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