Year in Review - Q4
Sony bet big on digital delivery with the PSP Go.
The last quarter of 2009 began with one of the industry's first steps toward a new business model. Sony launched its PSP Go on October 1, the first major console or handheld released with a strict focus on digital distribution. A download-only system is no good without games to download for it, so Sony marked the system's launch by adding more than 100 titles to the PlayStation Store. That massive launch lineup included the first PSP Minis (Tetris, Sudoku), previously released retail games (God of War: Chains of Olympus, Daxter), exclusive downloadable titles (PixelJunk Monsters Deluxe, Thexder Neo), and original PlayStation efforts (Jumping Flash! 2, Nuclear Strike).
While the PSP Go technically launched just inside the industry tracking NPD Group's September sales window, it didn't register much on the monthly charts. The PSP was largely overlooked, coming in a distant fifth behind the three major consoles and Nintendo's DS.
Call of Duty: Modern Warfare 2 terrorized sales charts in November, minting $550 million in five days.
Far overshadowing that news was the fact that the US game industry broke its six-month-long sales slump, posting software sales gains of 5 percent and overall revenue growth of 1 percent. That slim gain could be attributed primarily to Microsoft's launch of Halo 3: ODST for the Xbox 360, and the 1.52 million copies it sold during the month. The launch of The Beatles: Rock Band also helped out, as the Fab Four-dedicated edition of Harmonix's rhythm game sold 595,000 copies across platforms for the month, beating out Activision's Guitar Hero 5, which debuted with 499,000 copies sold.
Notably, there was little of note regarding Nintendo's systems. While "evergreen" titles like Wii Sports Resort took up long-term residence in the NPD charts and the Wii and DS floated near the top of the hardware side of things, Nintendo acknowledged that the bloom was off the rose. Nintendo president Satoru Iwata told investors in Japan that the Wii "has stalled," with a weak software lineup sapping the system of the momentum it had held since launching in late 2006.
"The mood of the market got colder than expected, and there was a difference in expectations," Iwata said. "Now, we are preparing for next year and thinking about what to do the year after next."
The day before Iwata's remarks, Nintendo announced one of its initiatives for next year: the international launch of the DSi XL. Released in Japan November 21 as the DSi LL, the XL is a larger version of the standard DSi with a bigger screen and a pen-size stylus.
The DSi XL will offer much bigger screens and a larger stylus for the nearsighted and arthritic.
One of the biggest stories of the quarter was the launch of Infinity Ward's much-anticipated shooter Call of Duty: Modern Warfare 2. Before the game launched and racked up an eyebrow-raising $550 million in sales over five days, it garnered interest for an entirely different reason. A video of the game's single-player campaign leaked online, showing a controversial airport level where players went undercover in a terrorist group and gunned down civilians.
While Modern Warfare 2 was tearing up the charts, not all the news about game sales was good. Though the industry had eked out a slump-busting September, the relief was short-lived. October's US game sales were down 19 percent overall from October 2008, with hardware plummeting 23 percent and software slipping 18 percent. Despite a 6-million-unit launch by Modern Warfare 2, November sales sank as well, falling 7.6 percent.
Monthly figures like that have been taking their toll on the industry for most of 2009, and one of the clearest examples of that arrived in November, when Electronic Arts announced that it was laying off 1,500 employees. Among the casualties was most of Pandemic Studios, creator of Mercenaries 2 and The Saboteur. Despite that, the Pandemic name will live on. A "core team" of Pandemic developers moved over to EA's Los Angeles studio and is at work on a new game in the Mercenaries series called Mercs Inc.
EA ended 2009 on a dark note, announcing that 17 percent of its staff would be pink-slipped.
EA wasn't the only publisher ending the year on hard times. After Take-Two Interactive gave investors a grim outlook on the next year and announced delays for Max Payne 3 and one unrevealed AAA title, the company's stock shed nearly one-third of its value overnight.
While 2009 was a difficult year for the industry, there are reasons to be hopeful for 2010. For instance, one of 2009's biggest banes, the steady parade of delays on anticipated blockbusters, has left gamers with a completely stacked calendar of top-tier releases to look forward to. January alone has Darksiders, Bayonetta, Army of Two: The 40th Day, Dark Void, MAG, No More Heroes 2: Desperate Struggle, Capcom vs. Tatsunoko, and Mass Effect 2. And that lineup should be followed in February and March by God of War III, Splinter Cell: Conviction, Final Fantasy XIII, Dante's Inferno, BioShock 2, White Knight Chronicles, Lost Planet 2, Supreme Commander 2, Sin and Punishment 2, Command & Conquer 4: Tiberian Twilight, Aliens vs. Predator, Blur, Red Steel 2, Battlefield: Bad Company 2, and more.
--Brendan SinclairBest of 2009: Q4 Timeline
October:
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PSP Go launch adds 100+ games to PSN
New handheld's debut accompanied by first PSP Minis, debuts of PixelJunk Monsters, Thexder Neo, sales on Puzzle Quest, Prinny, and more; full list and price breakdown inside.
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The Wii has stalled - Iwata
Nintendo president says top-selling console has hit a wall due to dearth of "high demand" software, "preparing for next year."
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Sept. US game sales nearly flat, PS3 beats Wii, 360 - NPD
$1.28 billion haul, 1% growth ends months of double-digit decline; Sony's console sells 491,000 systems; Halo 3: ODST sells 1.52 million units; analyst split on implications.
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DSi XL hits US & EU Q1 2010, DS sales top 113 million
Fourth DS hardware revision will sport 4.2-inch screens and larger stylus, cost ¥20,000 ($220.50) in Japan; 11.7 million units of DS hardware sold in last six months.
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RUMOR: Modern Warfare 2 massacre sequence confirmed, skippable
Activision authenticates leaked video as showing optional sequence where gamers can participate in slaughter of unarmed civilians in an airport.
November:
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EA cutting 1,500 jobs, over 'a dozen' games canceled
Publisher slashes staff by 17 percent to save $100 million annually, to focus on higher-margin titles; reductions at Skate, Madden, and Dante's Inferno devs; over one-third Mythic reportedly pink-slipped.
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World of Warcraft shutting down in China?
Citing "gross violations," regulator revokes NetEase's permit to operate game in authoritarian nation; internal government power struggle blamed.
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US game industry shrinks 19% in Oct., NBA 2K10 tops - NPD
Halloween month saw a scary drop to $1.07 billion in non-PC domestic sales; 2K Sports' basketballer barely beats Borderlands, Uncharted 2 in combined sales; Wii beats PS3.
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Final Fantasy XIII due March 9
Square Enix's latest J-RPG headed to North America and Europe in early 2010, Leona Lewis' "My Hands" named as theme song; new trailer inside.
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RUMOR: Halo Reach screens, details surface
Forum leaks appear to reveal passel of weapons, settings, and details from next year's installment in the sci-fi shooter series.
December:
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Medal of Honor redeploys in 2010
EALA and DICE collaborating on long-rumored reboot of classic series, which will follow modern-day special ops commandos in Afghanistan.
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Max Payne 3 delayed, Borderlands sequels teased
Rockstar Vancouver's shooter sequel pushed to Aug.-Oct. quarter as Take-Two president Ben Feder says 2K Games has "long-term publishing rights" to Gearbox's action-RPG hit.
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THQ opening Montreal studio
Publisher breaking ground on what will be largest development house in its stable next year, hiring 400; first core-focused titles due in 2013.
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Take-Two stock sinks 20% on lowered earnings estimate
[UPDATE] Grand Theft Auto publisher's grim 2010 outlook sends shares down 30%; MLB annual loss could hit $35 million; mystery AAA game delayed to FY2011.
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RUMOR: Logitech prepping PSP Go UMD add-on?
Online report indicates third-party peripheral manufacturer is building a disc-drive add-on for Sony's most recent handheld revision.
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