Sony Is Looking At Games, VR And Robots For Its Future

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In an effort to make its company profitable again, Sony has started making more moves into the tech field, while at the same time retaining a huge focus on its gaming division.

During a recent press conference, chief executive Kaz Hirai explained that Sony was raising its sales target for the forthcoming year in the games division, pinning a great amount of potential success on its forthcoming PlayStation VR headset.

Hirai explained that the company’s biggest growth will lean on games, thanks in part to continuously strong sales of the PS4, as well as an increase in subscribers to its PlayStation Plus program and significant game sales, including its recently released Uncharted 4: A Thief’s End.

But a lot of anticipation is going into the PlayStation VR, which will launch this October for $399—a much lower price than other competitors. “It’s an area where Sony can leverage its expertise in cameras, filming, content production as well as entertainment assets,” noted Hirai, per Reuters. As a result, the company lifted its sales targets from 1.8 trillion yen ($17.6 billion) to 1.9 trillion yen ($18.6 billion).

In addition, Sony is also returning to another technological field—robots. The company thrived in robotic engineering in the late 90’s and the beginning of the millennium, with products like the robotic dog AIBO and humanoid QRIO. Those both ceased production in 2006 due to lack of interest in the market, but Sony has since regenerated that.

Hirai noted that the company has plans to create a robot “capable of forming an emotional bond,” but wouldn’t divulge too many other details. It’s unknown when Sony’s robotic project will come out.

For the time being, Sony’s focus will continue to be on games, with anticipated titles like No Man’s Sky and The Last Guardian set for big fall releases. The PlayStation VR will get a huge push as well, with a library of original titles like Rez Infinite and VR Worlds to draw players in.

How it will fare against the competition, like the Oculus Rift and HTC Vive, is still to be determined, but its compatibility with the PlayStation 4 (even with the need for accessories like a camera and the PlayStation Move controller) should make it an easily accepted device—and perhaps another big seller for the company.

Digital Advertising Revenues Expected To Reach $285 Billion In Four Years

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While digital advertising continues to surge ahead, there’s no question that ad-blocking continues to be quite a hindrance.

A new report posted by Juniper Research, Worldwide Digital Advertising: 2016-2020, notes that digital advertising revenues are expected to go double the amount over the next few years, reaching a spectacular $285 billion by 2020.

However, it’s not as high as it could have been, as the report also notes that ad-blocking will also continue to be on the rise. As a result, they are expected to cost publishers $27 billion in lost revenues in roughly the same time frame.

Juniper has also published a white paper, Digital Advertisers vs. The Ad Blockers, that goes into more detail. That $285 billion number is expected to come from a number of devices, including mobile, wearable and online-compatible electronics. It also noted that it’s a tremendous jump from the $160 billion it’s expected to see this year. The paper also noted that mobile advertising will also see an increase in CAGR (Compound Annual Growth Rate) by 64.2 percent over the previous forecast period, with more people turning to smartphones and tablets as their go-to Internet devices.

But ad-blocking still casts a shadow on the report, with more people using these services and creating a loss in revenue by 70.2 percent in the next few years. “Adoption (of ad-blockers) is being driven by consumer concerns over mobile data usage and privacy,” noted Sam Barker, author of the research report. “They are also incentivized to adopt the technology in order to reduce page load times.” The report made note that the average user of ad-blocking is between the age of 18-29, with female millennials more likely to use the service.

However, digital advertising will continue to be on the rise as “better audience targeting will drive higher click through rates and increase publisher revenues,” noted Barker. “Publishers, such as Facebook, are utilizing their unprecedented audience knowledge to offer advertisers highly accurate targeting, thereby increasing the click-through rates that advertisers are witnessing now.”

The report best suggests to companies that it should try developing a strategy that will help engage consumers more, instead of making them desire ad-blocking services. Otherwise, companies, especially smaller ones, could suffer from it, “as they often solely rely on revenues from advertising to continue operating.”

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RZA To Game On With Atari-Inspired Album

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Atari has been an iconic name in video games for decades, getting its start in the late ’70s with the Atari 2600 and producing several classics over the past few years. Now, on the heels of its PC release Atari Vault (which celebrates its classic arcade legacy), the company is taking a unique step into the world of music.

The publisher has announced today in a press release that it has entered an agreement with producer and rapper RZA, who is also a member of the famed Wu-Tang Clan. Together, they’ll work to compose and record an album that celebrates the historic legacy of the company, featuring sounds and music from several Atari games.

Considering how much RZA is a fan of video games, this partnership seems like a logical step, and it allows him to show his appreciation for the brand. “I’m so excited to work on these iconic games to deliver what I believe will be one of my best albums,” he said in a press statement. “I am going to invite some of my friends to join me and it will be Game On with the first beat!”

In addition, Atari and RZA will look into various multimedia projects based on the company’s intellectual properties, with the album taking precedence.

“We are thrilled to partner with RZA, one of the greatest hip-hop producers of all time,” said Atari’s CEO, Fred Chesnais. “RZA is a multi-talented artist and soundtrack virtuoso and we cannot wait to hear the new tracks he creates based on Atari’s iconic video game sounds and music.”

Atari’s Fred Chesnais and Stephen Belafonte are serving as executive producers.

Atari’s deal with RZA comes at just the right time, as more media companies are showing appreciation for the “retro” gaming scene. Last year, Sony Pictures released Pixels, an Adam Sandler comedy featuring nods to old-school favorites such as Pac-Man and Donkey Kong. Recently, a Tetris film was announced in China with a release set for sometime next year, and Pac-Man made a return to mobile gaming with Pac-Man 256, an endless runner game created by Crossy Road developer Hipster Whale.

RZA’s Atari album is expected to go into production over the next few months, and might give Kanye West’s rumored Turbo-Grafx 16 album a run for its money.

YouTube Steps Up With Mobile Livestreaming And Original Programming

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YouTube, in an effort to attract more creators, detailed on its blog that mobile livestreaming features have been added to its app, enabling users to broadcast from wherever they are by simply hitting a capture button.

“Because it’s built right into the YouTube app, mobile live streaming will have all the features your regular videos have—you’ll be able to search for them, find them through recommendations and playlists and protect them from unauthorized uses. And since it uses YouTube’s peerless infrastructure, it’ll be faster and more reliable than anything else out there,” wrote Kurt Wilms, product lead for immersive experiences at YouTube, in the blog post.

The feature was announced this morning at VidCon, where CEO Susan Wojcicki presented her keynote and spoke about the ways that mobile livestreaming would shake up the YouTube community. Furthermore, it puts the video service on equal footing with competitors like Facebook Live and Periscope.

“Livestreaming is not something that’s new for us, we’re always thinking about new ways to capitalize on immersive digital video in general,” said Neal Mohan, chief product officer at YouTube, speaking with Mashable before the company’s presentation. “Our belief is that YouTube—being a central place of video on internet—needs to be on the cutting edge. And we want to make it easier for our users to take advantage of these new technologies.”

“I’m really looking forward to seeing how everybody here uses these creative tools,” said Wojcicki during the keynote.

In addition, YouTube continues to work on expanding its line-up of shows for its subscription service, YouTube Red. The humor channel Smosh announced (via Variety) that it is working on a Saturday Night Live-style show that’s set to release sometime later this summer. Smosh Live! will feature the talents of Anthony Padilla and Ian Hecox, along with Joshua “Jovenshire” Ovenshire.

But perhaps the biggest programming announcement is with Step Up, a big-budget TV series that’s based on the popular dance films. YouTube will work alongside franchise holder Lionsgate on a ten-episode series, with each spanning 45 minutes.

Although the format hasn’t been finalized yet, Susanne Daniels, global head of original content for YouTube, is confident that it will be part of a “bigger, bolder” movement to “drive subscription.”

Newzoo: Mobile Games Will Generate $36.9B In 2016

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Newzoo has released its latest report on the $99.6 billion global gaming industry, covering mobile games to PC and everything in between. The report outlines key trends in global, mobile, PC and console gaming broken down by revenues, segment, region and screen type.

Key Global Trends

Traditional media is now embracing the world of eSports as a way to reach millennials, with brands like ESPN, Yahoo! and Fox Sports engaging audiences through ad spending and strategic partnerships. Mobile games are swiftly becoming a major platform for eSports, with 24 of the top 100 grossing Android games in China organizing events or tournaments in the region. It’s no surprise that virtual reality (VR) is on the rise, but Newzoo states that VR game software revenue will be absorbed into current PC, console and mobile game statistics. The trend of collectible card battle games and character/equipment skins led by Valve and Chinese game companies offers a new layer of interactivity and entertainment, showing how mobile-first countries will take to the idea quickly.

Platform Comparisons: Mobile Games, PC And Console

While console revenue still dominates the industry at $29 billion for 2016, mobile isn’t far behind at $27.1 billion. In fact, Newzoo predicts that mobile games will generate $36.9 billion, or 37 percent of the market in 2016. PC and MMO gaming revenue accounts for 27 percent of total 2016 revenues, which Newzoo attributes to “essential vs. non-essential” device usage. According to Newzoo, 87 percent of console gamers surveyed also play on PC.

“The PC and the mobile are both essential devices where the console isn’t,” says Newzoo. “Mobile devices cannot bring full console experiences to them. With the PC as a device on which players can customize their experiences to suit what they are playing, console games can make the leap to a platform people need to own. PCs make it much easier to share content online. Though consoles do offer streaming services and channels, the ability to run a multi-screen setup, edit videos and release easily onto YouTube or Twitch means that PC has an advantage for players. PC users upgrade more naturally than console users do. The forthcoming PlayStation Neo and the updated Xbox One S have enraged some console fans, who fear they may need to fork out full price. Because many PC gamers regularly update hardware, console developers who shift to PC may have fewer worries about resistance to upgrades.”

Newzoo global games

Regional Overview

China is number one for game revenues, generating over $24 million in 2016 followed by the USA, Japan and South Korea with $23.5M, $12.4M and $4M respectively. North America experienced 4.1 percent year-over-year (YoY) growth from 2015 with an estimated demographic of over 198 billion gamers. Western Europe saw a year-over-year growth of 4.4 percent, while the Eastern Europe gaming market is growing at a rate of 7.3 percent year-over-year.

Asia-Pacific saw an increase of 10.7 percent YoY and Latin America nearly doubled that growth at 20.1 percent. However, the most impressive growth comes from the Middle East and Africa, with a year-over-year increase of 26.2 percent, although it accounts for only 3.2 percent of global revenues. In 2016, 58 percent of growth comes from the Asia-Pacific region.

“This year will be another pivotal year for everyone involved in the games business,” says Newzoo CEO and co-founder, Peter Warman, in the report. “ESports and livestreaming are changing the gaming landscape on a global scale and at an unbelievable pace. Consumers are embracing the possibilities that games now offer, to view, create and play on every screen. Managing these communities is at the center of any game company’s strategy. The arrival of VR and AR will ultimately change the world we live in, but impact on the industry will be limited in the near term.”

Understanding The Virtual Reality Demographic

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Virtual reality technology is very impressive but remains out of reach for many consumers. That’s why mobile VR, which is more affordable and accessible, seems to be getting more attention lately.

According to a new report published by Slice Intelligence, virtual reality got a huge push at last week’s Electronic Entertainment Expo (E3) event in Los Angeles. And while Oculus and Sony got a lot of attention with their showcases, mobile VR also got a great deal of promotion, particularly the Samsung Gear VR and Google Cardboard viewers.

After surveying over four million US shoppers, the report finds that mobile is the preferred format for virtual reality, with 57 percent of sales since January 2015 belonging to the Google Cardboard.

Samsung Gear VR followed closely behind in second with 30.7 percent, while PlayStation VR pre-orders were at 9.2 percent. Meanwhile, the Oculus and HTC Vive were cobbled with the “other” category, making up a meager 2.7 percent.

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That said, PlayStation VR did have better sales in March, when pre-orders launched, so its popularity could pick up closer to its October 2016 release.

The report also indicates that gamers who purchase virtual reality devices online tend to spend more money on games—approximately ten percent more during the first 90 days from when they first purchase their unit. Furthermore, those who buy both console games and VR products tend to spend the most money—about $194 dollars more annually—which could mean good news for PlayStation VR, which combines both groups.

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The report also compared male and female shoppers and found that the gap between the two groups is rather small. Male shoppers who generally purchase console, mobile and PC games (virtual reality or otherwise) measure in at 55.4 percent, while females are closely behind at 44.6 percent.

However, males have a much bigger lead when it comes to virtual reality, with 85.7 percent showing interest, compared to a much smaller 14.3 percent in the female group.

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The numbers say a lot, indicating that consumers don’t mind a more affordable alternative to virtual reality, though women don’t seem to show as much of an interest as men at this point. That could certainly change over time, as the Oculus becomes more accessible to the market and the PlayStation VR ramps up its promotion.

SuperData: ‘Overwatch’ Crushes May Digital Game Sales

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The previous SuperData revenue report showed Dark Souls III as the biggest game for April. However, the May 2016 worldwide digital game sales have made room for a new champion: the multiplayer shooter, Overwatch. The competitive game has accounted for $269 million in earnings across both PC and console. In addition, the game is currently the fifth most commonly broadcast title across livestreaming platforms, according to SuperData CEO Joost van Dreunen.

Overwatch has also done suitable business with “a hefty quantity of vanity items, including skins and graffiti tags.” This is on top of the initial $60 price of the game. The shooter also had no trouble running loops around its nearest competitor, 2K Games’ Battleborn, which managed to only earn about $11 million for the month of May. While those are still reasonable earnings, it was nowhere near Overwatch‘s numbers.

Overall, the digital games market showed an increase of 11 percent year-over-year, earning an estimated $6 billion for the month of May—primarily due to the success of Overwatch. Mobile gaming took a slight drop, down from the almost $3 billion in monthly sales noted back in February, to around $2.6 billion, which is still a nine percent increase from 2015.

While Overwatch may be a noted success story, it’s not the only game that did well for the month. Uncharted 4: A Thief’s End did great business for Sony, scoring $56 million for the month and pushing past Call of Duty: Black Ops III as the highest earning console title in May. The game sold almost six times more digital copies at launch than its predecessor, Uncharted: The Nathan Drake Collection, when it released last October, according to van Dreunen.

In addition, the report showed that multiplayer gaming is a major part of console gaming, with the market “on track to reach $17.4 billion in revenues, in part driven by consoles now offering cross-platform gameplay.” While not a lot of titles have embraced this opportunity yet (mainly Rocket League), many developers are looking into the option.

Van Dreunen was also made note of Facebook’s interest in the gaming video content market, particularly with its deal with Activision Blizzard and Overwatch. “Facebook’s entry into the space may serve as a catalyst for competitive gaming, which is a major content category across livestreaming channels, and on track to earn $892 million this year.”

Facebook Signs New Media Partners, Celebrities For Live Video

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Just days after signing former League of Legends pro player Stephen “Snoopeh” Ellis to help bolster eSports for its video division, Facebook has made some major moves to bolster its Live library.

As reported by The Wall Street Journal, the social media platform has signed on nearly 140 media companies and celebrities to create new video content for its Facebook Live service. The deals reportedly total more than $50 million, and the goal is to keep its 1.65 billion monthly users engaged with livestreaming, exclusive video productions and more.

A number of big outlets are on board, including CNN and The New York Times, as well as digital publishers Vox Media, Mashable and Huffington Post. A number of celebrities are also on board, including TV super-chef Gordon Ramsay, comedian Kevin Hart and NFL quarterback Russell Wilson.

These arrangements will keep fresh video content coming while Facebook formulates a plan for compensating video creators, which may include some form of ad revenue sharing.

“We wanted to invite a broad set of partners so we could get feedback from a variety of different organizations about what works and what doesn’t,” said Justin Osofsky, Facebook’s vice president of global operations and media partnerships, in a statement regarding video content.

The Wall Street Journal also posted a chart showing the value of the highest contracts signed. BuzzFeed takes the top spot with $3.1 million, followed by The New York Times ($3 million) and CNN ($2.5 million). While celebrities aren’t making nearly as much (around $200,000 apiece), their content should still bring in quite a number of community members.

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Considering how users watch over 100 million hours of video daily through their news feeds, Facebook no doubt hopes that these deals will keep them further engaged while possibly increasing viewership numbers at the same time. Facebook Live isn’t just about livestreaming, as the Journal reports that about two-thirds of Facebook users watch a video after it has been broadcast. Those that do watch live tend to stick around for the long haul as well, as the average Facebook user will watch a live video three times longer than those that don’t.

How Samsung Is Encouraging VR Content Creation

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Considering how well the affordable Samsung Gear VR is selling on the market, it’s no surprise that the company wants to get more people involved with content for it.

The manufacturer has introduced a new program called Samsung Creators, one in which will help educate and inspire filmmakers and influencers alike when it comes to creating content for virtual reality. Launching alongside the rebranded Samsung VR service, Creators is meant to assist with producing programming, including films and shows.

"AUSTIN, TX - MARCH 12: Festival goers experience Samsung Gear VR at The Samsung Studio at SXSW 2016 on March 12, 2016 in Austin, Texas. (Photo by Rick Kern/Getty Images for Samsung)"

And for those concerned they don’t have the proper tools for the job, Samsung is helping out there as well with the ability to purchase its Gear 360 virtual reality camera at VidCon later this week, where it will be selling for $350. Those that don’t have a chance to make the event, however, will still have a chance to obtain the camera, as the company works toward a general launch sometime later this year.

Even with the limited launch at the event the camera is expected to be snapped up quickly and put to proper use by those interested in producing content. Expectations for both the new program and gear are going through the roof, based upon the popularity of the Gear VR headset. More than one million people have already used it since its launch, and it’s expected to be a major part of the overall VR market, which is expected to reach $40 billion by 2020.

Content creation has always been a major focus for the company. It was a notion further hammered home in on our interview with Samsung chief marketing officer Marc Mathieu last month. “The marketer’s job in the digital age has become the easiest job in the world. You don’t need to do anything anymore. You just need to [put it in the hands of the people] and let them do it for you,” Mathieu explained. “People are dying to do marketing for you if you give them a 360 camera to create content. Why would we want to do marketing when we have the technology platform that a lot of people want to embrace, share and talk about?”

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President Tim Baxter had plenty to add with his own [a]listdaily interview earlier in the year. “We’re in virtual reality for two reasons: one, we’re an entertainment company. We create big televisions, mobile phones—this is an entertainment-consumption environment we’re living in, so it’s a big part of our business,” Baxter said. “The other reason is we think we have some unique technologies that are required for VR with the processors in phones, and our screens. Those two things are vital in the VR mobile space. That helped drive our thinking.”

Between both the debut of its camera to the market (even on a limited basis) and the new Creators program, Samsung seems to be headed in a much more devoted direction with VR content. We’ll see how it all pans out—and just when the camera will be available to the public—in the months ahead.

Electronic Arts: Using ESports And VR As Tools Of Engagement

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Electronic Arts scored big last week with debut of its EA Play event, which featured games like Titanfall 2, Battlefield 1 and many sports titles to draw in thousands of viewers. With it, the company also outlined its eSports-focused plans for the second half of the year.

Separately, during a Bank of America Merrill Lynch Global Technology Conference that took place earlier in the month, the company’s CFO, Blake Jorgensen, discussed how EA would grow to adopt virtual reality and eSports while maintaining a strong level of production with games such as Mass Effect: Andromeda and Madden NFL 17.

Jorgensen talked about how games are helping players “stick around”, thanks to “live” services. As a result, game longevity can be increased to a year or more after release, like with the downloadable content featured in Battlefield 4. Live events with sports titles such as NHL 16 and Madden NFL 16 have proven to be effective and will continue to be a feature in forthcoming sports titles. Jorgensen also made note of how all ages of gamers, from kids to adults, are taking part in gaming sessions as well.

But most of Jorgensen’s presentation focused on gaming technologies of the future, explaining that virtual reality has a great deal of promise and could lead to a much bigger market down the road. Between processing power and the depth of gameplay, Jorgensen feels that it’s an important part of the future. ESports also came up, with more people joining the industry both as professionals and fans. Watching competitions helps players learn better tactics, creating greater involvement as a result. While Jorgensen still isn’t sure how it can be properly monetized, there’s a lot of thought going into it.

Meanwhile, Peter Moore, COO of EA, laid out the eSports “master plan” while speaking with GamesIndustry International, explaining what the company has in mind with the EA Majors tournaments it announced during the EA Play press conference. “We have done a ton of analysis, and everybody loves eSports,” he explained. “They see big stadiums, and glitz, and glamour, and fine, that’s the top (of the pyramid). But there’s a lot more to it.

“When you really dig into it, the huge amount of people in competitive gaming sit right at the base of the competitive gaming pyramid, who look inspirationally at being able, one day, to play a top level.

“The analogy I always use is, I was brought up in Liverpool. I was going to play for Liverpool. No, I wasn’t! But did my dad spend money on me and did I kick the ball around and then go play for my village team? Did I dream that I was Kenny Dalgish in my head? Did I think one day I’d play at Anfield? There are tens of millions, hundreds of millions of people that have that same dream.

“‘I’m gonna play CS:GO one day in front of a million people on Twitch, or I’m going to be on a League of Legends team and you always have, in every part of your life, something you need to aspire to. You cannot ignore those people, so it’s a temptation to be purely the glitz and glamour side, and we’ll certainly do that, but we think of the three tiers.”

The company is also prepared for any bumps that may be on the road, like with team and fan behavior. “We’ve already written our terms and conditions, the Code of Conduct is built in that, it addresses, and if you’re taking part today, they already know what we expect of them. Because this is an EA Major right here, and if you’re going to compete, you need to be… you look over those things, drug taking, Adderall, Ritalin, match fixing, if someone is gambling on the game, which you don’t see so much here in the US but in Asia it’s a big deal,” said Moore.

“I think that the more organized we get, the more formalization on what’s expected, and certainly at the EA Majors you’re going to be expected to sign these things and say, the same way if you’re a real athlete, you’ve got morals clauses, you’ve got disparagement. You can lose your contract if you go out, make a fool of yourself, and embarrass the brand.”

He also brought up money management as part of the initiative. “Well, it’s six figures of big money showered upon teenage boys, what can possibly go wrong? So we need to help them. In the same way, you may not know, but when the NFL gets its rookies all together, they do two days away where lawyers talk to them, psychologists talk to them.

“We’re not quite there yet with competitive gaming, but it will be. And these are younger. These are teenagers, so it’s our obligation, I think, to be able to help them think through how they should behave,” said Moore.