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Reuters: Era of Exclusive Video Game Deals Ending

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FrankT

Member
LOS ANGELES (Reuters) - Rising development costs might force console makers Microsoft and Sony to publish more video games themselves, as independent studios avoid exclusive deals for blockbusters.

The fortunes of the hardware makers have turned on whether they can attract exclusive hit video games, driving fans to buy their consoles. But increasingly, the companies behind the PlayStation 3 and Xbox 360 will have to fund their own games if they want publishing rights to a game their rivals cannot get.

Konami June release of "Metal Gear Solid 4," a game franchise exclusive to Sony's PS3, helped narrow the gap between Nintendo's Wii console and the PS3. The units of PS3 consoles sold hit a record for a non- holiday month, according to NPD research group.

But Wedbush Morgan video game analyst Michael Pachter forecasts that independent studio exclusives such as the "Metal Gear Solid" series will disappear from store shelves as soon as next year.

"The cost of making a game is so high that you need to recover it by selling a lot more units," said Pachter. "You can't give up half the market by selling exclusives."

A software maker has to foot a bill of about $20 million to $50 million (11 million to 27 million pounds) to make a game.

Sony has traditionally beaten Microsoft at securing popular game franchises for the PlayStation console. Take Two Interactive Software "Grand Theft Auto" series and Eidos Interactive's "Lara Croft: Tomb Raider" games both originally were tied to the PlayStation.

But "Grand Theft Auto IV" was launched simultaneously on the PS3 and Xbox in April. Microsoft dealt another blow when the company announced during July's E3 video game industry conference that the upcoming "Final Fantasy XII" game by Square Enix will be released for the first time on the Xbox.

The "Final Fantasy" franchise had been a PlayStation-only exclusive since 1997.

"It's a trend we're excited about, but not completely surprised about if you look at the installed base and attached rate (of customers to the Xbox)," said Microsoft spokesman David Dennis. "Third party (publishers) are looking at the same things we are and they want to put games into as many people's hands as possible."

Exclusive games are not only pricier for independent studios to make than in the past, but analysts say it's hard for them to commit to one console since the Xbox 360 now rivals the PS3 for sales, unlike in previous generations.

The Xbox 360, with a year's head start in sales, has sold over 19 million units globally compared with 14 million PS3 units, according to data from the two companies. U.S. sales of the Xbox 360 and PS3 are 10.7 million and 5 million units, respectively.

"The lack of a dominant console means it's too difficult (for software makers) to give up on a console," said BMO Capital Markets analyst Ed Williams. "With the PS3 or Xbox 360, you don't have a clear winner like the PlayStation 2 or PlayStation were."

With exclusive games fading, console makers will have to depend on games developed within their own studios instead.

"The reality of exclusives is that they will become far more infrequent. The way hardware companies have to offset that is through enhancing the quality of games coming through their own studios that will drive customers to buy their own hardware system," said Williams.

Lazard Capital Markets analyst Colin Sebastian agreed that Microsoft and Sony would focus more on making games. He identified Microsoft's flagship "Halo" franchise as one of the company's biggest blockbusters that will continue to spike sales of the Xbox.

"People were buying the Xbox in anticipation of Halo 3," Sebastian said of the game's release last September

Sony expects that its studio's release in October of "Little Big Planet" will be positive for PS3 sales during the fall and holiday season.

Still, some analysts say exclusives are not gone for good. Software makers can also give a head start to one console. Microsoft has secured the September release of "Rock Band 2" by Electronic Arts, Harmonix and Viacom Inc's (VIAb.N: Quote, Profile, Research) MTV Games, on the Xbox -- months ahead of versions for the PS3 and Nintendo Co Ltd's (7974.OS: Quote, Profile, Research) Wii console.

"Relationships with console manufacturers is important to all third party publishers," said Sterne Agee analyst Arvind Bhatia. "Deals are being done less and less, but they're not dead."

http://uk.reuters.com/article/reutersEdge/idUKCAS72633720080827?pageNumber=1&virtualBrandChannel=0
 

Joe Molotov

Member
But "Grand Theft Auto IV" was launched simultaneously on the PS3 and Xbox in April. Microsoft dealt another blow when the company announced during July's E3 video game industry conference that the upcoming "Final Fantasy XII" game by Square Enix will be released for the first time on the Xbox.

Final Fantasy 12 coming to the Xbox, you read it here first!
 

pswii60

Member
I don't think it's just because game budgets are rising, it's because the SCE/MS market is now basically split down the middle. PS3 has the momentum at the moment, but 360 has the more substantial userbase, mainly in the US. And who knows how things will change in the future? PS3 and 360 sales have been particularly unpredictable so far. To give either console an exclusive could essentially split your sales in half.

Meanwhile, Wii is getting a large number of (not particularly good) third party exclusives by default. But it isn't getting many of the decent 360/PS3 games by default either, something obvious that analysts miss when talking about 'exclusives'. Although, meanwhile, Wii is still selling like hotcakes.
 

AmMortal

Banned
pswii60 said:
I don't think it's just because game budgets are rising, it's because the SCE/MS market is now basically split down the middle. PS3 has the momentum at the moment, but 360 has the more substantial userbase, mainly in the US. And who knows how things will change in the future? PS3 and 360 sales have been particularly unpredictable so far. To give either console an exclusive could essentially split your sales in half.


This.
 
"The lack of a dominant console means it's too difficult (for software makers) to give up on a console," said BMO Capital Markets analyst Ed Williams. "With the PS3 or Xbox 360, you don't have a clear winner like the PlayStation 2 or PlayStation were."

Trolling? Or just ignorant of who the market leader is?
 

BeEatNU

WORLDSTAAAAAAR
pswii60 said:
I don't think it's just because game budgets are rising, it's because the SCE/MS market is now basically split down the middle. PS3 has the momentum at the moment, but 360 has the more substantial userbase, mainly in the US. And who knows how things will change in the future? PS3 and 360 sales have been particularly unpredictable so far. To give either console an exclusive could essentially split your sales in half.


MFT!
 

Belgand

Member
Microsoft has secured the September release of "Rock Band 2" by Electronic Arts, Harmonix and Viacom Inc's MTV Games, on the Xbox -- months ahead of versions for the PS3 and Nintendo Co Ltd's Wii console.

I think it will be two months for the Wii, but only one for the PS3. Not exactly a commanding lead. Saying they'll have it "months" in advance is really overstating the point.

A better example would have been GTAIV. We all knew it was coming for the PC, but the PC version wasn't officially announced until the console version had been out for months and the PC version will be releasing about 9 months to 1 year after the consoles. Much as it has been for the series since GTAIII.
 
Panajev2001a said:
Tomb Raider exclusive to PSOne? I recall it on PC and Saturn too...

Grand Theft Auto also started out as a PC game. I'm actually stunned that Pachter was able to talk about the PS3 without using the words "Blu-ray". That's a first I think.
 
farnham said:
Final Fantasy IV on DS launched just days ago :lol :lol :lol

Its fairly obvious they're talking about new games in the series since 1997, not ports of SNES games. Aside from the blips of FF7 PC and FFXI PC/360, the main series hasn't even sniffed a console other than PSOne or PS2. But everyone here already knows that.

The sentiments of this article were obvious the day Sony and MS went into their first HTH holiday priced over $400-500 dollars apiece. Unless they're cutting you a side deal on licensing, funding development, or publishing, it's pure insanity to leave all that money on the table when you look at the sales of COD4, Assassins Creed, GTAIV, Soul Calibur 4, or DMC4.
 

Daante

Member
Noting new here imo. AAA titels these days generally takes long time to develop and often costs alot to do. So kinda simple logic that the makers choose to make the game for several platforms , hence get the best opporunity to earn the most money.

I would love to hear what kind of contract the developers sign these days with the compays to make the game exclusive for that system.
 

Stop It

Perfectly able to grasp the inherent value of the fishing game.
Farnack said:
Omg where can I find final fantasy 6 for Playstation consoles!
If you're in a PAL Region the game was released standalone in 2002, if you in the US, it was released as part of the FF Anthology.

Anywho, console exclusives will exist as long as there are more than one console on the market. One of the main selling points of a console are exclusives, so I don't see how they will die out just yet. Also, Moneyhats.
 

Jocchan

Ὁ μεμβερος -ου
Stop It said:
Anywho, console exclusives will exist as long as there are more than one console on the market. One of the main selling points of a console are exclusives, so I don't see how they will die out just yet. Also, Moneyhats.
If by "console exclusives" you mean "first party titles", then I agree with you.
 

freddy

Banned
Some of these these analysts are just coming off as pathetic really. Let's all ignore the Wii and it might go away. Funny stuff.
 

Stop It

Perfectly able to grasp the inherent value of the fishing game.
Jocchan said:
If by "console exclusives" you mean "first party titles", then I agree with you.
Yeah, By and large, but there will still be major 3rd party devs that sign to a certain console maker. A good example in that regard is Insomniac, they are not a Sony studio, yet you wont find them make any games for anyone else. With that said however, I do see 3rd party exclusives becoming very rare from this generation onwards.
 

Woo-Fu

Banned
titiklabingapat said:
They always forget about the Wii.

Eh, Nintendo makes its own exclusives and pretty much always has---during those generations where it had real competition. In light of that this ending of an era doesn't really apply to them as they never were in the habit of buying exclusives in the first place.
 

FrankT

Member
pswii60 said:
I don't think it's just because game budgets are rising, it's because the SCE/MS market is now basically split down the middle. PS3 has the momentum at the moment, but 360 has the more substantial userbase, mainly in the US. And who knows how things will change in the future? PS3 and 360 sales have been particularly unpredictable so far. To give either console an exclusive could essentially split your sales in half.

Meanwhile, Wii is getting a large number of (not particularly good) third party exclusives by default. But it isn't getting many of the decent 360/PS3 games by default either, something obvious that analysts miss when talking about 'exclusives'. Although, meanwhile, Wii is still selling like hotcakes.

More or less, yes.
 
Woo-Fu said:
Eh, Nintendo makes its own exclusives and pretty much always has---during those generations where it had real competition. In light of that this ending of an era doesn't really apply to them as they never were in the habit of buying exclusives in the first place.

Funny thing is, the Wii has the most third party exclusives this gen. Shovelware not included.
 

Haunted

Member
It's obvious they're talking about second place here, it's a well known fact that the Wii has received the most third party exclusives this gen.


With the massive cost associated with creating an HD game, multiplatform (PC - PS3 - 360) titles are the norm. EA and Activision didn't become the two biggest third party publishers by handing out exclusives.
 

Mahadev

Member
Woo-Fu said:
Eh, Nintendo makes its own exclusives and pretty much always has---during those generations where it had real competition. In light of that this ending of an era doesn't really apply to them as they never were in the habit of buying exclusives in the first place.

Plus Sony and Microsoft respectively have more quality first party exclusives than Nintendo this generation. This isn't about 1st party games though it's about third party games.
 
i guess sony was somewhat justified in strengthening their first party this gen.

however, this situation would not exist if sony would have gotten their act together sooner or if the 360 was greatly outpacing the PS3. The PS3 is now not really that far behind the 360 and its sales are outpacing it in 2 of the 3 major regions.

i believe exclusives will become really rare for awhile but will come back once the systems are at the sub $300 dollar level ($299 doesnt count). at that point, more people will buy system therefore making exclusives more fesible
 

Mahadev

Member
Haunted said:
It's obvious they're talking about second place here, it's a well known fact that the Wii has received the most third party exclusives this gen.

14o0ohz.jpg


Wii has received the least third party support. While great games are not exclusive because they're in both 360 and PS3 the Wii lacks these games and on the same time has a big lineup of mediocre or shovelware exclusives. The fact that Zack & Wiki is demonstrated as one on the best Wii exclusives proves that imo.
 

Woo-Fu

Banned
Jaded Alyx said:
Funny thing is, the Wii has the most third party exclusives this gen. Shovelware not included.

...and how many of them did they buy? I'm thinking the answer to that is probably "none".
 

Opiate

Member
pswii60 said:
I don't think it's just because game budgets are rising, it's because the SCE/MS market is now basically split down the middle. PS3 has the momentum at the moment, but 360 has the more substantial userbase, mainly in the US. And who knows how things will change in the future? PS3 and 360 sales have been particularly unpredictable so far. To give either console an exclusive could essentially split your sales in half.

Meanwhile, Wii is getting a large number of (not particularly good) third party exclusives by default. But it isn't getting many of the decent 360/PS3 games by default either, something obvious that analysts miss when talking about 'exclusives'. Although, meanwhile, Wii is still selling like hotcakes.

Almost entirely agree with this. If the market split between Sony/MS was still 5:1 in Sony's favor, we'd probably still be seeing some exclusives these days. There's no question that increasing costs exacerbate the issue, but marketshare is hugely important too. Consider, for example, if Microsoft dropped out, literally leaving them with 0% marketshare: obviously then Sony would have exclusives again. Lots of them, including expensive ones (please note I'm not actually suggesting this will happen. It's only intended to clarify the point).

And it still amazes me that articles like this can pop up and have virtually no mention of the Wii (outside of mentioning the hardware sales), when the Wii appears to be on track to have more exclusives than the Playstation 2 did. Many of them awful, as PSwii60 has mentioned, but you'd figure that could be mentioned somewhere.
 

Woo-Fu

Banned
Mahadev said:
Plus Sony and Microsoft respectively have more quality first party exclusives than Nintendo this generation. This isn't about 1st party games though it's about third party games.

Not exactly.

The title of the thread contains, "exclusive video game deals". My original point being that Nintendo has never been in the practice of making such deals in the first place so this "era" that is ending was not something that involved them.

Nintendo is a horse of a different color, pretty much always has been.
 

Y2Kev

TLG Fan Caretaker Est. 2009
Wii has received far and away the most exclusive games. Go look at the GameFly coming soon release list or something. It's just that a good 95% of those games are absolute trash.

Here's a list of upcoming Wii Exclusives from third parties:

Pajama Sam in Don't Fear the Dark
Ford Off Road Racing
Freddi Fish: Kelp Seed Mystery
Spy Fox in Dry Cereal
Kidz Sports: Crazy Golf
Ferrari Challenge Trofeo Pirelli
Rapala Fishing Frenzy
Defendin' De Penguin
Cabela's Legendary Adventures
Hell's Kitchen
The Price is Right
Igor
Harvest Moon: Tree of Tranquility
Zoo Hospital
SimCity Creator
de Blob
Pipe Mania
Brothers in Arms: Double Time
Samba De Amigo
Lost in Blue: Shipwrecked
Cabela's Dangerous Hunts 2009
Pitfall: The Big Adventure
Carnival Games: Mini-Golf
We Cheer

And that's just for September!
 

Opiate

Member
Woo-Fu said:
Not exactly.

The title of the thread contains, "exclusive video game deals". My original point being that Nintendo has never been in the practice of making such deals in the first place so this "era" that is ending was not something that involved them.

Nintendo is a horse of a different color, pretty much always has been.

This is an important point too, and probably justifies not mentioning the Wii. In Neogaf lingo, this thread isn't actually about exclusive titles ceasing to exist, it's about moneyhats ceasing to exist, simply because the cost of moneyhatting has exceeded the sales justification.

Since Nintendo has largely shyed away from providing financial incentives to third parties, it's natural that they wouldn't be the focus of such discussions.

But there are some incongruities in the article. While the title specifically refers to "exclusive game deals," portions of the article seem to be talking about exclusives in general. And then you have lines like this:

article said:
"The lack of a dominant console means it's too difficult (for software makers) to give up on a console," said BMO Capital Markets analyst Ed Williams. "With the PS3 or Xbox 360, you don't have a clear winner like the PlayStation 2 or PlayStation were."

While I might argue that Nintendo can be ignored in discussions of moneyhats, they cannot be ignored in sentences like the one above. That just looks silly to a savvy reader.
 

Y2Kev

TLG Fan Caretaker Est. 2009
Grecco said:
Stuff like Rapala Fishing Frenzy and the Cabela games are on X360 too
Are they? I didn't see them on the list. I probably missed them. Still, lots of support.
 
Hmm... I'd say that for Western developers, it was last gen that really saw this begin to happen. Some Western games were exclusive last gen, but the vast majority were on at least two of the three major systems, to a much greater degree than the generations before. Japanese games were more frequently exclusive, though, and that seems to be what's changing now...

This gen is a bit different of course, with the major Western titles being PS3/PC/X360, while Wii games are either exclusive, all-system, or also on PS2 or something... but the major Western titles are mostly not on Wii. Just the small stuff is, as that list shows. But thanks to the Wii's unique controls and design, it's harder to just port its games to other systems without repercussions... that is the main issue with this theory -- what about the Wii? With the PS3 and X360 it's pretty clear that most third party titles are and will be on both systems (and some will be on PC too), but saying that "the era of exclusive videogames is ending" while you ignore the fact that that is NOT true for the leading console, only the ones that trail it, really is a pretty flawed argument.

More than anything, it shows how the PS3 and X360 are similar systems, and that because of the size of the budgets of modern titles, developers need the largest market possible to try to make money off of these games... and with neither one winning, like the Wii is, they need to support both. But just looking at that Wii lineup shows how silly it is to say "the era of exclusives is ending". Overall, it isn't. It only is for major, expensive PS3 and Xbox 360 titles. Writing an article like that without really mentioning the market leading console, a system that sort of proves your entire thesis wrong, is kind of ridiculous.

Woo-Fu said:
Not exactly.

The title of the thread contains, "exclusive video game deals". My original point being that Nintendo has never been in the practice of making such deals in the first place so this "era" that is ending was not something that involved them.

Nintendo is a horse of a different color, pretty much always has been.

True, but even so, I think that any discussion of the subject is quite incomplete if you only talk about paid exclusives and not all of them... and Nintendo does sometimes pay for the development of exclusives -- Star Fox Assault, F-Zero GX, Baten Kaitos II, etc...

Panajev2001a said:
Tomb Raider exclusive to PSOne? I recall it on PC and Saturn too...

Sony paid off Core Designs to make Tomb Raiders 2 and 3 not appear on Saturn or N64; those games were PSX and PC only. That's likely what was being referred to, behind their incorrect assumption that it was a Playstation series to start... because yes, the first one was on Saturn too, as well as PSX and PC. In fact, Tomb Raider 1 actually started development on Saturn first...

And yeah, GTA was PC first. But on consoles, GTA1 was Playstation-exclusive (GTA2 was on PC and Dreamcast too, of course, and 3 eventually had ports).

Even so though, it is true that both of those franchises came to be identified with the Playstation brand, and both did have titles that generation that didn't show up on other consoles. So in general there is truth to the claim, though they get the details wrong.

The "Final Fantasy" franchise had been a PlayStation-only exclusive since 1997.

That one is harder to defend, for sure, if you mean the whole franchise (which is of course on many platforms), but if they just mean "the main, numbered titles", it is true that FF7 through 12 were PSX/PS2-only, apart from the PC versions of 7 and 8 and XI Online on the PC and X360... and that was an MMO so it could be counted separately.
 

FrankT

Member
Y2Kev said:
Wii has received far and away the most exclusive games. Go look at the GameFly coming soon release list or something. It's just that a good 95% of those games are absolute trash.

Here's a list of upcoming Wii Exclusives from third parties:

Pajama Sam in Don't Fear the Dark
Ford Off Road Racing
Freddi Fish: Kelp Seed Mystery
Spy Fox in Dry Cereal
Kidz Sports: Crazy Golf
Ferrari Challenge Trofeo Pirelli
Rapala Fishing Frenzy
Defendin' De Penguin
Cabela's Legendary Adventures
Hell's Kitchen
The Price is Right
Igor
Harvest Moon: Tree of Tranquility
Zoo Hospital
SimCity Creator
de Blob
Pipe Mania
Brothers in Arms: Double Time
Samba De Amigo
Lost in Blue: Shipwrecked
Cabela's Dangerous Hunts 2009
Pitfall: The Big Adventure
Carnival Games: Mini-Golf
We Cheer

And that's just for September!


Do not want.
 
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