I have been a bit disappointed with gaming in recent years, and I am starting to wonder, are we moving towards the next video game crash? For those who don't know, there was a video game crash in 1983 in the United States. This was long ago, when Atari dominated the market. The main reason for the crash was a supersaturation of bad games. E.T: The Extraterrestrial is the most shining and well-known example of such disasters.
Video gaming has a lot of problems these days. In my opinion, these problems are (in no particular order): oversimplification of gameplay features, overly long console hardware cycle, sequels that fail to live up to predecessors, DRM, high prices for low content, underwhelming DLC nickle and diming customers, games fall in price too quickly, too much emphasis on the casual gamer, and buggy releases. Are there pros to gaming these days? Sure. Digital distribution has helped support independent game developers. The indie scene is strong these days, and it seems to offer most of the innovation in todays gaming market.
I doubt that a video game crash would be anywhere near as bad as the 1983 one, simply because the industry has grown to such a huge degree since then. I do think that a large slide could happen if a number of factors came together. Two quarters full of disappointing releases, followed by a poor holiday season could build some major momentum to a video game slide. Casual gamers are the focus these days, but casual gamers are a fickle bunch. Since they aren't very serious on gaming to begin with, they may be quicker to abandon the hobby than a core gamer.
How would the PC segment handle a video game crash? I think PC gaming would weather the storm better than console for a couple of reasons. PCs are important for running businesses, and have many uses beyond entertainment. They are always going to be around in one form or another. PC also has more independent developers. Being the fuel of innovation and having small development budgets will be key to surviving any sort of video game crash.
I am hoping to start some intelligent discussion on the possibility of a video game crash, and its possible effect on PC gaming. I don't know about the rest of you, but I am getting tired of being bent over with high prices for poor content, buggy releases, crap DLC, DRM, and oversimplification. I suspect that I'm not the only one.
Falconoffury
First, no I don't think we're going to see anything that could reasonably be compared to the situation in 1983. However I do think we're going to see some significant changes in the games industry in terms of how games are made and how games are sold. You mention a number of frustrations you have with the games industry today, however I fear that a lot of those are the result of the changes already taking place rather than what will cause the changes to come about.
What I do think we'll see over the next 5 or so years is an end to (or at least sharp decline of) the traditional $50-60 titles. I think we're going to see a far greater focus on alternate payments, free to play + micro transactions, free to play + dlc, subscription based games and so on. I think once the current console generation starts to die out, so will traditional games. They won't disappear all together but the 50-100 million dollar projects will be limited to the few biggest brand names (Call of Duty, Warcraft, Battlefield, Halo, Grand Theft Auto). New franchise are not going to start out as big budget games in most cases, instead new and untested game genres, titles and concepts will start out as indie / downloadable / gameapp / facebook games.
Things I think we'll see less of:
- Big block buster franchise. I think the ones we have now will increasingly be milked out until the general public lose interest (much like what's already happened to Guitar Hero and Rock Band and what I think we're currently seeing Call of Duty go through). However I'm not sure if publishers are currently all that keen to risk the huge costs associated with trying to build up a new, untested, franchise from the ground.
- Long games. It's generally not a strong selling point. Customers seem to be more than willing to pay for 5-6 hours games. Offering a 10+ hours game doesn't seem to generate a lot more interest. Considering the additional development cost associated with longer games (and that the longer the game the longer it might be before the customer is looking to buy another title), I don't see games, on average, getting any longer.
- Games that pushes the technological limits. Right now it doesn't seem like really exploring the technological limits is a very good investment for game developers. Sales seem to show that superior graphics, AI or sound tend to be a relatively minor factors in what sells. The most successful games overall are all games that play it safe in terms of graphics (The Sims, World of Warcraft, Farmville on the PC. Halo, Call of Duty, Mario, Pokemon on the consoles). It dosent mean that there's no successful games that are also pushing the envelopes (Uncharted 2, Gears of War and KillZone on the consoles, Crysis and Total War on the PC), but given the high production cost to truly push the upper limit, it seems like publishers are better off aiming low, cheap and safe.
- Platforms. After the current console generation, I'm not sure if we will see another generation similar to the what we've been seeing for the last 20-30 years. I think we're much more likely to see online based systems or services like OnLive, STEAM, NetFlix, iTunes, Xbox Live moving into the role previously based on the available hardware.
Things I think we'll see more of:
- Indie games and developers. The Indie scene has really exploded the last couple of years as different venues for smaller games have appeared. With the growth of online purchases, STEAM, Xbox Live, PSN, app stores for apple, kindle and android devices there are now so many ways for small games to reach an audience. The real question is going to be what the big publishers are going to do in order to try and guarantee a piece of the profits?
- DLC. DLC is an incredibly effective way for publishers to increase profits from popular titles. DLC tend to be cheap to produce since more of the assets are already in place: the game engine, lots of the art assets, the core game design, With STEAM, Xbox Live and PSN, it's easy to sell to the consumers, it also makes it a lot easier to re-sell the original game again by releasing 'Complete' or 'Gold' or 'Game of the Year' versions where you can get the game back in front of the customer by re-packaging the original game with the DLC and a unique item or level.
- Free to play + ???. The more games we see offering a free to play option, the harder it's going to be for other game to compete unless they are able to offer a free version. Of course there is no such thing as a game that truly free to play. The game makes are aiming to make a profit in one or more ways: Advertising, Micro Transactions, DLC, Premium subscriptions.... I expect that we'll continue to see more and more free or cheap games that will offer the first level or two at a major discount and then charge extra to allow you to access the rest of the game. Compared to movies, it would be like changing Cinemas from charging $5 for a ticket to instead charging $1 for the first 30 mins and then charge $10 for the last hour.
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