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