Brad Wardell's views about technology, politics, religion, world affairs, and all sorts of politically incorrect topics.
What about YOUR game?
Published on July 22, 2004 By Draginol In Game Developers

I've been getting a lot of email and posts from game developers who are wondering what our overall strategy is with getting new games on TotalGaming.net. Let me take a quick stab at that in plainer terms than any spindoctored marketing document could:

TotalGaming.net is a gaming network for obtaining games electronically and downloading them right away. What makes it different is that it also includes retail games as well as indie titles and that there is no sort of DRM type scheme or "renting" involved. You're buying games.

From there, you can purchase games either individually OR purchase a TotalGaming.net subscription which contains most of the games available in the whole network.

Regarding royalties: The developer's game is made available as a seperate purchase. What % of the sale the developer gets is based on a number of factors but one of which is whether the game is also part of TotalGaming.net's subscription as well.  Their royalty of the TotalGaming.net subscription also depends from game to game.

A developer can opt out of having their game available as part of the subscription but their stand-alone royalty would be smaller since they are, to a degree, riding on the popularity of the subscription to get users to notice their games on the site.

The challenge for us is both repeat and avoid what happened with Object Desktop.

Object Desktop sells a LOT of copies each year. Object Desktop has sold more copies in the time GalCiv has been out than GalCiv has. And its sales INCREASE over time. So in that sense, we want to repeat that experience in being able to have a suite of software so compelling that it reaches critical mass and people just buy the whole thing even though there's only X programs they'll end up using.

But originally, Stardock intended for Object Desktop components to be developed mostly by third parties (like we did on OS/2 with "OS/2 Essentials"). But developers would focus too much on the per unit royalty rather than on the big picture. Is it better to make $20 per copy but only sell 500 per year? Or is it better to make $1 per copy but sell 100,000 copies per year? Year after year after year? So ultimately we ended up making most of the Object Desktop components with our own development team. Which worked out for us but it took longer for us to reach critical mass.

With TotalGaming.net, IF we can just get enough games on there that it reaches critical mass, then you get to that "no brainer" level of value that people just plunk down $89.

I've talked to a lot of indie developers over the years and the typical indie develoepr game sells far fewer than 5,000 per year. In fact, the majority sell less than 1,000 units per year. So if their $40 game sells 1,000 units, that's $40,000. On the other hand, if we can combine our strengths (and stardock is willing to eat it quite a bit on this to make it happen) we can have a gaming network that sells 20,000 copies per year, then 40,000 then 60,000 until we reach whatever the maximum sales level that can be attained. So then the developer making $1 or $2 per unit is making quite a decent amount of money just on the subscription.

Throw in another 500 to 2000 units sold stand alone where they get a good chunk of it and they have a pretty sustainable base.


Comments
on Jul 23, 2004
I hope this works for you - I like the model. The point here is that by giving people value, you will get money from people that wouldn't have bought anything to begin with. Personally, I can never justify $89 for a single game. Justfying $39 for Gal Civ was difficult. The upgrade to Drengin.net was tough also. I've probably only bought 5 or 6 games ever.

Thing is, most of these games I probably wouldn't have bought. Not disciples II, not Celtic Kings, etc. But put together in a package, at this value, yes, I will buy it. And what that means is that you and the developers you sign on get money that would not have been there before, as you point out. So even though they get a smaller share, they get it more often.

Just imagine if EA had a subscription model, for example. It could be $100/year, let's say. For a company as big as EA, with all the products they release, that would be a steal and most gamers would be stupid to pass it up. The actual per unit price of the games would be, as you point out, very low. However, such a subscription does several things. It ensures repeat business. It helps to build a "community" of customers, because the customers have a stake in all of the company's releases, not just the one they bought. And those like me, who probably would not have bought more than 1 $49 game at most per year, will actually be spending twice as much. The only customers they would "lose" money on are those who were going to buy all the games anyway - which is only the hardcore gamers. And, well, they could be offered a premium subscription that gets them the games a month earlier than the "ordinary" subs do.
on Jul 23, 2004
Exactly. The hard part is getting developers to realize that they ARE NOT losing sales from this in general. Because they are getting money from sales that they simply wouldn't have gotten. WizBangGame IV gets $X per copy of TGN subscription. Sure, if they had bought WizBangGame IV on its own they would have made more. But odds are, they wouldn't have bought that game.

I've always taken the position that I'd rather make a small amount of income per unit rather than none at all.