Tuesday, 25 March 2014

Final Essay


Kinga Makowka
OUDF501
What influence publishers and businessmen have on the gaming industry. Did it turn from an entertainment industry purely into a money making machine?


The perception of gaming has changed a great deal in the past decade. The niche-market stereotype of male nerds and geeks playing video games in their basements has evolved to a much broader spectrum of markets. Now there are games targeted to consumers of all demographics – children, adults, boys, girls, strategy games for the intellectuals, sports games for the jocks, even balance-board exercise games marketed towards elderly women wishing to stay agile. An example of this is a Wii Fit Balance Board. ‘using Nintendo’s Wii Fit for training to improve clinical measures of balance in older adults and to retain the improvements after a period of time.’
 What was once considered ‘lame’ by the general populace in the Sega and Nintendo era, has now exploded in popularity as evidenced by metrics like convention attendance, advertising expenses, and most importantly – sales revenue. Though difficult to fully estimate, in 2011 the global video game market was valued to be roughly 65 billion in US dollars. ‘REVENUE FORECASTS FOR 2011. Size of global game market revenue:$65 billion, up from $62.7 billion in 2010.’ Many argue that for this reason, the gaming industry (sometimes referred to as the “interactive entertainment industry”) is no longer as pure as it once was. It is believed that once upon a time, those who played and produced games did so mainly for one underlying reason – the love of the game. Once discovered that it was capable of turning a great deal of profit, those wishing to make money off of it began to abuse it – and thus, the industry became convoluted. ‘ We gamers do not have any problem with DLC until it is done in a right way.’

In this essay I will be discussing what effect does this have on the gaming industry. Many people think that businessmen ruin it, that they shouldn’t be in charge of the industry they know nothing about, but if not businessmen then who? Gamers they say. “We put people who don’t know gaming in charge” “the type of person who knows how to make an awesome video game about fighting dragons with a giant chainsaw tends not to be the same type of person who is an expert in business and finances.”
They have got a point there, but it works both ways, it is not just about making a great game afterall. Because you need a great way to advertise it, and sell it well. “In 2009, EA executive Rich Hilleman indicated in a speech that his company ‘now typically spends two or three times as much on marketing and advertising as it does on developing a game.” And it is completely understandable why, it is because no matter how good a game is, it will never sell itself. We live in a world where most people do not have own opinion. ‘People do not know what they want until you give it to them.’ People that will buy what most of their friends own, what is advertised on tv. We live in a world where masses need to be kept on their toes, they need constant reminder and reassurance that they are waiting for something amazing. That is where transmedia comes into play. We play games inspired by books, that are then made into movies, cartoons. We cover our walls in our favourite game’s art work, wear clothes with our favourite logo’s purely to let other people know what we love. We even drink from cups with our favourite faces on while reading books that inspired our favourite game. It is a one big loop. A good example of this is Harry Potter, after the game came out they earned $427 million purely on the game, we are not counting other trinkets toys and figures. ‘Electronic Arts, which have sold a total of $427m in America.’ But nobody blames anyone, because it keeps people happy and excited and it makes the companies the much needed money. “ The leaked initial development contract for the game Destiny - $140 million” After All no matter what it is caled it is a one big investment, and like any other, when they invest huge lumps of money into something they do it so they can at least break even.

Gamemakers have been pushed beyond their limits to produce games that will please the masses. These days people are not excited about the little things anymore, they want more, more, more, bigger, better, faster. It is a kind of people you will never please. So what happens you have got to make a few sacrifices and a bit of extra effort. Games used to be different before, now even the simplest of shooters has a good storyline behind it, great weapons, armour, leveling up system, sort rewards schemes etc. People get bored of ordinary gaming. This means that they do not want to see something they have seen five thousand times before. ‘Nintendo in particular has fallen behind in the console ‘war’ because it has been slow to adapt to the needs of a global audience.’ It puts the producers in a very difficult place, lately they decide either remake the old games hoping people will buy it for sentimental reasons. Or they have to invest three times as much into it to come up with something completely new, this means using new technology and techniques to do it. ‘Gaming itself is expanding far beyond this single paradigm’, ‘making games… requires a lot of men and women working with expensive tools for years. And that’s before they are even marketed.’ Which means the end product, which will be something highly anticipated, but also will be a little more expensive than your average game. So clearly the investors need a guarantee they will get their money back. This is where a lot of DLC’s ( downloadable content) come into play. When you buy your AAA title you should expect the game to be incomplete, and the DLC to be available to buy but at a price. ‘Nowadays, though purchasing a full game after the release date is not an easy task: maybe the developer locked some in-game content in the pursuit of milking its own creation with absurd DLC.’ The original concept was to develop and add extra content for games after they have been released, to keep the audience engaged in the game. It became very popular and started being abused. The subject that raises most people’s blood pressure is the “Day one DLC’s” Developers remove content from their games on purpose and release it as a Day One DLC along the side of the original game. ‘Developers remove some content from their games and release it as Day One DLC which actually means to enjoy the full game now you will have to pay for the disc you buy and 10-15$ for the DLC. This practice brings loads of cash in developers’ bank account as franchise lovers who want to enjoy the complete experience offered by the game will go and pay for that DLC.’ But truth be told if masses would not buy it it would not carry on for a long time, we cannot complain about something we keep alive. With such high expectations people should not complain about having to pay a little extra. It is like a holiday. You can go camping and have a great time, or you can go to an all inclusive five star hotel in Italy and have a great time, both fun, different kind of fun but also comes with a different price tag. People have become accustomed to playing games for free, and it is increasingly difficult to capture paying gamers.’
There are free to play games out there. they are usually games on Facebook, Mobile apps, iPad apps. It is becoming a huge market there are 800,000+ iOS applications available in the App store. Is it worth spending a lot of time making a game to sell it for $1? Well let’s look at League of Legends. It is a free to play game and in 2013 the revenues topped $600 million. The way those kind of games make money is off the little things. If you want extra ‘in game’ money you have to pay for them, pay for better weapons and armour. Pay to unlock extra levels. Pay to progress faster in free plays. Usually people that play free to play games spend more money on it than if they were to buy your average AAA title game off the shelf. ‘A “free to play” model, but gives severe disadvantages to players who don’t pay.’ This system makes people frustrated for not being able to either complete the game or their character being bad, and making spend money.

Many people think that the businessmen are so scared of losing their precious money so much that they panic and do indeed make decisions that anger people. They go for pretty desperate and very image damaging moves. For Example gaming review sites like IGN and Metacritic have been accused of giving certain games and companies higher reviews in exchange for kickbacks – evidenced by several factors such as the selection of their critics being under no formal control and little transparency in how the process fully takes place and its funding. According to an analysis report by the Xentax Foundation regarding the quantification of Metacritic score data:  “The data at Metacritic leaves much to be desired and seems to be heavily biased.” - Mike W. Zuurman

Retailers like Gamestop have also been brought under scrutiny . Forbes noting a most recent example involving Sony and Microsoft issuing a free Xbox One and PS4 to all of GameStop’s general managers. ‘the store’s general managers will all be receiving a free PlayStation 4 and Xbox One this holiday season’. Although some may argue this to be an educational endeavor, rather than a bribe, to help managers answer potential customers’ questions. Many perceive it to have become a “you scratch my back, I'll scratch yours” industry wherein games are no longer produced and purchased based solely on their quality, but now instead on things like how large a company’s budget is, what ties it has with various publishers, and ultimately what the general public is led to believe about the game long before they even buy it. The assumed loser being the consumer.

Another example of businessmen greed damaging own image is the recent reveal of the Xbox One. It was something people really waited a long time for but when they finally revealed it Microsoft got “booed” right there and then. There were a few reasons behind that. Originally, on Xbox One you had to connect to the internet at least once every 24 hours the console would not function unless you did, they made sure you could not share and lend games to your friends, you could only log into your online account on another console for no longer than an hour. This has caused a huge disappointment. Purely because it showed how Microsoft wanted to squeeze as much as they could out of their customers. Because it would force people to buy Xbox Live, if you were not sure if you are going to like a game your friends happen to have, you would not be able to lend it to try it out before you buy your own copy. And what about the old games, that you ca not buy in shops anymore, sometimes you lend them of people for that reason and that reason only, it is not a crime. And as for the hour restriction to using your own profile on another console? It is very common practise to log into your profile when at a friend’s house when playing together, purely because gamers tend to care about their gamerscore, and they will use every opportunity to bump it up. ‘Since that event, Microsoft had famously changed several of the policies originally outlined.’ The system is without a doubt controlled by numerous forces – but ultimately, it is the consumer that is the person still most in control. The reason Call of Duty games continue to be recycled and remade over and over again is because in spite of all the complaints, in spite of all the disgruntled customers, there is still a market that exists that enjoys playing the games. The vast majority of games are still made and marketed towards young males. Why? Because it remains the largest demographic of those who purchase and play video games. The consumers are still the most controlling force. The launch of the Xbox One is a perfect example of this. Its initial sales failed in comparison to the PS4 and previous generations of consoles not for lack of vision… not for lack of innovation… not for lack of games – but based on one metric: it was not what most people wanted. While it's certainly reassuring to hear that the Xbox team is invested in making the Xbox One the system that gamers expect and want, there is still clearly much work to be done.’ Microsoft scrambled to fix the problems. Public relations frantically performed damage control. Engineers were told one minute to design certain features, only to be informed shortly later to scratch the idea and create something entirely different.
The Xbox One’s fate was inevitable – the damage was done. Game Over. All the hype in the world – all the Mountain Dew advertisements and celebrity endorsements couldn’t revive the image people had originally envisioned.


Milking cash out of customers, is a fair argument founded on many well-established truths, but it is also flawed and misleading for several reasons. The same profit-steering dynamics are shown in all industries, not just gaming. In fact, they are found in every aspect of the world. It is existed since the very beginning of its infancy – only now in our information age of access is it more apparent. And as shown by several examples and metrics, the consumer, gamers, are ultimately still the ones most in control, even if at times it does not feel like it. The strange, unexpected reality is that in many ways it is actually making things BETTER. Close up, elements of the industry appear manipulative and despicable – and many of them are. But taking a step back and looking at the whole picture, one realizes that many of the greatest aspects of what consumers love about games and gaming have only come about because of these necessary evils.

Propelled forward by “evil” forces. For decades, many artists, writers, and programmers were steered away from a career in the gaming industry because they feared it would not be lucrative enough to support a family. Now, majors and even entire colleges are dedicated to the science and art of game design. Why? Because there is now money to be made. Careers. Jobs. It is not money that is evil, but the love of money. The negatives created when people cast aside their morals solely to attain more money.

Summarising, maybe we should not be so harsh on any of the game producers. Yes they do sometimes push their luck a little. But in the end it is all down to us to make sure they do not. Gamers are still ultimately in control what was proven by Microsoft swift change of the new console purely because their fans were not happy with it. we will continue to listen to your feedback.’ They are still perfecting it as we speak, adding more and more servers to eliminate lag, coming up with new challenges and competitions. Maybe we should take a step back and think of an overall image before judge them on how much they charge us, because a lot of people’s time and money went into it at first place. It’s a huge market and creates a lot of job positions too. Gamers can even get a job as a tester in the company they love and help the development! And if Gamers were not so hard to please, always expecting something huge maybe the games would not be pushed beyond their limits and costing us a fortune.



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