Quest

Facebook Going Meta: How It Plans to Build Its Own Metaverse

In October 2021, Facebook officially rebranded as Meta, signaling a strategic pivot toward the development of a comprehensive metaverse.

• Facebook has rebranded to Meta to signal a strategic shift toward building a 3D, immersive metaverse, with financial reporting now split into 'Family of Apps' and 'Reality Labs' segments.
• The company is committing $10 billion in investment toward VR and AR development, alongside a $150 million fund dedicated to supporting creators and new technology in the sector.
• Meta is phasing out the Oculus brand, renaming its hardware and software ecosystem to 'Meta Quest'.

Devs Asked to Remove Sexist and Harassment-Related Content From Resident Evil 4 VR

The development of the virtual reality adaptation of Resident Evil 4 involved the removal of specific dialogue and scenes deemed to contain sexist content or harassment.

• Armature Studio removed various lines of dialogue and scenes from the VR version of Resident Evil 4 at the request of Oculus VR and with the approval of Capcom.
• The removed content includes dialogue characterized as sexist, flirtatious, or related to sexual harassment, such as the 'ballistics' joke regarding character Ashley Graham.
• Approximately 30% of the original dialogue from the game's ending was removed, including a scene where Leon Kennedy is rejected after asking for a phone number.

Console Subscription Wars

This analysis explores the shifting landscape of console gaming subscriptions and the performance of the virtual reality (VR) market as of late 2021.

• Microsoft’s subscription-first strategy is yielding massive scale, evidenced by Forza Horizon 5 reaching 10 million players in its first week of availability.
• Sony is developing a multi-tiered subscription service, codenamed Spartacus, to compete with Xbox Game Pass while maintaining a traditional retail model for major first-party releases.
• The VR market shows a significant disparity in commercial reach, with the Oculus Quest 2 reaching 10 million units while niche PC VR titles like Eye of the Temple struggle to exceed 5,000 sales despite high critical acclaim.

Mobile GameDev Playbook: Deconstructions – Clash Quest

The analysis of Supercell’s Clash Quest serves as an introductory installment in a series focused on deconstructing mobile game design, mechanics, and market positioning.

• Supercell developed Clash Quest as its third attempt to enter the puzzle RPG genre by balancing quick-fix puzzle mechanics with the deeper progression systems typical of RPGs.
• The game serves as a case study for integrating casual puzzle gameplay with meaningful, long-term player engagement features.
• GameRefinery published this deconstruction analysis on September 16, 2021, as the inaugural episode of their Mobile GameDev Playbook video series.

VR Game Discovery, Reddit, Trailers & More

The current landscape of virtual reality (VR) game discovery is undergoing a significant shift driven by the success of standalone hardware.

• The Oculus Quest Store now generates approximately 70% of revenue for major VR titles, establishing it as the dominant platform for commercial success.
• The Oculus Quest 2 accounts for over 30% of all headsets used on Steam, signaling a shift toward standalone hardware as the primary VR experience.
• The global gaming market, including hardware, development tools, and sectors like esports, is valued at $335.5 billion.

Plus: How Does 'Long Tail' Differ for Year-Old Games?

Analysis of Steam data from September 2021 reveals significant variance in the "long tail" performance of games one year after launch.

• Top-performing Steam games see a median review multiplier of 3.1x between their first week and their first year, though extreme outliers pull the average up to 5.66x.
• Aggressive discounting and subscription integration are primary drivers of long-tail growth, exemplified by FIFA 22 achieving a 29.6x multiplier through 84% discounts and EA Play inclusion.
• Niche titles with high price points and minimal discounting experience significantly lower long-tail performance, as seen with Melty Blood: Type Lumina’s 2.16x multiplier.

TWIG 146: The Real Problem with VR

The current state of the consumer virtual reality (VR) market is characterized by a reliance on heavy corporate subsidization, specifically from Meta (formerly Facebook), which serves as a critical life-support system for the industry.

• The VR market is currently dependent on heavy corporate subsidization from Meta, which acts as a critical life-support system for the industry.
• Despite the Meta Quest 2 reaching an install base of approximately 10 million units, engagement remains low, with most Steam VR titles maintaining fewer than 100 concurrent users.
• Major third-party developers are hesitant to invest in VR because the current user base and engagement levels do not justify the high production costs.

The Faces of 'the Creator Economy' for DIY Games

This analysis explores the emerging "creator economy" within DIY game platforms, focusing specifically on Core, an Unreal Engine-based creation and play environment.

• UGC platforms are shifting the burden of innovation from professional studios to player-creators, effectively de-risking the business model for publishers.
• Core’s parent company secured $100 million in funding, highlighting significant investor confidence in the DIY game creation sector.
• Top-performing creators on platforms like Core are often veterans of modding communities such as Garry’s Mod, demonstrating a high degree of skill portability.

Analyzing the Top‑Grossing Steam Games of 2021

This analysis examines Steam’s top-grossing titles of 2021 to identify the underlying economic trends and product characteristics driving success on the platform.

• The 'Games as a Service' (GaaS) model is the primary driver of top-tier financial success, with 92% of the top 24 Platinum and Gold Steam titles utilizing in-app purchases or DLC.
• Steam revenue tiers are highly stratified, with Platinum status representing gross revenue exceeding $100 million, while the Bronze tier encompasses games earning between $20 million and $30 million.
• Market entrenchment is significant, as over 50% of the top 24 titles in 2021 were released prior to that year, demonstrating that established hits with consistent updates outperform new releases.

Why Games Get Big Post-Release Discovery Boosts

This analysis explores the mechanisms behind post-release discovery surges for PC and console games, challenging the notion that a game’s initial launch trajectory is unalterable.

• Adding social functionality like online multiplayer or co-op modes is a primary catalyst for revitalizing a game's reach and long-term commercial performance.
• Transitioning from Early Access to a 1.0 release functions as a critical marketing milestone that allows developers to re-pitch their title to media and influencers.
• While influencer-driven spikes are often short-lived, they provide significant boosts to a game's long-tail sales and visibility on Steam's front-page.

A Mighty Quest for Epic Loot

The Epic Games versus Apple litigation represents a pivotal moment in the gaming industry, serving as a catalyst for intense scrutiny of platform-holder power dynamics.

• The Epic vs. Apple trial has forced major platform holders like Sony, Microsoft, and Nintendo to publicly disclose sensitive business documents, potentially damaging Epic's long-term relationships with these partners.
• Evidence presented during the trial suggests Epic used aggressive tactics, including leveraging Unreal Engine 4 license expirations, to pressure Sony into enabling cross-platform play for Fortnite.
• Epic’s legal challenge appears to be less about dismantling centralized platforms and more about establishing its own dominant position, as the company remains heavily dependent on third-party storefronts for the vast majority of its Fortnite player base.

Aiming Q1 2021 Quarterly Report

This quarterly report details the financial performance of Aiming Inc. for the first quarter of 2021, covering the period from January 1 to March 31, 2021.