Feature: PSN, Serving Games, Media And Ads

Previously, we talked with Susan Panico, senior director for PlayStation Network, about original content like The Tester on PSN. We got the chance to circle around and talk with her again about PSN content in general.

[a]list: What’s it been like to shift PSN from a game centric service to something that incorporates a lot of other media?

Susan Panico: Well, while some people talk about gaming being separate from other entertainment, I think it should be judged on equal ground. But to answer more directly, it’s all about delivering a consumer choice and there’s a lot of entertainment options out there, whether that’s movies or music and it made a lot of sense to provide different video viewing options to the consumer; it really solidifies the PS3 as the anchor in the living room.

At our heart is gaming; PlayStation helped legitimize gaming and became a pop culture icon and one of the important things for gamers to know, and I think we deliver on, is with huge, AAA quality titles. But we also know that they also like comics, music, movies and love deep intricate games and they also want pick-me-up stuff on PSN and Home. I look at it as day in a life of Joe Consumer; he might play a game for a few hours and take a break and stream a movie from Netflix or rent a TV show or do a lighter game and maybe go in Home where he can meet another gamer who will tell him how to get by that part he was stuck in!

[a]list: It’s nice to have choices. We’re still shocked when we see musical groups that refuse to offer their songs online because they don’t want to sell individual songs.

Susan Panico: I’m sure an album has a story, but kids want to get what’s interesting to them, and it’s important to give people those options. PSN is comprehensive and it gives the a la carte options.

[a]list: So we’ve heard that PSN has done well by Call of Duty: Black Ops this holiday season so far?

Susan Panico: It’s been a huge success for us. One of the things is we see 77 percent of our users play some content on PlayStation Store every month and Black Ops is a huge title for driving that engagement level. All the DLC and map packs do really well for that. We’ve also created the Pixel Junk franchise and we’ve had some great feedback with that. Also, it fluctuates a little bit, but nearly half the games on PSN are content that you can’t get anywhere else and we have really strong developer relations with companies  like ThatGameCompany to bring that content to PSN. And on Home, there are 100 games with more still coming, so that’s an evergreen success.

[a]list: What sort of special considerations are there on PSN for deciding what movies, games and other programming to promote?

Susan Panico: Multiple considerations. First is knowing our audience and trying to elevate content that we know is meaningful to them and trying to program it appropriately. I think the second is creating content that is exclusive or meets the quality of PSN, and sometimes there’s marketing commitment on a title to title basis that we provide support to.

[a]list: With connections from the PS3, PSP and other devices in the future do you see PSN becoming the center of the PlayStation world?

Susan Panico: It already has in a sense. Kaz Hirai, who was the SCEA CEO and now is the SCEI CEO and became the boss for the Product Services Group and then created Sony Network Entertainment Inc. to leverage the PSN network and use it for other Sony devices and they launched a service Qriocity and they’re rolling out a music service in Europe. So definitely a lot of the learning and infrastructure have been leveraged for the rest of Sony group.

I think [Sony CEO] Sir Howard Stringer talked about the digital strategy and how that’s an important angle for Sony’s success. We’ve always been born of the marriage of technology and entertainment. I think that PlayStation has a lot of cultural currency and brings in younger audiences through its content. So digital content is big for Sony overall and PSN has been the most prominent example.

[a]list: What companies have been big into advertising with PSN?

Susan Panico: One of the things that advertisers recognized is the time spent and frequency of use of PSN, and our primary user is male 18 to 35, so it’s a lucrative audience that they’re trying to get in front of. One of the things that differentiates us is we can present a package that includes the browser, original programming, PSN, PS3 start up, etc. and it’s a very comprehensive package.

As far as individual brands, we’ve worked with AXE, Progressive Insurance, Ford and Toyota, and they’ve been good partners and they’ve continued to come back to us. For marketers that aren’t doing straight CPM buys, it’s contextual so it gives companies an option for things to do. They can make a scavenger hunt around their brand that isn’t about a simple video on a TV screen.

[a]list: Do you think the lack of any mandatory pay options has helped PSN with its broad appeal?

Susan Panico: Hopefully people are drawn to the open access to the service, because if you’re going to spend $60 on a game, we’re not going to charge them just for playing the game; it doesn’t make sense from the consumer experience. Also, when you’re looking at strong franchises on multiple platforms, it shows we are a destination for hardcore multiplayer gamers, but we’ve also introduced games like Singstar and LittleBigPlanet where more casual players can socially play online.

[a]list: What’s the response been like to the paid subscription options on PSN, like Qore and PS Plus?

Susan Panico: PS Plus, we haven’t released figures yet, but in the most recent month, it’s been very successful. We’ve listened to the feedback and have tried to offer the content that they want. We are running a business, so we had to look at a way to create reoccurring revenue, and we looked to see what would people be willing to pay for and PS Plus was what we came up with, providing a lot of great content, exclusive discounts and exclusive access to betas, and it enhances the overall experience for fans, but it also has a chance to reach a whole new audience for people who want whole new content.

[a]list: Games like DC Universe Online, Killzone 3 and Assassin’s Creed: Brotherhood have been offered as multiplayer betas… would you say that’s a big draw for PS Plus?

Susan Panico: Definitely, one of the top three things that people like about PS Plus is those games.

[a]list: Anything else you’d like to add?

Susan Panico: I’ve been here for 16 years and I think this is one of the most exciting times in our history. We’ve broadened the DVD market with PS2 and now with PS3, you have Blu-ray, network service and coupled with all these fabulous games we have, such as Gran Turismo 5, we’re entertainment flypaper! There’s so much entertainment stickiness on the horizon, we’re really excited.

[a]list: Speaking of Gran Turismo 5, we thought the ad with Kevin Butler was a great mix of humor, information and impressive visuals…

Susan Panico: I was on the marketing side for Gran Turismo 1 -4, so seeing that made me very pleased.

[a]list: And we have to say we can’t wait to hear what Naughty Dog has cooking up next. I know there’s an announcement coming on December 12.

Susan Panico: Thanks! I can’t wait to hear either! *laughs* Honestly, I don’t know! It’s on a need to know basis right now.

[a]list: Ha. Well, thanks for your time.

Microsoft Talks Xbox Live Subscribers

Dennis Durkin, head of Microsoft’s Interactive Entertainment Business, recently talked about the importance of Xbox Live to the Xbox 360. He noted that Gold subscribers typically spend 3 hours a day on Live.

“Of our 25 million members, about half of them are subscribers to the business and pay us about $60 a year for that,” Durkin stated. “So it’s a very large business for us and for our partners.”

“This is a great opportunity for our media partners to stay connected with their customers and to sell them goods that they care about in their home,” he added. “Whether that’s game add-ons, movies, music, or clothing for their avatars, this is a very big business.”

Source: IGN

Zynga Gets Newtoy

Zynga has announced that they have acquired Newtoy for an undisclosed amount. The mobile game developer from Texas, which has created mobile social games We Rule and Words with Friends, will be renamed Zynga With Friends Studio.

“The Games With Friends franchise is the best social game experience available on mobile today and we are excited to welcome the Newtoy team to the Zynga family,” said Mark Pincus, founder and CEO of Zynga. “The Zynga With Friends Studio will continue to invent great mobile social game experiences for Zynga users everywhere.”

Online Represents 25% Of Holiday Sales

According to retail research firm Kantar Worldpnael, a quarter of all Holiday spending will go to online retailers like Amazon and eBay. Those over the age of 55 are expected to make up a third of all online purchases.

Traditionally, the online retail market has been the domain of the younger generation, but this year we will see older generations increasingly using this channel, said Kantar consumer insight director Alex Seron. This is largely due to both the convenience element of the internet, and the perception that it is cheaper than High Street stores. With people looking to spend less this Christmas, the internet offers a Santa’s grotto of Christmas bargains.

Source: MCV

EA Bets On Digital, Cutting Traditional Games

While the traditional games publishing industry continues to see diminishing returns, mobile and social gaming makes more and more money. It shouldn’t come as a surprise then that EA CEO John Riccitiello is talking about cutting his company’s games catalog by 40 percent in the next year, while investing in smaller digital titles.

“I think we’re at the classic hump where we’ve told people where we’re going,” said Riccitiello. “There’s evidence we’re going to get there, but Vegas isn’t putting money on it because we’re only in the fourth inning.”

As a more concrete example, he said that EA expects 35 traditional packaged games in the fiscal year, compared to 50 last year, with the number set to diminish next year as well. “I don’t think it goes to 10 or 15 or even less than 20, but there’s some number probably between the low 20s and the high 20s that’s right,” he said.

Source: Reuters

Bolt Creative And ngmoco Bringing Pocket God To Windows Mobile 7 And Android

The popular Pocket God mobile game on the iPhone is now coming to the Android and Windows app market. ngmoco ported the title working with Bolt Creative, with the game already available on some Android platforms and Windows Phone 7 headsets soon.

“Pocket God has been expanding rapidly since its inception almost two years ago and we ve always had our eyes on new platforms. To be selected as a launch title for Windows Phone 7 as well as hopping over to Android is something we re truly happy about,” said Dave Castelnuovo, CEO of Bolt Creative. “Collaborating with ngmoco on these monumental launches is just icing on the cake. Their expertise in mobile gaming is unparalleled and their outstanding reputation ensures that these new versions of Pocket God will be the same high quality fans have come to appreciate.”

“We were delighted to work with the Bolt Creative team on bringing their Pocket God IP to Android and Windows 7 Mobile using the game making resources at ngmoco and we’re certain Pocket God will continue its success on these new devices,” added Simon Jeffery, CPO at ngmoco.

Helen Mirren Talks Reluctance With Wii Fit Plus Ad

Helen Mirren recently appeared in an ad for Wii Fit Plus, seen doing exercises like yoga and jogging. Still, her reluctance to participate originally had nothing to do with the money, rather with the fact that she’s not an exercise guru.

“I’m so lazy about exercise, like most people I guess, and I absolutely resisted (the offer initially) so it was interesting that I would be asked to do exercise on an ad,” said Mirren to Britain’s Daybreak show. “But I did genuinely love it – it was great.”

Mirren is especially proud of the benefits to Parkinson’s Disease sufferers. “The most amazing thing which I’ve only just recently become aware of is (that) this technology is really useful for people with Parkinson’s. It’s made me very interested in the whole issue of Parkinson’s and the way people with Parkinson’s are so frightened to go out because people don’t understand about Parkinson’s. The great thing about this technology which was developed for a game – it’s been of immense help for people with Parkinson’s because it is all about balance and posture.”

“Exercise is good for all of us, no matter who we are, but it’s really, really interesting that something like 83 percent of people with Parkinson’s who have tried this said it was of positive value to them,” said added. “Now they’re doing research to find out exactly how and why this is helping people with Parkinson’s.”

Source: Contact Music

Sega Signs Thor Stars For Game

Sega has announced that they have secured Chris Hemsworth and Tom Hiddleston to reprise their roles of Thor and Loki from the upcoming Marvel movie for the Thor: God of Thunder game. The game will see the Thunder God battle beasts of Norse mythology in order to save the realm of Asgard.

“Bringing in Chris and Tom to star in Thor: God of Thunder gives us AAA talent that will create a truly cinematic interactive experience,” said Gary Knight, Senior Vice President of Marketing at Sega Europe and Sega of America. “Mighty Thor and the trickster Loki will face off with real emotion while giving fans visual and vocal continuity between the video game and film adaptations of the Marvel franchise.”

Activision CEO Shrugs Off Social, Mobile Games

Social and mobile games are becoming a large part of the gaming industry. However, Activision CEO Bobby Kotick doesn’t see as much potential in these areas, at least for right now.

“We don’t view the App Store as a really big opportunity for dedicated games,” said Kotick, adding about social games, “It’s a different question assessing it as a business opportunity. Right now we don’t see an opportunity for us to participate in that market.”

Kotick sees more opportunities in World of Warcraft and Call of Duty. “The place where you have the opportunities for growth is within the communities of franchises we control,” said Kotick.

While Star Wars: The Old Republic is considered by many to be a potential rival to World of Warcraft, Kotick does not seem overly concerned. “I can’t say that we’re hugely concerned about that… the audience for ‘World of Warcraft’ is a pretty committed group of players,” said Kotick, adding about the shrinking music genre: “It’s a challenging business right now… I think that we have some work to do in figuring out new pathways to innovation.

Source: Reuters