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Tag: video game industry
Will the Next Generation Console be the Last?
As the video games industry evolves, so does distribution of video games. Recently, digital downloads have become the main form of distribution for all games. It ranges from indie titles to AAA games. Ubisoft‘s CEO, Yves Guillemot, predicts the next generation of consoles will be its last. Guillemot’s belief is that cloud-based streaming services will dominate the gaming industry and games will be available on any screen rather than console exclusive. Although streaming games aren’t common, Guillemot believes as technology advances, it’ll become the mainstream.
Microsoft spoke to Variety that gaming is about having the ability to access your game from any system. Smartphones and tablets bring in the highest profit for gaming companies and it can be argued that the growth is due to the ease of accessibility. Being able to play your games on a handheld from anywhere is consumer friendly than buying a video game console for dedicated players. Guillemot stated that streaming “is going to help the AAA game industry grow much faster…we have to work on the accessibility of those games to make sure they can be played on any device.”
Whose on board?
While Microsoft and Ubisoft see this as the future of gaming, Nvidia is already taking steps to start streaming video games to any computer. Nvidia announced their beta streaming service, Nvidia’s GeForce Now, this year at CES. It’s designed to offer digital games to even basic computers. It will even port your Steam games to GeForce Now so that you won’t have to repurchase your games. The games run properly as its stream from Nvidia datacenters throughout the United States. 
Phil Spencer, Executive Vice President of gaming for Microsoft, is looking towards different ways Microsoft can do for gaming. They have a unique form of distribution as they sell computers and video game consoles. Spencer stated, “I care less that people can play Minecraft on an Xbox One, but that people can play Minecraft no matter what console or device they have in front of them.” Since 2016, Microsoft stopped announcing the sales numbers for the Xbox One. While clearly doing worse than the PS4, Xbox has tried alternative distribution of games such as cross distribution with the Windows Stores and Xbox Live and their stellar backwards compatibility. “I look at investing into three key areas: content, cloud, and community – that is, making great games, making the experience of accessing and playing them better and improving things for the players overall. It helps lead gaming for everyone – not just Microsoft – into a better place for everyone.”
What about PlayStation and Nintendo?
One example of streaming being utilized is for Resident Evil 7: Biohazard for the Nintendo Switch. Although there are physical versions, the Japanese exclusive port will be a stream version only. This may be a taste for things to come. However, Nintendo launched the Switch last year to rave reviews and has sold more than 1 million units in a year. The Switch is a unique console that can be a handheld and console. PlayStation didn’t comment on the trend towards streaming. However, John Kodera, the president and CEO of Sony Interactive Entertainment (SIE), stated that the PlayStation 4 is in its final phase for the life cycle. He also mentioned an interest in handheld gaming rather than streaming service. Hopefully, they’ll do a better job for their next handheld after the PS Vita which recently stopped manufacturing physical games.
Streaming Pros and Cons:
It cost less for companies as they don’t have to pay for packaging and discs. Video game development has become more expensive. A prime example is God of War (2018) which cost $44 million. This also saves money for companies. Retailers currently take a cut of the profits of $15 for new video game sales. The cost of making, packaging and shipping game discs to stores cost $4 each. Finally, not all games sell, so the expense of returning unsold inventory eats up another $7. A Con would be for consumers with Wi-fi issues. If you have a poor internet connection, your gameplay will be choppy or have a low framerate.
Do you believe the next step in delivering games is streaming?
Sources:
PlayStation – John Kodera talks about PlayStation 4 life cycle
Game Giants Podcast 4.5 (4): Why we are interested in working in the Gaming Industry! Marketing, Audio creation, and E3 game releases
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Interview with Nobuo Uematsu (Final Fantasy)
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Benjamin Le: Newsforgamers.net
Jairus Cambe: http://www.jairuscmusic.com Jairus C. Music
Video Game Growth and The Need for Transparency
Recently, fans of video games have become less confident in video game companies on delivering complete content. As one of the fastest growing business industry, there is a larger focus on revenue due to more investment in sales. The global video game industry is valued at $100 billion. There is expected to be 2.2 billion gamers throughout the world by 2018 based on Newzoo‘s analytics. With a larger focus on mobile game revenue, triple-A games have to find alternative methods of continuous revenue to meet investor demands.
The biggest game companies, Electronic Arts and Activision Blizzard have consistent in publishing huge games and the largest revenue generators. They are also infamous for the micro-transaction that they have added to their games such as Destiny 2 and Star Wars Battlefront 2. Their infamy has made many gamers view them as greedy companies. We want to believe that the industry is more focused on delivering good games rather than money because it is considered a unique medium and product. More gaming companies are trying to disguise their MTX methods in triple-A games but the trend has continued on for so long that it is very obvious.
Destiny 2 and Star Wars Battlefront 2 are both recent games by Activision and EA that were known for influencing players to rely on micro-transactions to unlock more of the game’s content. 
The games received harsh reviews from players (mainly Star Wars Battlefront 2) and the uncertainty of the companies response leave players angry. Whether its the drop rate of exotics in Destiny 2 or the difficulty of unlocking heroes in Star Wars Battlefront 2, gaming companies need to be more transparent with its audience. The concept of DLC content is still negatively viewed but when developers create quality downloadable content or are more upfront about what is on it, gamers would be more accepting.
Popular games such as Titanfall 2 and The Witcher 3 were upfront about their downloadable content to their fans. Respawn created payable cosmetics while CD Projekt spent time on creating immense side stories. While we shouldn’t expect all games or companies to create similar quality content, both companies announced their plans prior to the release of the game. As a company, you should treat your potential audience with the idea that they are aware of the current paterns of the industry. You can still cater to a casual audience while also maintaining a better image to a more “hardcore” audience.
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