10 favorite gadgets of 2009
If you're still looking for a gift, the Times' Technology staff has compiled a list of our 10 favorite gadgets of 2009. Check out the full list, with details.
Grandmaster Flash. DJ Shadow. Z-Trip.
Most hip-hop heads revere these names as turntable legends. But it’s likely most video gamers have no clue who these guys are.
Activision, the publisher of the highly successful Guitar Hero franchise, is hoping to change that with its new title, DJ Hero.
The music and mixes of these notable turntablists are featured in the game along with more than 100 licensed songs, which make up more than 90 unique mixes.
Having a familiarity with actual DJing is not necessary to enjoy DJ Hero.
In fact, DJ Hero replicates the work of a real DJ about as much as Guitar Hero replicates what a real guitarist does -- which is to say not much at all.
But that’s not the point.
Simple, straightforward is what DJ Hero is about, and it succeeds in...
Ouch! Sales of video games and consoles in the U.S. fell 19% in October compared with the same month last year, putting the industry on the path for a decline in 2009 sales over last year, NPD Group said this afternoon.
"The industry is on track to generate full-year revenues in the range of $20 billion to $21 billion in the U.S., which would put it just below last year's sales of $21.3 billion," said NPD analyst Anita Frazier.
As for the holiday season, which in past years is when game companies rack up as much as 40% of their sales, it seems people are becoming nervous as they watch the unemployment rate hit double digits. According to NPD's Economic Tracker survey, consumers' "personal outlook continues to erode."
If October is any indication, the industry may be headed for a grisly holiday. Console sales crashed 23% to $380.7 million, compared with last year's $497 million. Game software sales fell 18% to $572.7 million, down from $698.4 million a year earlier.
"You're seeing the effects of the recession," said Michael Pachter, an analyst with Wedbush Morgan Securities, who two weeks ago predicted that U.S. game sales would be down 5% this year.
Sales of music-based games, such as Beatles: Rock Band and Guitar Hero 5, have lagged behind last year's numbers as the beat begins to fade for some, Pachter said.
With mainstream players, the heroes of last year's soaring sales, missing in action this year, guess who's riding to the industry's rescue? It's hard-core gamers. Yes, those insane enough to stand in line for hours to be the first to get their hands on games like Call of Duty: Modern Warfare 2.
The Activision title, a gritty combat game that's not for the faint of heart, took in $310 million during its first 24 hours of going on sale Tuesday in the U.S. and Britain. It's on track to bring in more than $1 billion in retail sales worldwide within a few months of release, according to a report by Lazard Capital Markets, putting it in the same entertainment blockbuster league as the movie "Titanic" and the album "Thriller."
October's results also confirm the reliability of avid gamers in tough times, with three of the top titles squarely in the hard-core category and another four spots going to sports titles generally purchased by loyal fans. To see the top 10 titles, click on the "continue reading" link below.
Electronic Arts today said it will cut 1,500 jobs by the end of March, or more than 16% of its workforce, the vast majority of them through a restructuring plan aimed at saving the company $100 million a year.
The video game publisher announced the cost cuts even as it proposed to pay as much as $400 million to acquire Playfish, a London-based developer of free-to-play games for social networks such as Facebook and Bebo.
“We are making tough calls to cut costs in targeted areas and investing more in our biggest games and digital businesses,” EA Chief Executive John Riccitiello said in a statement.
Though EA did not release details of where the layoffs would occur, EA Chief Financial Officer Eric Brown said research and development would be hardest hit, since that represents the bulk of the company's employee base. Even studios with established game franchises will be hit. EA's Tiburon Studio in Florida, which makes the Madden NFL games, will see 51 jobs go, or 8.5% of the studio's roughly 600 workers, according to the Orlando Sentinel.
The dual moves, one aimed at trimming expenses and the other at boosting EA's future cash flow, were announced amid a report that its quarterly revenue was up 2% on a non-GAAP basis to $1.1 billion during the second quarter ended Sept. 30. Net income of $19 million was up from $20 million loss a year earlier.
On a GAAP basis, which defers a portion of revenue for games that can be played online, EA's sales fell 13.5% to $788 million. Net loss widened to $391 million, up from $310 million a year ago.
EA's shares, which closed up 53 cents to $19.53, see-sawed in after-hours trading following the earnings release.
Corrected, 1:53 pm: An earlier version of this post incorrectly reported a net income of $20 million in the second quarter of last year. In fact, EA lost $20 million that quarter.
Updated, 5:27 pm: This post has been updated to reflect current stock price and details on layoffs at EA's Tiburon Studio in Florida.
-- Alex Pham
Follow my random thoughts on games, gear and technology on Twitter @AlexPham.
Electronic Arts, looking to jump into the exploding market for games on social networks, this morning said it has agreed to buy Playfish in a deal valued at $400 million.
The transaction calls for $275 million in cash, plus $25 in retention bonuses for executives of the tiny London-based developer of games such as Pet Society and Restaurant City. It also includes up to $100 million in bonus payments should Playfish meet certain, undisclosed financial targets.
Playfish, a privately held company, does not release its financial data, but has said the venture is "substantially profitable," so much so that it has not touched the $21 million in venture money it raised in its last round of funding.
With just 125 employees, Playfish has focused on a lean operation with fewer than a dozen games played on popular social networks such as Facebook, MySpace and Bebo. Though rudimentary, the games have attracted hundreds of millions of players. The fact that they are free to play is part of their appeal, but so is their social nature and the fact that players can pull their friends into the games.
EA, based in Redwood City, Calif., has been expanding its reach into free-to-play online games that make money by charging small amounts for extra features.
-- Alex Pham
Follow my random thoughts on games, gear and technology on Twitter @AlexPham.
Video game sales this holiday aren't likely to top last year's, said Robert Kotick, chief executive of Activision Blizzard Inc., the world's largest video game software company.
"If the consumer materializes and spends money, we'll do well," Kotick said in an interview today. "If not, things will be a challenge. And today, you really have no way of knowing what will happen. Shopping season hasn't kicked off. Consumers saw significant discounts last year after Black Friday, and they're waiting for it to happen again this year."
Kotick's sober remarks came just before the company released its third-quarter earnings report. Although sales were down 1% to $703 million, Activision swung into a $15-million profit, up from a $108-million loss in the same quarter last year. It earned a penny a share in the quarter ended Sept. 30, compared with an 8-cent loss a year earlier. The numbers beat Wall Street expectations on a non-GAAP basis.
Activision -- anchored by a trio of blockbuster franchises including Guitar Hero, Call of Duty and World of Warcraft -- has been better prepared to weather the economic storm that has eroded software sales and dampened consumer's appetite for game consoles and other consumer electronics.
This quarter, the Santa Monica-based game publisher released DJ Hero last week, followed by Band Hero on Tuesday. Upcoming titles include Call of Duty Modern Warfare 2, due out next week, and Tony Hawk Ride on Nov. 17.
More after the company's earnings conference call with senior executives.
-- Alex Pham
Follow my random thoughts on games, gear and technology on Twitter @AlexPham.
Shaun White used to battle with his older brother Jesse for control over the family's PlayStation game console while the two grew up near San Diego. Now, at 23, the Olympic snowboarder gets to star in his own video game, Shaun White Snowboarding: World Stage, set to hit shelves on Sunday.
Developed by Ubisoft Entertainment, the game is a sequel to White's first title, which sold more than 3 million copies since its release last November.
White may not be a household name, but neither was Tony Hawk when he came out with his first video game 10 years ago, Tony Hawk Pro Skater. Now some fans know Hawk more through his virtual stunts than his actual work on the ramps. Could the same be true for White someday?
White spoke to us about how he got his start in snowboarding, what he wants people to get out of playing his video game and who he aspires to become. Here's a video of part of our interview with White, taken by Times videographer, Myung Chun:
And, for old school reader types, here's an edited transcript of the conversation:
How did a kid from Carlsbad, Calif., grow up to be a snowboarder?
I ended up going to Big Bear skiing with my family. When my brother started snowboarding, I did too. I was 6 then, and I started to compete when I was 7. I actually grew up in Del Mar and Carmel Valley. The schools were really good, but they didn’t recognize my sport. At the time I had money saved up [from winning snowboarding competitions and sponsorships], so I bought a house in Carlsbad as an investment when I was 13, and that let me go to school in Carlsbad. The schools there really supported me when I competed.
Didn’t you want to surf instead?
My dad got me a huge board when I was little. He loves to surf. He suited me up and sent me out on this huge wave. I went under, and when I came out and the board hit me in the face. So I said, I never wanted to do this again. I stayed away until I was 13.
One of your sponsors, Red Bull, last February built you a private half-pipe in Silverton, Colo., called Project X. Is that going to appear in the game?
It actually is. There’s a special...
Nintendo is loading up the big guns this holiday season with new entries into two of its biggest franchises. Brand X got to spend some time with New Super Mario Bros. Wii and some of the other games a few days ago.
New Super Mario Bros. Wii feels more old than it does new. The game is similar to the New Super Mario Bros. game that launched to rave reviews on the Nintendo DS in 2006.
In addition to some controller-shaking features exclusive to the Wii hardware, the new Mario game multiplies the craziness by four. Scheduled to hit stores Nov. 15, New Super Mario Bros. Wii is the first Mario adventure that lets four players do their thing at the same time. It feels pretty chaotic, but we just couldn't put it down.
Check out the video demo at the top for a sneak peak at the new Mario game, along with The Legend of Zelda: Spirit Tracks for the Nintendo DS and the recently released Wii Fit Plus.
-- Mark Milian and Alexandra Le Tellier
Video credit: Myung J. Chun / Los Angeles Times
Need for Speed, Electronic Arts' racing franchise, has raced past the 100 million copies mark, making it one of the top five bestselling video game properties of all time. (The other four franchises in the elite 100-million club are the Sims, Mario, Pokemon and Grand Theft Auto.)
Developed in 1994, Need for Speed has evolved from a game made by a dozen developers to roughly 100 designers, programmers and perfectionists who obsess over cars. EA has cranked out 15 Need for Speed titles, but it wasn't until Need for Speed Underground came out in 2003 that sales got turbocharged. Since then, EA has moved 60 million copies of the game.
Over the years, the franchise has undergone a couple of remodels. The first came with Underground, which shifted the franchise away from "aspirational" Lamborghinis to street-style racers made from customized compacts and souped-up sedans. EA developers knew they had street cred when they began to see body shops build actual parts based on the game's vehicles.
And as computer graphics became ultra-realistic, even car manufacturers got into the act. Nissan, for example, used the game rendering of its 370Z sports car to help unveil the vehicle at last year's Los Angeles Auto Show.
The brand got its second makeover this year.
"We started to develop different versions for different audiences," said Keith Munro, EA's vice president for global marketing. "We noticed we had fans who liked an authentic simulation experience. But we also had others who wanted an over-the-top arcade style with hyperbolized physics."
The goal: Develop three titles to address different audiences.
The first, Need for Speed: Shift, came out in September, catering to players who wanted an authentic, visceral racing simulation. In November, Need for Speed: Nitro will hit the street offering freewheeling arcade play. Developed for Nintendo's Wii console, Nitro is designed to be easy to pick up and play. And sometime next year, EA plans to open up Need for Speed: World Online, a free-to-play game with Hollywood style chase sequences.
There is fierce competition among racing games -- Gran Turismo, Project Gotham Racing and Forza Motorsport are all formidable franchises with their own ultra-loyal fans. EA is hoping that its three-pronged strategy will help drive sales of Need for Speed's next 100 million copies. On your mark....
-- Alex Pham
Follow my random thoughts on games, gear and technology on Twitter @AlexPham.
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