So there has been a lot of fuss over the past year over the “death" of the PC gaming industry as more and more developers, such as Epic, are moving toward consoles. Some people, mainly on the developer/publisher side blame this on piracy, while the people on the gamer/player end basically complain that their are no innovative titles anymore due to games being originally designed for consoles. So I figured I would take a moment to give my two cents on the topic.
Where as in the past PC games greatly outperformed consoles in terms of graphics/framerates, systems like the Playstation 3 and Microsoft xbox have in essence closed that gap. It can still be argued that a pc can render graphics at higher resolutions and with more frames per second, which they can, however it really doesn't matter anymore. The average customer doesn't want to benchmark their consoles performance and compare numbers, they want to be wowed with graphics and effects. Today's systems more than accomplish that.
Also adding to the difficulty of developing for PCs is the ever changing range of hardware that's available. The xbox you buy today will essentially be the same as what was available a year ago. It will use the same hard drive, the same video and sound card. On the other hand, PCs are in a constant state of flux. With just the graphics cards alone, you have ATI and Nvidia releasing a new chipset 2 or 3 times a year. Each time one is released, it is sent out to several manufacturers, each of whom designs the rest of the card and drivers to accommodate the hardware they have created. Add to that various processors, motherboards, sound cards, and other components, and you are looking at a significantly increased time in beta testing to ensure as much compatibility as possible.
So what does all this mean for developers? Well to start off lets look at how the publisher/developer relationship works. Typically when the publisher decides to sign on with a developer, they usually advance royalties to them to help cover the costs of development. After the game is released, roughly 10-15 percent of the sales for each game goes back to the people who designed it, the publisher keeps the rest. However it is important to note that the developer doesn't actually start getting paid until their advance is paid off. So if a company was advanced 2 million dollars and is receiving a 12% royalty, they have to make just over 16 million dollars in sales just to break even. At $50 a game, that would come out to about 320,000 copies.
Now take into account the extended development time, and the fact that cutting edge graphics can shrink your customer base based on how many PCs can actually run a game, and you can see how companies get into trouble. Really it just comes down to a simple matter of cash flow, which is what is responsible for most start ups going out of business. If you don't sell a million copies in the first fiscal quarter following its release, you may very well run out of money before your sales can catch up to accommodate your costs. When a developer goes bust following the release of a game, this is usually the culprit.
So is the PC gaming industry doomed? In my opinion no, but companies are going to have to adapt to their new environment, just like an other industry. Following this are some examples of changes in mentality that need to take place.
1. Graphics are secondary to gameplay ALWAYS. Players will forgive a game for not having the latest graphics and special effects if the gameplay is enjoyable. On the flip side, they will not forgive a game that is not entertaining to play, no matter how pretty it looks. Also the better the graphics, the less people that posses the hardware to play it.
2. Consider 3rd party engines when possible. Unless you have a proven team that you have the utmost confidence in that can build a games engine at cheaper cost that you would have to pay to buy it, take advantage of others proven work. even if it costs a little more, it will free up much needed time for gameplay balancing and enhancements. The Quake 3 engine is a perfect example of this, as it was used in medal of honor, call of duty and soldier of fortune 2. EALA, formerly known as Westwood, used the engine from CNC Generals to mate Battle for middle Earth.
3. Digital Distribution methods. This venue could end up being a savior for PC game developers. Take one of my favorite developers, Tilted Mill, who has currently released 2 of their games on steam for $20. Even though the price may seem to low to support a business, compare the terms to the deals involving publishers. At 12% , out of a $50 game, the company will receive about 6 dollars. Now whereas with steam, even if valve charged 25% per game sold, which they don't, you would still be looking at twice as much profit per sale. In addition, you can retain the rights to your game, rather than handing them to the publisher.
4. Actively support user created content. Releasing mission editor tools is probably the best decision game developers have made in the past decade. Dedicated fans have created hundreds of excellent maps and mods for dozens of games, at a rate no company could touch. It is important , however, that a forum be available to organize, rate, and identify exceptional work.
So to close, the PC gaming industry is not dying, however competition from consoles is only going to increase, so its up to game companies to make the most use of the strengths they possess.