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Forums - Gaming Discussion - How The Industry’s Eating Itself Alive

http://www.next-gen.biz/index.php?option=com_content&task=view&id=9127&Itemid=59

 
 

Danish independent developer Deadline Games has focused exclusively on creating games for over a decade now having grown out of what was formerly an internationally recognized television production house. It is best known for 2005’s Total Overdose, an over-the-top action shooter inspired by Robert Rodriguez’s Desperado trilogy, as well as last year’s Chili Con Carnage, a spin-off for PSP.

Last month the studio announced it was hard at work on Faith and a .45, a third person shooter that will tell the story of two outlaw lovers against the backdrop of the Great Depression. Set to focus heavily on characters, co-operative gameplay, road movie storytelling and cinematic aesthetics, it’s bound for Xbox 360, PS3 and PC, hopefully, Mottes tells Next-Gen, as the challenges facing independent developers trying to get next-gen games to market continue to mount.

First and foremost, says Mottes, the pure cost risk factor faced by an independent developer, where one failure can break a studio, is a key hurdle to be negotiated. “[The cost] just to develop the concept to a point where publishers will take an interest is huge.” Factor in the “safety net of having your own technology”, as Deadline does, “and that increases the cost incredibly. By the time you’re presenting a project [to prospective publishers] on a next-gen platform you’re spending at least a couple of million dollars as a studio.

“An evolution needs to happen in the industry in order to support independent developers working on next-gen consoles,” Mottes argues. “I had hoped that by this point the financial pressures of next-gen development and the fact that more and more publishers are becoming publicly traded would have meant that publishers would start to see the sense, as the film industry did many years ago, in having independent developers that are actually profitable and have a good chance of surviving.”

Mottes says that applying film industry funding models to the games business would allow companies to finance more efficiently, to carry out “risk management in the sense of bonding productions or insuring productions against delays or failure in production". He believed that “the attractiveness of that to a listed company like EA or Activision would have started to influence the industry’s business models” to a greater degree by now.

"I have to worry about the fact that this industry is so immature commercially that it sticks hard and fast to a model which crushes the innovative independents forces. Looking at the consolidation that has happened and the number of innovative studios that have been bought up or have been forced to sell through the financial model that exists in the industry, I worry that the big publishers really don’t understand the value of independent development to the industry and to their own futures. I think that if they really did an analysis of the origination of the big revenue drivers in the last ten years that they would in fact find that a lot of that revenue, IP innovation or development growth has come from independents that have then been bought up. 

“The games industry is going to become a secondary market in itself for other industries rather than a primary IP developing industry.”
“The capital requirements and financial risks being taken by independents have grown but publishing models have failed to accommodate that, meaning that publishers are going to be left in a situation where they’re going to be more and more reliant on IPs from external sources like movies and TV series’ and so on. The games industry is going to become a secondary market in itself for other industries rather than a primary IP developing industry and that’s going to kill, or at least limit the growth of the industry hugely.

 

“The movie industry many years ago realized that you need to sustain an independent development environment in order to rejuvenate yourself and the book industry has always understood that you can’t sign up a whole lot of novelists, put them in a factory and get them to sit and write books.

“As entertainment products become more and more complex and commercially onerous you need to build models that allow for the existence of those independent forces that create the IPs, that you can then buy up and exploit and sequelize or whatever you want to do with them, but if you kill those independents you’re going to end up making yourself a slave to other industries.”



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Nintendo consoles present low cost opportunities for developers to take risks



 

Predictions:Sales of Wii Fit will surpass the combined sales of the Grand Theft Auto franchiseLifetime sales of Wii will surpass the combined sales of the entire Playstation family of consoles by 12/31/2015 Wii hardware sales will surpass the total hardware sales of the PS2 by 12/31/2010 Wii will have 50% marketshare or more by the end of 2008 (I was wrong!!  It was a little over 48% only)Wii will surpass 45 Million in lifetime sales by the end of 2008 (I was wrong!!  Nintendo Financials showed it fell slightly short of 45 million shipped by end of 2008)Wii will surpass 80 Million in lifetime sales by the end of 2009 (I was wrong!! Wii didn't even get to 70 Million)

XBLA, PSN and WiiWare to the rescue!



"The worst part about these reviews is they are [subjective]--and their scores often depend on how drunk you got the media at a Street Fighter event."  — Mona Hamilton, Capcom Senior VP of Marketing
*Image indefinitely borrowed from BrainBoxLtd without his consent.

At the moment, XBLA and PSN (and eventually, WiiWare) are the only active services that allow small developers to take risks, I don't understand his article.



The only problem I see with those is that they are limited in space though I guess PSN doesn't have limitation so far. I say PC might be the way to go with the tools offered by valve and using steam etc.



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There is a difference between new IP and originality.
Wasn't Total Overload a GTA-type game? An over-the-top third-person shooter.
Didn't it also receive medicore reviews? (7s).

I say consider the source on this one. (Not that he is not somewhat correct ... but he needs to bring more to the table to complain).

Mike from Morgantown

PS -- Do major movie studios really care about Indie films?



      


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mike_intellivision said:

PS -- Do major movie studios really care about Indie films?

I would think they do because those movies are typically cheaper to make.  There are many examples of indie films doing alot better in the box office then people anticipated and is usually all profit.  I remember the old dude from the brokeback mountain movie complaining about not getting payed because the director told him it was just an indie movie so he did the film on the cheap.  Boy did that bite him on the ass no pun intended LOL



Yeah, XBL does have the 150 MB limit, and doesn't WiiWare have a limit too? But that doesn't happen on teh PSN, so maybe that'll be the way to go to get a game out, that you can't get out otherwise.



Has there been any word on storage additions for the Wii? I don't see how wiiware is going to work with just 512MB of space.



And people say that Nintendo is destroying the industry.

Options for the developer, is DS, PSP, Wii, mobiles or flash games for PC, if we count out XBLA, PSN and WiiWare. PSP and Wii propably has similar costs, DS propably is at the same level with the DL services.

This definately shows the problem in the industry, and it's even worse, when you happen to bet the wrong horse.



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Eikä Japanisti.

Vaan pannaan jalalla koreasti.

 

Nintendo games sell only on Nintendo system.