3. If there's one thing wrong with the gaming industry you'd want to change in the new millennium, what would it be and why?

Doug: The cost of developing games is increasing at an alarming pace whereas the average price at retail is coming down. Games are becoming a commodity, and we are in danger of lurching toward a situation in which even more publishers simply cannot make a profit. Technological advances help, but they rarely make big savings in development.

At Red Storm, we are very aware of this, and while the temptation is ever present to publish as many games as possible, we are dedicated to concentrating on quality rather than quantity. The downside is that we must achieve a greater hit ratio than many of our competitors to survive. So long as the consumer understands that it is not possible to have the tremendous choice of games with Hollywood quality graphics and amazing framerates on the marketplace as there is today and that prices will have to rise then that is fine. But I wonder if everyone really does understand this has to happen?

One obvious conclusion for our business is continued consolidation and a probable monopoly in due course. There is plenty of historical precedent in heavy industry and the service sector.

4. There is a lot of talk about interactive entertainment becoming the dominant form of entertainment in the 21st century. Although it's a broad question, dream a little and tell us how far your vision stretches for what interactive entertainment can eventually represent and become?

Doug: I'm not sure that I agree with this statement for the reasons I discussed earlier about passive versus interactive. Playing a game requires more engagement and competitiveness than most people want. To broaden our reach into the mass market, we may have to make games simpler and less focused on winning. Maybe the most popular form will be interactive stories where players accept less control in exchange for stronger characters and narratives. We are not going either route yet at Red Storm.

Next: Doug Littlejohns (cont.)