Category Archives: Industry Analysis

Project Management And Industry Analysis Is Hard

After a hard day of pontificating on game industry crunch, Michael Pachter kicked this puppy.

Michael Pachter, NeoGAF’s greatest game industry analyst, has this to say about crunch (prompted by the Team Bondi and Rockstar complaints):

If you’re getting into the industry, you are going to work plenty of hours. I hear from lots of people on Twitter about these Team Bondi guys in Australia, [hearing complaints about how] they’re young and right out of school, well, don’t pick that as a profession then. If your complaint is you worked overtime and didn’t get paid for it, find another profession.

I just don’t have a whole lot of sympathy for people who say ‘I worked for such-and-such, and I didn’t get paid, and that’s not fair’. If you want to be an hourly employee, go build automobiles, and what will happen is they’ll close down your plant some day and you’ll be out of work.

My first reaction, like anyone who works in the video game industry, was “Oh. Michael Pachter. He’s either (a) wrong, (b) stating the incredibly obvious, or (c) both.”  But the problem here is that people actually pay attention to this person. Thus, they may actually believe him and think continuous crunch is normal and expected. So, in the ever-continuing compulsion of correcting people who are wrong on the Internet, I feel it necessary to actually correct some of the ridiculously glaring falsehoods in Pachter’s, er, ah, um, analysis.

So. Point by point:

  • The [Team Bondi staff] were asked to work crazy hours, I don’t know anybody in game development who calls it a 9-5 job. So that [complaint] doesn’t really resonate with me.

    That’s nice. But whether it “resonates” with you or not, expecting people to work 60 hour weeks on a regular basis is not normal. The 40 hour week exists for a reason. Really! This is not new!  And people have actually done studies about its effectiveness in the game industry! The longer you encourage your team to focus on the project to the exclusion of their lives, the worse work they will do. This has been proven, again, since the era of industrialization. This is not happy froofy hippie stuff. This is basic project management. The fact that many game companies utterly fail at basic project management does not make any less a tenet of basic project management.

  • I think [the point] that everyone is missing is that, if a game is good – and LA Noire was good – there will be a profit pool, and there will be bonuses.

    Really? Because that’s certainly news to the developers of the best-selling game ever made. But even when your publisher doesn’t make “screwing your developers” part of their business plan, in every large project, the top tier of developers – the leads, perhaps the superstar engine developers and the media-suckup designers and producers that are on Michael Pachter’s speed-dial – may have bonus packages as part of their compensation contract. Do you seriously believe that the line programmers and artists can count on profit sharing and bonuses, as opposed to, oh, I don’t know, being laid off three days after the game ships? And do you think they don’t crunch? In fact do you think that the media-whore producers on your speed-dial (who, by the way, are largely responsible for the atrocity of project management that results in crunch in the first place) do crunch?

  • Apparently there are people who don’t like McNamara, apparently there are people who think he is a tough boss. Making a game is not easy, it is a complicated process, managing the process is really hard. The LA Noire project was disrupted, and there were several false promises of finishing the game, and poor Brendan McNamara – who is probably going to be ‘rich Brendan McNamara’ – was put in the position to get his team to crunch and get it done more than once.

    OK, I’m really trying here to come up with something besides “Wow, Pachter, you’re really kind of a jerk”. And failing. I don’t know. There’s got to be something. Are we supposed to be feeling sympathy for the producer who put his team through hell so he personally could get rich while the people he was responsible for got completely screwed? Because I’m not really feeling it. Really, all I’m feeling is kind of the “Wow, Pachter, you’re really kind of a jerk” thing.

  • Sweatshops should have unions but games studios, which tend to pay people a lot of money, shouldn’t.

    Yes. Because other creative industries never do that sort of thing. Of course, if you’re Michael Pachter, you probably sympathize a lot more with, say, John Ricitello and Bobby Kotick than Joe down in QA. Even if your entire work as an analyst comes largely from Joe in QA’s posts on NeoGAF.

But really, I’m being too hard on poor Michael Pachter. First, because the man is making a living off of being an industry joke, and to be fair, he is doing a damned good job of his vocation. And second, because why should the game industry be any different from everywhere else?

That Is Quite A Lot Of Jedi

My latest article for MMORPG.com speculates on some disturbing numbers.

Noted Industry Analyst Exhorts Small People To Be Quiet, Comments That His Sports Car Requires Work

I don’t think (online multiplayer games) get impacted at all (by the current recession), because people who play them are addicts … Losing their jobs makes them more likely to play because they have more time to play.

– Michael Pachter, gaming industry analyst

(via Massively) (explanation of post title for you newer addicts)

Let's Run The Numbers

The top 20 PC games of 2008, by sales figures (MMOs highlighted):

1. World of Warcraft: Wrath of the Lich King Expansion Pack
2. Spore
3. World of Warcraft: Battle Chest
4. Age of Conan: Hyborian Adventures
5. Warhammer Online: Age Of Reckoning
6. Call Of Duty 4: Modern Warfare
7. The Sims 2 Double Deluxe
8. World Of Warcraft: Wrath of the Lich King Exp Pk Collector’s Ed
9. Fallout 3
10. World Of Warcraft: Burning Crusade Expansion Pack
11. Call Of Duty: World At War
12. The Sims 2 FreeTime Expansion Pack
13. World Of Warcraft
14. Sins Of A Solar Empire
15. Warcraft III Battle Chest
16. The Sims 2 Apartment Life Expansion Pack
17. Crysis
18. Left 4 Dead
19. Diablo Battle Chest
20. The Orange Box

I’m thinking World of Warcraft needs about 5 or 6 more SKUs.

This Just In: The Sky Is Not Falling

Welcome to January, the season to navelgaze. I’ve done my share:

The video game industry is not going to be immune from the Great Recession. The MMO industry is especially not going to be immune, as the only proven path to success for MMOs is in huge budget gambles that have missed more often than not.

But looking at the future is risky, since it hasn’t, you know, happened yet. So backyard pundits (you know, like backyard wrestling, but without the dignity) look back in angst-er at the year gone by. Here’s a typical sample.

If an apologist fan (or Bill Roper) of any of these games tries to blame the previous as to why these games never became a success then they clearly have a few screws loose. No, these games failed because their developers let it happen.

(You know, I can’t begin to describe the number of design meetings where people just keep saying “you know, we should just let this game fail. C’mon! It’ll be fun!”  In retrospect? We should have done that less.)

 

First, a tangent (well, another one, anyway): I love Hellgate: London. I love any game that has enough balls to put a colon in their name, but especially Hellgate: London, which never was really an MMO but pretended to be long enough to try to get a subscription fee that few actually paid. But why I love HG:L the most is the sheer amount of angry internet angst it generates.

Let’s not beat around the bush – HG:L was a bad game. The content was poorly written, the skill system was overcomplicated to the point of opacity, and as near as I could determine, the game consisted mostly of ruins, demons that jumped out at you, and the color brown. This would be why I did not buy it. I did not remain on message boards for six months or a year complaining about how Bill Roper personally raped my childhood or making oh-so-witty puns on the game’s name that people who still laugh at “Micro$oft” find clever. Why should I? It wasn’t a good game. There are other games which were good. I played those.

See – there *were* good games that came out last year. You may have heard of this “lich king” thing, for example. Sure, Blizzard could have run the Zone Creation Wizard 16 times, crapped out enough foozles to take you to the next Woozle Fairy Instance Run, and made 83 hojillion dollars. Yet, there were actually some zones in the expansion which are… really good. Sure, if you’re tired of killing orcs with a sword, it probably doesn’t do much for you – but for people complaining about how the world doesn’t change when you do anything, well, they’re working on it.

A few people, I’m given to understand, picked up the expansion. There were a few other expansions as well, if you like the whole kill orcs with a sword thing but still think Bill Roper raped your childhood back when he was doing voiceover work at Blizzard.

Want PvP? Well, there was this one game that came out last year and is still poking along, and there’s this other game that has this somewhat interested following coming out soon, and oh yeah, there’s this other game which has a new expansion and store presence coming up which is more than a little popular. I’m told you can even kill other players in that lich king thingamabob a few of those kids today are playing!

It’s easy to point at failures and laugh. I do it with great regularity, because I too enjoy easy things. And it’s true that new MMO development is going to slow this year.  It SHOULD. Huge megaprojects like Tabula Rasa that don’t have a clear goal and defined market will fail – and they SHOULD fail. Games like Age of Conan that release half-baked will fail – and they SHOULD fail. This is market evolution in action. If you’re going to compete in the marketplace, it’s a bit more mature than when you had two-letter-games and nothing else.

But the market isn’t in tens of thousands, but tens of millions. There’s a bit of room to grow and prosper. Just not, you know, if Bill Roper raped your childhood.

It's Beginning… To Look A Lot Like… Pontification

It’s time for PREDICTIONS, that being the job of every pundit this time of year. But first, let’s see how I did last year so you can judge whether or not you should bother to read the rest of this post!

This is going to be a slow year for MMOs… …In the next few years following, we’ll see the results of everyone trying to go all aikido and step where WoW isn’t. But for this next year or so, you’re going to see the effect of an entire MMO industry three to four years ago going “Holy crap. They sold how many boxes? And our entire development team is in a WoW guild? Hmm.”

I’m going to call this one a HIT, since there wasn’t any good positive news out of the MMO industry this year except things that were kind of pre-loaded already from years past. (Bioware’s SW:TOR, Sony’s Freerealms) Plus, as we’re going to see, I really, really, really need to pad that hit percentage.

Specifically, PotBS will be a niche title a la Eve which does well long term but nothing spectacular out of the gate, Warhammer will grab over a million subscribers (counting both the US and European markets) which will make it the second biggest MMO, disappointing everyone who wanted it to be Teh Giant Slayer. Age of Conan will do somewhere in the 200K range, much less if there are launch issues (it remains to be seen if Funcom’s learned from Anarchy Online). No one will care about the much-vaunted nudity. It didn’t save Shadowbane, either.

Pirates of the Burning Sea – jury is still out. It wasn’t a smash hit, but after an initial server merge it seems to be keeping on keeping on, too, out of everyone’s radar and on SOE’s Station Pass life support system.

Age of Conan – well, I hedged and said that if there were launch issues, it would tank. There were some pretty significant ones, and all avoidable ones at that – fundamentally broken design flaws (equipment had apparently no use whatsoever, for example) compounded by rapid twice-a-week patching in response that finally broke Funcom’s version control safeguards (Necromancers had half their talent tree patched in one week accidentally, which made for some interesting ‘found gameplay’). And by all reports, it has tanked pretty seriously.

As has Warhammer, my biggest miss in this category – I predicted it to be over a million by this time. It’s hard to tell what their subscriber numbers are due to EA’s habit of only announcing “registered players“, but it’s safe to say if Warhammer had ever broken 1 million subscribers (or even registered users) it would be difficult to dodge the press releases. Failing that, the most visible metric would be “voluntary character transfers” in the wake of the hurricane called “Wrath of the Lich King” effectively closing half their servers. So we’re going to go ahead and call this a MISS. Damn it, we needed some hits this year from companies not named Blizzard. And we didn’t get any.

Speaking of Blizzard: Starcraft 2 will slip to 2009, sorry. However, fear not – the PC market will still be in a Blizzard hammerlock, as the next World of Warcraft expansion pack will ship just in time for the Christmas rush, dwarfing any other game’s launch that year. Note: I did not say “any other MMO game”. I meant “ANY OTHER GAME”.

Yeah. Never underestimate the ability of Blizzard to make the PC market their bitch. Last month here was NPD’s top 10 11 sales chart:

1. World Of Warcraft: Wrath of the Lich King
2. World Of Warcraft: Wrath of the Lich King Collector’s Ed.
3. Call Of Duty: World At War
4. Spore / EA Maxis
5. Fallout 3 / Bethesda
6. World Of Warcraft: Battle Chest
7. The Sims 2 Deluxe
8. Left 4 Dead
9. The Sims 2 Apartment Life Exp. Pack
10. Command & Conquer: Red Alert 3
11. World Of Warcraft

I made this top 11 just to show that World of Warcraft – the original, non-expanded World of Warcraft released years ago – is still just shy of the top 10 in TWO THOUSAND FRAKKIN EIGHT. And the top 2? Yeah, that’d be the same game. Warhammer? Age of Conan? Guild Wars? Hello Kitty Online? Nowhere to be found in the top 20. Welcome to the Blizzard Desert. Not only a HIT, but a body blow to the solar plexus. The only MMO title in the top 20 was Everquest 2′s just-released and generally well-recieved expansion at #14, just below Nancy Drew: The Haunting of Castle Malloy. Yes, below. And the linked-to PC World recap remarked on that with:

“They still make Everquest games?” What I said, too.

Hardy-freakin-har.

EA Austin — sorry, Bioware Austin will finally announce that yes, they’re working on Knights of the Old Republic Online. Everyone will yawn since that was leaked all over the place LAST year. Or maybe those leaks were MISDIRECTION! And they’re really working on Peggle Online. That Gordon Walton fellow is crafty.

OK, so they dropped the Knights part, but still, they had to announce sometime, so this is a HIT albeit somewhat of a gimme.

Free MMOs will continue to pull in more free users, more paid users, and more money than the vast majority of “old school” MMOs, as Raph Koster is vindicated in spades, over and over, when people start to actually notice that more people play Maple Story than World of Warcraft.

I’m going to call this a MISS for two reasons – first off, no one has really noticed yet that more people play Maple Story than World of Warcraft. Second, the reason for that is that World of Warcraft makes about a skillion more dollars than Maple Story, thanks to 80% or 85% of Maple Story players not actually paying any money. I still think free-to-play is a pretty significant market (and John Riccitiello apparently agrees with me) but… the jury’s still out on the big iron I think. Of course, it may well be that the only company that can still make subscription big-budget MMOs is Blizzard. Sucks for all of us not working there!

Second Life will no longer be all over the news as even Reuters figures out that a lot more people talk about Second Life than actually participate in it. They will continue to have server and client issues, and near the end of the year the first Second Life clones that were conceived back when Second Life was the new hotness hit the market. I don’t know what they are off the top of my head, and you won’t either, because as Linden already knows and these new kids will learn, enabling a game wholly based on user generated content in a 3D space is REALLY REALLY REALLY freakin’ hard.

Also a MISS. The media’s love affair with Second Life may have cooled, but some of the ardor remains. And more importantly, no Second Life clones have reached the market yet – the closest are efforts to bring an open source version of SL to the masses (driven largely by Linden Lab’s community mismanagement) but those are still alpha-quality at this point.

2008 will be to Facebook as 2007 was to Myspace – no one will care any more, some hot new thing will come along, and everyone currently working on Facebook-centric startups will feel awfully silly (but still make hojillions of dollars).

Bzzzt, MISS. Facebook still is where everyone knows your name (and irritatingly, your birthday. Thanks, Facebook, for reminding everyone I know that I’m old.)

The election matchup will be Barack Obama vs. Mitt Romney, and Obama will win in a landslide. I’m willing to fudge on the Republican side given Iowa’s results but it’ll still be a Democrat landslide. Ron Paul will run from the right as a Libertarian candidate (I know, he said he wouldn’t, HE FIBBED DEAL WITH IT) and break 5%, which dwarfs the LP’s previous best of 2% but is still a statistical blip.

Mitt Romney? MITT ROMNEY? I don’t care if Obama DID win in a landslide, MITT ROMNEY? Dear god, 2007 Lum, what the hell were you smoking. Oh, and Ron Paul didn’t run as an independent and the Libertarians’ Bobbarr managed to get 0.40% of the vote. MISS.

So, now that we’ve established that I am wildly, wackily unqualified to make any predictions ever again, let’s do it ag’n!

* The video game industry is not going to be immune from the Great Recession. The MMO industry is especially not going to be immune, as the only proven path to success for MMOs is in huge budget gambles that have missed more often than not. There will be a couple of high profile announcements next year, but they are all games that managed to secure funding before the global economy fell over in a drunken stupor. There will be major, major consolidations between companies (“EA buys Ubisoft! No, wait, Ubisoft buys EA!”) which will result in consequent massive layoffs – layoffs which have dwarfed any to date. A not insignificant number of people, burned by the consequently flooded job market, will leave the game industry entirely for safer climes, and the usual incestuous job hopping will come to a screeching halt as everyone lucky enough to have a paying gig holds on tight to ride out the storm. Austin, Vancouver, and Boston will depopulate (not entirely – but significantly, as has already happened in Austin) as game development hubs as consolidation moves everyone towards California. The impact of this hammer blow will be felt over the next 3-4 years as new development slows to a crawl and the large publishers focus their efforts on safe, secure investments. Hope you like fantasy RPGs and Madden games.

* Those unemployed game developers have to do something – expect something of a boom in iPhone and web titles, both platforms friendly to small teams (in the iPhone’s case, sometimes talented one-man teams). Some really surprising and technologically sophisticated titles will be released there, and that will be where all the technical and design innovation is centered around. There’s movement by hobbyist/unemployed developers in semi-open platforms such as SL’s Opengrid and Metaplace as well.

* World of Warcraft will not deliver an expansion next year, focusing on live patching (effectively, the raid-level instances left out of WotLK’s release) as the company focuses on delivering its first Starcraft title and moving Diablo 3 into beta. Blizzcon will see an announcement of a new MMO that isn’t World of Starcraft, World of Diablo or World of World of Warcraft and everyone will glom to it as The Savior Of The PC Gaming Industry (which by this time will be pretty painfully obviously in desperate need of saving). Wrath of the Lich King will still be in the top 10 PC titles at the end of the year.

* Aion will do well in Korea. It won’t do well enough (like Tabula Rasa, Aion has been a high-profile and high-budget project in development for far too long). NCsoft will undergo serious retrenchment (related to the general global downturn) in Korea, although not in the West, because, well, they kind of already did that and there’s not much left to cut (though currently unannounced projects may disappear from lack of funding). Given the cutbacks from Webzen and Nexon earlier this year, this will mark the high water market of Korea’s investment in the US market, to be replaced as 2010 begins with Chinese investment, as the Chinese MMO market will continue to boom, unlike the West or Korea.

And… that’s it. 2009 is going to be a grim year. Sorry. On the up side, I think Battlestar Galactica’s final episodes will be pretty cool!