Category Archives: Business

Nintendo Has Common Sense

Nintendo has announced the successor to Brain Age, Common Sense Training for Adults. I’m not going to mince words — this could be pure genius. Not just because it will (like Brain Age) be accessible to consumers of all stripes, but because it takes Nintendo one step closer to dominating a lucrative and untapped market: self-help games.

Most of you are probably aware (or could guess) that self-help is a multi-billion dollar industry. You can find a book (or ten) for every problem you can imagine, not to mention audio tapes, TV shows, etc. But not much in the way of mainstream games, with few exceptions.

So Nintendo is going to teach us “common sense”. If the game proves to be enjoyable and popular, maybe they’ll teach people how to stay in shape, next. (With the Wii, that would be incredibly easy.) Or maybe the next game will be a “romance trainer”, complete with built-in, network-enabled social networking functions at later levels of the game. (“Don’t just train to flirt, put your training into practice!”) Or maybe a negotiation game, with levels like “negotiate a purchase”, “negotiate a sale”, “negotiate a hire”, etc. The list of fun and useful possibilities just boggles the mind.

The Common Sense titles could include a “common sense in other countries” component. I bet people would get a huge kick out of experiencing these cultural differences in the context of a game. And it makes localization of the game much more interesting.  ðŸ™‚

This topic really deserves more attention, but it’s 3am and I want to go to sleep. More in the future!

Nintendo Gets Push (But Hopefully Not Pushy)

Nintendo President Satoru Iwata recently revealed that the Wii will automatically download content during the night (broadband permitting.) In other words, push technology. It isn’t clear from the interview whether consumers will be able to tweak or disable this functionality. A quote:

This would allow Nintendo to send monthly promotional demos for the DS, during the night, to the Wii consoles in each household. Users would wake up each morning, find the LED lamp on their Wii flashing, and know that Nintendo has sent them something. They would then be able to download the promotional demo from their Wii’s to their Nintendo DS’s.

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Using Achievements to Reduce Game Resale

Last year, I wrote about using online content (especially the user-generated variety) to discourage piracy of single-player games. Of course, this strategy could help reduce video game resale as well.

It recently occurred to me that Xbox Live has provided an easy way for developers to make a (small) dent in game resale. It just requires a simple modification to an existing feature. I am referring to Xbox 360 Achievements, which have proven to be potent motivators for hardcore gamers. What if a given copy of a game could only generate Achievements for one Xbox Live account? Consumers who purchase used copies of the game can still enjoy it (as is their legal right), but can’t score points.

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User-Generated Content: The Good, The Bad, and The Ugly

Via Joystiq, an interesting controversy: id co-founder John Romero has accused the modding community of hurting the game industry by exposing or introducing inappropriate content (i.e. nudity) in PC games. His post was in response to the ESRB’s re-rating of Oblivion (which happened after a nudity mod surfaced.) John’s exact words: “modders are now screwing up the industry they’re supposed to be helping.”

There are a number of interesting comments on John’s original post which you may wish to read. Meanwhile, this raises a couple issues that I’ve been meaning to write about:

Whose Side Are They On, Anyway?

When consumers decide to create content for a game (or anything else), they’re doing it to indulge their own creative impulses, and/or to share something with friends, and/or to gain notoriety, and/or other reasons that have little to do with “wanting to help the industry” (or the developer, for that matter.) Let’s not kid ourselves: the guys who made Counterstrike didn’t do it to make Valve rich… that was simply a nice side-effect.

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Weeeeeeeee!

…Now spelled “wii”, thanks to Nintendo’s marketing team.

I’m just not sure what to think. The reasons for the name change sound good when they’re spelled out on paper. So why can’t I supress the urge to roll my eyes? Oh well, I fully admit that I’m no product-naming expert. I personally preferred “Revolution”, though.

Update: …and, the inevitable zinger from Penny Arcade.

Interview with Phillip Gee (EA, University Relations)

Phil Gee, University Relations Manager for EA, was good enough to answer a few of my questions about the EA internship program — by far the largest (and probably oldest) program in the industry, excepting perhaps the console manufacturers. On to the interview:

How long has EA’s college internship program been active?

If my memory serves, almost 10 years to this day.

When the program first started, how many interns did you accept (and in roughly what proportion: engineers, artists, production, business, etc?) How many interns do you accept now?

I’ve only been here for 3.5 years, but from conversations with early alumni of the internship program, I can tell you it was rather small. We had roughly 20-30 interns during the summer, working predominantly at EA Redwood Shores. A little over half (let’s say 60%) worked in game development (art, engineering, production) and the other half were on the corporate side (marketing, finance, IT). Today, our program is a global one; we host approximately 274 interns (fiscal year 2006) with close to 70% of them being in game development.

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In Defense of Episodic Content

Gamasutra has reprinted an analysis by Jason Kraft and Chris Kwak that challenges the merits of an episodic model for AAA games. Jason and Chris ask some good questions, but I disagree with much of their analysis. Let me quote their key arguments and assumptions, tackle each as best I can, and see where that leads us:

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Wisdom of Crowds

If you haven’t already read it, I’d like to direct your attention to an absolutely fantastic book called Wisdom of Crowds, by James Surowiecki. In it, Surowiecki argues that the decision-making and predictive power of diverse groups of people greatly exceeds that of most individual “experts”. The book is remarkably comprehensive and convincing, and the case studies in it will inspire and amaze you.

Wisdom of Crowds opens with a nice example: 800 people at a livestock exhibition participated in a contest to guess the weight of a live ox (on display) after slaughter and preparation. Some of the 800 were butchers and so-forth; people who should make a good guess. Many contestants were ordinary people with less “relevant” knowledge. But no expert within the competing pool beat the average guess of the group as a whole, which came within one pound of the true weight (1,197 lbs instead of 1,198).

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Sony: Great Brand, Crappy Strategy

Two rather conflicting bits of news for Sony today. On one hand, a survey revealed that the Sony brand is stronger than Nintendo’s, and much stronger than Microsoft’s. (Forrester Research, which conducted the survey, went on to claim that “Microsoft faces big consumer defection risk.” Ouch.)

On the other hand, rumors abound that Walmart will quit the UMD business. Universal Studios has already ceased UMD production. Losing Walmart is a bit like having your legs chopped off. I wonder: if UMDs had cost half as much, would consumers have stuck with the format? The price always seemed excessive… to me at least.

It’s strange to witness such a mismatch between technical achievement, great branding, and questionable strategy. Why is Sony obsessed with expensive proprietary formats that almost inevitably generate apathy (if not resentment)? Why did it take the company so long to realize that, shocker of shockers, an online service would be important in next-gen consoles? Why is Sony letting the Nintendo Revolution run away with the physical gaming market, when the Eye Toy has been around for years? Where is Sony’s next-gen response?

I know, I know. It’s easy to criticize from the bleachers. They’ve got smart people who’ve managed to win two console wars in a row. And maybe these missteps don’t matter, since brand strength may preserve Sony’s dominance in the console market. Then again, I’m guessing that Nintendo had A+ brand strength with consumers once… before the GameCube?

GDC: Casual Games Summit

I had to get up at 5:30am this morning in order to have time to write something for Game Tycoon. This is really testing my newfound infatuation with blogging.  ðŸ˜‰

Slipped into the Casual Games Summit for a bit yesterday. Thankfully, there was little of the (formerly common) griping about “we don’t get no respect” — a definite sign that the market is maturing. Other signs that the market is maturing (as noted by Dave Rohrl, GM of Popcap’s San Francisco studio):

  • Team size is now 3-5 (as opposed to 1-3 in the very recent past).
  • Development schedules are now 6-12 months (as opposed to 3).
  • Development costs are $100K-$250K or more (as opposed to $25K-$100K).
  • The market has become extremely crowded, and consumers are learning to expect more from casual games. Dave hypothesized that the games which defined this genre several years ago would no longer make the cut in today’s environment.

In a subsequent panel, James Gwertzman (Director of Biz Dev for Popcap) made the following pronouncements:

  • Casual games need to be modified on a partner-by-partner basis to help the major game portals differentiate their offerings. Not core modifications, but things like better integration with a partner’s DRM solution, leaderboards, etc. James said it was affordable to do this for five or six companies: an unsurprising assessment, and bad news for portals below tier 1 (tier 2 and below represent just 10% of Popcap’s audience).
  • New customers are always flowing into the market, so you can’t ever stop making really simple, accessible games that suck people in.
  • No matter how powerful portals gets, Popcap can make must-have games that preserve its power in the chain. (My opinion: this is probably true, if Popcap succeeds at brand-building.)

A few other things mentioned by the panelists in general: there needs to be more editorial coverage of casual games, developers need to do a better job of supporting their brands (financially and otherwise) in order to combat clones, and there are too many single-player casual games. The argument was also made that casual game clones are no more “exact copies” than Quake was an “exact copy” of Doom.

Oh, and as a total aside: I heard from a friend that Warren Spector told a group of academics that he’d rather students get a liberal arts degree than a “game design” degree. I appreciate the sentiment. Hopefully universities will always make an effort to channel students towards creative writing, film studies, engineering, psychology, and business courses (etc), not just the game-specific stuff. There’s time for both.