Counting Rupees: You drink their milkshake
Each week Jeff Engel and Geoff Brooks contribute Counting Rupees, a column on the business behind gaming:

Guitar Hero IV is on its way, and with it are coming individual games themed around Metallica, Aerosmith, and others. This follows the strategy highlighted by Activision CEO Robert Kotick last year, in which the executive promised shareholders to fully "exploit" the company's franchises on an annual basis. The immediate response of gamers was almost exclusively negative, not least because the prospect has connotations of poor quality and high pricing. Although Activision may be the only company to announce its strategy so publicly, it's hardly the only adopting these kinds of tactics. If it irritates gamers so much, why do companies in the industry do this? And is it as bad as it seems?
I would argue that the answer isn't as clear-cut as it looks at first glance. Let's start with why companies do this in the first place. Perhaps unsurprisingly, most people would immediately answer, "To make more money." Yet the logical implication – that "more money" comes from game players out there who are actually still purchasing these games – doesn't always come concurrently. If games were really being driven into the ground to the point that they lacked any redeeming features, no one would buy them; so there must be some value here for somebody. In short, this is more of a shorthand argument amounting to what a given gamer no longer finds interesting, is something in which no one should still be interested.
Additionally, it's worth noting that many of the "sequels" in question are not, in fact, pure sequels. Take Guitar Hero's single-artist titles – although there are quite a few numerically, they're really distinct flavors. Is a Metallica fan really likely to also purchase an Aerosmith game? Probably not – even though the two games are from the same franchise, there's really not a lot of overlap between the two. By creating the two products separately, Activision has probably done these fans a favor: They no longer have to purchase a package of bundled songs they may not be remotely interested in.
Perhaps the best theoretical argument against copycat games is the notion that they crowd out innovation, suppressing new and interesting ideas that would otherwise break through into the industry. Unfortunately, I think this view is also often misguided. Companies ultimately make games that they think people want to buy. This means that, frequently, they will chase trends, developing titles that ape other successful games that sold well. Almost as frequently, they will chase those trends too late: the substantial lag between conceptualization, development, and ultimate sale means that consumer tastes may very well change before a game comes out. For example, there are way too many MMOs out there right now for the potential population of players – yet many of those have already been in development for so long that it made more financial sense to complete them than to drop them entirely. (I remain surprised that there are developers continuing to make so many of them.) Yet this is ultimately a problem with consumer tastes and fashion; if publishers weren't chasing that specific trend, they'd be chasing a different one. The sad fact is that edgy, interesting, cutting edge games have the same problem that movies of that variety have: Not that many people are interested in them, because the money is in the mainstream.
Finally, the gaming industry is, in many respects, largely built on iteration. Admittedly, some genres, like the RTS, have failed to move much beyond even their most ancient predecessors – you'd be hard-pressed to find substantive conceptual differences between Command & Conquer 3 and the first game in the series. But most progress in gaming, like that in so many other industries, is methodical, the slow accretion of new feature upon new feature. Transformative, innovative change is just uncommon, whether in gaming or, say, physics. And the financial incentive to go after nice, large markets is substantial. Gamers should be careful not to confuse pursuit of low-hanging fruit with malice.
As co-editors of A Link To The Future, Geoff and Jeff like to discuss, among many other topics, the business aspects of gaming. Game companies often make decisions that on their face appear baffling, or even infuriating, to many gamers. Yet when you think hard about them from the company's perspective, many other decisions are eminently sensible, or at least appeared to be so based on the conditions at the time those choices were made. Our goal with this column is to start a conversation about just those topics. While neither Geoff nor Jeff are employed in the game industry, they do have professional backgrounds that are relevant to the discussion. More to the point, they don't claim to have all the answers -- but this is a conversation worth having. You can reach them at

I would argue that the answer isn't as clear-cut as it looks at first glance. Let's start with why companies do this in the first place. Perhaps unsurprisingly, most people would immediately answer, "To make more money." Yet the logical implication – that "more money" comes from game players out there who are actually still purchasing these games – doesn't always come concurrently. If games were really being driven into the ground to the point that they lacked any redeeming features, no one would buy them; so there must be some value here for somebody. In short, this is more of a shorthand argument amounting to what a given gamer no longer finds interesting, is something in which no one should still be interested.
Additionally, it's worth noting that many of the "sequels" in question are not, in fact, pure sequels. Take Guitar Hero's single-artist titles – although there are quite a few numerically, they're really distinct flavors. Is a Metallica fan really likely to also purchase an Aerosmith game? Probably not – even though the two games are from the same franchise, there's really not a lot of overlap between the two. By creating the two products separately, Activision has probably done these fans a favor: They no longer have to purchase a package of bundled songs they may not be remotely interested in.
"Gamers should be careful not to confuse pursuit of low-hanging fruit with malice." |
Finally, the gaming industry is, in many respects, largely built on iteration. Admittedly, some genres, like the RTS, have failed to move much beyond even their most ancient predecessors – you'd be hard-pressed to find substantive conceptual differences between Command & Conquer 3 and the first game in the series. But most progress in gaming, like that in so many other industries, is methodical, the slow accretion of new feature upon new feature. Transformative, innovative change is just uncommon, whether in gaming or, say, physics. And the financial incentive to go after nice, large markets is substantial. Gamers should be careful not to confuse pursuit of low-hanging fruit with malice.
As co-editors of A Link To The Future, Geoff and Jeff like to discuss, among many other topics, the business aspects of gaming. Game companies often make decisions that on their face appear baffling, or even infuriating, to many gamers. Yet when you think hard about them from the company's perspective, many other decisions are eminently sensible, or at least appeared to be so based on the conditions at the time those choices were made. Our goal with this column is to start a conversation about just those topics. While neither Geoff nor Jeff are employed in the game industry, they do have professional backgrounds that are relevant to the discussion. More to the point, they don't claim to have all the answers -- but this is a conversation worth having. You can reach them at











Reader Comments (Page 1 of 1)
Buckshot @ Jun 6th 2008 3:34PM
Greed
NATO_Duke @ Jun 6th 2008 3:35PM
"By creating the two products separately, Activision has probably done these fans a favor: They no longer have to purchase a package of bundled songs they may not be remotely interested in. "
The problem I have with these games is that they could be releasing new content for GH3 and instead are milking people who want the new music.
It would be much better to let people add to their library of songs until you have a real sequel with something big to offer - instead they are dodging the song purchases and forcing people to pay for an entire game. Also, I saw news that the already dl songs from GH3 wont work with these new games, that seems like a bad move to me too.
OMGOMG @ Jun 6th 2008 3:46PM
YOU DRINK IT UP!!!!!
ballistic3188 @ Jun 6th 2008 3:50PM
it is for the money. a game is sucessful cost quite a bit multimillion in some cases. how do you make more by milking it. the huge costs are gone you just need to add like one ability and new levels.
the reason it works is cause people have a high tolerance for milking. because the fun gamplay from the last game hasn't worn off. this is why people still saw pirates of the carribean 2 and 3 or why dynasty warrior is still being made. even though they were collosally terrible to their originator. great games produce fanboys. these fanboys are who the company leech off of for crappy milking.
milking will forever be about money
Dirty @ Jun 6th 2008 3:52PM
I'm not mad at em. I consider myself an informed consumer on everything I purchase. When it comes to games I am very conservative of what I buy. The way I look at it is that the Kids and Moms purchasing crap shovelware are only helping subsidize the good games. Activision took a big risk on guitar hero, now they are cashing in on their risk. Publishers are always going to be looking out for their bottom lines, its part of capitalism. As a shareholder for many game related companies I hope this to be true.
GepettoZHog @ Jun 6th 2008 3:57PM
The problem with this article is that it misses the most basic point of all:
With production costs being what they are (and the "band-specific" games requiring 3D models of Stephen Tyler/Lars Ulrich), why wouldn't Activision release the songs in these games as downloadable GHIII content instead?
Does Activision think that a band-specific game will really be penetrating the market of people that DON'T already have GHIII? If they didn't want to spend $60 on a game that featured twice as much music (and more diverse music), why would they spend $40 on a game that focuses on just one artist?
Releasing the album specific tracks as GHIII downloadable content would likely net more profit (Aside from having to justify an creating an entirely new game, the costs of marketing and shipping said game are hardly negligible) without tarnishing Activision's image to be called "a publisher that just releases the same old same old."
Guitar Hero Aerosmith is expected to have 30+ tracks -- with each track sold for $1.99 on PSN/XBLM, Activision can easily make more money if all tracks are downloaded (minus production costs too), and allow people that wouldn't purchase an entirely new game the opportunity to spend $10-20 on tracks that interest them. In fact, they might ENCOURAGE people that were on the fence about GHIII to pick up a copy!
Not only would Activision be heralded for providing additional content to GHIII owners in search of their next challenge, but they would be creating more overall sales by reusing their existing fanbase -- without forcing them to shell out money for a whole new game.
PunchyMcJunk @ Jun 6th 2008 4:00PM
Everytime I read one of these "Counting Rupees" articles, I always wonder where the conclusion is. As interesting as all the points are in regards to innovation (or lack thereof), you never clearly point to your own beliefs, or draw the various arguments into an argument. Should we change the system or keep it. Do we embrace Wii shovelware and crappy ports and sequels or should we embrace the indie developers and unique franchises? Tell me! I'm dying to know!!!
I still read with anticipation. You bring up very good points and approach the subject without bias. Those are definite plusses... I just always feel like there is one paragraph missing, though.
CyberKnight @ Jun 6th 2008 4:57PM
Maybe that's what the comment section is for; the article is intended to start a discussion, and we come up with the conclusion.
If he did offer a solution, then the comments would be initially biased around that one solution (either for or against). But by leaving off that "last paragraph", it gives us the chance to fill in the blank, rather than checking off "true or false" and calling it a day.
Or maybe he's just too big a wimp to come up with his own conclusion and put it out there for all to see; take your pick. ;)
Deck @ Jun 6th 2008 4:06PM
Greed and the fact that people still buy such products even though they are being whored out!
Adam @ Jun 6th 2008 4:43PM
I did a podcast episode on this very subject just yesterday. That's kinda creepy, Geoffrey. http://www.tumponline.com, episode titled "Rock Bandits," if you're interested.
JRM @ Jun 6th 2008 8:54PM
It's not exactly greed. It's more like a lazy way to make money. Doing these "Artist" versions, just repeats the same game, inserts some artists songs, and adds artist pics and graphics. This is Activision's response to EA's Madden series.
I don't know if they've done this yet, but a good idea would be to incorporate a new album into the games. It would be like buying a new Metallica album, but interactive too. (though not for $60)
FSK405K @ Jun 6th 2008 9:34PM
Is there really anyone who doesn't think that the gameplay--nevermind the graphics--of World in Conflict and Company of Heroes aren't lightyears ahead of the classic RTSs: Warcraft 2, Red Alert, Total Annihilation, etc.?
Grant @ Jun 7th 2008 2:03AM
These games are really the definition of milking a series for all it's worth and creating just more of the same.
They will review like shit because of this, but anyone who would read a review or game mag is not the type of person these games are made for. It's made for the dumbed down "pick up and play" group of gamers being formed due to the wii. While i don't think this is the type of shit regular gamers want, if these games are selling to the other crowd, and gives companies the revenues to make true squeals and innovative games, i say keep doing it.
Let the people who want lots of simple similar gaming to have it, and the real gamers, who know better, will get to benefit from their funding.
Steve @ Jun 7th 2008 4:23AM
Why sell you DLC when we can just fleece you for the cost of a whole game. Fuck GH right in the ass.
Hellion42 @ Jun 8th 2008 4:28AM
So... when was the last time that Neversoft made a game that DIDN'T have a celebrity on the cover? They rebuilt GH and didn't quite get it right, and then stuck Slash on the cover. Now the next two iterations (for lack of a more accurate term) rely on band fame rather than innovation to make a sale. Although this does make me wonder what Lars will look like with the mechanical-monkey drummer-animations...