Hot Five

The PG.biz Hot Five: Instagram buyout a Facebook fumble, Microsoft risks resetting Windows Phone and Nexon eyes up EA

Last week's top five stories

The PG.biz Hot Five: Instagram buyout a Facebook fumble, Microsoft risks resetting Windows Phone and Nexon eyes up EA
Welcome to PocketGamer.biz's weekly rundown of the stories clocking up the hits, picking up the click-throughs and generally keeping the advertisers happy by serving up page views.

Or, if you'd prefer, the top five stories currently dominating our readers' attention.

Each week, we'll be counting down the biggest news from the previous seven days, giving just a glimpse of the industry's big issues, from five to one.



Fishlabs' Kai Hitzer on why 'brand games' will leave free-to-play for dustAccording to marketing director at Germany's Fishlabs Entertainment Kai Hitzer, the hype currently surrounding the freemium model is much exaggerated.

Speaking in an exclusive column for PocketGamer.biz, 'brand games' – an area in which Fishlabs has notable experience with games based on both Barclaycard and Volkswagen – could serve as a viable alternative for many developers, delivering the kind of creative freedom freemium games just can't deliver.

"Since the market for mobile games and browser games is jam-packed with titles that can be played free of charge, it is absolutely mandatory that the users will be sucked in right from the beginning," detailed Hitzer.

"Otherwise, they will simply move on to another title and see if it will meet their expectations any better. Unlike F2P titles, however, brand games do not need to worry about constantly finding new ways to regain their production costs."



Opinion: Facebook's billion buyout of Instagram smacks of an industry hooked on its own hypeNever one to avoid ruffling a few feathers, PocketGamer.biz deputy editor Keith Andrew decided last week was a good time to declare Facebook's acquisition of Instagram a little bit nuts.

Paying out $1 billion (more or less) for an app that doesn't actually do anything Facebook couldn't knock up "in an afternoon" smacks of the boom and bust period the web suffered in the late 1990s.

In short, the app business is starting to believe its own hype.

"The product Facebook acquired isn't one packed with new technology previously out of its reach," he detailed.

"Nor is Instagram a platform full of unique sharing tools it couldn't hope to emulate. In reality, Facebook has paid out for an app that, on the face of it, is actually just a little bit 'trendy'."



Opinion: Microsoft can't afford to press the reset button with Windows Phone 8Our second opinion on the countdown focused on worrying rumours that existing Windows Phone 7 handsets won't be able to upgrade to Windows Phone 8 when it launches later this year.

In the view of deputy editor Keith Andrew, such a move risks killing the platform's momentum before it has even got going.

"Retailers are unlikely to want to push devices they know will be out of date within a matter of months, and consumers savvy enough to have a handle on the ins and outs of Windows Phone will be equally resistant to paying out for a smartphone that - in almost Android fashion - will be locked out of any future updates," claimed Andrew.

"Cutting off those who have already parted with their cash for a Windows Phone device will not only damage consumer relations, but it will also reset Microsoft's mobile userbase to zero for the second time in as many years."



EA shares jump 8% as report points to Nexon takeover bidIt seems unlikely from the outside looking in, but news Korean publisher Nexon might be about to launch a takeover bid for Electronic Arts captured people's interest last week.

The rumour, which was kickstarted by the South Korean press but soon picked up by Bloomberg, caused EA's shares to rise by $1.22 to $16.23 in response.

Sums scribbled on the back of an envelope by the masterful minds at PocketGamer.biz, however, suggest Nexon's coffers may not be quite big enough to swallow EA whole.

Until one of the two parties involved denies the story, however, interest will continue to build.



Wii U and nextgen console launches to suffer thanks to social gaming surge on smartphonesThe idea that the rise of smartphones will have some sort of impact on forthcoming consoles from 'the big three' is hardly revolutionary, but it certainly generates hits.

Last week saw a collection of industry analysts predict the launches of new systems from Nintendo, Sony and Microsoft would all suffer thanks to popularity of mobile games, with Wii U and the next PlayStation likely to endure slower sales as a result.

"Unfortunately, we do not expect a console refresh to fully offset the secular declines in console gaming," said investment bank Piper Jaffray in a note.

"We believe console gaming will continue to be a time-share donor to social networks, mobile games and tablets. We, therefore, favour companies with increasing exposure to social/mobile gaming, including Zynga and EA."
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With a fine eye for detail, Keith Andrew is fuelled by strong coffee, Kylie Minogue and the shapely curve of a san serif font.