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Will EA Mimic Mobile Developers?

July 9, 2014 by Michael  
Filed under Gaming

Late last year, Frank Gibeau switched roles at Electronic Arts, moving from president of the PC and console-focused EA Labels to be the executive vice president of EA Mobile. Speaking with GamesIndustry International at E3 last month, Gibeau said he was enticed by the vast opportunity for growth in the mobile world, and the chance to shape the publisher’s efforts in the space.

“One of the things I enjoy doing is building new groups, new teams and taking on cool missions,” Gibeau said. “The idea was that EA is known as a console company, and for our PC business. We’re not particularly well known for our mobile efforts, and I thought it would be an awesome challenge to go in and marshal all the talent and assets of EA and, frankly, build a mobile game company.”

It might sound a little odd to hear Gibeau speaking of building a mobile game company at EA. After all, he described EA as “the king of the premium business model” in the mobile world not too long ago, when the company was topping charts with $7 apps like The Sims 3 or raking it in with paid offerings like Tetris, Monopoly, or Scrabble.

“Two years ago, we were number one on feature phones with the premium business model,” Gibeau said. “Smart devices come in, freemium comes in, and we’re rebuilding our business. I think we’ve successfully gotten back into position and we see a lot of opportunity to grow the business going forward, but if you had talked to me about two years ago and tried to speculate there would be a company called Supercell with that much share and that many games, we wouldn’t even have come close.”

Gibeau expects that pace of upheaval to continue in the mobile market, but some things seem set in stone. For example, Gibeau is so convinced that the days of premium apps are done, he has EA Mobile working exclusively on freemium these days.

“If you look at how Asia operates, premium just doesn’t exist as a business model for interactive games, whether it’s on PC or mobile devices. If you look at the opportunity set, if you’re thinking globally, you want to go freemium so you can capture the widest possible audience in Japan, Korea, China, and so on… With premium games, you just don’t get the downloads you do with a free game. It’s better to get as many people into your experience and trying it. If they connect with it, that’s great, then you can carry them for very long periods of time. With premium, given that there are so many free offerings out there, it’s very difficult to break through.”

Unfortunately for EA, its prior expertise is only so relevant in the new mobile marketplace. Its decades of work on PCs and consoles translated well to premium apps that didn’t require constant updating, but Gibeau said running live services is a very different task – one EA needs to get better at.

“Our challenge frankly is just mastering the freemium live service component of what’s happening in mobile,” Gibeau said. “That’s where we’re spending a lot of our time right now. We think we have the right IP. We have the right talent. We’ve got great production values. Our scores from users are pretty high. It’s really about being able to be as good as Supercell, King, Gungho, or some of these other companies at sustained live services for long periods of time. We have a couple games that are doing really well on that front, like The Simpsons, Sims Freeplay, and Real Racing, but in general I think that’s where we need to spend most of our time.”

As Gibeau mentioned, EA has already had some successes on that front, but its record isn’t exactly unblemished. The company launched a freemium reboot of Dungeon Keeper earlier this year and the game was heavily criticized for its aggressive monetization approach. In May, EA shuttered original developer Mythic.

“Dungeon Keeper suffered from a few things,” Gibeau said. “I don’t think we did a particularly good job marketing it or talking to fans about their expectations for what Dungeon Keeper was going to be or ultimately should be. Brands ultimately have a certain amount of permission that you can make changes to, and I think we might have innovated too much or tried some different things that people just weren’t ready for. Or, frankly, were not in tune with what the brand would have allowed us to do. We like the idea that you can bring back a brand at EA and express it in a new way. We’ve had some successes on that front, but in the case of Dungeon Keeper, that just didn’t connect with an audience for a variety of reasons.”

The Dungeon Keeper reboot wasn’t successful, but EA continues to keep the game up and running, having passed the live service responsibilities to another studio. It’s not because the company is hoping for a turnaround story so much as it’s just one more adaptation to running games with a live service model.

“If you watch some of the things we’ve been doing over the last eight or nine months, we’ve made a commitment to players,” Gibeau said. “We’re sincere and committed to that. So when you bring in a group of people to Dungeon Keeper and you serve them, create a live service, a relationship and a connection, you just can’t pull the rug out from under them. That’s just not fair. We can sustain the Dungeon Keeper business at its level for a very long time. We have a committed group of people who are playing the game and enjoying it. So our view is going to be that we’ll keep Dungeon Keeper going as long as there’s a committed and connected audience to that game. Are we going to sequel it? Probably not. [Laughs] But we don’t want to just shut stuff off and walk away. You can’t do that in a live service environment.”

Much like EA’s institutional experience, there’s only so much of Gibeau’s past in the console and PC core gaming world that is directly relevant to today’s mobile space. But as the segment grows out of what he calls the “two guys in a garage” stage, EA’s organizational expertise will be increasingly beneficial.

“These teams are starting to become fairly sizeable,” Gibeau said, “and the teams and investment going into these games is starting to become much greater. Now they’re much, much less than you see on the console side, but there’s a certain rigor and discipline in approach from a technology and talent standpoint that’s very applicable… If you look at these devices, they will refresh their hardware and their computing power multiple times before you see a PlayStation 5. And as you see that hardware get increasing power and capability on GPU and CPU levels, our technology that we set up for gen 4 will be very applicable there. We’re going to be building technologies like Frostbite that operate on mobile devices so we can create richer, more immersive experiences on mobile.”

Even if mobile blockbusters like Candy Crush Saga aren’t exactly pushing the hardware, Gibeau said there’s still a need for all that extra horsepower. With the increased capabilities of multitasking on phones, he sees plenty of room for improvement before the industry runs up against diminishing returns on the CPU and GPU front. He likens today’s mobile titles to late-generation PS2 games, with PS3 and Xbox 360-level games just around the corner.

“As it relates to games, this is like black and white movies with no sound at this point, in terms of the type of games we’ve created,” Gibeau said. “We’re just starting to break through on the really big ideas is my personal view. If you look at games like Clash of Clans, Real Racing, even Candy Crush, they’re breaking through in new ways and spawning all types of new products that are opening up creativity and opportunities here. So I think computing power is just something we’ll continue to leverage.”

The best part for Gibeau is that the hard work of convincing people to buy these more powerful devices isn’t falling solely on the shoulders of game developers.

“The beauty of it is it’s not a single-use device,” Gibeau said, “so people will be upgrading them for a better camera, better video capability, different form factor, different user inputs, as a wearable… I think there’s so much pressure from an innovation standpoint between Samsung, Apple, Google, and Windows coming in, that they’ll continue to one up each other and there will be a very vibrant refresh cycle for a very long period of time. The screens get better, the computing power gets better, and I don’t have to worry about just games doing it like we were in the console business. Those were pretty much just games consoles; these are multi-use devices. And the beauty of it is there will be lots of different types of applications coming in and pushing that upgrade path.”

Courtesy-GI.biz

Will The Xbox One’s Kinect Survive?

July 1, 2014 by Michael  
Filed under Gaming

Breaking up is hard to do, as the Carpenters famously crooned; right now, Microsoft is discovering, not for the first time this generation, that dumping your old ideas is just as tough as dumping your clingy ex. It may be the right thing to do, but it’s a fraught process and one that it’s tough to emerge from without attracting plenty of ire along the way.

Kinect 2.0 and Xbox One were, after all, meant to be married for life. The expensive sensor was bundled with the console from day one. Its functionality was deeply ingrained in the design of the system’s user interface, and a whole 10% of GPU resources were permanently devoted to it. Originally, Xbox One wasn’t even capable of booting up without a Kinect plugged in; it was an intrinsic and inseparable part of the console. In sickness and health, till death do they part.

Well, like so many relationships and marriages, it turned out that there were plenty of good reasons to break up long before the Grim Reaper raised a bony hand. Kinect has been at the root of many of Microsoft’s woes with Xbox One. It raised the price of the system, making the console $100 more expensive than the more technically impressive and well-liked PS4. It seemed to imply that Xbox One was a console aimed at casual gamers (with whom motion controls are now, fairly or unfairly, strongly associated) at the expense of the core gamers who made Xbox 360 successful. Moreover, in an age of actually rather justifiable paranoia about privacy, a camera in your living room that never turned off made plenty of people downright uncomfortable.

Worst of all, up to this point, Kinect just hasn’t justified its own existence. There aren’t any great games on the Xbox One that use Kinect extensively; there’s simply nothing there to make people think, “wow, this is something you couldn’t do on PS4 because it doesn’t have Kinect”. After 12 months of doggedly repeating the party line that Kinect was a great unique selling point for Xbox One, Microsoft’s decision to unbundle the peripheral from the console is a tacit admission that it wasn’t a selling point at all. Innovative hardware is meaningless if nobody builds must-have games to exploit the functionality.

It’s no coincidence, I think, that the decision to bring Kinect around the back of the woodshed and put a bullet in it was announced shortly after Phil Spencer took over Xbox. Spencer understands games in a way that his immediate predecessors did not; he would have an innate understanding of the fact that games sell consoles, and untapped potential in hardware is not exciting to consumers, it’s simply wasteful. An expensive peripheral that doesn’t drive great software isn’t a USP, it’s a ball and chain around the ankle of the console. It had to go.

It’s a little disingenuous, then, to see Spencer trying to claim that everything is fine in the land of Kinect. Speaking to GamesIndustry International at E3, he simultaneously acknowledged that Kinect was dragging the console down (noting that Kinect couldn’t succeed if Xbox One itself failed, which is a tacit admission that bundling Kinect with the console was risking a huge failure) while also claiming that plenty of consumers will buy the Kinect peripheral separately, and it’ll continue to be a big part of the Xbox One offering.

Not an unexpected claim, of course; but also patently not a true one. Kinect wasn’t supported strongly by developers even when it was bundled with every Xbox One. Now that it’s been dropped to the status of “expensive peripheral with no good games”, developer support will entirely dry up. Just like its predecessor on the Xbox 360, Xbox One Kinect is going to be relegated to lip-service support (“jump around to avoid enemy attacks, or just press B… Huh, you pressed B? Not up for jumping around? Surprising…”) and a handful of dancing or exercise titles. Not that there’s anything wrong with dancing or exercise titles, but you don’t get platform-defining tech from them; if you did, the world would have changed a hell of a lot more when Dance Dance Revolution mats came out for the PS1.

I don’t want to give Microsoft too much of a hard time for its decision with Kinect, not least because it’s the right decision. It gives them price parity with Sony and might help to fix some of the perception problems Xbox One faces. On the other hand, while Kinect was a failed USP – and thus deserved to be ditched – it was at least an attempt at a USP. With the right software and services backing it up, it could have given the Xbox One an offer different enough from Sony’s to be very interesting indeed – but building that software would have taken time, effort and attention. Spencer, with full visibility of the firm’s software pipeline, chose instead to amputate the limb and cauterise the wound. Painful, but mercifully quick; definitely a vote of no confidence in whatever Kinect software is still under development; possibly a move that will make Xbox One walk with a limp for the rest of its life.

What I hope the Xbox team recognises is that ditching Kinect isn’t enough – and hollow platitudes about how important the peripheral remains to the company’s strategy certainly aren’t enough either. What Xbox One needs is something to replace Kinect, a new USP; one that isn’t rubbish, this time. That USP could just be software, with Microsoft doubling down on its internal studios and building its relationships with third-parties to produce genuine exclusives (as opposed to timed-release DLC exclusives, which just look desperate and annoying no matter which platform is involved in them). It could be services, as the company attempts to leapfrog Sony and regain the lead Xbox Live once had over PSN’s services; what form that might take is tough to say, but there’s certainly still headway to be made in the provision of online services, and right now Microsoft lags behind, which makes this into an area brimming with opportunity. Most likely, a combination of both great games and great new services will be needed to make Xbox One attractive to consumers; to give it the USP that Kinect was supposed to be, but never was.

There’s an interesting comparison, of course, to be made with Nintendo’s difficulties with Wii U. I observed some time ago that both Microsoft and Nintendo had made the same basic error with their new consoles – they launched with expensive peripherals that boosted the cost of the console but had yet to show any dividends in terms of unique, must-have software. In Microsoft’s case, Kinect has now been ditched; losing the millstone, but with no sign yet of a new USP to replace it. Nintendo, however, has taken quite the opposite approach. Gamepad remains firmly bundled with the Wii U, and while software for the Gamepad still doesn’t impress, there’s obviously potential there; the short, cryptic videos of Miyamoto Shigeru working up gameplay demos using the pad which was shown at the end of Nintendo’s E3 broadcast was a statement of intent. Rather than ditching its white elephant, Nintendo is trying to figure out how to put it to work.

So, over the next year, we’re going to get to see how two diametrically opposed solutions to the same problem work out. Microsoft, making the latest of several U-turns, has gone back to square one and now needs to find a new selling point for the Xbox One. Nintendo has doubled down on the Gamepad, and needs to convince consumers of the worth of its innovation – not to mention the worth of the Wii U overall. Different challenges with similar requirements; they both need great games to prove their point. The consumer wins, in this situation, but it will be interesting to see which company, if either, can emerge victorious from these trials.

Courtesy-GI.biz

 

Batman Arkham Knight Gets Pushed Back

June 6, 2014 by Michael  
Filed under Gaming

Those who have been eagerly waiting for October to experience the latest adventures of Batman from developer Rocksteady, are going to be very disappointed to learn that the game will not make its originally announced October release.

Instead developer Rocksteady has confirmed that the game will be released in 2015. An exact release date has not yet been decided upon. We are hearing however, that as spring release for Arkham Knight is very likely.

While the exact reasons behind the delay were not announced, but the game is much bigger than previous Batman titles that Rocksteady has done and it is the first all next-generation title that the developer has done which also might be contributing to the delay. The game is still scheduled for release only on the Xbox One, PlayStation 4, and PC so the next generation status of the game has not changed.

Courtesy-Fud

Is Sony’s Next Move To Kill The PSP?

June 6, 2014 by Michael  
Filed under Gaming

Word we are hearing is that Sony is planning to discontinue the PSP (or PlayStation Portable) and will end shipments later this year. If this ends up coming to pass, the handheld console which was a first for Sony, was launched way back in 2003 at E3, but it took some time for Sony’s first portable console to be available worldwide.

The PSP has gone through several revisions including the removal of the Universal Media Disc (UMD) and the release of a revised version known as the PSP Go which was a download only version that was a total failure and quickly killed off in 2011. A very popular revision of the console known as the slim and lite version known as the PSP-2000 sold quite well and it was followed by the PSP-3000 version which was tweaked and available in several special edition versions.

Since PSP games can be played on the PS Vita that came from the PlayStation Store, that also had to factor into the company’s decision as well. Word is that the decision to end the sales of the PSP does not and will not have any effect on the PlayStation Vita which will continue on as Sony’s portable gaming platform. Due to the included streaming gaming support that is included with the PlayStation 4 using the PS Vita, it is unlikely that Sony will be planning to discontinue the PS Vita anytime soon, but a lower cost hardware revision is likely in the cards at some point in the near future, sources tell us.

Total sales of the PSP in all of the console revisions is over 80 million consoles worldwide according to a number of sources.

Courtesy-Fud

Is Far Cry Playing With Fire?

May 23, 2014 by Michael  
Filed under Gaming

In the Far Cry games, fire is a wonderful tool. It spreads dynamically, opening up a wealth of creative and strategic possibilities for players to achieve their goals. However, it also gets out of control in a hurry, potentially coming back to hurt the player in sometimes unpredictable ways.

It’s an appropriate metaphor for the series’ approach to controversial subject matter. Last week, Ubisoft announced the development of Far Cry 4, showing off some key art in the process. The picture depicts a blonde light-skinned man in a shiny pink suit against the backdrop of the Himalayas, smirking as he uses a defaced statue as a throne. His right hand rests on the head of a darker skinned man who is kneeling before him, clutching a grenade with the pin pulled. Though we know very little about the characters depicted, their backgrounds, or their motivations, the art got people talking (and tweeting). Some were concerned about racism. Others were worried about homophobia. Many saw neither. At the same time, details about the game are so scant that it’s entirely possible the problematic elements here are properly addressed within the context of the game itself.

But at the moment, we don’t have that context. It’s promotional art, so to a certain extent, it’s designed to exist out of context, to catch the eye of someone on a store shelf, even if they’ve never heard of the series before. And while we lack the context the actual game would provide, there’s no such thing as “without context.” Here, the context we have is that this is a Far Cry game, the latest entry in a series that has been earning a reputation for boldly storming into narrative territory where other games fear to tread (often with good reason).

Like the fire propagation mechanic, this narrative ambition was introduced to the series with Far Cry 2. What had previously been just another shooter (albeit one in a tropical setting more attractive than most) became a series that embedded its stories within thorny issues. Far Cry 2 cast players as a mercenary in a fictitious African country’s prolonged civil unrest, using blood diamonds, malaria, and Western imperialism as texture in a story emphasizing the moral vacuum of war. Far Cry 3 took things a step further, with players controlling a spoiled rich white kid on a tropical island vacation who suddenly must deal with nefariously swarthy pirates and intentionally stereotypical natives. And just in case that didn’t stir up any controversy, the story also weaves in rape, sex, drugs, and torture. In both cases, some critics and players felt the games offensively trivialized important or tragic subjects.

Given this history, it’s not surprising that Far Cry 4 would not universally receive the benefit of the doubt. Much more surprising (to me, at least) is that Ubisoft is continuing down this path with the franchise. Far Cry 3 sold a staggering 9 million units, putting it in the same class of blockbuster as Assassin’s Creed (last year’s version of which sold 11 million units). However, the publisher’s narrative approach to the two games could not be more different.

Assassin’s Creed is a fascinating case study for dealing with touchy subjects in AAA video games. It wasn’t long after the US invaded Afghanistan and Iraq that work on the first Assassin’s Creed started. You know, the one set in the middle of a holy war between Christians and Muslims. Assassin’s Creed II had players attempt to assassinate the pope. Assassin’s Creed III put players in control of a Native American protagonist during the Revolutionary War. Assassin’s Creed IV: Freedom Cry saw the gamification of emancipation.

The Assassin’s Creed franchise draws some criticism from time to time for its handling of these subjects, but the series has rarely found itself at the flashpoint of controversy. Part of the reason for that is the Assassin’s Creed developers research their subjects thoroughly. They understand what the concerns surrounding the sensitive topics are, and by virtue of the games’ historical settings, they can point to factual evidence of certain people’s actions, or common situations of each era.

When it comes to dealing with controversy, Assassin’s Creed is much like its stealthy protagonists are imagined to be: quiet, cautious, and efficient. Far Cry, on the other hand, deals with these topics more like the way Assassin’s Creed protagonists behave when I play them: recklessly uncoordinated and endlessly destructive. Even when it’s clear Far Cry’s developers have put plenty of thought into what they’re saying, it’s not always clear they’ve put much thought into what people will hear them saying through their games.

It speaks volumes about how Ubisoft perceives the long-term value of the two series. Assassin’s Creed is the company’s biggest and most adaptable blockbuster, an annual gaming event based on a premise that can be mined and iterated on endlessly in almost any medium, a recurring revenue stream to be nurtured over time. Far Cry, this key art release suggests, is just another first-person shooter, a brand defined primarily by how hard it works to shock people, perhaps because the company doesn’t have faith that it can sell on its other merits. One of them is the kind of project you make a Michael Fassbender film around. The other might be more of an Uwe Boll joint.

I’m not saying that Far Cry should avoid these subjects. I actually love to see games of all sizes attempting to tackle topics and themes often ignored by the industry. But the right to explore those subjects should come with a responsibility to do so with care. These are legitimately painful subjects for many people. If developers want to force players to confront them, they should have a good reason for it that goes beyond pushing people’s buttons, exploiting tragedy for shock value and an early preorder campaign. In video games, we don’t push buttons for the sake of pushing buttons. We push them to do things.

Courtesy-GI.biz

Is Sony Still On Track?

May 21, 2014 by Michael  
Filed under Gaming

It was the best of times, it was the worst of times; while I hesitate to apply Dickens’ immortal words to something as fleetingly temporal as Sony’s financial woes, it’s a quote I couldn’t quite shake as I digested this week’s results statement. Here is a company that has just launched one of its most important products in years, the PlayStation 4, to almost universal fanfare and massive sales; whose reputation has risen remarkably in its core markets and whose overseas sales are, finally, being buoyed once more by a sensibly-priced Yen. The best of times! And yet; here is a company whose computer entertainment division can’t turn a profit, a company posting huge losses against all expectations, a company whose already-interminable restructuring is set to last another year. The worst of times.

Sony lost over $1.2 billion last year. Revenues were up, though; over $75 billion poured through the company during the year, a 14.3% increase on the previous year. That’s important context for the scale of the loss, but it doesn’t make the loss itself any smaller. Market analysts expected a small profit. Instead, they got not only a loss overall, but a loss in the videogames division specifically, whose seemingly stellar performance recently could not plug the $78 million gap in its finances.

To add to the company’s woes, its new CFO – the commendably straight-talking Yoshida Kenichiro – says that next year will be another loss. There’s more restructuring ahead, he told analysts at a briefing this week, and it’s going to hit the company’s balance sheet hard in the next 12 months. Yoshida simultaneously promises light at the end of the tunnel, and a rocky road ahead; a travel-related mixed metaphor that probably doesn’t fill any veteran Sony-watchers with confidence.

It’s worth digging a little deeper into Sony’s results to try and understand what’s actually happening here. For all that it has trimmed its operations over the past decade, Sony remains a pretty enormous sprawl of a company, with interests that extend far beyond the consumer electronics for which western consumers recognise the firm. Sony Music and Sony Pictures, of course, are major parts of the business; Sony Computer Entertainment we all know and love; cameras and TVs we understand; but how about Sony’s life insurance businesses, or its banking efforts? How about its semiconductor operations, or its sidelines in making camera components for other firms’ smartphones? How about its fabrication plants for CDs, DVDs and Blu-Ray discs, responsible for a huge proportion of the discs on sale around the world today?

The challenge in interpreting Sony results lies in trying to understand the full scale of those business interests and then in trying to figure out where negative results really stem from. We know, for instance, that Sony is taking on major costs in winding down disc fabrication plants in some parts of the world. We know that the television division has been in trouble for years thanks to competition (some of it state-backed) from Asian rivals, and will finally be spun off and left to sink or swim in a major swathe of restructuring this year. That won’t be without its own costs, of course. Other costs or profits may be harder to discern. Clients for component businesses are generally somewhat anonymous; it’s considered an open secret that Sony provides the camera for recent iPhones, but few component contracts are quite so well-known, and thus, their bottom line impact is harder to discern.

What I’m saying is that Sony (and to an even greater extent, its rival Microsoft) is a bloody hard business to read and understand on the basis of financial reports. Companies like Nintendo, Electronic Arts and Activision Blizzard really just do videogames, so when their results are poor, it’s easy to discern what’s going on. We know their products, we know their markets and we can usually quite easily discern the weaknesses causing difficulties (although seeing the difficulty and suggesting an effective prescription are two very different talents). Sony, however, is big, complex and obfuscated to no small degree. We get broad outlines; a big loss is a big loss; but the fine detail is hard to get a grasp upon.

None of which is to say we shouldn’t try. Sony is one of the most important companies in the games business; with the success of the PS4 over the past six months, it’s arguably the most important company in the business right now. Hence, yes, it’s a concern that it’s making big losses. It’s doubly concerning that some of those losses are coming out of the seemingly successful computer entertainment division, but we can make some educated guesses at what’s happening here. Firstly, the extremely high sales of the PS4 in its early months are actually a short-term negative to the company’s figures. Sony’s console business is a razor-and-razorblades model, selling hardware at a loss initially but recouping this money through software sales and, ultimately, through more profitable hardware sales down the line when manufacturing costs have fallen. Thus, the more units PS4 sold in its launch period, the more money Sony would lose – but this lost money is really more of an investment, since the firm is betting on getting it back in software sales down the line.

High early sales also contribute to losses in other ways. Sony’s launch plans for PS4 were hugely ambitious in terms of the number of units shipped to each territory; the company did end up somewhat supply-constrained, but it aimed to avoid such constraints where possible with enormous shipments and rapid resupply of inventory. This strategy may have been partially aimed at capitalising on Microsoft’s launch weakness before strategic changes could be made to the Xbox One’s product or pricing, but I’m sure that a wider goal was also in mind. Rapid sales of a new home console would silence some critics expecting tablets and smartphones to destroy this market sector entirely; such rapid sales would require a good supply chain, and those don’t come cheap. The exceptional ramp-up of Sony’s PS4 manufacturing capabilities won’t have been cheap, an expense compounded by the loss the firm will have registered on manufacturing every PS4 shipped to date.

In the short term, that means a loss for SCE; but CFO Yoshida seemed pretty blase about that, and rightly so. In the medium term, it’s a good investment. Sony has a great track record of strong attach rates for its consoles, meaning it will get its money back with interest. Moreover, it has a truly fantastic track record of cost-cutting on console manufacture, even managing to get the tricky Cell-based PS3 into a vastly smaller and cheaper casing in the end. The faster the installed base grows, the faster the bulk discounts to manufacturing costs can be realised; with PS4 selling far faster than PS3 or Xbox 360 did before it, Sony can expect its new console to be in the black well ahead of schedule.

As for the rest of the company; I reiterate my position that Kaz Hirai’s job is not an enviable one. It was said of John Riccitiello’s tenure at EA that he faced the task of trying to explain to shareholders why his company was in the fifth year of a three-year restructuring that was going to take seven years. Hirai’s task is even more tricky, in some regards. He’s only been in the top job for two years, so if his ambitious restructuring can truly be completed by next year (as Yoshida claims, with some authority) then it will actually have been a rather fast turnaround. However, Sony is already restructure-weary; seven years of turmoil under former CEO Howard Stringer left the company and its commentators skeptical of any claims regarding light at the end of the restructuring tunnel. Stringer did many good things and helped to move Sony’s culture to a point where Hirai’s ideas could find fertile soil, but he also permitted (or felt that he could not fight) all manner of poor strategy in core divisions, most notably television, where Sony has stumbled from disastrous strategy to doubly disastrous strategy on a near-annual basis for the past decade.

Hirai, at least, appears to have the confidence and the clout to make his plans work where Stringer’s did not. Separating the almost certainly doomed TV business from the rest of Sony is a good plan, but one that required extraordinary political capital within the firm. Having the respected Yoshida as CFO is also a good move, since it’s given Hirai the cover he needs to bring all of the financial pain of his restructuring plans into the current year and the following year. The temptation would have been to spread things out, but the markets seem to respect Hirai and Yoshida’s honesty in front-loading the costs, anticipating a return to profitability in two years’ time.

That, perhaps, is the big difference between Sony and Nintendo – two companies that have been compared heavily in discussion over their recent financial results. Both have some very profitable divisions (3DS does well for Nintendo, while movies and finance, in particular, are solid performers for Sony), but both have just recorded financial results well below expectations and triggered alarm among market commentators. Nintendo, though, can only suggest vague directions it might take to exit its current situation; it will take a major new product announcement to see whether the company can get back on track, and that’s not likely for a couple of years. Until then, Nintendo’s financial health is largely a matter of faith.

Sony, on the other hand, has a plan. It’s a tough plan, but a solid one; the divestment of loss-making businesses, the refocus on core pillars that actually make money, and more specifically to our industry, the tried-and-tested approach to bringing the PS4 into profitability as rapidly as possible. A CFO like Yoshida can speak plainly about how Sony is going to change, what it’s going to cost and when it’s going to start making money; Nintendo, relying on products still under wraps to give it a relevant future, lacks the ability to be so blunt and straightforward about how it will build future success.

Even the rather tolerant Japanese stock market and its very patient institutional investors have limits, and Sony could yet reach those limits. The company’s restructuring to date would try the patience of even someone playing a very long game; but Yoshida is a credible figure, Hirai seemingly retains the ability to carry out the reforms he plans, and the company’s generally profitable divisions, including games, are still in good shape. Even if another year of pain does loom for Sony, the end might finally be in sight; in 12 months time we can hope to hear of a leaner, tighter and more focused Sony, with black ink finally starting to crop up on its accounts.

Courtesy-GI.biz

 

Will Watch Dogs Be A Hit For Ubisoft?

May 20, 2014 by Michael  
Filed under Gaming

Ubisoft announced that Watch Dogs is setting pre-order records for the publisher. The company said that it’s the most pre-ordered new IP in Ubisoft’s history, the second-highest pre-ordered Ubisoft game ever, and the most pre-ordered new IP in the industry this year. Moreover, retailer GameStop confirmed that Watch Dogs is the most pre-ordered next-gen game to date.

All that said, Ubisoft actually did not disclose how many units were pre-ordered. GamesIndustry International pinged Ubisoft to ask for a pre-sales figure and we’ll be sure to let you know if we get one.

[Update: On the company's earnings conference call, executives said that they fully expect Watch Dogs to perform better than the first Assassin's Creed, meaning it should exceed 6.3 million in lifetime sales. "We expect it to become a major heavyweight of the industry," said CEO Yves Guillemot.]

“These strong pre-orders are a clear indication of players’ anticipation and excitement for Watch Dogs,” said Geoffroy Sardin, Senior VP Sales and Marketing at Ubisoft. “The teams have worked tirelessly to ensure that players will enjoy a top quality game with enormous scope, and we can’t wait to get the game into their hands.”

“We are seeing tremendous excitement for the new Watch Dogs game… It is on track to be one of the top selling video games across all consoles in 2014,” added Michael van den Berg, vice president of Merchandising at GameStop International.

Watch Dogs development is being led by Ubisoft Montreal, but similar to other massive AAA projects in the industry it’s been a collaborative effort with assistance from teams at Ubisoft Bucharest, Ubisoft Paris, Ubisoft Quebec and Reflections. The game will release on May 27 for current-gen and next-gen consoles, PC and it’s coming to Wii U “at a later date.”

Courtesy-GI.biz

Are Free-To-Play Games Satisfying Gamers Needs?

May 15, 2014 by Michael  
Filed under Gaming

Fireproof Games’s Barry Meade has issued a blunt jeremiad to what he sees as a mobile gaming industry hurtling towards creative irrelevance due to its reliance on data.

In an article published on Polygon, Meade lamented the reality that Fireproof’s The Room franchise is an extremely rare exception in mobile gaming: standalone experiences that earn good revenue from paid downloads.

“In a market as huge as mobile how the fuck are Fireproof among the only makers of premium games that saw this kind of success?” Meade asked, citing data indicating low levels of engagement (66 per cent of mobile games are not played beyond the first 24 hours) and incredibly small numbers of paying customers (two to three per cent) as evidence that the dominant free-to-play model is not providing quality entertainment to the market

“This is a statistically insignificant amount of happy gamers and nothing that gives you a basis to make claims about ‘what people want’. I think it just as likely that mobile’s orgy of casual titles is due to simple bandwagon-ism or, in other words, not knowing what people want.

“This is a statistically insignificant amount of happy gamers and nothing that gives you a basis to make claims about ‘what people want’”

“So it bothers me to hear game developers talking as if casual games are the new paradigm on mobile when so very few developers are actually happy with the games as they are, and mobile gamers clearly seem to “care” least of all. Free-to-play and casual titles should be a part of a greater gaming ecosystem, but right now they are the entirety of it on mobile.”

For further evidence, Meade pointed towards the top-ten grossing charts, which are dominated by an unchanging crop of huge titles that do little more than trade their relative positions of dominance. To the public, however, these “ten cute grinding games that are clones of each other” seem like the best the industry has to offer, and continue to reap the vast majority of the rewards.

“The free-to-play model itself serves a million uses to developers and gamers, I’ve chucked lots of time and money into World of Tanks, Warhammer Quest and many others myself – the model is not the problem,” Meade continued.

“The problem is more general, that taken as a whole the games industry is making mobile games that nobody cares about available to millions of players for nothing. Free-to-play producers chime that quality levels are obviously fine, ‘If it’s making money it’s objectively good, see?’

“Well no, not quite, shit sells by the ton every day. In the real world Burger King doesn’t get three Michelin stars. Burger King gets to be happy with its revenue not its reviews, and our industry’s inability to see the difference will only pull us further into our creative vacuum.”

The dominance of the free-to-play model in mobile continues to be divisive, and there are certainly counterpoints to Meade’s take on the matter – most notably from Ben Cousins, who has argued the relative merits of free-to-play both at conferences and in the press. However, Meade is far from alone in his doubt, and that includes developers who have spent years working with the free-to-play model.

At Casual Connect Europe this year, The Workshop’s Laralyn McWilliams gave a talk in which she warned the industry about mistaking data for an emotional connection. “There’s no measuring spoon for love. You can’t quantify it,” she said. “Retention is not the same as happiness.”

Meeting with GamesIndustry International after her talk, McWilliams expressed very real concern that the amount of money being made is masking the negative connections created by free-to-play games, and the possible long-term damage that could result from that relationship.

“The moment that you monetise in Candy Crush you’re probably extremely frustrated. You want to get past this level you’ve failed to complete 40 or 50 times, and that’s the moment you spend. But mixed into that moment where you spend is that frustration. It’s building a bad connection. I’m not monetising at a positive moment.”

Meade concludes his argument with perhaps the most salient point of all: “The audience knows better than all of us and if our mobile public truly does signal ‘I care’ through purchasing, I don’t think its radical for the industry to start listening to the 98 per cent of mobile gamers out there saying ‘I don’t care’.”

The full version of the article is over on Polygon, and it’s well worth your time.

Courtesy-GI.biz

Are AAA Games Budget A Threat To The Industry?

May 13, 2014 by Michael  
Filed under Gaming

It became apparent many years ago that much of the games industry’s future growth was going to come from new markets; new platforms, new demographics and new business models. Right from the outset, that undeniable reality has been hanging over the industry’s formerly dominant companies like Edgar Allan Poe’s slowly descending pendulum blade. Most senior people in any business like this know, or at least think they know, how this part of the innovator’s dilemma works; it means that the companies most successful in the old paradigm hang on for too long, too afraid of damaging their doomed old businesses to really push forward with new ideas, eventually being rendered obsolete by new, hungry firms with no stake in the old order of things to hold them back.

Lots of commentators see that happening to Nintendo right now. The company that effectively invented the modern console is so tied to the old model (which served it superbly with the Wii and DS, and continues to serve well on the 3DS) that it can’t let go, and will be outpaced by innovative new companies with no console fiefdom to defend. I don’t entirely agree; Nintendo is certainly conservative, but I don’t think it’s bound so much by the innovator’s dilemma as by a sense of long-termism that makes it deeply suspicious of possibly faddish trends. That suspicion could sink the company, or keep it swimming for a very long time; anyone claiming to know for sure how this plays out is welcome to email me next week’s lottery numbers while they’re at it.

“For all the dextrous footwork in their business planning, both companies can equally put their success at present down to a much more straightforward factor: fantastic core games”

After all, it’s not so long since plenty of other games companies were posited as dinosaurs who were about to be rendered extinct by the impact of new business models and technologies. Certainly, a fair few publishers have foundered in recent years, largely crushed by the implosion of the sub-AAA console space, but this week saw a twist to the narrative for the industry’s two largest publishers. Electronic Arts and Activision Blizzard announced their financial results in quick succession; both firms significantly exceeded market expectations. You wouldn’t call either set of figures amazing, but there were few holes to be picked; they were solid figures, reflecting good, sustainable and growing businesses.

Part of that is down to flexibility. The two firms have leapt over the industry’s long and tortuous transition period in very different ways. EA embarked upon a long-term restructuring program under former boss John Riccitiello, ensuring that it would have a strong presence in new mobile and social gaming markets while retaining its powerful core franchises. Activision, on the other hand, doubled down on core gaming before branching out into the social and mobile spaces from that stronghold. You could reasonably posit that Activision is now stronger in the core space, and EA stronger in the new markets, but the reality is that both companies have ended up in broadly the same place, albeit through different routes, and both look very different to how they looked five years ago.

All the same, for all the dextrous footwork in their business planning, both companies can equally put their success at present down to a much more straightforward factor: fantastic core games. EA’s revenue was driven strongly by Titanfall, and positive forecasts for the coming year are thought to be largely based on forthcoming updates to the Battlefield franchise. Activision’s strong financial backbone is Blizzard, which continues to generate mountains of money from World of Warcraft (slowly declining, but still bigger than any MMO in history) and Diablo. Call of Duty and Skylanders are its other cash cows; its big hope for next year is Destiny, the new title from Halo creators Bungie.

These core franchises are not immune from the lure of new business models, and nor should they be. Activision, for instance, has high hopes for free-to-play mechanisms in its new Blizzard title, Hearthstone, and its forthcoming version of Call of Duty for the Chinese market. Yet most of the money coming from these games and services is in the form of up-front purchases or subscriptions. The introduction of new business models hasn’t killed off the old ones, it seems; plenty of consumers still prefer the traditional way of doing things, and are happy to pour money into it. EA and Activision have both made errors of judgment regarding which business model best suits which product in the past, and will do so again in the future, no doubt, but both firms recognise that the new models are additional options, not straight-up replacements, for the old way of doing things.

In that regard, although it’s just a single quarter’s data points, the positive results for these two leading publishers (and the stock market rally which followed) are good news for the industry overall. It’s been my thesis for some time that the market for core games is not in any kind of decline at all, but merely seems thus because of a combination of rapid growth elsewhere (which overshadows the now slow-but-steady growth of the much more mature core sector) and the obfuscation of revenues due to the digital transition. I suggest that EA and Activision’s results are further confirmation of that hypothesis; at the very least, even if they’re far from being “proof”, they’re good news for those whose businesses or careers are still pinned to the core sector and its traditional (but evolving!) business models.

“If budgets do soar in this direction and consumers decide that this level of investment is what “AAA games” ought to be, then AAA games will contract to an even smaller subset of what they already are”

Which is not to say that there was no shadow cast by this week’s financial announcements. If you didn’t raise your eyebrows at Activision’s admission that Destiny’s development and launch is going to cost around $500 million, then you’re either a lot wealthier than most people, or a lot worse at processing very large numbers than most people. For all the talk and worry among core gamers and the developers who serve them about the rise of mobile, social and F2P, I can’t help but feel that the only real threat to AAA gaming right now is not external at all. It’s in this kind of madness, half-billion dollar gambles on single AAA titles, that the seeds of AAA’s own destruction may lie.

Sure, Destiny isn’t going to cost half a billion to develop; much of that money will go to the marketing budget and the expensive infrastructure required for the game, no doubt. Yet such specifics barely matter. Activision is making a half-billion-dollar punt on the game, and that in itself is inherently destructive. Imagine being a manager or creative at almost any level within such a project. Creative projects are inherently risky; nobody truly, honestly knows whether the public will love or hate (or worst of all, simply feel indifferent about) a new game, movie, song or book when it appears on the market. A $500 million creative project, therefore, must compensate for such inherent risk by trying to cut down risk in every other way possible; or to be more precise, everyone involved in such a project, aware of the enormous dollar-sign floating above, will reduce the risk of their own specific part of the project as much as possible, such that in the event of failure, nobody will blame them.

I’m not saying that Bungie, or any part of Activision itself, is necessarily pursuing such a strategy; merely that such a strategy naturally emerges from the awareness of such an enormous level of investment and the potential for such a damaging failure. People cover their own backsides; they do things that are solid and proven rather than things that are new and interesting, because new and interesting things are risky. It’s my firm hope and desire that Destiny ends up being a fantastic game, but I never really expected it to be a surprising game, and the $500 million price tag all but guarantees that I’m right about that. Surprises are risky. You can surprise people at low cost and hope for the best, but for $500 million, you don’t dare surprise anyone, least of all the fickle consumer.

I said previously that EA and Activision have ended up in the same place by walking different paths; I wonder, worriedly, if Destiny might be a part of the journey Activision has yet to complete, but which EA experienced rather painfully with the also hugely expensive Star Wars: The Old Republic. Once executives start talking about such huge amounts of money, seemingly oblivious to the inherent, essential riskiness of any new creative endeavour, it’s hard not to see shades of previous vainglorious failures. If budgets do soar in this direction and consumers decide that this level of investment is what “AAA games” ought to be, then AAA games will contract to an even smaller subset of what they already are. $500 million may be an impressive boast for Activision, but it’s not good news for the industry at large.

Courtesy-GI.biz

 

Will The PS4 Lead All Consoles In 2016?

May 8, 2014 by Michael  
Filed under Gaming

The IDC is preparing to publish its latest console forecast and the research firm has given GamesIndustry International an exclusive preview of the report. There are several key takeaways to note, including Sony’s dominance of the new console cycle, Microsoft’s need to unbundle Kinect, and a general decline in the physical retail side of the games business.

IDC predicts that Sony’s PlayStation 4 will have the single biggest share of the market in 2016 with 51 million sold globally. Microsoft hasn’t been faring quite as well, but IDC believes Xbox One will make a serious comeback, particularly in North America where it’s forecasted to take the lead. This will be spurred on by unbundling Kinect, IDC said.

“The presumed unbundling of Kinect and Xbox One, which should facilitate rough price parity between it and the PS4, should lead to a spike in Xbox One sales; assuming the console and sensor are unbundled in 2015, IDC expects Xbox One to recover and emerge with the largest installed base of any console in North America by the end of 2016,” the firm explained.

Meanwhile, Nintendo’s Wii U is expected to finally receive “the equivalent of a $50 price cut worldwide in late 2014 or early 2015,” but it won’t make a serious dent in the installed base gap between Wii U and the competition.

Looking at the bigger picture, the retail component of the video game business is expected to see continued declines, IDC said. IDC’s forecast states that, together, eighth generation consoles will generate about 10 percent less retail revenue from console hardware and disc-based games than seventh generation (Xbox 360, PS3, Wii) consoles did combined through their first six years on the market.

That being said, total eighth generation console hardware revenue actually is projected to come in above the comparable seventh generation total thanks to higher average selling prices (ASPs). It’s a different story, however, for the physical disc business, which IDC forecasts will see 45 percent fewer discs sold to retailers in the first six years compared to the seventh generation physical games sales.

It’s clear that more and more games are being purchased digitally, and the good news is that digital sales will keep the industry healthy. “Given current trends, more than 50 percent of total game and direct app/service spending across all consoles will come through digital channels by 2019 (just over the edge of our forecast window),” said Lewis Ward, IDC research manager. “Microsoft and Sony will get there faster than Nintendo; the projection mixes all game/service spending on big 3 OEM platforms.”

In order for the industry to match the sales of the seventh generation, digital will have to continue to grow – and it appears that it will. “If digital games and related online console revenue streams are included in the picture… the outlook for eighth generation consoles improves substantially. The inclusion of digital console game spending, subscription revenue and other content/service/app purchases billed through online eighth generation console stores pushes total revenue up to within a few percent of the seventh gen total through the first six years of availability,” noted IDC. “Rising digital revenue is forecast to nearly offset the fall in disc-based revenue.”

IDC’s 73-page report, Worldwide Video Game and Entertainment Console Hardware and Packaged Software 2014-2018 Forecast, will be available this week.

Courtesy-GI.biz

Will China Be The Next Battleground For Consoles?

May 7, 2014 by Michael  
Filed under Gaming

When the Xbox One finally rolls out in Asian territories this September, almost a year after its western debut, all eyes will be on its performance in one key territory. Not Japan, where expectations for the console’s performance are about as close to absolute zero as you can imagine, but rather China; a late, and somewhat surprising, addition to Microsoft’s launch plans.

You’d think that China, the world’s most populous nation and second-largest economy, would be an obvious and attractive target for a console platform holder. Indeed, China is on track to be the world’s top economy within the coming years (perhaps even next year, according to recent projections in the Financial Times); corporations around the globe are eyeing the nation’s rapid growth and swelling middle class as a huge opportunity. Games on PC and mobile phones are already big business in China; why shouldn’t console platform holders take a piece of that pie?

Yet in September, when Microsoft introduces Xbox One to the Chinese market, it will be the first platform holder to attempt such a launch for many years. Neither Nintendo nor Sony has shown any indication that they intend to bring their present home console platforms to China, and despite the apparent potential of the market, you’d struggle to find any serious analyst who expects Xbox One’s performance there to be anything more than an interesting experiment. Chinese news site QQ reports that Microsoft is only planning to ship 100,000 units of the console in the region; Microsoft denies that rumour, but only does so in pointless newspeak. It’s “a figure which does not reflect Microsoft’s vision,” apparently, which translates into actual human language as “we can’t deny it, we just don’t want you to say it out loud”.

“Chinese gamers have mostly grown up without consoles and are used to mobiles and PCs as their gaming platforms, so the level of demand is questionable”

So what’s the problem with China? Why isn’t the world’s largest economy in waiting an open goal for console manufacturers? The problems are actually summed up quite well by the very circumstances which have allowed Microsoft to launch Xbox One in the market – namely the partial repeal of a rule dating back to 2000 which quite simply banned the sale of any foreign-made games console in China. Sony tried to flout the rule by marketing the PS2 as a more generalised home entertainment device, but even after trying to accommodate the thoroughly unimpressed Chinese authorities, found itself subject to a ban. Nintendo had a little more success, creating a joint venture called iQue which marketed a heavily modified N64 (the iQue Player) with a very limited range of software, but since since 2003 has focused solely on handheld consoles.

The recent expansion of the Shanghai Free Trade Zone has brought with it a change to this rule, along with many other liberalisations of trade within a specific zone around Shanghai. This has allowed Microsoft to establish a partnership with local firm BesTV – not just for Xbox One, but a more broad partnership aimed at extending Microsoft’s media interests into China.

Note two things about the above narrative. Firstly, for all its rapid growth and development as a marketplace, China was as recently as 2000 and beyond still establishing strict new rules prohibiting overseas countries from bringing consoles and games to the country. These rules were justified largely on cultural grounds; the authorities were apparently concerned that console games were bad for the development of children and would violate the cultural norms which the country’s censors wish to enforce. Concerns for childhood development, however, seemed not to apply to the country’s homegrown games industry, which has boomed in recent years. China now has a huge market for mobile and PC games, largely served by domestic companies, with only occasional success stories for western companies who manage to navigate the nation’s tough regulatory environment; Blizzard being the obvious example.

I don’t doubt that Chinese concern over the cultural aspects of games was real. The Chinese authorities believe strongly in the power of media and communication to impact upon their populace, and have a particularly deep-seated fear of external influences which might loosen their grasp on power within the country. Console games, a creative industry dominated by America and Japan – nations seen as rivals at best, as enemies at worst – would certainly appear suspect to those authorities, and a belief that games are bad for children’s development, albeit unsupported by research, does seem commonplace among Chinese parents. The justifications weren’t untrue, then; they were just very, very convenient, since they allowed the authorities to enact trade rules that very effectively protected a burgeoning local industry from international rivalry. This kind of protectionism is not unique to China, nor is it necessarily a bad thing, but the government’s willingness to wield this weapon in its economic battles around the media industries is a major concern for any new player in the marketplace.

This is far from being the only protectionist measure with which console manufacturers – Microsoft included – must contend. The second thing that’s notable about the narrative is that Microsoft is to launch the Xbox One in China not by itself, but in partnership with a local company, BesTV. This is not because of any particular desire to tap into local knowledge and experience, but rather because of legal requirement; doing business in China requires a local partner. Blizzard’s World of Warcraft, a rare foreign success story in the market, is presently operated in China by local firm NetEase, and as mentioned, Nintendo’s foray into the market also takes the form of a joint venture.

This naturally reduces both the profitability of any operation in China, since the overseas parent company simply receives a royalty payment rather than the full profits of its operations, and also reduces control over Chinese operations in a potentially frustrating manner. Blizzard notably ran into major difficulties with the launch of World of Warcraft expansion packs in China, with the nation’s censors objecting to large swathes of content; the launch of Wrath of the Lich King in particular seems to have been delayed far, far longer than the company would have wished as a consequence of switching Chinese partners (from The9 to NetEase) during the negotiation process with the authorities.

“None of this is to say that console success in China is impossible; merely that it is very, very unlikely”

Such problems are, of course, surmountable, especially if the pot of gold at the end of the rainbow is big enough. Certainly, there is some audience for consoles in China; grey imports from Hong Kong are openly sold in Chinese stores, albeit at pretty high prices which are only appealing to the most devoted of enthusiasts. However, Chinese gamers have mostly grown up without consoles and are used to mobiles and PCs as their gaming platforms, so the level of demand is questionable. Moreover, those platforms are where Chinese game developers publish their work, tailor-made for their own audience. Software in a market like this is chicken-and-egg; no console platform will succeed without software that appeals to the local audience, yet no local developer will work on a new platform without a decent installed base. Microsoft’s dollars could intervene to help, but that would require a very major financial commitment to a market in which success is a very, very slim possibility.

There is, of course, an appetite for content from overseas within China, which could help to drive uptake of consoles like the Xbox One. In this, however, the hand of China’s censors remains a serious issue. Although the Shanghai Free Trade Zone regulations finally permit the sale of consoles, they do not free platform holders and publishers from the onerous requirement of passing their software under the watchful eye of the censorious authorities before release. In the past, the changes to software demanded by those authorities have been very significant; even small graphical elements which are seen as running counter to traditional Chinese culture in some manner are forbidden in many cases (although they pass without mention in locally developed software), while any game with an overtly political message will simply never be released. You may not think that terribly many games have an overtly political message, but then again, you’re (presumably) not a member of any of China’s censorship authorities, who have a penchant for seeing threats to the nation’s civil order around every corner.

None of this is to say that console success in China is impossible; merely that it is very, very unlikely. I haven’t even mentioned the issue of piracy, which remains rampant in the country, and means that many game consumers have become accustomed to paying incredibly low prices for software, while games companies have largely switched to business models like subscriptions and F2P for their wares. This is just another problem sitting in Microsoft’s way; adding pricing and business model to a list which already contains major cultural, legal and censorship hurdles.

It’s easy to see, I think, why Microsoft is alone in taking advantage of the newly liberalised Shanghai Free Trade Zone; why Sony is holding back from further engagement with the nation (although it does a fine trade in Hong Kong) while Nintendo is keeping its engagement low-level through its existing iQue partnership. Both firms actually have major business interests in China; like Microsoft, they manufacture their consoles there. Yet neither is keen to throw good money after bad in the hostile and difficult Chinese market. No doubt, they will watch Microsoft’s experiment carefully – they would be foolish not to – but nobody should hold out serious hope for consoles in China. There are new markets to be tapped all around the world for videogames and consoles, but for all its growing wealth and success, China is about as far from being low-hanging fruit as you can imagine.

Courtesy-GI.biz

Is Virtual Reality Here To Stay?

April 30, 2014 by Michael  
Filed under Gaming

Last week, Virtuix announced a $3 million round of seed funding to complete its flagship product, the Omni virtual reality treadmill. While a far cry from Facebook’s $2 billion acquisition of Oculus, the Virtuix investment is yet another indication that investors believe in the potential of virtual reality.

Speaking with GamesIndustry International after the funding was announced, Virtuix CEO Jan Goetgeluk stopped short of crediting the Facebook deal with drumming up investor interest, but nevertheless called it an exciting endorsement for the entire VR field.

“Haptics are fairly complicated; it’s very difficult to make it work in a way that’s affordable for consumers and accessible for a mass market.”

“It certainly validated the message that we’ve been presenting to investors when fundraising, which is that VR is set to become a mass market new medium, with applications that stretch way beyond gaming,” Goetgeluk said. “Social activites, health care, fitness, you name it…VR is not set to stay a niche; it’s set to be a mainstream platform.”

Facebook isn’t the only company trying to turn VR into a mainstream platform. Last month’s Game Developers Conference was a coming out party for a number of VR headsets, including Sony’s Project Morpheus.

“I think investors now believe and see that given all these headsets coming to market, and given how compelling the experience is–not just for the headsets but the Omni–the bottom line is it’s an excellent experience, and it’s here to stay,” Goetgeluk said. “It’s not a fad. It’s not just a fun thing to try out. It’s an incredible experience and a new medium that will impact various aspects of our daily lives. And investors that tried the experience were convinced, and that’s why they invested.”

Even with the rush of companies looking to stake their claim in the VR field, the preponderance of activity seems to be in the headset market, with fewer companies looking to tackle the haptic part of the VR equation. Goetgeluk suggested two main reasons for that.

“One, the visual aspect of VR is certainly a crucial part,” he said. “If there’s no visual element of the VR system, then there’s no virtual reality at all. It’s also a problem that is easier to solve than haptics. Haptics are fairly complicated; it’s very difficult to make it work in a way that’s affordable for consumers and accessible for a mass market. The visual problem is an easier nut to crack, and certainly with immediate applications.”

Of course, the Omni only addresses one element of that haptic problem. But when asked if Virtuix had plans to tackle other elements to complete the illusion of VR for players, Goetgeluk said the company had more pressing concerns in simply getting Omni to market.

“That’s our focus right now; we don’t have the resources to do much beyond that at this point,” Goetgeluk said, adding, “The pressure is on to deliver a top quality product in a timely manner.”

The Omni is set for a release this summer, which poses a potential problem. Virtuix is creating a $500 VR peripheral that is largely reliant on the user having a VR headset as well, but the two biggest names in the field, Sony and Oculus, have yet to even announce commercial release windows for their VR headsets. The idea of being a product “ahead of its time” doesn’t really bother Goetgeluk.

“In tech, you’re either early or you’re late. So we’re certainly early, but that’s not necessarily a bad place to be,” he said.

Given Virtuix’s production capacities, showing up to the party early might not be the worst course of action. Virtuix has already sold 3,000 Omni treadmills, and new preorders placed through the company’s site aren’t estimated to ship until September. The company might not mind arriving a little earlier than the VR headsets, but it definitely needs them to arrive.

“We’re a VR product and if VR doesn’t take off, then we’ll stay a niche product, and that’s not the intention.”

“We’re a VR product and if VR doesn’t take off, then we’ll stay a niche product, and that’s not the intention,” Goetgeluk said. “I think VR is an incredible experience, the technology is here, and I think VR is here to stay this time.”

That’s not the only potential concern critics of the Omni may have. When asked about the difficulty for players to find room to keep a VR treadmill next to their PCs, Goetgeluk said he expects people to be surprised by the final production version of the Omni. The company has made a number of changes to the hardware from what they’ve been carting along to trade shows.

“That’s our prototype, which is made of wood and certainly looks a bit big and clunky,” Goetgeluk said. “The final product will be a tad smaller and certainly sleeker looking, smaller than a regular treadmill, and also easy to disassemble and store away. It’s not a small product, but I don’t think size is necessarily an issue.”

Additionally, Goetgeluk brushed aside concerns about developer support for the device. It acts as a plug-and-play substitute for a gamepad or keyboard, and developers who choose to actively support the Omni can access more advanced features, such as mapping travel speed in the game with the player’s speed on the Omni, or to decouple the walking direction from the looking direction. Virtuix is also creating its own demo, TRAVR, to showcase how the Omni could be integrated with traditional first-person shooter and horror games.

Finally, Virtuix needs to figure out how to get people to experience gaming with Omni first-hand. Appearances at trade shows have been a good first step and one Virtuix will continue pursuing, but the company is also considering placing Omni demos in certain retail stores or malls.

“We certainly want to make it as feasible as possible for people to try out, because it’s a device where when you try it, that’s when you realize its potential,” Goetgeluk said.

Courtesy-GI.biz

Should Shareholders Come Before Gamers?

April 23, 2014 by Michael  
Filed under Gaming

Oddworld creator Lorne Lanning has never played well with big corporations. In 2005, following a particularly vicious quarrel with Electronic Arts, his studio Oddworld Inhabitants seemed all but dead, taking the beloved franchise with it. Now it’s back, and barrelling towards a bright new future. At GDC earlier this year, Lanning was keen to explain to GamesIndustry International his new approach to the business – and why he trusts major publishers less than ever.

“I don’t want to be a slave to the big ships, and that’s what was happening with AAA, with publishing and with game devs,” he explained. “Every game dev that I know that’s still doing AAA retail products is trying to figure out a way to get out of it.

“Those deals are just getting worse and worse, even though your expectation of the money is getting higher and higher. Labour’s getting more expensive and the rewards are getting smaller. So that’s why we decided to stop playing for a while until we could start getting our games up digitally, see if we could build our own business. It’s working, it’s funding new content.”

The success of HD re-releases of Stranger’s Wrath and Munch’s Oddysee has provided the resources to create a full remake of the original Abe’s Oddysee, titled Abe’s Oddysee: New ‘N’ Tasty. Lanning hopes that the sales of this latest offering will, in turn, open up further new opportunities. Ultimately the goal is to get Oddworld Inhabitants to a place where it can create a new AAA IP totally independently.

“We’re spending cold cash on this, a couple of million. Not a public company partner. Ourselves. If we lose, we lose big. But if we can get it to that next level where we’re spending five or six million on content, we can do a new IP,” he said.

“It’s not money we’re sticking in our pockets, it’s money we’re leaving in the bank to fund new stuff”

It’s the sort of money he doesn’t think could be raised through crowd-funding – he’s dismissed suggestions that he should run an Oddworld Kickstarter. He’s determined to live up to the “AAA expectations” of Oddworld, and he’s confident that with a cycle of game releases followed by re-investment in the business, they’ll get the funds they need.

“I do think success in the product can raise that money. It’s not money we’re sticking in our pockets, it’s money we’re leaving in the bank to fund new stuff,” he explained. “It’d be nice to be getting paid again! [laughs] That hasn’t been happening for me. It’s all going into the product.”

For Lanning, going independent doesn’t mean going it alone. None of Oddworld Inhabitants’ progress so far would have been possible without their partnership with Just Add Water. The small, Yorkshire-based company has been responsible for the development of all three remakes, with Oddworld Inhabitants taking on a supervisory role and handling publishing. Now Lanning is working with a second studio, mobile developer Square One, who will be producing a port of Stranger’s Wrath to iOS and Android devices.

“What’s nice, working with other indie guys, is that they believe that quality is going to be their lifeline,” he said of his partner studios. “These guys are like, ‘if we’re going to succeed it’s because we build really superb quality products’.”

The indie community as a whole is something he’s keen to embrace. He spoke enthusiastically about cross-promotion plans with developers 17-BIT (Skulls Of The Shogun, Galak-Z: The Dimensional) and Switchblade Monkeys (Secret Ponchos), pointing to an almost union-like spirit of mutual co-operation and support among independent studios. The sort of interactions, he pointed out, that are impossible for studios hitched to major publishers. Among indies, he says, it’s not about competition.

“It’s funny, because people ask me, for New ‘N’ Tasty, ‘who do you see as your competition out there, what titles?’,” he said. “It’s interesting, because if you’d have asked me that for an Xbox release it would be a very specific answer and I’d be trying to convince you why we’re a better offer for your money. But we’re not looking at it that way anymore. We’re looking at it like if you like this type of game, and there’s another type of game like this, we want to be recommending it to you!”

Of course, Lanning’s glowing positivity about the indie community is always framed as a contrast with his misgivings about the past and current actions of major publishers. He pointed to Battlefield 4 as an example of how wrong he feels the developer-publisher relationship can go.

“Why did a title that was so incredible ship prematurely?” he asked. “Now I know, without talking to anyone, if you look at the quality of that title, and if you know how games are built, you know how much hard work went into that, you know how much love and pain and sleepless nights the developers put into it. And you know they were devastated when someone made the decision to release that project before it was ready. Because they’re smart enough not to do that.”

He speaks from personal experience too; the original release of Abe’s Oddysee was criticised for its buggy state, and Lanning places the blame firmly on now-defunct publisher GT Interactive.

“A gold master with all the bugs fixed was in Fed-Ex while someone else made the decision to release a buggy game, because they’re in the sales department and they thought ‘Hey that’s enough time, I don’t need to wait til tomorrow, it’s good enough’,” he recalled. “And then you get stung by the hardcore gamers asking ‘why did you f**k this game up?’. I know what a heartbreak that is.”

In his eyes, it’s the need to impress shareholders taking priority over the need to satisfy customers. “When shareholders are more important than the customers, how long is your business really going to last?” he asks.

Lanning points to the level of trust and transparency indie developers have with their audience, and the more direct relationship that creates. It’s already affecting the way Oddworld Inhabitants do business in a significant way – following the re-release of Munch’s Oddysee, the company polled their audience as to what title they’d like to see developed next. Abe’s Oddysee: New ‘N’ Tasty was the winner. “When creators can go directly to the audience it’s a much better existence,” said Lanning.

“Trust is the most endangered commodity, it’s the rarest commodity today,” he pointed out, referring to the lack of trust consumers have in large businesses. Indie developers, he believes, are in a unique position to gain that customer trust, but it takes a leap of faith. It means being honest even when you don’t know that things are going to go your way.

“You’ve got to answer their questions in a sincere way, even if it’s not what they want to hear. You have to say ‘you know what? You’re right, we f****d up like this or we f****d up like that, but this is where we’re at, this is why we’re doing it, this is what we’re trying to achieve,” he explains.

For Lanning, however, the benefits are absolutely worth the risk. It’s that direct relationship with the fans that has allowed Oddworld Inhabitants to revive itself in the way it has, and will allow it to continue moving forward. Without the resources behind them to do large-scale marketing, they’re relying on word-of-mouth to sell units.

As ever, Lanning is supremely confident, convinced that the fans will come through for him. So far, they have, with the two remakes to date generating impressive figures. Strikingly, Stranger’s Wrath HD has actually out-sold the original, perhaps finally vindicating Lanning’s claims that he was failed by publisher EA’s marketing department when it was first released. He’s enthusiastic about the future, talking excitedly about potential future projects, even mentioning in passing developing something for VR devices.

He’s also convinced he knows where the industry is headed.

“High-end AAA isn’t going away, but within 5 years, I think what we’re going to see is high-end AAAs competing against indies. The indies will be rising up,” he predicted. “More and more sales will be digital and the retailers are going to have a harder and harder time. Some more retail businesses will go out.

Courtesy-GI.biz

Can Micro-Consoles Compete With True Gaming Consoles?

April 15, 2014 by Michael  
Filed under Gaming

With Amazon’s Fire TV device the first out the door, the second wave of microconsoles has just kicked off. Amazon’s device will be joined in reasonably short order by one from Google, with an app-capable update of the Apple TV device also likely in the works. Who else will join the party is unclear; Sony’s Vita TV, quietly soft-launched in Japan last year, remains a potentially fascinating contender if it had the right messaging and services behind it, but for now it’s out of the race. One thing seems certain, though; at least this time we’re actually going to have a party.

“Second wave”, you see, rather implies the existence of a first wave of microconsoles, but last time out the party was disappointing, to say the least. In fact, if you missed the first wave, don’t feel too bad; you’re in good company. Despite enthusiasm, Kickstarter dollars and lofty predictions, the first wave of microconsole devices tanked. Ouya, Gamestick and their ilk just turned out to be something few people actually wanted or needed. Somewhat dodgy controllers and weak selections of a sub-set of Android’s game library merely compounded the basic problem – they weren’t sufficiently cheap or appealing compared to the consoles reaching their end-of-life and armed with a vast back catalogue of excellent, cheap AAA software.

“The second wave microconsoles will enjoy all the advantages their predecessors did not. They’ll be backed by significant money, marketing and development effort, and will have a major presence at retail”

That was always the reality which deflated the most puffed-up “microconsoles will kill consoles” argument; the last wave of microconsoles sucked compared to consoles, not just for the core AAA gamer but for just about everyone else as well. Their hardware was poor, their controllers uncomfortable, their software libraries anaemic and their much-vaunted cost savings resulting from mobile game pricing rather than console game pricing tended to ignore the actual behaviour of non-core console gamers – who rarely buy day-one software and as a result get remarkably good value for money from their console gaming experiences. Comparing mobile game pricing or F2P models to $60 console games is a pretty dishonest exercise if you know perfectly well that most of the consumers you’re targeting wouldn’t dream of spending $60 on a console game, and never have to.

Why is the second wave of microconsoles going to be different? Three words: Amazon, Google, Apple. Perhaps Sony; perhaps even Samsung or Microsoft, if the wind blows the right direction for those firms (a Samsung microconsole, sold separately and also bundled into the firm’s TVs, as Sony will probably do with Vita TV in future Bravia televisions, would make particular sense). Every major player in the tech industry has a keen interest in controlling the channel through which media is consumed in the living room. Just as Sony and Microsoft originally entered the games business with a “trojan horse” strategy for controlling living rooms, Amazon and Google now recognise games as being a useful way to pursue the same objective. Thus, unlike the plucky but poorly conceived efforts of the small companies who launched the first wave of microconsoles, the second wave is backed by the most powerful tech giants in the world, whose titanic struggle with each other for control of the means of media distribution means their devices will have enormous backing.

To that end, Amazon has created its own game studios, focusing their efforts on the elusive mid-range between casual mobile games and core console games. Other microconsole vendors may take a different approach, creating schemes to appeal to third-party developers rather than building in-house studios (Apple, at least, is almost guaranteed to go down this path; Google could yet surprise us by pursuing in-house development for key exclusive titles). Either way, the investment in software will come. The second wave of microconsoles will not be “boxes that let you play phone games on your TV”; at least not entirely. Rather, they will enjoy dedicated software support from companies who understand that a hit exclusive game would be a powerful way to drive installed base and usage.

Moreover, this wave of microconsoles will enjoy significant retail support. Fire TV’s edge is obvious; Amazon is the world’s largest and most successful online retailer, and it will give Fire TV prime billing on its various sites. The power of being promoted strongly by Amazon is not to be underestimated. Kindle Fire devices may still be eclipsed by the astonishing strength of the iPad in the tablet market, but they’re effectively the only non-iPad devices in the running, in sales terms, largely because Amazon has thrown its weight as a retailer behind them. Apple, meanwhile, is no laggard at retail, operating a network of the world’s most profitable stores to sell its own goods, while Google, although the runt of the litter in this regard, has done a solid job of balancing direct sales of its Nexus handsets with carrier and retail sales, work which it could bring to bear effectively on a microconsole offering.

In short, the second wave microconsoles will enjoy all the advantages their predecessors did not. They’ll be backed by significant money, marketing and development effort, and will have a major presence at retail. Moreover, they’ll be “trojan horse” devices in more ways than one, since their primary purpose will be as media devices, streaming content from Amazon, Google Play, iTunes, Hulu, Netflix and so on, while also serving as solid gaming devices in their own right. Here, then, is the convergence that microconsole advocates (and the rather less credible advocates of Smart TV) have been predicting all along; a tiny box that will stream all your media off the network and also build in enough gaming capability to satisfy the mainstream of consumers. Between the microconsole under the TV and the phone in your pocket, that’s gaming all sewn up, they reckon; just as a smartphone camera is good enough for almost everyone, leaving digital SLRs and their ilk to the devoted hobbyist, the professional and the poseur, a microconsole and a smartphone will be more than enough gaming for almost everyone, leaving dedicated consoles and gaming PCs to a commercially irrelevant hardcore fringe.

There are, I think, two problems with that assessment. The first is the notion that the “hardcore fringe” who will use dedicated gaming hardware is small enough to be commercially irrelevant; I’ve pointed out before that the strong growth of a new casual gaming market does not have to come at the cost of growth in the core market, and may even support it by providing a new stream of interested consumers. This is not a zero-sum game, and will not be a zero-sum game until we reach a point where there are no more non-gaming consumers out there to introduce to our medium. Microconsoles might do very well and still cause not the slightest headache to PlayStation, Xbox or Steam.

The second problem with the assessment is a problem with the microconsoles themselves – a problem which the Fire TV suffers from very seriously, and which will likely be replicated by subsequent devices. The problem is control.

Games are an interactive experience. Having a box which can run graphically intensive games is only one side of the equation – it is, arguably, the less important side of the equation. The other side is the controller, the device through which the player interacts with the game world. The most powerful graphics hardware in the world would be meaningless without some enjoyable, comfortable, well-designed method of interaction for players; and out of the box, Fire TV doesn’t have that.

Sure, you can control games (some of them, anyway) with the default remote control, but that’s going to be a terrible experience. I’m reminded of terribly earnest people ten years ago trying to convince me that you could have fun controlling complex games on pre-smartphone phones, or on TV remote controls linked up to cable boxes; valiant efforts ultimately doomed not only by a non-existent business ecosystem but by a terrible, terrible user experience. Smartphones heralded a gaming revolution not just because of the App Store ecosystem, but because it turned out that a sensitive multi-touch screen isn’t a bad way of controlling quite a lot of games. It still doesn’t work for many types of game; a lot of traditional game genres are designed around control mechanisms that simply can’t be shoehorned onto a smartphone. By and large, though, developers have come to grips with the possibilities and limitations of the touchscreen as a controller, and are making some solid, fun experiences with it.

With Fire TV, and I expect with whatever offering Google and Apple end up making, the controller is an afterthought – both figuratively and literally. You have to buy it separately, which keeps down the cost of the basic box but makes it highly unlikely that the average purchaser will be able to have a good game experience on the device. The controller itself doesn’t look great, which doesn’t help much, but simply being bundled with the box would make a bold statement about Fire TV’s gaming ambitions. As it is, this is not a gaming device. It’s a device that can play games if you buy an add-on; the notion that a box is a “gaming device” just because its internal chips can process game software, even if it doesn’t have the external hardware required to adequately control the experience, is the kind of notion only held by people who don’t play or understand games.

This is the Achilles’ Heel of the second generation of microconsoles. They offer a great deal – the backing of the tech giants, potentially huge investment and enormous retail presence. They could, with the right wind in their sales, help to bring “sofa gaming” to the same immense, casual audience that presently enjoys “pocket gaming”. Yet the giant unsolved question remains; how will these games be controlled? A Fire TV owner, a potential casual gamer, who tries to play a game using his remote control and finds the experience frustrating and unpleasant won’t go off and buy a controller to make things better; he’ll shrug and return to the Hulu app, dismissing the Games panel of the device as being a pointless irrelevance.

The answer doesn’t have to be “bundle a joypad”. Perhaps it’ll be “tether to a smartphone”, a decision which would demand a whole new approach to interaction design (which would be rather exciting, actually). Perhaps a simple Wiimote style wand could double as a remote control and a great motion controller or pointer. Perhaps (though I acknowledge this as deeply unlikely) a motion sensor like a “Kinect Lite” could be the solution. Many compelling approaches exist which deserve to be tried out; but one thing is absolutely certain. While the second generation of microconsoles are going to do very well in sales terms, they will primarily be bought as media streaming boxes – and will never be an important games platform until the question of control gets a good answer.

Courtesy-GI.biz

Should Game Publishing Depend On Sales?

April 14, 2014 by Michael  
Filed under Gaming

“Grey Goo is remarkable not for what it has added to the RTS formula, but what it has stripped away,” PC Gamer wrote in its reveal of Grey Goo, a new real-time strategy game from the veterans at Petroglyph. Perhaps the same could be said of Grey Goo’s recently formed publisher Grey Box, which is seeking to strip away the more negative aspects of game publishing. Suits and creatives typically will bump heads because the two sides are looking at the creation of games from wildly different perspectives. But what if they actually had the same goals?

Ted Morris, executive producer at Petroglyph, felt an immediate kinship with the team at Grey Box. “As a small [studio] – small being 50, 60 people – we are always talking to publishers to see what deals we can put together. But with Grey Box, I think that we meshed better on a personal level with them as a company and as a group of people than we have ever meshed with another group,” he enthused to GamesIndustry International during GDC. “And we’ve worked with Sega and LucasArts – all the big guys – and certainly talked to everybody else, too – the EAs and everybody – and these guys – man, we just gelled with these guys so well.”

Morris said that Grey Box’s approach to publishing was noticeably different from the start. While other, larger publishers may immediately come up with marketing plans and sales targets, Grey Box found itself on the same page with Petroglyph: fun comes first.

“Every meeting that we have is always a sit down and then people open up financial books and they start talking about what the sales figures are going to be like, and when we sit down with [Grey Box], it’s like ‘how can we make a great game?’ We don’t even talk about money, we talk about ‘how good can we make this game?’ and ‘how successful will it be?’ You know, let the game drive the sales, don’t let the marketing drive the sales, don’t let the sales department drive the sales. It’s really about, if you make a great game, they will come,” Morris continued. “They spoke to that so often, so frequently that we thought, ‘man, these guys just want to help us focus on what’s really important.’”

One of the defining traits for publisher Grey Box is that they’re all gamers at heart, noted Josh Maida, executive producer for the publisher.

“I’m not going to pre-judge any of those other publishers – I mean, for all I know they love games as much as we do. And we do. We all love games. We all come from different areas. I lost a whole grade point in college to Street Fighter, and… we want to be fiscally mindful. You need to make money, but with the money we make, we want to make more games,” he remarked.

“So I think at the core of that is we’re not trying to take away from the industry. We want it to feed itself and go bigger. Quality over quantity is something that we’re mindful of. We also just want to make a good working relationship for our partners… everybody’s in here for fulfillment. The talent we work with, they could all be working in private industries for twice the amount they do, but they’re here because they love to make games, and so we want to be mindful of that. And when people die, they want to know they did great things and so we want to create those opportunities for people.”

Tony Medrano, creative director for Grey Box, criticized other publishers for being too quick to just follow another company’s successful formula.

“We’re not chasing a trend, we’re chasing something we believe in, we’re chasing something we like, and we’re not trying to shoehorn a formula or monetization model onto things that just don’t work because they’re popular,” he added. “I think from the get-go, it’s been all about how can we make the best game, and then everything else follows from that. I think a difference structurally [with other publishers] would be that we have a very lean and mean team. We’re not trying to build a skyscraper and have redundant folks. Everybody that’s here really cares, has some bags under their eyes from late nights… I think it is just that we look at all our partners as actual partners. We let them influence and make the product better, whether it’s the IP or the game.”

Speaking of monetization models, Maida commented that there’s no “secret agenda to Zyngafy RTS or anything.” Grey Goo is strictly being made for the PC, but the RTS genre easily lends itself to free-to-play. Upon the mere mention of free-to-play, however, you could almost feel the collective blood pressure in the room rising. It’s clearly not the type of experience that Petroglyph and Grey Box are aiming for.

For Petroglyph’s Morris, in particular, free-to-play hit a nerve. “I’m going to jump in here, sorry. I’m really annoyed!” he began. “There’s been such a gold rush for free-to-play right now that is driving publishers – I mean, there needs to be a good balance. There’s a great place for free-to-play – I play lots of free-to-play games – but it is driving developers like us to focus on money instead of making great game content. I’m not going to name any examples, but I’ve been disappointed with some of the free-to-play offerings because it’s not so much about making a great experience for the player anymore. It’s about ‘how can we squeeze them just a little bit more?’ or annoy them to the point where they just feel like they have to pay.”

Medrano added, “I get frustrated when I play free-to-play games, and if I purchase something, I feel dirty. I feel like ‘oh, I got cheated, I fell for the trap.’ Or even more modern games where they baby you through the whole thing. There’s no more of that, like, ‘this is tough, so that means if I get good at this, there’s reward – there’s something there.’”

Ultimately, while Petroglyph and Grey Box came together thanks to a shared love of the RTS genre, they feel there’s a real opportunity to bring back hardcore, intelligent games.

Andrew Zoboki, lead game designer at Petroglyph, chimed in, “It’s almost as if the industry has forgotten about the intelligent gamer. They feel like that everyone’s going to be shoehorned in there, and I would say even from a design perspective that a lot of design formulas for a lot of things, whether they be free-to-play or what the mainstream is going to, next-gen and such, that all those titles are kind of a little more cookie-cutter than they probably should be. They’ve tried to shoehorn gamers into a formula and say, ‘this is what a gamer is,’ rather than understanding that gamers are a very wide and diverse bunch of individuals, everyone from the sports jock to the highly intellectual, and they all have [different] tastes… there’s different games that will appeal to different demographics… if you make the games that players want to play, they will come.”

And that really is at the heart of it. Morris lamented how business creeps into the games creation equation far too often. “They’re trying to balance the game with Excel spreadsheets instead of sitting down and actually playing it and having focus tests and bringing people in and actually trying to iterate on the fun,” he remarked about other publishers.

For Grey Box at the moment, the focus is on making Grey Goo the best it can be, but the company does have plans for more IP. It’s all under wraps currently, however.

“We do have a roadmap, but it’s not based off of the calendar year. We do have another game in the works right now and we might announce that at E3. And we have a road map for this IP, as well,” Maida said. “Obviously we want to get it in the hands of players and fans to see what they respond to, but we’ve got capital investment in the IP with hopes to not only extend this lineage of RTS’s but possibly grow out that franchise and other genres as well.”

Grey Box plans to release Grey Goo later this year.

Courtesy-GI.biz