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Death to the Games Industry - Part II

hapwned writes "Following up on Greg Costikyan's first part of his article from last week, The Escapist goes for round 2 vs the Game Industry. Costikyna goes on to explain what they should do instead: 'One thing developers can try to do - and should do, if they can - is to take over that first additional piece of the value chain. They should try to fund their own development. If you can fund your own development, you get some big advantages. First, you can negotiate a higher royalty rate with the publisher, because they have less capital at risk. Second, you are not utterly at the publisher's mercy during the development process; if the publisher-side producer wants you to do something really stupid (and horror stories abound), you can tell him to screw off. And third,you can retain ownership of your own IP, so if you build a successful franchise, you (rather than the publisher) reaps the benefit.'"

27 comments

  1. "Move along now by Anonymous Coward · · Score: 0

    Nothing for you to see here", apparently. WTF was that all about?

  2. New Sports Games... by BrookHarty · · Score: 2, Informative

    Does EA own the rights to every sports franchise? Seems they have a good lock on all major sports.

    1. Re:New Sports Games... by BenZoate · · Score: 1

      Take Two has the MLB liscense for cross platform games, but Nintendo, Sony and Microsoft can also make MLB games for their consoles. AFIK EA has every other major league sport in some sort of contract, and ESPN for something like 15 years, and dont forget enough innane Madden quotes for the next 75 seasons of the NFL.

  3. What part of... by skyman8081 · · Score: 2, Funny

    "Never put your own money into a project." Do you not understand.

    Not everybody is George Lucas. If your game fails, you are boned.

    --
    Two Roommates and a Boyfriend, updates Monday, Wednesday, and Friday
    1. Re:What part of... by PhoenixOne · · Score: 3, Insightful

      You are right that using your own money is a risk. Hell, if you listen to publishers they'll tell you that 90% of all projects don't make their money back (and 67% of statistics are made up). But, if you're not willing to put your own money where your mouth is, you can't bitch too much when the publisher demands you listen to their "creative input" or they "steal" you IP (Their money == Their project).

      --
      Spell cheek you've failed me four the last thyme!
    2. Re:What part of... by Anonymous Coward · · Score: 0

      What part of "One thing developers can try to do - and should do, if they can..." do YOU not understand? He didn't say that every single game maker should fund everything they do.

    3. Re:What part of... by WaterBreath · · Score: 4, Insightful
      You're missing the point. Lucas-style budgets and mass-appealing, relatively unoriginal, effects-driven extravaganzas are exactly what the author is railing against.

      The point is not that everyone should be like George Lucas. The point is that if we take the focus off the superficial stuff, we could get some quality development done without the Lucas-style budgets budgets.

      Yes, there's risk. But it needn't be as huge as the publishers want us to think. The problem is that they have strict (though misguided) standards for their output, which require a certain level of monetary input. Changing the output standards necessarily changes the necessary input resources.

    4. Re:What part of... by TheAdventurer · · Score: 1

      I would take this the opposite direction and say never go to work for someone doing something that is personal and important to you, because as long as you're not paying the bills, you won't be the boss. (Unless redundantly specified in a contract.)

    5. Re:What part of... by iocat · · Score: 1

      Yeah, but you're "boned" if you have to make games you don't like, as well. Putting up some dough gives you more creative control and a bigger piece of the back end.

      --

      Dude, I think I can see my house from here.

  4. Not likely... by Anonymous Coward · · Score: 0

    The question is: Why would publishers go for this?

    Big movie stuidos make movies themselves becaue if it happens to be a hit then they retain the ability to milk that sucker 'till it's dry. When they do take movies from indie studios they come with contracts that limit where the indie studio can go with the next movie of the franchise and who controls the marketing etc.

    In other words, they dont what their business tied to the whims of another company.

    I can hardly imagine game publishers being any different. In fact, once you gain the ability to fund games yourself you've become thier competitor, since if you can fund your own games, you could also fund someone elses and become a publisher.

  5. Is the coming 'Revolution' by PenguinCandidate · · Score: 1

    something truly revolutionary? Is Nintendo going to cut out the retailer, seeing as places like Gamestop et al are already looking mroe corporate (and therefore more Sony and MS driven) with each passing day? It worked with iTunes is all I'm saying. Maybe the Nintendo/Apple comparison isn't so far off.

    1. Re:Is the coming 'Revolution' by KDR_11k · · Score: 1

      They've made comments that make new distribution methods sound possible (something about different methods for different budgets IIRC) but knowing Nintendo (they're control freaks) it's unlikely. Well, that and the 512MB internal flash memory sound a bit limited for this purpose.

      --
      Justice is the sheep getting arrested while an impartial judge declares the vote void.
  6. Risk is the problem by Nebulochaotic · · Score: 4, Insightful

    While in an ideal world I would agree with the points made in TFA, and there are many companies in the games world moving in this direction (Valve's Steam, for better or worse, is at the forefront of the "Kill the publisher" movement) eliminating the publisher from fundraising and distribution is not that easy. The biggest advantage of having a publisher is that the risk of producing the game is largely lifted from the shoulders of the developers. Once developers start bringing in venture capitalists and other sources of investment, they become culpable if the game fails at market. Not to mention that the shift from publisher to VC just passes the control of your game from the hands of the publisher to the hands of the VCs.

    The second part of TFA, regarding digital distribution, is also flawed in the real world. They give examples of games already available for direct download and mention that waiting "half an hour" or so for a game is no worse than driving to the store. However, many modern games are pushing the capacity of DVDs to their limits, and already multi-DVD games have been seen. Most people simply do not have the bandwidth to download several Gigs in "half an hour."

    While I commend what the article is trying to acheive, I simply do not think that changing the business model for game development and distribution is as easy as it makes it seem. Established game companies, like Valve, will likely need to take the lead in changing the model rather than the new developers. That said, there are definate advancements being made in that direction and I believe the model is moveing steadilly towards innevitable and positive changes.

    1. Re:Risk is the problem by toad3k · · Score: 1

      I actually agree with a good portion of his article. Internet keeps getting faster. PC type games are potentially a big market with which none of the consoles are apparently going to cater to for another 7 years minimum.

      It also strikes a chord with me because when I enter a gamestop and look around at say, the xbox rack, even though there are a hundred games to buy, only 2 of them look like they might be worth owning. That says to me that there is a big problem here somewhere, and whoever solves it is going to make a bundle.

      The only, I repeat, only thing missing at this point is a company (a respectable one that won't play favorites) to step up as a hub with which to market and distribute a wide variety of decent hardcore games. And lets be realistic, when you cut out the marketing companies, the price has the potential to become very appealing to the consumer.

  7. Cryptic Studios Comes to Mind by Bellum+Aeternus · · Score: 2, Informative
    This is exactly what Cryptic Studios did with their development of City of Heroes. Their CEO funded the entire thing right up to thr point of their deal with NCsoft America. Seems they have (one of?) the best deal[s] of any MMO developer out there.

    Not bad for their first game.

    --
    - I voted for Nintendo and against Bush
    1. Re:Cryptic Studios Comes to Mind by Grab · · Score: 1

      I just happen to have the Feb copy of PC Format to hand, which did an interview with the lead designer, a guy called Jack Emmert. Direct quote from that:

      Andthe golden advice to anyone thinking of following in Cryptic's steps? Jack's answer is equally simple. "Get ten million dollars. Between initial development and marketing cost, that's ten million."

      So provided someone in your team has ten million dollars to spare, you're fine! That CEO got his money by building up a video chip company and selling it. There aren't too many people with that kind of money floating around who are prepared to blow the lot on a game, and much credit to Michael Lewis that he had the balls to do it.

      Amongst my colleagues though, I'd guess a reasonably careful person aged 40ish might have 30-50K of savings and investments (excluding pension), and could probably access another 50K by selling their house and moving to a smaller one. So provided 100 people are prepared to risk their entire life's savings that they've spent 20+ years working to build up, you've got that money. I don't think that's too likely though. So the kind of advice in TFA and here, whilst interesting, is not widely relevant for Joe Developer.

      Grab.

    2. Re:Cryptic Studios Comes to Mind by Anonymous Coward · · Score: 0

      It was a lot more then 10 million to complete COH. NCSoft is the reason that game even shipped, they were hard up for cash and the game was in poor shape when NCSoft picked it up.

      Millions more, redesign of lots of systems, and a whole lot of time, and it finally shipped.

      Dont be fooled for a second thinking it was ready to go and all NCSoft did was ship it, LOL not even close to the reality of what really happened.

      They still got fairly bonned on the deal, but they did come out ok since they had done some self funding but its still not great.

      This article that started this thread seems to imply the only way to make a game is your own money or through a publisher. You can do it with VC funding as well and you get a much better deal then any publisher will give you. sure you wont own the company but VC's dont tell you how to make your game or force you to do stupid demos every week.

      You give them a schedule and task list, you complete the stuff on time, the vc's leave you alone.

      Publishers are freakn sharks and will own you and your game so in that instance he is right.

      But self funding is not a good way to go unless you can afford to lose the money.

  8. Reaps the benefit? by Seumas · · Score: 3, Funny

    You reaps the benefit

    If you're going to be a game developer, you should also have a basic grasp of grammar, too. Unless you want us to set you up the bomb and such.

  9. Re:Is it just me... by grumbel · · Score: 1

    Yes, the layout is awful for the web, but at least they provide an alternative layout (little 'text' link at the bottom:

    http://www.escapistmagazine.com/print/9/4

  10. The Gist by Red+Flayer · · Score: 3, Insightful

    I read through the article, and it struck me that "The Escapist"[1] -- as he styles himself -- is basically saying that game developers need to be in charge. Take over financing (and therefore control); take over distrbution (or control of it); take over retail (by not going through brick-and-mortar distribution).

    Sure, because every developer thinks they know best... the truth is, we all think we're experts on every subject until faced with doing it. At least Costikyan admits that developers need help with the marketing.

    What's really needed is for the leader of a development company to leverage their connections and personal charisma to get all these things done. Think about the leaders of the gaming industry, and these people get it done, in the current development structure.

    My biggest pet peeve in the article is that Costikyan thinks that the key to marketing is to appeal to the "indie spirit" of the hardcore gamer -- and to develop that spirit if possible.

    First, that spirit already exists. He just wants the retail industry to tap into it -- which, in effect, destroys it... although a ton of money can be made in the process.

    Second, he says that the casual gaming crowd is not the target. Au contraire, mon frere, the casual gamer is the crowd that puts you over the profitability edge.

    In all, Costikyan is trying to come up with a scheme to build one market-changing game. If I had complete creative control, if I could ignore the current distribution scheme, if I could just change the market to suit my model, then I'd have a hit game -- that happens to be oh so cool, becaue it's indie!!

    On the plus side, I foresee publishers releasing divergent games -- the marketing-driven blockbuster (along with the personality-driven profit-making drivel) balanced with riskier games, that may make a killing.

    I see the current distribution scheme changing -- for PC games (Steam, etc -- although it needs some fixin').

    I see the market naturally developing an indie movement, as major media (and EA, etc are major media) begin controlling a ton of the content.

    So, Costikyan is saying: what we need is what's happening already.

    [1] My apologies to Michael Chabon, author of "The Amazaing Adventures of Kavalier & Clay"

    --
    "Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
  11. Engineer Around the Problem by patio11 · · Score: 3, Insightful
    If you know, when you start development, that you will be making a game designed for digital distribution, then you can engineer around the problem of low bandwidth. Produce a minimal demo installation with the typical 30-45 minutes of play time for an 80mb download or whatever. And include a "buy it now" button which will give them an ordering interface directly inside of the application (or open up an external webbrowser if you really feel like it). The SECOND the game starts running you start streaming content down off the Internet with a background thread and you don't stop until they exit or you're done (actually, you may want to give the player the option of continuing the streaming in the background). Keep going even after they buy the game, too -- no reason you can't grab all the textures/models you need for level one before you grab the ones needed for level two, etc.

    This sort of model also cries for Bittorrent, too. The bittorrent protocol is fire-and-forget for almost all users -- just build it into your game behind the scenes, and then other people end up paying for your bandwidth expense. You'd probably want to tweak the implementation a bit so that clients prioritize collecting the pieces in order, but its something thats quite doable. And, of course, not all games are multi-gig monstrosities.

    If you use the sort of game-community/portal model that TFA advocates, you can share one common bittorrent network and preload content on your gamers machines ala Steam both as a way to maximize your torrenting efficiency and to also give seamless response when they buy a new product. Just make sure to add in some sort of DRM (doesn't have to be terribly invasive -- I think the "encrypt it all" thing was likely the biggest problem with Steam).

  12. Greg is a poseur by Anonymous Coward · · Score: 0

    When will this guy shut up and actually put his money where his mouth is? All he seems to do these days is whine. Has he made a game in the last 10 years?

    He is apparently the Chief Creative Officer (according to his website at http://www.costik.com/ of http://www.unplugged-inc.com/ whose latest project appears to be some piece of junk mobile game based on a piece of junk teen girl movie called "Mean Girls." Yeah. Way to put your money where your mouth is, Greg.

    Shut up and go back to making pen and paper games.

  13. Costikyan's resume by DoctaWatson · · Score: 2

    Not that I don't agree with a lot that he has to say (as a gamer and a consumer), but I have a hard time taking this guy as some sort of "industry insider" when the list of games he's worked on is, well... lacking.

    I'd be more inclined to buy into the polemic if he could back it up with a decent resume of successful AND entertaining games. Otherwise this just reads like a pitch for his "consultancy".

    1. Re:Costikyan's resume by Red+Flayer · · Score: 1

      "Otherwise this just reads like a pitch for his "consultancy"."

      Exactly. He even makes that reference in the article:

      FTA: "And to do that, you need more than ads. You need manifestoes. Brickbats. Slogans. Outrageous stunts. You need to rabble-rouse.

      Like, say, by writing articles like this.


      Costikyan's just a self-promoting hack with a professional-looking blog.

      --
      "Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
    2. Re:Costikyan's resume by Anonymous Coward · · Score: 0

      Huh? Did you look at the full list? It goes back to 1976 and includes RPGs like Paranoia.

    3. Re:Costikyan's resume by Anonymous Coward · · Score: 0

      I believe this is the link you're looking for.