During its Gamefest event, which had its second and final day today, Microsoft's Marketplace business manager Rohan Oommen gave a presentation entitled "Xbox Live Marketplace: Future of Digital Distribution." The presentation outlined a number of statistics pointing to the success of Xbox Live Marketplace, including that 75% of Xbox Live users have downloaded content at an average of over 20 items each, making for a total of over 40 million downloads so far. Xbox Live Arcade has been successful as well, with 65% of Live users downloading content with a demo-to-full version conversion rate of 22%. By contrast, conversion rates for PC casual gaming are more in the line of 1%. Interestingly, Microsoft has found that gamers seem to respond fairly well to a variety of Live Arcade price points; games priced at 800 points ($10) and 1200 points ($15) end up making more revenue than those priced at 400 points ($5). As far as extra in-game content, according to Oommen's presentation slides, "Gamers are hungry for Game Add-on content... [it's] not coming fast enough." This segment too appears to be fairly price insensitive, as there is a "core audience for each game that downloads all add-on content for that game."

One new initiative revealed in the presentation is "Consumables." Consumables are repurchasable in-game assets delivered via Xbox Live Marketplace. They may consist, for example, of in-game currency or better equipment for the player's character. The technology behind Consumables will be added to the fall version of the Xbox 360 SDK. According to 1UP, Microsoft also hopes to make this technology directly integrated within gameplay, meaning players would be able to spend real world money on in game items without even leaving the game in question and visiting the Xbox Live Marketplace.

HardOCP claims to have gotten a look at Microsoft's Xbox 360 roadmap, consisting of a few interesting bits of rumor. According to the site, the announced external HD-DVD drive for Xbox 360 will retail for around $200 and, as previously revealed, will not make use of HDMI. Other news outlets have also cited $200 as a likely launch price for the device. This is in line with reports coming from retailers earlier this year, indicating that Microsoft plans to make the combined price of an Xbox 360 and HD-DVD drive no more expensive than that of the higher-end PS3 model.

Despite the earlier lack of comment on the part of Too Human (X360) developer Silicon Knights or publisher Microsoft regarding rumors that the upcoming action game is no longer running on Epic's Unreal Engine 3, Silicon Knights president Denis Dyack has now addressed the matter directly. Dyack denied the allegations in a statement the company has delivered to the press:

"Although we do not usually comment on speculation, rumors of Silicon Knights completely scrapping the Unreal Engine 3 on Too Human and massive delays for the Too Human product release are false. Too Human is progressing very well and we expect that gamers will be extremely excited with Too Human when we next show it."

Too Human is slated for release in the first half of 2007.

Sega today announced that one of its "vintage brands" will be returning, though the company stopped short of revealing just which brand. Planet Moon, the studio behind Infected (PSP) and Armed & Dangerous (Xbox, PC), will be returning to Sony's portable console to handle development on this title. "SEGA's vast library of properties allows for unlimited possibilities in revitalizing fan-favorites on the PSP," said Planet Moon co-founder and CEO Bob Stevenson. "Our passion for Sega's classic brands combined with our extensive background in crafting original games will help us create a compelling new chapter in this fan-favorite franchise." Sega did not give any indication as to the release period for the game.

The publisher has two other recently announced retro revivals in the works as well. Totally Games, best known for the X-Wing and TIE Fighter franchises and more recently Secret Weapons Over Normandy (PS2, Xbox, PC), is working on a new version of an unrevealed Sega IP, and Secret Level (Final Fight: Streetwise) is heading up a new Golden Axe game for Xbox 360 and PS3.

In a recent GameSpy interview, Will Wright claimed that his upcoming sim-everything game Spore (PC) is in development for not just PC, but "all platforms," though the PC version will be released first. Presumably, since the game is not expected until 2007, this means it will appear on the next generation platforms (which, by that time, we can finally refer to as "current generation platforms" or, even better, "platforms") PlayStation 3, Xbox 360, and Wii. However, given publisher EA's general multiplatform tendencies as well as the high expectations no doubt accompanying a new game by the maker of the phenominally successful The Sims, it may be in development for current generation systems as well.

In related news, several months ago, a job listing surfaced, calling for a designer to supervise portable versions of Spore. This almost certainly refers to DS and PSP, as well as potentially GBA. Wright noted that the game is coming to cell phones in some form as well.

Here's a bit of news that came out last week during the hustle and bustle of E3, that you may have missed (I did! Whoops.). Atari announced that it has acquired the "online and handheld rights" to the classic platforming character Earthworm Jim, originally developed by Shiny Entertainment in the mid-90s. The press release is quite vague about just which platforms are included in those rights, at some point implying next-generation home consoles and at other points not. Atari expects to develop several games in the franchise over the next five years. First up is a game for "next-generation handheld systems" (PSP? DS? N-Gage? Gizmondo?) being developed by Shiny.

After massive corporate restructuring, publisher Majesco stated that it will be shifting its focus to portable gaming, but it seems that it will be making a few exceptions. In an extremely short press release, Majesco announced that it will be releasing a Bust-A-Move (aka Puzzle Bobble) game for Wii in early 2007. The game is called Bust-A-Move Revolution, hanging onto the former codename of Nintendo's upcoming system. Bust-A-Move's gameplay, which hinges on precision aiming, seems well suited to the system's pointer-like controller.

This upcoming game is described as the "first of several titles" from Majesco for Wii, though no others are named.

Speaking of Shiny Entertainment, founder Dave Perry left the studio earlier this year in an attempt to drum up interest on the part of another publisher to buy Shiny from current owner Atari. In the meantime, it looks like's decided to start up a consulting firm. GameConsultants.COM, billed as providing "Executive Video Game Industry Advice," is apparently already talking with investment companies and hardware and software developers as to "how to position strategic projects for the US market."

In a recent interview, Grasshopper Manufacture head Goichi Suda revealed that his game for Wii, which had been previously mentioned but not revealed in any way, is currently going by the name Heroes. Rumors prior to E3 suggested that the game would be shown at E3 in trailer form, and it appears even Suda himself thought that was to be the case; in the interview, he admits he is not sure why the game was absent. A trailer should be forthcoming this summer.

Suda and Grasshopper are best known for the unapologetically insane Killer7 (PS2, GCN) as well as the recent Samurai Champloo: Sidetracked (PS2) and the upcoming Contact (NDS).

IGN chats with three developers on Metroid Prime 3: Corruption (Wii), director Mark Pacini, manager Kensuke Tanabe, and senior producer Bryan Walker.

On the previews front, everybody is still finishing up assorted E3 coverage. If you're interested, check that out at Game Informer, GameSpot, Eurogamer, IGN, GameSpy, and surely others.

Nintendo marketing VP Reggie Fils-Aime made several announcements at the D.I.C.E. Summit (Design, Innovate, Create, and Entertain) regarding the Nintendo DS portable console. First up is the new DS Download Service to be hosted in US gaming retailers such as GameStop, EB Games, and Game Crazy. The company is also in talks with non-specialty retailers such as Target and and Wal-Mart. Much like Nintendo's wireless download hubs at events such as E3, the service will allow DS owners to download game demos or other content directly onto their systems. The downloaded demo is stored in RAM and is removed when the system is turned off. Fortunately, the DS features a standby mode. I kept an Electroplankton demo in a DS for days at E3 simply by putting the machine into standby rather than turning it off.

When the service launches, it will offer demos of Tetris DS, Brain Age, Mario Kart DS, Meteos, True Swing Golf, and Pokemon Trozei, and a video of Metroid Prime Hunters. The selection will rotate each quarter. Fils-Aime also indicated that, as in Japan, content download capability will eventually expand beyond the retail space.

Further justifying Metroid Prime Hunters' incredibly long release delay, Nintendo also announced that the game will feature voice chat in the game's pre- and post-game lobby, though not during gameplay. The main uses for the chat feature seem to be deciding on game settings (a marked improvement from Mario Kart DS' blind setup) and "discussing" the prior battle. Though it was not specifically mentioned, the DS' double input/output headset port can presumably be used for voice chat. Perhaps the company will finally release a Nintendo-branded headset.

The recently announced DS Lite was also mentioned, and its March 2 Japanese release date reiterated, but there is still no word of release dates for non-Japanese territories.

Unsurprisingly, no Revolution news was announced. With the recent news that Nintendo president Satoru Iwata will be keynoting at GDC, it looks like we'll have to wait until then for more on the console.

Press release

According to translated reports from Chinese-language publication The Commercial Times, Sony plans to make a big showing at the upcoming Taipei Game Show, which runs from February 16-20. The company's next-gen console will be featured at the event and apparently given a full 25% of the booth space. Given Sony's propensity to have enormous floor presence at these sorts of expos, that may be a large space indeed. It's certainly a far cry from the lip service Sony paid to the machine at the recent CES 2006 in Las Vegas.

It's difficult to tell how much Sony is really planning to reveal, however. Taipei Game Show is certainly no E3 (nor is it a CES or a TGS--the Tokyo Game Show, that is) but the company did state late last year that it plans to reveal more about PS3 in another show prior to E3, which turned out not to be CES, contrary to the expectations of many. Sony may be using this show mainly to diffuse some of the hype from Xbox 360, which launches in Taiwan and several other territories next month. Unless Sony runs a private event, the other biggest thing between now and E3 is Game Developers Conference.

In keeping with the dropping profits from fellow publishers, Atari posted some disappointing financial results for its third fiscal quarter, coming up far short of expectations. The company saw a 36% drop in revenue from $156.4M to $100.8M year over year. In a market that has already been seeing some tough times lately, Atari released fewer titles than usual, impacting the bottom line even more. It was also announced that CFO Diane Baker resigned, effective immediately. "The uncertainties caused by these conditions raise substantial doubt about [Atari's] ability to continue as a going concern," the company stated. Atari plans to put a higher emphasis on software for Nintendo DS and Sony's PSP, given the enormous surge in market share seen by portable systems over the last year.

Following the announcement, Atari shares dropped from a closing price of $0.88 to $8.63 in after-hours trading.

Unlike many of its publishing brethren, Capcom had a very positive third quarter this year, posting an astonishing 418% increase in net profits over the prior year, at 7.4B yen ($62M). While the company saw significant tax breaks this year, positively impacting its bottom line, it also saw a 13% increase in revenue. Capcom's acclaimed Resident Evil 4 (PS2, GCN) has sold 3 million copies, with titles such as Mega Man Battle Network 6 (GBA) and Monster Hunter PSP also contributing to the publisher's success. To be fair, Capcom also faces a strengthening Japanese economy whereas US publishers are currently dealing with a sluggish home console market.

EA sends along a Q&A with world designer Steven Smith regarding the New Jersey section of The Godfather (PS2, Xbox, X360, PSP, PC).

Gamasutra has coverage of the D.I.C.E. address from Nintendo's Reggie Fils-Aime and GameSpot has coverage of the talks by Fils-Aime as well as Sony's David Jaffe (God of War).

GameSpot has a designer diary for Reflections' Driver: Parallel Lines (PS2, Xbox, PSP).

Microsoft has been very vocal about its plan to supply plenty of Xbox 360 units when the machine is released in November, ensuring a lack of widespread shortages. However, the always-informative Chris Morris over at CNN/Money is reporting that the company may be running into problems generating enough supply. Multiple analyst firms have lowered their estimates of how many units the manufacturer will ship. The hope has been that Microsoft will get over two million consoles out worldwide in 2005, but American Technology Research's P. J. McNealy believes Microsoft will hit between 1.8 million and 2 million, while Banc of America's Gary Cooper expects only 1.4 million to 1.6 million. With Microsoft planning on a global launch, a shortage of supply would be even more detrimental, since the initial batch of consoles must be divided among the various territories. Many retailers are already taking advantage of the situation by requiring customers to purchase the 360 as part of a larger bundle.

When questioned about manufacturing numbers in an X05 roundtable interview, Microsoft Chief XNA Architect J Allard responded, "We have a term for this. It's a very technical term. It's called a very hard problem. It's just hard. I can't comment on numbers at all. You can try all you want. I'm not going to give you any numbers partly because we're only in the beginnings of manufacturing and the rate that we're aiming for is very, very steep."

Microsoft's ever-outspoken Chief XNA Architect J Allard has spoken his mind regarding Nintendo's Revolution controller, indicating that he himself thought of a similar concept four years ago, and determined that "there wasn't that much enthusiasm around it" from gamers and developers. He does not seem concerned with whether the actual execution of the idea has anything to do with its reception. Though he does think Nintendo will find uses for the controller in its first party games, he notes, "I don't think most Electronic Arts games are going to be played with that thing." Allard went on to incisively question "How am I going to watch a movie on Revolution [using its controller]?" Engineers at Nintendo were heard to exclaim, "Shit! That's the type of thing we didn't take into consideration!"

He then claimed that customers want choice, which is why the dual pricing scheme for Xbox is a sound decision, though he asks, "Are there developers who are disappointed?" and answers, "Yeah, sure." He contrasts Microsoft's approach with Apple's non-upgradable iPod strategy. Allard explained that iPod Shuffle owners are "screwed" if they want an iPod Photo. The architect also reassured customers that "There isn't a game on 360 that you can't play without a hard drive," apparently forgetting about Final Fantasy XI and, presumably, any other upcoming MMOs. However, it seems he is technically correct in that the Xbox 360 version of Final Fantasy XI does not actually exist yet.

In another interview, Allard admitted that "What we learned with Halo [2] is you don't ship a game before it's ready." He then hastily added, "Not that we shipped a game before it's ready, but because we were very wise to wait until November. I put in the capabilities that we wanted." Good save there, Allard, putting in those capabilities. I've always said he's a wise guy. Also, thanks to Bungie for actually making the game.

Though there's not much news about it yet, Microsoft's Peter Moore revealed that gamers can expect a list of Xbox 360-compatible Xbox games in about two weeks. As previously stated, a certain number of "bestselling" Xbox games will have 360 compatibility code preloaded onto the 360's hard drive. Moore also reiterated that Microsoft will continue to release backwards compatibility patches for other games, "Until consumers show lack of interest--then we will move on."

Moore stated that the backwards compatibility team is progressing well.

Today, California Governor Arnold Schwarzenegger signed into law a bill which will legally prohibit sales of particularly violent games to minors. The governor had not previously indicated whether he was in support of or against the bill. Today, he explained, "I am a big believer in those video games. I mean they're terrific, a lot of them are manufactured in California and they're doing a great job. We just want to make sure it doesn't go into the wrong hands or children under the age of 10 start playing those things because it does have an impact on our children." He did not address the issue of children between the ages of 11 and 17, though his signing of the bill would indicate he is against certain games going into their hands as well.

According to the bill, "exposing minors to depictions of violence in video games, including sexual and heinous violence, makes those minors more likely to experience feelings of aggression, to experience a reduction of activity in the frontal lobes of the brain, and to exhibit violent antisocial or aggressive behavior." The law will take effect January 1, 2006. The Entertainment Software Association plans to launch a lawsuit in opposition to the new law.

Pointing to falling GameCube performance in North America, Nintendo announced a 6.9% sales drop in the first quarter over last year's results. The company also cited high research and development costs on its upcoming Revolution console as a contributor to slimmer profit margins. However, strong DS performance and the weak Yen have led Nintendo to keep its revenue forecast unchanged and raise its profit estimates substantially.

The two biggest gaming retail chains, GameStop and Electronics Boutique, have completed their long in the works merger after shareholders, as expected, approved the transaction. The deal will become set in stone this weekend, and the resulting company will keep the name GameStop Corp. The company is far and away the biggest presence in the used game market, but Best Buy, which is controlling a growing part of the overall gaming retail market, was recently determined to be moving into used game sales.

Marek Bronstring of Idle Thumbs delivers his X05 game impressions, covering Ubisoft's Peter Jackson's Michel Ancel's King Kong (PS2, Xbox, GCN, X360, PC), Bethesda's The Elder Scrolls IV: Oblivion (X360, PC), Epic's Gears of War (X360), and Bioware's Mass Effect (X360).

IGN has a developer interview on Creative Assembly's Spartan: Total Warrior (PS2, Xbox, GCN).