{"id":3762,"date":"2009-11-14T12:23:07","date_gmt":"2009-11-14T20:23:07","guid":{"rendered":"http:\/\/www.horace.org\/blog\/?p=3762"},"modified":"2009-11-14T12:23:07","modified_gmt":"2009-11-14T20:23:07","slug":"video-games-move-online","status":"publish","type":"post","link":"https:\/\/www.horace.org\/blog\/2009\/11\/14\/video-games-move-online\/","title":{"rendered":"Video games move online"},"content":{"rendered":"

\nMaybe I am no longer young, I don’t get the fun of playing online games. I think playing games in general is just a waste of time. I can’t believe how much time I had wasted playing games when I was young. If I can redeploy all those time, I could have earn a Ph.D degree.\n<\/p><\/blockquote>\n

<\/p>\n

Nov 5th 2009, The Economist
\nThe internet swallows another media business, but spits out some hope<\/p>\n

IN THE eyes of media executives, the internet is a malevolent vacuum-cleaner, sucking in one business after another. Music, software and videos are all increasingly obtained online\u2014often free of charge. Now it is the turn of video games. A combination of new technology and compelling economics means that many, if not most, of them will be played online soon.<\/p>\n

Online gaming is not new. Since the early days of the internet, netizens have indulged in \u201cmassively multiplayer role-playing online games\u201d, a genre that, now complete with fancy graphics, is still very popular, particularly in Asia. Some console games can be played online. \u201cEpisodic\u201d gaming, in which new add-ons for console games can be downloaded for a fee, is gaining ground. And there are many \u201ccasual\u201d online games, often web-based versions of board and card games. Yet in 2009, all these online offerings are expected to account for just $9.4 billion of the $55 billion market for video games, according to PricewaterhouseCoopers, a consultancy.<\/p>\n

There are several reasons to think, however, that video games have begun the transition from an industry primarily based on consoles and shrink-wrapped software to one in which online services dominate. Conventional gaming has not proved as resistant to the recession as many had expected. In America, the industry\u2019s biggest market, sales of games were down 12% in the first nine months of the year compared with the same period in 2008, according to NPD Group, a market-research firm. Nintendo recently admitted that sales of its Wii console, long the market leader, had stalled.<\/p>\n

Meanwhile alternatives are emerging quickly. Many personal computers are powerful enough to run fast-moving, graphics-heavy games just as well as consoles. As a result, firms are offering online games that can be played either through \u201cclient\u201d software, which users download, or via a web browser. Gameforge, one of the biggest and fastest growing online-gaming firms, offers 15 games and has more than 85m registered players. OnLive and Otoy, for their part, plan to let users play console games without consoles, by streaming them over the internet.<\/p>\n

Then there is mobile gaming. Handsets have long come with rudimentary games installed, but smart-phones allow users to download new games or play online via a wireless internet connection. Apple\u2019s App Store, for instance, is full of games.<\/p>\n

These trends are dwarfed, however, by the explosion of \u201csocial\u201d games, which have become all the rage on social networks such as Facebook. These are more about interaction than action: players either join their friends for an online game of poker or Scrabble, or to create and show off virtual pets, farms and mob families. Zynga, the market leader, which had 22m users in January, now has more than 170m.<\/p>\n

As gaming moves online, the economics of the industry are changing. Conventional games take years to develop and cost millions to market, and rely on big sales in their first few weeks of release to recoup the investment, making the launch of a new game a gamble akin to a Hollywood studio\u2019s decision to produce a big-budget film. As a result, like Hollywood, big gamemakers focus on successful franchises with fancy effects and plenty of action\u2014and have moved online only hesitantly.<\/p>\n

Online games, in particular the social kind, are hard for firms steeped in this model to make, argues Kristian Segerstrale, the boss of Playfish, the number two in social gaming. Developing a new game takes only a few months and costs a few hundred thousand dollars. It can still be improved after its launch. Virtual distribution is far cheaper, and marketing tends to be too, since games often spread \u201cvirally\u201d among friends on social networks.<\/p>\n

Steve Perlman, OnLive\u2019s boss, points out that online games have benefits for both users and publishers. Users can take advantage of evolutionary improvements in games, rather than having to go out and buy new ones. And publishers no longer have to worry about piracy, as their games live in the cloud rather than on a disc that can be copied.<\/p>\n

The most important change will be in the way publishers earn money. Although some are charging subscription fees to players of online games or selling advertising, many of them make most of their money by managing an online economy, complete with virtual goods and a digital currency. Playing is free, but users can get ahead by buying extra bits and bobs.<\/p>\n

The beauty of the model is that it allows for \u201cprice discrimination\u201d, says Atul Bagga of ThinkEquity, an investment bank. Miserly players can still participate in the game and pay indirectly by being exposed to advertising. Those with more to spend can buy virtual goods. Although only a tenth of social gamers actually do so, he says, such schemes earn game operators $28m a month. By 2012, he forecasts, annual revenues will have grown to $1.2 billion.<\/p>\n

Yet the \u201cfree-to-play\u201d model has its problems. Online players are a fickle bunch who move to new games quickly. More fundamentally, collecting small sums from millions of users is expensive, says Simon Levene of Accel Partners, a venture-capital firm that has investments in both Gameforge and Playfish. Mobile operators, for instance, take a big cut when payments are made using \u201cpremium\u201d text messages.<\/p>\n

Facebook, Apple and a raft of start-ups are all trying to develop a low-cost payment system, which could be a lucrative undertaking in itself. If they succeed, they may bring some relief to media firms that have seen much of their business disappear into the vacuum: many in the music and newspaper businesses, for example, are pinning their hopes on the idea that consumers can be persuaded to pay small amounts for digital wares. <\/p>\n","protected":false},"excerpt":{"rendered":"

Maybe I am no longer young, I don’t get the fun of playing online games. I think playing games in general is just a waste of time. I can’t believe how much time I had wasted playing games when I was young. If I can redeploy all those time, I could have earn a Ph.D … Continue reading Video games move online<\/span> →<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"lc_iscn_info":[],"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[15],"tags":[41,523],"class_list":["post-3762","post","type-post","status-publish","format-standard","hentry","category-_newsclips","tag-economist","tag-games"],"yoast_head":"\nVideo games move online - \u54f2\u5b50\u6232 Philosophist\u2019s Camp<\/title>\n<meta name=\"description\" content=\"Maybe I am no longer young, I don't get the fun of playing online games. 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I guess we should let the kids play more of The Sims or Simcity than those first person shooter. Good Games? May 28th 2009 - Economist VIDEO games get a bad press. Many are unquestionably violent and, as has been the\u2026","rel":"","context":"In "News Clips"","block_context":{"text":"News Clips","link":"https:\/\/www.horace.org\/blog\/category\/_reference\/_newsclips\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3444,"url":"https:\/\/www.horace.org\/blog\/2009\/09\/16\/games-lessons\/","url_meta":{"origin":3762,"position":1},"title":"Games lessons","author":"hevangel","date":"September 16, 2009","format":false,"excerpt":"Some teachers are boring, some teachers are not. Some games are boring and some are not. Replacing classroom with games alone won't solve the problem how to motivate students to learn in the first place. Force to sit quietly inside a classroom is bad, force to play a boring game\u2026","rel":"","context":"In "News Clips"","block_context":{"text":"News Clips","link":"https:\/\/www.horace.org\/blog\/category\/_reference\/_newsclips\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4851,"url":"https:\/\/www.horace.org\/blog\/2010\/09\/12\/wii-2\/","url_meta":{"origin":3762,"position":2},"title":"Wii","author":"hevangel","date":"September 12, 2010","format":false,"excerpt":"I finally got a Wii, 3 years later to the party. I didn't buy it, I inherited it from my cousin who moved back to Hong Kong. Although the console is free, but it does not come with any controllers. So I have to spent some money to buy a\u2026","rel":"","context":"In "Daily Scribble"","block_context":{"text":"Daily Scribble","link":"https:\/\/www.horace.org\/blog\/category\/_scribble\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.horace.org\/blog\/wp-content\/uploads\/2010\/09\/CAT-WII-Consoles.jpg?fit=1026%2C801&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.horace.org\/blog\/wp-content\/uploads\/2010\/09\/CAT-WII-Consoles.jpg?fit=1026%2C801&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.horace.org\/blog\/wp-content\/uploads\/2010\/09\/CAT-WII-Consoles.jpg?fit=1026%2C801&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.horace.org\/blog\/wp-content\/uploads\/2010\/09\/CAT-WII-Consoles.jpg?fit=1026%2C801&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":4738,"url":"https:\/\/www.horace.org\/blog\/2010\/08\/01\/cricket-and-baseball-common-ground\/","url_meta":{"origin":3762,"position":3},"title":"Cricket and baseball Common ground","author":"hevangel","date":"August 1, 2010","format":false,"excerpt":"Cricket and baseball has at least one thing in common, both of them are a very boring game to watch. But baseball has one advantage over cricket, they sell beer in the stadium. Jul 22nd 2010, Economist Comparing cricket with baseball is a good way to start a spat BRITAIN\u2026","rel":"","context":"In "News Clips"","block_context":{"text":"News Clips","link":"https:\/\/www.horace.org\/blog\/category\/_reference\/_newsclips\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1451,"url":"https:\/\/www.horace.org\/blog\/2007\/08\/19\/racing-game\/","url_meta":{"origin":3762,"position":4},"title":"Racing game","author":"hevangel","date":"August 19, 2007","format":false,"excerpt":"I love playing racing games. I spent lot of time and money in Arcade when I was young. I specially fond of driving game by Sega, starting from Virtual Race, to Daytona, to Super GT, to Daytona 2. Although I am not exceptionally good, I can still manage to complete\u2026","rel":"","context":"In "Daily Scribble"","block_context":{"text":"Daily Scribble","link":"https:\/\/www.horace.org\/blog\/category\/_scribble\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4891,"url":"https:\/\/www.horace.org\/blog\/2010\/10\/16\/the-end-of-gold-farming\/","url_meta":{"origin":3762,"position":5},"title":"The End of Gold Farming?","author":"hevangel","date":"October 16, 2010","format":false,"excerpt":"Just like any low\/no-skill labor work should be replaced by automation, gold framing in online games should also be replaced by AI. As long as the online game provides a powerful scripting API, smart auto-play program can make gold farming obsolete over night. By Mark Anderson, October 2010, IEEE Spectrum\u2026","rel":"","context":"In "News Clips"","block_context":{"text":"News Clips","link":"https:\/\/www.horace.org\/blog\/category\/_reference\/_newsclips\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"jetpack_likes_enabled":false,"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.horace.org\/blog\/wp-json\/wp\/v2\/posts\/3762","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.horace.org\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.horace.org\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.horace.org\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.horace.org\/blog\/wp-json\/wp\/v2\/comments?post=3762"}],"version-history":[{"count":1,"href":"https:\/\/www.horace.org\/blog\/wp-json\/wp\/v2\/posts\/3762\/revisions"}],"predecessor-version":[{"id":3763,"href":"https:\/\/www.horace.org\/blog\/wp-json\/wp\/v2\/posts\/3762\/revisions\/3763"}],"wp:attachment":[{"href":"https:\/\/www.horace.org\/blog\/wp-json\/wp\/v2\/media?parent=3762"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.horace.org\/blog\/wp-json\/wp\/v2\/categories?post=3762"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.horace.org\/blog\/wp-json\/wp\/v2\/tags?post=3762"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}