Quotulatiousness

June 18, 2013

Console game industry model is broken – must be patched with huge wads of customer money

Filed under: Business, Gaming, Technology — Tags: , , , — Nicholas @ 10:23

At Techdirt, Tim Cushing explains why the console gaming industry’s problems should not be “fixed” by taking away the customer’s rights:

If the current business model is unsustainable, why is that the consumer’s fault? More specifically, why are customers being pushed into giving up their “first sale” rights, along with being asked to plug the holes in the leaky business model with wads of hard-earned cash?

On top of this imposition is the assumption the current model is the only model [$200m movie, anyone?] and that mankind greatly benefits from “thousands of developers” crafting AAA titles. This is completely backward. The industry exists because of its customers, not despite them. AAA studios are not benevolent deities. They’re companies that exist because there’s a market for their products. If this market dies, so do they. If the prices are too high, customers buy elsewhere. Or not at all.

[. . .]

It’s beginning to look like a few members of the industry have been cribbing pages from the disastrous playbook of the recording industry. Raise prices. Blame customers. Bend the world to your business model. Is it only a matter of time before the gaming industry begins lobbying Congress to shut down secondhand sales?

Oh, and if the above twitrant weren’t galling enough, Cliff B. throws in a little something for those who find the online requirements of the Crossbone to be dealbreaker.

    “If you can afford high speed internet and you can’t get it where you live direct your rage at who is responsible for pipe blocking you,” he said.

Really? Maybe I’ll direct my rage at the entitled jackass who’s supporting a company’s decision to effectively limit its own market simply because it can’t live without some sort of DRM infection. And what if you can’t afford high speed internet? Well, you must be one of those people who live in the area marked “Whogivesashitland” in Cliffy’s mental map. And trust me, plenty of rage has been directed at the “pipe blockers,” but they care even less about their customer base than the area of the gaming industry Bleszinski represents.

Those interested in gutting the resale market to protect their margins are turning potential customers into enemies. If you can’t adapt, you can’t succeed. These moves being made by Microsoft (and supported by industry mouthpieces) are nothing more than attempts to subsidize an unsustainable business model by forcibly extracting the maximum toll from as many transactions as possible. The industry is not a necessity or a public good. If it’s going to make the changes it needs to survive, it needs to give up this delusion.

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