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A Long 2008 Round-up

January 6th, 2009 Posted by Alex Beech

I can’t decide if this year has in fact been one of the busiest in gaming or if it just feels like it because this is the year I decided to start DoFuss. Either way the autumn was a busy (and expensive) time.

On the positive side quality isn’t suffering at the expense of quantity. From the start of the year we have had a steady supply of top tier games. Some of 2008’s early releases were delayed from 2007 while others marked a clear change in strategy. A few larger publishers made the conscious decision to avoid the usual holiday launch. Companies traded the forth quarter sales bump for a media dominance at time of release. Even with the extra coverage, the decision to move release date to a different season seems to suggest the industry becoming aware that it can sell all year round, not just the fourth quarter.

The holiday season onslaught was still present. It is these titles that sit freshest in player’s minds. Whilst every year I reminisce about Christmas gaming past it is hard to think of a year when so many quality titles were released. Perhaps testament to this is the fact that even established console exclusive franchises were quickly lost in the shuffle to the next big game.

It wasn’t just the big releases that made the news. It was a year which saw downloadable games further assert themselves firmly in the console space. The digital space has been exploited for sometime by small developers and for downloadable content, but this year saw Sony using it for ‘full’ games. Currently these games exploit the advantages and nature of their distribution. Probably so their online centric nature can be used as an excuse to the high street retailers. Until all gamers are online with sufficient bandwidth to support a total shift to the online market place, good relations with retailers remain vital.

Physical media and the fight with retail bring the topic of the resale market. Simply publishers want their product purchased new, as secondhand products yield them no profit. As a gamer I try and buy games new to support the industry and further development and innovation but at times this isn’t possible. Publishers are finding their own way to convince people to buy games new, for example downloadable codes packaged with new games, but with limited success. Digital distribution is of course a solution to this but if you take rights away from a customer concessions should be made to compensate them.

The download market brings with it the issue of piracy and with it digital rights management (DRM). Previously buying a game would give you physical ownership of it. Now the shift to digital distribution is changing this dynamic to the just the right to use a product. This year saw Spore come under fire for its DRM, notoriously only allowing three installations before needing reactivated by EA and used as a reason (excuse) by some to pirate. Public outcry caused quickly EA increase the number of installations to five. This is still not ideal, and until a middle ground is reach will continue to be a contentious issue.

DRM isn’t the only solution to piracy. Companies are now experimenting with free to play business models. From MMO’s like Maple story to action centric games like Battlefield Heroes, if these games can be monetized effectively with advertising and pay for content it could benefit everyone. Free for casual players and a constant income for developers.

Of course overshadowing the year and most of these issues is the economy. Unlikely to be solved in the near future it is already having effects on the industry. Though touted as recession proof, gaming did feel the pinch this year. Interestingly sales were not dramatically affected but profits were. As was consumer choice. Playstation 3 was probably foremost among the casualties in terms of sales, unable to keep up with the cheaper systems.

Already the recession has seen casualties as publishing houses close studios and some independent developers fold. Obviously this will affect us as gamers, but forget about that for a second. At a time when unemployment is on the rise and the number of jobs decreasing individuals whose work has entertained us have found themselves unemployed. Let’s hope the New Year holds better fortune for these individuals.

Onward to 2009 and the start of the year is looking strong with a number of quality releases lined up and continuing though out the year. I am sure we will see many quality titles again this year, but it will be interesting to see if in the current economy we will see as many as this year.

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Tags: 2008, 2009, DRM, Games
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5 Comments

  1. feitclub
    January 6th, 2009 at 5:22 pm

    I can’t help but wonder if the recession kept people from buying the PS3 or if Sony just isn’t doing a good enough job giving people reasons to choose a PS3 when the alternatives are so much cheaper now. Global market conditions aside, $200 and $250 are always going to outsell $400, unless that higher cost offers an experience the others cannot. If I hadn’t bought one already before the Microsoft price cuts I might have chosen the Xbox this year, and I’ve got no economic worries to speak of. Hell, the only thing stopping me from buying a new system now is my wife.

    Personally, I hope the big lesson the publishers take away from 2008 is to stop holding everything until the end of the year. This isn’t the Oscar race – we can’t just “catch up” on all these high-profile releases in a weekend at the theater. I own enough unplayed games right now to hold me well until summer and that’s WITHOUT buying any mega-epics like Fallout 3.

  2. alex
    January 7th, 2009 at 11:04 am

    I agree the PS3 is not only struggling because of the recession. I do think that it was responsible (at least in part) for the year on year 9% sales drop in November/December.

    It is unfortunate that so many tout the $200 price point of 360. Hard drives are becoming more important, and if people buy the Arcade unit they will quickly find themselves with an extra $100 outlay for an HD upgrade (sorry I should say gamers most casual users probably won’t run in to this). But that is still $100 difference, which is 2 games, and when the 360 come with 2 games to start with that is a much more appealing package.

    Now I don’t know who’s point in supporting…

  3. feitclub
    January 7th, 2009 at 5:24 pm

    You know and I know that the $200 Arcade model is missing something, but the average customer does not. Factor in the bundled games (even if they’re aimed at young kids) and John Q. Mallgoer is sold. Even if you do the math from a Pro model and include the Xbox LIVE fees, the Xbox still comes up cheaper.

    If Sony doesn’t go a price drop soon, the least they can do is up their bundles and add some software to that $400 box. Or both, that might win over some buyers who are on the fence.

  4. alex
    January 9th, 2009 at 12:44 am

    Very true, hence the gamer and casual user distinction. I’d assume just before April to bump their end of year figures or just after to kick of the 2009 financial year.

    Bundles would be their best bet at the moment I’m guessing though. Just because they are still loosing money on each unit and I don’t know how much more of a hit they are prepared to take…

  5. alex
    January 9th, 2009 at 1:35 am

    Talking of bundles…

    http://www.gamasutra.com/php-bin/news_index.php?story=21768

    Not really cheap though.

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