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The game development landscape is changing rapidly. We're almost going back to a time that we thought we'd never see again, a time when a couple of programmers and a couple of artists could get together and make a game. This has been made possible by new technologies like the iPhone, Facebook and XBLA among others.
Startups with 3-10 members are cropping up all over the place to take advantage of these technologies, and some of them are doing extremely well. However it is an increasingly crowded marketplace, and only a few will actually succeed in the short-term, and far fewer will see long term success. The iPhone simply cannot sustain the shear number of developers who think that they have the killer game app.
At the same time, the barrier for entry into the console market continues to rise, with the exception of downloadable games. Even that market is being targeted by larger more established companies so the level of competition is extremely high.
So, what will happen to these smaller start-ups that simply can not compete with larger companies? An extremely small group will have enough success to grow, but 99% will not be able to achieve this.
So what can smaller companies do to not be left behind? Let's take it from another angle. Hundreds of these companies now exist. Thousands of people of various levels of expertise are now working in their basements on game concepts, artwork and code. How can we bring all of these people together?
Instead of forming small game companies, let's form strike teams. My own company is geared toward developing custom tools. Others could concentrate on gameplay, engine development, design, modelling, animation, and so on, centered around a production focused group.
All of a sudden, you're a part of a 50 person team able to compete on the same playing field as the EAs of the world. It would take planning and a great deal of quality control, but in the end, you'd have an alliance of game developers, sharing in the spoils of victory.
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The idea is far too risky for "no money" indie studios though. Two modules deciding to work together *MUST* have the utmost confidence in each other before forming a collaborative relationship. Normally a single person can be a choke point for 1 company, but with 2 studios working together it would amplify the problem making it possible for 1 person to ruin 2 companies. Not bad if you're actually trying to kill 2 birds with 1 stone.
So it's preferable to break up into specialists that share - whether directly, as "strike teams" or collaborations, or indirectly through contributions to the commons. Regardless of whether your approach is to hand out code and assets, to sell and support a commercial product, or to contract your services, you'll get a "rising tide lifts all boats" effect, one which benefits all developers in the end.
I will admit that I don't think the "strike team" approach will scale well because of the extremely heavy communication of most game projects. Communication is already a major problem of the existing large studios, but they at least have the benefit of letting their staff cluster in one location. A error in communication that gets resolved by walking two desks over in the studio may become a lengthy phone or email back-and-forth - multiplied by however many people are involved in the project. It's more cost-efficient in the end to have one tiny, close-knit team with a lengthy schedule and a bare minimum of outsourcing to cover the biggest weaknesses, than to set in motion a complex paralleled process with dozens of independent teams working towards the "same" goal.
But if you're each making projects that are based on a common pool of knowledge, communication is no longer an issue. That pool will just gradually grow bigger and bigger, until one day, you alone are empowered with productivity that no large developer in the past could have dreamed of. We're already seeing that at the low end of the field today - there are lots of off-the-shelf engines, techniques for the common problems, etc.
I've personally been working on a tool for various 2D game tasks, specced with my current project in mind, but with lots of general-purpose features that would interest others. It will be released open-source, GPL, when I've got it ready for use. It's taken about a month of work. A sizable chunk of time, but my tiny cost of living lets me actually profit from unemployment benefits, so the usual incentives to ship a game fast are quite low... :) And I sincerely hope that it will help not just me but others, as well.
What we really need is something like sourceforge.com, but for content. There are some sites with a similar goal, sharing content packs, but none of them seem to have the same weight as sf in the code world.
I think one of the reasons behind this is the lack of at least quasi-standard ways of doing all this. We more or less know how to write reusable code libraries, but we don't really have established ways of sharing anything else.