Tuesday, May 29, 2012

The Mistaken Belief of the Free-to-Play Model

There has been an awful lot of talk about the emergence of social games and free-to-play entertainment. Quite a bit of the talk outside of the general news article is hype-fed proclamations that a new age is coming and the structure of the video game industry will be turned upside down; the prophets of this new age claim that free-to-play models will eventually power the financing of every game that is released from this age onward.


Free-to-play is a new idea in video games, and a delightfully original one at that. The income alone that powers the advertisements, while it may or may not be enough to justify the cost of production for the developer, at least allows the developer a little bit of reward for their work, while also agreeing with the desire that everyone should have a crack at their app. That "free" price tag under the title of a game when a gamer is browsing through their app store is a no-commitment welcome to a shot at an original piece of work. Even though many would argue that ninety-nine cents is an extremely reasonable price, the argument still stands that "free" is always more attractive than "cheap" and while everyone has their differences about what a single dollar means to them, "free" means the same thing to everybody.


The accessibility of the app store, combined with the advertisement and micro-transaction powered income model, at least gives everyone an open, no risk opportunity to try something new. For such an easy-going, open market to exist is the developers dream. We are finally at a place where computers fit in our pockets, and we can customize them to perform the exact tasks that we need them to do no matter where we are. This is especially exciting for the budding game developer. There have been plenty of notable free-to-play games that were just made by two or three guys. Not that they are revolutionary works of art, and I typically delete the games after an hour, but I look at the credits of the app, seeing that only a few people worked on it, and I know I made their day just by downloading their game and giving it a shot. Thats a dream come true for the basement programmer.


Then there are more expansive games, made by teams of more than fifty people. Big budget games that take a developer dozens of people more than a year of dedicated programming and designing. And lo, these are free to play as well! Just like the budding, basement game developer, these big companies are powering their games using advertisements and micro transactions as a means of income. Initially, this idea has worked out very well for the developers, who have banked very well for being frontiersmen in this new idea. I love it when people find new ways to make money, and I applaud them when they do. I also get very excited about growing markets. But I've got a big, bulky question mark floating over my head about casual-gaming and the new free-to-play model that is literally taking over mobile gaming and internet gaming.


First lets talk about advertisements. I'm sure we have all actually taken a second out of our day and realized how many advertisements we are buffeted with on a daily basis. Lets go through a typical day.


I wake up and get some cereal. While I'm pouring by breakfast in a bowl I get hit with a "Enter the vacation sweepstakes!" with a big airplane picture hovering over my golden oats. Then I get dressed and head to work. On the way, I listen to radio, which is financed by an advertisement every 3 or 4 songs, who tells me with a deep voice that they want to "see me in a Kia". Meanwhile, I'm driving by billboards that are telling me how low I can get my insurance. At work, I spend all day throwing advertisements at people, asking them if they would like to try our new "Cherry Berry Chiller" and follow-up with how golden and cool they will feel inside while they are drinking it. Then I come home (hearing and seeing the same ads I drove by eight hours earlier) and turn on the tv with my wife, which is financed by 33% of airtime being dedicated to commercials every hour. Then I have some me time and I get on facebook to find out what my friends are up to. Right next to my best friends status update about his new painting, I see an advertisement for another computer, or another leather coat, or another single woman who wants to date me (I never knew I was that desirable until facebook told me). Then when I turn on Playstation 2 to play a snowboarding game, I see nothing. No banners, no trailers, no offers. Nothing.


Up until a short while ago, videogames have been free from obtrusive advertisements, and let me just say those were good days. in 2005, EA got incredible amounts of criticism from both gamers and press for using real world advertisements for Axe deoderant in their Need for Speed games. The argument was made that video games, like books or movies, were an escape from reality, and seeing advertisements removed the fantasy from it. EA defended itself by saying it was a way to justify the cost of developing the game, which everyone knew was a lie from the bowels of hell, because the Need for Speed series was enjoying its most successful days.
The Need for Speed series was enjoying success from a dedicated fanbase that was willing to throw fifty dollars out of their wallet to escape into the fantasy. They had a good reason for being upset: fifty dollars is a lot of money, but its money well spent on a great game, and the players understood and agreed with that. They felt like their purchase had been cheapened, however, when, like so many other entertainment formats, they had advertisements shoved down their throats.


That was an age when gaming was still an exclusive pass-time to gamers.
A lot of average, everyday people didn't understand it (and still don't). Oft-heard criticisms sounded like, "fifty dollars for a stupid game? Stop wasting your time and money." then there were more personal ones like "find something more constructive with your time; videogames are for kids." and now, seven years later, those same people that I can pick out from my past are now playing Words with Friends and Angry Birds.


Who changed? The developer, the games or the audience? All three actually, in that exact order.
If I asked any of those new "casual gamers" who made Angry Birds, they wouldn't be able to tell me. Even though they see the developers name every time they start the game up, they don't know who made it. Likewise, if i asked them what they appreciate most about angry birds, they might be able to muster something like "I like the big red bird" The same goes for Words with Friends and every other casual game on the market. Its not because these companies are not memorable or that the games themselves are unintelligent, its because casual gamers don't care. This is the harsh reality that the game industry needs to get its head around: "casual gamers" are not gamers.


I do not mean the title of gamer to belong to the elite hobbyist that plays at least an hour every day. I use the title loosely. A gamer can be someone who enjoys an hour of gaming once a month, and only if friends are present and participating. I would call that person a casual gamer. But that is not the same person that the industry refers to when revenue and growth statistics are thrown into the airwaves. The "casual gamer" the industry is talking about has absolutely no interest in video games, has no interest in sharing them with anyone, and has no interest in investing any more than a dollar into a game for the rest of their lives. They don't enjoy videogames. They don't appreciate the world that it sucks them into, they don't like the characters that try to interact with them on the screen, and they certainly don't want to post a high score to beat all their friends.


The origin of the "coverted" casual gamer looks like this: She was on a bench waiting for the bus. There was no one left in her contacts list to call, there was nothing she wanted to do on the internet, there was nothing interesting on facebook, and she just wasn't in the mood to take the book out of her bag and start reading, so after gazing through the app store and seeing the game that the world simply will not shut up about, she thinks "whynot?" and downloads the game and plays it for five minutes. The industry would now label this girl as a "casual gamer" when she has absolutely no interest in playing video games. She downloaded Angry Birds because she was bored and it was her last resort.


The example I gave above is not a special case. It comprises the entire market that mobile gaming is building itself around. Free-to-play games have plenty of tricks to suck this market in and get a few dollars out of them. These strategies work, and I am legitimately happy for the company that enjoys this success. But right now casual gaming is being treated as the industry-saving economic boost that will restore sales growth in a stuck and static market; and that perception is dangerously misleading. It's about time that someone came out and just said it: casual gaming is the Furby of electronic entertainment. Remember Furby? Sure you do. Everybody's mom wanted one. All the little kiddies loved them. They were so cute and cuddly and filled the black hole in everyones life. That is, until people got bored with the idea and moved on. The same thing happened with tickle-me-elmo, and again with the Pirates of the Caribbean series, Tamagotchi, Harry Potter, Silly Bandz, Lite-Brite, Etch-A-Sketch, and the Spice Girls.


Normally I wouldn't care about this, because its just an example of people finding a fad and cashing in on it. I'm a huge supporter of that. But it has come to a point where the big boys are questioning their entire income model. Nintendo is in a complete panic. They created the touch screen for gaming, but they have since been surpassed. They created motion controls for gaming, but have since been beaten. Now they're on the verge of releasing a product that combines both technologies, investing their livlihood into its success, and the public couldn't care less. Sony is losing money left and right; having its hands in too many markets, the company has lost a competitive edge. Now it is looking to its entertainment division to pick up the slack, while the inside of the division is shaking in its boots, wondering whether or not to release a new console. Microsoft is gambling more than it ever has on its Windows 8 operating system, after releasing Vista and 7, which the public just didn't come after in droves to adopt. Meanwhile, the video games division is trying to balance having every form of entertainment in one box, something their biggest competitor seems to have mastered overnight.


There is a lot of fear in the industry right now. A lot of that fear stems from the roots of the public interest. Video games really just aren't being talked about right now. This is coming from a guy who checks half a dozen video game web sites every day looking for a new article to read. On top of that, consoles and developers have finally hit a brick wall on affordable technologies. building games bigger than they already are is dangerous to a budget like a foreign explosive to a bomb disposal team Hit the right switch and you're golden, hit anything else and your world is over (see: Kingdoms of Amalur). Want to know why this is the first time in gaming history that consoles have extended their life cycle to 150% of their expected use? Now you know. Game development cannot extend beyond its current budgets and still remain profitable. Big games like Call of Duty take too much time, too many people and too many resources to be any bigger than they already are. For the first time, going bigger isn't just risky, it's plain stupid. If the Playstation 2 had been the latest technology for 7 years instead of five, game critics would have torn series like Call of Duty apart for being horribly repetitive and looking too much like its predecessor. Now, these games are getting away with it because they have to. The whole industry has to. The attitude of quiet confidence in simply not moving that companies had has turned into a frozen panic in the wake of growth of "competitors"


Amidst all this confusion, a platform, built by a company that has never openly supported video games of any kind has become the dominant contender, supporting casual free-to-play games by the thousands. Besides that, sales of consoles are beginning to slump; the market has been penetrated, the products have matured, and one single company emerges from the ordinary and begins dominating literally every form of digital entertainment we enjoy.
To say it plainly, Apple is a behemoth that has made so many calculated advances in so many industries with so much unparalleled success, companies are beginning to view it like the Angel of Death, dreading when the unstoppable power will come for them. But the games industry is an nut Apple will not crack. How do I know? Because Apple itself has made one active, calculated, risky move in supporting games. It is called Game Center, and it completely sucks. The fact that, being this far in the game, Apple hasn't made any moves toward requesting developer support for video games speaks worlds about what they know about the industry. What says more is they just don't get how essential physical buttons are to gaming. If they did, you had better believe they would have made a controller by now. But fanatic Apple analysts haven't even spotted so much as a patent. Talk about lazy.


I do not point any of these things out to call gamers to arms, or to announce the apocalypse of interactive entertainment. I'm saying all of this to send a message to the negatively fused critic who thinks this industry has approached a cliff. This free-to-play fad will pass (notice Facebook's horrendous IPO and the leech known as Zynga following closely behind the falling stock price). Free-to-play gaming has worked for the few who jumped on the idea, but it is not going to work for everyone. The practicality has made it an attractive alternative for the cheap gamer, but the constant pressure to pay more will drive them away shortly. Gamers as a whole simply will not be kosher with a constant reminder that they could spend more and get more; that pressure is equal to that of a salesmen coming back to your door every morning to remind you about the same product you refused to buy yesterday. Games are only getting away with it right now because its new. Once the idea wears out, free-to-play advertisements and micro-transactions are going to die just like the old furby.


I love video games, and throughout my whole childhood I wanted my parents to give a tenth of an inch of care about my favorite pass-time. I would have mowed the whole lawn, taken the trash out all summer and gotten A's in all my classes if I could sit down with my dad for an hour to play a game with me. But when I grew up I finally came to grips with the fact that its just not going to happen. My dad is never going to be interested in games like I am, and no matter how bad I want him to like them, he's just not going to.


The gaming market is shaping itself into the boy I once was. It is conforming and bending its own rules, its own understood convictions and principles just to get people who can't stand games to give just five minutes of their time to enjoy the things that we enjoy. It started out as a novel idea, but now its turned into a passion that is destroying the way the industry depends on its own survival. No matter what changes in the world of entertainment, there will always be those who play games and those who just don't care to. Until these recent years, that separation has driven the industry to new heights of greatness; now we have descended into a little boy that just wants attention from people who don't even know who he is or what he is here for.
-Tyler Shippam