Global Game Industry News Blog

Thursday, June 21, 2007

India, Consoles, and a Global Culture of Gamers

The trouble with being a PhD student is that sometimes you see too many connections with stuff that is going on. But then again, perhaps that is what we're supposed to do. Take a whole lot of stuff and bring it together.

I'll start off with India. While I agree that India is ripe for the picking for console developers, I don't really think that the market is going to be very big for a while yet. There are several reasons. One of course is that the contender that actually has the best shot at growing the Indian console market (Nintendo) is at least thus far ignoring the market.

The 360 meets the need of hardcore gamers. The PS3 is astronomically expensive except for the uber wealthy, and no one in India is developing any games for that platform. The 360 on the other hand has XNA Express, which Indian developers are extremely excited about. If you need some indicator of this, I recommend the India IGDA forums.

What does a PS3 offer Indian gamers at this point? I'm just not certain.

The other aspect of this is that mobile gaming is huge in India, and yet again Nintendo has completely ignored India with the DS or even GBA.

So while "demand might be picking up," I read these reports and kind of squint my eyes and think skeptical thoughts. Not because I think they're wrong, but I think they're actually being used to encourage growth. They're putting the cart before the buggy if you will.

In the mean time, you have Indiagames who has largely ported games to the numerous mobile devices, and was recently bought up by a large multinational suddenly interested in games for other parts of the world? That's probably because they have more than handhelds there. The multinational is looking for more money, and they're NOT seeing it in India for the moment.

I think of course they're also trying to get their own developers exposed to making games, because for the most part they've been doing more porting of games than creating original IP. They know they must cut their teeth on some titles first.

Lastly, it is interesting that the Loco Roco developer talks about a Global Culture of Gamers, a sentiment I wholeheartedly agree with. However, for the moment that Global Culture is more Japanese/American than it is global.

I would love to see more Global content. I've actually encouraged many an Indian developer to do just that. Bring Indian content to the US, it is possible, it just has to be done the right way.

I also think its important to think not must multi-culturally or uni-culturally. That we can be both multicultural and super-cultural.

CKO

Gamasutra - India's Gaming Market to Reach $125m By 2010
A new report from analyst group iSuppli has said that India's gaming market is showing a "steeper curve" than recent years, forecasting that by 2010 the industry could reach $125 million, up from $13 million in 2006.

Despite the "steep price tag," the company aims to sell 10,000 units by the end of the year, and has thus far sold 1,200, previous to the forthcoming launch of a country-wide promotional campaign.

However, says the group, the PlayStation 3 will face a tough fight from the Xbox 360, which launched earlier in the year, and Microsoft has already "extensively marketed the video game console in the country"

That includes a specially localized title with Yuvraj Singh International Cricket 2007 (pictured), showing what the group calls "its commitment to customizing its titles for Indian tastes."

The group notes that the Xbox 360 is available for the equivalent of $600, a "major price differential compared to its competitor," and notes that "gaming consoles attract high duties, which lead to higher prices. Duties comprise approximately 35 percent of the product price in India, limiting video-game-consoles’ legal sales and promoting the gray market."

Despite the challenges, iSuppli says "the gaming console market is an indicator that demand is picking up for several electronics product segments that now are small in size. It also shows the interest by global electronics companies in tapping into the opportunities available in India."

Said iSuppli associate analyst Ashish Thakre, “The console gaming segment is not very sizeable in India. However, future growth expectations and consumerism are prompting companies to establish themselves in India."


GamesIndustry.biz - India Set for Console Boom

GameDaily - Indiagames Launches International Division
Indiagames today announced the launch of its international mobile publishing and development division. Called IG Fun LLC, this arm of the company will focus on the European and American markets. Indiagames looks to be among the top 5 mobile publishers in its operational territories.

"At IG Fun we operate under the simple idea that the Customer is King and aim to provide fun and exciting games," said Sean Malatesta, VP - Business Development, Indiagames and new CEO of IG Fun LLC. "Our main goals are to provide high quality games, the widest handset coverage and to support our titles with clutter breaking marketing and merchandising."

GayGamer.Net - Loco Roco Developer Speaks
In the interview, he calls for a "Global culture of gamers". A culture that supports games from across the ocean, instead of the nations divided where gamers are not willing to try a game from foreign lands.

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Friday, June 01, 2007

GameDeveloper Magazine and Gamasutra 3 Months Behind

At least I beat someone to the punch. Of course if a tree falls in the forest and no one is there to listen, does it make a sound? Apparently not for Gamasutra or GameDeveloper Magazine.

At least it is someone respected in the industry saying these things, but for the most part his punchline is one in the same with my own, "So, Sony? Nintendo? The time has come for you to feel the winds of change. It's your game to lose, and your princess is going to be in another castle if you don't choose wisely. It's time to open things up a bit."

Gamasutra - Opinion: Why Indies Can't Thrive On Consoles
Imagine the following unlikely scenario: the movie theaters of America are divided into three groups, each of which requires a different aspect ratio and delivery format for any movie showing in it. Perhaps the three different formats don’t actually encourage easy conversion between them.

Just think what a chilling effect that would have on some filmmakers who wanted a shot at showing their independent movies nationwide.
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The ham-fisted point I’m trying to make is that the same chilling effect is currently happening with downloadable games for consoles. While Microsoft has a clear outreach channel for independent games with Xbox Live Arcade, the company hasn’t been working with Sony or Nintendo to create standards so that those games are available to PlayStation 3 and Wii owners.
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It seems that Sony’s PlayStation 3 E-Distribution Initiative is keenly focused on first-party or second-party exclusives, such as Super Rub-A-Dub, fl0w, and Blast Factor, which take advantage of the PlayStation 3 hardware in some way. These are all fine titles, but they’re emblematic of a Sony-centric portfolio.
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Why isn’t that happening? I can only presume it’s because Sony has not set up a good mechanism for more loosely tied indies to easily and swiftly convert their games. Things are even worse in Nintendo’s corner, where retro titles are spouting out by the gallon, but new downloadable games are completely absent as of press time.
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Oddly, both Nintendo’s and Sony’s reluctance to come out swinging in this area seems to be down to insularity or issues relating to corporate control. Why not relax a little and give the consumer a bit more choice and make indie development much more viable along the way?


The Wii-volution will not be Televised: The XNA-cution of a Business Model
But we can now. All we have to do is sell our souls to Microsoft's C#, Windows Vista, and Direct X 10 API for this opportunity. All Microsoft gets out of it is an ability to disrupt the business model that has until recently kept them at the middle of the pack and gain the efforts of the hordes of developers itching to try their game development skills on a piece of next generation console hardware. Does it mean that they've given up control of distribution? Heck no. But there is a contest if you're interested.

So, Sony? Nintendo? The time has come for you to feel the winds of change. It's your game to lose, and your princess is going to be in another castle if you don't choose wisely. It's time to open things up a bit.

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Thursday, April 19, 2007

User Generated "CONTENT" (?)

So, there has been a whole lot going on recently about Game 3.0 (apparently Web 2.0 meets Video Games) (And it's really Game 1.0 = Games on Carts/CD's, Game 2.0 = Game 1.0 + Networking, Game 3.0 = Game 2.0 + User Content). As much as I am a fan of thinking about games as media, in particular because console video game systems dominate the game world so much, this isn't quite the same.

So, let's take YouTube for example. You have the ability (perhaps against other media corporations desires otherwise) to take their content and mash it your own way. Perhaps it's just a simple Anime + Music = AMV (Anime Music Video). Perhaps it's your own custom shot or computer generated material set to music. The point is that you have the ability to pull that content from somewhere else and put it at your disposal.

It's not quite the same for video games. It's especially not so much the same for video games. So, I'd like to remix that last Spidey level and redistribute on YouGame. ... ... Ummm... where do I start? Not quite the same.

Now, Little Big Planet "empowers" users by providing them with a world which they can do these things. But what if I want to change a basic mechanic to customize it a bit more? What if I want to make Little Big Nudie Planet? Not to sleight the guys making Little Big Planet, they're doing a phenomenal job, we just have to realize that it's not the same as YouTube.

This is also complicated by the fact that Web 2.0 is founded on a whole lot of things that Game 3.0 just hasn't done. Open API's, Open Protocols, things like XML, and a whole bunch of other things that really empowers users. In the case of console video games you have none of this foundational material.

In many ways I see XNA as having a greater YouTube potential, because though you end up having to do more work, as people develop tools and pieces, you'll see more (and more different) examples of this.

Nintendo and Sony (though Sony seems to be talking a lot) haven't really figured out that they're going to have to open up more than they have to really embrace this idea, and really, if they don't, MS is the one who is going to win.

What publishers are really worried about is:

Making the Social Connection: How Small Developers and Publishers Can Take On Game Industry Giants

But... Even these comments fail to really engage with the barriers of access to the technologies that really offer the most opportunity for companies to make money and build sustainable work environments.

Making the Social Connection: How Small Developers and Publishers Can Take On Game Industry Giants
According to the NPD Group, total computer and video game industry sales hit $13.5 billion in 2006, almost a 20 percent increase from the year before. The vast majority of those sales came from titles released by major publishers and distributors, not from smaller, independent developers. While we depend on the likes of EA and Ubisoft to deliver blockbusters like The Sims and Rainbow Six, we often don't recognize the importance of indie developers in fueling the creative engine of game design and production.
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Remaining independent means taking on all the costs of creating, producing, marketing and distributing a title. These costs are high, and a crowded marketplace makes it even more challenging for independent developers to make their presence known. In addition, many smaller firms are made up of just a few employees, whose skills skew toward programming or animation rather than sales or business development.
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Not necessarily. Since the late 1990s, some small companies have gone the direct route, selling their games online or making their titles open source as a means by which to generate a player base. For example, Positech Games, based in the U.K., was recently highlighted on the popular developers' forum GameDeveloper.net, for its claims to have reached the $100,000 mark purely through online sales.
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Social networking sites like MySpace and Facebook have transformed the way that independent filmmakers and musicians reach new audiences and sell their work. The next wave of social networking, a trend Sony Computer Entertainment calls "Game 3.0," will change the way independent game creators take their games to market.
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But these sites lack a crucial element – game developer participation. FairShare, a new technology my company announced at the Game Developers Conference (GDC) this year, is, amongst other things, designed to connect developers with players through game-related social networking. An engine that runs underneath gaming portals, FairShare lets players sample new games through a try-before-you-buy option. It offers incentives for players to share, recommend and give feedback on new games, and it gives developers a chance to sell games, gain visibility and build their reputations among the game aficionado community.

The Game 3.0 future for independent developers will be rooted in social networks, where developers can make their games available online, players can try, buy, share, and offer feedback on the games, and developers can respond, making changes or developing new titles based on that feedback.

Just as Facebook and Myspace make every participant an owner of his or her own content on the Web, a Game 3.0 style portal must provide a sense of ownership for both players and developers. For indies, the Game 3.0 trend opens new opportunities for connecting with gamers who want to buy their titles, as well as the chance to build communities with other developers and gamers.


Game publishers threatened by user-generated content
Got an idea for a video, a song, a podcast, a game? Make it, put it online, and people will find it. We all benefit from the mind-bogglingly wide variety of stuff to consume, and the competition increases quality for everyone. The dinosaurs who have become rich off outmoded means of production and distribution are quaking in terror. Some, like SCEA president Phil Harrison, are making attempts to adapt and thrive.

What Do Media Executives Fear?
User-generated content was named by 57 percent of respondents as one of the top three issues they face today. More that 70 percent believed that social media would continue to grow, while only 3 percent said they viewed social media as a fad.
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"Traditional, established content providers will have to adapt and develop new business and monetization models in order to keep revenue streams flowing. The key to success will be identifying new forms of content that can complement their traditional strengths."

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