IGN Australia story: ‘Blockbuster or Bust: The New Face of Development?’, April 2011

A feature story for IGN Australia. Excerpt below.

Blockbuster or Bust: The New Face of Development?

Triple A or the highway?

In February, IGN Australia took a magnifying glass to the state of the Australian game development industry. We found that locally, trends pointed toward bigger development studios – whose bread and butter was console game development, often for overseas publishers – closing down. In their absence, smaller businesses – who focus on developing games for mobile and social platforms – are where the real growth is happening. However, one of our interviewees suggested that it’s a “distraction” to talk in terms of geographically-specific industries. “It isn’t helpful to talk in local terms,” he said. “It’s a global industry.”

With that in mind, we substituted our magnifying glass for a telescope, and peered across the Pacific Ocean toward the United States of America, where many of the world’s largest video game publishers reside. With the inferences from Activision’s most recent earnings call – that, increasingly, console game development is becoming “blockbuster or bust” – rattling around our brains, we asked a couple of triple-A-scale publishers for their take on this topic, as well as questions like: is basing your business exclusively around triple-A level development a sustainable approach? Is it riskier than ever to be debuting new IPs [intellectual property; ie, new games] in a crowded marketplace, where a handful of household names earn the lion’s share of revenue? And finally, does it take a huge set of balls to launch new shooters that directly compete with Call of Duty’s current market dominance?

Bethesda Knows Best

We’ll deal with that last question first, since it’s the most provocative. The company best-positioned to answer it is named Bethesda Softworks, whose headquarters – and its in-house game studios – are located in Rockville, Maryland. Bethesda also has offices in London, Paris, Frankfurt, Benelux and Tokyo. We can’t be sure, since they’re a privately held company – “we don’t ever release sales figures, annual reports, or employee numbers,” says Pete Hines, VP PR & Marketing – but we believe they’re among the biggest privately-held publishers in the world. Hines responds cautiously when asked about the size of Bethesda’s balls in relation to its propensity for launching new IPs.

“The size of the balls it takes probably varies from [game to game],” he says “You could do a new IP that isn’t a big $30-50 million project. Look at Tiny Wings on the iPhone; that’s new IP. But if you’re going to try and put out a brand new shooter on the [Xbox] 360 and go head to head with Brink, Rage, CoD, Battlefield and the others, then certainly, it’s a bigger risk, and it takes some guts to say, ‘Yeah, we know what we’re up against, but we believe in this project and feel strongly enough about it that we’re going to do it.'”

As avid IGN readers would know, the first two titles Hines mentioned are Bethesda releases. Brink is being developed by British studio Splash Damage, and will be released in May 2011; while Rage is the new shooter from the legendary id Software, the team behind Doom, Quake and Wolfenstein. It’s due in September. Bethesda is publishing both games, and they also have another IP – a third-person action game for PS3, 360 and PC – called Hunted: The Demon’s Forge due in June. While Hines won’t discuss development budgets – “I wouldn’t want to give you ballpark [figures]; big games and big ideas cost a lot of money to make,” he responds – it’s clear that there’s a lot riding on these three titles.

To read the full story, visit IGN Australia.

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