The Western retail development approach handicaps online games well before launch.
Coming from a console back ground there is a lot to be said for a title that is finished completely and then……. sold.
However there is far more to be gained from an online title that is ready to launch, yet its evolution is just beginning. The preconception of launching big and holding your breath for the first month is very wrong, it is a console mentality.
On launch we all do pray the success will be instant, but what if it is not? Do you cut your losses on the $10m-$20m you have just spent? Or were you wise enough to design a solid platform that can evolve over time. Did you plan the first two years after launch and budget enough funds to make that happen?
The complexity of large online games applied across different cultures is not one that can be pre-judged and designed. A large part of the titles form should emerge over time and be directly targeted to the audience and its community response.
The market intelligence to exploit the best possible path needs to come through a traditionally under-valued path –the business development management staff. This should be tapped into before and after the titles launch. It is not from the producers, the guidance is one of market application of the platform and how it is manipulated in order to function at the highest possible level.
The BD people are the ones speaking with the operators and testers across multiple markets. The learning process is very direct and hands-on; it also gives insights to emerging design trends or needs. Add this to consumer feedback and the title can start to evolve in a very real time application.
Online consumers take a longer term investment and ownership in their chosen title, the developer should do the same. Also invest heavily in your BD people, their role is far more important than pure sales, help it evolve by developing better market intelligence reporting methods.
The Western retail development approach handicaps online games well before launch.
The developing frame work of Asian online game markets in 2009
The future frame work of Asian online game markets 2009.
When looking at Asia (Asia including South East Asia and India) we can use Japan as the only “mature” games market as a guide to some of the trends developing across Asia. However the key difference is the PC online market and its unique drivers which are not fundamental to the Japanese domestic condition: For example:
· Demographic including household income to simple living space. Greater China, South East Asia and India typically have lower disposable incomes and family living space is smaller than western standards.
· The wide use of internet cafes
· Social communities established within game environments.
· Mobile phone use, low entry cost.
This points to internet cafes and mobile communication as the dominating drivers for future Asian gaming and social interaction.
Japan is important from looking at how the game-play styles and age groups have segmented over time. Also the local development community has established a very high quality global product.
So the first and most obvious trend is that wider segments of game styles and player’s sex and age groups will emerge. Online RPG’s will still be a powerful segment but only one of many.
Secondly the local content will start to dominate the domestic market and then within time appeal to wider global markets.
Thirdly the method of delivery will still be somewhat decided through demographic factors.
The largest change within 2009 that Omake Interactive forecasts is the management of the online communities. These online game focused groups are currently single title focused and are generally managed poorly by the Asian majors.
We believe there will be a merging of the western use of social networks into the management of gaming communities. The key difference is that monetization of that community will go far beyond advertising into micro-transactions and mobile integration.
Within time that micro-transaction, free to play model will also begin to dominate the west. By returning the spending control to the consumer you empower them to a far greater level and so their long term commitment to the content is far greater.
The core points being:
The demographics of Asia will support online gaming through low cost mobile units as long as they also are closely linked to social networks.
The major Asian operators will focus heavily on the social community management. The large amounts of gamer traffic being generated needs to be held within a focused platform environment.
The western markets will embrace item transactions allowing 3 monetization channels of traditional advertising, subscription (retail box) and item sales.
why game consoles struggle to be successful in Asia
As console dominates the west and console is moving online it is important to address issues also facing console in Asia. Why PC dominates in Asia and not console is also a learning process in understanding success factors for Asia.
Like PC it is not only a question of great games and IP but one of how it is delivered. If we use Japan as an example of a possible “Asia” in the future, then it is quite conceivable console could succeed. But today the simple demographic profile prevents wide success outside Japan. Many other factors come into the success equation but let us consider this in a generic example.
In the simplest of concepts consider the markets of greater China, South East Asia and India. People generally live in smaller homes (comparative against the west) and in the major cities within small apartments. The disposable incomes are typically low; most households would see a television as a luxury. Physically space is limited.
Not many households would allow their one TV (if they had one) to be dominated by a console, let alone allow their children to spend their household money the console hardware and games.
Then socially look at the wide spread use of internet cafes. These are a place where young friends can socialize within a different environment to home. They can enjoy gaming entertainment within a group environment. They can spend money on games without directly being seen by other household members. They can play fantasy games with their friends that provide some escapism.
In this context it is not the content as the major issue, but the delivery for each market and currently console hardware is limited in many ways. Perhaps the Nintendo DS is more a step towards a suitable direction; however it now needs to also develop for a large mobile social network interaction and communication.
