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A New Digital Revolution
By Jack Stapleton
Smaller costs, reduced development timescales, greater freedom of expression, innovation. These are the reasons that gaming is moving away from traditional packaged software and into far more unchartered territory.
In recent years, the internet has grown from a small network of sites running at a snail’s pace to an information superhighway, an unlimited resource. Now, games developers are really starting to take advantage of what can only be described as the future of the industry.
But what does this mean for the industry?
Development costs, which in recent years have been comparable to Hollywood blockbusters, will be reduced significantly. For example, Infinity Ward’s Call of Duty: Modern Warfare 2 was produced at a cost of around $55million, and was accompanied by an aggressive marketing campaign which reportedly set publisher Activision back a further $200million.
In a time of economic uncertainty, developers cannot afford to go on splashing out on titles like this. Digital distribution allows for them to develop games at a much lower price, and it means that calculated risks are less likely to put the company into financial dire straits.
Smaller costs, coupled with the lack of necessity to compete for valuable shelf space means that developers can be much more creative with their titles if they wish to distribute them via a digital medium.
Innovation within the industry has often been criticized in recent years, as developers try to play it safe with sequels or profitable franchises. Now, thanks to services such as Xbox Live Arcade, Wiiware and the pioneering Steam, developers are starting to take risks with bold, new ideas which would have undoubtedly struggled at retail.
Steve Meretsky, a videogame designer said: “We've been moving in the wrong direction, toward bigger budgets, centralized decision making by fewer big companies that has led to more licensed games and fewer experimental games."
Reduced costs have an impact on the consumer too. Games in their current, tangible state retail in the region of £40, and this means gamers are likely to select titles which they know they will enjoy. Games distributed digitally however, generally cost less than £10, with some retailing for mere pennies.
Alex Moss, a Norwich based gamer said: “Games have become too expensive lately, especially given this recession. Being able to download games at a fraction of a price is fantastic for me”.
Having much lower price points would surely be off-putting for developers though. Lower prices mean lower profit, but this may not always be the case.
Games such as these are made at much less of a cost anyway, and as such, their profitability must take into account that development teams are significantly smaller than their big budget counterparts. Popular downloadable title Braid was the brainchild of independent developer Jonathan Blow, and was developed entirely by him. Despite this, it went on to win a number of awards, including the "Casual Game of the Year" at the 12th Annual Academy of Interactive Arts & Sciences Awards.
But does this all mean that the future of the industry rests entirely with downloadable content, or will such titles be released in harmony with their tangible counterparts?
High street retailer GAME has confirmed that it would be closing over 100 stores by Christmas 2013 due to falling sales and the belief that online will be the way forward. Only time will tell, and no-one knows for sure quite what the future holds for the industry, but if nothing else, this is a big move from the UK’s largest games retailer and one which could make or break them come the next console generation.
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