War On Video Game Exclusives

Typically, we have “exclusive” fallout from the console war which forces the hand of the consumer to purchase all consoles to play all the games they love. Many hardcore gamers are into first person shooters like Halo and Gears of War but also like their Grand Theft Auto and Final Fantasy fixes. In years prior, you’d have to invest in Microsoft and Sony’s solutions to get your fix. Now things are changing.

With these third party developers playing neutral in the war on consoles, Microsoft and Sony are forced to rely on near “first-party” titles to keep their army strong. Metal Gear Solid is a Sony exclusive and Gears of War and Halo have been Microsoft’s hype babies for a year or so now. The problem? Many of these exclusive games are not divisions, subsidiaries or in any way under the wing of the console makers.

Nintendo holds exclusive rights to almost all their hard hitting titles. Mario, Link, Zelda, Samus Aran and all their mascot style characters are designed, developed and marketed under the name “Nintendo.” These characters are all part of Nintendo’s lineup of solid best selling titles including the Metroid, Zelda and Super Mario Bros. series and all their spin-offs. Nintendo has the power to re-implement their characters into games like Mario Party, Mario Kart, Links Crossbow, Metroid Prime, Metroid Pinball and a huge array of other first party titles.

Microsoft and Sony must continue to play nice with Konami, Bungie, and Epic Games to keep their exclusivity. What happens if one of these developers “betrays” their console and starts shipping multi-platform?

Epic Games and Konami are big time developers with their own independent thinking, would they ever push away from their exclusive deals with their partners? Bungie is no longer part of Microsoft but is bound, in some ways, to deliver Halo products on Microsoft’s console (for now). If these hard hitting blockbuster titles go multi-platform the war would get bloody.

These major publishers could indeed ship non-exclusive product lines in favor of a wider audience if, in fact, the console units grow closer in sales numbers. Sony’s PlayStation 3 console slowly creeps up to the sales figures of the Xbox 360 which means publishing a title on one console may only net you 50% of the possible audience (assuming a small number actually own both consoles). Given both are “hardcore” consoles, this also means those gamers are ready and willing to buy 2-3 video games a quarter for their console(s).

Why would a publisher settle for half the audience when they can ship on two platforms and grab a bigger piece of the pie? The console developer, Sony or Microsoft, would have to bribe pay the publisher money for an exclusive or timed exclusive deal. That’s all fair in business, but what if the competition becomes heated enough that a paid exclusive pays out less than selling on both consoles?

If the major publishers backing Microsoft and Sony opt to ship on both consoles this will force Sony and Microsoft to form higher end first party development teams (or buy them) in order to solidify real exclusivity. In essence, expanding teams (in all gaming genres) like the Microsoft Game Studios to ship more games per year as a sharp weapon against the competition.

The only other option for the console makers would be to let the “exclusives” model die and develop a game industry of watered down consoles with the only major difference being the logo and design of the box.

It might be a hard pill to swallow, but the only way to hold up the highest degree of competition and first party titles is to force everyone to want to buy all consoles.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Post

Wii Friends Codes, Not PerfectWii Friends Codes, Not Perfect

Satoru Iwata, president of Nintendo has gone on record with his thoughts of the Wii friends code system. He’s a father, with a daughter, so he’s letting his own personal judgment get in the way of a good community built game system.

In talking about the open access of the Internet he said, “I as a father do not feel like allowing my daughter be engaged in that kind of world.” He’s more inclined to protect his children from the dangers of the Internet and random (often insulting) people by requiring a 1:1 paring with real friends.

For many gamers the Wii friends code system is far from perfect. It’s so far from perfect its a barrier to entry and any form of fun on the console platform. Nobody is against protecting their children, a parent will be the first to admit they’re desire to protect their kids over all else, but clearly someone isn’t thinking outside the box on this topic.

The only way to protect your children is to enforce a large numeric key which you must hand deliver (or e-mail) to your friends in order to play? We’ve got more creative enforcement in child safety on our TV sets using the VCHIP which allows parents to password protect certain television programming.

(more…)

Trading Used Games, Like Fraud?Trading Used Games, Like Fraud?

David Braben, founder of Frontier Developments, says retail outlets that buy and sell pre-owned games are “essentially defrauding the industry.” Although multiplayer gaming might not be a huge threat, the single player experience in games may die out because gamers play the game quickly and resell it back to places like GameStop for others to buy.

Developers don’t get a dime when a game goes traded, many gamers will “share” the single player experience with a single copy of the game by reselling it over and over. The end result, retail outlets make a good penny for marking up old games while developers see nothing. This is really how game retail outlets survive because the margins on video games is so damn low.

The story has been heard before, developers want a piece of the action so they’re taking steps to entice people to keep the game with renewed downloadable content on old games; you can’t experience the new content without keeping the game around longer. In the world of low margin games, high cost development and short-lived story lines the solutions to this problem aren’t exactly obvious.

Braben’s idea of a solution is to offer two versions of the game, a not for resale/rental version at a high price, say $160, and a low priced version that cannot be shared (heavily DRM’ed?) for $50. In essence, gamers would no longer be able to trade in games because the idea of spending double for a game so you can resell it makes no sense to most gamers (including myself.)

(more…)

Episode 519: Red Dead ArrivalEpisode 519: Red Dead Arrival

Jonah and TJ finally got to play Red Dead Redemption 2, and discuss how great it is and how disappointing it is at the same time. Great and disappointing can also describe the Gaming Flashback with 2008’s Mirror’s Edge, along with its awesome theme song, which Jonah is addicted to.

The news this week includes:

  • Nintendo recommits to “keep the business going” for 3DS
  • Capcom has “high expectations” for Devil May Cry 5 and Resident Evil 2
  • Pachter: Red Dead Redemption 2 coming to PC in April

Let us know if you’ve been playing Red Dead Redemption 2.