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On The Need For New Videogame Funding Models

Thanks to Costik.com for pointing to entrepreneur Gordon Gould's comments on possible new videogame funding avenues, as he notes "the coming console shift to Xbox 2 and the Playstation 3 is going to once again raise the bar on development costs", meaning "a shrinking number of titles per publisher slate w/increased pressure on those titles to be out of the ballpark blockbusters." He suggests that "developers' ability to gain more control over their destiny is handicapped by the relative scarcity of funding sources", but this may be changing, as investors from outside the industry start to fund development (as seen recently at MMO creator Turbine.) However, Greg Costikyan weighs in with a response, arguing that "...even looking at something as goofy and hit-driven as the game industry, an investor is already taking a big risk, and his or her instinct is going to be the same as the publishers': be conservative in what you fund."

10 of 29 comments (clear)

  1. unfortunate consequences... by BTWR · · Score: 5, Interesting

    The unfortunate consequences that this brings, not entirely unjustifiably, is that daring new games will not be made. When every 5 years or so brings a new genre (FPS, violent vigilante games), we'll simply see 10 clones of those, instead of new ideas. When developing a game costs millions of dollars to make, with entire teams of workers to go at it (as opposed to the Atari days when one guy made the whole game), you kinda can't blame them for not taking huge risks.

    Even Nintendo's very creative games this generation, Pikmin and Viewtiful Joe, were made (I'm totally speculating) only because they were pet projects of titans of the industry.

  2. Oh I'll tell you what the world doesn't need... by Anonymous Coward · · Score: 2, Funny

    It doesn't need more ass-hats telling other people to go out and do something while they mind the fort.

    How 'bout you take a play from your own book and give up your recreational nannying to go dig a well in Rawanda. 'K

  3. The risk? by fatboyslack · · Score: 5, Insightful

    Unfortunately, the innovative interesting new games rarely sell better than run of the mill sequels, or movie franchised add-ons.

    All investment is risk, but the key to smart investment is that you try to minimise risk. Not many people worry how their money is multiplied, and to most investors, one computer game is the same as another. They would care little what games are made, as long as their investment grows. Computer Game publishers know this and therefore tune their business plans accordingly.

    And, the general gaming public doesn't help by buying $hit games en masse.

    It's a little disappointing that the gaming industry seems to be going the way of the movie industry. No risks, nothing interesting except for rare 'arthouse' movies.

    The important question is, what can be done?

    --
    Everyone thinks of changing the world, but no one thinks of changing himself. -- Leo Tolstoy
    1. Re:The risk? by Incoherent07 · · Score: 3, Interesting

      Agreed. You do start to wonder why, if modern games get better and better with every generation (or so the hype goes), people still even play games from the 1980s. Is it, perhaps, that simplicity has advantages?

      As mentioned elsewhere in this thread, the hardest part of making a game is the artwork. And yet, strangely, the artwork isn't the most important part of the game! (Some will argue that, I'm aware.) The gameplay, dare I say it, is the most important part. If publishers instead concentrated on making good games, and skimped on the artwork perhaps, wouldn't that decrease the cost of the development cycle, and therefore mitigate the whole problem the article discusses?

      --
      This is my sig. There are many others like it, but this one is mine.
    2. Re:The risk? by buffer-overflowed · · Score: 2, Informative

      No the games aren't fundamentally better just prettier. Gamers have gotten worse and easier to please though(I didn't thank that was possible, people bought Phalanx after all, but apparently it was.).

      Take this game for instance: Beyond Good and Evil. It was critically praised, is a fantastic game, and came out for all 3 consoles AND the PC but it didn't sell(you can pick it up for $19.99 on the XBox or GCN).

      Good and even good AND innovative doesn't mean sales. So it's always the safe bet, yet another FPS, yet another Madden title.

      Then you have the general dumbing down of games. No new gameplay elements. We'll just take a buncha stuff from other games in the genre, improve the AI and physics a bit and BLAMO, we've got a success (*cough* Halo *cough*).

      Most games may as well have been released for the last generation of consoles. Apart from how pretty they are, they're pretty much more o' the exact same.

      --
      The key to the enjoyment of pop music is to replace any instance of "love" with "C.H.U.D."
  4. Re:The world doesn't need more video games. by DAldredge · · Score: 2, Insightful

    I do pay for all that. It is called taxes.

  5. X Box 2 by aflat362 · · Score: 3, Funny

    Oh great. I'm still 250 some Mountain Dew points away from getting the original X Box.

    --

    Conserve Oil, Recycle, Boycott Walmart

  6. So... by ooPo · · Score: 5, Insightful

    Watch as the industry starts shifting towards handhelds instead of full blown console games. Nintendo stands to make a pile more cash if they can stand up and release an answer to the PSP. It doesn't have to be fancy... just a machine with a reasonable amount of power. The handheld war will be won mainly on price, not raw power.

    (before you shout ngage, read where I said about a *reasonable* amount of power...)

  7. Games should be cheaper to make by xyu · · Score: 3, Interesting

    You'd think hardware manufacturers would make dev kits that make it easy to make games. That way games could be produced faster, hence cheaper.

    I remember talk of Nintendo's kit that they used to build Wind Waker and FF:Crystal Chronicles. They were supposed to be able to build games in under a year with it. Anyone know if it is working?

    Also, the recently resigned Nintendo president set up some sort of fund to help pay for games:

    As reported last year, Yamauchi-san announced plans to establish a game development fund in Japan. Thereby, Yamauchi-san will invest venture capital into budding game developers and related visionaries.

    1. Re:Games should be cheaper to make by Scorchio · · Score: 2, Interesting

      Errrrrr.. no. The technology is getting more and more complex. Sure, it's easier to write a previous generation game on current generation hardware, than previous generation hardware. Using all the bells and whistles the new tech provides certainly isn't easy.

      However, you're spot on about content, though. It seems that we're heading towards project teams with a handful of programmers and a army of artists, animators, modellers and musicians.