Next-gen business models are "embarrassing", says Brennan

[wraggster]

via gibiz (http://www.gamesindustry.biz/content_page.php?aid=24964)

The spiralling costs of next-gen games development are embarrassing, unworkable and an ego trip for publishers, according to Blast Entertainment CEO Sean Brennan.

Speaking at last week's Northern Exposure conference, Brennan slammed publishers for embarking on multi-million dollar development projects that he believes are financially unworkable and nothing more than an ego trip in the face of competitors.

"What a joke. What embarrassment. There's no way on a USD 20 million development project that you can break even on a game – not now in the cycle," said Brennan.

"Maybe in two years time when the installed base is high enough, but it's an embarrassment at best. But all the publishers are doing it because it's a copycat mentality."

"Some of the costs are absolutely outrageous. I did a project for THQ about 18 months ago and it's like a big ego trip for publishers," he said.

Brennan noted that US publishers are keeping development internal, so company's outside North America are unlikely to get a slice of the pie.

"With these big budgets, all these big American publishers are looking internally. Because when you're spending USD 15 or USD 20 million you don't want to trust an external developer with that sort of budget," stated Brennan.

"And they want the developer in America, first and foremost. A lot of the reason behind that is cultural. Since 9/11 American publishers have become a lot more insular. That's going to continue to be a key issue, it's a worrying factor."

Offering advice to the UK development community, Brennan said studios should play to their strengths and understand that UK taste doesn't always work on a global scale.

"US culture and taste works globally. You may not like that, but that's how it works. UK tastes don't always work. The world is dominated by the big US players and there's an inherent danger there for the UK development community," offered Brennan.

"Yes, the market is changing, but the consumer base is changing as well. You've got to look to areas where you've got a critical advantage. The UK development community is the most vibrant and creative development community in the world, in terms of implementing new ideas and having great gameplay."

"What the American's do better is the production values, which they can afford to when they're spending USD 20 million on a game - the games look sumptuous but don't particularly play so well. UK developers need to play to their traditional strengths," he concluded.

[Veskgar]

Well its about time people are coming to this realization. I fear that a large part of the gaming industry has sort of become this giant bubble much like the tech bubble to hit to web in the late 90's. Of course that bubble burst.

I would hate to see the same thing happen to the video game industry but it would force a lot of developers to go back to the drawing board and back to the basics. Which quite frankly would not necessarily be a bad thing.

Less time, money, and energy needs to be spent on copycat theatrics, hollywood voice actors, and licensing.

Good, engaging, and progressive story along with deep character depth and excellent diverse gameplay should be some of the fundamentals focused on most.

Its time we get back to creating GOOD games.

[Basil Zero]

The way things are going , I would not be surprised to see another Atari like industry crash going on.

Of course Nintendo will be the only one left IF that happens.

Devs should work on making classic games, instead of making movie like games or even "milking" series, instead they should make new titles with the same "Spirit" as classics.

Titles in which everyone can be happy of

So far I see Nintendo doing that.

[calagan]

In the case of a crash Sony and MS would be the only ones left, because they have more than enough cash reserve and revenues from their other products.

On the other hand, the Wii being a souped-up GC, cannot technically be considered a next-gen console so it might not survive on the long-term. IMHO, Nintendo should bank on the profit they make with the DS and focus on handhelds, whose games are cheaper to develop.

Smaller games available as download from online stores (PSN, Live Arcade,...) are getting increasingly successful and are cheaper to develop, so that would be another niche market.

[mnky]

The way things are going , I would not be surprised to see another Atari like industry crash going on.

Of course Nintendo will be the only one left IF that happens.

Devs should work on making classic games, instead of making movie like games or even "milking" series, instead they should make new titles with the same "Spirit" as classics.

Titles in which everyone can be happy of

So far I see Nintendo doing that.

what, milking games?

[eatnooM]

what, milking games?

Allow me to explain the concept to you via means of an example.

Final Fantasy 7.

There, I said it :p

[werpu]

In the case of a crash Sony and MS would be the only ones left, because they have more than enough cash reserve and revenues from their other products.

Totally wrong, first of all a console crash like in 1984 simply wont happen. In 1984 the situation was entirely different. The market was flooded with garbage Atari 2600 games. Consoles were not a mass market with most games selling 10.000 - 30.000 if at all. The publishers back then were small companies not being able to sustain a significant market change on itself.
The crash itself was not really a crash, the phenomenon of video games faded away temporarily and most serious gamers moved onto the home computer market, which had better games and other publishers, those who served both markets mostly survived the crash.

So what we have now, billion markets, most companies also have cash reserves. Even if there is a crash, it will look different and wont take the console makers with it, only a handful of smaller publishers playing the high risk game. Even nintendo wont go anywhere, Sony and Microsoft definitely not, but dont underestimate Nintendo, they are a huge company never really having had losses in its 120 years of history, so even Nintendo wont go anywhere...

[Broadus]

Is he saying companies in the US can't make good games? Look at Blizzard Entertainment, it's a US company that does nothing but make best-selling games.