“Casual is going to destroy us all,
everything about video games will be ruined/overtaken/whatever
because of casual!”
This is, sadly, not much of hyperbolic
statement as a paraphrase of some otherwise rational developers and
businessmen in the gaming industry today. Look how fast casual is
growing, it's new and different and therefore a threat.
I am reminded of pretty much every new
format or business model introduced to every other form of
entertainment in history. Recordings will ruin live music. Tv will
ruin movies. Remember when reality shows were going to be the only
thing left on television?
It's kind of sad to see that video
games, only a decade ago so innovative and young, now have old men
too set in their ways to see new opportunity. But this brings up the
question of what that opportunity is, and how things will change
because of it. After all, movies and television did eventually spell
the death of the radio drama. On the other hand video never did kill
the radio star, so what exactly will “casual” do?
Quite frankly, I think “casual” is
just a generic and overly broad term that encompasses too many things
right now.
One thing it covers is a new market.
Those who just want to play a video game for a few minutes a day, or
who just want the type of games from the era of duck hunt and tetris.
Simple, straightforward games they don't really have to invest in.
Both hard core audiences who just want a distraction on their phone
and those who wouldn't spend $60 anyway are the types that will be
buying “Fruit Ninja.”
I don't think this is really going to
compete with Call of Duty. If you look at video game sales for 2011
you could be forgiven for thinking that this was the case though.
Hardcore titles are seeing a large drop while casual soars, it must
be connected right?
Well, you'd be forgiven for thinking
such if you hadn't the slightest education in economics. Those who do
will note that except for developing countries (which are still too
poor for the most part to afford hardcore titles in large numbers
anyway) the world has had a huge economic downshift.
Considering this, and that video games
are entertainment it's little wonder sales of expensive games have
gone down. The U.S. Has seen 9%+ unemployment for years, Europe has
seen a slump and now faces a crisis, Japan has been in both financial
trouble and stuck in a creative slump for years. The only thing to
wonder at is why exactly anyone is at all is surprised that $60
entertainment products have faced slowing sales since the beginning
of the downturn at the end of 2008.
At the same times the rise of “casual”
titles like Farmville and Angry Birds is entirely unsurprising.
Movies and other, cheaper forms of entertainment have always been
seen as recession resistant, so the ability for cheap video games to
rise is quite unsurprising.
In fact the video game industry should
be thanking such companies for getting people to pay for such at all.
Free “flash” (and otherwise) based games of similar or even
surpassing quality (if not quantity) compared to such games as Fruit
Ninja have been available for free, en masse, for over a decade. That
companies can now charge for such things should be considered nothing
short of remarkable.
Micropayments and Freemium
This is also sometimes falls under the
term “casual” but is thankfully drawing away. There is, after
all, little to be called casual about The Lord of the Rings Online,
Team Fortress 2, or Heroes of Newerth. Freemium is just another new
business model, and if it works better for some titles then more
power to those who succeed with it.
I take it as a great sign that there's
still enough competition in the business of video games for new
business models to be readily embraced. And while the adoption of
such is still sadly slowed down a bit from the heyday of video game
innovation, the widespread adoption of such, or at least attempts at
adopting it, could certainly teach other industries a thing or two.
Personally I find it amazing that I
can't find any tv show episode I want at a reasonable price, if not
free with ads, online and available whenever I want it.
But, to any saying “all games will
now be this way” I'm tempted to laugh. Remember when everything was
going to be an MMO? I certainly do. And while there are certain types
of games that would do much better to switch towards such a model, I
doubt the next GTA will be doing such, nor does it need to.
Movie theaters still exist despite the
panic of home videos destroying them when VHS first came out. So too
will the sixty dollar product survive. In fact the more options for a
business model that developers have the better. While in game ads
might be pretty much dead in the water for most types of games, it
appears freemium will live on and healthy for a long time to come.
And who knows, perhaps there is a way to combine “freemium” with
$60 purchases, I say the best of luck to any brave enough to try.
Expensive Casual and Competition
Another noted rise is that of expensive
casual, which I find a strange notion. Not because you can sell “Just
Dance” for $60, but that companies would so readily believe such
high margin games can continue unabated.
I would merely point to Guitar Hero and
ponder the viability of Dancing and Fitness games to continue to sell
like they do. How much advancement or even latitude for such things
are there? Both “Zumba, Fitness” and “Just Dance” already
have strong competition. And if history is any indication the market
for such will quickly be exhausted.
But this of course isn't all there is
too “expensive” casual. But the real key to this all is
competition.
Welcome to Capitalism
Competition is, last time I looked, a
large reason “hardcore” video games have gone from less than
million dollars to an average of over twenty five million dollars a
piece to produce (at least for AAA titles). With the very fast advent
of casual and “social” titles the initial investment was low.
There was no competition to be had, people were just guessing at what
they were even doing.
But billions of dollars have suddenly
sprung up around “Social/Casual” or whatever it is that we are
calling it now. Billions of dollars means competition, it means those
large profit margins are going to be crushed beneath the ever turning
wheel.
Not six months ago I read an interview
with the head of a studio espousing that Zynga couldn't be beat for
facebook games. EA's introduction of “The Sims Social” at the
number 2 spot in all facebook might just have made him eat those
words, but then I doubt he was thinking of the kind of money a
company like EA can bring to bear.
The point here is that Rovio, Zynga,
anyone can be beaten. As an industry social games have just begun,
and the monetized return of simple, straightforward games hasn't
advanced much either.
What you play and where
The last thing I find interesting is a
comment by a man I would otherwise have thought intelligent. “The next winner of the console cycle
will be the one who figures out why X-Box Live Indie Games didn't
become the next ios app store.”
Well, I just mentioned why casual
titles have risen. Let's go over it. A: The world is in a recession,
cheap entertainment thrives. B: It's finally been noted that the
appeal of such “Tetris” like games never actually went away, and
with smartphones and app stores there's now a solid way to monetize
such. C: Social games and otherwise are essentially a new market.
Now, the only thing this comment
connects to is B, and frankly I think this problem falls into a
“screen size” issue. That issue is both simple and an incredible
amount of people seem to be unaware of it. So what is is? The bigger
the screen, the bigger the experience people want.
It is, really, that simple. Do people
watch movies on their i-phones? If we are speaking of a general
audience, no they don't. People watch them in movie theaters, they
buy giant tv's to watch them on. But by the logic many in the video
game industry go on they shouldn't. Their smartphone has a screen,
they should do everything on that! It only makes sense.
But of course it doesn't. People still
buy big screen tv's, and they still watch movies and the super bowl
and etc. on them. In fact, for video the bigger the experience the
bigger they want the screen. Most will watch tv on their big screen
tv's, but a few more people will watch them on their smartphones or
etc. Few will watch funny internet videos on their giant plasma
screen, but hey there's no problem doing that on their I-pad. The
smaller, more casual the experience, the smaller and more portable
the screen size.
I'd be easily willing to bet the same
principle holds for video games. Angry Birds on your giant plasma?
It's not going to feel right. I doubt the title would have sold
nearly as well on X-box Live Arcade even if it was the same $1 price
as on mobile app stores. The wrong screen size just doesn't work for
people.
But what about “Carnival Games”...
well first off that's going to be selling for a lot less next
generation. If only because balance theory will allow people to pay
far less for it, or it's competition if the “Carnival” guys don't
lower the price themselves. Secondly, it's still a bigger experience.
It might not be “Gears of War”, but it's still more akin to a tv
show compared to Angry Birds “funny internet video”.
One last note on something interesting,
and that's control schemes. Geometry Wars relies on very precise
inputs. Controls are an entirely other concern, something other than
“screen size” that will help define what type of game is
successful where. And so while the “screen size” effect might
affect video in a large way, it will not be the only factor that in
what video games sell well where. In fact I'd just call it something
to keep in mind.
Conclusion, Narrow vs Broad, and Part 2
Large titles will still exist, and a
(hopefully not THAT distant) resurrection of fortunes in the global
economy will bring that back into focus and growth. Meanwhile for
casual/social, the sector would be prepare to go through an economic
principle best described as “narrowing”.
Let's take coffee as a metaphor. When
it was first introduced as a product there was pretty much only one
way to get it. You either wanted it that way or you didn't. Over two
hundred years of development later we have drip, latte, espresso,
mocha, americano, french press, iced, and this doesn't even cover the
blend, roast, caffeinated or etc.
The point being that all markets start
out with a narrow set of products targeted at a broad audience. And
as they are developed the set of products will inevitably broaden,
each targeting an ever narrower audience. And while certainly there
will be products that have a larger audience appeal than any other,
it will still never seem as broad as that first, glorious
introduction.
The same will happen with social/casual
games. And the race to see what that product is, as well as to be the
next “Call of Duty” of such a market will be hectic indeed. Best
of luck to all the contestants.
But this post can get even more
rambling! A part 2 will be coming, connected to this in a way.
It basis is an interesting question:
Does spending more money on games actually making them anymore fun?