The future of the SH series

Otha · 03-07-10, 11:49 PM

Much is being made of the OSP system's intrusiveness and ineffectiveness in preventing piracy. However, as others have already said, it's not about piracy at all. It's about revenue streams. Game publishers look at the monthly revenues for a game like WoW with lust and envy. They also look at the size of the secondary sales market with resentment, because none of that revenue accrues to the publisher (and that's just pure greed; do you think a book publisher, for example, would get pissed about used books and libraries?) So, their solution is simple: require everyone to effectively subscribe to every game they publish. That way, anyone who wants to buy a copy of the game is forced to buy a new copy ala Steam (one activation per game per account and no transferability of accounts) and when they release updates and DLC down the road, they can charge you for each piece and generate a continuing revenue stream. Eventually, all publishers are going to adopt this model, so long as they can find consumers willing to pay for it.

Ubisoft, along with a number of other major publishers, views the effort to create innovative top tier titles as too risky. Their current strategy is to convert the success of existing successful IP into a continuing revenue stream. Their investor reports explicitly say as much:

Quote:

High-end games strategy

In line with the announcement January 13 announcement, Ubisoft continues to refocus its high-end games strategy by concentrating on more regular releases for its major franchises. These refocusing measures also comprise a reduction in new creations investments, which will enable Ubisoft to rebalance its existing resources on a constant headcount basis. This strategy will provide heightened visibility and profitability with a lower level of risk, thereby accelerating the generation of cash flow.

http://www.ubisoftgroup.com/gallery_.../1042/2184.pdf

What we're seeing is the inevitable consequence of the "hollywoodization" of PC gaming. Given the kind of production values that the average gamer expects from a high-quality game title, the time, complexity and production costs for a top-tier game can easily approach that of a minor hollywood film. Accordingly, publishers are adopting the same outlook and strategy of the hollywood studios: milk existing ideas for all they're worth (Rocky V anyone?) and do everything in your power to insure that every single play or view of your creation generates revenue, consumer rights be damned.

This is why Ubisoft adopted OSP. It's a sure bet that you will see additional submarines for SH5 released down the road as add-on content, assuming that the abysmal initial sales don't forever doom the series. They never had any intention of releasing a complete game, not when it can be delivered piecemeal for three times the revenue over the next several quarters. Ubisoft has two additional PC releases coming this quarter, and one Wii release. The company is depending on the revenue from those PC releases to bolster it's quarterly results and keep its investors satisfied. It remains to be seen whether or not OSP will torpedo its PC sales, along with the freedom of Ubisoft's developers to innovate. Personally, if I owned Ubisoft stock, or any current Ubisoft PC title, I would be looking for the nearest lifeboat.