Is This The Golden Age of Gaming?

Entertainment Software Association (ESA) president Michael Gallagher called this the “Golden Age of Gaming” during his E3 keynote address. Calling out innovators like Nintendo who have “helped revolutionize our industry” and Sony’s Home initiative.

The keynote fell on the ears of fifty or so people who filled the large room awaiting his talk. Gallagher believes we’re in some of the best years of the gaming industries life based on… sales figures, technology and innovation?

If we’re in the Golden Age of Gaming we might as well pack it in now. Text book definitions of the phrase are defined as “the first and best of the four ages of humankind; an era of peace and innocence that finally yielded to the silver age.”  Or, “the most flourishing period in the history of a nation, literature, etc.” (dictionary.com)

By that definition, we’ve seen the best to come and everything from here is downhill. When a person retires from work they’re often said to have reach the “golden age” of their career. Is this the correct message to be sending to the industry? That we’ve done it all and now it’s time to sit and relax.

In terms or progress it seems we’ve only just begun to realize the potential of the growing industry. We’ve learned there is a place for intense graphical games and fully interactive motion-sensitive product lines and accessories. We’ve broken the mold on game controller designs with the Wii controller, Wii Fit, Rock Band, Guitar Hero and keypad controllers like the 360 attachment.

Nothing has been perfect or “at peace” in the industry. Nintendo is releasing the Wii Motion Plus accessory to increase their sensitivity in their games and, overall, fix the limitations of their Wii controller. Sony continues to work on scaling and global presence in Home while Microsoft continues to update their Xbox Live solution with new creative community features, not mention the failure rate on the 360.

The console realm is far from perfect and the PC gaming realm is an ever growing technological race of bleeding edge graphic cards and powerhouse processors. PC’s and consoles shrink their technology, conserve power with new advances and are still learning how to handle multi-core designs. How is this the golden age of gaming when we’ve not yet found our true potential?

Sony has said they’re working on a 10-year game plan and you can only “imagine” what the PS3’s going to have for gaming titles in two or three years. They’re jazzed for the upcoming 2009 and beyond; if this was truly the golden age of gaming we’d all be sitting back sucking on grapes handed to us on golden platters by servants.

For Gallagher to even suggest we’ve hit our full potential shows he’s not looking at the big picture. Perhaps he meant E3 has hit its golden age?

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1. Publishers Spend Lots on Marketing

A great example being GTA IV, hardcore gamers have a short attention span and live on hype more than physical games. Today, games live in press releases, demos, cinematic and live gameplay footage at conferences and on the web. Then, a game hits the shelves and sells millions of copies for a week or two before it’s forgotten. Publishers have marketed their game well, spent thousands on conference booths, streaming video bandwidth and rushing game demos through development and testing cycles early to get eyes on their titles.

Let’s face it, gamers that scrambled to buy Grant Theft Auto IV have moved onto the next big title or have decided to go outside for some fresh air (probably the former). Hardcore gamers consumes games like candy, sells them off for store credit and works towards their next purchase.

2. Publishers Want Loyalty

DLC breaths new life into old games, making them remain valuable for months after the hype and excitement has died. We’re now spending USD $60.00 for some of these new “current generation” game titles for a few days or weeks of excitement. Free downloadable content brings new reasons to play our “old stale” games and allows us to feel comfortable about our 60 bucks spent on a title.

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3. Publishers Hate Used Games

Publishers are helping stick those games in the hands of the gamers for a longer period of time by supplying free add-on packs. Why would you re-sell your precious title back to the store when you could hold it and wait for potential DLC?

Publishers receive no revenue from the resale of a video game so it’s in their best interest to keep it out of the used markets. If there is a chance your beloved game will receive new features, at no cost to you, wouldn’t you hold off from selling it to see what’s coming?

Once a gamer has sold their title to a retail chain for pennies they’re unlikely to re-buy the title with the typical 80% markup when DLC arrives. They may opt to borrow a friends copy or rent the title rather than re-purchase it; neither fair well for the publisher in terms of revenue.

Games are expensive. Consumers must be wise to the best value in their video game titles and publishers want you to choose them for your gaming entertainment. Competition is high, profit margins are low and the market is all about sales volume. Publishers want repeat customers, people who feel their games are valuable before and after the purchase and are willing to share their loyalties with others.

Do you collect old console games, or do you sell them off to game stores and/or eBay? Would you consider holding off a sale if there was a great chance of new downloadable content?

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