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Do You Play It Safe?
 
Jonathan Yost, Editor In Chief at Racket Magazine, posed this broader question on the Media Professionals Group discussion, by the same title, on LinkedIn:  "What I mean is, for all of you managers/owners out there: are you doing anything new or interesting with yourselves to make it through the crap economy and social paranoia of a recession? Do you delude yourself in thinking what you do is new, or are you ACTUALLY doing something new. For you young start ups, how do you plan on 'making it?'"  The following is a response.
 
October 17, 2008
By Eric M. Scharf
 
As a member of the games industry, the simplest and most forthright answer would be that business will go on as usual with little need to "play it safe" – and an increased focus on interactive entertainment products that require less overhead, less development time, less investment, simpler distribution methods, and a lower cost to consumers: (1) browser-based games, (2) casual games, (3) mobile games, and (4) Xbox Live Arcade games (as well as similar services from Nintendo and Sony).

Regarding subscription-based games – such as MMO's – publishers are simply going to stand pat with their current rates or lower them, and their decisions may, ironically, have more to do with a lack of quality competition than penny-pinching consumers (e.g. there is World of Warcraft and, then, there is everyone else).

Regarding "standard" game development products, such as your everyday PC or console video games, publishers and developers alike will be praying a bit that consumers do not suddenly become less predictable and far more judicious with their money vs. rarely appearing (according to annual marketing data) to have a problem spending $50-60 US on a PC or console video game that may provide no more than eight to twelve hours of enjoyment (which equals out to a few days for hardcore gamers and one to three weeks for happy-go-lucky folks).

In general, however, again, I expect more business as usual within the games industry, until something truly cataclysmic occurs. Any renewed or enhanced focus on casual entertainment will ultimately amount to taking advantage of a higher demand for an existing type of product that happens to cost consumers much less than usual.
 
 
 
This response was posted publicly on the associated LinkedIn Group discussion blog.