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On the future of digital gaming.


potatohead

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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!

7 Comments


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I think there will always be a market for traditional solitaire and 2 player games (i.e 2 player, not multiplayer)

 

It will probably follow the same market as per the various emulation/roms sites (i.e, you will have lots of sites where you will be able to download non hacked/cracked modern games and well as classic games) using the itunes concept (i.e paid for downloads)

 

Also, there will also be a market for non online (offline) distribultion of gaming content (i.e actual physical product you hold in your hands, not just some file or group of files held on a hard disk)

 

The success of online distribultion of games largely depends whether the game has longetivity and is interesting enough to play, unfortunately online gaming seems to be having the same issues as per traditional boxed product, namely that developers/publishers are shovelling out just another variant of this game/genre or that game/genre and that isn't so interesting for consumers

 

 

The other issue with must online games is that they rely on too much cut scenes/fmv/movies to fill game content, i.e you seem to be immersed more into the inbuilt movie/streaming video then you actually get to play anything of the game (sort of reminds me of those asian/japanese RPG's for the GBA, namely that your subjected to about 30 minutes of game intro (if you can understand the japanese/chinese text) before you are actually allowed to partake in the game (anywhere from 5 seconds to two minutes) and then the process repeats itself)

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It could be argued that many downloadable games have already hit the $5-$10 price point. The real question is whether the price of AAA games, in a downloadable/online format, will also follow this trend. I don't think so unless developers & publishers find ways to dramatically reduce the costs to create & market (not just distribute) a game. The question then becomes whether high cost AAA games can continue to exist in a world of cheaper games.

 

And, on a personal note, my limiting resource is not money but time. I could easily buy another game with my discretionary spending. But I don't because I don't have the discretionary time to play it.

 

There are also numerous ways people can play games at very low costs (emulation/homebrew, "free-to-play", older used games) that cost isn't a factor if you set your expectations properly.

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Heh, I just realized I have a second limiting resource: the big screen TV. Guess who wins between me playing a game and my wife watching Brothers and Sisters?

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Yeah, I'm constrained in much the same ways.

 

Time is always at issue. Sometimes I can ignore the TV, depending on what gaming I'm gonna do.

 

Good comment on whether or not big production games will survive. I personally think they will, may remain on media, and will be fewer in number.

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One interesting datapoint: Kingdom Hearts: Birth by Sleep by Square Enix for the PSP will not be available for download on the PSP Go. (I don't know the logic.)

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That's a interesting one. On one hand, the more you show, the more you sell. Seems short sighted to not have the download as an option.

 

Then again, perhaps there is some exclusivity, or manufactured scarcity, or even elitism in play, all of which might add to the longer term value proposition Square may be cultivating.

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The only logic I can see is somehow the cost (to Square Enix) to offer the download option is higher than their sales estimates. In particular, I believe that Sony doesn't provide the server infrastructure for online games and this may extend to PSPGo downloads too. I don't think the testing would cost much more, given once the game is downloaded the game should play the same. (Unless Square Enix was doing some UMD-only I/O which didn't have a drop-in PSPGo equivalent.)

 

There also may be piracy concerns, although I'm not sure whether UMD is any more secure.

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