Linked by Thom Holwerda on Sun 2nd Feb 2014 18:08 UTC
Games

I don't like writing negative articles that don't include a solution to the problem, but in this case, there is no solution. The state of in-app purchases has now reached a level where we have completely lost it. Not only has the gaming industry shot itself in the foot, hacked off their other foot, and lost both its arms ... but it's still engaging in a strategy that will only damage it further.

Why are these gaming studios so intent of killing themselves?

Because massive application stores created a race to the bottom - as well as a huge pile of crap to wade through. Ten to twenty years from now, we won't look back favourably upon the App Store or Google Play.

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RE: Gamers are no longer the market
by reduz on Sun 2nd Feb 2014 19:20 UTC in reply to "Gamers are no longer the market"
reduz
Member since:
2006-02-25

This is actually more true that you imagine. I worked in several work for hire projects making games with IAPs.

The bizarre thing is that most people DO NOT invest money in such games, not even a little. Profit comes from few users that invest a lot, and there is not really anything in the middle. It's either whales or nobody.

Who are the whales exactly? No one knows, is it compulsive players or rich guys with plenty of money to spend? No one really knows.

Meanwhile, Steam is doing the same thing Nintendo did in the early 80s, which is to create a place with a quality bar for publishing, gamers love it and spend fortunes on content that is worth it.

Still, amazingly, investors and publishers ignore this proven formula of creating quality content, ignore the fact that distribution is cheaper than ever, and keep insisting on mobile and facebook with IAPs to a point it's ridiculous. At some point it's going to crash.

Edited 2014-02-02 19:21 UTC

Reply Parent Score: 9

CapEnt Member since:
2005-12-18

It must crash, for the love of god! Crash and burn!

Investors and greed publishers do not really knows the game market, they just want the money and that's it.

Just take a look at the games made by gameloft: a large chunk of it are just shameless ripoffs of popular PC/console games. Same for Zynga. This gives the whole Android game ecosystem a bad name, and keeps serious studios away.

The very first step to raise smartphone gaming to portable console quality (DS/PSP) is washing away these crappy companies.

Reply Parent Score: 5

Nelson Member since:
2005-11-29

IAPs also benefit many small time developers as they are the most convenient purchase method (coupled with pervasive carrier billing).

Reply Parent Score: 4

The123king Member since:
2009-05-28

The mobile gaming market is a bubble. A bubble that will eventually, and likely very soon if it hasn't happened already, pop. Think the dot com bubble but with hipsters. I give Zynga 5 years until they're bankrupt.

We're nearing a new video games crash, just this time there's no cartridges to bury.

Reply Parent Score: 4

WorknMan Member since:
2005-11-13

Who are the whales exactly? No one knows, is it compulsive players or rich guys with plenty of money to spend? No one really knows.


Probably the same nimrods who are ordering Viagra from some drug store they were introduced to via a random spam email. Or else sending money to somebody in Nigeria, to receive cash from a rich relative.

There's one born every minute ...

Reply Parent Score: 5

unclefester Member since:
2007-01-13

The bizarre thing is that most people DO NOT invest money in such games, not even a little. Profit comes from few users that invest a lot, and there is not really anything in the middle. It's either whales or nobody.


This general pattern is the same for most addictive behaviours including gambling, alcohol, drugs and collecting beanie babies. Most people spend very little money and a few spend a great deal.

Edited 2014-02-02 23:56 UTC

Reply Parent Score: 5