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How the Game Industry Works
Bugsport | 8:42 PM on 11.17.2009 13 comments



In all forms of entertainment, the aspect of selling commercial art is generally considered a part of the entertainment business. This business as people understand it, has been closing studios, merging properties, removing dedicated servers and providing trouble for people for a very long time now. Yet people fail to really understand how abstract the business and all forms of business really are.

See, when a company is a publicly traded commodity, its possession is broken into equal sized fragments often referred to as shares. An abstract reference to a collective of shares is commonly known as stock. As a company gains or loses money in its ventures, the confidence of said company wanes and waxes in the view of the public. This confidence filters into ‘perceived’ value of shares, which then quickly becomes the actual value of said stock. This is the lifeblood of sustaining companies. The quick transference from economic confidence to perceived value to actual value is not actually guided by any form of real logic or economic reasoning. It has been proven scientifically that the flakey, nonsensical and overreacting behavior of the stock market has connecting with such things as mass hysteria and herd mentality (with a little pheromones throne into the mix).

The economic confidence of a company, as mentioned above, is governed by earnings. Every year, executives and the CEO make an economic forecast for the coming year. This forecast predicts how much money the company expects to make by the end of the fiscal year. Such predictions are considered reasonable and in line with the earnings of previous years. However, if less than the predicted amount of money is made during the year, then it is considered a ‘loss’ by the executives, CEO, and shareholders (ie STUPID). They then cut down the production end by canceling projects, laying off workers and closing studios to reduce the money sink and increase gain.

This is seemingly counter to the fact that said ‘loss’ is not a loss at all, as such money did not exist before the prediction was made. For example, If a company predicted 100 million dollar gain and only made 95 million, then it is considered to have lost 5 million and the company has to let things and people go to make up for it.

Such as the case of the industry. But the illogic goes even farther than that. See, an entertainment company is broken into two parts, the creative section which makes the games, and the management section which contains all the producers, managers, executives and Chairmen. This latter section of a company takes most of the revenue produced by the larger corporation when they actually contribute nothing to the bottom line. They are by classical definition, parasitic, as they drain energy and power from the host while returning little to no benefit.


This economic parasite is everywhere, controlling and trampling the creative department under their ‘leadship’, buzzwords and execu-speak. It is the reason why Free Radical is dead and Westwood was let go. The people in this management ‘culture’ run the industry and our artistic culture. Virtually no executive has any experience with the industry they are knee deep in. They are interchangeable upper management. They are ‘leaders’, raised by the MBA executive ‘culture’ to go out and make money in any field, despite the fact that they have experience or working knowledge of the industry they are in. They’re trolling for profit as quickly as possible, no matter the consequences (short term gain versus long term loss). They are the reason while almost all games are homogenous products. They jump on a trend that sells and jump to the next one as soon as it comes along. They are the reason why big chain bookstores have a wall dedicated to James Patterson, yet shrink the Science Fiction department by 100 books a year. They trade in nonexistent commodities (forecasts) as if they were real, which led to such things as prospects and sub prime mortgages. And we all know too well how that turned out.

And nobody manages to see the unsustainable lunacy that North American economics have created. Nobody listens and almost nobody fights back (I haven’t bought an Activision game since 2003, Doom 3 doesn’t count as it was it just published by them). But people keep buying games and feeding the leeches and nothing ever changes because people sustain what is simply an illogical, unsustainable, stupid and frankly evil system.

You bought modern warfare 2 and that’s how Bobby Kotick, the scum of the industry and indicative of everything wrong with modern commerce, made 35 million in one week period. Congratulations!



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11 comments | showing # 1 to 11
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Diverse's Avatar - Comment posted on 11/17/2009 20:50
Diverse
"Doom 3 doesn’t count as it was it just published by them"

you're still putting money into their pocket bro
Bugsport's Avatar - Comment posted on 11/17/2009 21:01
Bugsport
okay, true. But they don't gain as much as if it were an controlled development house.
Tubatic's Avatar - Comment posted on 11/17/2009 22:46
Tubatic
Keeping the fine people at Infinity Ward, Neversoft and Blizzard gainfully employed by buying their products?

Such evil...
Technophile's Avatar - Comment posted on 11/18/2009 01:30
Technophile
You are right and you are wrong. It really really depends on who those "upper management" people are. If you are describing Kotick (and only him) then you are probably right, at least from what I have experience with. But I've also worked with plenty of these "management" types, particularly producers who not only contribute in ways you don't even seem to understand but are very creative people in their own right.

so while I understand how you feel (because I feel it too), I don't think it's quite fair to paint with such a wide brush
Bugsport's Avatar - Comment posted on 11/18/2009 08:08
Bugsport
with the exception of a few rare studios/publishers (2K, I assume Sony, the guys who used to own bioware) I argue that they are all MBA exchangeable executive types. It's the same across all industries, film, games, television

and well for your producers, I can easily tell you how lucky you are. I've found most of their ideas are nonsensical, not useful and even detrimental to a project. Most of them are MBAs or used to be secretaries. Also, Producers are not supposed to have creative input in a creative endeavor, anyways. The role of a producer as classically defined by most entertainment mediums is someone who controlls the workflow and monetary cost of a project. In other words, their the guys who keep things on time and on budget. see definition

Producer - a person responsible for the financial and administrative aspects of a stage, film, television, video games, or radio production; the person who exercises general supervision of a production and is responsible chiefly for raising money, hiring technicians and artists, etc., required to stage a play, make a motion picture, or the like.

They're not supposed to be creative. If they want to be creative then they should have gotten a job on the production end.

And tubatic. I don't like blizzard games or the company (especially since they removed lan, split a game into 3 full priced packages and are planning to charge users for battlenet). I'm not particularily fond of neversoft games (just never been into sports games). I got spiderman 2 as a gift from a cousin and didn't have to pay, hah.

And don't even get me started on Infinity Ward. They are complete traitors to their own design philosophy. Call of Duty was a perfect answer to the already stale medal of honor series. Call of Duty 2 (i played it at a cousin's house) was a high def retread of similar ground. They sold out the series when they allowed another, weaker developer to get their hands on it. Then Modern Warfare came out. While admittedly the set pieces were quite good, they mostly just drained the substance from single player and focused entirely on multiplayer. After the somwhat (the exception being zombies) World at War they finally got to MW2. And they turned a game about war into an action movie. They had so much focus of single player originally and the just gave it up in favour of schizophrenic action set pieces and a focus on multiplayer over singleplayer. And for all it's awesome action faction stuff, What I've played at my friends house is totally hollow and soulless to me.

let me put the progress of Call of Duty as a franchise in different terms.

Medal of Honor Allied Assault (where IW guys came from) - a bridge too far
Call of Duty - Saving Private Ryan
Call of Duty 2 - Saving Private Ryan on Movie Network. A retread but still good
Call of Duty 3 - Pearl Harbor
COD 4 - I'll admit the set pieces were pretty good in this game but still no coherent plot and schizophrenic pacing in a 6 hour game is kind of pathetic
COD WAW - Pearl Harbor on DVD. Another retread but at least you didn't have to pay 40 dollars in tickets
CODMW2 - the Rock. Flashy, 'edge of your seat', and controversial. Pretty to look at but when your done, you question the point of even watching it.

They're focus on multiplayer and style-shock single player (which ultimately has no substance) turned the CoD series from Spielberg to Michael Bay in six years.
Tubatic's Avatar - Comment posted on 11/18/2009 08:44
Tubatic
@bugsport

Right on: You don't like the product coming out of Activisions "holdings". But, there's alot of talent there that gets paid by this evil system you're denouncing. Just putting a face to your gripe, as I am want to do, sir. :)

I also think the role of a producer, at its best, is someone that has an eye and feel for creativity or the product at hand. Certainly, they're tasked with keeping the project on the tracks, but how do they do that? They've got to sometimes make the tough call on what features go into the final product. And, if you're going to give someone that sort of providence, as an exec, I'm going to want a guy that can interface with those creative types and come to a reasonable agreement on what gets attention.

Listings I've seen for Producer positions highlight a requirement to have had some QA background, as well as an understanding/passion for a certain game genre. Aside from knowing how to hack up a game to fit into a timeline, you've got to understand what's important, weighed against the needs of the suits and the wants of your sandals. Its not an enviable job. I'm certain though, the guy that had a hand in cutting out LAN, or dedicated servers, or the magic stuff that made Call of Duty single player great for you, probably had a hard call to make, and probably went to bat for you. Ultimately though, to keep people employed in the most secure way possible, that's what you've got to do.

Hmm. I'm not sure if I'm coming off as a fan of capitalism, or just a guy that consigns himself to the rules he's bound by...
Bugsport's Avatar - Comment posted on 11/18/2009 09:25
Bugsport
I don't say that developers or individual production people are evil, aside from kotick. I'm saying that the system itself as an inherently evil thing that runs on a illogical and unsustainable system. and it's this system that causes all the make whatever sells, closing studios bullshit we see nowadays. Executives and management are completely useless, but our consumer culture allows these creative parasites to exist.

And no they didn't have a hard call to make. In a creative industry, the suit is king for some reason. They say cut, the developer says how much. I can safely say that if it was a hard decision, then they wouldn't be calling that joke IWNet better than dedicated servers.

They aren't batting for us, not anymore. They bat for their bosses. All the things that come to now; DLC, no dedicated servers, no mods, truncated single player is veiled attempt to control consumers. They use these things to control players' length of experience, sustainability of community. With MW2, they can keep you playing until the next game, and then mysteriously just shut IWNEt or Live servers down, forcing us to move to their next product. Don't believe me? they did it to Burnout revenge when Paradise came out

And I just don't buy activision games because I don't like what they put out. I feel that their corporate mentality has had a severely detrimental effect on the quality and depth of their titles.
Tubatic's Avatar - Comment posted on 11/18/2009 10:45
Tubatic
Right, you don't say the people are evil. But that same "evil" system allows enviable lives for people that are artists, coders and are otherwise passionate about games and gaming. Activision isn't closing studios, because they're winning at the system. The fat cats are fatter, but the mice are staying fed also. That's not all evil, as systems go, I reckon.

And I'll agree that its certainly possible that an executive decision comes down, at times, with an undeniable force. But I would be completely surprised if no one in the IW/Activision circle made a case for sustaining dedicated servers somewhere along the line.

No quabble from me for your buying decisions, though! We're I an exec, I'd probably want to keep the fun, or illusion of fun, in the business of making games as much as I possibly could! But, to see a guy make wise enough moves to put his company, and his employees, in solid financial footing during a recession... well, I can't find too much fault in that.
taiki's Avatar - Comment posted on 11/18/2009 15:17
taiki
I'm going to take the weeaboo approach and ask...

Why is it that the non-western side of the industry is providing a bulk of the innovation? They're under the same pressures as Western devs, but yet, it's the Japanese industry that gave us the inspiration behind Rock Band, DJ Hero, Fighting games, stealth tactical, and the modern console RPG mega hit. They're run by the same MBAs who aren't games developers or even games people. Katamari Damacy wouldn't ever come out of Valve, EA, or Activision.

It's funny, Activision was started as a *response* to the rape of the games industry by overly corporate types who don't value creativity in games back in the late 70's and 80's, now they *are* the force that's making games simply not fun.
Bugsport's Avatar - Comment posted on 11/18/2009 20:26
Bugsport
well, that may not be necessarily true. A lot of the Japanese game industry (the exception being sony) is far more specialized than western side of business in which the upper management is interchangeable. I think people actually train like an apprentice in japanese companies to maximize their ability to profit with companies specific venture. Also a lot of japanese executives managers and producers i think actually started out as developers and worked their way up. It can also be safe to say that though videogames are pretty accepted as art there and thus a lot of focus is placed in the development and creative end as opposed to the commercial end.

Also remember that sega was originally american (specifically hawaiian) owned by Gulf+Western and got bought out by Bally after the videogamepocalypse of the 80s. And I wouldn't count valve because they did give us Portal and the Half Life series is distinctly important as a landmark for interactive fiction (it succeeded in telling a compelling, unique tale from the least narrative genre possible at the time, FPSs).

And for Activision being a haven from the crass comercialism that destroyed the industry having become a horseman of the second videogamepocalypse? Well, I'll just quote The Dark Knight, "You either die a hero or Live long enough to see yourself become the bad guy".
taiki's Avatar - Comment posted on 11/19/2009 15:51
taiki
I never said it was crass commercialism was a problem. if it wasn't for crass commercialism, Bandai wouldn't bother pumping out new Gunpla every month and Valve wouldn't be putting out cute Headcrab plush toys.

I think part of the problem is gamers. If western gamers are going to look at Half Life as anything but a standard FPS shooter with pretty bland ass characters then it's their fault when the market gets flooded with bland ass FPS games, and that's the way that suits are going to go.

That doesn't change the fact that suits are largely crushing creative output though. It's probably a larger zeitgeist in American business that short term gains now are more important than long term viability. I mean, if any number of middle and upper management folk get fired *right now*, it's a very simple matter of time before they can find new work. Long term, they're set, they don't have to think long term. They don't have to worry about loyalty either.

It's really why when looking at the history of both the Xbox and Playstation brand names, you realize you went from a Seamus Blackley, a man who couldn't give a shit about gaming to Peter Moore, a guy who couldn't give a shit about the Xbox.

Meanwhile the Playstation went from Ken Kutaragi at the helm of the PS1, to Ken Kutaragi at the helm of the PS2, to Ken Kutaragi at the helm of the PS3. Agree or disagree with whether or not it's a good console, the fact is, it was consistent. It's standards compliant and isn't completely locked down.
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