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Developer consolidation bad for gaming industry?
Lydia Sung - Wednesday, August 27th, 2008 | 11:34AM (PT)


CNET writer seems to think so

Developer consolidation bad for gaming industry? Image 1

Although Take-Two did eventually turn down Electronic Art's offers by letting the final one expire earlier this month, the two video game giants have been entertaining the idea of a merger.  This is mostly on account of EA's undying persistence, and both companies have signed confidentiality agreements to keep ongoing negotiations under wraps.

While some might think this marriage would give rise to new and better video games born from two different groups, Don Reisinger at CNET believes quite the opposite:

Some tout this acquisition as the next logical step for a video game industry that's becoming more consolidated. Others say that EA's takeover of Take-Two could actually increase the value of games and create a company that will offer some of the most impressive titles we have ever seen, thanks to the combined efforts of developers.

That sentiment may ring true in some cases, and every now and then, there's a flash of something unique, but if this acquisition becomes a reality and EA swallows up one of the biggest developers in the industry, it spells trouble for gamers and the industry itself.

Reisinger goes on to say that consolidation would ruin the industry's ability to offer unique video games, meaning we would only see more and more sequels rather than new IPs.  Furthermore, developers who may want to flex their creativity by making more interesting games would be quashed by the suits that sign their paychecks.

While he acknowledges the need to make a profit, Reisinger says the hype surrounding games like Spore and LittleBigPlanet are an indication of the community's thirst for more innovative titles.  And yet they do not dominate the current market:

Market research and sales figures dictate more sequels and first-person shooters because those sell and most companies believe that there's no reason to risk developing an innovative title that may or may not appeal to consumers when the guaranteed money is in light updates to known titles.

And if EA and Take-Two--two of the biggest culprits of derivative gaming-- combine to form one major developer, this will only get worse.

I'm thinking he did not enjoy Grand Theft Auto IV and isn't looking for to Gears of War 2 like some of us sequel-loving sheep are.

Source: CNET

Section: Announcements

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Comments:

August 27th, 2008 1:59PM(PT)
chautemoc
Balance is great. Some amount of sequels is awesome...developers can learn from their mistakes the first time around and make a good thing even better. But it's pretty easy to tell when it's contrived, which unfortunately, is fairly often.

Mostly I agree with him. More voices surviving in the industry the better..that means more inspiration going around.

Oddly though, in a way big companies like EA can better afford to take more chances, and yet don't..or at least havent been. It looks to be changing somewhat..the CEO said less licensed trite from now on, recently. Anyway they're making more deals and appear to be supporting the smaller studios, whose titles are all over the map.
August 27th, 2008 2:40PM(PT)
RabidChinaGirl
Oh, I was actually quite opposed to EA buying Take-Two, and I was glad it didn't go through. I honestly don't think the merger will follow through either because Take-Two is extremely confident in their own abilities after the unrivaled success of GTA IV.

I agree a lot of sequels are just terribad, but there are plenty of good ones, and in Nintendo's case, consumers can get quite upset if companies don't make them.

Perhaps he simply fails to realize that sequels aren't all for the companies themselves. People will buy titles from a franchise they know because it's something they recognize, as opposed to an IP that could be hit and miss.

Personally, I've been dying for Gears of War 2 the day I finished the first one. There are games where sequels are warranted, and you know they'll be good. On the other hand, I really don't want to see Okami marred by a half assed follow-up (especially when the original team has left).
August 27th, 2008 2:54PM(PT)
OmegaFury
If there were less competing companies, then the industry would be in shambles, with less options and less for the dollar when it comes to the consumer. Competition is the only way we get sweet deals, and keep the price of video games at an agreeable level. Actually, it's the reason why Nintendo is taking the lead against its competitors: they provide as good or better quality, for less money. Think about it. This is basic economics. Instead of paying 60 dollars for a game, with the Wii, you only pay 50, and instead of paying 400-600 dollars on a console, you only have to pay 250 for the Wii. Yeah, you could argue that the PS3 and the Xbox 360 generate better quality games, and I'd agree with you too, but the Wii gives you some mediocre titles (and some good ones at times) at a lower price, and a console at a lower price. Hell, they are actually making money off of their console because of how damn efficient it is, while with Sony and Microsoft, they lose money for every console sold. Why do you think most of your things are made in China (or some other third-world/ developing country)? More for less.
August 27th, 2008 3:11PM(PT)
RabidChinaGirl
quote OmegaFury
Why do you think most of your things are made in China (or some other third-world/ developing country)?
Probably because it's, oh I dunno, cheap as hell and no workers' rights issues to deal with? Insert massive sarcasm quotes.
August 27th, 2008 3:13PM(PT)
OmegaFury
Exactly. In other words, more for less.
August 27th, 2008 4:00PM(PT)
chautemoc
Haha, I fully second this massive sarcasm.

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