A special thanks to MacRuckus for getting the ball rolling. I'm not going to beat on a dead horse here, honest.
With all the furor over the current situation, I think its time we perhaps looked at this from another angle. To do so, it might not be a bad idea to revisit the past a bit to an older story Gamasutra ran about PR and the Game Media. Read it first, then come back - its relevant, I promise.
Done? Good.
There are allegations and numbers being tossed about right now from more sources than I care to cite, but in the end, Gamespot's position is the same as any content or service provider with an ad-based revenue scheme. No different than television, magazines, newspapers or radio. As someone who works at newspaper who's sole form of revenue is through advertising, I can readily appreciate Gamespot's position regardless of how accurate the rumored details are(n't). We (the paper) do our best to provide the best content we can, to have as much integrity as possible, because that is why our readers make us a regular part of their week. The quality of our content plus our reader base gives us the means to go to business and say, "We can help you to reach x-many thousands of people every week if you advertise with us." They see our product (the paper) and circulation, work out a marketing plan with one of our sales reps, and enter into an advertising contract with us.
We have to keep them happy. We have to keep our readers happy. And we have to, at the very least, break even in a competitive market; there are two other weeklies, one bi-weekly, plus the daily. And that's just the locally produced stuff, nevermind papers from other parts of the state or with nation-wide distribution as well as the TV news, radio news and internet! Its *not* easy (especially since the economy has been belt-tightening, most businesses cut back on advertising first), and nobody wants to think of the "l" word (hint: its also known as "downsizing"). We don't want to lose advertiser money, period.
Similarly, Eidos has spent millions making Kane & Lynch and don't want to lose money either. "Low" reviews like they got from Gamespot, EGM, IGN, Game Informer, Game Pro, Gamespy, Edge, Gamer 2.0 and others does not help them in the least. While probably not as urgent as Konami and Metal Gear Solid 4's 1-million first day sales requirement, not breaking even is painful for any publisher financially. To get those kinds of reviews after paying out so much in marketing must be a bitter pill indeed.
Which brings us to the revenue model itself; advertising. There are many products out there that are either partially or completely subsidized through advertising; pick up a newspaper or magazine, and there are ads plastered throughout. This helps keeps the price of the publication down for the consumer by subsidizing it, allowing it to be sold for less than its full price (or even given away). Television works on a similar model as does radio. Gamespot along with many other gaming news and download websites are primarily ad-supported while offering paid subscriptions (with additional perks). And now? So are games.
Some games are using advertising to pay for a free experience, be it the game itself or its online component. Quake Wars' online play is ad-supported. Sometimes its alone, sometimes its accompanied by an additional revenue model; PSN, NCSoft's Exteel, and some of Acclaim's MMO's are "free" due to microtransactions and (planned) advertising, Gametap offers its free service through advertising as well as its subscription service.
A lot of Dot-Com era companies offered "free this!" and "free that!" before the bubble burst. A fair number of the non-retail ones attempted to utilize advertising revenue to pay for themselves and failed. Likewise, boycotts have been used in the past in order to influence advertisers to pressure content providers (such as television) when special interest groups disapproved of content. Content providers scramble to please advertisers. The more the game industry tries to rely on advertising revenue to keep things free or inexpensive, the more they expose themselves to the weaknesses of the model. In my personal opinion, solely (or primarily) advertising reliant games are at great risk for this, and their developers/publishers must figure out a combination revenue model that can help them weather through advertising related issues. The addition of a modest subscription (Live, Gametap, MMO's and game services) as well as microtransactions (PSN, Live, many free MMO's) would go a long way to providing stability and security against hesisitant, beseiged and vengeful advertisers.
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