Dec 11, 2006

Fundage: The Price Of Gaming In The Next Gen

So here we are, in the next - scratch that - CURRENT generation of console gaming, and I can't help but ponder the issues that affect the direction of the industry, and ultimately impact gamers. As Microsoft might call it, the HD era of gaming is upon us. The Xbox 360 is now just over a year old, and the PS3 has entered our lives like an electronic embodiment of a stock market IPO. Gaming is more popular than ever, but because everything is BIG Business, the very audience that nurtured and supported the industry from infancy may end up feeling the harsh sting of its maturation.

The world seems to revolve around money, a fact that is painfully evident in the development costs of the new game consoles. With dev kits costing around $10,000 for Xbox 360 and $20,000 for PS3, plus the much inflated overall production costs, creating new software is anything but easy on developers' wallets. There is a great expense in the creation of high-res art, and in working around the difficulty of strange CPU architectures, as well. In a recent interview with Bloomberg, Namco Bandai Holdings' president Takeo Takasu states that the company must sell half-a-million units of each new title on PS3 just to turn a profit. He explained that creating a new game costs roughly $8.6 million, and cites high-end graphics as the culprit. When development houses must grow and grow to meet the demands of new technology, accusations like this are quickly proven correct.

Furthermore, difficulties arise in the early stages of any new console generation, as developers learn to work with brand new development environments. They spend years perfecting their craft on a particular set of consoles, and when the next wave roles around, they become novices yet again, braving unfamiliar territory. As of right now, many developers are holding off on working with the PS3, due to its difficult processor and high costs. They are basically waiting on first party to show them how it should be done, to get an understanding before diving in.

Besides that, Sony will have shipped 400,000 consoles by year's end. If a company needs to sell 500,000 copies of their games in order to make money, then why on earth should they even be in production? With game creation becoming too expensive to make any money on, then developers will inevitably need to supplement.

So how might these companies manage to generate more revenue, then? Advertising. Consumers are already witnessing a steady rise in in-game advertising, as they drive by Burger King stores or get messages on their Cingular phones, or even simply watch and listen to "sponsors" integrated into a game's plot. In any way, shape, or form, advertising in video games cannot enhance the experience - only detract. This is not something many gamers are interested in enduring, and I don't like the idea much at all.

Or maybe game companies will try to save money by only creating formulaic crap. Will we see the same game reheated and served up time and time again? Resources can be conserved by rehashing games in this way, and never having to invest the same amount in development beyond the first iteration. Also, if a game succeeds, gathering plenty of public acceptance, then a sequel will surely be a safe bet. Sales are guaranteed - as long as that name remains on the box. It's been said before, but originality is in jeopardy during this new generation of gaming.

So money makes the world go round, and video games are not exempt from that law. Developers certainly have their fair share of challenges ahead of them in this new era of gaming, and as game creation becomes increasingly difficult and expensive, gamers can only hope that all the life is not choked out of the industry we have raised.

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