In 2009, the Nintendo DS generated 70% of all portable gaming revenue in the United States, but in the last two years its share has been devoured by Android and iOS. The two mobile operating systems now account for 58% of all portable gaming revenue in the United States according to Flurry, up from 34% in 2010 and 19% in 2009. Nintendo DS fell from a 70% share in 2009 to a 57% share in 2010 and tanked again this year to an estimated 36% share. Sony’s revenue share slid substantially as well. It fell from an 11% share in 2009, to a 9% share in 2010 to a barely visible 6% share this year. Read on for more.

The data was compiled in a recent blog post by Flurry using its own data and data from The NPD Group, and the figures for 2011 include estimates for November and December of this year. “Combined, iOS and Android game revenue delivered $500 million, $800 million and $1.9 billion over 2009, 2010 and 2011, respectively,” the report said. “Recently, no industry has been more impacted by digital distribution than video games. Leading the disruption are iOS and Android devices, whose free and inexpensive games, distributed across a massive installed base of powerful and networked tablet and mobile phone form factors, have already disrupted billions of dollars of game revenue.” So, yes, your impulsive iPhone game purchases are slowly killing Mario.

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Sales of video game hardware, software and accessories in the United States continued to slide in August according to new data from NPD Group, again dipping more than 20% compared to the same period last year. Overall industry sales slid 23% to $669.9 million last month from $873.8 million in August 2010. Hardware sales were down 12% from last year to $249.4 million, accessory sales were down just 1% to $134.7 million and software sales plummeted 34% to $264.8 million. ”August 2011 sales saw a decline versus August 2010 in all categories except for portable games hardware,” said NPD analyst Anita Frazier in a statement. “In software, the bulk of the decline can be attributed to the shift of the annual Madden release from August to September (8/30 release falls within NPD’s September 2011 reporting period).” Frazier continued, “Even though year to date performance of the new physical portion of the industry is down 5%, more than half of industry sales in this channel are still to be realized in the back four months of the year.  Given the strong release schedule in the coming months, new physical retail sales could still be flat to slightly up once full year sales are tallied.” Microsoft’s Xbox 360 was the best-selling console for the seventh consecutive month in August with 308,000 units sold. NPD’s top-10 list of video game software title sales in the month of August follows below.

U.S. video game industry sales were down 26% in July compared to the same period last year according to new data published by The NPD Group. Hardware sales were down 29% year-over-year to $223 million, video game software sales dipped 17% to $336.2 million and sales of video game accessories were down 8% to $127.8 million. Microsoft’s Xbox 360 was the best-selling console in the U.S. for the seventh consecutive month with unit sales of 277,000, though July marked the first time the Xbox saw a year-on-year decline since December 2009. ”There is no getting around the fact that video game sales in the new physical retail channel suffered its lowest month since October 2006,” NPD analyst Anita Frazier said in a statement. “Despite the very rough month, new physical retail sales are down just 4% year-to-date and based on seasonality trends observed over the last 10 years, which have been remarkably stable year-in, year-out, industry sales in this particular channel are poised to land in the flat to -2% range once the total year is completed.” NPD’s top-10 list of video game software title sales in the month of July follows below.

Image source: Kristen Lanae

Sony’ next-generation portable video game console will not launch in the U.S. until early 2012, Sony Executive Vice President Kazuo Hirai told The Associated Press on Thursday. Sony’s PlayStation Vita will become available later this year in Japan, but it will miss the all-important holiday shopping season here in the U.S. and in Europe as well. Some, such as Daiwa Securities Capital Markets analyst Koki Shiraishi, believe Sony’s sales will take a huge hit as a result. “That’s when you do half your year’s sales,” Shiraishi told the AP. “This is going to prove painful for Sony.” When it finally does launch next year, the PlayStation Vita will start at $249 for a Wi-Fi-only model and a 3G-equipped version will be available for $299.

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Sales of video game hardware and software declined 10% in June according to new data reported by industry watcher The NPD Group. Total content sales including home consoles, portable consoles and PC game sales totaled $1.03 billion last month, down 10% from June 2010. Hardware sales declined 9% from $401.7 million in June 2010 to $366.6 million last month, and software sales dropped 12% over the same period to $469.5 million. Video game accessory sales also declined from June of last year, dropping 11% from $177.7 million in 2010 to $158.9 million last month. Game publisher Take 2 Interactive was responsible for the two best-selling games in June, with L.A. Noire occupying the top spot and Duke Nukem Forever coming in at No. 2 despite low ratings from reviewers. Sony’s Infamous 2 was the third best-selling game for the month, while Disney’s Lego Pirates of the Caribbean: The Video Game and Nintendo’s Legend of Zelda: Ocarina of Time 3D rounded out the top-5. Overall hardware, software and accessory sales in the first half declined 2.4% compared to the first half of 2010. A list of The NPD Group’s top-10 software titles for the month of June follow below.

Gartner Says Spending on Gaming to Exceed $74 Billion in 2011

Gaming Software Spending Dominates but Online Gaming Growing Fastest Over the Next Five Years

Egham, UK, July 5, 2011— 

The gaming ecosystem is undergoing major technology and business model transitions that will last beyond 2015. Gartner, Inc. estimates that worldwide spending on the gaming ecosystem* will exceed $74 billion in 2011, up 10.4 percent from 2010 spending of $67 billion. By 2015, spending will reach $112 billion.

Overall, Gartner estimates that the gaming software component will represent $44.7 billion in 2011, and it will continue to dominate the overall gaming market in the next five years as it absorbs almost two-thirds of consumers’ gaming budgets.

“This large market size means that many consumers embrace gaming as a core piece of their entertainment budget and will continue to play as long as game publishers deliver compelling and fun games,” said Fabrizio Biscotti, research director at Gartner.

In 2011, the gaming software spending will be followed at a distance by gaming hardware and online gaming, reaching $17.8 billion and $11.9 billion, respectively (see Table 1).

Table 1: Total Gaming Market Spending, 2010-2015 (Millions of Dollars)

	2011	2013	2015
Gaming Hardware	17,797	24,621	27,354
Gaming Software	44,730	51,129	56,512
Online Gaming	11,899	21,453	28,298
Total	74,426	97,204	112,163

Source: Gartner (June 2011)

Within the gaming software market, mobile gaming will experience the largest growth opportunity with its share growing from 15 percent in 2010 to 20 percent in 2015.

“As the popularity of smartphones and tablets continues to expand, gaming will remain a key component in the use of these devices. Although they are never used primarily for gaming, mobile games are the most downloaded application category across most application stores,” said Tuong Nguyen, principal research analyst at Gartner. “For this reason, mobile gaming will continue to thrive as more consumers expand their use of new and innovative portable connected devices.”

The segment that will drive the largest revenue will come from video game consoles (hardware and software). In 2010, it generated more than two-thirds of the gaming ecosystem revenue, and Gartner predicts revenue to grow 4 percent in 2011.

Over the next five years, gaming hardware’s market share will remain constant while software spending will lose share to online-gaming spending, the fastest-growing segment. Gartner estimates consumer spending on global online gaming (subscriptions and microtransactions) will show a compound annual growth rate of 27 percent through 2015, with consumer spending on subscription fees slightly declining while spending on virtual goods will grow exponentially.

“We find that subscription fees are giving way to ‘freemium’ models, in which the game is provided for free to gamers but is monetized through advertising (both in-game advertising and display advertising) and in-game microtransactions, such as the sale of value-added services or virtual-good purchases,” said Brian Blau, research director at Gartner. “This trend is prevailing given the rise of social gaming, in which online gaming is connected to social networking sites and social networking platforms.”

“Users have become multichannel-oriented by choice and expect vendors to continue to deliver quality content and experiences by extending their gaming possibilities across multiple platforms,” said Mr. Blau. “If today’s mobile technology does not evolve quickly enough, the gaming industry is set to see the rate of innovation severely decline. Alternatively, it will provide opportunities in technology and content genres that we can’t foresee today.”

Additional information is available in the Gartner report “Market Trends: Gaming Ecosystem, 2011″ at http://www.gartner.com/resId=1724014.

We’re here at E3 2011 in Los Angeles and we just got our hands on Sony’s brand new PlayStation Vita — its next-generation portable gaming console — and we’re impressed with what we’ve seen so far. Games were crystal clear in HD and the device was light, but large enough to feel like we were getting a great immersive gaming experience. It’s probably a bit too big for most pockets, but it will be perfect in a backpack. Also, you’ll probably note the fingerprints in some images — the device is definitely a grease magnet. The controls all felt snappy and they didn’t depart too much from the previous-generation PSP, which is a good thing. Unfortunately, the demo units we played with were locked in game-only mode, which meant we couldn’t back out to check out the other pre-installed applications, the default user interface, or the web browser, so we’ll definitely want to revisit that in the future. The Vita will land for $249.99 but there will also be a 3G version available from AT&T for $50 more. Sadly, we still don’t know when it will launch, but the good news is the gaming already feels top notch. Be sure to check out our hands-on photo gallery below!

Those of you who tuned in to our live coverage yesterday know all about the new details surrounding Sony’s next-generation handheld gaming console, but for those unfortunate souls who missed it, here are the highlights: Sony announced on Monday that its next PSP — known until now as the Sony Next-Generation Portable, or Sony NGP — has been dubbed “PlayStation Vita.” In terms of pricing, the PS Vita will start at $249 for a Wi-Fi model, and a 3G-enabled version will be available as well for $299. Unfortunate though it may be, we still don’t have a firm release date for the sleek new Vita, but it will definitely be out in time to soak up all those holiday bonuses. Hit the break for Sony’s full press release.

Sony Computer Entertainment Announces “PlayStation®Vita” as the Official Name for Next Generation Portable Entertainment System

Wi-Fi Model: 24,980 Yen (including tax), $249 and euro 249
3G/Wi-Fi Model: 29,980 Yen (including tax), $299 and euro 299

Realizes Unparalleled Interactive Network Entertainment

TOKYO, June 6, 2011 /PRNewswire/ — Sony Computer Entertainment Inc. (SCE)today announced PlayStation®Vita (PS Vita) (PCH-1000 series) as the official platform name for the next generation portable entertainment system (codename: NGP). Wi-Fi model will be available for 24,980 yen (including tax) in Japan, $249 in US and euro 249 in Europe, 3G/Wi-Fi model will be available for 29,980 yen (including tax) in Japan, $299 in US and euro 299 in Europe and successively launch in global market starting the end of 2011.

“Vita,” which means “Life” in Latin, was chosen as the most appropriate name for the next generation portable entertainment system as it enables a revolutionary combination of rich gaming and social connectivity within a real world context. SCE is aiming to transform every aspect of user’s daily life into an entertainment experience.

PS Vita incorporates a beautiful 5-inch multi-touch organic light emitting diode (OLED) as the front display and a unique multi-touch pad on the rear. Together with the front touch screen and the rear touch pad, PS Vita offers new game play experiences never before seen on any device, allowing users to interact directly with games in three dimension-like motion, through “touch, grab, trace, push and pull” finger motions. Also PS Vita features two analog sticks which enable a wider range of game genres to be brought into the portable experience, such as shooters, action games, and fighting games. Exciting and attractive new titles*1 are scheduled to be released from SCE Worldwide Studios, including “GRAVITY DAZE,” “Uncharted Golden Abyss,” “Little Deviants,” “Hot Shots Golf,” “Reality Fighter,” “Hustle Kings,” “ModNation Racers,” “Wipeout 2048″ and “Super Stardust Delta,” as well as from a broad range of third party game developers and publishers, which will deliver value only possible on PS Vita.

Also, by having both Wi-Fi and 3G network connectivity, together with various applications, PS Vita will enable infinite possibilities for users to “encounter,” “connect,” “discover,” “share” and “play” with friends wherever they are. On January 27, 2011, SCE announced the first PS Vita application, “near,” which will come pre-installed. It will let users discover what games PS Vita users in the vicinity are or were recently playing, as well as let users share their game information. “near” also enables location-based gaming features such as “gifting,” in which a user can access virtual game-related items that other users are sharing, through checking in at geographic locations that others have also visited. The virtual items can include content unlocked from games, such as character costumes, weapons, and treasures. Sharing these items between users adds a unique dimension to the portable gaming experience on PS Vita while enhancing the social connectivity among the PS Vita community.

Additionally, PS Vita will come pre-installed with a newly developed application called “Party.” “Party” is an innovative application for a portable entertainment system which enables users to enjoy voice chat or text chat not only during online gaming, but also when users are playing different games or using different applications such as internet browser. Through “Party,” which offers a new form of social networking, and “near,” which enables users to share their game information with other users anywhere, anytime, users can dramatically expand the boundaries of interactive communication.

Also a tutorial application called “Welcome Park,” developed specifically to guide every user about PS Vita’s brand new user interface such as the front touch display and the multi-touch pad on the rear, will come pre-installed. By playing “Welcome Park,” users can easily become accustomed to the three dimension-like finger motions used on PS Vita.

SCE will vigorously promote PS Vita towards the launch as the next generation portable entertainment platform and work towards expanding the portable gaming market.*1 Some title names are tentative. Titles may differ by countries and regions.

Sony Ericsson’s Xperia PLAY is the company’s first smartphone focused on bringing serious gaming and a powerful handset to the masses. The slide-out PlayStation-style game controller is innovative and it enables you to interact with games on your smartphone in ways that just aren’t possible on a touchscreen-only device. With that said, there are some obstacles in the way — PlayStation Suite offers limited games, and there are some pretty big bugs even on the stock Android handset. Do the positives outweigh the negatives, though? Jump past the break to find out.

Hardware / Display

The Xperia PLAY’s hardware is, for lack of a better word, interesting. Closed, the device feels like a reasonably thick Android handset. With glossy black plastic and glossy chrome finish, the PLAY doesn’t exude high-end fit and finish, but it doesn’t feel cheap either. It’s deceptively well-weighted, even when opened, and the only complaint I have about the hardware when holding and using the phone is that the left and right triggers on the top of the handset can get in the way when the device is being held one-handed.

The display on the Xperia PLAY is great. It’s crisp, it’s clear, and the colors seem to accurately display anything I can load up on it. It’s one of my favorite displays, to be honest. Sony Ericsson has a beautiful screen with a touch sensitivity that can almost rival Apple’s perfected digitizer and screen. I really can’t say enough about this touch display, it’s probably my favorite of any Android handset, even more so than any qHD displays I’ve seen and used. It’s something Sony Ericsson has just got right, and it’s really refreshing to see.

The Sony Ericsson Xperia PLAY doesn’t fall short in the button department, either. On the front of the device you’ll find the four traditional Android menu keys, and while these are meant to serve as the primary navigation keys for the device, I can’t help but think Sony Ericsson could have implemented something better. Besides being difficult to press in some scenarios, they are ridiculously close to the display itself, and I’ve found myself accidentally tapping the display when I’ve been trying to hit the back button, for example. The layout isn’t ideal, but that’s more of a personal preference.

On the left side of the handset, there’s a 3.5mm headset jack and a microUSB port for syncing and charging. On the top of the device there’s a power on / off button, but the button isn’t on the display part of the sliding mechanism, it’s on the main middle frame. It’s a little niggle, but it would have been great if the power button was on the display piece as it would make it much easier to press when using the device one-handed. A nice touch is that there’s a notification light built into the power button that will let you know of any unread message or alerts, however. On the right side of the PLAY you’ll find left and right trigger buttons with a volume up and down rocker placed in between them.

Something that’s been truly irritating is the lack of an ambient light sensor on the Xperia PLAY. It’s one of the only smartphones in the last few years I have ever seen that lacks this feature, and while it’s not a show stopper, it’s inconvenient to have to go into the device’s setting to manually change the brightness level of the display in different lighting environments.

UPDATE: The Sony Ericsson Xperia PLAY does in fact have an ambient light sensor, it’s just not user-controllable in the settings, and it doesn’t perform too, too well, thus the reason for mistaking it’s existence.

PlayStation Controls

There isn’t a bunch to say here… the Sony Ericsson Xperia PLAY is the first smartphone to feature an actual gaming-grade gamepad, and it’s pretty close to being amazing. There’s enough tactile feedback on every button to make it feel fantastic while playing games, and the button layout is perfect. Compared to add-on third-party attachments for the iPhone or Android devices, the Xperia PLAY really sets the mobile smartphone gaming bar. One of the best parts is the ability to take a third-party app and assign the gamepad buttons to the game or emulator.

Phone / Battery

I have had serious connectivity issues with the Xperia PLAY on Verizon Wireless. I’m not sure if it’s just this review unit in particular, but in places that normally have 3G reception, I was stuck on 1X, and the phone kept on holding a 1X signal instead of switching back to a 3G one. Additionally, the signal level reported by the PLAY was much lower than other Verizon Wireless devices in the same room on the same desk. While this isn’t a scientific method by any means, it’s a little frustrating to see just one or two bars on a Verizon handset in and around New York City — especially when other Verizon phones were getting full signal just a few inches away.

Battery life is pretty decent despite the reception issues, and were completely acceptable for a CDMA smartphone. The Xperia PLAY powered through a day of moderate usage including emailing, web browsing, light calls, and hours of game playing. Your mileage will obviously vary, but all in all the battery on the Xperia PLAY should suit most people’s usage just fine.

Conclusion

The Sony Ericsson Xperia PLAY is one of the most enjoyable game-focused smartphones I’ve ever used. With a solid slide-out hardware gamepad, a fast processor, and stock Android 2.3 Gingerbread, the PLAY is truly in a league of its own. That’s not to say I haven’t had my share of frustrations with the handset. The power button seem glitchy as far as the software is concerned — the phone just won’t turn back on sometimes after the screen is locked, and it’s incredibly frustrating. Verizon’s solid voice and data network didn’t agree with my particular unit, and while I’m not positive this is an across-the-board issue, signal reception and connectivity were probably the worst of any Verizon handset I’ve used in recent memory.

I like the overall concept of the Xperia PLAY — one of the only companies in the world that could pull off a pure gaming handset is Sony Ericsson — and this is a valiant first effort in the space. But in the end, the Xperia PLAY is a little chunky and it feels like it needed a little more time in the oven. If Sony Ericsson decides to introduce a follow up handset, I have no doubt it will be a formidable mobile gaming smartphone that few if any devices could rival. The current iteration is more a concept than a full-fledged gaming device and platform, though if you’re a hardcore gamer, you probably won’t be disappointed with the Xperia PLAY. For general consumers, I’d probably recommend waiting for the follow-up version, however.

As we prepare to finally get our first taste of Sony Ericsson’s Xperia PLAY here in the U.S., we can’t help but think back and remember Sony Ericsson’s hilarious Web-only spots starring Kristen Schaal. We laughed, we cried, and we even readdressed them in a feature covering gaming as a differentiating factor for Sony Ericsson moving forward. It has been a couple of months since the spots first ran but they’re still racking up hits on YouTube, and we’re happy to report that BGR has managed to obtain a blooper reel containing outtakes from the filming of these promo spots. As funny as Schaal was in the videos, we’re sure there are hours of hilarious outtakes hidden away in a studio somewhere. While we do our best to hunt down all the footage, hit the break for a quick compilation of outtakes from the Schaal promos.

Sony Chief Financial Officer Masaru Kato announced to the press on Monday that the company expects to post an annual loss of $3.2 billion for its fiscal year ending in March 2011 — the second largest loss in company history. The news comes as yet another blow for the Japanese consumer electronics giant, whose online networks have been the target of a series of cyberattacks that impacted more than 100 million customers. Sony had previously expected to post a profit this year, however the company had to write off $4.4 billion for a tax credit from a previous quarter. A series of earthquakes that rocked Japan earlier this year had a negative impact on the company as well, slowing production and destroying factories. The affect of the quakes carried over to the company’s first quarter, Kato told the press, but Sony is still optimistic about 2011/2012. For the fiscal year ending in March 2012, Sony expects to post an operating profit of 200 billion yen, or $2.45 billion at today’s exchange rate.

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Consumer electronics tracker NPD Group on Thursday released its tallies for the U.S. gaming industry, revealing continued console sales growth and rebounding software sales. Last month, sales of video game software dipped to $735.4 million from $875.3 million in March 2010. While sales shrank sequentially, as they do in April in many industries, gaming software jumped 26% from $398.5 million in April 2010 to $503.2 million last month. Microsoft’s Xbox 360 was the best-selling console in April, having climbed 60% year-over-year to 297,000 units. Sales of Sony’s PlayStation 3 grew 13% to 204,000 units and Nintendo sold 174,000 Wii consoles, a 37% decline compared to April 2010. Mortal Kombat 2011 was the best-selling software title in April, having sold over 1 million units including standard games and special editions. Portal 2, Lego Star Wars III, Call of Duty: Black Ops, and Tiger Woods PGA Tour 12: The Masters rounded out the top five titles.

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Sony has officially dropped the suggested retail price of the PSP in Europe to €129.99 ($187.29). This follows the company’s February 25th announcement that it was slashing the price of its gaming system to $129.99 in the United States. Sony also said that — beginning on April 14th — PSP owners will be able to access an unlimited cloud-based music service called Music Unlimited. Powered by Qriocity, Music Unlimited will allow PSP owners to listen to customized music channels or sync up with tunes stored on their PlayStation 3, PC, or other Sony devices. “The price cut is aimed at increasing adoption of the player in Europe,” said Sony spokesperson Satoshi Fukuoka. The move may also be tied to the recent launch of the Nintendo 3DS, which we reviewed earlier this month.

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According to data released by The Nielson Company in March, Sony Ericsson’s share of the U.S. smartphone market is barely a blip on the radar. Apple and RIM combine to own more than half the market, HTC is coming up behind them with 19%, Motorola holds 11%, Samsung has a 7% share and Sony Ericsson sits somewhere in the “Other” category, grouped among an undefined number of nameless manufacturers that combine to share roughly 3% of the smartphone market in the U.S. But Sony Ericsson smartphones are preparing to invade American soil, and the company’s assault just started with a boob-stab.

Read on for our full feature including an exclusive interview with the creative team behind Sony Ericsson’s Xperia PLAY ads.

Nearly every major research firm that covers the wireless industry has predicted that Android will continue to grow until it becomes a smartphone platform even more dominant than Symbian was in its heyday. And Google’s mobile OS is well on its way; major players like Samsung, HTC and Motorola have flooded the market with so many Android devices, it is becoming the go-to platform for consumers by default. Millions of users around the world seek out Android for its flexibility and its feature set, of course, but millions more buy Android phones simply because they’re there. Android is what carriers are selling, so Android is what subscribers are buying.

And so a new challenge is born: how does one manufacturer differentiate its devices from the hoards of other Android phones that tout nearly identical specifications, similar features and a similar user experience?

The first generation of devices use a UI layer to differentiate themselves from other manufacturers’ offerings. HTC has its Sense UI, Samsung has TouchWiz, Motorola has the ever-changing MOTOBLUR UI, and so on. But it’s not enough. These UI layers often add a great look and some additional functionality to Android phones, but beyond all the smoke and mirrors they’re still Android phones and they’re still quite similar.

So what’s next?

Rumors of a “PlayStation Phone” go back years, but Sony Ericsson was thinking bigger. One PlayStation Phone would only take the company so far, while an Android-based, PlayStation Certified mobile gaming platform could span numerous devices with various form factors that might appeal to different demographics.

And gamers… what a market to address. Sony has sold nearly 50 million PlayStation 3 consoles and about 103 million original PlayStations to date, and its PlayStation 2 console is the most popular video game system of all time with nearly 150 million units sold. The gaming industry is massive, and the Sony half of Sony Ericsson’s joint venture certainly knows gaming.

So for Sony Ericsson, that differentiating factor was actually born more than 16 years ago in December 1994, when Sony released the PlayStation gaming console. Gaming is in the company’s blood, and it will no longer hide from its heritage. What’s more, gamers are hungry for a smartphone option that affords a more complex and attractive gaming experience. Flicking birds at pigs is great for killing a few minutes while taking a break, but most mobile games don’t even come close to providing the immersive experience afforded by a dedicated console. Developers are beginning to create more immersive games for popular platforms like iOS, but the iPhone’s form factor and other limitations often result in a low ceiling for iOS games.

The mission is clear, and Sony Ericsson’s upcoming Xperia PLAY is the first device to feature the company’s new PlayStation gaming platform for smartphones.

But the smartphone market is anything but a field of dreams, where simply building a great device will bring millions of eager customers to a manufacturer’s doorstep. Building a product is only part of the battle. Sony Ericsson has to aggressively attack carriers around the world so its gaming phones are accessible to customers, and it must also climb to the top of every mountain and shout about its new phones as loud as it can. Or it could opt for a triple-kill.

Sony Ericsson has identified the U.S. as a key market for its new breed of smartphones, but the U.S. can be a tough nut to crack; just ask Nokia. Carriers are the only option for a successful route to market, but in many cases the real fight begins after a company works out a carrier deal. Without a solid marketing and advertising effort, even the most capable phones are doomed to collect dust on store shelves.

Enter Sony Ericsson’s creative team and McCann Worldgroup.

When it comes to advertising, you can’t game gamers. Young or old, video game fans are a discerning, finicky breed and influencing their buying decisions is a challenge creative professionals have struggled with for decades. There are several approaches that have proven successful over the years, however, and the most successful video game franchises in history have often left a trail of brilliant advertising campaigns in their wake.

Advertising is easy to dismiss, but there’s a reason more than $500 billion was spent globally on advertising in 2010. And the value of solid advertising can extend far beyond the immediate return garnered by sales of a specific product. Successful advertising campaigns can stick in the consumer’s head for weeks or even months, resulting in a mind share victory that might even impact sales for years.

“Throughout the years, everybody was speculating and waiting for what everyone was calling, up until now, ‘the PlayStation Phone,’” Sony Ericsson’s Head of Marketing Activations for the Americas, Adaliz Vicens, told BGR in an interview. With so much riding on the device, which will be the first to bring PlayStation gaming — Sony Ericsson’s new point of differentiation — to the Android platform, Sony Ericsson had to swing for the fences when introducing its coming smartphone to the masses.

The company started strong with a commercial that premiered during Super Bowl XLV, but a series of Web-only promotional spots really set the Internet abuzz last month. While the audience for these spots might not have been Super Bowl-sized, the hilarious premise and the soft spoken starlet who was able to transform herself into a swirling ball of rage at the drop of a hat — or, at the drop of the Xperia PLAY’s dedicated game controller — will remain on the minds of millions of viewers for quite some time.

The promos were the brainchild of acclaimed creative firm McCann Worldgroup, and were actualized by Creative Director Sean Bryan and his team. They star actress and comedian Kristen Schaal, who manages to pull off a unique brand of schizophrenic comedy perfectly.

“We knew we wanted to get somebody who had two sides to them because the phone has two sides to it,” Bryan said during an interview with BGR. “So we started off talking about somebody who has a very clean-cut, presentable, official side, and then when they open [the Xperia PLAY], can go to a more intense or out-there side. Some weeks later we arrived at Kristen, who was sort of the perfect find for that; and boy, did she ever bring a lot to the spots in production.”

Schaal — perhaps best known for her work on HBO’s Flight of the Conchords, her quirky segments on Comedy Central’s The Daily Show with Jon Stewart and her voice work for Disney’s Toy Story 3 — is undoubtedly the star of the show. And yet she still manages to leave the viewer with a strong desire to pick up an Xperia PLAY and shoot someone in the face… once his or her bellowing laughter subsides, of course.

But it’s not just hardcore gamers Sony Ericsson is after, and the recurring phrase from Sony Ericsson’s campaign points to a broader range of consumers who might find the device appealing. “The smartphone with everything you need… and the one thing you want,” the ads state. This is an important message for Sony Ericsson to convey as it tries to avoid having its new smartphones painted into a corner.

“We really wanted to say two things with these communications and really, with everything we’ve done about the phone,” Bryan said. “On its own, without the gaming functionality, it’s a really top-notch smartphone. And then when you slide it open, it kind of turns into a whole different experience.”

Sony Ericsson sees a huge untapped market in young professionals who need a modern, capable smartphone but also have a suppressed urge to return to the gaming roots of their childhoods. “Lapsed gamers,” as Bryan calls them.

“[The Xperia PLAY] is meant to reacquaint you with that gamer side,” said Bryan. ”There’s a lot of people out there whose gaming has been reduced to Doodle Jump, or less immersive gaming experiences.” And Sony Ericsson’s new smartphone is designed to give them the more immersive gaming experiences they crave — knowingly or unknowingly — while also providing high-end specs and all of the functionality one might need in an Android smartphone.

While conducting research during the development process that ultimately yielded the Xperia PLAY, Sony Ericsson found that approximately 65% of smartphone users play games on their phones, Vicens revealed. With over 300 million smartphones sold last year and an estimated 450 million smartphones expected to be sold in 2011, that’s a pretty huge target market. Add to that the hoards of “lapsed gamers” who might might not currently spend much time with cell phone games due to the lack of a truly immersive experience, and Sony Ericsson is seemingly on a path with limitless potential.

The shot heard ’round the world is said to have instigated the Battle of Concord, marking the beginning of the American Revolutionary War. It may very well be that the boob-stab heard ’round the world, delivered during what might now be referred to as Schaal’s Battle of Conchords, will help Sony Ericsson prepare for war as it takes on the giants of the smartphone industry in the U.S. and around the world.

Sony Ericsson on Friday launched its highly anticipated Xperia PLAY smartphone in 11 markets today, with six additional markets to follow over the next two weeks. Alongside 60 games, the Android-powered Xperia PLAY smartphone — known ahead of its official announcement as the “PlayStation Phone” — is now available in the U.K., Germany, Russia, Hong Kong and seven other markets around the world. A U.S. launch of the gaming phone from Verizon Wireless is expected some time this spring. Sony Ericsson has also announced the availability of over 60 games within the first week of the device’s launch, including popular titles like Need for Speed, Assassins Creed Altair’s Chronicles HD and Worms. Hit the jump for the full press release.

Sony Ericsson Xperia PLAY launching to market with over 60 games

01 April 2011

• The world’s first PlayStation® Certified smartphone now launching to first markets
• More than 60 games available within the first week, including top franchises Assassins Creed, Need for Speed and The Sims
• Original PlayStation® titles available for download exclusively on Xperia™ PLAY
• Partnerships with over 20 publishers as well as middleware companies Unity and Havok to ensure a steady flow of new innovative games

London, April 1, 2011 – Sony Ericsson Xperia™ PLAY, the world’s first PlayStation® certified smartphone, is now on sale in shops in the UK, Germany, Netherlands, Austria, Switzerland, Sweden, Norway, Denmark, Russia, Hong Kong and Taiwan  with further availability in an additional 6 markets over the next 2 weeks. The Xperia™ PLAY launches with more than 60 games from the industry’s biggest content providers including Sony Computer Entertainment, Gameloft, Electronic Arts and Glu Mobile. The range of games available to download at launch is a combination of original PlayStation® titles, well known 3D titles that take the full advantage of the graphical capabilities and controls of Xperia™ PLAY as well as popular casual games all optimized for the unique game pad.

Sony Ericsson has formed partnerships with over 20 developers from big publishers to independents, from middleware providers Havok and Unity to engaging Android developers, to ensure a steady flow of new titles for Xperia™ PLAY. Some of the highlights include:

• Assassins Creed Altair’s Chronicles HD – One of the most popular gaming franchises, with action, puzzles and stealth gameplay set in the Middle East of the Crusades
• Need for Speed – Grab the wheel of the fastest, hottest, and most powerful cars in the world. One of the most successful video game franchises of all times.
• Tom Clancy’s Splinter Cell – The latest instalment in this key franchise. Special Forces operative and renegade Sam Fisher returns to fight a corrupt secret agency.
• Dungeon Defenders Second Wave – Stunning graphics, intense gameplay and exclusive on Xperia PLAY.
• Gun Bros – Choose your weapon and join the ‘Freakishly Rugged’ action heroes Percy and Francis Gun as they take on a terrifying menagerie of alien beings.
• Galaxy on Fire 2 – Escape into space with hours of deep gameplay and mind blowing graphics in this space exploration game.
• Guns ‘n’ Glory – You lead a gang of bandits in this popular and award-winning casual tower defence game with a hilarious western theme.
• Worms – Send your worm platoons into battle in this award-winning turn-based strategy game.
• Zenonia 2 – The lost memories – Classic and popular RPG. Numerous quests following an epic storyline.
• Backstab – An epic 3rd person pirate adventure that incorporates intense sword fights and other dynamic combat modes. Launching on April 14th exclusively on Xperia™ PLAY.
• N.O.V.A.2 – Awesome graphics and intense multiplayer gameplay. This First-Person Shooter makes its Android debut exclusively on Xperia™ PLAY.

In addition Sony Ericsson is happy to confirm that Asphalt 6 – the latest instalment of one of the leading and top-selling racing games will be available for free exclusively on Xperia™ PLAY.

The games are downloadable via the “Xperia™ PLAY launcher”, an application that is activated by sliding open the gamepad.  The “Xperia™ PLAY launcher” recommends games and enables consumers to search for top titles optimised for Xperia™ PLAY on Android market.
There is also a range of PlayStation® original games available at launch (in select markets initially). These are comprised of a pre-install of the PS One classic Crash Bandicoot®* and a further 5 PlayStation® original games available to download via the PlayStation® Pocket application in Xperia™ PLAY.

• Cool Boarders 2 – Time to pick up that snowboard again and rip through the snow with 16 intense racetracks.
• Destruction Derby – Original car carnage.  Buckle yourself into a new car and destroy it but send your opponents to the junkyard first.
• Jumping Jack Flash – A first person platformer like no other. Leap around 6 colourful worlds in the cockpit of a robotic rabbit, hunting for the evil galactic property developer Baron Aloha.
• MediEvil™ – Resurrected 100 years later you have returned to defeat the sorcerer Zarok.  Perhaps the world’s least worthy hero, you set out to save the land once again–for the first time.
• Syphon Filter™ – Become Gabe Logan: Guerrilla war expert. A man on a personal crusade to bring down an international terrorist ring and eliminate a deadly virus.

More games from Sony Computer Entertainment will be added to Xperia™ PLAY on a regular basis.
Dominic Neil-Dwyer, Head of Market Development at Sony Ericsson commented: “It’s great to get Xperia PLAY into consumers’ hands at last.  This is just the start and the future is exciting based on all the interest and support we have from the game industry.  A steady stream of fresh innovative content will be coming to Xperia PLAY over the coming months.”

Xperia™ PLAY will be available in the following markets starting from today and in the next two weeks: United Kingdom, Germany, Austria, Spain, France, Sweden, Norway, Denmark, Finland, Netherlands, Switzerland, Singapore, Taiwan, Hong Kong, Russia, India and Portugal.

As announced at Mobile World Congress Xperia™ PLAY will be in stores in the US market with Verizon Wireless this spring.

Appendix: Games available within the first week of launch:
Bruce Lee Dragon Warrior from Digital Legends (pre-installed)
FIFA 2010 from EA Mobile (pre-installed**)
Sims 3 from EA Mobile (pre-installed**)
Star Battalion from Gameloft (pre-installed**)
Tetris from EA mobile (pre-installed**)
Asphalt 6 from Gameloft (free to download)
Dungeon Defenders: Second Wave from Trendy Entertainment
Galaxy on Fire 2 from Fishlabs
Assassins Creed from Gameloft
Need for Speed SHIFT from  EA Mobile
Worms from EA Mobile
Nova 2 from Gameloft
Modern Combat Black Pegasus from Gameloft
Guns n Glory from Handygames
Reckless Racing from Polarbit
Real Football 2011from Gameloft
Gun Bros from Glu Mobile
Racer Luma from Arcade/Unity
Cordy from SilverTree Media
Aporkalypse from Handygames
Brothers in Arms Global Front from Gameloft
Guerrilla Bob from Angry Mob Games/Unity
Let’s Golf 2 from Gameloft
Zenonia 2 from Gamevil
Cyberlords from Handygames
Guitar Hero™ Warriors of Rock Mobile from Glu Mobile
Age of Zombies from Halfbrick Studios
Spectral Souls from HyperDevBox Japan
Splinter Cell Conviction from Gameloft
Air Attack from Art in Games/Unity
Armageddon Squadron from Polarbit
Uno from Gameloft
InfeCCt from Handygames
Spiderman total Mayhem from Gameloft
Millionaire City from Digital Chocolate
Avatar from Gameloft
Raging Thunder 2from Polarbit
Homerun Battle 3D from Com2us Games
Aftermath XHD from Jakyl
I Must Run from GameLion
Baseball Superstars 2011from Gamevil
Ground Effect Pro from Jakyl
ZeNonia from Gamevil
Super KO Boxing  2 from Glu Mobile
Farm Story from Team Lava
Wave Blazer from Polarbit
Soccer Superstars from Gamevil
Battle Bears from Skyvu
Tower Blocks New York from Digital Chocolate
Super Dynamite Fishing from Handygames
Iron Sight from Polarbit
Toonwarz from Polarbit
Restaurant Story from Team Lava
Escape from AMA
Raving Babies from AMA
Bakery Story from Team Lava
Denki Blocks! Deluxe from Jakyl
Rollercoaster Rush from Digital Chocolate

PlayStation original games:
Crash Bandicoot® from Sony Computer Entertainment Inc.
Cool Boarders 2 from Sony Computer Entertainment Inc.
Destruction Derby from Sony Computer Entertainment Inc.
Jumping Jack Flash from Sony Computer Entertainment Inc.
MediEvil™ from Sony Computer Entertainment Inc.
Syphon Filter™ from Sony Computer Entertainment

* In France Syphon Filter™ will be pre-installed on Xperia PLAY.
** Pre-install may vary by territory