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Garriotts See Shakeup To MMOG Industry Coming

Next Generation is reporting from the annual DICE event, and has the gist of the presentation given by Robert and Richard Garriott about the future of the MMOG industry. From the article: "Richard Garriott, father of the Ultima series said, "After a period of growth, opportunities are closing, budgets are increasing to tens of millions of dollars, and companies need global infrastructure in order to publish. My guess is that over the next 3-5 years, only five companies will operate in this business, and unfortunately, many of the startups will be gone.""

19 of 115 comments (clear)

  1. Not exactly Brilliant commentary... by Anonymous Coward · · Score: 5, Insightful

    That holds true for most industries. Remember, when cars first came out there were many many car companies. As cars got more and more complex there were less and less companies, until today you have maybe 7 or 8 major car companies in the world.

    The same is true about the computer game industry in general. When games were new and a lot less sophisticated, there were thousands of publishing companies. Today we have..what, 4 major ones? EA, Ubisoft, Veventi, MS and...?

    1. Re:Not exactly Brilliant commentary... by ClamIAm · · Score: 2, Informative

      I don't think this holds true for software, at least now that so many people have net/web access. The difference is that it's a lot easier to start your own game business (especially now). There are tons of free and cheap dev tools available for computers, so all you need is some skill, a web host, and a lot of perseverance. Unlike the car industry or retail box copy-type game publishers, which require tons of manufacturing and logistics.

    2. Re:Not exactly Brilliant commentary... by jchenx · · Score: 2, Insightful

      Well, I agree that almost anyone with some decent smarts can knock out a cheap game that can hit it big. Or mod an existing one. However, TFA refers to MMO games, and those definately require resources easily an order of magnitude more than, say, just a simple download game.

      What I can see is perhaps indie-MMO games the size of maybe a few hundred or even thousand people. It'll very much serve a niche audience. However, you could argue that populations on that scale aren't very "massive".

      --
      -- jchenx
    3. Re:Not exactly Brilliant commentary... by lgw · · Score: 3, Insightful

      "Massive" is only as big as the server. If you have an indie MMO with one server and a couple thousand people on during peak hours, that's an MMO. There are indie MMOs like this (and smaller, of course) today, and I don't see there being fewer in the future.

      Sure, there will only be a few huge MMOs you can buy at Wallmart, but that's the case with most game publishing.

      --
      Socialism: a lie told by totalitarians and believed by fools.
  2. My guess? by DahGhostfacedFiddlah · · Score: 5, Funny

    There's only a market for about 5 MMOGs worldwide.

  3. Re:Five companies? by MarkChovain · · Score: 4, Interesting

    There's a good site that tracks subscription numbers on lots of different MMOGs here. It has dozens of games, and has been tracking subscription stats since 1997.

    There is also regarded as a immune system copy, which is very comfortable usable. It does take a couple of years from now.

  4. Up to a point. by vertinox · · Score: 3, Interesting

    After a period of growth, opportunities are closing, budgets are increasing to tens of millions of dollars, and companies need global infrastructure in order to publish.

    I think this is because in order to maximize profit, you must have the best product which requires teams of coders, hordes of graphic designers, and armies of network admins to roll out WoW, EQ, and whatever other blockbuster game comes out.

    So this is what is done...

    However, larger companies tend to not take risks on unproven ground so there still will be room for startups to nudge their way, but they won't be blockbusters with 100,000 players.

    Eventually, after technology and bandwidth costs aren't prohibitive or a factor and the game engines have gotten as realistic as they can so there isn't anything left but to create game content, then perhaps it will be more mom and pop shops again. But this might be a while...

    --
    "I am the king of the Romans, and am superior to rules of grammar!"
    -Sigismund, Holy Roman Emperor (1368-1437)
  5. How many can the world support? by Zitchas · · Score: 4, Insightful
    The real question is how many different kinds of MMOGs will the world market support? We can hope that the best in each category will win out, but it's more likely going to be the one that has the best advertising, or the ones that have the best infrastructure to support it decently, and either way have something that isn't total garbage.

    From my point of view, however, it's likely that the truly great games are probably going to *still* be startups that, while awesome games for those who like them, don't have the wide audience appeal that some of the not-so good games. And thus may well end up failing, going bankrupt, or being bought out by one of the big companies.

    A case in point is probably the entire SWG thing. They had a great premise (however flawed the implementation might have been), but it was sacrificed for what is essentially a more focused game that is probably easier to play (and thus accessible to a lot more people), even if it is a massively inferior gameplay experience for those who are willing to take the time to really learn the complexities of a game. Economically, they'd rather have a huge number of part-time gamers than a small number of hard-core ones.

    Although that brings up the point that someone, somewhere, may figure out how to make a game with the intricacies, complexities, and depth to keep the hard-core types happy while still being accessible and fun for those who just want to drop in and play. A good example of this might well be done using Dungeons and Dragons. For those who know the game, there are an insane number of variations on all the different character themes. For those who don't want to spend the time to learn all that, there's the default sets for each major class, slap in the ability scores, and you've got a fully functional archtype, ready for the next hack and slash. And in the process of playing said archtypes, you'll still be exposed to the mechanics, and thus you learn. And after a while, you'll know enough to be making your own builds, thus the archtypes served to ease the learning curve to get you into the more complex things, and thus both systems co-exist.

    If someone can figure out how to make that perfect game, I look forward to playing it.

    --
    Z
  6. Re:isn't this already true? by siksia · · Score: 2, Interesting

    A lot of people seem to be forgetting about the rest of the world. The US is by no means the primary player when it comes to MMOG's. Korea in particular has so many that the rest of the world will rarely (if ever) see, and they're really the ones driving this industry now.

  7. LARPing in VR by argent · · Score: 3, Insightful

    Right now 3d virtual reality is about where text adventure was in the early '70s. Infocom kept the text adventure alive pretty long, but 2d and then 3d pretty much took it over, and the only place you got text role playing was in themed chat systems... MUDs.

    I'm predicting that as free and cheap 3d virtual reality gets more common, the kinds of hack-n-slash stuff you see in MMORPGs now are going to become the kinds of things hobbyists put together inside virtual worlds that exist for other reasons. Right now that stuff is really crude by comparison, but it's just a matter of time before realistic graphics become as generic as verb-noun parsers and scripted objects in MUDs.

    So the kinds of things that go on in 3d games now will be like LARPing in VR. SCA-type stuff. What will *companies* be doing instead? Heck if I know... interactive movies with licensed celebrity characters and paid actors?

  8. With all due respect.... by Psychochild · · Score: 4, Insightful

    Single-player game developers (even superstars) often don't understand online games.

    The reality is that a small game can make a modest income. The game I administrate, Meridian 59, makes enough to keep me from starving to death, but it'll never be as big and amazing as, say, Lineage. But, people who enjoy hard-core Player vs. Player (PvP) with consequences enjoy our game immensely. We're happy keeping our classic game alive (it first launched over 9 years ago) and serving a niche.

    One problem is with the term "massive". People look at the smaller games and turn their noses up at them. Our game with about 100 players on at peak isn't very "massive", so most people give it a pass. In reality, the community is actually quite a bit stronger. But, no one puts out press releases about having "the best community" or "the most enthusiastic customers". It's all about "the most people playing (and paying!)" in press release land.

    The problem with the Garriots' predictions is that online is a medium, not a genre. There's a LOT of untapped potential out there, too. Take a look at the Korean market and you'll see an amazing array of games. Of course, one issue in the U.S. market is that the existing audience expects millions to be poured into the production values of the game. As soon as people realize that gameplay really is more important, you'll start seeing a lot more options out there.

    Personally, I think the future is in niche games. Why go visit a game trying to cater to the lowest common denominator when you can go visit a game that caters more specifically to your tastes and the tastes of people like you. Of course, as with most boutique offerings, don't expect the price to remain at the rock-bottom like it is now.

    Some thoughts from someone else in the industry.

    Have fun,

    --
    Brian "Psychochild" Green
    MMO developer's blog
    1. Re:With all due respect.... by Psychochild · · Score: 2, Interesting

      No, I know exactly who Richard Garriott is. I also know who many of the other developers that have worked on UO over the years. My business partner that I started Near Death Studios, Inc. with did contract level layout for UO after he left the original Meridian 59 team and before we started our company. A number of Meridian 59 developers had worked at Origin. Keep in mind that Meridian 59 originally launched about a year before UO did.

      So, while I respect the Garriotts tremendously for their single-player game work, this doesn't mean that they are online game (or "MMO" if you prefer) experts. UO used Richard's setting, but much of the game was created by text MUD developers including the notorious Raph Koster. ;) Destination Games was also responsible for localizing Lineage for the U.S., but that game sank to a deep level of obscurity despite Richard Garriott's enthusiasm and despite being a staggering success in Korea. And, there's a history for the game Tabula Rasa; they've scrapped development of the game once and restarted already.

      Now, I think that they are probably right in that there will be a big shakeup. World of Warcraft has opened up a lot of purses of people that want to duplicate their success, and there's a lot of money going to people with significantly less experience than the Garriotts. So, I suspect we will see a lot of pretty high-profile failures hit in a few years. But, I disagree in that it'll result in 5 or so mega-companies operating all the online titles. It's possible (but not necessarily easy) to carve out a niche and serve it; this is a perfectly valid alternative to their scenario. Given how frustrated people are getting with the "one size fits all" philosophies of the larger games, I think we'll see more people migrating to the smaller games once they become a bit more dominant.

      Who is right? I'm placing most of my bets on the niche games. The Garriotts are obviously betting on the mega-companies. So, we have our differences of opinions. I'm just not quite well known yet to get to go to DICE to air my opinions. Although I do at other industry conferences, like the one in Austin.

      Overall, I suspect this is a ploy by NCSoft to try to frighten off some competition from entering the MMO space. Scaring the people who might invest in a competitor away from the online arena allows NCSoft a bit more breathing room for more of their games to come out to less intense competition. It's been demonstrated that people who play online games generally prefer a newer game, and games that launch too close to each other tend to have one of the group dominate the rest. So, scaring off competition is the type of smart business decision I'd expect from Robert Garriott, too.

      Some more insight,

      --
      Brian "Psychochild" Green
      MMO developer's blog
    2. Re:With all due respect.... by Darth · · Score: 2, Interesting

      I got the impression from your first post that you might not be aware of what they've done since origin. I was just trying to explain why people are listening to them about the MMO market and why their perspective might be worth taking a look at.

      With respect to Tabula Rasa, my understanding was that they started over with it because the original idea was determined to be too confusing and too different when it was shown to people and less because it wasnt functional technologically. (what i mean is, it wasnt restarted for technical reasons, it was restarted because they decided the concept didnt work for the audience.) I dont think that that decision says anything really negative about Garriott or his ability to make an mmo. I think it says he tried something a bit risky and dropped it when he decided it wasnt working.

      My personal opinion is that he is definitely right that there will be a few large companies that do the really high profile games like COH, WOW, EQ, etc. and if you want to make an MMO out of your franchise, you go to them.

      At the same time, you are definitely right that there will always be a market for niche games like A Tale in the Desert or Meridian 59. The niche games can thrive as long as they can remain profitable with a small player base (compared to the major games like WOW). The niche developers will also need to accept that, barring something incredibly lucky happening, they wont be made millionaires by their MMO.

      I think online play is the last area of computer gaming where the big companies like EA cannot lock out the independent developers because it's the one place the developers don't need their distribution channels to sell the game.

      The independents will have to work hard to provide compelling and innovative gameplay though, to counter the marketing machine and budgets the majors have. The major games will probably stick to proven gameplay elements and steal the successful ideas from the niche games. In that sense, it will be a lot like true independent film vs. hollywood blockbusters.

      --
      Darth --
      Nil Mortifi, Sine Lucre
  9. You will pay the price for your lack of vision by Dachannien · · Score: 5, Insightful

    Garriott (and/or Garriott) demonstrates a notable lack of vision when it comes to the willingness of indie developers to work in a variety of gamespaces. Not all games require tens of millions of dollars of content to be interesting to at least a small number of people, and the key to a successful game isn't necessarily selling millions of copies worldwide. In truth, all that's needed is to make a game that sells enough copies/subscriptions to make the money back on the development costs (i.e., the developers' families have food on the table).

    Take A Tale in the Desert, for instance. It's an independently-developed game, published in online form only. The small development team has been maintaining the game for nearly three years off the $14 per month subscription fee from several hundred (perhaps a thousand or two) players at a time. Is this game a mega-super-ultra blockbuster? No, of course not. The market can only support a few of those at one time (though that'll increase as more people discover the genre). But is it successful? Definitely. It's not only stayed afloat for three years, but the enthusiasm of its subscribers and its developers continues to thrive.

    Puzzle Pirates is another good example of an indie MMOG that has achieved success in the market (as well as critical acclaim). And what's more, MUDs are still around, some with dozens or hundreds of players daily experiencing freely-developed content. If Garriott were operating under valid assumptions, these MUDs would have died off long before WoW entered (and increased) the MMOG market.

    Garriott is probably right that there's only room enough for a few World of Warcrafts or EverQuests or Lineages at a time. The expectation has grown that these games will require thousands of person-hours in development, and as customer expectations inflate, the costs for these games will eventually become prohibitive to all but larger media companies who can afford to bankroll such projects. But it demonstrates blindness to what's going on in the trenches to say that the market will suddenly close off to small developers with big visions.

  10. Re:Richard Garriot: Industry Burnout by Zorikin · · Score: 2, Informative

    Richard Garriott works for NCSoft now, and has credits on City of Heroes/Villains, Lineage I/II and the unfinished Tabula Rasa. That's 5 out of the company's 7 announced titles - all MMORPGs, and all modern (except for Lineage I). He knows what he's talking about.

    http://en.wikipedia.org/wiki/Richard_Garriott

    Of course, the indie scene will be spewing out dozens of MMORPGs of various quality levels every year from now until the end of time, but the number of companies that can compete with NCSoft may indeed grow small and stabilize that way.

  11. Re:Five companies? by lgw · · Score: 2, Insightful

    The Realm Online was the first graphical MUDs not on a pay-per-minute service and it's still running. Meridian 59, perhaps the first first-person graphical MUD is back.

    Plus you have all of the non-combat oriented MMOs. I'm sure EA's TSO is still there - a flop by EAs standards, but still a big game. EAs will continue to be a player I'm sure. Second Life, A Tale in the Desert, I'm sure there are many.

    It's also worth noting that while NCSoft distributes many titles, they come from almost as may design studios. The number of large distributers may well dwindle, but that says nothing for the number of development groups.

    --
    Socialism: a lie told by totalitarians and believed by fools.
  12. Re:Richard Garriot: Industry Burnout by Zorikin · · Score: 2, Insightful

    The point about Garriott was that he is involved in the industry, which he is, not that he is writing code specifically, or even that the games he produces are any good. By your logic, Sam Walton must not know anything about the retail industry because he hasn't worked in a store recently, or because his stores are full of cheap crap.

    I started to write a lengthy defense of NCSoft's games, but who gives a fuck what you or I think of them. They have millions of subscribers. In a discussion about the future of the MMORPG industry, that should be enough.

  13. Re:Richard Garriot: Industry Burnout by Chris+Mattern · · Score: 2, Funny

    > By your logic, Sam Walton must not know anything about the retail
    > industry because he hasn't worked in a store recently, or because
    > his stores are full of cheap crap.

    Actually, I think Sam Walton doesn't know anything about the retail industry because he's been dead for about 14 years now.

    Chris Mattern

  14. Re:Five companies? by Poltras · · Score: 2, Informative

    Markov chains... this guy has got a +4 Interesting only parsing the summary and googling off, automated process. Name is an anagram. :) Statistics at its best.