NPD Group last week announced that video games sales for the month of April were down 26% and software sales plummeted from $630.4 million to $307.2 million, representing a 42% decline from April 2011. The numbers shocked industry analysts, who predicted a maximum software decline of 27%. The only segment of the gaming industry that did not suffer was the accessories segment, which grew a mere 0.5% from $147.8 million last year to $148.6 million this year. According Gamasutra analyst Matt Matthews, “should the contraction from 2011 continue at this pace, annual U.S. retail video game revenue in 2012 could fall below the $12.6 billion figure from 2006,” representing a six-year low since the first full year of Xbox 360 sales and the launch year for both the Nintendo Wii and Sony PlayStation 3.

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Microsoft is reportedly planning to launch a subsidized Xbox 360 and Kinect bundle with a monthly subscription option, according to The Verge. The software giant may offer its 4GB gaming console alongside its motion sensing input device for $99 with a two-year commitment, and an early termination fee will be included for contract breakers. Subscribers will then pay a monthly $15 fee that includes access to Xbox Live Gold, a two-year warranty and possibly additional streaming content as well. Microsoft will apparently position the package to compete against the Apple TV, Roku streaming box and PlayStation 3. The Verge reports that we could see an announcement as early as next week.

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Activision on Tuesday announced the next entry in the Call of Duty franchise, Call of Duty: Black Ops II, a sequel to one of the most successful games of all time. Treyarch, the studio behind the original Black Ops title, is developing the sequel. Call of Duty: Black Ops 2 propels players into a 21st Century Cold War, where technology has created a new generation of warfare. Activision chief Eric Hirshberg previously said, “The next Call of Duty will bring meaningful innovation to the series.” The game is available for pre-order now and is slated to be released on November 13th for PlayStation 3, Xbox 360 and PC. The official Call of Duty: Black Ops II trailer follows below.

​Approximately 27 million U.S. households, more than one in five, have either an Internet-ready TV, game console, standalone Blu-ray player, and/or smart set-top box connected to their home network, according to ABI Research. Gaming consoles are the most popular devices, with a connection rate of over 80%, followed by Internet TVs (27%), standalone Blu-ray players (24%) and smart set-top boxes (13%). The research also indicated that a relatively large number of consumers have not connected some devices to their home network, most notably Internet-ready TVs. ABI predicts that the combined penetration rates of all of the devices will reach 60% by 2017. The firm notes that while not all of these devices will be connected to a network, there is room for growth, however, as only 48.5% of consumers with a home network currently have one of these devices connected to the Internet.

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Electronic Arts and Crytek last week announced the highly anticipated next installment of the Crysis franchise, Crysis 3, alongside a 19-second teaser trailer. On Tuesday, the two companies issued the official gameplay trailer that showcases the game’s stunning graphics. The third installment of Crysis is set in 2047, and users control protagonist “Prophet” as he returns to New York only to discover that the city is covered by a giant Nanodome created by the evil Cell Corporation. This dangerous new world demands advanced weapons and tactics, such as a lethal composite bow, an enhanced Nanosuit and devastating alien technology that will turn Prophet into the deadliest hunter on the planet. The game, which is built using the latest CryENGINE technology, will be released in Spring 2013 on the Xbox 360, PlayStation 3 and PC, and is now available for pre-order. The full Crysis 3 gameplay trailer follows below.

Devices like Apple’s iPad have shown the world that huge advances have been made in mobile gaming over the past few years. Featuring the Apple A5X processor with quad-core graphics, the third-generation iPad takes mobile video games to new heights on iOS devices, but technology blogs and the media tend to get a bit carried away in terms of comparisons between console gaming and mobile gaming. Gameplay itself paints an obvious picture, and the numbers do as well; Microsoft’s seven-year-old Xbox 360 console features floating-point performance of 240 Gflops and 500 million triangles while Apple’s brand new iPad is rated at a maximum of 7.2 Gflops and 35 million triangles.

The next-generation Xbox and PlayStation consoles currently being developed by Microsoft and Sony will make the disparity between these two classes of gaming even more vast, adding more fluid animation support and a number of additional enhancements that will make video games more realistic than ever. But even when confined to the capabilities present in today’s home consoles and PCs, new video game engines show us just how amazing gaming will be moving forward.

Ctytek, the lab behind the popular Crysis franchise, recently released the CryENGINE 3 SDK 3.4.0 DX11 update for developers as well as with a quick reel to highlight some of the engine’s capabilities. Along with companies like Epic Games, Crytek continues to push the envelope while enabling other developers to do the same, and this latest release will set the bar even higher. Crytek’s video trailer follows below.

Nexon, the free-to-play gaming developer behind the hit game MapleStory, sees the traditional publishing model fading away. As game consoles become more advanced, video game budgets continue to increase and publishers are forced to charge consumers more for each game. But the $60 price tag associated with today’s games will simply not survive, Nexon America CEO Daniel Kim told GamesIndustry International. “I think at some point the console makers have to make a decision about how closed or open they’re going to be to the different models that are going to be emerging,” Kim said. “Today it’s free-to-play, and I’m convinced that one is going to continue to flourish and expand into other genres and other categories, but there may be something else completely and entirely different that comes out that again changes the industry.” Read on for more.

Kim continued, “If your mind is just set on keeping the current model of buy a game for $60, play for 40 hours, buy another game for $60, play for 40 hours, that model I think is eventually going to change. It’s going to have to change. How they will adapt I really don’t know, but I hope that they’re aware enough to understand that the value proposition of free-to-play is not going to go away.”

Console makers — especially Microsoft — have made it difficult for companies to attempt different business models within the console market. “Dungeon Fighter is being released as a Microsoft Xbox Live Arcade version of the game. But again we had to modify the game and the business model to fit their restrictions or requirements. It’s not free-to-play, it’s DLC essentially,” Kim said. “Which is not really truly how we like to service our games, we like to service our games completely free-to-play, no limits, and earn the players’ business by convincing them there’s value in purchasing stuff.”

The CEO noted that Sony, however, has provided companies with the ability to launch free-to-play content on its Playstation Network, and he sees this as an “encouraging” move. Kim believes those companies who are unwilling to try new business models may soon find themselves pushed out of the market.

Image source: Kristen Lanae

With Friday’s release of the new iPad, Epic Games president Mike Capps has offered a huge amount of praise for Apple’s new tablet in the context of video games. “Apple is definitely building their devices as if they care a lot about ‘triple-A’ games,” said Capps, in an interview with Reuters. Only the highest-quality games are considered “triple-A” titles, most of which cost tens of millions of dollars to produce and are usually found on the Xbox 360 and PlayStation 3. Capps is trying to push console manufacturers to release more powerful devices in the hopes that they won’t be left behind. Read on for more.

With the simple addition of a Bluetooth controller for the iPad, Capps believes that Apple could challenge the Xbox and PlayStation platforms in the home console gaming market. “It is quite easy to imagine a world where an iPad is more powerful than a home console, where it wirelessly talks to your TV and wirelessly talks to your controller and becomes your new console,” he said.

The president of Electronic Arts’ Labels, Frank Gibeau, who oversees games such as “Battlefield 3″ and “Star Wars: The Old Republic,” echoed Capps’s comments and said the company is eyeing Apple’s moves closely. “When the iPad gets to the processing power that’s equal to an Xbox 360 and it connects to a television, that’s no big deal to us. We’ll put the game through the iPad and have it display through the television.” Gibeau said. EA has already released franchise titles such as “Dead Space” and “Mass Effect,” for the iPad. For publishers, “it used to be, oh hey, it’s just the Nintendo, Sony and Microsoft show, but that’s not the case anymore,” Gibeau said.

Crytek, the company behind the graphic intensive “Crysis 2″ for the PC and consoles, is also working on its first game for the iPad, which is due out in the spring. While the game is set to be puzzle-based, Crytek said it could one day bring more complex games to the device as well. “As more people come to these platforms, we have to follow our fans,” said Kristoffer Waardahl, a Crytek studio manager.

The video game industry continued to struggle in the United States last month as sales slid yet again according to market research firm The NPD Group. After dropping 34% year-over-year to $750.6 million in January, total video game hardware, software and accessory sales in the U.S. dipped to $1.06 billion in February, down 20% from the same period in 2011. Hardware sales dropped 18% to $381.4 million, software sales declined 23% to $464.4 million and accessory sales were down 16% to $215.2 million. ”Outside of new physical retail sales, we estimate that the consumer spend on other methods to acquire content including used games, full game and add-on content downloads, social network games, mobile games, rentals and subscriptions accounted for an additional $550 – $600 million in sales, which would bring total content spend across both retail and these other spend methods to $1.0B-$1.1B for February,” NPD Group analyst Anita Frazier said. “Our official quarterly estimate of the total Q1 2012 consumer spend in these areas will be released in our Q1 Games Market Dynamics: U.S. report in June.” Frazier noted that Microsoft’s Xbox was the best-selling hardware platform in February for the seventh straight month. NPD’s list of the top-10 best-selling software titles in February follows below.

Over the last year, the total time spent playing video games increased 7% and purchases of digital content and subscriptions rose 8% according to a study from Nielsen. Over half of all households, 56%, owned at least one current-generation gaming console as of January 2012, an increase from 50% in 2011. Mobile, handheld and tablet gaming continues to grow as well, with 66% of households with kids between 6 and 12 years old owning a Nintendo DS or Sony PSP, while also owning an iOS device. More adults ages 25 through 34 play games on Android devices than on iOS devices, but iOS gaming is evenly distributed across the various age groups covered by the study. As for next-generation game consoles, four out of five gamers who own current-generation systems are interested in a future console.

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Apple’s unveiling of the new iPad overshadowed plenty of big news on Wednesday, and Epic Games’s unveiling of a brand new Unreal Engine 3 feature reel is something we couldn’t let slip through the cracks. The popular lab took to the annual Game Developers Conference in San Francisco on Wednesday to show off the latest features of its Unreal Engine 3, the latest version of Epic’s popular platform. Shown in the reel is a small sampling of what developers can accomplish with the latest version of Unreal Engine, and the engine supports game development across Xbox 360, PlayStation 3, PlayStation Vita, Wii U, Windows, Mac, iOS and Android. Game samples for each of the aforementioned platforms are shown off in Epic’s video, which follows below.

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Last month, Capcom announced that the sixth installment of the company’s Resident Evil series would launch for the Xbox 360 and PlayStation 3 on November 20th, with a PC version coming soon after. Details surrounding the game were few and far between, however Capcom previously announced that Leon Kennedy and Chris Redfield would join forces in a world where bioterrorist attacks have turned everyone into a zombie. According to Japanese gaming magazine Famitsu, Capcom has now confirmed that the undead will be able to run and use firearms, and they are not infected with the T-virus but something else entirely. To survive the hordes of next-generation zombies, characters will have the ability to run and shoot simultaneously, quick-turn, roll, dive, take cover and use melee combat. Executive producer Hiroyuki Kobayashi confirmed in the publication that number six is not a return to the franchise’s roots, instead taking the best elements of the fourth and fifth installments and adding more horror. The video trailer for Resident Evil 6 follows below.

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Sales of video game hardware and software in the United States plummeted last month according to new data from market research firm The NPD Group. The firm’s January figures suggest that sales of video game hardware fell 38% to $199.5 million, down from $324 million in January 2011. Video game software sales slid 38% as well in January, falling to $355.9 million, and sales of accessories in the U.S. dropped 18% year-on-year to $195.2 million. Total industry sales were down 34% to $750.6 million. “January retail performance experienced steep declines with a lack of software launches, and poor Hardware and Accessory performance partly related to bad comps from Kinect-related success in Jan’11,” NPD analyst Liam Callahan said in a statement. “Outside of new physical retail sales, we estimate that the consumer spend on other ways to acquire content including used games, full game and add-on content downloads, social network games, mobile games, rentals and subscriptions accounted for an additional $350 – $400 million in sales.” Callahan noted that Microsoft’s Xbox 360 was the best-selling console for the sixth consecutive month in January, and Call of Duty: Modern Warfare 3 was the top-selling software title. A complete list of NPD’s top-10 games for the month follows below.

Kazuo Hirai was appointed Sony’s new chief executive on Wednesday and one day later, the company reported a wider than expected loss in the third fiscal quarter of 2011 that sent its stock tumbling more than 6% in early trading. The firm posted an operating loss of $1.2 billion on $23.4 billion in revenue, down more than 17% compared to the same quarter in fiscal 2010, and its net loss for the quarter totaled $2 billion. Sony also said it now anticipates a full-year loss of $2.9 billion, more than twice its earlier projection of $1.2 billion. The flooding in Thailand was seen as contributing to Sony’s poor performance in the third quarter, but the company noted that its hefty losses were “primarily due to an impairment loss on the shares of S-LCD, which were sold in January 2012, and the recording of a valuation allowance on deferred tax assets at Sony Ericsson.” The company cut its full-year PlayStation 3 console sales forecast to 14 million units from 15 million, and it trimmed its full-year digital camera sales forecast to 21 million units from earlier estimates of 23 million.

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Capcom announced recently that Resident Evil 6 will launch on Xbox 360 and PlayStation 3 on November 20th, and that a PC version will follow soon after. The company said the game will take place in a world where bioterrorist attacks are occurring around the globe, inciting fear everywhere and turning everyone into zombies. The President of the United States decides to address the U.S. until he, too, is attacked and becomes a zombie. Leon S. Kennedy and Chris Redfield will work together to save the world alongside new characters, and we hope to give the game a whirl later this year during E3 — provided it’s on display, of course. The Resident Evil series made its debut in 1996 and the series has achieved global sales in excess of 47 million units. The trailer and press release for Resident Evil 6 follow after the break. 

Capcom® Confirms Latest Installment of the Resident Evil® Franchise Coming to Home Consoles This November

SAN MATEO, Calif.–(BUSINESS WIRE)–Capcom®, a leading worldwide developer and publisher of video games, is very proud to announce that Resident Evil® 6 is in full development and scheduled for release on the Xbox360® video game and entertainment system from Microsoft® and PlayStation®3 computer entertainment system on November 20, 2012 with a Windows PC version to follow. Blending action and survival horror, this latest instalment in the multi-million selling franchise, is the most ambitious, immersive and feature rich title of the series to date and promises to be the dramatic horror experience of the year.

Resident Evil 6 portrays a world where an escalation in bioterrorist attacks across the globe has led to widespread fear among the population. In an attempt to quell the panic and curb the bioterrorist activity the President of the United States has decided to speak to the nation but not before the very location of the address itself comes under attack. With the President’s safety compromised the situation for the rest of the world seems hopeless.

In a first for the franchise, Resident Evil 6 sees series favourites Leon S. Kennedy and Chris Redfield come together to face this unprecedented threat. They will be joined by new characters, each with their own unique perspective and involvement in this relentless dramatic horror experience enacted on a global scale.

Since the landmark release of Resident Evil in 1996, the franchise has firmly established itself as a truly worldwide entertainment brand and mainstay of contemporary culture with a series of live action movies, CG anime, manga, novels and numerous merchandising lines. To date the Resident Evil series of videogames has achieved global sales of over 47 million units, while the live action movies starring Milla Jovovich have grossed in excess of $525 million dollars at the box office.