December 2002

THE DEVELOPER'S LIFE PART 10:
LOOKING FOR A QUICK FIX
By François Dominic Laramée

One of the things that surprised me during the process of putting together Secrets of the Game Business (coming to a disreputable bookstore near you in March) was how few of the developers who wrote articles or submitted to interviews complained about the business practices of their publishers. After all, while the situation inside the industry may not be anywhere near as dire as "conventional wisdom" would lead us to believe, I have lived through a couple of horror stories myself, and I expected most of my peers to have as well. But it doesn't seem to be the case.

Maybe the lack of complaints is due to self-selection: people who are extremely bitter about the business are probably not interested in writing about it. Or maybe it's because the people who worked on the book tend to be established, successful folks, who have an easier time of it than the masses trying to break in. Or maybe they're just too busy with their own work to worry about how other companies handle their affairs.

Whatever the case, one fact remains: publishers stand between the developers and the buyers on the value chain. And whoever sits between my stomach and my meal ticket holds a scary amount of power. Even in the best of cases, each party in a business relationship should be expected to act according to their best interests – and the more unbalanced the relative strengths of the parties, the more the relationship has a tendency to look like the one between the lion and the T-bone.

With the never-ending consolidation of the publishing sector, the number of viable outlets for a developer's games keeps shrinking. Which is an invitation for abuse; the closer you are to a monopoly, the less the invisible hand of the market is able to deliver a good spanking if you deserve one. Therefore, there is the very real possibility that, whatever the true current state of developer-publisher relationships, it might get worse.

Eat The Rich
The question, in this or any other industry, is what (if anything) should be done to alleviate the problem. Should we try to change the relationship or just leave well enough alone? P.J. O'Rourke's whimsically titled book Eat The Rich: A Treatise On Economics (ISBN: 0-87113-719-4) asks a bunch of related questions, but on the macroeconomic scale: Where do wealth and success come from? What is the ideal economic system? Or, in his own words: "Why do some places prosper and thrive, while others just suck?"

Eat The Rich is that most unusual beast, a laugh-out-loud funny book about social science that still teaches you something. A lot of somethings, to be precise. Here's a quick sample:

"You buy stock because […] you think other people will think this stock is worth more later than you think it's worth now. Economists call this – in a rare example of comprehensible economist terminology – the Greater Fool Theory."

In about two years of research, the author visited places such as Sweden, Hong Kong, Tanzania, Russia, Albania, and Wall Street to see how they had evolved their current dynamics and how well their systems work for the people involved. (The book was published a few years ago, so the data and the conclusions aren't all quite up to date, especially where Wall Street is concerned, but the essentials are still there.)

One caveat: the book was prepared with a great deal of help from the Cato Institute, a libertarian think thank whose economic positions are somewhat to the right of Genghis Khan. Thus, I expected the book's conclusion to be something like: "Blow up the government, except the army, and everything will be fine." And that's sort of what I got. The author's stated opinion of planned economies brings to mind the words "Rush Limbaugh" and "rabies". Not to mention the fact that he seems to think we should all take Hong Kong's pre-reunification system as our example, despite its astounding levels of overcrowding and pollution, its status as a British crown colony without any sort of democratic government, and the fact that "only" 16% of its households lived in extreme poverty.

But when he's not being overly dogmatic, O'Rourke displays tremendous powers of analysis – and a knack for unearthing the most unsettling stories.

The Stories
For example, if you think that Russia is the textbook case of a transition from communism to capitalism gone bad, wait until you read what O'Rourke has to say about Albania, where the entire army has deserted, the country's only railroad has been stolen and sold for scrap, and the national pastimes are gambling and blood feuds. When he asks a citizen of Tirana why the looting has finally stopped in the embattled capital after several years of chaos, the response he gets is: "They were finished." And his last image of the country is that of a father teaching his daughter how to smoke. His four-year old daughter.

Left-leaning societies get no easier treatment, of course. The following story about an extremely expensive museum devoted to a 17th century battleship decries the folly of runaway government spending in Sweden:

"The Vasa was, as a guidebook put it, 'the mightiest royal warship of her times.' The Vasa's wreck was discovered in 1956, and she was raised almost intact after five years of work by diving crews. […] However, the Vasa was launched on August 10, 1628, sailed 1,400 yards, and sank like a brick. 'The mightiest royal warship of her times' – her times being August 10, 1628, from 4:30 until 5 in the afternoon."

O'Rourke is also perplexed by the fact that there seems to be no reliable correlation between wealth and happiness. He says that average Tanzanians, who are so poor that they insulate their houses with mud – when they can afford the water to make mud – seem to be as content as any other people he has met. As long as the government leaves them alone.

Don't Fix It, Whether It's Broken Or Not?
After much research, O'Rourke has come to the conclusion that it doesn't matter whether the intentions of an overly interventionist government are good (Sweden, Tanzania) or bad (Cuba): they will always fail in the end. That may be true, although Sweden rates much higher on my list of places to live than pure-bred capitalist paradises like, say, Colombia or inner-city Detroit. But his corollary, i.e., that a laissez-faire system is preferable, stands on far less solid ground.

"Accepting the free market allows us to avoid the political abuse and financial mismanagement inherent in trying to design an economy that's fair."

Never mind the fact that Russia has a free market now. No mismanagement or abuse there. Or at Wolrdcom either.

"Economics is not zero sum. There is no fixed amount of wealth. That is, if you have too many slices of pizza, I don't have to eat the box. Your money does not cause my poverty."

True, as long as I get tired of pizza at some point and let you grab the leftovers. If I have an insatiable hunger, keep stuffing Meat Lovers Specials down my throat with one hand, and hold you at gunpoint with the other, you'll be lucky to get that box. Ask John Roth or Ken Lay when the rich are rich enough, and when it's everyone else's turn to benefit. (The book was written before the last year's financial scandals, so the author can almost be forgiven for believing that CEOs know what's good for us. Almost.)

I don't know about you, but I don't trust the rich any more than the government. Especially since they have a distressing tendency to be the same people. O'Rourke himself says it's a bad idea to let the people with all the money hold all the guns too, but he doesn't seem to have noticed that it's exactly the way things work in most Western countries.

The Lesson?
And in most industries as well, which brings us back to our original problem: how do we make sure that we, as developers, don't get the short end of the stick – or, at the very least, that the stick is long enough for the short end to provide a decent grip?

I won't pretend to have all the solutions, but I strongly suspect that the more ways we have to sell our games to consumers, the easier it will be to weed out the crooks. Build an overpass over the guy standing between you and the consumer, and his power suddenly doesn't seem so formidable.

Of course, we don't have a nice blunt government at our disposal to bludgeon Electronic Arts and Sony into dozens of hungry little publishers outbidding each other for our services. So we have to be subtle about it. Here's what I suggest: buy a self-published game online, or (if you can afford it) sign a development contract with one of the smaller publishers that growing production budgets are quickly driving out of business. In other words, apply a little interventionism, free market style.

Kind of like the best of both worlds.

BIO
If you aren't really tired of FDL by now, don't say so in public unless you are looking for a serious beating. He's been the bane of the game industry for over 10 years, during which he cajoled and threatened his way into over 20 credits as designer, producer, programmer and writer. For some reason, magazine and book editors seem to like him; his Game Design Perspectives are available now from Charles River Media, and another tome called Secrets of the Game Business will be released by the same publishing house at GDC 2003. With the dozens of articles he has contributed to other industry publications and the roundtables he hosts at GDC every year, it is getting really hard to avoid him these days. But there is hope; FDL has been freelancing for 5 years, so we expect him to starve to death any day now. Visit his mediocre web site, http://pages.infinit.net/idjy, at your own risk.

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