*Sigh*...alright, I'll explain how casuals are uintentionally damaging the market:
Well, let's use a metaphor here...I don't know, cake. Alright, so let's say that a whole lot of people eat cake. Not everyone eats cake, but a whole lot of people do. And for that reason, since there's a lot of people who eat this cake, it's become a booming industry. Now, let's say that there are some people who eat all kinds of good cake, the hardcore cake-eaters, and then the people who don't eat very much cake, and only eat the cake that's very popular, the cake that their friends like. Now, let's say that the latter outweighs the former 3 to 1. What's going to happen? Well, because most people buy cake, but not very much of it, the kind of cake that sells won't just sell, it will sell EXCELLENTLY. Up into the millions. However, remember that these people don't buy very much cake, so they'll just buy what's popular, meaning that the unpopular cake will sell almost nothing. Therefore, there will be a huge, huge gap between the successful and the unsuccessful. There won't be any 'mildly successful' or 'mildly unsuccessful'. It's a direct hit or miss, a gain or loss of billions. The baker with the successful cake will be able to afford new ingredients, it will be able to improve all the cake that it makes with the sheer, ridiculous amount of money that it has. The unsuccessful baker will have to get the better ingredients, too, just for the sake of competing, just so that they have a chance at success. However, they won't succeed. The successful baker will just improve the cake that they've already made, and brand-recognition will get everything to buy their cake. The unsuccessful baker will never be given a chance because most consumers only buy 1 or 2 pieces of cake a year, and when they do it will be a kind of cake that's already successful.
Okay, horrible analogy, but you get where I'm coming from here. The problem with the games industry, in my mind, is that there's a huge gap between the successful and the unsuccessful. It makes everything a lot harder for developers. The reason for this is because of casuals, who only buy the popular games that everyone else has already bought, and buy 2 games a year at the maximum. This reinforces the success of the successful and reinforces the failure of the failures. The industry may very well end up crashing because of it.
AquaMantor
That is true in most every industry. I attribute it more to the effect of positive word of mouth than casuals in the sense that you use the word (you and I have different definitions of the word, but I understand your definition). Great word of mouth being a big deal isn't a trend restricted to games or to casual gamers. Besides, to run with your cake baking analogy, think of the industry as a series of bakeries, most of which least a couple bakers. The success of a baker's cakes puts more money in the pocket of the bakery. Of course the bakery is going to ask the guy to make more cakes, but they are also going to offer opportunities to other promising bakers, because the only thing better than 1 million selling cake is 2 million selling cakes. Also,cakes don't need to sell millions (or even a million) to be successful. Games like Katamari Damancy, Romance of the Three Kingdoms and the NIS tactical rpgs don't put up huge numbers, but they are clearly profitable, judging by the number of games in the series.
To break away completely from the cake analogy, XBL and PSN offer developers ways to distribute low cost games for small amounts of money, and XBL and PSN also offer offer demos of offline games, and demos are a great way to counter consumer conservatism (there is nothing like hands on experience). On most systems, new franchises and developers are rising all of the time (the Playstations has been dominated by different franchises and developers each generation and I doubt that this generation will prove the exception to the rule). While every industry trend doesn't thrill me, I am not worried that any trend threatens the industry.
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