Entries Tagged as 'Industry'

What is a Successful Game?

From a critical standpoint, Metacritic is about objective as things are likely to get. My own research uses Metacritic, and most of the industry looks to it for the “official” critical score. Steam embeds the Metacritic score right in the interface, and Microsoft announced yesterday that a low Metascore will be one of the trigger points for having your game de-listed from XBLA.

That said, the critical score isn’t the be-all and end-all of life. Gamasutra ran an opinion piece by former Eidos president Keith Boesky to that effect earlier today. Boesky’s main point is that critical success is not indicative of commercial success. It becomes intrinsically dangerous to pivot your entire business model on the critical reviews of your products.

If you look at a publisher like EA, they produce games that are commercially viable, even lucrative, but consistently receive mediocre reviews from critics. EA has published only three of the top 20 games on the 360, and is the developer on none of them. Additionally, of the hundreds of games EA has published since the release of the Xbox 360, only a handful have a Metacritic score above 80 for that system. EA’s new CEO, John Riccitiello has taken this to heart, having several times publicly stated that EA will be concentrating their efforts on producing newer, higher critical quality games than have been seen in recent years. That said, Riccitiello has also been quoted as saying that “You don’t cash MetaCritic, you cash cheques.”

There’s certainly a balance to be struck between the realities of business, and trying to create a game that tickles the critics. At the end of the day, I think that all of this concern is smoke and mirrors for the developer. All a developer can really do is try to create an amazing experience, to push the envelope of what’s possible with a technology, and to manipulate a player in new and interesting ways. If you can work your craft well enough, and on a scale that will appeal to a broad enough group of people, both the critical acclaim and commercial success will come. Understanding how to do that is where the mastery comes into play.

ESA Exodus

The Entertainment Software Association seems to be losing a lot of major players lately.  LucasArts pulled out last week, followed by Activision Blizzard earlier this week, and now iD software.  EA has stated they have no intention of leaving, but nevertheless, this smells strongly of a divisive precipitating event that’s cleaving apart the ESA’s members.  I find it hard to believe that this is a coincidence, so what’s the triggering factor?

Byron Review

If you haven’t checked it out yet, the Byron Review has been released (full text here).  Tanya Byron, she’s a widely respected clinical psychologist who actually knows what she’s talking about.  She was commisioned by the Prime Minister of the UK to conduct an indepentant review of the risks to children from exposure to potentially inappropriate content on the internet and in video games.  Instead of a knee-jerk reaction typical in the media and Mothers know best, Byron presents a rational, evidence-based and analytical view of the situation.

Parents are often much less adept at the usage of technologies that have emerged during their child’s lifetime, and the review recommends improving the support framework so that parents can make decisions about their children in an educated manner, instead of reacting to fear-mongering impulses.

Some sample recommendations:

  • Globally, the video games industry is thriving and the popularity of video gaming amongst children and young people is widespread. Games are diverse and developing rapidly, especially with the growth of online gaming and increasing convergence with other media, such as film. We need to take a sophisticated approach to classifying games and managing children’s access to them in the context of this diversity and convergence. We also need to recognise that there is no single solution to the problem of children and young people playing games that might not be appropriate for them.
  • There are some possible negative effects of violent content in games, but these only become ‘harmful’ when children present other risk factors
  • When it comes to content, parents want better information on which to base their decisions – but importantly, they do see it as their role because only they can take into account the characteristics of their children and the context in which they play. This is reinforced in the research evidence, where context and what the child brings to the gaming experience is key to understanding potential risks and harms.
  • Children and young people need to be empowered to keep themselves safe – this isn’t just about a top-down approach. Children will be children – pushing boundaries and taking risks. At a public swimming pool we have gates, put up signs, have lifeguards and shallow ends, but we also teach children how to swim.

What Ever Happened to Tex Murphy?

Chris Jones and Aaron Conners?

Backup.  Today’s Zero Punctuation regarding Zack and Wiki features references to several old adventure games (Yahtzee himself being a designer of some very emotive ones).  Among these are two piece of box art that are probably unfamiliar to most people:  Under a Killing Moon and The Pandora Directive.

These two games are are the 3rd and 4th installments in what is generally referred to as the Tex Murphy adventure series.  You play a cynical middle-aged Private Investigator set in post WW3 San Francisco.  The first two games (Mean Streets and Martian Memorandum) are controlled in a reasonably standard side view that we have come to expect of adventure games, with the addition of a flight simulator-esque interface to travel from place to place.  Mean Streets in fact was originally designed as a flight simulator with some adventure elements added in, although the reverse ended up being the result.

The three latter games (Under a Killing Moon, The Pandora Directive, and Overseer) all use live character actors, and most of the game takes place in a first person view of a mostly photo-realistic environment which is accomplished by projecting photographs onto 2D meshes.  These adventure games were hilariously funny, intuitive, and kept you playing until the very end.  The interface was extremely ambitious for the time (Moon came on 4 CDs in 1994, Pandora came on 6, and Overseer on 5 plus an alternate version on DVD, the first game I ever saw do this).  Nevertheless, the game suffered from a variety of mostly technical issues, and were being made during the twilight of adventure game popularity.  Sales were, one can assume, not exemplary.

A year after Overseer was released, the Utah based Studio - Access Software - was acquired by, wouldn’t you know it, my company, Microsoft!  Microsoft was, I assume, primarily interested in Access software’s more lucrative property in Links Golf, because the Tex Murphy series was never heard from again.  This is particularly unfortunate because Overseer ends in a cliff-hanger.  In 2004 Microsoft sold Access Software, now known as Indie Built, to Take Two Interactive, and it became part of the 2K Sports brand, again emphasizing the golf label over the now defunct Tex Murphy series.  Indie Built created a snowboarding game for the launch of the 360, and was then closed by Take Two in 2006, with no public reasons given for the closure.

Chris Jones and Aaron Conners were the designer and writer, respectively, for this phenomenal series, with Jones playing the titular Tex Murphy.  Aaron Conners also made novel versions of Under a Killing Moon and Pandora Directive, which are pretty good for pulp fiction.

Both Chris and Aaron moved with the acquisition to Microsoft to work on projects there, primarily on the Links series and the Amped snowboarding series.  Aaron seems to have moved to 2K Sports following the second sale, and worked under the 2K label until Indie Built was closed.  He has subsequently left the software industry entirely, and has started a contracting company called WordPlay LLC.

Chris on the other hand appears to have left around the same time Indie Built was sold to Take Two, becoming a partner in an new company called TRUGOLF that makes life-sized golf simulators for what I can only assume to be the “I have a vacation house in the Hampton’s” crowd (One can assume that Chris Jones really, really likes Golf).  Both he and Conners still live in Salt Lake City, Utah.
So what’s to become of Tex? Well, Tex has a sizable following over at James LeMosy’s Unofficial Tex Murphy Site.  Last month Aaron Conners left a note on the forums saying that he and Chris have a new game they’d like to make, and are actively searching for a publisher.  If that goes well, they’ll try to use it as a shoe-horn to make the final chapter of the Tex Murphy series, in some capacity.  The story is finished, apparently, and waiting to be told.  It’s been 10 years since we last heard from Tex Murphy, hopefully it won’t be another 10 before he finishes his tale.

If you’ve been negligent, you should try to get your hands on a copy of Under a Killing Moon and The Pandora Directive.  If you copy the contents of the CDs into folders on your hard-drive, you can get DosBox to mount them as separate CD-ROMs, and you can avoid the interruptions you would have encountered at the time of having to switch CDs constantly because the games natively support putting each CD in it’s own CD drive (if you for some reason had 4 CD-ROMs in your PC in 1994).  There’s a lot to learn - both good and bad - in terms of game design from these games, and the writing is extremely rich in both.  I would highly recommend the investiture.

Get Over the Hardcore

Stardock has built themselves a tidy little market turning around profits that are orders of magnitude higher than their development costs (under a million!).  They’ve done this on the piracy haven that is the PC, and without using DRM.  In the dawning hours, as the industry is starting to realize the potential in casual gaming, I think we can predict a related move:  Getting away from the hardcore gamer.  Trends that begun with the first high resolution FPS in the nineties are beginning to reverse.  I predict in the next 5 years a major shift away from those large budget titles and into a field of much smaller, more innovative and original titles with smaller development budgets, delivered through digital distribution, and appeasing a much broader audience than the twitch crowds.

And I’m looking forward to it.  (On a related note, Dreamfall is getting released on Xbox Originals on Monday!)

A Week in Cuba

As previously mentioned, I went on vacation last week, and apparently the world does not stop while I’m laying on the beach.

Big news of the last week.  Apparently it was GDC or something.  I wasn’t there, so if you want juicy GDC goodness, you’ll have to look elsewhere.

Microsoft

  • Microsoft, in a new initiative called Dreamspark is making much of its developer software free to students.  This software includes Visual Studio 2008, SQL Server, XNA Game Studio, XNA Creator’s Club Subscription, and Expression Studio.  That should be plenty of tools for would be game developers to muck about in.  Details are here.
  • Microsoft is dropping support for HD-DVD with the discontinuation of the add-on for the Xbox 360.  All remaining units are being cleared at firesale for $50.  I would not be surprised if there was a Blu-ray add-on in the future.
  • Microsoft announced during the GDC 2008 Keynote a new service, the so-called Xbox Live Community Games.  Under this service, users can build a game using XNA Game Studio, and then upload it directly to a community portal where the game is democratically reviewed.  The reviewing process is intended to look for infringing or objectionable material.  The best of these games get automatically uploaded to Xbox Live for the masses to enjoy.  No specifics on pricing, or if the developer is getting kickbacks (as one would assume they would if Microsoft is collecting on their work).

Sony
On the Sony side of things, Phil Harrison, one of the founding members of Sony Computer Entertainment, and the president of SCE Worldwide Studios, has submitted his resignation.  Changes in leadership often come with widespread changes across the board, but it depends on the size and momentum of the company in question, and Sony is rather largeish, so I would not anticipate a massive change in the direction of their games.

Australia

Australia is talking about finally getting a new rating that will allow more mature titles to be sold there.  Unfortunately, I doubt this will alleviate the massive delays they usually incur before North American/Japanese release, and release to the land down under.

Electronic Arts

EA is offering to buy Take Two!  I would suggest in reaction to the recent Activision/Vivendi merger, EA is looking to add some more meat to its already colossal frame.  EA’s new CEO John Riccitiello has mentioned that he’s extremely unhappy with the scores EA’s games have been getting of late, so there might be some incentive to own some games that are critically acclaimed (which might have fueled the recent acquisition of Bioware as well).  Take Two is brimming with talent, including the developers of the Grand Theft Auto series (Rockstar), Bioshock (2K Games), and Civilization (Firaxis).  While EA’s initial bid is a bit lower than Take Two is looking for, most analysts are expecting this deal to go through eventually at some price point.

On a side note, Take Two is the current owner of one of my favorite IPs of all time, the Tex Murphy series.  This series was created by Access Software (later renamed to Indie Built) in the 90s.  Microsoft acquired them for the Links Golf series, and then sold the company to Take-Two who then shut it down.  While a revival is not likely at EA, it’s marginally more likely than at the parent who shut them down in the first place.

EA has a habit of killing great teams by using simple business math.  If you have everyone using the same tools and processes, costs are lower.  Unfortunately, this slows down and breaks the dynamic that produced the great team in the first place.  This is something you can do with teams that are having trouble realizing their full potential, perhaps due to infrastructural problems, but when you acquire a really solid team, it’s important that you just leave them alone to do their thing.  Riccitiello seems to be aware of this, so perhaps Take Two’s properties are not going to join the legacies of Westwood, Bullfrog, and Origin.

Havok

Havok is free, to which I say, OMGWTFBBQ.  Well, okay, it’s only free on the PC, but as of May 2008, you at home will be able to download your very own copy of Havok Complete (which includes the Physics and Animation packages).  This is a non-commercial license, but it allows hobbyists to get their hands dirty with the most widely used physics engine in the PC gaming space, which is good for companies looking to hire people who know Havok already.  This theoretically lays some groundwork for Havok’s more specialized products for behavioral animation, deformable solids, and cloth rendering.

And that’s all that happened this week, I’ll be posting on a more semi-regular basis now.

A Critique of Video Games

To say that there’s a debate on whether or not video games are art is rather disingenuous. There are those who feel that video games are not, but I think it’s been demonstrated that they don’t know what the hell they’re talking about. The very question of “Are video games art” doesn’t make sense. One doesn’t ask if drawings or film are art, these things are a medium through which art can be expressed. Anything can be a medium through which art is expressed, but that doesn’t mean that everything created using that medium is art. I doubt that Mr. Ebert would deny film being a viable medium for art, but he’s not exactly advocating the artistic merits of American Pie either.

And so we could discuss what the qualifications are for artwork, but I could make an entire blog devoted to that. The reality of the situation is that those types of decisions are made by consensus of the art critic community. We currently have a lot of game reviewers, who are paid money to play games and essentially tell the world if those games are worth paying for. This is only a valuable service only insofar as you can trust the integrity and opinions of those reviewers. Likewise, this service could be performed by a community, but is only useful insofar as you can trust the opinions of that community (and if the community is primarily composed of the idiots you find on XBL making various homophobic references, I don’t have a whole lot of faith in that). This is, however, not the same thing as evaluating the esprit of the game, as a work. And this is an area where things get a little fuzzy.

I’ve written before about the separation between an action which is highly addictive, and an action which is personally satisfying. These things are metabolically separate functions within humans. Unfortunately, they are often confused, and this is evidenced by a lack of clear distinction in this concept within the language (i.e. A game is simply “fun”). Case in point: N’Gai Croal chooses desktop tower defense in Slate’s Gaming Club game of the year.

Is obsession a valid selection criterion? I’d say so. It’s certainly one that I apply to other art forms. Whether I’m thinking about my favorite song, album, movie, TV show, novel, or play, I generally pick the one that I’ve responded to the strongest, the one that I can’t stop thinking about.

- N’Gai Croal

We don’t have accepted vocabulary that marks the difference between an experience that stays with you after you leave it because of the profound implications it has (For a film example, Memento) or because the experience was psychologically addictive (Spiderman 2). My point is, you can do both (The Matrix, the first one anyway).

Popularly, Jonathan Blow has seized upon this idea and seems to have emerged as the apologist for the concept. Unfortunately, I don’t feel many people seem to understand what he’s saying. In the same Slate Gaming Club article, Seth Schiesel talks about how Blow hates on Bioshock because it pretends to be an emergent Sandbox, when really it’s a constructed reality. I don’t really think that’s the point. While Blow does seem to prefer the Will Wright-esque emergent concepts that arise from atomic game rules, that’s only because of the satisfying experience it can provide. What he is essentially saying is that most games feed upon artificial scheduled rewards - the drug pathways, in my lingo - while very few provide a meaningful take-away.

What Blow is really asking is this: If we are going to make meaningful art, what is the mechanism that video games afford art that are not done through film, painting, poetry, or music? In his mind that mechanism is the structure of gameplay; the rules of the created world, and the exploration of those rules, should be the source of a certain profound satisfaction. I would call this a ludological art fundamentalist viewpoint. Certainly I can’t think of better contender for what the core of that experience would be, but I would take a more moderate viewpoint. Much as film is a unique medium from stage theatre, to say that the essence of the art in film is only in the cinematographer is disingenuous as well. Much of what makes a truly great film overlaps what makes a great play. So it is with video games.

Blow criticizes Bioshock for creating a non-authentic satisfaction. He argues that Bioshock’s marketing makes the claim that the game is about morality and choice, but this is not evidenced in the gameplay constructs (because your choice is irrelevant). I would say that Bioshock’s marketing as a game about choice is really quite brilliant. The game is not about choice, but rather the illusion of choice (Would you kindly agree with me). The fact that rescuing or saving the little sisters makes little difference in the stable state reinforces this concept, and it does it through gameplay.

Beyond that, I think the game is also a very powerful exploration of Objectivism, and one gets to literally explore the implications of that philosophy. Instead of through narrative and watching it occur, as one experiences in Atlas Shrugged and The Fountainhead, Bioshock literally allows you to explore the aftermath of an environment which had adopted that philosophy, through the use of audio diaries and your experiences with the characters in the game. Those are not strictly ludological concepts, but are borrowed from film, which is perhaps why Blow doesn’t account for them. That Bioshock is able to do this, and at the same time make it relatively straightforward to bypass if you’re interested solely in entertainment shows that this game is a shining star of entertainment and art fused together. No, it’s not perfect, but art rarely is.

I don’t think that many people have explored the dynamic of using the gameplay, devoid of artificial rewards, as this satisfying experience, and that may be why it’s difficult to discuss it. I also think that adopting only the use of gameplay would make a game far more sterile than it could otherwise be. There are parallels between film and video games, and while it is ultimately to our detriment to make games that are trying to be films, ignoring the lessons learned in that medium serves no purpose either.

That said, I think Blow has gone somewhat overboard (which would make sense, considering this fundamentalist position). People who are interested in meaningful, authentically satisfying material will seek it out, and if it’s not available in the medium of video games, it is available in other fashions. Most people are not interested in being enlightened, and seek only entertainment. Having the entire industry produce nothing but games designed to be fine art will only result in the abandonment of the medium, for that exact reason. How many of the novels sold every year are truly profound? How many pieces of cinema leave concepts that dance in your mind as you drift off to sleep?

Daniel Radosh may be hungry for real food, but the rest of the world is clamoring for whatever cheap drugs they can find. This is not new, nor is it a sign of the times. This behavior is endemic of our species, and frankly I suspect it is a requirement for a stable society that most people not be interested in that which is profound. Ultimately most people will continue to make that which is entertaining, and occasionally a visionary will create a profoundly meaningful game. Those games will appeal to a much smaller set of people, and typically have much smaller budgets (would Citizen Kane have been even better if it had a $200 million dollar budget?). That doesn’t mean that AAA titles should not continue to push the boundaries of what is possible to make in video games, to explore the possibility space of what can be done with games, but I don’t think we need to get really whipped up about whether or not our games are art.

On Console Commoditization

Denis Dyack is an interesting character. While you have to respect someone who’s that vocal and passionately committed to his craft, I do have to disagree with his point of view on a regular basis. Electronic Arts and Dyack have both been quoted in popular press advocating for a single console that all developers can target without having to port their code.

Gamasutra published a summary of a talk Dyack gave at GDC Lyon 2007 this morning where he stated that not only was it desirable, it was inevitable. I have some major problems with most of the points he brings up. He implies that all technology will inherently become commoditized in the long run, distinguishable only by brand, and cites automobiles, cameras, and cell phones as examples of this.

Here’s a fun experiment you should try at home. Go to your nearest auto shop, tell them your indicator lights are burnt out, and you need new ones. Surely if automobiles are commodities, and are standardized, you should be able to do this. Except you can’t, in fact it doesn’t even help if you tell them the manufacturer of the car in question. You need to know the manufacturer, model, and year of manufacture to be able to nail down something as simple as indicator lights. This is true for nearly every component in your car.

Try buying a new lens for your DSLR camera. If you walk into a camera store and say you want a new 120 mm lens, but you don’t know the manufacturer and mount of your camera, you’re going to get some strange looks.

The entire industry of companies who’s sole purpose is to wrap existing software in their Java-based framework, and port it to every cell-phone known to man. This is not trivial, they need to maintain databases of all cell-phones they support, and adjust display sizes, input mappings, color depth, etc. to support this supposedly ‘open framework’. If you ever wondered why cell-phone games are such shit, this is a major contributing factor.

Nevertheless, all of these industries do have certain standards. These standards exist because it is beneficial to all of the manufacturers of these devices that they are inter-operable with each other. This is why cameras will all save in JPEG format, cars all run on relatively similar gasoline, and cellphones all connect to networks using a very small scope of protocols. There are infrastructural costs that are prohibitive for manufacturers to independently build on their own, so it behooves them to adopt standards for individual benefit. The fact that this happens to benefit the public is incidental.

I would argue that there already exists an ‘open-platform’ for game development. It’s called Microsoft Windows, and it runs on a PC. Using DirectX, you don’t need to care specifically what hardware a user has, you just write it such that it can handle a certain spectrum you’re willing to tolerate. Dyack dismisses the PC as a standardized platform, I assume he means that all PCs do not have the same hardware, and thus are not standard. This seems to be at odds with his previous statements regarding the standardization of cars, digital cameras, and cell phones, as none of the above have the same hardware either.

He’s right about one thing though. In a one console future, the publishers, the developers would win big time. This is probably why you only hear about this kind of thing from developers like Dyack who are feeling the portability pain, and publishers like EA that have to pay for it. While consumers would theoretically win, I would argue that they largely don’t give a shit at the moment. Most people are not going to buy more than one console, and certainly not all three. Fortunately for them, most games are available on multiple consoles, so it doesn’t affect them (and Dyack argues that exclusive content is becoming more rare anyway, thus making this a moot point).

Unfortunately, the people who don’t win in this scenario are the manufacturers. Nintendo’s entire business strategy is built around differentiating their hardware in unique ways to spawn entire genres of games that only work on their systems. A one console world is not a good place for Nintendo to be in, and they will fold up shop before they agree to that deal. The ‘economic realities’ don’t snuff up against real innovation, and Nintendo has been taking innovation to the bank since the release of the Wii.

If you believe the reports on hardware pricing, Microsoft and Sony both lose money on hardware. The method by which they regain profits is then by issuing licensing fees against developers who want to make games for their console. Selling commodity consoles completely undermines this business model. Game by their very nature push the boundaries of what is possible with hardware, so unless studios stop being interesting in creating beautiful photo-realistic graphics, this medium is going to require some expensive hardware, and that means licensing costs.

Unlike in the car industry, the cell phone industry, and the camera industry, console manufacturers have nothing to gain by adopting an open standard against which all game will run, and certainly have no interest in becoming a commodity - trust me. Nokia doesn’t want to be a commodity either, it’s just an unfortunate artifact of adopting standards due to prohibitive capital costs of not doing so. The console industry does not suffer this problem, and thus I wouldn’t be advising Silicon Knights or Electronic Arts to be holding their breath for the arrival of the one true platform. I know it sucks gentlemen, but unless you have a way to force the market conditions in a different direction, I would suggest focusing on making great game experiences and leave the economic talk alone.

As a disclaimer, I was not at Lyon GDC 2007, and so I may be misinterpreting the reports of what Dyack actually said. If by some bizarre artifact Denis ends up reading this, I would encourage him or anyone else who was at the talk to set me straight.

A Tale of Three Worlds

It was announced earlier today that Activision is merging with Vivendi Games (the interactive entertainment division of Vivendi that includes Blizzard) to create what is now the largest console video game publisher - Activision Blizzard. Jean Bernard-Lévy, CEO of Activision was said to have stated: “Blah Blah Blah, Share-holder value, blah blah significant opportunities, blah blah Growth Prospects”.

Every gaming blog in the world responded with “OMFG… merger… what does this mean for WoW?”.

I’m going to put in my vote for “not really a whole lot”. As far as Blizzard is concerned, despite the fact that their name is now on the publisher as well, it’s really just a changing of the guard above. Blizzard has over and over again proven itself to be massively successful and profitable, and any new executive management would be foolish to screw with that.

This is interesting news, but shouldn’t be really suprising. As in the music and tv/movie industry, video game publishing is what’s referred to as an oligopoly - a market in which there are a relatively small number of firms who control the majority of the market. Oligopolies tend to emerge in areas where the costs and risk are extremely high, but barriers don’t exist due to ownership of capital assets (e.g. telephone, power distribution) or intellectual property (e.g. operating systems). When an industry meeting these characteristics begins, the market is very fragmented, and usually dominated by several start-ups who understand the particulars of that business. As the industry as a whole grows, more traditional investment companies will begin forming merges and buy-outs to conglomerate the small players into a larger, more financially stable whole. We have observed this happening in the music industry with record labels, and in the tv and movie industry with film studios.

Our industry is much younger, but already is dominated by six major publishers: Electronic Arts, Nintendo, Ubisoft, Take 2, Activision Blizzard, and THQ.

What I find interesting is that when you’re in an industry like these three, where the costs to distribute content are so high, and the risks of success equally so - management gets very risk adverse. They’re responsible for profit to shareholders, and they live in a very financial world. As a result, you begin to see trends towards blockbuster hit titles. This is the nature of action movies, highly paid brand name actors, top 40 pop music, sports games and high visual fidelity first-personal shooters. Publishers like these things because they’re safe, and any portfolio requires some safe bets to hedge the rest.

Which isn’t to say the people on the ground floor don’t put their heart and soul into these titles, it’s just that they’re primarily a business construct designed to appease the shareholers, and so creative control is somewhat removed.

Now, here’s the shakeup. What we’re watching unfold in the music industry right now is going to happen to film and is going to happen to tv and is going to happen to gaming. Once upon a time, production costs for music were extremely high, and the distribution channels even more so. Technology has completely eroded the first, and the internet the second, and now an oligopolistic industry is watching their barriers to entry come crashing down. A further kink in the puzzle is that music piracy is rampant, and there’s no real way to deal with that in a model based around selling individual units of content. Every single publisher in the music industry today needs to completely revamp their business model in order to compete, or be destroyed, plain and simple.

Piracy is also rampant in the film industry, although it hasn’t gotten quite as bad as the music industry. As bandwidth availability continues to rise, the film industry will be even more screwed than the music industry is now. The production costs for tv shows and movies haven’t dropped at all, and in fact, for those ultra-safe blockbuster titles, they’re increasing massively every year. The home theatre experience becomes more and more accessible and continues to equal if not surpass the cinema theatre experience in nearly every way. Today it is still possible to throw a quarter of a billion dollars at a blockbuster title and triple your money. That multiplier is shrinking on both sides every year. Television networks are also slowly sliding into irrelevance as it become possible to watch commercial free versions of all the content they deliver through digital delivery. This alternative becomes more popular every year.

Video games are a little further down the road than both of the previous. Production costs for video games are an order of magnitude lower than costs for film production. Additionally, pirating of console games is much harder than pirating music or film because it requires hardware modication of your system - a modification that could be detected by the manufacturer through online connectivity. On the PC side, piracy is a nightmare for traditional retail channels. Digital delivery mechanisms can aliviate this to a certain extent through the use of non-intrusive DRM (such as Steam). Attempts to shoehorn DRM into retail delivered copies of titles (using such abysmal tools as Stardock) has largely met with outrage.

The content sales model is not long-term viable. The internet enables piracy too easily, excessive measures to curtail it harm your legitimate customer experiences as well. Mergers like the one announced today are not exciting. It just means we’ve moved to the next chapter of the same old story. I’ll be excited when I see those top companies merging with companies who know how to change the business model. I want to see reductions in the cost of production, massively if possible. I want to see seamless end-to-end delivery models that enhance the customer’s experience, not detract from it. And I want to see people really innovating what you can do with the content, coming up with brand new genres of gameplay and game mechanics, and for publishers to see those as a necessary portion of a balanced title portfolio as well.

So when that merger happens, put it on the front page of Joystiq, and I’ll be reading.

Bungie Leaves Microsoft

I can’t believe the rumours were true.  I don’t know the full story behind the motivations and the details of the break-up, but it appears that Microsoft now owns a minority equity share in the new privately held company, Bungie LLC.  Microsoft retains rights to the Halo franchise, but Bungie is now free to do as they like.

Personally, I think this hurts Microsoft.  The teams that make your games are the best assets you can hold onto, and you can make much more money as a company when you’re the publisher, developer, and console manufacturer.  For all the talk, it would seem that Bungie felt that Microsoft was constraining their creative control over their products.  Just over a week after releasing the title that will put Microsoft’s Entertainment Division in the black for the first time, to announce the split is a bad image.  Still, it would looks like there’s not a lot of hard feelings, and the two companies will have a strong relationship in the future.  If the choice was between letting Bungie leave and maintaining a strong relationship or refusing and having your key players quit and start it anyway, losing that relationship, the former is obviously better.

So here’s to you Bungie, it was fun while it lasted, and hopes that you create in the future as many wonderful things as you had while you were here.

Note:  Everything said here is speculation, I don’t actually know anything. =)

Creative Commons Attribution 3.0 Unported
Creative Commons Attribution 3.0 Unported