GDC 2012: Perry, Castle, Yu On Business Trends To Watch For
To help inspire submissions for the GDC 2012 call for papers, the event's advisory board members for the Business & Marketing track spoke out on the rising business trends in the industry, outlining what they hope to see discussed at the upcoming San Francisco-based show.
Seasoned industry professionals such as Gaikai's David Perry, independent developer Adam Saltsman, Zynga's Louis Castle, Gazillion's Dan Fiden, and Ngmoco's Alan Yu all discussed the most pertinent business strategies of the last few years, as part of their drive to inspire submission ideas for the GDC 2012 Main Conference.
These GDC advisory board members oversee the show's Business, Marketing & Management track, and ensure that each of its sessions remain relevant and hold up the high bar of quality that GDC attendees have come to expect.
The call for papers for GDC 2012 will close on September 6, with a list of business and marketing-specific topics available on the official website. In the following interview, the advisory board members discuss key business issues they'd like to see addressed at next March's show.
How do you all think downloadable and free-to-play titles have affected the business strategies for traditional, boxed retail games?
David Perry: At the start, there was a lot of resistance to free-to-play. I put a lot of energy into trying to be the first free-to-play console game and was met with enormous resistance. I even remember comments saying not to interview me anymore, as this entire concept is horrible. In reality, times have moved on, Zynga is worth billions of dollars, free-to-play is no longer just an Asian phenomenon, and publishers are open to all business models.
Looking around, it's as if the video game industry, including mobile, is driven by three things in this order: Convenience, low price (Free to try), and high quality -- if you have all three you have a slam dunk. The X factor is how easy you make it to share. Boxed retail games fail on two out of three key drivers -- convenience and low price -- therefore they are ticking time bombs.
Adam Saltsman: Free-to-play is a kind of a marketing coup. The name, I mean, not the actual concept. The main difference between "free for the first month" and "free for five minutes a day" is the latter is proven to make scads of money for social games.
Part of me is worried that box games are in the process of getting renamed and re-monetized the same way: "super deluxe special edition tin box with army helmet and real gun, only $250!" But the other part of me is really happy, because I know there will always be a free demo for the next big AAA game that I can download and check out, instead of having to take the big $60 (or $250!) gamble every time.
And there is a happy possible future where games are simply priced based on how you engage them. If you just want to play through the first chapter of a game and see what the controls and graphics are like, that will have one price (maybe free). If you want to pore over the whole game for 200 hours, then that can be a different price. This makes sense for people and for bandwidth I think, but there are a lot of opportunities for the system to be manipulated to work against the audience. This is going to be an interesting few years for any industry that used to sell chunks of data in a box.
Louis Castle: All digital entertainment is trending toward three things: sharable, free-to-sample, and pay for consumption. Boxed games are struggling with the same market forces that have been thrust upon the music industry and now film. There may be some long-term market for physical goods, but it is unlikely to be the primary market it is today.
How soon this industry will be forced to accept the change will depend on how long console makers will hold on to the current model. The market forces have little to no effect if you are one of the major franchises, but everyone else is already having to deal with the difficulties of getting players to pay when free options are readily available.