On the future of digital gaming.
I'm gonna put this here so I can find it later. A comment triggered some thoughts of mine that I may want to refer to later on.
The context here is digital distribution and the ongoing grumblings about it, and specifically that "servers are expensive" reasoning we hear a lot.
I think it's about more than that, and so here it is:
Well, there are several kinds of servers. There are download host servers. Those are cheap ass, but for the authentication / DRM servers they need to connect to, but those can be used across many titles. (I would) Then there are media servers, images, forums and other goodies. Those can be scaled too. Finally, we get to player game hosting servers, which I suspect vary, depending on the game and what the developers did.
If those servers are too expensive to actually take any money out of the process, either double down and invest in them, and scale like lots of other people do --and need to do, in order to have them make sense, or consider that perhaps the servers are NOT the future of gaming.
The rules are the same for everybody in these things. Gaming is no different.
I've one other really ugly comment. (ugly, in that the implications of it are kind of brutal, not that I mean to be inflammatory)
Disruptive technology typically has a 5 to 10 x cost difference, while delivering a very significant fraction of the target market value. This is a known, establish fact that can be researched and validated. I'll leave that to the reader.
All technologies we've seen so far have seen their futures come in terms of a disruptive competetor, which typically gets disruptive for some core innovation that takes cost out of what is otherwise a cost heavy exercise.
That's the future of gaming folks, and don't let anybody tell you any different. It will happen to gaming as it did for every other thing, and it's how we work as people, and what our core economies are that drive those things.
DRM actually can serve to bring this on, or can serve to artificially keep it at bay, which is my PRIMARY objection to supporting it in any way. Has nothing to do with piracy. I buy the stuff I can buy, and find other things to do when I can't, just because doing anything else isn't worth it, beyond learning some core skills that can come in handy.
(and we've all done that, and I'll tell you some of what I learned cracking stuff because I could, pays very, very well today, and it's straight up legal.)
What this means, is for digital distribution to be considered viable, and something that actually disrupts media and our traditional game forms, is those games will be $10 or under. Fact.
Whoever does this will be king, and the only discussion right now is who actually has the balls to do it first.
In every technology niche I've seen this occur, the ones out of the gate that understand the rules, who make the investments, who do the marketing, win, and the others recede into higher-end, specialty niches, getting slowly picked at, until they are gone, merged, or themselves innovate their way out of the thing.
That's what is coming. The reason people are not really grooving on the current state of things is because the value proposition is being artifically held high, so the revenue numbers look good, and DRM / Piracy is cited as the reason they are not blowing the old school way out of the water.
The fact is, we only have so much entertainment money. This is true for nearly all people. The various entertainment forms must compete with each other, and the average persons other life priorities, like basic needs and other luxury wants.
Because of that, incremental changes do not bring watershed changes in revenue to the table. Never have, never, ever will. This is why the disruptive technology equation works the way it does. When the value offering is similar to, even on par with existing ones, and the price is 5 to 10x lower, people are compelled to give it a try, because that price difference opens up a lot of options for them.
They could simply consume what they do now for less. They could consume a hell of a lot more. They could begin to consume without infringing on basic needs, etc...
Whoever does this for games, will consume a lot of share, instantly shrinking the market, and very likely consuming some other share, like movies or music, which basically are there anyway, if one wants to go looking.
That's where the future of games is headed with digital distribution. At those prices, nobody will give two shits about whether or not they can trade, because at that price, it's just an experience, and likely worth it. Also, at that price, being able to manage the back-catalog becomes seriously important, just like it is for movies and music, where the long tail of available choices helps to capture as many of the demand dollars as possible.
You read it here first.
Game on kids!
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