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Features
  The Casual Games Manifesto
by Daniel Cook
8 comments
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April 8, 2008 Article Start Previous Page 5 of 6 Next
 

Conclusion

There is no reason for casual game developers to play second fiddle to their distribution channels in the same way that many mainstream game developers bow to their retail-oriented publisher masters.

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There are some larger themes at work here.

  • Direct relationships with customers. Business models are emerging that let game developers have profitable, direct, long term relationship with their customers.
  • Disintermediation. The traditional middlemen are no longer critical to the developer's survival. Maintaining brands and customer relationships can be handled directly by the developers. Managing an expensive portfolio of disposable content is mitigated by the use of community specific game systems.
  • Delivery of long term value. The value driving these models is primarily based on socially rich communities, meaningful brands and highly reusable content. Disposable content, in the form of game mechanics that you play for a short period of time and then toss aside, make less sense from a financial perspective.

Image Copyright Charles F. CooperIt will take a long time before all game developers wean themselves off the current crop of middlemen. Just as traditional publishers have not disappeared in the face of online portals, neither will portals disappear in the face of developer-run services.

Instead we are left with a mixed ecosystem populated by developer-run services living alongside powerful, well-established middlemen from the previous era.

It is highly likely that existing middlemen will be slow to adapt to the increased negotiation power of a small, but growing portion of the developers. Many will be outright hostile to what they perceive as a threat to their core business. That's okay.

There is absolutely nothing they can do to stop developers creating exciting services. The smarter portals will figure out how to provide additional value to these bright new customers in the form of efficient marketing and distribution offerings, international operating deals, and other activities that add value.

In the long term, this sea change is a good thing. Business models that liberate developers from the yoke of publisher and portal funding releases powerful market forces that drive product innovation.

Bigger profit margins for self sufficient developers mean that they are more likely to single-handedly take on the "crazy" risks that result in new genres and increased markets.

All in all, the introduction of service-based casual games companies once again makes the casual games market an incredibly exciting and dynamic place to build games. The opportunities for brilliant new businesses are boundless.

 
Article Start Previous Page 5 of 6 Next
 
Comments

Anonymous
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Great article and echoes many of my thoughts, feelings and fears for the causal indie industry. Having worked on and recently completed two best-of-breed quality games I can say Strategy B: already fails. Portals are already demanding 75% and have no intentions of giving you their customer info. Not even if you were to give them 100% of your profits. They know, as you pointed out, it's the customer thats the gold. :-/

Anonymous
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The main problem I see is that the portal themselves are utilizing community building to achieve lifetime customer loyalty, and if the developers try to compete against that, then the portals would nip the whole thing off at the bud when negotiating the initial publishing deal--stating that the developer cannot design such a system into the game that will lead the customers away from the portal and to the developer's own community. When that happens, what then? If no portal is willing to sign a contract with you unless you don't compete against their online community service, what do you do then?

Jason Pineo
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Compete and win?

Charlie Nyisztor
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Thank you for this detailed analysis!
I needed such a description as I will publish my game soon through online channels. Hope it will work!

Best regards,
Charlie

Anonymous
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Jason Pineo - I don't think you can simply say that. That's like saying "Just compete with core game publishers and win." Portals have massive financial backing and are in many ways far more powerful.

Chris T
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"Portals have massive financial backing and are in many ways far more powerful."

You are actually being naive. Sure, if there was one portal (publisher) and they had a monopoly on distribution (EA) then yes, you would be beholden to their demands. But that's not the case. There are a ton of Portals. If one of them is being unreasonable, go to the next, and keep going to the next until one of them doesn't put unreasonable demands on your product. Its unlikely that every single portal will be savvy enough to demand no-developer-services.

Not only that, but its simply a case of framing the pitch. If you say "my program has online scores!" then they'll actually use it as a selling point, rather than immediately assuming you are attempting to steal their revenue.

If all else fails, you can go it alone without the portals anyway. Since you as a service provider have instituted your own billing mechanisms, you have covered one-half of what the portals offer, and the other half is simply word-of-mouth. That means its time to go guerrilla, and email every online-game-blog, every review site, post on forums, and take the marketing aspect into your own hands.

At no point are you completely overwhelmed and smothered by the existing giants. It's simply an issue of thinking creatively and going around them when you can't go through them.

Anonymous
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PlayFirst's Diner Dash Hometown Hero has a generic portal version which is sold at $19.95 and a Gourmet Edition with microtransactions and (PF-registration required) multiplayer which they sell at $19.95. Which distribution channels are giving away their customers by selling the Gourmet Edition?

Dress Up Games
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Great article. I think that the casual game market is very competitive especially as the quality of free online games rises. As you pointed out, as tools used to create flash games and other like "Second Life" continue to improve they will play a much more prevalent role in the casual gaming community.


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