Gaming industry vets continue to be perplexed by the dynamic shifts in our industry. Cost of developing AAA games continues to skyrocket while the unit volumes for anything other then AAA games has fallen off the map. We saw the result of what can happen when Brash Entertainment went out and raised a ton of cash, licensed a few "C" and "B" licenses and contracted neophyte developers to deliver competitive products. It doesn't work.
Over the last two years we've seen the migration of younger console gamers (the ones that would purchase the Sponge Bob Square Pants and Disney titles) to online. These gamers like the freedom of not being dependent on any one console system and like the flexibility of playing for free anytime they wish.
This is a troubling sign for the publishers and distributors, but no so for the independent developers. This levels the playing ground for the independents to generate interest in a small down-loadable games without having to spend a ton of dough.
The bottom line in all of this is that the best games win and while the stakes have grown dramatically over the past decade in the console space. There is plenty of upside when great content meets flawless execution. A great example of that is Call of Duty: Modern Warfare. Tremendous execution and a well established brand can still bring about record numbers.
The analogy I like to use is the console space is like the movie business; you pay a ton up front, you market the hell out of the product then cross your fingers. If the movie doesn't open strong the first weekend its over. The same can be said about high profile console titles that fall flat with its customers.
In the online space is more akin to the television business. You invest some money upfront, launch and establish an ongoing customer base. You learn from what works and what doesn't, you get more then one shot at it. This requires a long term view and a willingness to change midstream. You want to listen to what your customers are saying and give them more of what interests them and less of what they don't seem care about.
There is an old saying, in chaos there is opportunity. So let the games begin.
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