Umair Haque / Bubblegeneration
umair haque  

 
 


Design principles for 21st century companies, markets, and economies. Foreword by Gary Hamel. Coming January 4th. Pre-order at Amazon.


 
Wednesday, March 23, 2005


Games Industry vs Simulation Economy

BW on Eidos/Elevation and the innovation squeeze on developers. I think this piece gets it all wrong - sure, development costs are high and rising. But the industry's problems are structural, not technological - limited revenue streams, short product life-cycles, artifical obsolescence and distribution scarcity, all of which ultimately result in marketing (and to a lesser degree, development) cost spirals.

I think the growth of dev costs relative to expected revenues, which is probably a more insightful way of looking at the issue, is a function of these fundamental structural issues, which are already forcing innovators to radically innovate and find more efficient, less risky, and less long-term capital-intensive business models (viz SecondLife, MMORPGs, Habbo Hotel).

Here's a related Beeb piece, talking about how the UK develops great games, but because it hasn't been a b-model innovator, gains are flowing overseas and the dev side of the industry in the UK is shrinking fast.

-- umair // 1:49 PM // 0 comments


Comments:
 

Recent Tweets







    input
    portfolio
    contact

    mail.
    uhaque (dot) mba2003 (at) london (dot) edu

    skype.
    umair.haque

    atom feed

    technorati profile

    blog archives