Future Gaming is Family Gaming

Gaming is mainstream and growing, this is obvious to most video game enthusiasts. Even Jack Thompson has failed in taking down the industry in his efforts on video game violence and general FUD. In order to survive in a mainstream environment publishers and developers are going to target a broad demographic to make them as much money as possible.

The game industry, like other entertainment avenues, is a risky business in which publishers have to pick titles they “predict” will do well in the market while passing on other “risky” propositions. While a the good ol’ shooter title will break sales records, the market cannot rely on one genre to carry the business especially considering many of these titles are forgotten within two months from launch. Publishers are going to be forced in expanding their reach to “family games” in order to finance new blockbuster titles.

Enter family gaming.

The idea of designing a “family” game isn’t new to our industry, as a matter of fact, it’s one of the oldest cornerstones of video game entertainment. Pong, Centipede, Pac-Man, Space Invaders and many other classic titles were no doubt playable by the entire family, but things have changed. We’ve evolved from hit titles like Donkey Kong to hit titles like Halo. We migrated from 2D gaming to full 3D adventures and pixel graphics to pixel shaders, but where do we go next?

Nintendo has the correct vision for the next stage of the video game industry and it involves bringing the entire family into gaming. It’s mainstream, right? Mainstream isn’t your dad playing a video game in the basement after the kids go to bed, it’s replacing Sorry with Spore and bringing out Wii Sports and having little family tournaments. We must respect what the big titles have done for the industry in merchandising, novels, sequels and spin-offs but we should not rely on them to carry us into the next generation of gaming.

While Nintendo’s vision provides evidence with cash in the bank, they’re lacking the library of games to keep the console living and breathing six years down the road. Novelty? Call it what you want, it got your grandmother gaming! The future isn’t all about Nintendo, however Nintendo has proven to everyone in the industry that games involving the entire family are making money and doing it quickly.

Soon we’ll start seeing more spouses changing their tune from, “games are stupid” to “let me try.” As one of our podcast hosts found in episode 95 of our Gaming Podcast during his review of LittleBigPlanet, his wife pulled the controller from his hands to give the game a try and… liked it. As member ATC 1982 found when trying the A Kingdom for Keflings demo, the family might actually like the game which could, in turn, cause him to purchase it.

“The new OXM disc has the demo and I am surprised by it.  With all the new console games I might give my console games a rest and pick up this arcade game.  Even though your a giant managing people and working mostly.  For me it was addicting and my daughter was enjoying it as well and now wants me to build her a princess castle. The wife likes the music, but is unsure.  With the aid of the avatar system in play this might be one game that will be a sleeper hit.” (gamingpodcast.net/forum)

Let’s face it, the average gamer is a male out in the 32 to 34 year old demographic and probably has a few kids and a wife. Many folks want to share their passion and experiences for their hobbies with their family, providing games to bridge this gap is a possible solution. Gamer dads will find themselves spending money on a game they might normally pass up just to experience their childhood activities with their family.

The casual games industry is growing rapidly and captures a broad demographic, the console industry continues to strive for huge sales records and a means to producing the best content for their respective consoles. Why sell a blockbuster hit game like GTA IV to a single member of a family when you can sell a less costly game to their entire family? The sales figures for Bejeweled smoke those of GTA because they can sell the title to more individuals without the Mature Audience (MA) restriction.

Will this mark the end of “hardcore” games and reinvigorate less violent titles? Hardly. In many ways, a video game that breaks into the household and grips the whole family may be a “gateway game” to other larger titles down the line. Many family members may never progress to hardcore titles at all, but this just strengthens other video game markets and allows them to flourish along with our core audiences.

Imagine a world where video game dads and moms can play games with their entire family across all competing consoles, PC’s and the Macintosh. When the kids go to bed, they can power off their family games and crack into a few first person shooters, in-depth RPGs or subscription based MMO.

Designing games for the entire family will financially stabilize some of these publishers that can’t figure out why gamers don’t want their eight sequel or a crappy licensed movie game. This financial stability will allow them to invest more money into block buster Mature Audiences only titles for the “hardcore gamer” and keep their share holders and investors smiling.

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Wallets Shrink, Used Game Market GrowsWallets Shrink, Used Game Market Grows

Over the last year we’ve seen developers scrambling to find “value add” features to new game purchases. Their goal is to convince the customer to buy new instead of used because developers don’t see a penny from a used game sale. While GameStop sees 48% profit margins from the used game market developers struggle to stay floating in the industry.

for-saleThis is not the fault of GameStop and their 48% profit margins because they’re only getting 7% to 20% profit margins (say analysts) on new game sales. As someone that’s run a game store online, if you’re getting 15%+ on a new game you’ve got some great hookups in the distribution channel or are buying in huge quantities.

Buying games in huge quantities to build profit margins can be a huge mistake in this industry. Gamers are fickle little creatures and they’re going to buy their top tier games for a few weeks and then sales will drop significantly. No retail chain wants to purchase a thousand copies of GTA IV (only as an example) and sell seven hundred over the first few week to be stuck holding onto a few hundred copies when the dust settles. Now you’ll have to put them on sale to get them out of the store because the hardcore gamer have already done their shopping and you’re not going to get any price protection if you’re not a major player in the industry.

Why take 7% profit margins when you can get 48% on a used game? The gamers don’t seem to mind because they’ll trade in a used copy of a sports title like Madden to save $5.00 on the latest franchise release. Gamers will buy Fable 2, beat it in a week and rush to the store to get the “most for their dollar” before the game gets stale and buy-back prices drop like a stone. Why not rent Fable 2 and save yourself $50.00? Of course, renting pisses off developers as well because they see no additional revenue.

While the economy struggles and consumers fight for their jobs, the entertainment side of life continues to grow. People would rather “cocoon” in their homes playing video games and watching movies on their brand new HD television because it takes them away from the low points of the economy if only for a few hours. History has shown us trends in entertainment during the down points of economies, it’s natural to want to get away for a bit.

But, consumers want to play these games on the cheap because their job may not be there tomorrow. Saving $5.00 knowing the store just took the title in for half the price doesn’t bother you; $5.00 in your pocket is better than in their pocket right? The fact that they just pocketed upward of 40% on the game doesn’t matter to you — it’s all about your bottom line!

While we’re bargain hunting during the recession developers are going to try and up sell you to a new copy of the game. If that means giving you special game items and features with a “one time code” upon purchase, it will be up to you to decide if it’s valuable. All the while GameStop will lock out the game industry from selling used games because 42% of their overall gross profit is from used game sales.

You, the consumer, benefits from a slightly cheaper game, bargain bin fire sales and additional game features if you do choose to buy new. The economic down turn is a great time to be a gamer, as long as you remain employed.

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.)

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We Need Another Ikari WarriorsWe Need Another Ikari Warriors

In 1986 SNK released Ikari Warriors, it had all the makings of a classic title. Cool weapons, time strategies, two player action and a great challenge. We’re now seeing folks reproduce some of the essence of classic games by creating platformers like Little Big Planet and Mega Man 9, where is the love for the top-down scrollers?

Ikari Wariors was one of the first game titles to use a rotary joystick along with a directional system. Looking at the current generation Xbox 360 and PlayStation 3 it’s plain to see the joystick is equipped with this design. We’ve seen Geometry Wars utilize the analog stick to create a 360 directional attack, so it’s possible to utilize this behavior for Ikari Warriors.

Given SNK is still alive under the name SNK Playmore the intellectual property must still exist to breath fresh life into an Ikari Warrior remake, with about six to eight months development time a classy title could be re-developed using old concepts brought to the current generation hardware.

Blast grenades, RPG’s, smart bombs, air strikes the options are limitless and the concept has been proven to work. Given the gamer demographic of 18-34 it’s plain to see old gamers of the Arcade and NES would recall and rebuild their love for the title while attracting younger audiences whom have never seen an Ikari Warriors title; if it worked in 1986 are we so adverse to it working again?

Games do not have to implement full 3D perspective graphics to be cool, we’ve seen proof in that with the Wii and the demand for titles like Little Big Planet. We neeed another Ikari Warriors.