In Part 1 of Social Ties we looked at the size and scope of the social game market and talked to social game developers to gauge their thoughts on how the future of video games would be directed and influenced by the social gaming boom. In Part 2 we talk to video game publishers about their future plans in the social gaming market and look at the rise of dedicated social gaming platforms.
While social game developers remain adamant that social gaming will have a positive influence on interactive entertainment, the extent of this influence and its effect on the way video games are made and played in the future may be a question that only game publishers can answer. Some publishers have already taken steps in this new direction; others are holding back, at least for now. Whatever happens, one thing is certain: the game industry, led by a small number of influential publishers, is prone to trends, and where one goes, others are sure to follow.
Earlier this year Sid Meier’s Civilization developer Firaxis announced it was in the process of developing a Facebook version of its popular franchise to introduce casual gamers to the world of Civilization. While the game won't be available until next year, a personal message from Firaxis founder Sid Meier on the Civilization Network Facebook page tells users of an upcoming closed beta and hints at the studio's reason for its new venture:
"Ever since we finished Civilization Revolution last year, I've been looking at ways of expanding the Civ gameplay experience to include solo, competitive, and cooperative play to take advantage of the uniqueness of social networks."
Sid's not alone in that sentiment. Last month, Capcom president Haruhiro Tsujimoto told Bloomberg in Tokyo that the publisher has plans to release its first social gaming title on Facebook as early as this year.
"Gaming on social networks is poised to impact the traditional video game industry and is a presence that cannot be ignored," Tsujimoto says. "We have to make our move."
The publishers
Earlier this year Sony made its Facebook debut with turn-based strategy title PoxNora. The game wasn't exactly new--PoxNora had its own site, where it had mustered up some 2.5 million registered users since Sony acquired it in early 2009. But the publisher saw an opportunity to increase the game’s user base by tapping into the social market and identifying its gameplay as something social gaming audiences would respond well to. Unfortunately for Sony, PoxNora failed to catch on, going from roughly 142,000 monthly active users at the start of May to 52,000 just eight days later.
Determined to break into the market, Sony tried again with the launch of The Agency: Covert Ops, a story-driven role-playing game modelled on its upcoming espionage-themed massively multiplayer online game The Agency. The game turned critics' heads for its polished design elements and intricate gameplay, sitting well above Facebook's other social titles in standard. However, just like PoxNora, it failed to grab social gamers' attention, hinting that social gamers may be frightened by the idea of a well-designed, immersive gameplay experience.
If social gamers really do feel this way, then publishers like EA and Sega are probably making a big mistake. EA moved in to acquire social game developer Playfish in November 2009, for US$275 million. EA spokesperson Tiffany Steckler says that while packaged goods account for the majority of the video game industry at present, the shift to digital distribution and subscription-based models means publishers will need to step up and make changes to the way they do business.
"Social gaming is growing very fast, and companies that define and lead in this space will be determined now," Steckler says. "I think the companies who will succeed will have a combination of high-quality games, strong IP, and cross-platform offerings. Today, the social gaming sector is a little like mobile gaming was a few years ago--many games, coming from developers of all sizes, with varying degrees of audience reach and commercial success. I see social gaming evolving in a similar way."
Steckler says EA is convinced that social gaming is here to stay.
"The number of Web users continues to grow, game offerings are getting better, and the consumer base in social games is growing. This represents a large new mainstream audience for the game industry. As a division of EA Interactive, Playfish is responsible for defining our social gaming plans working across the EA Labels to define what games will bring the most success."
Sega is being a little more vague with its plans regarding social gaming. After confirming the layoffs of more than 70 employees in April this year, Sega West president and CEO Mike Hayes told GameSpot the publisher would be setting up a new digital division in San Francisco to branch out and "reflect the changing face of the global video games market." It was announced that the new division would be working on developing titles for systems like the iPhone and iPad, with the potential to look into social media networks.
Still unsure of what to call the new division, Sega now says part of its purpose will be to gear certain operations towards emerging platforms.
"It is about creating new products for new platforms, but it is also about evolving the entire Sega presence by learning from and collaborating with these new frontiers," says Sega's director of new media and online business, Brandon Laurino. "In many ways, Sega already has and will continue to have a strong presence on these frontiers, whether it's console and PC downloadable games, mobile games, Web-based games, MMO experiences, or something new."
Laurino recognises that social games are a strong channel for growing the global gaming audience. He believes there is no doubt that social gaming is already influencing the way video games are made.
"I think games like World of Warcraft and Phantasy Star Universe are inherently social in a way, and this will continue to expand, particularly with things like Blizzard announcing the integration of Battle.net with Facebook. The kind of engagement and success that games like FarmVille are having is undeniable. There are approaches to producing and marketing products that are new in the video games industry, and that is exciting."
Laurino sees the video game industry heading towards "omni-platform" experiences, constantly evolving and branching out into new forms.
"Social games are part of the way forward. There is no single or simple answer. There are always many new platforms, opportunities, and business models, and many are complex and nuanced. You just have to be flexible and adapt."
So if EA, Sony, Sega, and Capcom all agree that investing time and energy into social gaming is a worthwhile move, does this mean other publishers will soon follow suit? According to Nintendo president Satoru Iwata, the answer is no. Last month, Iwata told analysts that he was neither threatened nor awed by the rise of social gaming, despite the clear overlap in audience. He said he did not believe that hardware dedicated to gaming will become obsolete in the future; if this were to happen, Nintendo would no doubt run into trouble (an unthinkable thought at this stage, given its dominance in global markets). On the topic of social games, Iwata was clear (as reported by Gamasutra): "I have never thought that we will need to launch social games in order to avoid our offers from becoming obsolete."
Although unwilling to discuss its future plans in regards to social gaming, Nintendo did give GameSpot this reply:
"The Wii in particular has done more to promote social interaction than any other game system, and Nintendo is always looking at ways to bring people together. Social media networks are a very interesting phenomenon and an exciting space. With Nintendo DSi, Nintendo partnered with Facebook to allow an 'Upload to Facebook' button on users' consoles. Partnerships such as this are exciting, but in terms of further developments with Nintendo and social media networks, we have nothing to announce at this stage."
Iwata could be right. Maybe social games don't have to start bunking with video games, at least not just yet. If the recent conflict between Facebook and social game developer Zynga has taught us anything, it's that another solution to the social gaming problem exists. Click on the Next Page link to see the rest of the feature!
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