Mandalay CEO Betting Big On Virtual Reality

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The virtual reality consumer market is slowly coming together, between a forthcoming launch of the Oculus Rift in 2016 and products coming from HTC and Sony. Some are skeptical about the power of virtual reality, but Mandalay Entertainment CEO Peter Guber believes that it could be “the secret sauce for live entertainment,” according to Re/Code.

Guber recently invested in NextVR, a company that will be contributing to some form of entertainment for virtual reality. Although an exact amount wasn’t given, a NextVR rep did state it was “in the millions of dollars” range.

“The social element is critical, live in the arena,” said Guber, talking about a live sports experience that could easily be recreated in VR. “But you can only fill 18,000 seats, and there are seven billion people in the world.”

NextVR could take virtual reality in a better direction, broadcasting live events that allow viewers to look in any direction, recreating the “you are there” experience in full 3D, as indicated by executive chairman Brad Allen.

Along with sports events, Guber also believes that there’s potential for entertainment-based events, like the awards shows hosted by Dick Clark Production – where he’s currently a chairman. Users can also “move” around a stadium or theater to change their view, possibly through an implemented voice command system.

“You don’t have a director telling you where to look,” said Guber. “Individual capture devices can be put in separate places, and you can move from courtside to the owner’s suite, looking down.”

There are questions, of course, like whether people will think it’s comfortable watching whole games or events from a headset, and what kind of business model will be put in place for it. Pay-per-view is certainly an option, along with a possible subscription service. Nothing has been finalized just yet.

It’ll certainly offer a number of possibilities when it takes off in just a few months’ time.

YouTube Celebrates Anniversary With Let’s Play Countdown

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It’s hard to believe that Google’s YouTube channel is already ten years old. It just seems like yesterday that fans were just watching their first videos on the channel, whether it was a vintage movie trailer or a customized clip put together by some savvy online artist.

Ten years later, YouTube has grown into an online phenomenon – even to the point where some creative types are able to make a living from it.

A majority of these people produce Let’s Play videos, which features gameplay footage from popular games, along with occasional tips to help casual users get through them. YouTube recently posted a top ten list of the most popular franchises in Let’s Play videos, and some of them truly are surprises.

At number ten is DotA 2, Valve’s free-to-play MOBA game, which has become a darling on the eSports circuit – especially at the yearly Invitational event in Seattle. It’s generated enough of a healthy audience to become a legitimate threat to the throne holder, League of Legends – which is on this list as well.

Number nine belongs to GungHo Online’s Puzzle & Dragons, a popular mobile match-three game that has generated millions of dollars for the company. It’s likely to continue remaining in a top spot, despite heavy competition from Monster Strike.

At number eight is the indie survival horror series Five Nights At Freddy’s, putting players in control of a security guard keeping animatronic horrors at bay. With the final chapter in the series arriving this year (and a movie in the works over at Warner Bros.), Freddy’s isn’t likely to die off anytime soon.

Number seven is The Sims, EA’s popular “create your own world” series, which has plenty of humorous situations and new additions to keep players engaged.

Perched at number six is Garry’s Mod, a unique sandbox physics game where players can do whatever they wish in an open world. With a number of oddball situations and laughable outcomes, it has replay value to burn.

FIFA sits in the number five slot, proving to be the most popular sports franchise in the world. (Sorry, Madden.) That’s good news for Electronic Arts’ sports division, as a new entry in the series should keep fans transfixed when it arrives this fall.

At number four is Activision’s Call of Duty franchise. Between gripping single player scenarios and wide-open multiplayer, it continues to be a phenomenon – and won’t slow down when Black Ops III arrives this November.

League of Legends continues to dominate in the number three position, generating millions of dollars for Riot Games, and enough interest for the company to host big tournaments on a regular basis. Its position on the top ten chart should remain in place for some time.

Meanwhile, Grand Theft Auto holds the number two slot, and with good reason, as Grand Theft Auto V, the latest release in the series, is the most popular to date, with millions of copies sold. Its Grand Theft Auto Online component is also quite popular, especially with an editor for the PC version that lets users customize and post their own videos.

Finally, at number one, to hardly anyone’s surprise, is Mojang’s Minecraft. This has been a big hit since its debut years ago, prompting Microsoft to buy the franchise for a huge sum. It’s still a favorite these days, and with Microsoft’s financial oomph behind it, it’s only going to get better.

Happy birthday, YouTube. Here’s to ten more years of Let’s Play videos.

Nintendo Brings Back The World Championships

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Back in the late 80’s, Nintendo showcased its true devotion to gamers with the Nintendo World Championships, a gamer-friendly competition where players could prove their worth in games like Tetris and other titles, in the hopes of winning awards.

Sadly, that championship series has been dormant for 25 years – but fans should be pleased that Nintendo is bringing it back stronger than ever.

The publisher announced the Nintendo World Championships 2015 earlier today, as part of its overall plans for next month’s Electronic Entertainment Expo. The tournaments will kick off with preliminary rounds on May 30, before heading to the Nokia Theater in Los Angeles for the finals on June 14. Titles haven’t been confirmed for the competition just yet, but should be announced soon.

This is just the latest move by the publisher to “win back” its loyal audience, following its impressive sales numbers that were reported earlier in the month. The World Championships certainly hold value in their nostalgia, and that’s exactly what Nintendo is counting on.

“Whether you’re tuning in online or joining us at the show, we want to include fans of all ages this E3 with an innovative and nostalgic focus on fun,” Reggie Fils-Aime, Nintendo of America’s President and Chief Operating Officer, added in a prepared statement. “I’m especially eager to bring back the Nintendo World Championships and to crown the 2015 Nintendo World Champion.”

For those who are unable to attend the big event, Nintendo will hold a separate event at Best Buy locations on June 17 and 20, where people can check out the forthcoming title Mario Maker before it releases later this year. Those who attend will acquire a special 30 anniversary Super Mario pin as well.

Viewers will also be able to check out a special digital event that will air on Tuesday, June 16, and will highlight Nintendo’s forthcoming titles for the Wii U and 3DS systems for the coming year. Nintendo Treehouse: Live @ E3 will also air over the three days of the event, with various developers showing off titles that will be at the event.

Oh, and if that’s not enough nostalgia, Nintendo also released a fun little video, posted below, that features president Reggie Fils-Aime “working out” for the World Championships. His body is clearly ready.

Ubisoft Going Virtual With Franchises In 2016

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Ubisoft has done a great job over the years with its franchises, from the “killer” Assassin’s Creed series (which just added a new chapter yesterday) to Far Cry to the casual-friendly Just Dance series. And while we wait for specifics of what the company has planned for the year with its E3 presentation next month, we do have a good idea where it’ll be going next – the virtual realm.

Ars Technica recently reported that the company is looking into bringing some of its franchises for virtual reality platforms, which could launch as soon as the first half of 2016. Certain titles weren’t mentioned, but gamers are no doubt excited about the possibilities with such titles as Assassin’s Creed and Far Cry.

“We believe a lot in virtual reality because we see that it is really giving a chance for gamers to be more immersed in worlds, and we are developing a certain number of games that are going to take advantage of these new possibilities,” said Ubisoft CEO Yves Guillemot, during the company’s recent earnings call. “We are working on the different brands we have to see how we can take advantage of those new possibilities, but making sure also we don’t suffer from what comes with it, which is the difficulty to play a long time with those games.”

Other publishers have shown some concern over long-term play with these devices, since virtual effects could easily harm some gamers, as Nintendo’s Virtual Boy proved long ago. Take-Two president and CEO Strauss Zelnick voiced such concerns recently. “We are concerned that you’ll play our games for a long period of time – we don’t want people getting nauseated . . .  and also, having had the experience, I’m not sure how long you want an immersive headset on your head.”

Electronic Arts CFO Blake Jorgensen also voiced concerns during the recent UBS Global Technology Conference, stating that VR tech needs to improve “to make sure people enjoy it but don’t get sick by it too quickly.”

That isn’t stopping Ubisoft from making plans, though. “We are very bullish about the potential,” continued Guillemot. “We think it is going to bring more players to the universe of video games, and we are going to come with our brands. We will have a few titles in the first year and we will have regular games coming following that.”

Certain devices weren’t mentioned, but it’s likely that Sony’s Project Morpheus and the Oculus Rift will be on the list, amongst others.

Ubisoft has had a good year, showing a revenue increase of 45 percent over the previous year, with a profit of $125.8 million. That’s a pick-up from its losses from the year before, so that’s good news for its virtual plans.

 

‘Monster Strike’ Cleans Up On Mobile

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Monster Strike has slowly grown into an immense mobile success, if numbers reported from GamesIndustry International are any indication.

We first reported on Mixi’s popular mobile game last December, where we discussed how it was gaining ground on GungHo Mobile’s unstoppable Puzzle & Dragons, amongst other competitors. Over the months, however, it’s become an even bigger hit.

How much bigger Mixi’s earnings report show that the game made more than $3.7 million a day for the fourth quarter of FY 2014 (which ended March 31, 2015), based on its overall ¥40 billion ($333.8 million) revenue for that quarter. It’s passed Puzzle & Dragons to become the most popular mobile game in Japan, and it’s also gaining popularity in other countries as well.

Mixi’s revenue for the entire fiscal year 2014 was ¥111 billion ($927 million), an 829 percent increase year-over-year. Mixi’s profits were ¥33 billion ($275.4 million), up from ¥227 million ($1.9 million) the previous year.

As you can see from the chart above, the growth has been amazing in the last year, with growth quadrupling since the beginning of the 2014 sales season.

That’s a huge success for a game that’s only been out since October 2013, and it’s not likely to slow down anytime soon, with more and more players coming aboard. As a result, Mixi will host a Monster Strike Festival in Japan sometime this year to celebrate its fans, along with releasing an animated series based on the game. It’s also been announced for Nintendo’s 3DS handheld system, although there’s no word if it’ll be released in other regions just yet. (Nintendo could announce something as soon as next month with its E3 digital presentation.)

Monster Strike has also seen tremendous international growth, with Taiwan and Hong Kong gaining a great deal of attention, judging by the charts below. North America and South Korea aren’t far behind though, which indicates that the various Monster Strike products could end up in these markets as well, provided the game continues to be popular.

Mixi intends to use the game, along with its various mergers and acquisitions, to help it grow in 2015. It’s got good stature in the market, with ¥65.4 billion ($545.9 million) in cash and deposits, up from ¥17.8 billion ($148.6 million) the year before.

If it stays on track, it could earn as much as ¥185 billion ($1.54 billion) by the end of the fiscal year, with ¥52 billion ($434 million) in profit. Not bad for a little bunch of Monsters.

 

Now Hiring This Week: May 13th

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[a]listdaily is your source for the hottest job openings for senior management and marketing in games, entertainment and social media. Check here every Wednesday for the latest openings.

  • 2K Games – Product Manager (Novato, Calif.)
  • Red Bull – Partner Marketing Manager (Santa Monica, Calif.)
  • iHeart Media – Marketing Director (New York, NY)
  • Deep Silver – Senior Global Brand Manager (Larkspur, Calif.)
  • Sony Electronics – Associate Online Marketing Associate (San Mateo, Calif.)
  • Ayzenberg – Account Executive (Pasadena, Calif.)
  • Ayzenberg – Director, ION Business Development (Pasadena, Calif.)
  • Ayzenberg – Media Coordinator (Pasadena, Calif.)

For last week’s [a]list jobs postings, click here. Have a position you’d like to place with us Email us at pr@ayzenberg.com.

Streaming Officially Overtakes Downloads In Music Industry

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We’ve talked in the past about how streaming services are on the rise in the music industry, although not everyone is profiting from it due to the drop in digital downloads. That said, it’s a trend that isn’t likely to drop off anytime soon – if at all.

Re/code recently posted an article indicating the recent findings from a report by Warner Music Group. The report states that streaming music revenue has managed to pass revenue from paid downloads, marking the first time that the medium has done so for a major music label.

Services like Spotify, Pandora and YouTube have handily grown 33 percent for the second quarter, according to Warner. CEO Stephen Cooper explained the findings during a recent earnings call by the company, also pointing out that digital revenue has grown seven perfect overall. However, it’s not good news for all, as services like Apple’s iTunes have taken a hit when it comes to download sales, although a specific download figure wasn’t given during the call.

Music labels, in an effort to find more profitability, have been pushing for music services to ease back on the free tunes in favor of paid subscriptions.

“The rate of this growth has made it abundantly clear that, in years to come, streaming will be the way that most people enjoy music,” said Cooper. “We’ll continue to collaborate with our streaming partners to expand their business, and, more importantly, to ensure that copyright owners, artists and songwriters receive appropriate value for their work.”

Warner has made big profits from licensing music to services, as it’s proven with partnerships over the last year with Snapchat, Vessel and Interlude. Still, some players are being left out in the cold, especially with the reliance of digital album sales in favor of streaming.

In the midst of all this are the musicians, many of whom (like Taylor Swift) have been vocal about the poor revenues to the artists from streaming. Worse, the transparency of the streaming music business is limited — artists get checks with no clear idea of how exactly revenues were calculated.

More opportunities are still ahead, though. Apple is still actively looking into launching some form of paid music service sometime this year, and an announcement may come as soon as next month. Other competitors, like the troubled Tidal service launched by Jay-Z, are still lurking about. Don’t be surprised if streaming becomes more of the norm in the months ahead.

Club Nintendo Replacement Could Launch This Fall

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Providing rewards for being loyal to a company is nothing new, as a lot of brands offer something to consumers who keep purchasing their products. For the longest time, Nintendo had one of the best programs in the video game business with its Club Nintendo program, not only offering exclusive items in exchange for points redeemed for purchased games, but also annual rewards for those who stuck around in the long haul, from full digital downloads to special items like calendars and soundtracks.

That program shut down earlier in the year, but it won’t be too long until Nintendo replaces it with an even bigger one, as Polygon reports that the company may introduce something as soon as this fall.

An “evolved” version of the loyalty program is in the works, according to details provided in the latest financial report from DeNA, which recently partnered up with Nintendo to include many of its popular characters in mobile games.

With the launch of the program, Nintendo is set to introduce an “integrated membership” that connects smart devices and Nintendo’s dedicated game systems together, both of which will use a common login ID. It’s similar to the Club Nintendo service, where purchases for Nintendo systems (including the Wii U and 3DS) were kept track of, and some rewards were given as a result. However, the finer terms haven’t been revealed just yet, in terms of what’s being offered or what details will be tracked.

The details shouldn’t be too far off, however. Nintendo of America has stated that it will provide details on what it’s planning to unveil at the Electronic Entertainment Expo tomorrow, including the possibility of a new Nintendo Direct special and more details on said loyalty program. Games will likely get a huge focus as well, including upcoming titles like Mario Maker, StarFox and Xenoblade Chronicles X. (Sadly, the company already confirmed that the new Legend of Zelda game will not be at the show, although it could still be featured on video.)

Considering Nintendo’s recent turn-around in profits and its huge promotional push for the upcoming ink shooter Splatoon, its program should have no problem keeping long-time fans and newcomers alike happy. We’ll know more soon enough.

Nintendo Moves Forward On Smartphone Initiative

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It was just under two months ago that Nintendo finally decided to enter the mobile gaming market, in a partnership with the team at DeNA that will bring several familiar faces to tablets and phones alike. But now comes the magic question – when will we be seeing Mario and company on these devices

Apparently not too long. Cult of Android has reported that Nintendo intends to deliver its first smartphone game by the end of this year, with four more “top quality” titles set to arrive by 2017, according to president Satoru Iwata.

The company is taking a slow but sure approach to adapting to the mobile market, a change of pace from developing games for its own handheld platforms, like the 3DS and the recently released New Nintendo 3DS, which has been selling reasonably well since debuting on the market.

“We aim to make each title a hit,” said Iwata while meeting with investors. “and because we want to thoroughly operate every one of them for a significant amount of time after their releases, this is not a small number at all and should demonstrate our serious commitment to the smart device business.”

Even with the strongest franchises in the world, a game on both the App Store and Google Play simply can’t find success “if consumers cannot appreciate the quality of a game.” (Nintendo probably learned this lesson years ago with its lacking educational Where’s Mario games.)

Don’t expect ports of popular titles from previous platforms, either. “If we were simply to port software that already has a track record on a dedicated game system, it would not match the play styles of smart devices,” said Iwata.

Even with its push onto the mobile market, Nintendo won’t be departing the console scene anytime soon. It intends to unveil a number of new titles for the Nintendo Wii U next month at E3 2015, and is hard at work on a new device called the NX, which likely won’t be shown off until sometime next year.

This appears to be the latest initiative put together by the company in its effort to turn around its profits, which we reported on last week. We certainly wish them nothing but success.

How Much Did It Cost To Make ‘Video Game High School’ Season 3?

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by: Jessica Klein

For the third season in a row, Rocket Jump has released the financial breakdown behind the production of Video Game High School. The aim of doing this, in part, is for the creators of the YouTube series, Freddie Wong and Matt Arnold, to show viewers that putting out such a polished series isn’t cheap…even if it is a series on YouTube.

How not cheap is it The total cost of VGHS season three came to $2,435,434. That’s over $1 million more than it cost to produce season two (at $1,339,558) and way more money than went into season one ($636,010).

This in partially because VGHS got longer as the series progressed, increasing about an hour from last season’s run time, with each episode lasting about 40 minutes. Still, the cost per episode looks like nothing next to network TV shows of similar lengths. While VGHS costs about $415,000 per episode, shows like The Walking Dead and Breaking Bad go for about $3 million per episode (well, $2.8 million for the former), not to mention HBO’s Game of Thrones, which requires a hefty $6 million per installment.

Ultimately, the increased spending on VGHS season three looks like it paid off. Viewership went up since the last season by about 200,000, and average audience retention was solid—85 percent of viewers stuck around after the 50 seconds of each episode.

Read more…

This article was originally posted on VideoInk and is reposted on [a]listdaily via a partnership with the news publication, which is the online video industry’s go-to source for breaking news, features, and industry analysis. Follow VideoInk on Twitter @VideoInkNews, or subscribe via thevideoink.com for the latest news and stories, delivered right to your inbox.