Gatt9 wrote...
bEVEsthda wrote...
Conduit0 wrote...
The problem is the gaming market has reached saturation, which means continued growth of the market will be far too slow to keep up with rising development costs.
It depends. Because I and many others think there's an excellent growth potential for entertainment software, "games". But the market for the the very formulaic,childish, consolish, bash the baddies, pick up the 'jewels', watch the movie, whittle down the 'Boss' -drivel which the industry leaders and their game-design consultants have converged all game-genres to, is probably totally saturated. Yes!
A small indicator that I'm not totally off here, is the sales figures of a recent, independent, lowbudget game called 'Minecraft'.
I also still remember how many new gamers, often women, often adults, were drawn into videogaming by games like Simcity, adventure games, roleplay games, The Sims. Once upon a time different genres of games. Now either not done anymore, despite good sales, or changed to the same consolish crap.
You're right. Gaming has alot of headroom to increase sales. You're also 100% correct that the problem is that Publishers believe the only type of Gamer that exists is the one who wants to play shooters. The true market size is substantially larger than what we currently see, but because Publishers chasing blockbusters have condensed the market down to Shooter and Action-Adventure, a very significant portion of the market goes unserved.
We can see this clearly evidenced by Minecraft, and by Kickstarter. Minecraft is a game Publishers claim cannot sell, because it's not a Shooter, not Action-Adventure, and doesn't have DLC. According to Publishers the following games can't possibly sell to anyone...
-Wasteland 2 (TB RPG)
-Project Eternity (Inifity Engine RPG)
-Planetary Annihilation (RTS)
-Dead State (TB RPG)
-Faster than Light (Rogue like RPG)
-Predestination (MOO2 clone)
-Plus any number of Minecraft-esque games like Castle Story and space sims
Further, all of those games are funded at levels Publishers claim is impossible, which directly disproves AlanC9's assertion that "Games cost more to make", as does Paradox Interactive's business model. Games can be made at many different budget points. Publishers inflate the budget by an enourmous factor, and this can easily be seen by reading the credits of any given game and counting the number of people who have nothing to do with development who are credited.
There's plenty of Gamers out there, far more than what we're currently servicing. There's enourmous room for growth that's being hamstrung by Publishers who have absolutely no business sense and are just chasing last year's blockbuster.
Quite honestly, micro transactions are just hastening the inevitable. Companies like EA are using them to try and hide the fact that they don't have any idea how to service their market, and their customer base is shrinking by very significant amounts.
It's like the housing bubble. Banks sold debt to each other shifting it around to hide the losses until they got to be so huge they couldn't hide them anymore. Companies like EA use DLC to hide the losses, and as they increase how necessary they are to play a game they alienate more people causing them to lose more customers. Eventually, they'll hit a point of unsustainability (Will occur in 2014). You can actually see this coming just by looking at EA's most recent financial. They reported 50 million in losses, but if you factor out BF3's DLC, it's likely somewhere between 150 million and 200 million in losses for the quarter as IIRC they delayed reporting BF3's DLC revenue.
What they need to do is start serving the whole market instead of a tiny portion of it, instead, they'll continue to try and force revenue initiatives like micro transactions on everyone.
Kickstarter sadly has not proven anything yet, because most of the projects funded on it are speculative at best, and promising a product in the future. The numbers for kickstarter projects like Wasteland 2, Project Eternity, Shadowrun, and so forth are also very miniscule in comparison to the general audience.
The caveat for them is that they don't need to be big-scale, so they have their niche space to grow in. But at the same time, the Kickstarter projects are also competing against each other more than anything else, which is making the indie market saturated with both good and bad games. Ironically, your last line is what these kickstarters are not doing, as they are serving a tiny portion of the market for their own financial gain. There is even no guarentee they will all be successfull or on the up and up, if you will. They may have been funded yes, but that doesn't determine quality of the product. If anything Kickstarter is on the verge of a bursted bubble.
Minecraft is also a special case, because they are more like Rovio only with actual game ideas coming out. They hit it big with one thing, expanded it, and are now trying to diversify. The question is maintaining versus being successful, and if Mojang can't maintain, they will fail or at the very least, decrease production.
EA is also a different beast financially. Yes, they can recoup losses by using DLC, but the DLC is now built into the fiscal plan of the company, and its also a sector that is on the rise in making revenue and profit for Electronic Arts, since they are pulling a Valve and opting for the gaming as a service model. So instead of "hiding losses" like you claim, DLC and their smaller, downloadable titles are built-into the reports, meaning they are tracked and measured like everything else.
So for the
recent Q3 report, ,their biggest failing was Medal off Honor utterly failing to meet expectations, while Battlefield 3 and FIFA carried the banner through both game sales, and DLC figures. Warfighter failed on both fronts for the company, and is one of the cited reasons for the $45 million net loss. However, comparing it to last year, which was a $205 million net loss, that is still an improvement. EA is admittingly playing it conservative right now because were on the verge of a console change, so that is also factoring into their numbers and sales forecast, not to mention the over $80 million spent on speculative technology, meaning new game consoles and engines.
Basically, your analysis is correct, but only on the wrong company. EA is perhaps one of the more diversified publishers out there, along the lines of Ubisoft, Valve and the growing presence of Koch and Sega, after the THQ sale. They had high sales in downloadables and social media games, iPhone titles and the like, which all cater to their "gaming as a service" model that is emulating Valve at the moment. If you want to talk about a company that is focusing on being hit driven, and is hiding the numbers through DLC, look at Activision as the poster boy.
Modifié par LinksOcarina, 04 février 2013 - 08:46 .