By Gabe Zichermann of Trymedia Systems
"Digital distribution is the future of
gaming."
This is what I’m hearing from both industry pundits
and press alike. And, quite frankly, that’s a very cool
shift from what I heard at GDC only 2 years ago which
ran more along the lines of: "Peer-to-what?" or "Dude,
people will not download 100 megabytes!"
Many of us believe that digital distribution has
plenty to offer. Whether you develop simple puzzle
games, or major RTS titles for the hardcore gamer,
effective digital distribution, combined with game
design forethought, can help thwart piracy and make you
money in the process.
Digital Distribution Overview
Today’s digital distribution (DD) landscape is
appears even more promising than the most optimistic
among us (read: me) would have believed. Trending right
alongside peer-to-peer networks, legitimate PC game
downloads are increasing exponentially, with Trymedia
alone delivering over 10,000,000 games in 2002. That’s
well more than all the games sold and previewed at
retail. People are not only downloading patches and
cracks, but full-version games – and paying for them,
too! Digital distribution providers, such as Trymedia,
Real Arcade, and Yahoo!Games (see a more complete list
at the end of this article) are on track to become among
the largest channels of PC game content in 2003.
Mainstream and hardcore titles such as Roller Coaster
Tycoon, Monopoly, Rainbow Six: Rogue Spear
and Disney’s Treasure Planet: Battle at Procyon
have made their way to digital distribution with fanfare
and even real revenues. The bottom line is that DD is
not just for coffeebreak games anymore, every title with
retail potential - and then some - is a genuine
candidate for online success.
Moreover, channels like the peer-to-peer (P2P) networks
have exceeded projected expectations. According to
Altnet’s (KaZaa) user behavior analysis, game content is
now the third most popular type of download,
network-wide, after music and porn. With over 30 million
users previewing and buying games with increasing
regularity, P2P networks aren’t just for hackers
anymore, but are among the most significant new channels
for game sales.
The most notable shift over the past year has been
the consumer’s willingness to adopt the download model
for game acquisition. In recent research conducted by
Trymedia, over 70% of downloadable game buyers said they
would prefer to get all their favorite games via
download. Although that statistic, most likely, cannot
be projected to the entire universe of game buyers, it
may be considered a harbinger of things to come in the
near future, as broadband spreads and more publishers
get on the DD bandwagon.
Developers and Digital Distribution
While it may not seem immediately obvious,
developers are playing a critical role in the evolution
of digital distribution. Despite the fact that
developers have much to gain from end-user adoption of
downloading (more revenue, customer relationships, and
faster turnaround), most have yet to adopt a strategy
for DD. Some, however, such as PopCap, GameHouse and
Team17 have implemented advanced digital distribution
strategies that are already generating profits.
So, what exactly is the developer role in the
DD scenario? To better understand how developers can
control and profit from digital distribution, it is
beneficial to look at three key vectors: Design,
Dialogue and (the) Deal.
Designing for Digital Distribution
Start by believing that your game will end up
digitally downloaded. Whether you and your publisher put
it there, or crackers do it, there will be thousands of
copies of your title floating around the ‘net –
sometimes even before it's released. That is, one way or
another, you need to design for digital
distribution.
There are two main objectives in developing an
effective technical approach to digital distribution:
A) Make the game as easy as possible to get,
try, buy and share; and
B) Make the game as difficult as possible to
crack, hack and duplicate.
(In this order and for a reason -- it’s about
revenue, stupid!)
To achieve "A", you, the developer, should
focus on making a few, minor design changes that will
optimize your game for eventual digital distribution.
Although many of these items seem straightforward (and
you’re already doing them), they are incredibly
important for this channel, so it’s worth repeating:
1) The first level/episode should be an
excellent, engaging and highly addictive "trial" of your
game. Because most digitally distributed games come in
"try-before-you-buy" format, the first experience a user
has with the game is critical, and the first level (or
set of levels) makes a clean, easy and effective place
to put the trial’s end. And, although no one wants
to require a manual for gameplay, it can be the kiss of
death in digital distribution where the user has no
print materials handily available.
2) You’re showing a trial, but selling the whole game,
so wherever possible, think about withholding some of
the more exciting game features until after the first
level or group of levels (the trial period). This will
provide some additional incentive to users to buy the
complete game. When designing high-value features, like
multiplayer, try to keep the code base separate, so
these elements can be easily restricted to only the full
version of the game, thereby providing another incentive
to buy.
3) Avoid serial numbers, keys or integrity checks.
Most DD technology providers have very sophisticated
tools to ensure that your game has not been pirated, and
you can typically even get these tools for free. While
your team may be excellent at security, DD companies are
engaged full-time in thwarting hackers and, given that,
they are likely to have better outcomes. Further, your
homegrown security could interfere with the process of
getting your games ready for legitimate online
distribution in the future. And, most importantly,
consumers hate having to enter keys/codes. Effective DD
solutions obviate the need for codes/keys in the initial
purchase, making the user experience even more seamless
and trouble-free.
4) Avoid configuration utilities that are
required for game launch. These interfere with the
smooth try-buy process that is the holy grail of digital
distribution.
5) Use advanced compression where possible,
especially for lossable file types such as audio and
video. Again, if you choose the right DD technology
partner, you’ll have access to some great compression
tools that will significantly help you minimize file
size and maximize the user experience.
6) Consider that patches will be full-exe in your
design plan. Most DD providers will require that any
patches and fixes (which can be easily pushed online)
completely replace the exe they are patching. This is to
ensure the integrity of the security scheme, and is
generally a minor burden on the end user. To maximize
the positive effects of this change, group your compiled
code into the smallest logical file unit that optimizes
for playability. This will ensure maximum flexibility
when/if patches are eventually required.
7) Keep CD-ROM code under conditional statements
so that you can easily build a version for DD that does
not require CD-ROM checks.
To achieve "B" (security), you should rely on
your chosen DD partner to provide you with a robust,
flexible and easily healed security solution. Balancing
the need for excellent security against high levels of
usability is also now a win-win, with many DD providers
doing a commendable job at both. In short the winning
axiom here is to choose your partners carefully.
For both A & B, you should use a DD technology that
has a track record of success and the appropriate tools
for your game. Try to incorporate low-level security
hooks into the product during the development cycle so
that once the game is released, it’s easier for you and
your publisher to take it live online. Either way, most
technology providers have something today that can help
you.
Having "The Talk" With Your Publisher – Birds and
Bees Optional
Once you’ve decided that you want to take an active
role in digital distribution of your title, you need to
tell your publisher. Let them know that you not only
agree to have your game downloadable, but that you
encourage it. Because many of you even operate your
own fansites for your games, and have lists of end
users, you might even consider selling the game from
your own site. If you eventually participate in the
process like this (commonly called an "affiliate"), you
can expect to receive anywhere from 5% to 15% of the
selling price for being a point of distribution.
The developer’s opinion on the subject of digital
distribution is critical to the publisher. You might be
surprised at how often the publisher-side marketing and
production groups -- worried about injecting another
issue into their relationship with you -- are unwilling
to start the DD conversation for fear of derailing the
process. Your strong and unequivocal support (along with
your technical contribution) to DD can help maximize
your games’ revenues, while taking money out of the
hands of pirates. That’s a win-win for everyone.
The New Deal
Regardless of how strongly you advocate for digital
distribution, you will need to consider how it impacts
your publisher deal. In fact, your contract may already
include digital distribution rights. If these rights are
granted but remain dormant, they are not maximizing your
royalties, and you should ensure that you get some
commitment for digital sales efforts. It is not uncommon
for publishers to hold onto DD rights in a negotiation
but never actualize them until well after the game is
back-catalogue. This approach can depress your
royalties, and should give you obvious motivation to
rectify the situation.
Maximizing revenues means getting a game released
simultaneously in both retail and online channels. The
benefits are obvious, and with the right DD partner,
your game can be all over the web and P2P networks
within hours of its release. If you proactively place
and promote your title online, you also have an improved
chance of displacing pirated copies. Although some
companies have had tremendous success at doing
displacement post-release, experience shows that you
will increase revenue (without cannibalizing retail) by
releasing your games simultaneously. In research
conducted by Trymedia on online game buyers, over 60%
said they had no prior intention to buy their downloaded
game at retail, but they did buy it directly online.
This helps make the case that people who buy games via
download were not going to walk into a Best Buy near
you.
Many developers also retain reversion-rights.
This is where you get the rights to your game back after
a period of time. If it’s possible, and you want to run
your own DD campaign, you should attempt to get these
rights back after your standard contract has lapsed.
If you end up doing your own digital distribution,
you would be well served to involve one of the online
game aggregators and/or technology providers to help
sell your product. These companies can provide a wide
range of services, including security, payments,
distribution, marketing and promotion. For their
services, you will pay from 20%-70% of your product’s
sales, depending on what services you choose. Unless you
have a strong desire to do everything yourself, go for
the most complete offering you can find, especially for
your first title. Later, you can always increase your
contribution to the process, and thereby reduce your
commissions paid.
Of course, if you’ve done some good thinking in the
design phase, protecting and distributing your titles
online should be cake. But, even with unmodified
content, most DD providers can do remarkable things. If
your game was not optimized for online distribution,
you’ll probably still be able to reap the rewards
online.
Conclusion
As originally proposed, digital distribution has
plenty to offer. Whether you develop simple puzzle
games, or major RTS titles for the hardcore gamer,
Internet and peer-to-peer distribution may offer an
exciting opportunity: untapped (non-cannibalizing)
revenue, greater control, and a better end user
experience. By carefully evaluating both your design and
partnership choices, and by advocating strongly with
your publisher, you can help to thwart piracy and make
money in the process.
If you want to hear some real-life stories about
digital distribution: the good, the bad and the ugly –
and what your fellow developers have learned about it
(so you can avoid the same mistakes), the GDC organizers
have set up two panels on the subject at this year’s
event (see links, below), or feel free to contact me at
gabe@trymedia.com.
AUTHOR BIO
