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

Episode 768: GrandiaEpisode 768: Grandia

This week the guys discuss Rockstar is now under pressure from UK Parliament as protests grow and 220 employees demand fired workers be reinstated, new Red Dead Redemption rating suggests remaster on the way to PS5, Xbox Series X/S, and Switch 2, PS6 launch “later than expected” and region-locked, LEGO The Legend of Zelda set coming in 2026 (the actual LEGO, not a videogame).

The Gaming History is all about the classic JRPG Grandia.

The news includes:

  • Xbox boss responds to Valve’s new hardware, fellow Microsoft employee jokes it looks like those “rumoured” Series S leaks
  • Ubisoft postpones its quarterly financial report at the last minute and halts stock trading
  • Sony says Marathon will still release by March 2026

Let us know what you think.

Episode 302: Just a TwosomeEpisode 302: Just a Twosome

This week Jonah and Jordan go it alone without Paul, which is unfortunately since the Gaming Flashback is the classic Nintendo 64 title Paper Mario. It might be just as well as the events of the last week made the crew ramble on about the industry at length, making the post much longer than usual.

This week’s impressive news items:

  • John Riccitiello steps down as CEO of Electronic Arts
  • Firaxis announces Brave New World expansion for Civilization V
  • Will fans back an Alice 3 Kickstarter, asks American McGee
  • Lord British explains Shroud of the Avatar‘s offline gameplay and DRM
  • Facebook of Italian automobile company mentionsGran Turismo PS4″
  • Team Meat sitting out on developing for next-gen consoles

Lots of Reader Feedback, but no Question of the Week this week – just too much show.

Episode 319: Someone Is Butt-Hurt About MicrosoftEpisode 319: Someone Is Butt-Hurt About Microsoft

There’s no Gaming Flashback or Gaming History, but there is a crapton of news this week on TD Gaming Podcast, which Jonah Falcon and Jordan Lund eagerly read.

That, and Jordan really wants to know what you have been playing.

The news this week includes:

  • Microsoft officially announces indie self-publishing, to be unveiled at GamesCom 2013
  • Phil Fish explodes on Twitter, cancels Fez II in a huff
  • Shadow of the Eternals back on Kickstarter, no longer episodic
  • Neil Gaiman has announced his first videogame, Wayward Manor
  • Lanning: Nintendo will be around for “100 years,” but probably not Zynga or Microsoft
  • Activision-Blizzard buys out $8.2B of its own stock from Vivendi
  • Paid subscribership of World of Warcraft down to 7.7M

All this and Listener feedback.