Comment: Future of games is online

Jun 25 2009 by Herb Kim, The Journal

SOME of most influential figures from the world’s games industry headed to the GameHorizon Conference in Gateshead earlier this week to discuss the trends, threats and opportunities facing them right now.

So what are the key trends at the moment? And what can we expect to see as we head into the next phase of this fast-changing industry?

Persistent online games: The future of the games industry is very much online. Online gaming has already been hugely popular, with the likes of Call of Duty: Modern Warfare reporting 14 million gamers signed up to its internet version on the Xbox 360.

One of the key things developers are trying to do at the moment is to make what David Jones calls “persistent online games” – games where the game world continues even when you’re not playing.

We’ve already seen a handful of huge successes in this field, such as World of Warcraft. Apart from these role-playing games, though, this type of game is still in its infancy.

Free games: Practically everything seems to be given away for free on the web at the moment, and the games industry is also getting in on the act according to Rick Gibson, one of the biggest brains in the industry.

There’s already been a dramatic growth in games companies that offer fully-featured games for free, with paid-for extensions. Companies make money through subscriptions, microtransactions, in-game adverts and retail.

So far companies doing this have sat within certain niche genres but, Gibson argued, soon many more will be doing it. The upshot for consumers could be a greater variation, with even more realistic and interactive game worlds, complete with advertising and products you can actually buy.

Digital distribution: Digital distribution would mean game developers could sell their products over the internet, retaining a lot more of the profit rather than losing it to publishers and high-street shops. This is easier said than done without the marketing might and experience of a major publisher behind you.

Nevertheless, there is a definite and rapid shift towards moving more and more of the games industry online, distribution included. As this happens, and as developers continue to improve their technology, we’ll see ever more innovative games, but with one or two casualties along the way – with the high street a potential victim.

Herb Kim is CEO of Codeworks, the North East’s centre for digital innovation.