Sunday, March 30, 2008

Special Glass

Actually this entry should be named Special Plastic, because we don’t really use glass in our displays anymore do we? But we do specialize because one size doesn’t fit all (needs.) I have eight screens that I use.

I watch TV on my 32-inch LG LCD.TV.

I watch movies with either my PS3 for HD, or my Xbox360 for regular DVDs, or on my eight-foot projector screen.

I watch YouTube videos, do email and other office things on my 17-inch laptop

I play games on my Skulltrail PC with a Dell 30-inch display.

I read books on my six-inch E-ink Kindle.

I play portable games, and watch an occasional video on my 4.3-inch PSP

I have an iPod that downloads movies and podcasts and occasionally I watch them

And I take videos, and photos with my Nokia 5MP N95, but I don’t play games on it, don’t watch videos on it, and don’t look at TV on it, although it can do all those things.

Kathleen also has a 3.7-inch Creative Zen and she watches videos on it on long flights and the occasional bus ride. She also has a 2.5-inch iPhone and watches music videos on it.

If I get rid of the N95 (which could happen any minute I’m so disgusted with its performance and battery life) and get an iPhone, I might watch videos, but if I got an iPhone I’d have to carry a pocket camera again. I love the iPhone’s big screen but its processor is too underpowered to drive games and its 2 Mpixel camera is too low res for most of my picture taking requirements.

So while I wait for the next generation iPhone or equivalent, something with a big screen, and good image sensor and lens, a workable TV tuner, and enough CPU/GPU power to make game playing fun, I sit in the lotus position and ponder the Zen-like question, if they build it will I use it? The short answer is maybe.

I have been trapped on long bus rides where the light is weak and the noise too annoying to allow for comfortable reading (even with a Kindle because it doesn’t have a backlight.) I’m too weight conscious to carry the PSP and power supply with all the other gear I have, and that’s partially because even though it has a great screen, game play on it, for an old fart like me, isn’t much fun – I never could master a game controller, can’t remember which button does what and by the time I figure it out, zap, I’m dead.

So everything has its compromises, whether it’s screen size, bandwidth, content, interactivity, battery life, GPU power and memory, or price. And we consumers adapt to those tradeoffs and willingly support the suppliers of these specialized or compromised machines.

Specialization has its benefits, albeit with a certain degree of redundancy in terms of its apparent similarities to other machines.  After all, an iPhone does look a little like a Zen player, and a PSP. And a 17-inch laptop does look like a full-fledged game PC, and a 32-inch TV does look a little like a wall sized projector; so it’s natural to imagine one machine could serve the same purposes as others — a kinda Swiss Army video-GPS-eBook-TV-game-camera MP3 thingie.

But as alluring as a universal device might be, we’re still humans and we have physical limitations and needs, and for our unlimited entertainment, information, and work pattern choices, we physically need different sizes at different times in different environments. Even the beam-me-up-Star-Trek-communicator only did audio.

I don’t want to watch the Bourne Idenity on my ipod, or even my PSP, I want to watch it on the projector. And I don’t want to use Office apps on the projector, or the PSP, and cetainly not my phone — so the content and apps really deterime what size scereen and which machine we should use.

So that’s why we have, and will continue to have special glass (or plastic as it were.) I’m OK with that, in fact I kinda like it.

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Friday, March 21, 2008

Mobile Game Pricing

If you compare software prices to the cost of developing console, PC, and mobile games, something seems to be out of whack.

World of Warcraft costs about $50 million to develop and market, Call of Duty 4 – probably $20 million total, Gears of War $10 million to develop and a few more in marketing. The prices of these games range from $30 - $50 (barring subscription fees). By contrast many mobile games cost $50 - $250K to develop. So how can the mobile game industry expect people to pay $10-$20 a pop when as a percentage of development the value is nowhere near a console or PC experience? Much of the blame can be directed at the high margin requirements the networks demand for “on-deck” purchases.

Some would argue that people have no idea about the ratio of game cost to development cost but I would argue that many people (especially gamers) do have a sense of value delivered in relation to development effort and expense. For whatever reason, the bottom line is that consumers have showed little interest in subsidizing the high costs of running networks by paying relatively high prices for mobile games.

The current generation of mobile game should cost no more than $5 each in fact some should be $1 per game. Will this make a lot of money for developers and publishers? Depends on the game, but as the word of mouth, social example, and momentum spreads this pricing could expand the entire market by a factor of 10. ”A buck a game man what are you crazy?” Maybe – but if I have to choose between a 160 square pixel version of Barn Stormer for $10, which will be lost forever at the next cell phone purchase or an AC/DC Back in Black MP3 album which will be burned/backed up and owned forever – I’m going to choose the music – and I believe games and music do compete for money. People only have a certain amount of dough for entertainment.

I’m no Apple fan boy but indeed, if there is anyone who understands the economics behind this thinking its Steve Jobs and Apple. Though the iPhone is not a great gaming platform because of the lack of hard buttons (which could be overcome with a Bluetooth gaming controller), if iTunes can offer a choice of quality games at $1 - $5 a pop – it may become the largest single cell phone platform for video games based simply on the software pricing model.  Apple can’t patent appropriate pricing so the door is wide open for others. Please hurry up so I can start buying 2 games a month.

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