Over the last few years, competitive gaming has made huge strides, building a massive fanbase, supporting the rise of entire genres of games and attracting vast prize pots for the discipline’s very best. Almost across the board, the phenomenon has also seen its revenues gaining, as new sponsors come on board, including some major household names. Sustaining the rapidity of the growth of eSports is going to be key to its long term success, maintaining momentum and pushing it ever further into the public consciousness.
In order to do that, according to Newzoo, eSports need to learn some lessons from their more traditional athletic counterparts. Right now, the research firm puts a pin in eSports revenues of $2.40 per enthusiast per year, a number which is expected to bring the total revenue for the industry to $275 million for 2015 – a 43 per cent increase on last year. By 2018, the firm expects that per user number to almost double, reaching $4.63.
That’s a decent number, representing very rapid growth, but it pales in comparison to Newzoo’s estimates on the average earning per fan for a sport like Basketball, which represents a $14 per fan revenue – rising to $19 where only the major league NBA is a factor. To catch up to numbers like this is going to take some time, but Newzoo’s research has listed five factors it considers vital to achieving that aim.
Right now, MOBAs are undeniably the king of the eSports scene, and one of the biggest genres in gaming. The king of MOBAs, League of Legends, is the highest earning game in the world, whilst others like Valve’s DOTA 2 are also represent huge audiences and revenues, including the prestigious annual International tournament. Shooters are also still big business here, with Activision Blizzard recently announcing the formation of a new Call of Duty League.
Nonetheless, MOBAs are still the mainstay and if you don’t like them, you’re not going to get too deeply into competitive gaming as a fan. Although their popularity with the athletes is going to make them a difficult genre to shift, Newzoo says that broadening the slate is a key factor to growth.
The major tournaments bring players, and audiences, from all over the world, but it’s often only the very top tier of players who can find themselves a foothold in regular competition. Major territories like the US, South Korea and Europe have some local structure, but again League of Legends stands almost alone in its provision of local infrastructure. By expanding a network of regular leagues and competitions to more countries, eSports stands a much better chance of building a grassroots movement and capturing more fans.
Already a problem very much on the radar of official bodies and players around the world, the introduction of regulation is always a tough transition for any industry. However, when you’re putting up millions of dollars in prize money, you can’t have any grey areas around doping, match fixing and player behaviour at events. These young players are frequently thrust into a very rapid acceleration of lifestyle, fame and responsibility – a heady mixture which can prove to be a damaging influence on many. Just like in other sports, stars need protecting and nurturing – and the competitions careful monitoring – in order for growth to occur without scandal and harm to its stars.
Dishing out the rights to broadcast, promote and profit from eSports is a complex issue. Whilst games like football are worldwide concerns, with media rights a hotly contested and constantly shifting field, nobody owns the games themselves. With eSports, every single aspect of the games being played is a trademark in itself, with its owners understandably keen to protect them. However, with fan promotion such a key part of the sport’s growth, and services like Twitch a massive factor in organic promotion, governing the rights of distribution is only going to become a murkier and more complex business as time goes on. With major TV networks, well used to exclusivity, now starting to show an interest, expect this to become a hot topic.
Conflict between new and old media
That clash of worlds, between the fresh and agile formats of digital user-sourced broadcasting and the old network model is also going to be source of many of its own problems. One or the other, or even both, is going to have to adapt fast for there to be a convivial agreement which betters the industry as a whole. There’s currently considerable pushback from established media against the idea of eSports becoming accepted as a mainstream activity, fuelled in no small part by their audiences themselves, so a lo of attitudes need to change. Add to that the links between these media giants and many of the world’s richest advertisers and you can start to see the problem.
If Hideo Kojima really is on the outs at Konami, he’s at least going out with a bang. The embargo for Metal Gear Solid V: The Phantom Pain coverage hit last night, and the first batch of reviews are glowing.
IGN’s Vince Ingenito gave the game a 10 out of 10, lavishing praise on the way it adapted the series’ stealth-action formula to an open-world environment.
“Right from the moment you’re told to get on your horse and explore the Afghan countryside, Phantom Pain feels intimidating, almost overwhelming in terms of the freedom its open world affords and the number of concepts it expects you to grasp,” Ingenito said. “It’s almost too much, especially given the relative linearity of previous Metal Gears. But what initially appeared to be an overly dense tangle of features to fiddle with instead unraveled into a well-integrated set of meaningful gameplay systems that provided me with a wealth of interesting decisions to make.”
Whether players choose to sneak their way to victory or go in guns blazing, The Phantom Pain affords them a number of avenues to do so. The game’s day/night cycle and changing weather systems can make certain strategies viable (or not) at any given time. At the same time, a private army management meta-game lets players raid battlefields for resources and new recruits, which can then be put to use researching new technologies or using their skills to open up a variety of other strategic alternatives.
However, a perfect score doesn’t mean a perfect game, and Ingenito does identify at least one weak point in the game.
It’s a somewhat surprising criticism of the game, given Metal Gear Solid 4′s penchant for frequent and extended cutscenes larding the action with exposition and plot twists. While The Phantom Pain shows flashes of that approach (Ingenito noted the “spectacular” opening sequence), it ultimately produces a narrative he found “rushed and unsatisfying.”
Obviously, that failing was not enough to tarnish an otherwise fantastic game in Ingenito’s eyes.
“There have certainly been sandbox action games that have given me a bigger world to roam, or more little icons to chase on my minimap, but none have pushed me to plan, adapt, and improvise the way this one does,” he said. “Metal Gear Solid 5: The Phantom Pain doesn’t just respect my intelligence as a player, it expects it of me, putting it in a league that few others occupy.”
GameSpot’s Peter Brown likewise gave the game a 10 and praised its adaptable approach to missions, but enjoyed the story considerably more than his counterpart at IGN.
“After dozens of hours sneaking in the dirt, choking out enemies in silence, and bantering with madmen who wish to cleanse the world, The Phantom Pain delivers an impactful finale befitting the journey that preceded it,” Brown said. “It punches you in the gut and tears open your heart. The high-caliber cutscenes, filled with breathtaking shots and rousing speeches, tease you along the way. Your fight in the vast, beautiful, and dangerous open world gives you a sense of purpose. The story is dished out in morsels, so you’ll have to work for the full meal, but it’s hard to call it ‘work’ when controlling Big Boss feels so good, with so many possibilities at your fingertips.”
Brown said prior knowledge of the series isn’t a prerequisite to enjoying The Phantom Pain, but added that “Fans of the series will find their diligence rewarded in ways that newcomers can’t begin to imagine.” They’ll also, in his estimation, be enjoying the pinnacle of the franchise.
“There has never been a game in the series with such depth to its gameplay, or so much volume in content,” Brown said. “The best elements from the past games are here, and the new open-world gameplay adds more to love on top. When it comes to storytelling, there has never been a Metal Gear game that’s so consistent in tone, daring in subject matter, and so captivating in presentation. The Phantom Pain may be a contender for one of the best action games ever made, but is undoubtedly the best Metal Gear game there is.”
Eurogamer hasn’t published its full review yet, but Matt Wales weighed in with his impressions to date. Like Brown and Ingenito, Wales underscored the narrative approach as a major departure for the series.
“Beyond an outlandish, action-packed opening sequence… The Phantom Pain is a remarkably economical affair, telling its tale of ’80s cold war subterfuge through snatches of radio dialogue (courtesy of Ocelot), and the occasional return to Mother Base between missions,” Wales said. “It’s fascinating to see such restraint from Kojima, a man well known for his self-indulgence and excess, especially considering that The Phantom Pain is likely his Metal Gear swan song.”
On the gameplay side, Wales said The Phantom Pain “isn’t exactly a radical reinvention of the stealth genre,” but acknowledged the increased freedom players are given to accomplish the familiar assortment of objectives.
“Metal Gear Solid 5′s open world might not be vast, varied or stuffed full of things to do, but it’s a place of constant movement,” Wales said. “Night falls, day breaks, sandstorms sweep in, patrols come and go – and this organic sense of life means that missions are never predictable (no matter how often you play them) with tactical possibilities arising all the time. It’s a game of planning and reacting in a world that refuses to stand still, making every minute matter and every success feel earned.”
“The gameplay, storytelling, and protagonists in Metal Gear may shift with each new installment, but Kojima’s ability to surprise and enthrall gamers remains unchanged.”
He also applauded the way The Phantom Pain managed to adopt an open-world design without the genre’s standard glut of padding.
“[E]verything you do feels meaningful and consequential,” Wales said. “Guard posts and roaming patrols aren’t simply there for colour as you traverse the world: one careless move into hostile territory and every single enemy on the map will know you’re coming, with more search parties and increased security radically altering the way a mission unfolds. And while other games tout choice and consequence as a headline feature, the Phantom Pain just gets on with it. Even the smallest action can have unexpected consequences – some significant and others barely perceptible.”
Game Informer’s Joe Juba gave the game a 9.25, currently one of the lowest scores the game has received on Metacritic (where it has a 95 average based on 15 critic reviews). Like some of the above reviewers, Juba was a bit disappointed at The Phantom Pain’s approach to storytelling, but noted that having the narrative take a step in to the background puts the focus on the game’s strongest point, its open-ended gameplay.
“A series can’t survive this long without evolving, and The Phantom Pain is a testament to the importance of taking risks,” Juba said. “An open world, a customizable base, a variable mission structure – these are not traditional aspects of Metal Gear, but they are what makes The Phantom Pain such an exceptional game. The gameplay, storytelling, and protagonists in Metal Gear may shift with each new installment, but Kojima’s ability to surprise and enthrall gamers remains unchanged.”
The PlayStation business has had another phenomenal quarter in the first four months of 2015, selling three million PS4 units and turning in an operating income of $160 million from revenues of $2.365 billion. There are now 25.3 million PlayStation 4 units in the hands of players worldwide – a number achieved in less than two full years.
The console continues to be the company’s fastest seller – outpacing the PS2, which took two years and eight months to reach the 20 million mark. Furthermore, thanks to dropping production costs for PS4 hardware, a 12 per cent increase in sales from the same quarter last year translated to a massive 350 per cent rise in operating income.
A strengthening dollar again hurt Sony’s bottom line, having an estimated impact of 15.6 billion Yen on the revenue total of 288.6 billion Yen, but this was massively outweighed by the increase in sales and the efficiency gains of Sony’s operation. On the strength of the results, Sony has added another 20 billion Yen in operating income to the sector’s full year forecast.
The sales rate of PS4 shows a healthily steady growth in player base, returning to a gradual upswing after a huge blip in Q3, 2014. Sony has upgraded it full year forecast from 16 million units to 16.5 as a result – a figure which would show a substantial increase on 2014′s 14.8 million total. By Sony’s own reckoning, the end of Q1 2016 will see nigh on 40 million of the consoles in homes. Vita sales once again went unmentioned in the report, whilst the gradual decline of PS3 continued.
Hardware wasn’t the only success story. Network, (“Network includes network services relating to game, video, and music content provided by Sony Network Entertainment Inc.”) mad almost as much in revenues, netting around 105.8 billion Yen compared to Hardware’s 129.5 billion. The Other category (Other includes packaged software and peripheral devices) brought in 30.6 billion.
Overall, the corporation turned a healthy profit, banking $676 million in net from sales of nearly $15 billion. Whilst the PlayStation business is very healthy indeed, it’s far from Sony’s only, or even biggest, success story: Devices, Imaging, Financial Services and Music all continue to return a higher operating income.
It is possible that one day we will report on which companies made it through the night without being hacked or without exposing their users.
For now, though, the opposite is the norm and today we are reporting about a problem with gaming system Steam that, you guessed it, has dangled the personal details of punters within the reach of ne’er-do-wells.
The news is not coming out of Steam, or parent Valve, directly, but it is running rampant across social networks and the gaming community. The problem, according to reports and videos, was a bad one and made the overtaking of user accounts rather a simple job.
No badass end-of-level boss to beat here, just a stage in the authentication process. A video posted online demonstrates the efforts required, while some reports – with access to Steam’s PR hot air machine – say that the problem is fixed.
A statement released to gaming almanac Kotaku finds the firm in apologetic clean-up mode.
Steam told the paper that some users would have their passwords reset, those being the ones who might have seen their log-in changed under suspicious circumstances, and that in general users should already be protected from the risks at hand.
“To protect users, we are resetting passwords on accounts with suspicious password changes during that period or may have otherwise been affected,” the firm said.
“Relevant users will receive an email with a new password. Once that email is received, it is recommended that users log-in to their account via the Steam client and set a new password.
“Please note that, while an account password was potentially modified during this period, the password itself was not revealed. Also, if Steam Guard was enabled, the account was protected from unauthorized log-ins even if the password was modified.”
The firm added its apologies to the community.
Last week it was reported how Geeknet Inc. was in the process of being bought out by retailer Hot Topic for $16 a share or $37 million in cash.
However we have just discovered that deal was squashed because Thinkgeek got a better deal from Gamestop.
GameStop offered $20 per share and Hot Topic wanted away. GameStop’s $20 per share deal also includes $37 million in cash and comes out to a total valuation of $140 million.
Geeknet must pay Hot Topic a three percent “break-up fee,” which GameStop has agreed to reimburse.
What this will mean is that ThinkGeek customers can pick up ThinkGeek merchandise in GameStop stores.
The press release also mentions the potential of offering GameStop PowerUp Rewards members “exclusive, unique and cutting edge merchandise related to their favorite entertainment.”
The deal should be concluded by the end of GameStop’s second financial quarter of 2015, which will happen in August.
At Sony’s 2015 Investor Relations Day today, Sony Computer Entertainment president and global CEO Andrew House detailed the company’s strategy for the coming year, including how it will address some shortcomings.
House began his presentation on a positive note, talking up PlayStation 4 as “the fastest selling hardware platform in our history,” showing better-than expected growth and pushing PlayStation Plus subscriptions to twice what they were in fiscal year 2013. He said the company has a competitive advantage for the moment, and laid out three ways it hopes to maintain that. In addition to next year’s launch of the Project Morpheus virtual reality headset and continued cost reduction efforts, House said the company needs quality software.
“We are working very hard to continue very strong support from third-party pubs and devs,” House said. “Our first-party lineup is a little sparse this year, so I think this places even greater emphasis on getting good third-party support.”
That doesn’t necessarily mean exclusive third-party support. To date, House said Sony has been primarily trying to get multiplatform developers to simply take advantage of features the PS4 has over the competition, like SharePlay, or maybe include extra content in the PS4 version or give players early access to add-on content. Third-party exclusives are still an option, just not a frequently used one.
“I will admit that these are, in the current publishing landscape, few and far between, but we were able to announce a full exclusive around a franchise like Street Fighter so that Street Fighter 5 is a complete exclusive for PlayStation 4,” House said, adding, “Although given publishing dynamics and development costs, those are increasingly difficult to secure.”
House also talked about the decline in Sony’s other platforms. As much as the PS4′s growth has exceeded expectations, so too has the PlayStation 3′s decline. House said the system’s price simply isn’t as competitive in the market as the PlayStation 2 and PSone were after their successors launched, and added that the shift toward more connected console experiences has also made less capable offerings less attractive.
House also cast a dim view of the company’s handheld business. While he noted that the Vita platform remains “strong and vibrant” in Asia and Japan, his outlook for the current fiscal year included declines in the US and Europe. Additionally, he referred to the PlayStation Vita and its microconsole counterpart the PlayStation TV as “legacy platforms” when discussing a write-off of hardware components for the two.
“I would characterize 2015 as the beginning of a harvest period for the PlayStation 4 platform,” House said. “The beginning of a harvest period. That being said, we are also undertaking to invest in the future, and 2015 will also be a year of investment.”
That investment will be focused on a few areas. There’s the Morpheus, of course, as well as continued spend on original PlayStation entertainment content like the TV show Powers (which was recently greenlit for a second season). On top of that, House said Sony would be investing in the expansion of its PlayStation Vue television streaming platform and a continued re-architecture of its PlayStation Network with an eye toward increasing stability and reducing maintenance downtime.
Hackers from Brazil have managed to discover a new exploit for the PS4 which enables them to bypass the DRM on any software and games.
A couple of weeks ago, a number of electronic stores in Brazil had been advertising the means to copy and run a series of ripped retail games on the console.
At the time little was known about the hack back then, but information gradually began to trickle out from customers and make its way around the web. Please see below for commentary from Lancope.
Gavin Reid, VP of threat intelligence, Lancope said that Sony was playing an arms race against groups that benefit from the abilities to copy and share games.
The hack originates from a Russian website and has been pushed into the public by Brasilian retailers. The hack isn’t necessarily a jailbreak for the PS4, nor is it really a homebrew technique.
What they did was use a retail PS4, with several games installed on it, with it’s entire game database and operating system (including NAN/BIOS). This was then dumped onto a hacked PS4 via Raspberry Pi.
The entire process costs about $100 to $150 to install 10 games and $15 per additional game.
“Open source groups like Homebrew with more altruistic motivations of extending the functionality of the console alongside groups selling modified consoles specifically to play copied games and of course the resell of the games themselves at fraction of the actuals costs. This has happened historically with all of the major consoles. It would be highly unlikely not to continue with the PS4,” he said.
There’s not a lot to argue with the consensus view that Valve had the biggest and most exciting announcement of GDC this year, in the form of the Vive VR headset it’s producing with hardware partner HTC. It may not be the ultimate “winner” of the battle between VR technologies, but it’s done more than most to push the whole field forwards – and it clearly sparked the imaginations of both developers and media in San Francisco earlier this month. Few of those who attended GDC seem particularly keen to talk about anything other than Vive.
From Valve’s perspective, that might be just as well – the incredibly strong buzz around Vive meant that it eclipsed Valve’s other hardware-related announcement at GDC, the unveiling of new details of the Steam Machines initiative. Ordinarily, it might be an annoying (albeit very high-quality) problem to have one of your announcements completely dampen enthusiasm for the other; in this instance, it’s probably welcome, because what trickled out of GDC regarding Steam Machines is making this look like a very stunted, unloved and disappointing project indeed.
To recap briefly; Steam Machines is Valve’s attempt to create a range of attractive, small-form-factor PC hardware from top manufacturers carrying Valve’s seal of approval (hence being called “Steam Machines” and quite distinctly not “PCs”), running Valve’s own gaming-friendly flavour of the Linux OS, set up to connect to your living room TV and controlled with Valve’s custom joypad device. From a consumer standpoint, they’re Steam consoles; a way to access the enormous library of Steam content (at least the Linux-friendly parts of it) through a device that’s easy to buy, set up and control, and designed from the ground up for the living room.
That’s a really great idea, but one which requires careful execution. Most of all, if it’s going to work, it needs a fairly careful degree of control; Valve isn’t building the machines itself, but since it’s putting its seal of approval on them (allowing them to use the Steam trademark and promoting them through the Steam service), it ought to have the power to enforce various standards related to specification and performance, ensuring that buyers of Steam Machines get a clear, simple, transparent way to understand the calibre of machine they’re purchasing and the gaming performance they can expect as a result.
Since the announcement of the Steam Machines initiative, various ways of implementing this have been imagined; perhaps a numeric score assigned to each Machine allowing buyers to easily understand the price to performance ratio on offer? Perhaps a few distinct “levels” of Steam Machine, with some wiggle room for manufacturers to distinguish themselves, but essentially giving buyers a “Good – Better – Best” set of options that can be followed easily? Any such rating system could be tied in to the Steam store itself, so you could easily cross-reference and find out which system is most appropriate for the kind of games you actually want to play.
In the final analysis, it would appear that Valve’s decision on the myriad possibilities available to it in this regard is the worst possible cop-out, from a consumer standpoint; the company’s decided to do absolutely none of them. The Steam Machines page launched on the Steam website during GDC lists 15 manufacturers building the boxes; many of those manufacturers are offering three models or more at different price and performance levels. There is absolutely no way to compare or even understand performance across the different Steam Machines on offer, short of cross-referencing the graphics cards, processors, memory types and capacities and drive types and capacities used in each one – and if you’ve got the up-to-date technical knowledge to accurately balance those specifications across a few dozen different machines and figure out which one is the best, then you’re quite blatantly going to be the sort of person who saves money by buying the components separately and wouldn’t buy a Steam Machine in a lifetime.
“Valve seems to have copped out entirely from the idea of using its new systems to make the process of buying a gaming PC easier or more welcoming for consumers”
In short, unless there’s a pretty big rabbit that’s going to be pulled out of a hat between now and the launch of the first Steam Machines in the autumn, Valve seems to have copped out entirely from the idea of using its new systems to make the process of buying a gaming PC easier or more welcoming for consumers – and in the process, appears to have removed pretty much the entire raison d’etre of Steam Machines. The opportunity for the PC market to be grown significantly by becoming more “console-like” isn’t to do with shoving PC components into smaller boxes; that’s been happening for years, occasionally with pretty impressive results. Nor is it necessarily about reducing the price, which has also been happening for some years (and which was never going to happen with Steam Machines anyway, as Valve is of no mind to step in and become a loss-leading platform holder).
Rather, it’s about lowering the bar to entry, which remains dizzyingly high for PC gaming – not financially, but in knowledge terms. A combination of relatively high-end technical knowledge and of deliberate and cynical marketing-led obfuscation of technical terminology and product numbering has meant that the actual process of figuring out what you need to buy in order to play the games you want at a degree of quality that’s acceptable is no mean feat for an outsider wanting to engage (or re-engage) with PC games; it’s in this area, the simplicity and confidence of buying a system that you know will play all the games marketed for it, that consoles have an enormous advantage over the daunting task of becoming a PC gamer.
Lacking any guarantee of performance or simple way of understanding what sort of system you’re buying, the Steam Machines as they stand don’t do anything to make that process easier. Personally, I ought to be slap bang in the middle of the market for a Steam Machine; I’m a lapsed PC gamer with a decent disposable income who is really keen to engage with some of the games coming out in the coming year (especially some of the Kickstarted titles which hark back to RPGs I used to absolutely adore), but I’m totally out of touch with what the various specifications and numbers mean. A Steam Machine that I could buy with the confidence that it would play the games I want at decent quality would be a really easy purchase to justify; yet after an hour flicking over and back between the Steam Machines page launched during GDC and various tech websites (most of which assume a baseline of knowledge which, in my case, is a good seven or eight years out of date), I am no closer to understanding which machine I would need or what kind of price point is likely to be right for me. Balls to it; browser window full of tabs looking at tech spec mumbo-jumbo closed, PS4 booted up. Sale lost.
This would be merely a disappointment – a missed opportunity to lower the fence and let a lot more people enjoy PC gaming – were it not for the extra frisson of difficulty posed by none other than Valve’s more successful GDC announcement, the Vive VR headset. You see, one of the things that’s coming across really clearly from all the VR technology arriving on the market is that frame-rate – silky-smooth frame-rate, at least 60FPS and preferably more if the tech can manage it – is utterly vital to the VR experience, making the difference between a nauseating, headache-inducing mess and a Holodeck wet dream. Suddenly, the question of PC specifications has become even more important than before, because PCs incapable of delivering content of sufficient quality simply won’t work for VR. One of the appealing things about a Steam Machine ought to be the guarantee that I’ll be able to plug in a Vive headset and enjoy Valve’s VR, if not this year then at some point down the line; yet lacking any kind of certification that says “yes, this machine is going to be A-OK for VR experiences for now”, the risk of an expensive screw-up in the choice of machine to buy seems greater than ever before.
I may be giving Steam Machines a hard time unfairly; it may be that Valve is actually going to slap the manufacturers into line and impose a clear, transparent way of measuring and certifying performance on the devices, giving consumers confidence in their purchases and lowering the bar to entry to PC gaming. I hope so; this is something that only Valve is in a position to accomplish and that is more important than ever with VR on the horizon and approaching fast. The lack of any such system in the details announced thus far is bitterly disappointing, though. Without it, Steam Machines are nothing more than a handful of small form-factor PCs running a slightly off-kilter OS; of no interest to hobbyists, inaccessible to anyone else, and completely lacking a compelling reason to exist.
Valve has developed its own Intel Vulkan GPU graphics driver for Linux that they intend to open-source.
The Vulkan API is still being argued about and will not be finalized until later this year, but Valve has been developing their own Intel GPU reference driver for Vulkan to help early adopter’s boot-strap their code.
During their presentation at GDC2015 Valve announced that its Intel Linux driver will be open-sourced, but they haven’t provided a time-frame for doing so.
Valve also confirmed that the Source 2 Engine supports the alpha Vulkan API today and that Vulkan will be supported across the board on Steam Machines.
Intel graphics hardware might not be the sexiest, but there is a lot of it out there. It is also easy to target for an open-source driver given Intel’s extensive hardware specifications / programming documentation.
A Vulkan Intel Linux graphics driver used by game developers sounds very promising for having good support for this new API and most likely high-performance was a priority in the development of this driver by Valve and likely their partners at LunarG.
Over the last few years, the industry has seen budget polarization on an enormous scale. The cost of AAA development has ballooned, and continues to do so, pricing out all but the biggest warchests, while the indie and mobile explosions are rapidly approaching the point of inevitable over-saturation and consequential contraction. Stories about the plight of mid-tier studios are ten-a-penny, with the gravestones of some notable players lining the way.
For a company like Ninja Theory, in many ways the archetypal mid-tier developer, survival has been a paramount concern. Pumping out great games (Ninja Theory has a collective Metacritic average of 75) isn’t always enough. Revitalizing a popular IP like DMC isn’t always enough. Working on lucrative and successful external IP like Disney Infinity isn’t always enough. When the fence between indie and blockbuster gets thinner and thinner, it becomes ever harder to balance upon.
Last year, Ninja Theory took one more shot at the upper echelons. For months the studio had worked on a big budget concept which would sit comfortably alongside the top-level, cross-platform releases of the age: a massive, multiplayer sci-fi title that would take thousands of combined, collaborative hours to exhaust. Procedurally generated missions and an extensive DLC structure would ensure longevity and engagement. Concept art and pre-vis trailers in place, the team went looking for funding. Razor was on its way.
Except the game never quite made it. Funding failed to materialize, and no publisher would take the project on. It didn’t help that the search for a publishing deal arrived almost simultaneously with the public announcement of Destiny. Facing an impossible task, the team abandoned the project and moved on with other ideas. Razor joined a surprisingly large pile of games that never make it past the concept stage.
Sadly, it’s not a new story. In fact, at the time, it wasn’t even a news story. But this time Ninja Theory’s reaction was different. This was a learning experience, and learning experiences should be shared. Team lead and co-founder Tameem Antoniades turned the disappointment not just into a lesson, but a new company ethos: involve your audience at an early stage, retain control, fund yourself, aim high, and don’t compromise. The concept of the Independent AAA Proposition, enshrined in a GDC presentation give by Antoniades, was born.
Now the team has a new flagship prospect, cemented in this fresh foundation. In keeping with the theme of open development and transparency, Hellblade is being created with the doors to its development held wide open, with community and industry alike invited to bear witness to the minutiae of the process. Hellblade will be a cross-platform game with all of the ambition for which Ninja Theory is known, and yet it is coming from an entirely independent standpoint. Self-published and self-governed, Hellblade is the blueprint for Ninja Theory’s future.
“We found ourselves as being one of those studios that’s in the ‘squeezed middle’,” project lead Dominic Matthews says. “We’re about 100 people, so we kind of fall into that space where we could try to really diversify and work on loads of smaller projects, but indie studios really have an advantage over us, because they can do things with far lower overheads. We have been faced with this choice of, do we go really, really big with our games and become the studio that is 300 people or even higher than that, and try to tick all of these boxes that the blockbuster AAA games need now.
“We don’t really want to do that. We tried to do that. When we pitched Razor, which we pitched to big studios, that ultimately didn’t go anywhere. That was going to be a huge game; a huge game with a service that would go on for years and would be a huge, multiplayer experience. Although I’m sure it would have been really cool to make that, it kind of showed to us that we’re not right to try to make those kinds of games. Games like Enslaved – trying to get a game like that signed now would be impossible. The way that it was signed, there would be too much pressure for it to be…to have the whole feature set that justifies a $60 price-tag.
“That $60 price-tag means games have to add multiplayer, and 40 hours of gameplay minimum, and a set of characters that appeal to as many people as they possibly can. There’s nothing wrong with games that do that. There’s some fantastic games that do, AAA games. Though we do think that there’s another space that sits in-between. I think a lot of indie games are super, super creative, but they can be heavily stylised. They work within the context of the resources that people have.
“We want to create a game that’s like Enslaved, or like DMC, or like Heavenly Sword. That kind of third-person, really high quality action game, but make it work in an independent model.”
Cutting out the middle-man is a key part of the strategy. But if dealing with the multinational machinery of ‘big pubs’ is what drove Ninja Theory to make such widespread changes, there must surly have been some particularly heinous deals that pushed it over the edge?
“I think it’s just a reality of the way that those publisher/developer deals work,” Matthews says. “In order for a publisher to take a gamble on your game and on your idea, you have to give up a lot. That includes the IP rights. It’s just the realities of how things work in that space. For us, I think any developer would say the same thing, being able to retain your IP is a really important thing. So far, we haven’t been out to do that.
“With Hellblade, it’s really nice that we can be comfortable in the fact that we’re not trying to appeal to everyone. We’re not trying to hit unrealistic forecasts. Ultimately, I think a lot of games have unrealistic forecasts. Everyone knows that they’re unrealistic, but they have to have these unrealistic forecasts to justify the investment that’s going into development.
“Ultimately, a lot of games, on paper, fail because they don’t hit those forecasts. Then the studios and the people that made those games, they don’t get the chance to make any more. It’s an incredibly tough market. Yes, we’ve enjoyed working with our publishers, but that’s not to say that the agreements that developed are all ideal, because they’re not. The catalyst to us now being able to do this is really difficult distribution. We can break away from that retail $60 model, where every single game has to be priced that way, regardless of what it is.
Driven into funding only games that will comfortably shift five or six million units, Matthews believes that publishers have no choice but to stick to the safe bets, a path that eventually winnows down diversity to the point of stagnation, where only a few successful genres ever end up getting made: FPS, sports, RPG, maybe racing. Those genres become less and less distinct, while simultaneously shoe-horning in mechanics that prove popular elsewhere and shunning true innovation.
While perhaps briefly sustainable, Matthews sees that as a creative cul-de-sac. Customers, he feels, are too smart to put up with it.
“Consumers are going to get a bit wary of games that have hundreds of millions of dollars spent on them”
“I think consumers are going to get a bit wary. Get a bit wary of games that have hundreds of millions of dollars spent on them. I think gamers are going to start saying, ‘For what?’
“The pressures are for games to appeal to more and more people. It used to be if you sold a million units, then that was OK. Then it was three million units. Now it’s five million units. Five million units is crazy. We’ve never sold five million units.”
It’s not just consumers who are getting wise, though. Matthews acknowledges that the publishers also see the dead-end approaching.
“I think something has to be said for the platform holders now. Along with digital distribution, the fact that the platform holders are really opening their doors and encouraging self-publishing and helping independent developers to take on some of those publishing responsibilities, has changed things for us. I think it will change things for a lot of other developers. “Hellblade was announced at the GamesCom Playstation 4 press conference. My perception of that press conference was that the real big hitters in that were all independent titles. It’s great that the platform holders have recognised that. There’s a real appetite from their players for innovative, creative games.
“It’s a great opportunity for us to try to do things differently. Like on Hellblade, we’re questioning everything that we do. Not just on development, but also how we do things from a business perspective as well. Normally you would say, ‘Well, you involve these types of agencies, get these people involved in this, and a website will take this long to create.’ The next thing that we’re doing is, we’re saying, ‘Well, is that true? Can we try and do these things a different way,’ because you can.
“There’s definitely pressure for us to fill all those gaps left by a publisher, but it’s a great challenge for us to step up to. Ultimately, we have to transition into a publisher. That’s going to happen at some point, if we want to publish our own games.”
While the Sony PlayStation 4 has been selling very well, it seems that Christmas was not really its season.
Sony said that the PlayStation 4 has sold more than 18.5 million units since the new generation of consoles launched. While that is good and makes the PS4 the fastest selling PlayStation to date, there was no peaking at Christmas.
You would think that the PS4 would sell well at Christmas as parents were forced to do grevious bodily harm to their credit cards to shut their spoilt spawn up during the school holidays. But apparently not.
Apparently, the weapon of choice against precious snowflakes being bored was an Xbox One which saw a Christmas spike in sales.
Sony said that its new numbers are pretty much on target, it sold the expected 2 million sales per month rate.
Redmond will be happy with that result even if it still has a long way to go before it matches the PlayStation 4 on sales.
For independent developers, the last decade has been an endless procession of migratory possibilities. The physical world was defined by compromise, dependence and strategically closed doors, but the rise of digital afforded freedom and flexibility in every direction. New platforms, new business models, new methods of distribution and communication; so many fresh options appeared in such a brief window of time that knowing where and when to place your bet was almost as important as having the best product. For a few years, right around 2008, there was promise almost everywhere you looked.
That has changed. No matter how pregnant with potential they once seemed, virtually every marketplace has proved unable to support the spiralling number of new releases. If the digital world is one with infinite shelf-space for games, it has offered no easy solutions on how to make them visible. Facebook, Android, iOS, Xbox Live Arcade, the PlayStation Network; all have proved to be less democratic than they first appeared, their inevitable flaws exposed as the weight of choice became heavier and heavier. As Spil Games’ Eric Goossens explained to me at the very start of 2014: “It just doesn’t pay the bills any more.”
Of course, Goossens was talking specifically about indie development of casual games. And at that point, with 2013 only just receding from view, I would probably have named one exception to the trend, one place where the balance between volume and visibility gave indies the chance to do unique and personal work and still make a decent living. That place would have been Steam, and if I was correct in my assessment for even one second, it wasn’t too long before the harsher reality became clear.
After less than five months of 2014 had passed, Valve’s platform had already added more new games than in the whole of the previous year. Initiatives like Greenlight and Early Access were designed to make Steam a more open and accessible platform, but they were so effective that some of what made it such a positive force for indies was lost in the process. Steam’s culture of deep-discounting has become more pervasive and intense in the face of this chronic overcrowding, stirring up impassioned debate over what some believe will be profound long-term effects for the perceived value of PC games. Every discussion needs balance, but in this case the back-and-forth seemed purely academic: for a lot of developers steep discounts are simply a matter of survival, and precious few could even entertain the notion of focusing on the greater good instead.
And the indie pinch was felt beyond Steam’s deliberately weakened walls. Kickstarter may be a relatively new phenomenon – even for the hyper-evolving landscape of the games industry – but it faced similar problems in 2014, blighted by the twin spectres of too much content and not enough money to go around. Anecdotally, the notion that something had changed was lurking in the back ground at the very start of the year, with several notable figures struggling to find enough backers within the crowd. The latter months of 2014 threw up a few more examples, but they also brought something close to hard evidence that ‘peak Kickstarter’ may already be behind us – fewer successful projects, lower funding targets, and less money flowing through the system in general. None of which was helped by a handful of disappointing failures, each one a blow for the public’s already flagging interest in crowdfunding. Yet another promising road for indies had become more treacherous and uncertain.
So are indies heading towards a “mass extinction event”? Overcrowding is certainly a key aspect of the overall picture, but the act of making and releasing a game is only getting easier, and the allure of development as a career choice seems to grow with each passing month. It stands to reason that there will continue to be a huge number of games jostling for position on every single platform – more than even a growing market can sustain – but there’s only so much to be gained from griping about the few remaining gatekeepers. If the days when simply being on Steam or Kickstarter made a commercial difference are gone, and if existing discovery tools still lack the nuance to deal with all of that choice, then it just shifts the focus back to where it really belongs: talent, originality, and a product worth an investment of time and money.
At GDC Europe this summer, I was involved in a private meeting with a group of Dutch independent game developers, all sharing knowledge and perspective on how to find success. We finished that hour agreeing on much the same thing. There are few guarantees in this or any other business, but the conditions have also never been more appropriate for personality and individuality to be the smartest commercial strategy. The world has a preponderance of puzzle-platformers, but there’s only one Monument Valley. We’re drowning in games about combat, but This War of Mine took a small step to the left and was greeted with every kind of success. Hell, Lucas Pope made an entire game about working as a border control officer and walked away with not just a hit, but a mantelpiece teeming with the highest honours.
No matter how crowded the market has become, strong ideas executed with care are still able to rise above the clamour, no huge marketing spend required. As long as that’s still possible, indies have all of the control they need.
Sony Pictures Entertainment has hired FireEye’s Mandiant forensics unit to clean up a cyber attack that knocked out the studio’s computer network nearly a week ago, and resulted in three movies ending up online.
The FBI is also investigating the incident. Sony went down last Monday after displaying a red skull and the phrase “Hacked By #GOP,” which reportedly stands for Guardians of Peace. Emails to Sony have been bouncing back with messages asking senders to call employees because the system was “experiencing a disruption.”
Mandiant is an incident response firm that helps victims of breaches identify the extent of attacks, clean up networks and restore systems. The firm has handled some of the largest breaches uncovered to date, including the 2013 holiday attack on Target. Sony is investigating to determine whether hackers working on behalf of North Korea have launched the attack in retribution for the studio’s backing of the film “The Interview” which is to be released on Dec. 25 in the United States and Canada.
The movie is a comedy about a CIA attempt to assassinate North Korean leader Kim Jong Un, who is such a funny guy. The Pyongyang government denounced the film as “undisguised sponsoring of terrorism, as well as an act of war” in a letter to UN. Secretary-General Ban Ki-moon.
The group had published a list of emails and passwords for PSN, Windows Live Mail and 2K Games accounts online, and claimed to be prepared to release more, but Sony says that they’ve come from other sources than hacking.
“We have investigated the claims that our network was breached and have found no evidence that there was any intrusion into our network,” the company wrote in a declaration to Joystiq. “Unfortunately, Internet fraud including phishing and password matching are realities that consumers and online networks face on a regular basis. We take these reports very seriously and will continue to monitor our network closely.”
Microsoft has seen a number of Xbox One exclusive titles already be ported to the PC. Both Dead Rising 3 and Ryse have already made it to the PC, but we are now again hearing that Sunset Overdrive again is heading to the PC and Forza Horizon 2 maybe following as well.
This is not the first time we have heard rumors of Sunset Overdrive coming to the PC. An ad that suggested as much was down played at the time by Insomiac as a mistake. Now Sunset Overdrive and Forza Horizon 2 showed up on Amazon France as coming for the PC.
While Phil Spencer has suggested that Microsoft will have more to say about the PC in 2015 and that it would be a good thing for PC gamers. The reality is that Microsoft has not pushed PC game development in a longtime as it chose to focus on titles for the Xbox and Xbox 360. With the Xbox One being closer in design to the PC, porting a title to the PC is easier and Microsoft of course wants to be a player in this space.
We will have to wait and see what actually happens, but should Sunset Overdrive and Forza Horizon 2 make their way to the PC, it will be a good thing for PC gamers. Then again it could just be nothing more than a mistake.