. So we should not worry about consolidation following its natural course, so long as this does not create significant barriers to entry.

The article is here:

http://www.news.com/8301-13772_3-9878724-52.html?part=rss&subj=news&tag=2547-1_3-0-5

Will Google and YouTube do to TV what the Internet has done to Newspapers?

The following article asks an interesting question - does the marriage of Google and YouTube (and similar pairings to come) spell the slow demise of TV? We are in an age of new media pushing out the old, but still have some way to go before this will happen. The networks have time to get it together before we can all easily and seamlessly watch video downloads on our TVs. For most people, watching TV remains a couch potato sport. TV is about switching off the brain and relaxing, not fiddling with a small computer screen to get the latest low-resolution 2 minute download. The Internet will compete with TV once it becomes easily and cheaply navigable by remote control. Nonetheless this will happen. The marriage of Internet and video should also open the competitive field in TV to a lot more players than have been supportable in the past.

http://online.wsj.com/public/article/SB120389566416389289.html

A related article discusses how ABC plans to beat off the DVR. DVRs are unpopular with cable providers because they are expensive to distribute and maintain:

http://www.nytimes.com/2008/02/25/business/media/25abc.html

Microsoft's attempt to buy Yahoo! - a lucky escape?

Yahoo! thinks that Microsoft's $40bn offer undervalues the company, but it's hard to see how Yahoo! has any better options. In fact the $40bn Microsoft is offering Yahoo! would probably go a lot further if it were invested elsewhere.

http://www.nypost.com/seven/02242008/business/microsoft_holders__yahoo__40b_a_joke_99003.htm

Indeed, if Microsoft succeeds in obtaining Yahoo! for such a high figure, it might become known as the next AOL-Time Warner deal.

Courtney's Post - Is Technological Growth Exponential?

Futurologist Ray Kurzweil gave a keynote at GDC this week. Did anyone who went see his speech? If his predictions are at all accurate and technological growth is indeed exponential (opinions?), we’ll soon need to start working on a version of GamerLog that’s implantable into our nervous systems!

http://www.gamedaily.com/articles/news/gdc-kurzweil-talks-of-the-future-and-gaming/?biz=1

Tax Time tip - get 2.63% back on your tax payment

Here's a fiddle I saw posted on the net. A credit card being promoted on the net gives 5% cash back for the first three months while the IRS only charges a 2.5% fee for using a credit card. Thus you can pocket the difference, if you have to pay taxes:
http://www.bankaholic.com/2008/get-263-cash-back-on-taxes/

I'd make a bet these websites take off ... unless the Feds find a loophole

Jason recently forwarded us all an article from the Wall Street Journal that discusses some new websites where gamers can match up with other gamers and bet real money. The combination of socializing with gambling should be potent in attracting hordes of gamers, and I'm happy to bet that some of these sites will be extraordinarily successful. Yet if they are too successful, they will doubtless attract negative legislative action to shut down their gambling facilities. If that point is reached, the easy conversion might be to make them into social networking sites for gamers ... aka Gamer Log?

Getting all Licked up ... (article donated by Regan)

Ever wanted to sample taste an ad? The technology is here and the big exchange of saliva can now begin! Yes, this is definitely not an ad to share with anyone.

http://online.wsj.com/article/SB120287036186164289.html?mod=googlenews_wsj

Something fun and free to download this weekend - Guitar Hero: Aerosmith

If you have Xbox Live or the PS Network you can get a free copy of Guitar Hero: Aerosmith's song 'Dream On' this weekend. This is also easily their best song ...

http://www.gamedaily.com/articles/news/aerosmith-rocks-guitar-hero/?biz=1

Will all new media be paid for by advertising? Video games heading for 'free' ...

Video games are increasingly going the way of being ad supported. The obvious and established examples of ad supported video games are mobile and casual games. Gamers are widely supportive of ads in these games. In both Waves 3 & 4 of GaMeasure, 85% of respondents indicated a preference for casual games that were provided free with advertising over having to pay for casual games without ads. This shows the importance of presenting respondents with real world trade-offs, as when the same respondents were asked about in-game advertising over a third were against them.

The obvious question from the video game industry perspective is, how far can the ad supported model go? Many console games are already ad supported, especially sports games, even though they cost $50 and up to buy. Now these core games are testing the water of dropping the hefty price tag and seeing if ads can support them. EA Dice will release Battlefield Heroes for free later this year. Apparently the game will not have any in-game ads, only around-game ads. EA Dice will place ads on the website promoting the game and on the game's menu, but not in the game itself. Interestingly, Battlefield Heroes will also veer towards a more 'cartoony' style than other Battlefield games. No doubt this is a bow towards the cartoony style of many casual games and an attempt to appeal to casual gamers.

http://www.gamedaily.com/articles/features/ad-watch-ad-sponsored-games-enter-battlefield/71374/?biz=1

Some questions emerge: 1) how many video games can advertising support?; and more generally 2) how much new media can advertising support? The current business model of the average website is to be ad supported, but with an endless possibility of websites (this blog for instance), the competition for advertising is potentially equally endless. Only a few very popular websites can make much money. The question is how to generate sufficient traffic. Probably core games will continue to be largely supported by consumer purchase. Yet increasing competition could force publishers to find a balance between lower consumer prices and more advertising. Only time will tell?

Another Death Knell for HD DVD - and a Hollow Victory for Blu-Ray

The Warner Brothers decision has fed on through the line - Netflix will no longer buy HD DVDs. We should expect all other rental shops (online and offline) to follow suit.

http://www.homemediamagazine.com/index.cfm?sec_id=2&newsid=12070

Yet does it really matter? This is not the same format war as VHS and Beta. The quality increase (both in terms of picture quality, new capabilities, and convenience) simply isn't big enough from DVD to Blu-Ray or HD DVD. It is unlikely that Blu-Ray will become the new DVD. It's future appears to be more like the laser disc.

In fact the GaMeasure data strongly suggests that HD DVD was killing Blu-Ray, even up until the last quarter (Wave 4). In Wave 3 about 10% of Americans aged 12-65 said they owned an HD DVD, while only 3.8% said they owned a Blu-Ray. For likelihood to purchase in the next 6 months, 7.3% said they would probably or definitely buy an HD DVD, while only 5.5% said they would for a Blu-Ray. In Wave 4 we see that HD DVD was becoming far more successful than Blu-Ray, increasing to 12% of Americans owning one, while Blu-Ray stood still at 4%. Undoubtedly this was due to HD DVD's successful tactic of lowering prices to near DVD equivalent in the run up to Christmas. Despite the Wave 4 data being collected AFTER Warner Brothers announcement, 7% of Americans still said they would definitely or probably buy an HD DVD, beating the 6% plumping for Blu-Ray. An NPD study finds similar results.

http://www.homemediamagazine.com/index.cfm?sec_id=2&newsid=12074

Blu-Ray's victory is a hollow one. What's the real lesson? You need to provide consumers with a large and significant advantage to prompt widespread change from one format to another - witness the failure of the minidisc and the laser disc, and the clear success of the DVD. Blu-Ray and HD DVD could probably only have become the dominant format by selling at the same price or lower than DVD, negating the whole reason for doing it in the first place. In fact Blu-Ray's 'victory' will discourage any further price reductions, sealing its slow demise.

The format to replace the DVD will most likely be the digital download - cheaper, easier, and more convenient.

WGA to include Video Game Script Award - contributed by Dmitriy

While driving to work, I heard on NPR that the Writer’s Guild Awards will include a category for Video Game Writing (Script or Story). The spokesman said that the story will drive a lot of video game sales with the current consoles now fighting for titles rather than performance. Those that include a good story will probably sell much better.

The award is a landmark to draw more attention to Video Game writers. Writing in video games brings the graphics and the action into context, whether fictional or attempting to simulate reality.

From personal experience, a lot of that writing is way better than scripts in 3/4 of Hollywood movies. I’m not going to even comment on TV. Some of the role playing titles, though fictional, are actually quite complicated and very developed. You find yourself cracking open the good ole dictionary once in a while as well.

Related article:

http://www.gamedaily.com/articles/features/feature-video-game-writers-seek-recognition/71369/?biz=1

Out with the Old Media and in with the New Media?

The death of the newspaper has been a long-heralded event, but until recently it was much more heralded than actually seen. In fact many newspapers were bringing in a 20% profit margin until recently, but the problem for their stocks has been the apparent lack of potential for future growth. It now looks like the death-knell is beginning to fall, and to fall rapidly in terms of ad revenues. This article is an interesting look at the situation:

http://www.nytimes.com/2008/02/07/business/media/07paper.html?_r=1&oref=slogin

We are still in the middle of a huge transition in media - from the old (newspapers, TV, radio) to the new. One question is - why has it taken so long? After all the Internet has been going strong for years.

The shifting situation is reflected in two further articles. The first is a memo to the Wall Street Journal staff, and the second is far more interesting if probably erroneous look at the interaction between Hollywood and new media. Are YouTube and reality TV a real threat to Hollywood? I doubt it, but then again a majority voted for Bush the second time around ... so stupid can sell a lot:

http://online.wsj.com/public/article/SB120234843822049385.html

http://www.vanityfair.com/culture/features/2008/03/wolff200803

Writers Strike looks to be over very soon ...

As the Writers' Strike has worn on, it has become increasingly important for the Writers' Guild to save face. It looks like a win-win deal has been struck that may be announced by next week: Writers will get paid for Internet content and Producers will be able to get back to producing.
http://www.nytimes.com/2008/02/02/business/media/02cnd-writers.html?_r=1&oref=slogin

http://www.nypost.com/seven/02062008/photos/biz044.jpg

http://www.nypost.com/seven/02062008/business/strike_breakthrough_553997.htm