|One of the new Nintendo ads for GameCube.
Despite a raft of dismal economic news and the pall cast by the Sept. 11 terrorist attacks, marketers appear braced to let the games begin.
Microsoft Corp., Nintendo Corp. and Sony Computer Entertainment are poised to spend more than $400 million on U.S. marketing in the fourth quarter -- which starts today -- to support their video-game consoles and related software. Analysts hold out hope the $10 billion interactive entertainment industry will remain a bright spot in a sluggish holiday-buying season.
$500 million push for Xbox
Microsoft, which delayed the launch of its Xbox video-game console ($299) from Nov. 8 to Nov. 15, has pledged $500 million in global marketing (about $300 million earmarked for the U.S.) to support its entry into console gaming and has already begun the ad and marketing blitz with teasers in gaming publications. At least one teaser features one of Microsoft's national promotional partners -- Tricon Global Restaurants' Taco Bell.
Flagship games including combat game "Halo," sports game "NFL Fever" and adventure
|Character's from Xbox's new games.
Event marketing with sneaker marketer Van's begins Oct. 6, while a mobile event for sampling Xbox and its games starts in San Francisco in late October. Interpublic Group of Cos.' McCann-Erickson Worldwide, New York, handles Xbox advertising. The aspirational campaign attempts to put gamers inside the gaming experience with the requisite passion and jaw-dropping action.
Nintendo: sleeping giant?
Nintendo's GameCube ($199), launching Nov. 18, is likely to be the sleeping giant in the console race. Nintendo "will do very well long term and it will displace some spending," said Lee Uniacke, group publisher, Ziff Davis Media Game Group.
With the GameCube, Nintendo is determined to move beyond its core audience of young children to lure the 12 and older set. It's spending more than $75 million on U.S. marketing in the fourth quarter, with an edgy ad campaign from Bcom3 Group's Leo Burnett USA, Chicago.
|Sony's PlayStation has 16 million users.
Nintendo has seven TV spots to support GameCube and flagship games such as "Luigi's Mansion." It will have six titles available at launch and 17 by Christmas. To reach older teens and young adults, it's advertising in Wenner Media's Rolling Stone and a raft of other magazines.
"This is a battle about the Xbox and the GameCube," said John Davison, editorial director, Ziff Davis Media Game Group. "For the first year, they're fighting for the No. 2 slot." Sega Corp.'s exit from the console market earlier this year leaves just three players.
16 million Sony users
Meanwhile, Sony's PlayStation 1 and 2 have a combined 16 million consumers in the U.S. Sony's challenge, analysts say, is to maintain momentum and rack up software sales for both systems.
The Sept. 11 attacks prompted software publishers, such as Electronic Arts, to alter packaging, while Sony and other leading publishers tweaked game scenery and, to some extent, action within the games. Microsoft didn't change Xbox creative, but did remove the World Trade Center in its "Project Gotham Racing" game, said Don Coyner, Xbox director of marketing.
Video game violence
"There's an extreme amount of sensitivity," said Schelley Olhava, senior analyst with International Data Group's IDC. The industry came under scrutiny two years ago after the Columbine High School shootings in Colorado as parents and elected officials blamed violent video games and TV shows for triggering the events.
Ms. Olhava thinks things are different now, but that "at the end of the day, people like to play these genres of video games" -- action/adventure, combat and simulation -- "that some may perceive as violent."
Ms. Olhava believes that playing such games doesn't affect gamers' long-term behavior.
Ziff's Mr. Uniacke said he lost about 2% of planned ad revenue in November and December magazines after software marketers pulled ads because some components -- ad creative, game packaging or the titles themselves -- were deemed inappropriate following the attacks. Still, he maintained the basic nature of many action/adventure games will continue.
"A hero overcoming some kind of aggression isn't going to change," he said.
The industry has high hopes for Christmas 2001 despite recent events. "More people are going to be staying home," Mr. Uniacke said.
Added Mr. Davison: "Escapism is something everyone needs."