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Why Should Microsoft Invest in Marketing Xbox Live Indie Games?
Date 12/21/2009    Tags XBLIG, Rant    (2)

Microsoft has done a great job of setting up a framework for Xbox Live Indie Games to succeed and has done a lot to foster the community, but they seemed to have stopped one step short to make this a truly successful endeavor for everyone involved: marketing.


Q: Why should Microsoft market XBLIGs?
A: It will make them money.

I don't think any of us are naive enough to believe the Microsoft's Xbox Live Indie Game initiative was done for any other reason than to make money for Microsoft, either in upfront sales or indirectly by creating a new army of Microsoft developers to do their bidding.

Apple's App Store is rumored to have cleared more than $2 billion in sales in 2009. Microsoft has to look at that and see a huge potential for digitally distributed, consumer made products. Right now that is XBLIGs, in the future that likely includes Zune and Windows Mobile games developed with the XNA framework (which could in many cases be easily ported from existing XBLIGs).

More visibility for XBLIGs (brought about by marketing the service) will bring in both new gamers and new developers. Developers benefit with more purchases of their games, gamers benefit by having a larger number of higher quality games to choose from, and Microsoft laughs all the way to the bank.


Q: Why should Microsoft market XBLIGs?
A: They need happy developers to make games.

Shovelware aside, creating a game is hard work and takes a lot of time. In order to make these products that Microsoft will be collecting a 30% royalty on, Microsoft needs developers to make games. In fact, Microsoft CEO Steve Ballmer famously made such a claim in regards to Xbox developers and I see no reason why this should be any different for the success of Indie games.

The euphoria of creating and selling a game only lasts for so long. If you want to keep a developer coming back (the best games are not realistically going to be made by first time developers), he needs to be rewarded with large numbers of people playing his game (isn't that what we all want after all?). A large number of sales doesn't hurt either (and can be especially beneficial to game quality when it comes time for follow-up games that may need purchased assets like artwork or music).

The major success stories on XBLIGs are few and far between with most developers making a good deal initially before falling into a black sales abyss. With better advertising of XBLIGs, that fall from New Releases / Top Downloads to just another game won't hurt so much and won't turn away serious developers (who are likely the ones to create the highest quality games and thus bring in the most gamer dollars).

Several developers have been soured by low download numbers already and have left the service for other platforms. Many Indie developers never came over in the first place, largely for fear of such low numbers. There is a vast Indie game community out there and the number that develop for XBLIGs is a small portion of that and will stay that way until XBLIGs is seen as a truly viable source of income.


Q: Why should Microsoft market XBLIGs?
A: The service needs marketing more than the games.

Every time this sort of question arises on the XNA website forum, someone inevitably comments that it is the "developer's responsibility to market their game". For the record, I really hate this argument... it's like blaming developers of Atari Jaguar games for the failure of everyone's favorite toilet-shaped console
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Comments

Stegersaurus

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12/22/2009 8:11:31 AM

If you don't mind, I think I'll throw up some counterpoints that I think are relevant to why Microsoft may not want to market XBLIG more...

Any marketing of XBLIG detracts from something else
- Whenever you make a new slot on the XBox dash to support something else, it causes more choices for users and will detract from whatever else they are advertising. Microsoft can approach consumers more easily if they focus their advertising efforts, and adding more ads may make other ads less effective.

MS has advertised XBLIG
- Perhaps not as much as other things, or as much as you'd like, but they have. One of my apps (Pumpkin Carver) was featured along with a bunch of other Halloween stuff in October. A few avatar games have also pulled in some advertising on the Avatar games section (Avatar Dolf and Avatar Drop). They can't advertise everything, but they do sometimes advertise. I wish my Christmas Tree app got advertised around now instead of it falling into obscurity, but that's MS' call.

XBLIG make less than XBLA games
- Conversion rates on XBLA and XBLIG games are pretty good, at least versus the PC game downloadable markets. If we compare the average success story from both markets (XBLIG avg $1 and XBLA average $15) an XBLIG game must sell 15x as much. From what I remember z0mbi3s had about a 50% conversion rate? If Castle Crashers or Shadow Complex has a conversion rate of above 3.3% it's bringing in more per exposed user for MS right?

It's easier to find and market XBLA successes
- XBLIG is a mish-mash. Due to not needing to be approved by MS, games in XBLIG are of varying production quality and overall quality. If Microsoft wants to endorse their platform they want to put the cream of the crop at the front, so as not to give players a bad taste, so that they are repeating downloadable content purchasers. Some great playing XBLIG games don't have the best visuals, and it's much easier again to advertise the nice, illustrative style of Castle Crashers than it is to FIND an XBLIG with strong visuals and gameplay, especially when MS doesn't know what XBLIG games are coming out when (since advertising is most effective near release time). Finding a good game to advertise is just a lot of work versus the work already done to find the games that would go on XBLA.

The XBox doesn't have the infrastructure to support success.
- Yesterday, 10 games were approved on the Creators Club. 9 of them were New Releases. The New Releases list has 20 slots. If XBLIG gets more popular games will spend a minimal amount of time in the New Releases list before they are pushed out. Because of this, the Top Downloads list would become an even more self-sustaining system than it is now since new games wouldn't be "endorsed" for over a day, they wouldn't get the downloads needed to break into top downloads. We'd need an interface closer to popular flash portals like Newgrounds, and that's a big undertaking, especially considering how standardized the XBox interface is made to be, and how users are restricted to a controller interface.


It's not that marketing won't help indie games, but if XBLIG does grow it detracts from Microsoft's other business endeavors, and it may not mean any MORE success for the majority of indies. More marketing of XBLIG may just make the market all the more competitive and harder to pull away any mindshare from a smaller handful of huge successes. There's a reason the iPhone is a bad market for MOST developers
Kris

Avatar

12/29/2009 5:42:04 AM

Thanks for the well thought out arguments. There are definately a number of reasons why Indie games aren't advertises (or advertised as much as most of us would like).

I think there are two bigger than most... the first you mentioned, advertising XBLIGs detracts from other advertising they could be doing (or being paid to do).

I believe the second biggest reason is that it could piss off XBLA developers... they spending thousands if not hundreds of thousands of dollars to bring their game to market and they expect much higher traffic (and thusly more sales). They don't want to compete w/ XBLIGs and they certainly don't want XBLIGs (which most cost a single developer's time plus $99) promoted above their games.

In the last week, I've definately seen some signs that Microsoft is pushing XBLIGs more though... hopefully the trend continues."0"<


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