Gametech 2011: State of the games industry

Who was there: Bryan Neider, senior vice president and COO of EA Games; Edward Fong, managing director of Ubisoft Australia and the president of the Interactive Games and Entertainment Association (iGEA); Michael Ephraim, vice president of Sony Computer Entertainment (Europe) and managing director of Sony Computer Entertainment Australia and New Zealand (SCEA); and David McLean, regional director of retail, sales, and marketing for Microsoft Australia.

What they talked about: The panel members reiterated the points made throughout the panels today. Ephraim began by saying that immersive gaming is not something that can be found on all devices and that a demand for core gaming still exists. These are the centre of the gaming industry right now. Big games are the theatrical experience of gaming, and they're here to stay.

Neider made the point that all four companies talked about similar issues, something that he says points to the fact that these issues are being discussed by the whole industry. He then talked about the challenges facing the industry in the future, saying that risk-taking and innovation will drive change only if the industry can bring itself to push the boundaries.

Fong talked about the importance of social media in giving consumers a bigger voice, meaning that publishers need to pay closer attention to what the audience wants, keeping in mind how time-poor and spoilt for choice the audience has become. In regards to Australia, Fong said that retail is a challenge for the local industry. In certain cases, the local industry needs to work together with retailers.

Ephraim agreed with Fong, saying that because devices are getting more complicated, there needs to be a way for consumers to cut through the clutter. Retailers need to be aware of this. Exchange rate and local game prices are also an issue, but this is not something that can be controlled locally, according to Ephraim. Questions of value are a challenge, particularly when looking at digital and convergence of devices. Ephraim then said that retailers need to put more emphasis on understanding the product, both in Australia and overseas.

McLean said that retail has to change across the whole industry, particularly in regards to the current business models, which are becoming outdated due to a rising presence in the online space. He acknowledged that the industry has matured and that more and more people are looking at gaming as a valuable, profitable medium. He then talked about convergence again, saying that consumers increasingly blur the lines between different entertainment experiences with everyone vying for leadership in the space.

Neider talked about the security challenges facing the industry, from transferability in the digital environment to how consumers distribute personal information.

Audience questions then followed the panel discussion, in which the panel members addressed issues surrounding the role that retail plays in the food chain (no one seemed to have the answer to that question), the growth of digital content, and the importance of giving consumers what they want. The conversation was brought back to the issue of retailers not knowing enough about the product and how to better deal with models surrounding game rentals. It was also agreed by the panel that linear, one-dimensional experiences in games are a thing of the past, and both developers and publishers need to take more risks in expanding the range of games on offer.

The panel also addressed the self-publishing business model, agreeing that the barriers of entry for indie and mobile games will continue to get higher as consumers begin to demand better-quality experiences.

Takeaway: It was interesting to see four different publishers agreeing on the challenges facing the industry and coming up with different ideas to solve problems surrounding retail issues and convergence.