Watch The Prices Change

The president of THQ thinks we’re going to see console games get distributed like PC games (and goodbye $60 box).  Ea is going Freemium.  Even with the massive Zynga downturn, it seems that the days of the $60-box-game-in-a-store is fading away.

Of course none of us are surprised, we probably saw it coming.  My guess is that the “fade” will pick up after this Christmas, and we’ll even see some titles start going pure DLC, dropping the box they were planned for.  We’ll also see more Freemium, more “try before you buy,” and all the general confusion that follows a shift in pricing plans.

Now I expect the changes are inevitable.  Gaming is a changing industry, technology is a changing industry, the world economy is staggering like a drunken sailor of the non-fuku variety, and people want to make money.

However, these changes, despite building on existing trends, are still going to seem a bit alien and are going to have some odd effects.  So here’s Steve’s takeaways:

  • Gamestop is clearly aware of this to judge by their promotion of the Nexus 7.  They’ll have to stay on top of gaming and on top of deals, probably becoming a kind of micro-Best Buy focused on gaming and entertainment.  I think they can make it, but they’ll have to change.  Career-wise, GameStop may need some savvy business people – and if they integrate with other companies, tech people as well.
  • Best Buy is pretty much hosed anyway, but I think that a move like this will make it tougher on them IF they’re even around long enough to be affected.
  • Though downloadable is fine and acceptable to people, the entire Freemium thing is going to be weird and hard to implement.  Frankly I’m expecting another round of pricing experiments in 2013, many of which will be stupid or fail.  This is an opportunity for you econogeeks to advise companies.
  • At some point the weird Freemium pricing is going to annoy people and there will be some “scandalettes” bouncing around the gaming industry about weird charges, ripoffs, exploitation, etc.  We have that now, but this will be more public because the gaming world is getting more public.
  • Eventually gaming is going go go away from physical media, and have to really blaze new trails in pricing.  These trails will be weird enough that establishing norms will be hard, and will take time (I think Freemium and it’s ilk have about 3-5 more years to get culturally normal without becoming an Intermittent Story In Gaming).

– Steven Savage

Steven Savage is a Geek 2.0 writer, speaker, blogger, and job coach for professional and potentially professional geeks, fans, and otaku. He can be reached at https://www.stevensavage.com/

Gaming, Opportunity, Convergence

So last week it was announced that the Ouya is going to have OnLive on it.  Frankly I expected to see a lot more on that, but it didn’t seem to make much of an impression.  Just another case of technology converging.

Of course the way I see this potential alliance is different.  It means a service that streams games (that don’t run on Android) is going to be playable on an open Android device.  Or in short, your $99 Ouya is going to let you play stuff that you’d normally need a far more powerful machine for.  Sure you have to pay for the service, but we’re talking quite a benefit here.

Yet, I saw a lot less speculation on it, so let me speculate more – and extend this.

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The Impact of Ouya

So now Ouya has its first announcement of exclusive content.  This is pretty interesting and yes, I’m going to buy one, I feel almost morally obligated as . . . er, well me.

So let’s assume they can somehow turn $5 million into a good functioning game console running Android.  I figure it’s going to happen between the enthusiasm, the public, the money, and the fact they’re being watched like a hawk by the people who provided $5 million.  My guess is the worse the Ouya is going to be is mediocre.

So based on that assumption, what’s going to happen during and after release to everyone else?

Developers:

  • Developers are going to have to consider it’s role in their products.  For Android game developers it’s going to affect some development plans (screen size, controls), but hey it’s something else to put things out on.  For non-Android developers, then the question comes up “do you support it?”
  • I expect people to have big plans for the device, but some will be disappointed in the results their games get simply due to the randomness of fate.  Expect some “sales haters” when the launch happens.
  • The Ouya could become an excellent educational tool/device for training and education.  It’s cheap, hackable, and runs Android.

Microsoft:

  • This is a weird one.  Microsoft makes a great product with XBox, and the Ouya, no matter how good it is, may not be as polished.  At the same time this provides a less-gated, more diverse competitor appealing to a tech crowd.  I think they may ignore it for awhile, but I’m sure they’re curious.
  • Microsoft should be OK in the end as they’re evolving a broad device.

Nintendo:

  • Nintendo is still king of the oddball controllers and the Ouya can’t beat that – yet.  But with a hackable and open device, a lot CAN be done.  It won’t be an issue at first, but who knows what will be done (say, any Android phone as an equivalent of a Wii U controller?)
  • Nintendo has a dedicated oddball and property space, so I actually imagine they’ll do OK.

Apple:

  • Look, at some point they’ll have to talk gaming device.  This may just push them into something “gamesque,” even if it’s a variant on Apple TV with some games and controls.  By now I don’t think they can – or want to -ignore it.

Maker Culture:

  • Will go freaking insane for this.  Expect controllers (as noted), hacks, additions, and things involving Arduino you can’t imagine.

GameStop:

  • I imagine they’ll want to sell this thing and will go out of their way to do so.
  • This could actually be good for their continued expansion and diversification if they’re able to get in perhiperals and other devices.  May give them more geek cred.

Google:

  • Is smiling.

– Steven Savage

Steven Savage is a Geek 2.0 writer, speaker, blogger, and job coach for professional and potentially professional geeks, fans, and otaku. He can be reached at https://www.stevensavage.com/