Online comes home to consoles

 By Lisa Baertlein Wed May 17, 7:58 PM ET

LOS ANGELES (Reuters) - The console video game market is entering an online era that could take the $30 billion global industry to a new level, and giant software company Microsoft Corp. is leading the charge.

Microsoft's Xbox Live online service has already given gamers a taste of the future by letting them compete and chat with far-flung friends, download games and other content, adopt virtual identities and build communities of fellow gamers.

But the changes are not limited to play.

Microsoft's Xbox 360, Sony Corp (NYSE:SNE - news).'s PlayStation 3 and Nintendo Co. Ltd's Wii promise to give video game makers -- which can pay as much as $25 million to develop a new game -- new ways to make money through online services.

"An online revolution is happening ... It's an important piece of the economic puzzle going forward," said Gartner research vice president Van Baker.

Sony and Nintendo will launch their new online services later this year. Like Xbox Live, those rivals will allow game makers to sell games directly to users already familiar with buying and downloading music and video from the Internet.

Dynamic in-game advertising, made possible by high-speed Internet connections, is also expected to drive revenue by giving marketers a way to reach young male consumers who have moved away from network television and other mainstream media.

Microsoft grabbed the pole position in in-game advertising with its recent acquisition of Massive Inc., the leader in a market that is expected to reach $3 billion-plus by 2010. Console and video game makers agree that the potential is enormous, but executives at Sony and game maker Electronic Arts Inc. expect advertising to have a slower ramp-up.

At its press conference leading in to this year's Electronic Entertainment Expo (E3) in Los Angeles, Microsoft took its online strategy a step further. Chairman and co-founder

Bill Gates pitched the company's "Live Anywhere" gaming strategy -- which promises to link video game consoles, cell phones and personal computers to an online network.

EA, the world's biggest video game publisher, is making big investments to prepare for the coming transformation. Frank Gibeau, EA's executive vice president of North American publishing, said that move is based in part on the thought that online-connected consoles will alter the business.

EA, which is experimenting with download pricing, has said its digital download sales were a relatively small $10 million. But those sales are quickly becoming a meaningful contributor to EA's PC gaming business, said Gibeau.

Gibeau expects that around 40 percent of people who buy the Xbox 360, PS3 and Wii will tap the consoles' online services.

Microsoft has 3 million paying Xbox Live subscribers and aims to have 6 million by next year's E3. When you consider that analysts expect next-generation console units to hit around 150 million in this product cycle, it's easy to understand why the ranks of console-connected online gamers could explode.

Nintendo has promised that its online offerings will include a library of downloadable titles from its earlier consoles as well as popular games from the Sega Genesis. Sega Sammy Holdings Inc. is now a software company; Genesis was one of its game consoles.

Sony, which grabbed nearly 70 percent of the console market with the

PlayStation 2, says its online service will be a strong competitor to Xbox Live when it launches in November.

"We will be there," said Kaz Hirai, president and chief executive of Sony Entertainment America, who added that the company is forging content deals with a variety of providers.

Analysts and industry players expect PS3 and Wii owners to fortify the online assault started by Xbox 360 players.

"I think it's going to have a significant impact on the business," Gibeau said.

Microsoft:

E3 2006: Microsoft Media Briefing Recap

It's hard to match the hype generated by discussing yet to be released consoles, but Microsoft managed to do quite well at its media briefing today, showcasing an impressive array of titles for Xbox 360 and Games for Windows, as well as making some key announcements. Details await...

It was an interesting press conference for Microsoft. While Sony and Nintendo are busy focusing on the promises of their upcoming next-gen consoles, Microsoft's Xbox 360 has been on the market since November of last year. With that in mind, the company outlined what it has in store for 360 as well as one of the software giant's original platforms, Windows.

There were several significant announcements made during the show. Perhaps most important was the one made by Microsoft Corp. Chairman and Chief Software Architect Bill Gates, who made a surprise first-ever E3 appearance towards the end of the briefing. Gates said that he's confident that Xbox 360 will have achieved a 10 million unit head start over the PS3 by the time Sony's console launches. In the past, Microsoft's Steve Ballmer had said that whichever company gets to 10 million first will win the race. Time will tell if that proves true.

Also of importance was the unveiling of a new initiative called "Live Anywhere." As you might have guessed, Microsoft is attempting to bring Xbox Live features to other platforms, thereby providing a more unified gaming experience. Through Live Anywhere, Windows users and mobile users will be able to take advantage of the Live interface. As described by MS, "the initiative puts gamers at the center of a ubiquitous always-on world where their digital identities, games, friends and digital entertainment are always accessible through the familiar Xbox Live interface, regardless of location or device. The plan also clears the way for groundbreaking cross-platform gameplay scenarios, with participants using Windows-based PCs, mobile phones and Xbox 360 consoles to play together simultaneously."

"By opening the Xbox Live entertainment network to the entire universe of Windows and mobile gamers, we're creating unparalleled gameplay opportunities that will drive incredible growth of the online community," commented Gates. "Our vision is to deliver consistent, compelling experiences that make it easy for consumers to jump in and play, from any device at any time. It's a vision that only Microsoft can deliver."

Microsoft also discussed its renewed commitment for Games for Windows as a platform deserving of equal treatment, and they unveiled a new logo and retail initiative to put PC gaming back on the map. We spoke in depth about this Games for Windows push with Kevin Unangst, director of Global Marketing, Games for Windows—you can read that here.

Fueled by the launch of Windows Vista in January 2007, which will include the exclusive debut of DirectX 10, Games for Windows will see much more in the way of cross platform releases on both Xbox 360 and Windows. The first such game to release on both systems is the rebirth of the RPG Shadowrun from FASA Studio. Set to launch alongside Vista, the game is a "multiplayer, FPS that propels team-based combat into a new dimension with a revolutionary blend of modern weaponry and ancient magic."

"We're incredibly excited to combine the best online innovations from Xbox Live with the platform innovations for which Windows is known," said Peter Moore, corporate vice president of the Interactive Entertainment Business in the Entertainment and Devices Division at Microsoft. "Windows gamers have a lot to look forward to: Xbox Live experiences, revolutionary DirectX 10 technologies in Windows Vista and some of the best games in the world -- all on Windows."

Other anticipated Games for Windows titles include Age of Conan: Hyborian Adventures, Crysis (which was demoed by Chris Donahue, Group Manager for Windows Graphics and Gaming Technologies), Alan Wake a psychological action thriller from Remedy Entertainment, Flight Simulator X and more.

On the Xbox 360 side, Microsoft showcased an impressive array of forthcoming titles. The press conference actually began with Epic Games' CliffyB taking the stage to demo yet another amazing level of Gears of War—the game has been hyped to death, but from what we've witnessed it certainly seems like it's living up to the hype. Other noteworthy titles that were showcased either in trailer or demo form included Forza Motorsport 2, Fable 2, Viva Piñata, Too Human, Mass Effect, Splinter Cell Double Agent, Blue Dragon, Ninety-Nine Nights, Lost Planet, Crackdown, Saint's Row, Dead or Alive Xtreme 2, and Sonic the Hedgehog among others. And as expected, MS concluded the media briefing with a teaser trailer for Halo 3, which had a vague release date of "2007."

Peter Moore, reminding people of his Halo 2 tattoo, then revealed a tattoo on his other arm of Grand Theft Auto IV. That's right, Rockstar's next GTA is coming to 360 on October 16, 2007. It's not exclusive, however, and will also be released on PS3.

Xbox Live Arcade was also shown some love, as MS announced games from more publishers, including Namco, Konami, Midway, and Sega, which Moore introduced proudly. The most interesting announcement on this front, however, was Lumines Live! from Q Entertainment. The popular puzzle/music game is being transformed for Live Arcade and will offer "frenetic puzzle action married with video, music and themes from today's hottest pop culture icons." The game will feature full multiplayer play over Xbox Live, a Duel mode and more.

Finally, on the accessories front MS is preparing to release several items this holiday, including a new Xbox 360 Wireless Wheel for games like the upcoming Forza Motorsport 2, a Wireless Headset, an Xbox Live Vision video camera, a 256MB memory unit, and the previously announced external HD DVD Player, which will come packed with the Universal Media Remote. Unfortunately, MS did not put a price on the HD DVD drive, but rumors have suggested it could be as low as $100 to $200, whereas the new Toshiba HD DVD players are going for $500 or more currently.

Bottom Line:

MS hyped up the fact that Namco, Midway and a host of others are giving Live Arcade many old and new games available for download. Contra, for example, can be played on-line in co-op. MS assured us the famous code still works.:) "Live Anywhere" is a bridge between Windows, the 360 and cell phones for Live on the go. We'll see if that pans out. Although they signed Lumines for Live Arcade, previously a Sony exclusive. Also, GTA 4 will be on 360 simultaneously with the PS3, but with new, fresh and exclusive episodic content delivered to the 360 through Live. A huge bonus for MS. They announced the HD-DVD add on with no price announcement. Also, who wants to buy a whole new 360? That's the rumor, and it's not a great idea.

Forza Motorsport 2, Fable 2, Viva Piñata, Too Human, Mass Effect, Splinter Cell Double Agent, Blue Dragon, Ninety-Nine Nights, Lost Planet, Crackdown, Saint's Row, Dead or Alive Xtreme 2, and Sonic the Hedgehog among others Shadowrun and Halo 3 were shown as well. Great showing for MS, even with the threat of the PS3 looming overhead.

More Metal Gear Solid Movie news

 By Kiyoshi Takenaka Fri May 12, 9:56 PM ET

LOS ANGELES (Reuters) - Japanese video game maker Konami Corp. (9766.T) said on Friday it is looking into the possibility of striking a motion picture deal based on its blockbuster fighting game series "Metal Gear Solid."

The comment comes after "Silent Hill," a horror film based on another Konami video game series, replaced comedy spoof "Scary Movie 4" as the top choice for North American moviegoers in late April.

"We are considering it," Kazumi Kitaue, the head of Konami's North American and European operations, said in an interview with Reuters at the Electronic Entertainment Expo (E3), an annual video game industry trade show.

Who plays Solid Snake?

Anime News:

Naruto

posted on 2006-05-18 09:49:45

Naruto: Clash of Ninja 2 for Nintendo GameCube will be released in September, and Naruto: Ninja Council 2 for Game Boy Advance will be released Fall 2006, according to the latest Shonen Jump newsletter. A trailer for the GameCube game is available on Naruto.com.

Anime Explosion tonight!!