Category Archives: Marketing / PR

Playing with MMOG Pricing

A couple of days ago, Sony announced a new MMOG bundle. Starting March 14th, you’ll be able to buy EverQuest Evolution, EverQuest II, PlanetSide Aftershock, The Matrix Online, and Star Wars Galaxies for just $39.99. The move (among others: 1, 2) has its fair share of detractors; this Penny Arcade comic sums it up.

While I do believe that the game industry generally over-emphasizes the importance of pricing signals (we desperately need more $30-$40 high-quality games), I have to agree with Sony’s critics on this one. The MMOGs that Sony is pitching are (mostly) “high playtime” games which, when they’re successful, tend to encourage long and frequent gameplay sessions. And they all appeal to a hardcore audience. The problem is, a hardcore gamer who’s going to play an MMOG for ten, twenty, or thirty hours a week isn’t going to care overly much about the initial price of the game. He/she is going to care about who’s playing it, and how it compares to other MMOGs on the market. When you’re going to pay $10 or $15 a month for something, and play it constantly, the first $50 doesn’t mean a whole lot.

On the other hand, I think there is room for experimentation on the recurring fee side of the equation. Significantly reduce the recurring fees, and/or increase the “free” initial play period, and people may choose to try your game (and/or maintain a mostly-inactive account) just because it’s “cheap”. This is different from waiving the fee but capping the player to a newbie area or restricting their level growth; that strategy might work for casual gamers, but not the hardcore gamers who want to level up fast, and who are the most likely audience for a game like EverQuest II. Of course, if you’re battling for the hardcore audience on price, you’ve probably already lost the war…

Long story short, I think this is one case where a negative price/quality signal will be sent. There might very well be an influx of new players when the bundle hits the shelves, but I bet they don’t stick around for long — unless subscription fees go down. And even then, I wouldn’t hold my breath.

“The Continued Growth of Gaming”

I just sat in on the “Continued Growth of Gaming” panel at the MBA Media and Entertainment Conference in New York. Moderator: Cyrus Beagley (Engagement Manager, McKinsey Entertainment Practice). Speakers on the panel: Greg Costikyan (Founder, Manifesto Games), Chris Di Cesare (Director of Marketing, Xbox), Nique Fajors (VP of Brand Management, Atari), Frederic Markus (President, eRelevant Games), Joseph Varet (Sr. Director of Biz Dev & Strategy, MTV Networks). I managed to catch most of what was said, except in the case of Greg Costikyan, who speaks two to three times faster than most normal human beings.

Topics discussed: What makes a franchise successful, MTV’s role in the video game industry, innovation, the attractiveness of various game markets, and some questions for Microsoft about portables and shortages.

Read the full transcript here.

Market to Women, Already!

I almost missed a great letter to the editor that appeared in Gamasutra two weeks ago. The writer takes Kristen McDonnell to task for perpetuating the stereotype that “typically, women in general like puzzle, card, and word games. Some quotes from the rebuttal:

News flash: a lot of women enjoy the hell out of Stephen King, Joss Whedon, Saturday Night Live and MXC (which, due to its puzzle-related content, should be removed immediately from Spike TV and be re-broadcast fulltime on WE and Oxygen). And: Men don’t all flock instantly to the same games or get the same experience out of a game, so why should women? Finally: Please, please, please call off your quest to develop the single game genre to lure in some marketing department’s perceived ideal, a perpetual girl-woman that has never matured beyond a morbid, society-pressured fascination with pink nailpolish, Barbie, and shoes.

I couldn’t agree more. As Alice (of Wonderland) once pointed out, games have been marketed almost exclusively towards men for 25 years. You think that might have some long-term consequences?

I don’t buy the notion that women can’t become avid consumers of AAA titles. Women just need to be enticed into console games in general. At least one study has found that once women get into AAA games via any given genre, they become likely to branch out into other genres, including competitive genres.

I’m not suggesting that marketing is solely to blame for the state of things. There is, for example, the issue of female character hyper-sexualization in many games. Some argue that male game characters are equally extreme in their comeliness, so why should it matter? I think there’s one key distinction. Try the following thought experiment. Imagine a game in which all the female characters are very attractive, but not in a hyper-fictional manner. Now imagine the male characters — equally attractive, but with one notable “feature” — a huge bulge in their pants. The very thought makes me laugh, but I suspect that many men would be slightly repelled by such a game. Who knows how many women fail to become hardcore gamers because, consciously or subconsciously, they dislike staring at giant tits for hours on end? (BTW, I recognize that there are exceptions. Lara Croft was appreciated by many women, despite her “endowment”. But Lara Croft also represented strength and independence.)

Anyway, I’m not unique in calling for a concerted, long-term effort by console makers, publishers, and developers to market more towards women. But I think the call is worth repeating. This isn’t a charity case or a politically-correct social cause. We’re talking about billions of dollars in potential industry revenue being squandered. The Tycoon in me just can’t stand that.  ðŸ˜‰

PS. Before someone tries to play gotcha: yes, I know that women do indeed represent the majority of puzzle game players. This doesn’t change the fact that they could be enticed to play other games…

Franchise IP-Based MMORPGs: Good or Bad?

Via Slashdot, an interesting debate over whether MMORPGs benefit sufficiently from being based on major franchise IPs (like Star Wars). Paraphrasing the arguments in favor:

  • It almost guarantees a strong launch.
  • Design limitations required by the IP actually enhance the design process by focusing developer innovation within a narrower subset of possibilities.
  • The popularity of the Lord of the Rings and the Harry Potter movies proves that you can create your own vision of a franchise and still make (enough) fans happy.

Arguments against:

  • Players turn away from IP-based MMORPGs because they cannot live up to the fanbase’s expectations. At the same time, original content (which an MMORPG must have) is always at risk of offending sensitive fans.
  • Developers have less flexibility when designing the environment, its rules, and the content that makes the game interesting (or not).
  • With pre-existing protagonists (i.e. Luke Skywalker) running around, players are left to portray secondary bit-players at best. Players want to be heroes, not bit-players.

The arguments against seem more persuasive to me. That said, I think it’s premature to assume that franchise-based MMORPGs can’t work. Many have worried about sensitive fans, and there is real risk there… but on the other hand, fans clearly are willing to embrace new, well-conceived content; so willing, in fact, that they often create their own. I wish I had a dollar for every homemade Star Wars script.

Naysayers generally flaunt Star Wars Galaxies as proof that franchise-based MMORPGs can’t work, but SWG’s failure had little to do with “sensitive fans” or protagonist-envy, and more to do with the fact that SWG was boring. Quoting from the Gamespot review: “…gameplay is generally slow and uneventful, and that once the novelty of the Star Wars setting wears off–and it probably will–there isn’t much of interest to be found in the game at this point.” We’ll never know if most fans would have tolerated much “original” content because of this.

Nor will we ever know if “protagonist-envy” could have been dealt with by simply making it a little easier to become a jedi (as opposed to making it trivial, which is what Sony did with its disastrous new game enhancements). And players were given extremely limited tools via which to enrich the universe with their own content and stories, despite claims that SWG would be a paradise of user-generated content. Players wanted to contribute, but most found the process too unrewarding. And that’s a shame, because capturing that energy is one of the things a great franchise-based MMORPG could potentially do very well.

Gaming’s Gender Gap Vanishes in the UK

Via Joystiq, (almost) everything you ever wanted to know about UK video game consumer demographics. Not too many surprises in there, but two things did catch my attention: 1) There are nearly as many female gamers as there are male gamers in every single age segment. They often play different games, but in general the gender gap has nearly vanished. 2) A nearly equal number of men and women play MMOGs.

Given that RPGs have always been more popular with women than, say, FPS or sports games, I suppose it isn’t such a huge shock that many women are playing MMOGs, since most of the currently-popular MMOGs fall into the RPG genre. Furthermore, studies have shown that women tend to prefer collaborative games, and most MMOGs certainly qualify as collaborative. I often dismiss the MMORPG market as being overcrowded, but this makes me rethink that assertion. A little.

PS. Oh, and if you didn’t already read it on every other game-centric blog ever written: the ESA just announced that 35% of US parents play video games.

Google Video Resurrects the 80’s

Tomorrow, I intend to write something timely and professional. But today, I want to treat you to this fantastic old NES advertisement. Go on. Click it. You know you want to.

In the past, I’ve questioned the video game industry’s reluctance to embrace older consumers (casual games notwithstanding). But seeing this old TV ad forces me to admit that we’ve come a loooooooong way. On a tangent: the wikipedia entry for the NES is very nice.

The Rise of Used Video Game Trading Networks

Kotaku has spotted a new trading network for used video games. At iTradeVideoGames, you sell your used games to other users for virtual currency, which can then be used to buy other games. iTVG charges a small fixed commission on each trade. That (and shipping fees) are the only cost. I’ve noticed several competing networks, all of which seem relatively new; for example, the Game Trading Zone and Nintari.net.

iTVG’s pitch is that it enables you to capture the full market value of your used video games by cutting out the retailer. This assumes a sufficiently large and active user base (which the network may develop over time, but which it seems to lack as of now). It also assumes that corrosive forces (fraud, pirated copies, etc) don’t overly infect the market during its early stages of development.

Furthermore, iTVG’s value-capture claims are not unique. Ebay effectively offers the same thing right now by connecting a great many buyers and sellers, and by featuring a reliable, established reputation system. You may get “less” currency (in this case, real dollars) for each game you sell, but each game you buy costs less as well. Ultimately, with a bit of caution, you can effectively “trade” games via Ebay and lose little value in the process.

The main differences between Ebay and iTVG are as follows: By taking real money out of the equation, iTVG might make skittish users feel more comfortable. (It certainly makes trading simpler by eliminating the process of collecting payment.) In general, iTVG is more focused and streamlined. Finally, iTVG reduces transaction friction by offering lower commissions and eliminating payment fees, which ultimately benefits the end user. Whether this is enough to attract a critical mass of active traders remains to be seen.

PS. I mentioned a few ideas for reducing the incentive to trade games in a previous editorial. One more: how about making it clear to customers that once or twice a year (timed perhaps with major holidays), new & interesting expansion content will be made free for download? For example, a new game level or feature? Nothing rivaling the typical retail expansion pack, but just enough to keep customers engaged, discourage game resale, and maintain excitement till the expansion and/or sequel is released. (Multiplayer-centric games have less problem with resale in general, but even they can take advantage of this strategy.)

More to Football than Madden (or Realism)

Yet more proof that the sports video game market isn’t so predictable. Midway’s Blitz: The League, made without an NFL license, and featuring exaggerated aggression, sex appeal, and a story penned by a former screenwriter for ESPN’s “Playmakers”, has sold about 350K units, and Midway predicts that sales will hit 1M.

This represents just a fraction of the over three million Madden 2006 units sold as of October alone. Nevertheless, it has been accomplished without a license and without EA’s marketing budget, in a year defined by disappointing industry sales (in general).

What I find interesting about Blitz is the number of reviewers who have extolled it for “bringing creativity back into the genre.” An article in Slate goes so far as to argue that “EA Sports has been taking choices away from Madden players for years.” This is presumably due (in large part) to strict content controls dictated by the NFL itself. Personally, I’m just thrilled to see an unlicensed property succeeding in a competitive market. It can be done!

No metacritic score for Blitz yet, but here are some reviews: Gamespot | IGN

Why It’s More Than Just Courteous to Play Nice With “The Suits”

I like slow news days; they give me a chance to think aloud.  ðŸ™‚

A few weeks ago, I read an article in Gamasutra entitled Incorporating Marketing into Game Development. The author makes some really worthwhile points, but I’m not highlighting it for that reason; I’m highlighting it because it exposes deep prejudices that have plagued the video game industry for years. The article begins:

Have you ever tried to design a video game while wearing a suit? Doesn’t work. The moment you don that matching slate Armani you become a “suit”– your imagination is instantly limited to sequels of licensed ’70s TV shows and clones of titles that were popular and groundbreaking two years hence.

The problem is that there’s always a “suit” with an eye on the bottom line that will want to muck with your design. Armed with sales figures and focus tests, he threatens to steal the soul of your game. His intentions are good — he wants to make sure the game sees financial success — but his relationship to the game design is antagonistic rather than collaborative.

Here’s a suggestion: do his job for him…

This sentiment is endemic to the industry. I even experienced it at EA, which prides itself on an “X Process” intended to encourage cross-functional cooperation. Ever heard of “division of labor?” This amazing concept has permitted the development of modern civilization. Not that hunter-gathering wasn’t fun and all.

Good marketing professionals spend their day trying to understand the customer. They study mechanisms via which to connect with buyers. They explore strategic pricing models (which, I’m afraid, is tough to do from an armchair. A few thousand marketing professors are still trying to figure this stuff out.) Say what you like about their effectiveness, but marketers must, by definition, have something to share. If nothing else, a competing point of view! Homogeneity is as helpful to a business enterprise as it is to the evolution of a species… in other words, not.

Instead of insulting “the suits”, why not make a sincere effort to work with them? This means more than the occasional courtesy call between development milestones. It means inviting them to game brainstorming sessions. It means asking to attend to some marketing meetings. Does this take time? Absolutely. Will some significant percentage of the suits’ feedback go straight into the trash? Very probably. But who knows … you might just get a million-dollar insight during the process. Meanwhile, you’ve built an actual relationship with the people you’re counting on to sell your product! They have more reason to like and respect you, and hopefully vice-versa. Isn’t that better than bitching and moaning when your game gets marketed “the wrong way” (assuming it gets marketing’s attention at all?)

This stuff takes time. If you’ve never bothered to build a relationship with the suits, you won’t do it overnight. But the rewards are worth the effort. This isn’t mindless blather like “there’s no ‘I’ in team”. It’s a fundamental recognition of the fact that nowadays, without market insight and marketing support, a game is probably toast. You can try to wing it on your own. There’s certainly a chance you’ll get lucky (it happens all the time.) I prefer not to count on luck.

PS. This editorial is not a defense of innovation-phobic business types. Yes, they exist, and yes, it can be painful to work with them. That’s no excuse to ignore the real benefits of a strong working relationship with the business team (in general.)

High Video Game Prices Don’t Impress Your Mom

If you can’t imagine hesitating to purchase a $60 game, here’s a useful glimpse into a different world.

There’s no shortage of opinions on the subject of higher-priced games. Here’s a great summary. The “$60’s OK” camp says: “The $60 price point will highlight to every gamer that Xbox360 games are much more sophisticated and different” (VP marketing, SEGA). The “$60’s crazy” camp says: “The first million’ish early adaptors will begrudgingly pay the price, but it will be a challenge to convince the larger audience to start paying more for games. Which will be fine for the rental business, but bad for publishers and developers.” (President, Oddworld Inhabitants). Good for rental *and* pre-owned sales, for that matter.

Of course, the entire question of a single, fixed price is pretty archaic. Why not charge less, then give consumers the option to purchase more content if they wish? And, at least when the installed console base gets bigger, why not use a lower price to expand the market (and steal some market share along the way, like Take-Two almost did at the expense of the Madden franchise. EA ultimately shelled out a ton of money to lock-in the NFL license, but at least Take-Two forced the transfer of some profit from a competitor to a neutral party.)

It’s worth noting Microsoft’s decision to sell 360 first-party titles for $50, not $60. This is a company that understands pricing strategy, and whether they’re looking to sell more games or more consoles, the ultimate message is the same (since game sales drive 360 revenues — not console sales.)