Don't Count on 3D Gimmicks to Revive Video-Game Sales

Corporations are 3D crazy in Hollywood and TV Land -- and now also in the video-game industry. Nintendo (NTO) has its upcoming portable 3DS system, Sony (SNE) included 3D support in its latest PlayStation 3 software update, and now one of the leading third-party companies is claiming that half of all video games will be 3D by 2012. The hypothesis from Ubisoft CEO Yves Guillemot is not only unrealistic, but undesirable, and it won't help the industry's slumping sales.

Mike Jackson from CVG:

Ubisoft has said 3D gaming will quickly become a major factor in video games, estimating that around 50 per cent of all new games will be 3D-enabled by 2012. "We will see more and more product coming in 3D on 360 and PS3 but also on portable machines," said the publisher's CEO Yves Guillemot during a recent investors call.

"We can count on substantial grown in the 3D market just because it's more immersive, so it will be a good way for the industry to give even more emotion to the gamers," he added. "I think next year we should see maybe 15-20% of games will be 3D on next-gen consoles ... and the following year will be at least 50% of the games."

• 3D as a required experience: As it has been argued before, 3D doesn't yet have enough content yet to outweigh the extra costs for a special television and, perhaps, glasses. It's doubtful, though, that video games will create the tipping point. First off, Electronic Arts (ERTS) and other companies are pulling off questionable tactics to get gamers to pay the $60 retail price for their games -- what makes them think these same gamers will foot the bill for a several thousand dollar Panasonic (PC) setup (and the inevitable $10 - $20 price bump for 3D titles)? Second, content creation, such as that allowed by Sharp's (SRP) upcoming 3D cellphone video, seems a lot more likely to bring people to the next dimension than a single-use video game. This is one of the few cases where video games seem like too narrow of a medium to get people on the 3D train.
• 3D as a "selling point": With video game sales slumping, publishers are more desperate than usual to find a gimmick. The earliest Nintendo Wii games were rehashes of previous titles using the new controls, while about half of the Apple iPad launch titles were high-resolution versions of the same iPhone/iPod touch games. A declaration that 3D is a selling point will diminish overall quality, particularly for those publishers that believe a unique visual experience makes up for shoddy or rushed development.

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