Our Properties: Gamasutra GameCareerGuide IndieGames Indie Royale GDC IGF Game Developer Magazine GAO
My Message close
Latest News
spacer View All spacer
 
May 18, 2012
 
Could digital sales also be contracting? [14]
 
Facebook's anemic IPO takes heavy toll on Zynga [2]
 
How a mod put three-year-old Arma 2 on top of Steam's charts [2]
spacer
Latest Features
spacer View All spacer
 
May 18, 2012
 
arrow A Personal Journey: Jenova Chen's Goals for Games [3]
 
arrow Predicting Churn: Data-Mining Your Game [7]
 
arrow A Revolution in Sound: Break Down the Walls! [1]
spacer
Latest Jobs
spacer View All     Post a Job     RSS spacer
 
May 18, 2012
 
Industrial Light and Magic
Creature ATD
 
FLOAT (hybrid entertainment)
UX/UI Designer
 
Riot Games
Fraud Prevention Manager
 
Inhance Digital Corp
HTML 5 Programmer
 
ArenaNet
Game Recruiter
 
ArenaNet
Audio Associate Producer
spacer
Blogs

  PRICED TO DIE
by Brent Knowles on 02/06/12 03:11:00 pm   Expert Blogs
5 comments Share on Twitter Share on Facebook RSS
 
 
  Posted 02/06/12 03:11:00 pm
 

WHY WE SHOULD FEAR THE $0.99 APP AND NOVEL

One interesting thing I’ve noticed since promoting my writing on various forums is the almost insatiable demand for novels that readers seem to have. While at first this is incredibly encouraging I quickly realized that for many this demand was paired with the reader’s demanding incredibly low prices, or even free work.

I’m not talking about people who think eBooks should be cheaper than print books. I’m in that camp. The prices on some titles are ridiculous. I’m talking about what appears to be a large number of vocal consumers who will not spend more than $0.99 for a novel or game.

Indie writers and app developers have been praising the App store or Kindle self publishing because these marketplaces have given them more exposure than they could have gotten a few years ago. This is generally a good thing, in my opinion.

What’s not good is that to get consumer attention there seems to be a mad rush to have low prices and often free content. In the short term this seems to benefit authors, game developers, readers and game players.

But it will not last.

WHY NOT?

I am asked occasionally why I do not start up my own indie game development firm. I have over ten years of experience on AAA titles as well as experience on smaller projects. I have art, design, sound and programming contacts.

But it is incredibly unlikely that I would ever start an indie firm up because I doubt, unless we lucked out and created a blockbuster, that it would ever be profitable. And that’s gambling; I don’t gamble.

For every major and moderate success with the Apple’s App store I suspect there are thousand of complete failures. And not all of these failures are crap titles, they are high quality goods that are not being noticed and cannot be noticed unless priced too low to be profitable.

To be blunt I doubt I would be able to pay my employees the money they would deserve.

Likewise I’m skeptical how many self publishing successes we are going to see in the realm of self publishing.

WHAT’S GONNA HAPPEN?

App developers and those self publishing for low prices are creating an expectation in the consumer that these prices reflect the effort put into creating the content. As the years pass this expectation will become even more pronounced.

For both books and games I suspect we will start seeing more copying and less originality. Both authors and game developers, in an attempt to be profitable at such low price points, will try to minimize risk. To do this they will copy tried and trued gameplay and narrative and flavor it just enough that it is not a blatant rip off.

If I were creating a title entirely on my own and with no expectation of making money I might risk being original. If I had a team depending on success to feed their families I’d copy an existing design and try to improve on it.

Of course nobody knows what will really happen but I think content creators of the future are going to have to find other ways to subsidize their product. This might mean more advertising or blogging revenue or something more creative.

I’m considering carving my next novel in the walls of a cave and charging people admission to come and read it.

 
 
Comments

Joshua Darlington
profile image
So what happened to the Catholic church when the printing press was popularized?



What does this mean:



http://www.ted.com/talks/clay_shirky_how_cognitive_surplus_will_change_the_world
.html



In the industrial and post industrial age IP has been monetized based on scarcity. Competition was narrowed by monopoly of scale. Between maker culture and data attack/defense mechanics that world does not exist anymore. It's not coming back. It's time to start iterating new monetization strategies for your IP.

Brent Knowles
profile image
Fascinating video. Thanks.



You are correct, long-term new monetization strategies will be needed. What those will be, I'm not sure.

Luke Mildenhall-Ward
profile image
This is not a new society, it is simply a lack of AAA quality products on mobile app stores.



Steam doesn't have this problem. XBLA and PSN don't have this problem. Even on the Apple App Store it's not all apps affected — I don't see people asking for Apple to sell their premium apps of Pages, Keynote, Numbers, and iMovie at $0.99 each, and these products are the top sellers on the store. Many other companies have replicated this success too (at prices as high as even $50).



Yet, as great as the app market is, and as much fun as I have on it, can we really say any of those apps are AAA-quality games? I think the closest we've come is Infinity Blade 2, which has sold incredibly well priced at $6.99 since launch.



Developers need to create high-quality, console-like experiences and build up reputation with both their studio and their franchises that drives public interest and a fan base. I firmly believe that when you have done that (which IMO very few mobile devs have so far) then you can command a better price. But if your app is not perceptibly better in quality, and does not stand out, you can't command anything, and this is when the customer has all the power surrounding your product's price.



This new Indie market is awesome, and I am happy to see power being taken away from publishers. But indies still need to work on a key area that is currently being ignored: the market — what do our audience want, what themes interest them, how do we market to them. Simply making a fun game isn't enough anymore, because there are a hundred thousand of them, all priced at $0.99 or lower.

Brent Knowles
profile image
I think there are a few examples of cheap app games that approach AAA, if not achieve it. But I agree they would be in the minority.

Still a *lot* of what is produced is not crap either. Those games are fun, they cost money to build and I doubt the developers will recoup that cost.



From my point of view as a consumer:

I would not pay 6.99 for a game on iOS unless people whose gaming opinion I trusted told me "I absolutely needed to buy it." There's enough cheaper stuff that's fun on iOS that I wouldn't bother shelling out that much money.

That is, I'm so deluged by *content* (stories, novels, games) and whatnot that I've obtained at little expense to myself that it is hard for me to justify spending money on product.

If a studio made a AAA game, I wouldn't pay $7 for it. There's just too much other stuff out there for me to explore. Even if its not AAA quality.

(Though obviously others are willing to pay it given 'Infinity Blade 2''s success)

Luke Mildenhall-Ward
profile image
You're right, a lot of those games aren't crap. Although would they fare any better if released onto the Xbox 360 or PS3? I think they'd have exactly the same problem there as they do on the app stores. In any market you need to stand out. And to stand out it takes a marketing strategy. Not just in how you promote your product but it is about the product *itself* — what themes it contains (aliens? war? zombies?)—what interests your audience. Just having a fun game is not enough because, as you say, there are tons of those. But if you're offering me a fun game, coupled with great visuals, wrapped in a story that journalists can't stop talking about, I'm going to push the other fun games aside and come straight to you for these other things you're offering me. And if you capture me well enough I'm not going to care about if the price is $0.99 or not.


none
 
Comment:
 




 
UBM Techweb
Game Network
Game Developers Conference | GDC Europe | GDC Online | GDC China | Gamasutra | Game Developer Magazine | Game Advertising Online
Game Career Guide | Independent Games Festival | Indie Royale | IndieGames

Other UBM TechWeb Networks
Business Technology | Business Technology Events | Telecommunications & Communications Providers

Privacy Policy | Terms of Service | Contact Us | Copyright © UBM TechWeb, All Rights Reserved.