Tag: Activision

Microsoft Posts Record Xbox Revenue in Fiscal 2024 Q2 Mostly Due to Acquiring Activision Blizzard

DomsPlaying

As you well know because you’ve seen my handy earnings calendar for this season, Microsoft reported its 2024 second quarter results earlier this week.

Only executives and literally everyone, including when I wrote about this very topic last quarter and predicted the revenue amount, expected the software tech conglomerate to post record gaming sales almost entirely becasue Activision Blizzard numbers are now included since closing the deal in mid-October 2023.

That’s precisely what happened.

Still, as I’ll illustrate shortly, I’d argue massive growth isn’t the whole story. I’m more interested in isolating Xbox’s organic performance, comparing post-acquisition to the sum of both entities before it happened and trying to determine how annual numbers will shake out. In addition, I’ll review the acquisition’s notable hit to profitability for the time being due to its cost and integration.

Essentially: headlines, even mine, never tell the whole story!

There’s also a divide happening right now with Microsoft. Just as the company closed above $3 trillion in market value for the first time, it announced big layoffs in its gaming division. Around 1,900 people across Xbox, Activision Blizzard and Bethesda, or 8% of the gaming workforce, were let go. I know there’s various factors behind this, including macro ones like inflation and interest rates. Plus, stock market valuations are determined by a collective set of investors rather than a company’s management.

Still, the optics and timing are tricky. The fact that job loss after the deal due to redundant roles and function overlap was inevitable doesn’t make it any less painful for the people involved. Especially as the broader company reaches record valuations and reports gaudy numbers.

Moving into those numbers, Xbox revenue totaled over $7 billion in the quarter ending December 2023. That’s up 49%. Within that, Activision Blizzard was responsible for contributing $2 billion. This makes Gaming the third biggest contributor to all of Microsoft’s sales at 11% of the total compared to 9% last year, right now behind only Server and Office.

It’s pretty clear what’s underlying this: Buying a massive third party publisher and integrating it within content and services figures. Even so, there was some organic Xbox growth in Q2. Under 6% to be semi-exact. I was also impressed that hardware was able to deliver solid performance during the holiday season, even if boosted by discounting.

“With our acquisition, we’ve added hundreds of millions of gamers to our ecosystem, as we execute on our ambition to reach more gamers on more platforms,” said Chief Executive Officer (CEO) Satya Nadella. “Great content is key to our growth, and across our portfolio, I’ve never been more excited about our lineup of upcoming games.”

Pretty standard corporate speak from Nadella, and I’d argue Xbox’s line-up this entire generation has been anything but exciting. In fact, management quotes around gaming on the earnings call were generally tame. The team did offer select insights that I’ll cover later, namely on cloud streaming and engagement across platforms including mobile, the latter of which hit record highs after the integration of Activision Blizzard players.

Read on to learn what the numbers truly look like, some estimates from me around a combined historical comparison, my guesses for hardware unit sales and then predictions going forward into 2024.

First thing to note when checking the above slides is Xbox, Bethesda and now Activision Blizzard are all accounted for within Microsoft’s broader More Personal Computing (MPC) segment.

Quarterly gaming revenue rose 49% in the three months ending December, up to an all-time high of $7.11 billion. This was exactly within the firm’s guidance.

What drove it? Well I’ll break that into two categories: Activision Blizzard and pre-acquisition Xbox. Here is where we talk the deal’s impact, which actually cost upwards of $75 billion based on the latest filing. During the second quarter, it contributed $2.1 billion to gaming division sales.

Essentially, Activision Blizzard was responsible for 30% of Microsoft’s second quarter gaming business at the top-line. Still, as I’ll get to in a second, its inclusion put major downward pressure on profit.

Separating that out, the $5 billion “organic” Xbox sales implied a growth rate of 5.7%. Much less than the headline suggests, right. Still, it’s certainly noteworthy for the important holiday time frame, notably while facing what executives called a “tough console market.”

Moving to the latest year, which happens to cover the 2023 calendar months, gaming revenue expanded 17% to rise above $18 billion for the first time ever. This particular figure, mapped out over time in one of the below charts, will only grow over time as more quarters take the acquisition into account.

I’ve also provided a new chart measuring Estimated Combined Gaming Revenue that, full disclosure, pulls in a few different assumptions to form a rough estimate of how annual figures compare when adding in Activision Blizzard’s historical revenue. I’ve summed up the two pre-deal entities going back for a few fiscal years then subtracted $2 billion per year in assumed overlapped sales.

What results is where I think Microsoft gaming sales could be when a year of Activision is considered: almost $22 billion, up a bit from the $21.6 billion a year back. That’s an upward trajectory of 1% as opposed to the 17% I just referenced. Good, yet nowhere near as wild as the headlines indicate.

While Microsoft is the first of the bigger gaming companies to report, I like to gather up a comparison to peers and update throughout the season in my articles. Sony’s latest annual PlayStations sales tracked towards a whopping $28 billion, with notable impact from the yen’s depreciation. Tencent was around $26 billion. This is where the current combined Xbox and Activision Blizzard slots, at $18.13 billion. Nintendo’s latest hit $13 billion. My usual caveat is that Nintendo is operating at higher profitability than at least PlayStation, and likely Xbox as well.

Speaking of profit, Microsoft gave us a bit more than usual this quarter! Partially because it had to illustrate the impact from Activision Blizzard, but I’ll take it. For the MPC group, operating profit jumped up 29% to $4.29 billion. Half of the “gross margin dollars” profit metric, a figure that moved up 34% in Q2, was contributed by Activision Blizzard as it helped up operating expenses at a higher rate of 38%. Focusing strictly on Activision Blizzard, its net impact was $437 million in operating income because of those higher costs. There’s also some accounting nitty gritty that I won’t include, for the sake of brevity.

What does this all mean? Well, record sales were mostly due to Activision Blizzard no longer being a 3rd party partner and becoming first party, however there was single-digit organic Xbox growth during the holiday season. Profit for the segment that includes gaming will take a short-term profit hit while integrating costs and following through with the deal’s financial accounting.

Here’s a quick dive into the two Xbox sub-areas, called Xbox Content & Services (i.e. software and subscriptions) and Xbox Hardware.

For October to December, the vastly larger Content & Services jumped up nearly 70% when measured by revenue. The first figure was above guidance, while the second technically under-performed at least based on what I calculated because Microsoft rarely, if ever, issues formal hardware forecasts.

The reason I say “nearly 70%” is because how Microsoft reported its numbers actually indicates that Content & Services moved up 68% to $5.69 billion, another best ever number, rather than the 61% in its announcement. From what other analysts and I can tell, Microsoft seems to have excluded Activision Blizzard’s eSports sales, for whatever reason.

This leads to my estimate of $16.5 billion for Content & Services over the last 12 month. That itself is above the $15.56 billion for all of Xbox in 2022 Q2. Separately, Hardware generated $3.27 billion in the latest annual period, slightly below the last couple years.

When hearing this numbers and looking at these charts, I’ve assumed all Activision Blizzard revenue is caught in the Content & Services pipeline because it doesn’t have anything to do with console manufacturing.

Underlying the best-ever figures for the software side was another all-time high, this time for engagement. Nadella noted that, now that Activision Blizzard players are included, Microsoft’s gaming division boasts 200 million Monthly Active Users (MAUs) on mobile devices. Prior to this, Xbox’s figure overall was 120 million. Activision had 92 million in September, while Blizzard was 26 million and King totaled 238 million.

Nadella also alluded to a double-digit jump in cloud gaming hours streamed, moving up 44% in the quarter. We don’t have specifics on the actual number of hours played by its active users, only the growth rate. Plus, unfortunately, there’s still no word on Xbox Game Pass subscribers. The last update was 25 million a couple years back, and I estimated recently that it’s likely approaching 30 million though has not eclipsed it. I hope Microsoft offers a new figure this year. Yet I’m not holding my breath.

Xbox’s Hardware segment had a solid holiday, even if the result ended up below my expectations.

Console dollar sales moved up 3% in Q2, to above $1.4 billion. This was spurred on by holiday discounting for the Xbox Series X|S family, and the appeal of something like Bethesda’s Starfield. In terms of number of consoles shipped to market, I believe it slightly increased although those units sold at a lower average selling price.

“In our consumer business, the PC and advertising markets were generally in line with our expectations,” said Chief Financial Officer (CFO) Amy Hood. “PC market volumes continued to stabilize at pre-pandemic levels. The gaming console market was a bit smaller.”

It’s a curious statement. Just because it was challenging doesn’t mean it wasn’t good. Any growth right now for Xbox console revenue, even in the lower single digits, is a positive sign. Echoing my past sentiment, and it’s something gamers need to get accustomed to, is that Xbox’s strategy has officially shifted away from consoles and towards offering services on various devices.

During the last year, Hardware reached $3.27 billion. That’s down 9% from the same time in 2022, though above pre-pandemic figures. Again, this tracks with the general theme.

Since Microsoft doesn’t provide global unit sales like peers do, I have no choice but to guesstimate where they stand. For the holiday quarter alone, I backed into 3.5 million to 4 million shipments for Xbox Series X|S. This would be in-line with last year, albeit below the roughly 4.5 to 5 million that its Xbox One predecessor was doing during its prime.

I put Xbox Series X|S lifetime at 25.5 million or so prior to this latest three month report. Which was below the 26 million of Xbox One. Adding on my estimated holiday shipments for the family, I believe Xbox Series X|S stands currently at 29 million to 29.5 million units lifetime since November 2020. Thus, it remains tracking below Xbox One by upwards of a couple million.

For comparison, Sony’s PlayStation 5 was the best-selling console in key regions during 2023, including the United States as I covered recently. The console reached 50 million units sold to consumers in December 2023, and the shipment figure will be even higher when Sony reports in a couple weeks.

Overall at Microsoft during Q2, revenue jumped 18% to $62 billion. Operating profit rose 33% to $27 billion. Microsoft Cloud grew 24% to 33.7 billion. Executives provided some color around how the Activision Blizzard deal affected the full firm’s financials.

“At a company level, Activision Blizzard contributed approximately 4 points to revenue growth, was a 2 point drag on adjusted operating income growth, and a negative 5 cent impact to earnings per share. This impact includes $1.1 billion from purchase accounting adjustments, integration, and transaction-related costs such as severance-related charges related to last week’s announcement.”

That’s referencing last week’s Xbox group layoff announcement, which came after a year of more than ten thousand people losing their jobs at the broader company.

To wrap up the latest quarter, it’s important to look behind the absurd 49% growth and big figures due to integrating Activision Blizzard. There has to be consideration for what numbers look like when combining the two historically, plus the notable downside profit effect for the time being. Not to mention the painful layoffs that happened mostly because of the deal taking place.

In terms of dynamics and future of the Xbox division, these don’t necessarily change with the latest new acquisition. The numbers are bigger, and the portfolio certainly has more brands especially on the mobile side with the unsung King division, while various challenges remain especially on the hardware front plus with industry-wide service stagnation and general costs rising.

I’m also lamenting the lack of details into Activision Blizzard’s underlying financials. We’ll never see them ever again. Pour one out, fellow business nerds and data transparency advocates.

Here I’ll take the chance to look ahead to the third quarter, and make some predictions on the immediate future of Xbox.

Management expects Xbox division sales growth “in the low 40s,” so between 40% and 44%. Out of that, management signaled 45 points would be due to Activision Blizzard. Yes, this means that Microsoft is saying its non-Activision Blizzard Xbox sales will likely decline in this current quarter.

Assuming say 42% growth, that puts Xbox sales at $5.12 billion in the three months ending March 2024. Which, you guessed it, would be a Q3 record. I believe this will be met, though on the lower end.

For Xbox Content & Services, Hood said to anticipate growth “in the low to mid-50s” i.e. around 50% to 57%. Most, if not all of that, will be Activision Blizzard causing a net impact of 50 points or 50%.

Let’s say it gets to 54%, that would elevate Content & Services to $4.77 billion in Q3. Again, I expect that to be achieved, and I think there’s a good chance it hits the upper end.

Finally, management actually provided Hardware guidance! Well, somewhat. They think it will decline. That will certainly be the case if the other numbers hold. As in, console sales could be down by as much as 30%. Based on how they presented numbers this time, I’m guessing around a 5% to 10% decline for console in Q2 which would equate to around $450 million to $480 million.

The early year release slate for Xbox is a tad light, so I’m thinking evergreen titles and the Call of Duty effect being first party will drive the business to hitting these forecasts. In terms of new games, Sega’s Like a Dragon: Infinite Wealth hit a million units yesterday. Warner Bros’ Suicide Squad Kill the Justice League formally launches today, and I’m skeptical on its commercial upside, just like I am for Ubisoft’s Skull & Bones this month. There’s titles like Tekken 8 from Bandai Namco, which I’m quite upbeat on, and Capcom’s Dragon’s Dogma 2 in March that should attract a cult following.

Will these be the biggest software contributors of the quarter? Nope. It’s Palworld, the surprise console exclusive that’s garnering a lot of attention from consumers and pundits alike. It’s much more than the “Pokémon with Guns” moniker, and has been a near unprecedented sales success. So far, Pocket Pair’s latest reached more than 19 million players, 7 million of those on Xbox alone. It’s the largest third party launch in Game Pass history, beating out 2022’s High on Life, and instantly shot to the top of the service’s most-played chart. I’m on record saying it will end the year as one of the platform’s biggest titles. Frankly, it’s absurd and I love it.

That ends the first massive recap of the latest season. Follow me on social for coverage in between articles, and check back soon for more here at the site. Be well!

Note: Comparisons are year-over-year unless otherwise noted.

Sources: Circana, Company Investor Relations Websites, Pocket Pair, Sega.

-Dom

Call of Duty Leads October U.S. Video Game Sales Chart to a Near Record Month

DomsPlaying1 Comment

Call of Duty: Modern Warfare is the latest commercial juggernaut in the long-gunning franchise, as it fought to the top of the domestic software chart last month in what was the second best October this decade on overall consumer spending across the U.S. games industry.

This year’s installment in Activision Blizzard’s first-person shooter series became the 12th consecutive title in the series to achieve top-seller status during its launch month, according to a recent report from industry tracking firm The NPD Group. The last time a Call of Duty game didn’t lead at launch was October 2007, when another Activision property rocked the industry to the top of the chart: Guitar Hero III: Legends of Rock.

As a result of its domination in October, Modern Warfare is immediately the best-selling game of the entire year. Even with only a single month of tracking. This feat displays how truly massive it is, especially this year after generally positive critical reception plus the always present casual audience it attracts.

Activision’s internal development team Infinity Ward returned to its Modern Warfare sub-series for the first time since last generation’s Modern Warfare 3 back in 2011. This year’s title is essentially a re-imagining of its classic formula, this time on a rebuilt game engine with a more gritty campaign alongside its traditional multi-player offerings.

It’s paid off. Quite literally. Call of Duty retained its distinction as the highest selling series of all time across the history of tracking, which dates back to 1995.

The success of Modern Warfare, among other strong software debuts I’ll mention in a bit, drove overall games industry spending to $1.034 billion in October. This the second best October month this decade, trailing only last year when both Call of Duty: Black Ops 4 and Red Dead Redemption 2 released. Which means the 34% decline since last year is up against a most impossible comparable.

When looking at 2019 to date, total consumer spending on all segments is at $9.3 billion. 10% lower than the same time frame in 2018.

I’ll point this out right away. This October’s growth figures appear to be much worse than they are. In fact, they are really freaking good for where we are in the console cycle. Namely considering this time last year we saw the best October of the entire decade, when total spending reached upwards of a whopping $1.57 billion. That was a monumental month, and an outlier.

On the software spend side, this figure dipped 37% in October to $620 million as displayed in the earlier chart. “Despite this decline, October 2019 tracked software sales represent the third highest total ever achieved for an October month, trailing only October 2008 and October 2018,” said NPD Group Analyst Mat Piscatella on Twitter, proving additional historical context on why last month is still a standout.

Year-to-date software sales hit $4.5 billion, a decline of 7% since prior year. Nintendo Switch game sales are in fact growing, though competitors are not. Hence the notable dip on the aggregate.

Call of Duty: Modern Warfare is the latest commercial juggernaut in the long-gunning franchise, as it fought to the top of the domestic software chart last month in what was the second best October this decade..”

Let’s now drill down into individual title performance, starting with the full rankings for both October 2019 and the year through last month.

Top-Selling Games of October 2019 (Physical & Digital Dollar Sales):

  1. Call of Duty: Modern Warfare
  2. The Outer Worlds
  3. Luigi’s Mansion 3*
  4. Madden NFL 20
  5. NBA 2K20
  6. Tom Clancy’s Ghost Recon: Breakpoint
  7. WWE 2K20
  8. FIFA 20
  9. Borderlands 3
  10. Ring Fit Adventure
  11. The Legend of Zelda: Link’s Awakening*
  12. Mario Kart 8*
  13. Minecraft#
  14. Grand Theft Auto V
  15. Mortal Kombat 11
  16. Overwatch
  17. Super Smash Bros. Ultimate*
  18. Code Vein
  19. Red Dead Redemption 2
  20. The Legend of Zelda: Breath of the Wild*

Top-Selling Games of 2019 (Year to Date):

  1. Call of Duty: Modern Warfare
  2. NBA 2K20
  3. Madden NFL 20
  4. Borderlands 3
  5. Mortal Kombat 11
  6. Kingdom Hearts 3
  7. Tom Clancy’s The Division 2
  8. Anthem
  9. Super Smash Bros. Ultimate*
  10. Grand Theft Auto V

^Digital PC Sales Not Included, *Digital Sales Not Included, #Digital Sales on Consoles Included

In the most surprising result of the month, Take-Two’s Private Division label and Obsidian Entertainment’s space role-playing game The Outer Worlds lands at the second spot on the overall software chart. It starts at number two on PlayStation 4, and number five on Xbox One. Keep in mind that this is even more impressive considering the game is also available as part of Microsoft’s monthly subscription service Xbox Game Pass, which isn’t factored into these metrics.

This is one of the best five launch month debuts for a game made by Obsidian Entertainment, a studio now owned by Microsoft which has titles under its belt such as Star Wars Knights of the Old Republic II: The Sith Lords and Fallout: New Vegas. As a comparison, Fallout: New Vegas also hit number two during its launch in October 2010. One caveat being that back then, the ranks were based on copies as opposed to dollar sales.

It’s a.. stellar commercial result for a game that’s also receiving widespread critical praise.

Rounding out the Top 3 in a busy month is, ironically, Luigi’s Mansion 3 from Nintendo. The company’s latest major Switch exclusive is the third installment in the spooky, 2D ghost-catching saga featuring Mario’s taller and more timid brother. The month’s best-selling Switch title also sets a new series record for the series, previously held by 2001’s original Luigi’s Mansion on GameCube.

It was finally time for Luigi to get some shine. Good for him!

A couple chart regulars in Madden NFL 20 and NBA 2K20 secured spots in the Top 5, as they often do. Ubisoft’s under-performing Tom Clancy’s Ghost Recon: Breakpoint retains the sixth spot in October, the same as the prior month during which it launched. While not an overall poor performance, it’s certainly not living up to its potential within the Tom Clancy brand.

Quick notable move is NBA 2K20 charting below Madden NFL 20 last month, while still occupying a higher position on the year-to-date list. Which implies that NBA 2K’s launch month was better, and is carrying it to more success when taken as a whole. I’d imagine the gap in dollar sales during October between the two sports games was small, even if we won’t ever know for sure publicly.

I must say that Nintendo’s experimental Ring Fit Adventure squeezing into the Top 10 is an impressive feat for the exercise game, and reveals a couple things. First, Nintendo Switch software is doing well by virtue of its hardware popularity. Then, the casual market often responds positively to its innovative projects (see: Wii Sports, Pokémon Go). While not every single experimental Nintendo product does well in the market, I always love and appreciate when its teams get creative like they did with Ring Fit Adventure. Especially a health-conscious product.

Final observation on software, when looking at a longer time frame for 2019 overall, the only Switch title on the best-sellers list is Super Smash Bros. Ultimate which released nearly a year ago. It’s natural for multi-platform games to outsell exclusives. However given Switch’s hardware success this year, it really doesn’t have that blockbuster software seller. Yet. I’d wager a major sum that this will change in November after today’s release of Pokémon Sword and Pokémon Shield, which appeal to a massive audience of children leading into the holidays.

While not every single experimental Nintendo product does well in the market, I always love and appreciate when its teams get creative like they did with Ring Fit Adventure.

Hm, Switching to the hardware side, unfortunately it’s not nearly as interesting as software. Spending on consoles in the U.S. was down 41% compared to last year, to only $182 million. This contributes to the current year-to-date figure of $2.1 billion on hardware, which is off 23% compared to the months leading up to October 2018.

Unsurprisingly, Nintendo Switch was top-selling for the month, it’s the top-selling for the year and the only platform showing growth at this stage due to its competitors treading water ahead of next year’s announcements. A similar theme as I’ve discussed in the recent past, not much to see here.

To talk about a positive for something other than Nintendo, I’ll point out a great observation from NPD Group in the following quote from Piscatella: “With six years in the market, the PlayStation 4 ranks as the third fastest unit-selling home console in history, trailing only the six-year sales totals of the Wii and the PlayStation 2.” Just last month, I wrote about how Sony’s PlayStation 4 became the second best-selling console of all time as measured by global units shipped.

Final set of data is on accessories and game pads. This segment totaled $231 million last month, which is down 16% compared to October 2018. For the year as a whole through last month, accessories and game pad spending is $2.7 billion. 3% lower than this same time last year.

That (finally) wraps up an eventful month on the software side, given that the year’s biggest launch hit plus we saw a handful of noteworthy surprises. November will be a good one too, with the release of two major brands with Star Wars Jedi: Fallen Order and the aforementioned Pokémon games, all of which are out today.

Note that The NPD Group ranks software based on dollar sales. For an even more complete data rundown, including individual platform charts and commentary on the fighting game genre in particular, go check out Piscatella’s informative thread.

It’s been real fun. Thanks for stopping by. November will also be a spicy one. Until then!

Sources: The NPD Group, Activision Blizzard, Nintendo, Take-Two Interactive, Venture Beat.

-Dom

Destiny 2: Shadowkeep Day 1 Recap: Serving Up Nostalgia

DomsPlaying1 Comment

We’re going back to the Moon!

Yesterday saw the launch of the latest expansion for 2017’s first-person sci-fi shooter Destiny 2, entitled Shadowkeep, which is part of a re-imagining of sorts for the franchise that saw its start way back in 2014. The now independent studio Bungie, splitting from Activision Blizzard this summer, launches its latest expansion alongside a free-to-play version of the base game called Destiny 2: New Light. Not only that, it’s moved the PC version from Activision’s Battle.net to the more universal digital platform Steam from Valve Corporation.

This isn’t even to mention the myriad of changes coming to the shared world online multiplayer title itself. Notably this includes quality of life updates, the roll-out of a brand new armor customization system plus the introduction of a seasonal type pass offering rewards for ranking one’s character up.

As you’d imagine from the above, the team at Bungie’s vision for Destiny as a franchise is beyond ambitious. Game Director Luke Smith provided fans with a three part Director’s Cut manifesto back in August that described how the game is changing to an action multiplayer game with an evolving world where everyone can play together.

Being a long-time fan, I will acknowledge that I start from a place of nostalgia and appreciation. This also makes me more hyper-critical than most. You’re probably wondering how it went during Shadowkeep’s kick-off yesterday. I’d like to keep a running documentation here on my experience, with context provided when I can, so let’s Keep it moving.

Playing since the original game’s early days, I’ve grown accustom to long waiting times every time a new influx of players hits during expansions. This time was no different, though even more pronounced due to Bungie launching the aforemention paid expansion, free-to-play version and a Steam version all on the same day. I understand wanting to align these for consistency, but man that’s a lot to ask of the tech teams.

The benefit of this is it obviously attracts people to the game. On PC alone, Steam concurrent players neared 220K at its peak. The digital deluxe version of Shadowkeep and the underlying game achieved the best-selling titles yesterday on its store. Which means that it’s not only enticing for new players, it’s that existing and lapsed players alike are jumping back in to see the new story lines and updates.

Despite some emergency server maintenance lasting a couple hours, Destiny 2: Shadowkeep luckily stabilized early enough for me to play through the entirety of its new campaign and experiment with its new systems and more endgame content. And it was really good.

With one, potentially major, caveat..

It was this good because I love Destiny.

For newer players and those with more of a passing interest? I don’t know if Shadowkeep will hit as hard. I especially question whether it will keep them coming back after this initial wave, which is the most difficult part of an ongoing, live service title. This carries forward throughout the actual story content of the expansion, as we face against all too familiar foes that appeal to us as fans though could very well feel redundant to everyone else.

Let’s step back momentarily. At its core, Destiny 2 is an online multiplayer game where we team up with buddies to eradicate hostile aliens from our solar system. It’s segmented into different planetary locations where various missions and activities take place. It’s much more a loot game than competitors in the first-person shooter genre, where players seen the best guns and armor to tackle even more difficult quests then progress towards an endgame that features raids, dungeons, competitive multiplayer and more.

One of these locations from 2014’s original Destiny was Earth’s Moon. A fan favorite, really, with its spooky vibe and opportunities for exploration. Sparing the details of its extensive back-story and lore, alien races called the Hive and Fallen now inhabit the moon and the player, called a Guardian, is tasked with clearing them out and defeating their leaders.

With Shadowkeep, players return to a modified version of the Moon. Most of it is the same layout as the original, offering familiarity and nostalgia for diehard players though I could see it drawing ire from lapsed players as a “been there, done that” vibe. I’ll note that the Moon has changed since our time here years ago, the Hive have erected a massive “Red Keep” structure towering over the lunar surface with a mysterious new enemy at its core.

Our guide on this journey is Eris Morn, a returning character in the game’s universe. She spent years hiding among the sinister Hive beings, which are essentially evil incarnate, after a mission gone bad. She’s learned their intricacies and knows that they post a serious threat to whatever is left of humanity.

Turning to missions themselves, the start has Guardians fighting in a more social type of environment against waves of Hive in an attempt to storm the Red Keep. It’s an epic return to this familiar setting, since it takes place in a brand new sub-area where the team’s stellar art direction really shines. The shooting is as good as ever, since not much has changed there other than weapon balancing, and Bungie is one of the best in the business when it comes to game mechanics.

Despite some emergency server maintenance lasting a couple hours, Destiny 2: Shadowkeep luckily stabilized early enough for me to play through the entirety of its new campaign and experiment with its new systems and more endgame content. And it was really good.

As is customary for a Destiny expansion, this amazing opening kicks off a new mini-campaign in which we take on quests all across the Moon plus can play in open, public spaces to tackle public “events,” clear out enemy enclaves called Lost Sectors and generally explore for items and secrets.

Without getting into spoiler territory, Bungie weaves older enemies into the mix here as Nightmares, fearsome shadowy versions of former foes which Guardians have to hunt down in order to help Eris learn more about the core threat. It’s great from an art and atmosphere perspective, and very much a setup that favors those who love the game. We recognize these enemies and their tactics. We’ve faced them all before. While I think this is smart from a nostalgia perspective, it really only appeals to those that don’t mind retreading old fights.

I can see the argument from lapsed players that Shadowkeep is repetitive. A rehashing. It might even feel old, which is the opposite of what an expansion should be. I wouldn’t have a great rebuttal, other than to say that I love it because it makes me remember all the fun I’ve had in years past when it makes someone else feel like it’s more of the same.

Now, I’ve argued for years that Destiny isn’t a traditional shooter and shouldn’t be judged as such. It’s a loot game that you play with friends. The whole point is to earn new weapons and armor, to find materials and modifiers that help you level this gear with the end goal of looking the coolest, feeling the most bad-ass and beating the highest level challenges it has to offer.

Shadowkeep initially looks great from this angle. Everyone begins at the same Power level (Or Light level, for veterans) and the game is generous in the flow of new, cool stuff. By the time I finished the campaign, I had a beefy exotic hand cannon, an awesome heavy machine gun and a full set of new legendary armor, hitting a point in my Power that I could now move into later game activities. There’s also the opportunity to pick up bounties that offer specific types of gear, rather than relying on the usually random drops to level up.

If we’re talking loot, this latest expansion is excellent. Though collecting every piece of gear isn’t a priority for most players, which goes back to the retention question. If lapsed players feel like they’ve seen this all before, and don’t see the appeal of hording stuff, what’s the point in sticking around?

Well, part of Bungie’s strategy towards player retention is making changes to the overall universe then the more nitty gritty systems and quality of life, which we’ll chat a bit on here before wrapping for the day.

First, Shadowkeep kicks off what’s dubbed Season of the Undying in which Bungie shifts to a more “evolving world” approach. This isn’t meant to be a one-time, traditional update. There are events planned, new missions to run and powerful gear to chase in the weeks to come. Powering up to tackle the Garden of Salvation raid this weekend or new Vex Offensive activity (“Vex” are another enemy race) are key to keeping player’s attention amidst a busy fall release schedule.

Still, this again targets the hardcore less than the general player base. It’s a delicate balance. I love the strategy, though am still skeptical of its implementation and overall appeal to many people returning for Shadowkeep. I do want to make sure to say that offering a free version in New Light is an excellent decision, allowing a taste of every activity and location without much barrier to entry.

One new major feature that does target everyone is the Battle Pass-type roadmap where everyone can unlock seasonal rewards just by playing the game. This includes actual weapons and armor, in addition to materials and cosmetic items. I wasn’t sure how I felt about this approach at first, though admittedly am warming up to this as it’s yet another carrot-on-the-stick. And this time, it appeals to all players since rank-ups happen organically. Kudos here to the studio for intelligently adopting this model that can be rampant with pay-to-win tactics.

Flipping to more focused changes, I haven’t dabbled much with the new “Armor 2.0” system which offers much more flexibility in how gear is customized. I did like how specific gameplay customization options are now split up from appearance, though will have more on this topic in the days to come.

Long-time fans will debate how weapon and ability changes impact the Destiny “meta” game longer term, though again this is something I won’t get into this much since I want this to be more of a general recap.

I want to know which visionary at Bungie thought of adding the new finisher system, and give them the highest of fives. It’s one of the best parts of this update, and that’s not hyperbole.

Finally, the introduction of Finishers is pure and utter genius. Most enemies can be “finished” with a flashy melee kill when at low health, and it never gets old no matter how many times I do it. The best part is that players can earn new finishers later in the game, or through the seasonal pass, and can assign modifiers that offer perks like enemies dropping more ammo when killed by a finisher.

I want to know which visionary at Bungie thought of adding the new finisher system, and give them the highest of fives. It’s one of the best parts of this update, and that’s not hyperbole.

This brings us to the end of the first day recap now that Shadowkeep is officially here. As with most live games, there will be hiccups along the way. I’m really enjoying my early time with the latest update to Destiny 2, though still maintain my skepticism that players other than those as crazy as me and my clan will be here for longer than a week or two.

Until tomorrow!

Sources: Steam, Bungie, Screenshots on Xbox One X.

-Dom

2017 Year-in-Review: Dom’s Top 10 Video Games of the Year

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Here we go!

 

Since it’s been one of the best years for video games this generation, it was almost impossible to (1) rank my favorite games and (2) make sure that I include as many as possible that deserve recognition during such a competitive time. It was difficult, but I’ve managed to narrow it down to a ranked list of my top ten favorite titles then a five honorable mentions for your reading pleasure (or disdain, if you happen to disagree.)

 

One disclaimer of course is that I will be sharing screenshots and exposition that may contain spoilers. If you haven’t finished your most-anticipated games of 2017 then.. wait, why haven’t you finished them if they were your most-anticipated? Seriously though, fair warning that there may be spoilers starting.. Now.

 

1. Super Mario Odyssey (Nintendo)

Platforms: Nintendo Switch.

Estimated Sales: At least 5 million units, based on around half of Switch owners purchasing it (there are 10 million consoles sold to date).

 

During a year in which Nintendo rebounded to achieve an array of accomplishments, its most relevant to me is fully rejuvenating the Mario franchise with this magical, exploratory open world 3D platformer. Super Mario Odyssey is a sprawling adventure of our favorite Italian plumber along with his new sidekick Cappy, and is a pure joy to play while “Cap-turing” enemies to take over their abilities and grabbing each one of its hundreds of collectibles. I’m left with the closest feeling possible to how I felt playing Super Mario Bros on the Nintendo Entertainment System during Christmas Day when I was little more than a toddler. Especially during a sequence in the city-themed Metro Kingdom that hearkens back to a timeless arcade title from the Japanese company.

 

It’s a game successfully split in two parts: The first tailored to a more casual audience wanting to experience the story of Mario attempting to save Peach from Bowser’s slimy grasp, this time under the guise of the villain kidnapping the Princess and planning their wedding on the Moon. Though by the end, I’d argue this is a distinctly clever take on the “traditional” Mario story. Princess Peach ends up dismissing the advances of both Mario and Bowser, in a wink-and-nod moment from the designers. Instead, she takes a trip of her own alongside Cappy’s sister Tiara, smartly bucking the tired trope of the damsel-in-distress we’ve seen her play since the 80s.

 

Then, the 2nd part is a surprising post-credits sequence targeting the most die-hard of completionists with brand new kingdoms plus a ton of puzzles and collectibles in existing areas. I’m treated to playing as Yoshi in the iconic Mushroom Kingdom, finding a theater in the Metro Kingdom with a playable version of the aforementioned Super Mario Bros and ended up conquering one of the most difficult levels in the franchise’s history. This final endeavor is a true delight, as it incorporates both platforming elements and the “Cap-turing” mechanic in fun, impressive ways.

 

If a video game that both tickles my nostalgia bone and stands as the pinnacle of its genre with new gameplay hooks, an unrivaled attention to detail and extreme polish doesn’t top my list, then I don’t know what does. It’s hard for me to find a glaring flaw with, except maybe that I wish Nintendo would hurry up and announce new future content (maybe a kingdom or two..) so I never have to leave the world of Super Mario Odyssey.

 

 

2. The Legend of Zelda: Breath of the Wild (Nintendo)

Platforms: Nintendo Switch, Wii U.

Estimated Sales: Similar to above, more than 5 million units. Likely even more than Odyssey because of Breath of the Wild releasing earlier.

 

Nintendo’s rebound began in March with the release of its Switch console and *probably* my 2nd favorite mainline Zelda game ever behind Ocarina of Time. Breath of the Wild is an action-adventure starring familiar characters like the timeless hero Link and Princess Zelda is the epitome of the “emergent storytelling” buzzword, a label often bestowed but rarely achieved. It’s set in the fantastical world of Hyrule, again haunted by the dark force Ganon, and the wonderful part is the world is wide open after a brief tutorial area for the player to run, explore and (most importantly) climb everywhere they can see. It features beloved areas like Goron City, Rito Village, The Lost Woods and countless others complete with their respective cultures and characters.

 

Now it doesn’t have the most engaging story, and lacks traditional “dungeons” that certain fans will miss. But I believe it MORE than makes up for this with intricate gameplay systems and an array of puzzles (i.e. shrines, mazes and collectibles) that allow for personal, powerful moments. If I thought I could do something, I could. Like of course a metal object conducted electricity. Absolutely it’s hard to climb when it’s raining. See that snowy mountain? Better bundle up before scaling it! Plus I’d often be rewarded with a useful in-game item, and ultimately a feeling of child-like awe inspired by so few games these days.

 

Admittedly, I was skeptical of Breath of the Wild prior to release. I was hesitant on weapon degradation, limited stamina and the necessity to prepare for the weather or elements. But I ended up actually really enjoying these systems within the broader world because each forced me to try new things, improvise under duress and consider a variety of factors when fighting, exploring or facing puzzles. The game is downright magical, and I honestly wouldn’t have it any other way.

 

 

3. Assassin’s Creed Origins (Ubisoft Entertainment, Ubisoft Montreal)

Platforms: PC, PlayStation 4, Xbox One.

Estimated Sales: Hard to say. Launch sales were twice as much as 2015’s Assassin’s Creed Syndicate, but that title had soft figures compared to others in history. It has almost 500K owners on Steam, but without specific console numbers I won’t speculate.

 

Ubisoft is another company that had a stellar year, and its best 2017 game is also its most important since it signaled a new direction for the decade-old Assassin’s Creed series. Set in Egypt around 50 BC during the occupation of Greek and Roman forces, Origins is hands-down the most beautiful game I played this year in terms of technical accomplishment and general art direction. (Note I played the Xbox One X Enhanced version. 4K, High Dynamic Range, all that). Not only that but it also implements a loot system where I’m constantly earning new gear with which to experiment, and its upgrade options allow me to spec my character in a way that aligned with my intended play style and equipment load-out.

 

Speaking of character, I appreciate that it leans into original ones more than historical figures this time. Though Cleopatra is a key part of the overarching narrative. The protagonist Bayek is a kind of super-cop of his era, while his wife Aya is more of a freedom fighter. Its characters are enriched by the story and especially its vastly improved side quests that build out Bayek’s legend. Mini-stories remind me of games like The Witcher 3 and Fallout in both their world-building and character development. In one such quest, an older man begs Bayek find a very important book that will allow his wife to pass safely into the afterlife. But when Bayek returns, the man has since passed away. Bayek is left to find the gentleman receiving last rites and in a bittersweet moment, he leaves the book alongside his body in hopes that it allows both him and his wife to rejoin each other in the world beyond.

 

My only knocks against the game is that the modern day sequences are not very engaging, and its huge map is daunting when you first enter the world. Even so, Origins has vaulted ahead of great entries such as the aforementioned Syndicate and even 2013’s Assassin’s Creed IV Black Flag to settle as one of my top picks in the entire franchise, because it takes risks and distinguishes itself as being able to stand on its own merits while also connecting with the underlying lore.

 

 

 

4. Horizon Zero Dawn (Sony Interactive Entertainment, Guerilla Games)

Platforms: PlayStation 4.

Estimated Sales: At least 3.4 million units, near launch. I’d wager close to 4.5 – 5 million by now based on the PS4’s user base rocketing above 70 million consoles.

 

Horizon Zero Dawn is the first “brand new” game on my list, as Guerilla Games creates a post post-apocalyptic world in which a small group of people has reestablished tribal communities after barely surviving a major calamity. Cool twist is in the 31st century, the main relics of the past are actually massive, mysterious robot creatures that resemble real-life animals or dinosaurs and are super hostile to humans.

 

But alas, Aloy is the playable character here and she’s a bad-ass, bow-wielding hunter-gatherer with an ability to combat these crazy mechs and even interface with them using technology from millennia past. After her mentor is tragically killed, she sets out on a quest to see why she’s so special and what actually happened to humankind. It’s a gorgeous, majestic open world action game with a gripping narrative and varied combat encounters as enemies require different tactics to outsmart and overcome.

 

The reason Horizon is so good is it borrows elements from a variety of games within the 3rd person action and open world genres then integrates them into a setting that is pure eye candy. For instance, take “Cauldrons.” These are cool-looking underground areas featuring light puzzles and tough combat engagements. Picture lots of neon lighting and man-made structures combined with natural formations. Emerging victorious from each Cauldron allows Aloy the ability to control a new set of machines, tying back into the lore of the world while also advancing the player’s set of powers.

 

In the end, Horizon features two parallel story lines: A brewing tribal war, and Aloy’s search for her past and discovery of the ultimate fate of ancient humans. These both pay-off in a big way, marking one of the most memorable blends of gameplay and narrative of 2017.

 

 

5. Destiny 2 (Activision Blizzard, Bungie)

Platforms: PC, PlayStation 4, Xbox One.

Estimated Sales: Well over 6.3 million units, based on Activision announcing it has outsold its predecessor. Activision also noted it’s the 2nd highest-selling console game in North America this year based on dollar sales, behind only Call of Duty: WWII.

 

Rounding out my Top 5 is what began as my most-anticipated game of 2017, the sequel to Bungie’s 2014 shared world, multiplayer shooter Destiny. Let’s be frank: Anyone that knows me or reads my Twitter timeline already knows how much I love this sci-fi franchise, so it shouldn’t be a shock that this ranks as high as it does despite mixed reactions from critics and community alike.

 

Destiny 2 is not a perfect game. But it is among the best in the business at what it does well. It has a most amazing art design, especially its wonderful sky-boxes and stunning color pallet, which players can now enjoy in 4K on premium platforms and an uncapped frame rate on PC. It has an intense, entertaining campaign that vastly improved on the original game. Its character customization and equipment options are varied so that no two players look the same, and the feeling of snagging that one piece of loot you’ve been hoping for is always triumphant.  Its co-op activities, especially the high-level “strike” missions and its difficult six-person raid, are unlike anything you’ll see in a modern first-person shooter.

 

Though what really stands out and keeps me coming back is its stellar gameplay. Its moment-to-moment mechanics of moving through environments to encounter and take out enemies is the best of any shooter maybe of all time. I argue this is its most important feature, outweighing any trouble it has with stagnant progression, end-game incentives and weak player-vs-player competitive play in the “Crucible” game mode. Like I said, Destiny 2 has its fair share of issues, but it’s still my favorite game to play alongside friends and I keep returning to it months after initial release.

 

 

6. NieR: Automata (Square Enix, Platinum Games)

Platforms: PC, PlayStation 4.

Estimated Sales: 2 million units.

 

I didn’t expect to even play Platinum Games’ follow-up to its cult hit NieR until I tried its short demo, available shortly before release. But this odd, way out-there action game with elements of JRPGs, arcade shooters and bullet hell genres stands out in a competitive year mostly because of its magnificent soundtrack, unique structure and absolutely outrageous story that forced me to contemplate the very nature of existence and what it means to be “alive.”

 

Deep stuff, I know. But when a game takes place in a distant future where androids, created by humans, are locked in a perpetual battle with machines, created by ancient aliens, you know it’s going to go places. And go places it does. I don’t want spoil too much, but what NieR: Automata does so well is it tells its overarching story from the perspective of multiple protagonists: Androids with “designations” like 2B, 9S and A2 instead of actual names. The androids and machines of this future world are mostly fighting each other, true, but are also learning about themselves and the world as this fight wages on. It shows how the created begin to take on characteristics of their creators, and what happens when these artificial intelligences begin to discover what, and eventually “who,” they actually are.

 

Some of the knocks against the game are it isn’t the prettiest-looking (and it ain’t), its map is a jumbled mess, its systems are opaque and the second “act” drags on because the player is revisiting a major story line from the first but in a slightly different way. This is why it’s not higher on my list. And it’s so difficult to talk about the genius of NieR: Automata without doing a full analysis of its story and themes, but suffice to say that if you are into games with killer soundtracks or narratives that weave themes of philosophy, science, AI and existentialism, then you will dig the heck out of this one.

 

 

7. Cuphead (Studio MDHR)

Platforms: PC, Xbox One.

Estimated Sales: 2 million units.

 

Since Cuphead’s reveal during E3 of 2014, I had been using the same (bad) running joke: Whenever someone brought up the game, I’d say “Believe it when I see it. And I don’t think I’ll ever see it.” Think about it: A super ambitious, hand-drawn title using the animation style of a 1930’s cartoon being developed by a tiny studio run by a family that had never commercially released a game. A niche Microsoft exclusive showed at every trade show for years, rumored as nothing but an onslaught of very challenging boss fights in a two-dimensional play area. Then, it was updated to include platforming levels that felt “tacked on” by those that saw them behind closed doors. Plus, for a long while, there was no release date in sight.

 

Boy am I glad that I was wrong, as were those that previewed those early builds, now that it’s hit the market. Sibling tag-team of Chad and Jared Moldenhauer, along with help from Chad’s wife Maja and others at Studio MDHR, have made one of the most extraordinary video games I’ve ever played. A run-and-gun platformer that literally looks and feels like a cartoon made during the time between the Great Depression and World War II. Yes, it’s still mostly an onslaught of bosses with a handful of collectible platforming levels scattered between. But it *works*. Each foes is expertly-crafted and animated with such nuance and skill that I’m still in awe it exists. Plus it has a snappy overworld, a multitude of weapon types and purchasable power-ups allowing different styles depending if a player wants more health or the ability to teleport. And it’s music.. Spectacular. Imagine an epic boss battle amidst a backdrop of an iconic jazz or bouncy swing tunes playing live as you methodically dismantle your opponent.

 

Its main downside is the barrier to entry is high, as many players will be turned off by its difficulty including an especially frustrating sequence right before the final encounter. However for those that are fine failing over and over again just to experience that one moment of monumental triumph, Cuphead is best-in-class.

 

 

 

8. PlayerUnknown’s Battlegrounds (Bluehole/PUBG Corporation, Microsoft Studios, Tencent)

Platforms: Mobile, PC, Xbox One.

Estimated Sales: 30 million units. (And it will probably be, like, at least a million more by the time you read this.)

 

Here it is. Better or worse, PlayerUnknown’s Battlegrounds (or PUBG for short) is the biggest story in gaming this year. And it wasn’t even a full commercial release until just a week ago, spending the bulk of 2017 in a preview mode on PC. It’s even still an “early access” title on Xbox One. The battle royale, Hunger Games-style multiplayer game that started as a mod for survival games is a phenomenon because of its simple yet elegant premise: One hundred players parachute out of an airplane onto an island full of weapons and armor, and the last person standing wins.

 

You might say: “That’s not original! I’ve seen this before!” And you’d be right. It’s one of many in the battle royale, last man standing genre. But I’d argue why PUBG is so beloved (and hated, by its detractors) and ultimately successful is a much more nuanced discussion. It’s a game going for realism, but its charm actually lies in its rough edges and “jank.” Its natural pacing is impeccable, as players experience the endorphin rush of a good loot game every single match between moments of high intensity and much-needed recovery. Its combat is very difficult to master, which means every successful kill feels like a victory in and of itself and an actual victory feels like bliss.

 

Similarly, every mode echoes a different genre: Solo play is a stealth-action horror game, where death can be behind any corner.. or bathroom door. Duos becomes an intricate, technical tango between two players calling out drops and enemy locations. And squads mode is a frantic, fast-paced feud of four-person teams. PUBG offers something for every type of competitive player, and its “circle” mechanic where the map slowly shrinks forces the action no matter the mode, resulting in memories and YouTube videos galore.

 

From a technical standpoint, PUBG has a long way to go. It only has two maps on PC, and just one on Xbox. It crashes and drops connections regularly on console, to a maddening effect. Though it has a solid foundation in place, and an addictive gameplay loop can hold players over until its tech is cleaned up and more variety is offered in terms of map locations. Here’s to your next Winner Winner, Chicken Dinner!

 

 

 

9. What Remains of Edith Finch (Annapurna Interactive, Giant Sparrow)

Platforms: PC, PlayStation 4, Xbox One.

Estimate Sales: Yet another one where it’s hard to tell. Almost 120K owners on PC, but indie publishers often don’t disclose exact overall sales figures.

 

Indie studio Giant Sparrow’s spiritual successor to The Unfinished Swan is a masterwork in storytelling and world-building, and an emotional journey into one family’s tragic history. It follows Edith Finch, the last remaining survivor of her family, returning to her childhood home in the Pacific Northwest to delve deep into the memories of her deceased relatives. As the player, I walked and explored this makeshift house that seemed to reach into the heavens, climbing until I reached its pinnacle which both physically and figuratively acted as the climax of the overall narrative.

 

Its story is told via a sprinkling of vignettes showing each relative’s last moments, from a food-poisoned young woman who believes she is transforming into animals to an infant playing gleefully in a bathtub to a grieving uncle who opted to live in secrecy in a bunker underneath the property. In its most poignant mini-story from both a gameplay and story perspective, Edith’s brother Lewis is a drug user and cannery worker who daydreams of being a prince in a fantasy world. The game sees you controlling Lewis cutting fish with one hand while simultaneously moving about through his fantasy world with the other. The scene plays out as him traversing mythical lands to find his true love, the princess, all the while conducting the mundane task of his day job. It’s bittersweet in its message, and flawless in its execution.

 

Some of What Remains of Edith Finch is predictable because of its linear nature, and it’s a dreary game in terms of its overall look, but its unconventional story and final payoff outweigh these flaws to become one of my major indie recommendations for 2017. Its vignettes perfectly encapsulate snapshots in time, right before tragedy strikes. Moments that the main character, and I, end up cherishing.

 

 

 

10. Nioh (Sony Interactive Entertainment, Koei Tecmo, Team Ninja)

Platforms: PlayStation 4, PC.

Estimated Sales: Over 1 million units. Likely more, since that was a figure based on the weeks after release way back in February.

 

Rounding out my personal “Top 10” is Team Ninja’s challenging, hack-and-slash RPG Nioh. Set in feudal Japan, the protagonist is an Irish sailor turned samurai (yes, you read that right) named William who embarks on a quest to take down a devious villain with supernatural powers. One twist is this dark version of Japan is infested with not just human warriors but otherworldly foes called “yokai,” some of which tower over William in foreboding fashion or evolve into different forms. Upside is William can also call one of a number of spirit animals to his aid, and he builds an arsenal of melee and ranged weapons to support his effort.

 

Nioh is far from an easy game, especially early on when you have limited options in terms of armor, skills and upgrades. Many enemies can take out William in one or two swings of their weapon or a well-timed elemental attack, so cunning and timing are essential in combat. I needed to carefully consider my path through each level, unearthing shortcuts along the way that help when I respawn after my inevitable demise. But its epic boss fights are the real treat: Beating adversaries like a former mentor turned massive, pipe-smoking toad, or a hybrid lion-dragon chimaera monster or even a gigantic multi-headed sea snake is akin to the ecstasy felt if succeeding in games like Dark Souls or Battletoads.

 

Another draw of Nioh is it’s extremely rewarding in terms of loot and currency, seeing each battle result in a literal explosion of items to pick up from the ground. It also integrates a number of smart systems. When you die, a version of your character can then be summoned in other players’ games as a ghostly “Revenant.” You can also summon co-op partners to support in your current mission, or even have the ability to run most missions with a friend. Lastly, it offers higher-level versions of its missions that reward the most coveted gear. It’s this cross section of rewarding gameplay, intricate systems and the jubilant feeling after each encounter that makes Nioh so special.

 

Honorable Mentions (Alphabetical Order):

 

Call of Duty: WWII (Activision Blizzard, Sledgehammer Games)

Platforms: PC, PlayStation 4, Xbox One.

Estimated Sales: Best-selling console game of the year globally, and has generated over a billion dollars in revenue. Quick calculation leads to around 16-17 million units assuming it sells most of its copies at full-price. But if we assume discounts & exchange rate conversions etc, I’d wager 14-15 million already.

 

 

Hellblade: Senua’s Sacrifice (Ninja Theory)

Platforms: PC, PlayStation 4.

Estimated Sales: Over 500K units. Ninja Theory disclosed that the game has exceeded expectations and is now profitable.

 

 

Resident Evil 7: Biohazard (Capcom)

Platforms: PC, PlayStation 4, Xbox One.

Estimated Sales: 4.1 million units.

 

 

 

Splatoon 2 (Nintendo)

Platforms: Nintendo Switch.

Estimated Sales: 3.61 million units.

 

 

Wolfenstein II: The New Colossus (Bethesda Softworks, MachineGames)

Platforms: Nintendo Switch, PC, PlayStation 4, Xbox One.

Estimated Sales: Unfortunately not a huge commercial success. Just above 370K owners on Steam. No word on exact overall or console sales.

 

 

There you have it! What a year. I hope you gamers out there were able to play some of these titles, and got as much enjoyment out of them as I did. Thanks so much for making it this far, and let me know how you feel about these in the comments or on Twitter! Here’s hoping 2018 can live up to its incredible predecessor.

 

 

Sources: All screen caps taken by yours truly on one of the listed platforms, usually Xbox One for multi-platform titles. Estimated sales from an amalgamation of sources, including company announcements, financial statements, NPD Group, GfK/UKIE, equity analysts, social media posts etc. If you are interested in details behind sales stats, please drop me a line.

 

-Dom

Earnings Calendar Jul & Aug 2017: Gaming, Media & Tech Companies

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Welcome back friends! Time to get excited for numbers, and charts, and graphs. Lots of ’em.

 

This post is a little later than usual as the “quarterly earnings season” is already well underway, but there’s still plenty of companies within tech and gaming that have yet to announce how their business have been faring during the past few months.

 

Per usual, above you’ll see a full calendar of public companies and the dates on which earnings results are posted. Then below is a link to a Google Doc containing this same information for easy access to investor relations websites for your viewing pleasure.

 

Working Casual Earnings Calendar Jul & Aug 2017: Gaming, Media & Tech Companies

 

Some companies on my radar this quarter are as follows:

 

Amazon $AMZN: The massive online retailer based in the States announced its whopping $13.7 billion acquisition of grocer Whole Foods $WFM in June, so it may provide some sort of update on the status of this deal when it reports this Thursday, July 27th. The deal itself is a key development in the retail space as it cross over between digital and brick-and-mortar sellers, however that’s part of the reason it’s under continued scrutiny from the U.S. government and no formal approval has been given thus far.

 

 

Take-Two Interactive Software, Inc. $TTWO: The owner of studios Rockstar and 2K Games has seen growth lately based on the ongoing success of Grand Theft Auto V, in particular its online component. However, GTAV released all the way back in 2013, plus Take-Two doesn’t have any triple-AAA game releases this year now that Rockstar’s widely-anticipated Western Red Dead Redemption 2 was delayed. In an interview recently with GamesIndustry Biz, CEO Strauss Zelnick acknowledged the thin release schedule and commented that ideally the company would release more big titles on a regular basis. I don’t think we’ll hear much in terms of RDR2 status other than it’s still in the development phase, but the company needs to reassure investors that its line-up can support big gaps between Rockstar’s heavy-hitting games.

 

 

Activision Blizzard $ATVI: Activision Blizzard reports on Thursday, August 3rd and is in arguably the best position this year of all the major worldwide video game publishers. Blizzard’s multiplayer hero shooter Overwatch continues its widespread appeal more than a year after release, surpassing 30 million registered players and transitioning to a viable eSports franchise with the announcement of the Overwatch League this month. The company’s Crash Bandicoot N. Sane Trilogy, released in late June, is vastly exceeding expectations as it was the best-selling game in the world during its release month. Not to mention upcoming releases, where Activision boasts two games with huge upside that I believe will end up in the Top 5, if not Top 3, games by sales this year: (the Game of the Year contender and what might be the best game this generation if it was up to me, hah) Destiny 2, out September 6th, and Call of Duty: WWII, releasing on November 3rd. Oh, and it also now has fully integrated King Digital into its structure so it has significant mobile exposure too.

 

 

Vivendi SA $VIV: Lastly, as I’ve noted in the past, whenever French media firm Vivendi reports, there’s the potential it could formally announce a bid to purchase Ubisoft Entertainment SA $UBI, which has already reported stellar results itself for its last fiscal year. As of Vivendi’s latest annual report, it now owns 26.8% of Ubisoft’s outstanding shares, meaning that my prediction the acquisition will not happen anytime soon less and less likely by the quarter.

 

 

Thanks as always for checking out the calendar and my thoughts on some of the companies on the list. Any announcements you’re looking forward to in particular? Will the publisher of your most-anticipated game this year

 

 

-Dom

 

Sources: Company Investor Relations Websites/Press Releases, MarketWatch, GamesIndustry Biz, Business Wire.

Companies of E3 2017: What We Know & What They Should Show

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The annual Electronic Entertainment Expo is fast-approaching, with the pre-E3 festivities and conferences kicking off this weekend and the show officially running from June 13th to 15th. Organized by the Entertainment Software Association (ESA) and set in its usual location of Los Angeles, CA, E3 is basically a cherished holiday for gamers, tech fans, enthusiast media and industry folks alike.

 

Now that we’ve “set the stage,” if you will, here’s a list of many companies that we know will be there, what we know about them and what they should show in a perfect world. Some are hosting press conferences. Others will be taking part in various streams or interviews with media members. Then even more will be packing the show-floor to demo or host exhibits featuring new games. No jokes, this is the most exciting time of year for video games and we should expect a ton of new announcements, trailers, gameplay videos and, as always, surprises.

 

 

Saturday, June 10th

Electronic Arts $EA: EA Play, 3pm ET

 

Saturday marks the unofficial start of the festivities, as Electronic Arts hosts its second annual EA Play conference in Hollywood, CA. Starting in the afternoon and running through Tuesday, June 12th, this is mainly a fan event which is a theme of late for many companies.

 

What We Know: In advance, EA has posted a list of games to expect at its event. These of course include its Star Wars and sports titles: Star Wars Battlefront II, FIFA 18, Madden NFL 18, NBA Live 18, EA SPORTS FIFA on Switch in addition to other titles including another entry in its racing series, Need for Speed Payback,  then others like The Sims 4 and some mobile offerings. Note that extra content for its hit shooter Battlefield 1 will also be shown.

 

What It Should Show: Of course both fans and investors would love to hear more about its OTHER Star Wars projects, of which there are two more in development that were revealed at last year’s show. Visceral Games and EA Motive are working on an action adventure game, which has some serious development muscle behind it with industry vets Amy Hennig and Jade Raymond running the studios respectively. Then, Titanfall developer Respawn Entertainment’s project is a mysterious 3rd person action game set in a completely different timeline than the company’s other titles.

 

But to be honest, EA’s lineup is super “safe” right now, so I think it should also show off some of its other more interesting future games. Mass Effect Andromeda developer BioWare teased a brand new game recently and I think this is the time to reveal more after the mixed reaction to the latest Mass Effect installment. Then there’s the EA Originals line of smaller titles, which includes studio Hazelight’s unannounced project, Fe by Zoink Games then Sea of Solitude by Berlin’s Jo-Mei Games. I even fully expect another EA Original title to be announced, maybe even Unravel 2?

 

Lastly, might be a long shot based on my last note about BioWare, but I think EA should go even further and give us a glimpse of the studio’s next Dragon Age game. The publisher needs a fantasy RPG to round out its lineup, otherwise it honestly may be the most predictable (some would say “boring”) of all the companies this year.

 

 

Sunday, June 11th

 

Microsoft $MSFT: Live E3 Briefing, 5pm ET

 

What We Know: Isn’t it obvious? In its most important E3 to date, Microsoft will finally reveal Project Scorpio. The upgraded, “most powerful console ever” iteration of the Xbox One was announced at last year’s show and ever since it’s been shrouded in secrecy except for an overview of its specs from Digital Foundry. Microsoft has to show us what it looks like, tell us when it’s coming out, share its price and, most importantly, tell us about some of its freakin’ games! A shiny new piece of hardware is well and good, but without software there’s no way the company can close the gap with Sony’s PlayStation 4 shipments (now standing at 60 million units).

 

What It Should Show: In a conference that will run longer than its usual hour and a half according to head of Xbox Phil Spencer, Microsoft absolutely NEEDS to show us the games that it’s been so quiet about recently. We know a new mainline Forza racing game is in development of course, but it’s time we hear more about titles like Crackdown 3 (which I fully expect to launch alongside Scorpio), Sea of Thieves, State of Decay 2, Cuphead and Below. And we need to hear about its new 3rd party partnerships, because right now it’s basically just Middle-Earth Shadow of War published by Warner Bros that we know is coming to Scorpio.

 

The Xbox team is pushing to cultivate developer relationships with Project Scorpio, and they need to prove it by showing us some surprises or at least confirming some rumors. There will be “something” Halo related during its show, though not likely to be Halo 6, but also what about the sequel to Ori and the Blind Forest rumored to be called Ori and the Will of the Wisps? What about utilizing the Fable license again? Maybe Shadow of the Tomb Raider if the relationship with Square Enix is still going? How about a surprise or two or even more, maybe an RPG to round out its portfolio or a story-based single-player experience to rival a huge Sony hit like The Last of Us? Project Scorpio will only be as good as the games it can offer, and it’s not enough to lean solely on major 3rd party titles because is competitor already has a much larger install base of people playing those exact games.

 

Last quick note is that Microsoft said it will not show anything Virtual Reality-related, unfortunately. So those rumors about a collaboration with Oculus Rift are on hold for now.

 

 

Bethesda Softworks: #B3 Showcase, 12 am ET (Monday)

 

What We Know: Private publisher Bethesda has been providing the industry with some gems lately, think new entries in DOOM, Wolfenstein and Dishonored series plus recent release Prey, and I expect its hot streak to continue at this year’s conference. In the above image, it showed off its plan for E3 called “Bethesdaland,” which reveals a lot about what will be at its showcase and on the show floor. Expect to see Elder Scrolls Online/Elder Scrolls Legends, Quake Champions, Fallout 4 VR, then new content for games that are already out: Dishonored 2, Prey plus DOOM 2016 (perhaps a VR mode for that one?).

 

What It Should Show: You’ll notice that Bethesdaland has a couple of areas under construction. In these spots and at its event/show floor exhibit, I think it should absolutely (finally) reveal Wolfenstein The New Colossus. Gamers have been waiting a year since the title was initially teased. So assuming that’s the first area, what about the other one? Realistically, it’s probably something like Evil Within 2. Or maybe related to Skyrim for Nintendo Switch, which was shown off in the initial trailer for the hybrid console?

 

Super long-shot for this conference is the big rumor circulating: a sci-fi, open world project rumored to be called Starfield. It sounds like the type of thing that would fit nicely in the company’s portfolio. We also know that Bethesda Game Studio is working on a couple projects, but I assume those are not far enough along in development to show here.

 

 

Devolver Digital: Press Conference & All-Night Event, 1 am ET (Monday)

 

What We Know: Well, we know that independent game and film publisher Devolver Digital is having an event overnight. But nothing “official” has been announced in terms of exactly which games will be, except that there won’t be any brand new reveals. Though Japanese developer Suda 51 will be!

 

What It Should Should: Some titles that it should likely show are The Swords of Ditto, Crossing Souls, Minit, Ape Out, Eitr and Serious Sam’s Bogus Detour. Admittedly, I don’t know much about these except for Crossing Souls, made by Spanish developer Fourattic.

 

 

Monday, June 12th

 

Ubisoft $UBI: Press Conference, 4 pm ET

 

What We Know: French gaming firm Ubisoft is known for its unique and energized stage shows, though this year it might be toned down a bit with internal developers hosting rather than comedian Aisha Tyler. Still, in the above video, Ubi and its CEO Yves Guillemot have confirmed we will see South Park: The Fractured But Whole and Far Cry 5 in particular. Technically, that’s all we “know” for sure but in reality..

 

What It Should Show: .. We probably already know most of its show. I’m fairly confident that based on recent leaks, we can guess the “Conference Exclusives” and “New IP Saved for Conference” referenced in the video. One of them has to be Assassin’s Creed Origins, all but confirmed to be the official title of a new game in the series set in Ancient Egypt. Another should be social racing game The Crew 2. And that new IP? I’d wager it’s the Nintendo crossover called Mario x Rabbids Kingdom Battle. There’s also a good chance it features next year’s Just Dance title, or some new content for this year’s version.

 

If it’s not those titles, then what if Ubi goes ahead and treats us to the new triple AAA online multiplayer game it mentioned in its last earnings call? Or the space simulation game, code-name Pioneer, with a trailer in Watch Dogs 2? Or a brand new smaller or indie type of game from UbiArt engine? Or even a Splinter Cell title (however unlikely)? Ultimate long-shot is that it announces some sort of brand new project exclusive to Nintendo Switch, but that’s probably not feasible at this point in the hardware’s life cycle.

 

 

Sony $SNE: PlayStation Live from E3, 9pm ET

 

What We Know: Closing out the last day before E3 technically begins is current console market leader Sony with its PlayStation Live event. And we know it’s had some heavy-hitting conferences lately, despite some of the games featured being early in development or delayed when all is said and done. Be that as it may, Sony shows a ton of games at its show from both internal studios and external partners, so we know games like God of War, Uncharted The Lost Legacy, Spider-Man, Days Gone and Grand Turismo Sport will be shown off. Not to mention those 3rd party games where Sony has established marketing deals, including (my most-anticipated game of all time) Destiny 2, Call of Duty WWII, Far Cry 5, Star Wars Battlefront II and fighting game Marvel vs. Capcom: Infinite.

 

What It Should Show: Knowing that Hideo Kojima’s Death Stranding project will not be making an appearance, that leaves Sony’s biggest game remaining that I believe it should absolutely show as The Last of Us 2. I know it’s early in development. I know creator Naughty Dog’s leadership team has said it takes a lot of effort to create teasers. I know that the studio is showing off its upcoming Uncharted game already. But wouldn’t a Sony show feel empty now that everyone knows TLoU2 is a real thing instead of a pipe dream? It would at least to me.

 

Otherwise, Sony should really show off what studio Sucker Punch has been working on all these years after PS4 launch title Infamous Second Son. Then round out its show or exhibits with Knack 2 (yes, really), Detroit: Become Human, Housemarq’s in-development title Matterfall, Media Molecule’s Dreams (if it still exists) and Michel Ancel’s WiLD (if it also still exists). Sony also said recently that it has some news surrounding unannounced Japanese games, which have done well for the platform lately. Separately, if Sony is serious about PlayStation VR, it should really show people why they should pony up hundreds of dollars to buy one. The device has been “virtually” non-existent at its last couple of press events. (Apologies, it was too tempting.)

 

Lastly, is it finally time for From Software to reveal Bloodborne 2? Might be wishful thinking, but crazier things have happened at E3.

 

 

Tuesday, June 13th

 

Nintendo $NTDOY: Nintendo Spotlight E3 2017, 12pm ET

Nintendo Treehouse Live, Tuesday, June 13th, 12:30 pm ET & Wednesday, June 14th, 1pm ET

 

What We Know: On the morning of the first official day of E3, Nintendo will have a half-hour long recorded “Spotlight” event. During this show, we know for sure that (my second-most anticipated game of all time) Super Mario Odyssey will be heavily featured. It’s a given that Nintendo’s event and show-floor exhibit will be centered around its most iconic character returning in a 3D platforming game later this year. It even appears Nintendo is creating a real-life version of the location New Donk City featured in the original Odyssey trailer. We also know that the company will be delving deeper into Switch games releasing this year, which are ARMS, Splatoon 2 and Pokken Tournament. In fact, Nintendo is hosting tournaments for all three of three games at E3.

 

What It Should Show: Stuff for Switch, then some more, then even MORE. This is prime time for its hot new console. The Legend of Zelda Breath of the Wild DLC. Fire Emblem Warriors. Super Smash Bros (if a version is coming to Switch). Xenoblade 2. The aforementioned Mario x Rabbids Kingdom Battle. Capcom’s Monster Hunter XX, releasing in Japan during August. Platinum Games’ unannounced title. Skyrim for Switch. FIFA for Switch. Anything for Switch that is new and fresh and keeps its sales momentum going strong. Maybe even news on its online service, voice chat phone app, classic games lineup or, gasp, Virtual Console.

 

Oh, there will be a 3DS and maybe even a mobile presence as well, but the focus HAS to be on Switch’s software and services.

 

 

The Show Floor!

Los Angeles Convention Center, Tuesday, June 13th to Thursday, June 15th

 

Finally, after all that, the show itself will take place across three long but fun days! See the map above for exact locations of big company booths, or the floor plan link here from the ESA which gives every location throughout the convention center.

 

Here’s a quick, general run-down of companies that will have some sort of presence:

 

Activision Blizzard $ATVI

What We Know: Destiny 2, Call of Duty WWII multiplayer reveal, Crash Bandicoot N. Sane Trilogy.

 

What It Should Show: Future Overwatch or Hearthstone plans. Maybe Call of Duty mobile. Next Skylanders. But really, exactly what it’s showing will be sweet!

 

Bandai Namco

What We Know: Code Vein, its vampire RPG Souls-like, which looks very cool.

 

What It Should Show: Is there any future for the Dark Souls series in light of a new game like Code Vein? Is it making any Switch games? Or just bringing classic games to the platform? Also, more information on Ni No Kuni II.

 

Capcom

What We Know: Marvel vs. Capcom: Infinite.

 

What It Should Show: Street Fighter “surprises.” Monster Hunter XX for Nintendo Switch should be there, would be nice to even get a release date for the Western version.

 

Sega/Atlus

What We Know: We actually know everything that Sega and Atlus will have on the show floor this year. Total War: Warhammer 2, Total War: Arena, Sonic Mania, Sonic Forces, Yakuza 6, 13 Sentinels: Aegis Rim. Then some Nintendo 3DS titles: Etrian Odyssey V: Beyond the Myth, Radiant Historia: Perfect Chronology and Shin Megami Tensei: Strange Journey Redux.

 

What It Should Show: Whatever it shows of Sonic Mania, it should show more, because it could be the best Sonic game in years.

 

Square Enix

What We Know: Per its blog, Square will have “developer interviews, announcements, gameplay sessions” and more. These include content for games including Final Fantasy (both new and old), Agents of Mayhem, F1 2017, Kingdom Come Deliverance, Lost Sphear, Flame vs Blaze, Dissidia Final Fantasy NT and even a concert featuring NieR.

 

What It Should Show: Shadow of the Tomb Raider? The next installment of Life is Strange.

 

Take-Two Interactive $TTWO

What We Know: Take-Two has already said it’s not showing any brand new games, so basically its existing franchises will be there: NBA2K 18 (probably even its Nintendo Switch version), WWE 2K18. Definitely some Mafia III extra content. GTA Online in some fashion.

 

What It Should Show: Red Dead Redemption 2. Borderlands 3. But these won’t. Don’t even get your hopes up.

 

THQ Nordic

What We Know: That the renamed studio will be on the show floor showing its games, both present and future. Presumably..

 

What It Should Show: Darksiders 3, Battle Chasers: Nightwar. Aquanox Deep Descent, Victor Vran.

 

Warner Bros. Interactive Entertainment

What We Know: Five games will be on display from its studios. These are Middle-Earth Shadow of War, Injustice 2, LEGO Dimensions, LEGO Worlds, LEGO Marvel Super Heroes 2.

 

What It Should Show: I mean, the obvious answer is what the next Batman game looks like especially now that Rocksteady is no longer the development studio. But that doesn’t seem likely given WB has already told us what it’s showing.

 

 

Miscellaneous

 

E3 Coliseum: Tuesday, June 13th to Wednesday, June 14th

 

What We Know: E3 Coliseum is a really cool event at LA Live organized by The Game Awards’ Geoff Keighley, featuring interviews, demos and panels. Games featured include God of War, Destiny 2, Assassin’s Creed, Dissidia Final Fantasy NT, Spider-Man, Sea of Thieves, Mortal Kombat, Far Cry 5 and Call of Duty WWII but more interestingly, the people that make them. I’m looking forward to a number of these, namely the conversation with Bungie, creators of Destiny, plus of course legendary Japanese developer Hideo Kojima himself will be making an appearance (of course!).

 

There you have it. Thanks if you made it this far, or are using this as a reference to see when each company is having its event. And to those attending the show, have fun and know I’m quite jealous. Am I missing anything that you think should be shown by one of these companies? What are you most anticipating at this year’s show? It’s an exciting time, I’ll have more comments on Twitter and some sort of post mortem once the dust settles as well.

 

Sources: ESA, Company Websites/YouTube, NeoGAF, Geoff Keighley, Gamasutra

 

-Dom

Bungie Reveals Destiny Sequel Via Images On Social Media

DomsPlaying1 Comment

 

Hi folks!

 

As you’ll notice, this is going to be a bit of a different post in that it’s mostly news. I just am excited to share that game developer Bungie, the Washington-based studio behind early games in the Halo franchise, has posted the above image on its Twitter account. This tweet officially announces the sequel to its 2014’s shared-world shooter Destiny, simply entitled: Destiny 2. Like the original, it will be published by Activision Blizzard $ATVI.

 

Two more images below were posted almost simultaneously on Destiny’s Facebook page, showing a variation on the above image then a more detailed look at the bottom half of the area featured in the other two shots.

 

 

 

 

Humor me for a moment, as these are exciting times. Astute Destiny fans will notice that these imagines actually tell us a bit more than it may seem at first glance. The Last City is depicted as being on fire and burning to the ground, assumingly from some sort of attack from an enemy faction. In the original game, The Last City is the only remaining area populated by humans but it was in-tact and not under siege. I can only presume that the player character will be the one responsible for defending The Last City from these evil-doers, or maybe bringing the fight to them in order to take revenge in the name of humanity!

 

These photos also show the Traveler, that mysterious spherical body above The Last City, is essentially unharmed at least for now and it still resides above The Last City in its usual spot. Many in the Destiny universe revere the Traveler as being a “protector” over the last inhabited city on Earth, and it seems humanity desperately needs both it and the player to defend it in the upcoming sequel.

 

 

As for more details on the game itself, no further information from Activision Blizzard or Bungie was shared. So we don’t know anything formally yet on release date, new content, trailers etc. But the indication from the leaked poster above, which surfaced last week after being allegedly leaked by a GameStop Italy employee, is that that Destiny 2 will release on Friday, September 8th later this year. This would be almost exactly 3 years after the original, and for big fans like me, a perfect opportunity for Bungie to expand on the universe it established in the first game while also enhancing all of its aspects including narrative, exploration and of course, my favorite part, its “raids” which are six-person mega-missions that usually feature puzzles, unique enemies and big bosses to overcome.

 

 

 

Lastly, another interesting part of the timing in that it’s right before Bungie kicks off the last live event in the original game’s life span: Age of Triumph. This event is basically the ultimate fan service, where the developer is offering some new quests, bringing older content up-to-date then offering new, remixed versions of gear from the early days of the game which is something players have been requesting for a while. Age of Triumph begins tomorrow, Tuesday, March 28th.

 

What about you? Did you play the original, and if so what was your final verdict on it? Are you excited for Destiny 2 or will you be passing on the game? Feel free to leave a comment, or reach out on Twitter with your thoughts.

 

Sources: Bungie, Activision, Lega Network

 

-Dom

2016 Year-In-Review: Top 3 Impactful Deals of the Year

DomsPlaying

During this Year-In-Review post, I wanted to acknowledge some of the merger and acquisition activity impacting the sectors I cover.

 

The following are three of the most “impactful” deals of 2016, which will lead the involved companies into growth areas for 2017 and beyond. Two of them revolve around mobile gaming companies and the last involves a major wireless firm with a media conglomerate in one of the largest mergers announced last year.

 

In chronological order, here are three of the deals that impacted gaming, media and technology markets in 2016:

 

 

February: Activision Blizzard completes its purchase of King Digital Entertainment PLC for $5.9 billion, allowing the major game and software publisher exposure to the ever-growing mobile market via the Candy Crush series in particular.

 

 

June: Chinese tech giant Tencent announced it is set to purchase Supercell for $8.6 billion, further strengthening its mobile dominance and expanding to markets outside of Asia with the Clash of Clans franchise among others.

 

 

October: AT&T agrees to purchase Time Warner Inc for a monumental $85.4 billion, establishing the wireless giant as a gargantuan media conglomerate with not only ownership of physical and digital distribution channels but content creators themselves such as CNN, HBO and Warner Bros.

 

Sources: King Digital Entertainment PLC, Supercell, Time Warner Inc, Wall Street Journal

 

-Dom

2016 Year-In-Review: Top 5 Influential Gaming Companies of the Year

DomsPlaying

Back again with another 2016 Year-In-Review post!

This time, let’s keep it a bit free form. I wanted to post about some of the companies that have influenced my gaming habits this year, or those that have had significant impact on the industry as a whole.

So, in alphabetical order, here are five of the most influential companies in gaming for 2016 and a quick note about each. Which companies, developers or publishers influenced your habits this year?

 

 

Activision Blizzard, Inc.

Annual Revenue: $4.6 billion

Major public publisher produced some of the year’s most recognizable and top-selling games, including Call of Duty: Infinite Warfare, World of Warcraft: Legion expansion and newcomer Overwatch.

 

 

Bethesda Softworks (Subsidiary of ZeniMax Media)

Annual Revenue: $89.2 million (Parent Company)

Independent, private publisher responsible for various notable titles in 2016, in particular: id Software’s DOOM and Arkane Studios’ Dishonored 2.

 

 

Electronic Arts

Annual Revenue: $4.4 billion

Along with its usual annual sports titles, which it continues to support with “Ultimate Team” fantasy-type modes, EA produced a pair of notable FPS games: the resurgent title in the Battlefield series, Battlefield 1, and critical darling Titanfall 2.

 

 

Sony Corp

Annual Revenue: $72.1 billion

Sony manufactures what continues to be the highest-selling console this generation, the PlayStation 4, which saw an upgraded “Pro” version in 2016 plus the firm launched its foray into virtual reality with the PlayStation VR headset.

 

 

The Pokémon Company & Niantic, Inc.

Annual Revenue: NA

TPC and Niantic were responsible for the year’s biggest gaming phenomenon in Pokémon GO, not to mention the former published two new entries in the Pokemon handheld franchise late in 2016 in Pokémon Sun and Moon.

 

 

-Dom

Analysis of Destiny’s Release Timeline, And How Will Rise of Iron Fare?

DomsPlaying

destiny-cover

 

Publisher Activision-Blizzard ($ATVI) released its shared-world space shooter Destiny back in September 2014, and the game has been on an interesting timeline ever since.

Developed by Bungie, best known for creating the early games in the Halo series, the genre-bending title started strong out of the gate by racking up around $325 million in sales (sold-through to consumers) in its first week. It overcame a well-documented difficult development cycle and mixed critical reception to become one of the most financially successful launches in the history of gaming.

In the two years since, it has garnered both praise and critique from critics and gamers alike for its mix of online elements, top-rate FPS mechanics and (most recently) cosmetic micro-transations in which players can buy in-game items for real-world dollars. Also, Activision has offered incremental paid expansions in the form of “content drops” by the names of The Dark Below, House of Wolves, The Taken King and finally Rise of Iron which is slated for release tomorrow.

 

dstny_roi_horizontal

 

Each of these expansions built on (lots would say improved) the original game as Bungie updated its economy and systems plus offered new missions and raids (multi-person, complex quests with big rewards), but also costs consumers money as gamers were charged an additional fee on top of the base game. Whether you are a fan of this trajectory or not, the game has amassed a huge following with around 30 million registered users who spend an average of 3 hours playing even years later.

To track its progress individually and overall within Activision as a whole, below I’ll offer a handful of indicators. First is an overview of the firm’s stock price since Destiny’s original release two years back. You’ll see its price in September 2014 was $23.73, and it’s now grown to around $44 per share this week. During this time, the publisher’s market value has increased by $10.9 billion.

 

activision-blizzard-stock-price-20160916

 

It’s true that there are a variety of factors that go into a firm’s share price, among them the broader economy, performance of additional products (Activision-Blizzard also publishes popular games such as Call of Duty, World of Warcraft and Overwatch), mergers such as the acquisition of King Digital and general investor sentiment, but Destiny is a key part of the publisher’s portfolio especially when it comes to generating recurring revenue. The content packs I mentioned before create a revenue stream similar to a subscription-based title like WoW, as opposed to say Overwatch where new characters and maps are offered for free and the only additional revenue comes from cosmetic items.

 

Speaking of recurring revenue, Activision as a business unit within the overall company has found a way to generate ongoing sales via its continued updates for Destiny. A snapshot below shows the unit’s revenue numbers alongside each corresponding Destiny release. General theme is that other than the year-end holidays, a Destiny release over the past two years has meant slightly more revenue than “non-Destiny” quarters. Again, caveat is that the publisher produces other games, of course, but it’s interesting to see sales aligned with an estimate time frame of when each expansion came out.

 

activision-revenue-destiny-timeline-final

 

Lastly, I’ve tracked results in the U.S. games market of the title and its expansions according to the NPD Group, a data provider for the games industry. Upon release, it was the #1 selling game in September 2014 followed by #5 in October 2014. During some of its expansions, it reemerged in the Top 10 especially during Destiny: The Taken King, as this was billed as the largest expansion yet and had the most content. Note that this only tracks the U.S. physical games market prior to a couple months back, but it gives a good sense for how games perform at release and with updated content throughout their life cycles. Destiny is one of the few titles in recent memory that has been a Top Ten regular on-and-off since late 2014.

 

destiny-npd-trend

 

With Destiny: Rise of Iron expansion planned for release tomorrow, how will it fare? Can it again capture lapsed players (including myself) and provide revenue stability? When it comes to Rise of Iron, its content is more aligned more with The Taken King than some of the smaller ones, as it offers multiple missions and the first brand new raid activity in a year. With that comes a higher price tag ($29.99) than the smaller releases of course, but this also provides upside for its sales potential.

 

In the absence of a sequel to Destiny, which isn’t expected until next year, and a release date prior to the big blockbuster releases in the same genre like Battlefield 1, Titanfall 2 and Call of Duty: Infinite Warfare, I think that Rise of Iron will perform about as well as The Taken King, with a Top 5 showing in NPD for September and Top 10 for October, and sales momentum into the 3rd quarter plus holidays that will support Activision’s segment revenue. However, I do not expect Rise of Iron to have the legs of The Taken King, as the aforementioned blockbuster titles will take gamers away and then early 2017 titles such as Horizon: Zero Dawn should overshadow it.

 

Do you think that Destiny: Rise of Iron will sell as well as Destiny: The Taken King or somehow the original game? Are you a lapsed player than plans on jumping back into the game this week? I’m interested to hear! Shoot me a note or comment here.

 

Sources: Activision-Blizzard, Bungie, NASDAQ, NPD Group

 

-Dom