Showing posts with label Indie. Show all posts
Showing posts with label Indie. Show all posts

An Algorithm for Discovering "Hidden Gems"

So you've probably seen that Ars Technica article that has magically reverse-engineered every steam game's  gross (sales+free-key-redemption) numbers.

Everyone's talking about this graph:


The obvious first statement is "WOWS! Video games are a hit-driven business!!!" For what it's worth, our game Defender's Quest is probably located somewhere between 800-1200 on that graph, and we're doing just fine.

But what about the game at 2600? And what's going to happen when Steam totally opens the floodgates?

Every developer I know has a list of obscure indie games they know are great, but just can't get the exposure they deserve. Jay Barson talks about this phenomenon in his recent article The Best-Kept Secrets. (Incidentally, if you like CRPG's and haven't bought Frayed Knights yet, do yourself a favor and grab it)

Here's Jay (emphases mine):
A friend told me about an experiment in inequality and the “cultural” marketplace. Test audiences were exposed to new music, and invited to download and keep some songs. The songs had indicators of how much they’d already been downloaded. Some of the songs had an artificially inflated number. What they discovered is that the artificially inflated number helped the popularity of some songs within the controlled audience, but could not others.

In other words – some songs had hit potential and others did not. If a song had both hit potential and an apparent wave of popularity behind it, it could take off. A song that sucked rarely did well. Hit potential could not guarantee success, but it’s lack could guarantee the lack of success – or at least a large success. In other words, the distorted perception of popularity had some effect, but was not the sole contributor to the success or failure of the song.
Right now stores like Steam and the App store are dominated by "top selling/grossing/downloaded" charts, which all suffer from the same problem -- the charts are self-reinforcing and prone to freezing, thus encouraging shady behavior. You can mitigate this effect in various ways (such as sampling over a shorter time, as Steam seems to do), but the problem remains -- the games on top stay on top.

My twitter friends are constantly trying to personally give visibility for such "hidden gems" and I think that's admirable, and we should keep doing stuff like that. At the same time, I think we can supplement those efforts with some mathematical tools.

Here's the idea -- if the above experiment's results are applicable to video games, there might just be a way to build a "hidden gem" detector, given access to the right data. What we're looking for is some quantifiable way to find a game that people really seem to like, but that hasn't yet had a chance to be popular. The kind of game my twitter friends are talking about when they say, "RT! Man, <game X> is wonderful, such a shame no-one has heard of it."



Building a "Hidden Gem" detector

What we're looking for is games with high engagement stats but low overall popularity. The data Ars Technica has been working with is truly awesome, but for these purposes it's a bit thin -- all we've got is gross units owned by players (lumping together actual sales with steam key redemptions), and some play time stats which have some known reliability issues.

But Steam has access to better data than that. Steam knows exactly how many copies of each game have been sold as well as the number of concurrent players, all down to the hour, region, and platform. It also has overall playtime stats per player, though that might be less reliable. There's also conversion rates for games that have demos, achievement data, and more. And of course, there's also the recently-added user reviews.

In short, Steam itself has plenty of data, both private and public, to make a pretty good guess at overall player engagement for a particular title. For "traditional" games, a higher-than-average playtime is a good heuristic for engagement, and for short-form games like Dear Esther, some metric for "completed the experience," such as a specially marked achievement, could work. Or we could just follow Kongregate's example and simply go by user rating, as I suggested in a previous article. (I personally prefer something closer to the Tomatometer over anything like MetaCritic scores).

The key is you have to be careful not only with what you measure, but how you measure it. Give these two articles a quick read before proceeding. It'll just take a minute:

How not to sort by average rating
reddit's new comment sorting system 

Back already? Great.

As those articles detailed, the ranking system should measure something other than raw popularity. Otherwise, the first item to get close to the top gets seen more, and thus collects more (sales/upvotes/downloads) and the cycle continues. The ranking system should also automatically take into account uncertainty based on sample size.

If you're ranking based on an engagement stat like play-time, or by user rating, then getting to the top does not guarantee that a game will stay there. In fact, the influx of new eyeballs will more than likely kick the game down a few notches as it gets exposed to a wider audience. This way, only games with high engagement --regardless of popularity-- will be able to stay at the top of the charts for a long time, which is how it should be. The chart is self-correcting rather than self-reinforcing.


Quick example: imagine a single-player RPG with median playtime of 5-10 hours -- well above the average for Steam games, but with less than 2,000 sales. This should be easy to detect. Or one of those crazy avant-garde "experience" games, the kind you only play once but it's amazing. Say that game has 2 hours median playtime, but 90% of it's 3,000 or so players have gone all the way through. This should stand out, too.

We don't have to get super-detail-oriented with this. In a world where 37% of player's Steam games haven't even been loaded a single time, it should be easy to make some simple broad-strokes guesses and pick out games that make you say: "wowzers! A small niche of folks really love this thing."

Let's make a "hidden gems" list for those.


Limitations

The "hidden gem" detector isn't a silver bullet. It doesn't make the game of platform power go away, nor does it solve the structural, sociocultural and/or economic issues that favor the big boys. It also does nothing for games that aren't already on Steam (though Valve has given every indication they're going to let just about everybody in eventually). Here's a few other issues.

Beloved by Niche, Hated by Mainstream
If the "Hidden Gems" list is featured right on the steam front-page, then a lot of cool, weird stuff that's beloved by small fanbases will shoot to the top of the list. Immediately afterwards, there's a fair chance the mass market will cast its withering gaze upon it like the Eye of Sauron and mercilessly smack it down faster than you can say "Walking Simulator." So, perhaps hidden gem lists should be segregated into their natural niches, using steam tags, or an amazon/netflix-style recommendation engine?

On the other hand, you never know what seemingly crazy game idea will actually catch on if it's just given a chance with the mass market. This is exactly the kind of tool that could bring us the next Goat Simulator.

Different Strokes for Different Folks
As I mentioned above, you can't use a one-size-fits-all engagement heuristic to catch all the gems. "Did you finish it?" is much more relevant to judging overall engagement for Dear Esther or The Stanley Parable than it is for World of Warcraft or Dwarf Fortress. Since the whole point of this is to identify interesting things that would normally be passed over, special care will have to be taken with the various heuristics used. And what about things that are harder to measure like Proteus? I'm confident there are ways to detect people's interest in these things, but we'll have to be smart about it.

We Won't Find Everything
This method can't possibly find all the gems, nor should we expect it to. It's just another tool, and that's important to remember. It won't fix everything, but it could help make things a lot "less worse."


Gaming the Charts
Anytime you have a system where charts drive sales, it encourages people to game the charts. If it measures downloads, you drop your price to zero, cross-promote, and use your own money to inflate your stats. So I could easily imagine similar scams if we're measuring user playtime -- with proverbial goldfarmers idling steam games to inflate their client's chart positions. Safeguards could be put in for this -- it should be pretty easy to look at other metrics to detect if someone is "idlefarming" for chart position. Of course, cheating of any form is always an arms race, with the only final solution being to make it not worth the cheater's time and money to cheat in the first place. Which brings me to my next point.

Moving beyond Charts

By itself, I don't think another chart on the steam front page is going to make a huge difference -- being hand-picked for a feature still makes a world of difference and most Steam developers put their marketing efforts into securing that rather than trying to micro-manage the charts.

Valve has said their vision for Steam's future is that anyone can make a steam front page and curate it themselves. The algorithm I've described above could be used not just by automated charts, but by actual human curators. You wouldn't have to expose any sensitive data (like sales or playtime), just give curators the ability to look for these kinds of patterns with advanced search tools.

Right now, if I want to promote an obscure indie game, it has to already be on my radar. How cool would it be if I could just whip out my Hidden Gem Detector and go treasure hunting instead?

Defender's Quest 2 March Update

Alrighty! Time for an update on where we are in Defender's Quest 2.

Those of you who follow me on twitter know I've been active, but I sometimes forget that our followers are spread out over multiple channels - our forum, our steam page, our gog page, our newsletter/website, our blog, etc. So, I'm going to try to shift from my "ignore everything but twitter" mode that I've unconsciously slipped into. From now on I'll try to supplement my daily twitter spew with decently-sized blog posts from time to time, and then link to them in all our forums, etc.

What We've Been Doing

First of all, until very recently we've been finishing up the last bits of legacy support for the original Defender's Quest. Now, you might ask, "Why would you spend all that time supporting an old game when you have a shiny new sequel to work on?" Several reasons:
  1. It builds up sustainable long-term revenue
  2. Our strategy is to slowly build DQ2 preorders over time to avoid Kickstarter-style pressure.
  3. Send a clear signal that we really do support our games long-term
We have been doing some DQ2 work in the last few months, of course, but it's mostly been pre-production and part-time engine work. Lots of game mechanics and design depend on the story, and we wanted to give James (our writer) the proper amount of time to go through several drafts.

Oh, and my wife and I had our first baby (as did Anthony and his wife) about 8 months ago. So that's been a little bit of a time-sink :)

All that said, we have gotten plenty of stuff done and have some things to show. Alpha and Beta are still a ways off, and the official final release date is "When It's Done."


First I'm going to talk about the DQ1 legacy support we've been working on, then I'll get to the DQ2 stuff.

DQ1 Stuff

Six languages!



The biggest thing we've done for DQ1 legacy support is add five foreign language packs -- German, Japanese, Czech, Korean, and Russian. We contracted Fabian Bindel and Thomas Faust for our German translation, and worked with PLAYISM, a Japanese PC games publisher, for our Japanese translation. The japanese version just recently launched on their site (english page here).

The Czech, Korean and Russian translations were generously provided by awesome fan volunteers. (The Czech translation was provided by our own forum superstar 'coyot', the Korean translation was done by Team.SM, and the Russian translation by a large group of fans). It was a lot of work to get all these translations working, particularly when it came to user interface and font stuff, but we've learned a lot from the experience, and thanks to all that, DQ2's localization process will be a lot smoother.

In fact, we've already written the framework and released it under MIT license on Github, behold -- FireTongue! Like the rest of DQ2, it's written in Haxe, and is already being used in other cross-platform games, like this one! It was even featured in a brief talk at this year's GDC localization summit.

SteamOS, bugs, etc

We fixed a lot of bugs and  have been working on getting DQ1 running on SteamOS ever since we attended Steam Dev Days. Since DQ1 is still stuck with Adobe AIR, this is not an easy task. Although we have a good solution for regular Linux distributions (Ubuntu, Mint, etc), SteamOS is harder to get working. The difference is that SteamOS has a unique default setup that changes how the default user interacts with commands like sudo.

It's easy enough to work around it on my SteamBox by messing with the configuration, but we need to create a simple script that will work flawlessly for any user using only default factory settings. Thanks to the heroic efforts of Alexander Sturm and the nice folks at Valve, we've finally figured it out, but it's not up and running *just* yet. As you can imagine, I can't wait to have all my tech running natively on Linux via Haxe rather than AIR, as I blogged about recently.

We also need to get a Linux build ready for GOG Linux. Given that the intersection of GOG players and Linux users are solidly unified in their hatred of Adobe AIR, this is more of a delicate communication problem for us to solve rather than a technical one, but we'll get it sorted out soon enough.

Thagomizing

Finally, I've been steadily looking for opportunities to chase DQ1's "Stegosaurus Tail." You can read the linked article to get the full story, but the short version is that we've made more money in the second year of release than in the first.

By relentlessly chasing down promotional opportunities, we can keep introducing brand new people to DQ1, keep the bank account afloat, and thanks to our silly mini-ARG update, let new players know about DQ2 and drive pre-orders. Maintaining DQ1 sales is important because we don't want to rely entirely on pre-order revenue; the entire purpose of running a low-key "anti-kickstarter" is to avoid the intense pressure and hype usually associated with traditional crowdfunding drives.

FUN FACT: in the aftermath of writing the aforementioned article, I learned that the proper scientific term for the spiky bit of a stegosaurus tail is a "Thagomizer", originally coined by Gary Larson in a Far Side cartoon, and has since been officially adopted by paleontologists!


So from now on, I'm using the verb "to thagomize" to refer to the act of pursuing promotional opportunities for an old video game in order to drive further sales spikes on the long tail. 
"What you been up to lately?"
"Oh, the usual - coding, blogging, thagomizing."

DQ2 Stuff

Okay, so you probably want to hear about all the DQ2 stuff we've been doing!
Before I go any further, allow me to properly deflate your expectations with a metaphor.

The Iceberg Effect

Here's a picture of an iceberg. Notice that almost all of it is under water, and only a tiny bit pokes above the surface:


Via Wikipedia (source)
Uwe Kils (iceberg) and Wiska Bodo (sky).

A lot of work goes into making a video game, but the only part you can really experience as a player is the bit that pokes above the surface of the water. You see the graphics, the audio, the controls, but you can't see the thousands of lines of code behind the surface that keep the whole structure in order. And even if you could, you couldn't see all the planning, discussion, communication, etc.

When you're watching a game in development, what you're going to see is a whole lot of nothing for a long time, and then suddenly it will seem as if there's a sudden flurry of activity close to the end as stuff finally starts to poke up above the water line.

Only a few of you were following us back in DQ1 pre-alpha days, and absolutely nobody was following us for the whole first year of its development. For most of you (especially post-Steam), DQ1 just arrived fully-formed without having to wait for anything. So, please understand that "visual progress" is a really terrible metric for actual progress.

With all that said, here's what we've go to show for ourselves so far.

Arts!

Karen Petrasko has been working on some new concept art! Here's what the inside of a domed city might look like (click for hi-res mockup):

http://www.defendersquest.com/2/content/media/concept_art/domecitymockup_02_hires.jpg

You can expect the same level of detail/visual fidelity in our battles, though I doubt very many will take place inside of a town. The above is more likely to be used in our in-engine cutscenes for when our characters are in a domed city.

And here's some random bits of concept art:


Top: Domed city exterior and interior Bottom: Emperor, soldiers, scavengers exploring the surface.

Here's a sketch of what our overworld map might look like:


And here's a new character we've been working on, who just goes by the name "Smug Captain" for now:




Dean Dodrill is still on board for this project, but he's had to take some time off to properly support/thagomize his last project, Dust: An Elysian Tail, and recover from a brutal, multi-year development slog. So we don't have any animations to show just yet, but we'll let you know when we do.

Musics!


Meanwhile, Kevin has been working on some of our first music tracks, which you can listen to here:

Defender's Quest 2 concept piece (mp3)
"Enemy City" WIP piece (mp3)
Untitled WIP piece (mp3)

Kevin wants me to SUPER EMPHASIZE that NONE OF THIS IS FINAL, it's all very early/rough work, and it will almost certainly change before the game hits final release.

Programmings!


We've made a lot of progress porting the Defender's Quest engine (known internally as the "TDRPG Engine") over to Haxe/OpenFL. I'm a big fan of open source development, so I'm releasing whatever bits I can as open source, under the MIT license. Since I started doing this, I've been officially accepted as a regular contributor to the HaxeFlixel project, and two of my libraries have been officially adopted into HaxeFlixel itself. The TDRPG engine itself remains private, but I like spinning off little bits of it wherever it makes sense to do so.

My most notable contributions include:
  1. flixel-ui: a GUI library made entirely of flixel-native widgets, so you can intermingle them with other flixel objects, rather than awkwardly overlay a UI pane over your flixel canvas. This started by porting over legacy DQ1 code, but has since been massively improved. It's also easy to integrate with firetongue, so automatically making buttons twice as big in German mode is easy!

    This is just a demo -- DQ2 will look much better
    Defender's Quest has an enormous amount of interface, so this and the battle engine represent the bulk of the coding work.
  2. flixel-editors: a set of editing tools for flixel. Right now it only has my "Animator" tool, but it should have more stuff soon enough.

    The Animator tool is not for building animations from scratch, but rather for previewing spritesheets in-engine, and building individual animation sets out of frame indeces. It also lets you set "sweet spots" to define where projectiles (for example) should originate in an attack animation, and various other features.

    It also comes with built-in support for re-coloring both pixel-based and "HD style" sprites. In the screenshot you can see an example of the latter -- I'm using a sprite from Glitch to test with for now while we work on getting more our own stuff ready.

    It's important for us to know what the basic limitations of our tech is so it also has the ability to run rudimentary stress tests. We'll need better benchmarks to really know where the boundaries are, but initial results seem promising, and way better than what DQ1 could handle:


    We plan on having a cutscene and level editor eventually, too. I haven't decided yet whether those should be open-source, too, but I'm leaning towards it.

    Why am I spending so much time with tools and stuff?

    50-75% of DQ1's development time was CONTENT CREATION, and LOTS of time was wasted manually processing/integrating content with bare-bones tools (text editors and photoshop, basically).
  3. firetongue: my localization framework. Originally ported from DQ1 code, but massively improved.
  4. flixel-demos: I didn't create this repository, which showcases various flixel features, but I did contribute these individual demos: cursor, heatmap pathfinding, blend modes, rpg interface, file browse (Note: file browse has to be compiled on native targets to see its full functionality). All of these demos are the result of me testing features we needed for DQ2.


For the rest of my stuff you can see my github profile or open source report card.

NOTE: this is open-source development, so all "my" stuff has received lots of bugfixes and improvements from the HaxeFlixel community, for which I am very grateful.

What's Next?

So there's still a lot of work to be done. I really need to dig into the new battle system engine, and story material is starting to mature. Then we can draw on that for a few story announcements, we can get art from that, get music from that, etc, and roll that all back into the design.

When will Alpha be? I hope to have something playable before the first half of the year is over, but no promises.

Other stuff we're looking into is whether it's worth it or not to plan for a console release. Now, there's no chance we'd be interested in from-scratch ports, so everything depends on us being able to get the Haxe/OpenFL stack working for those systems. In theory, it's possible, it's just a matter of building out the native targets. So far we've made some good progress using HTML5 (believe it or not) for the WiiU's Nintendo Web Framework, but what we'd really like is truly native support on everything, especially the 3DS and PS3/4. We're putting little feelers out and seeing if we can find the right people for this, because I sure as heck can't build it myself. So far we have some promising leads but we can't announce any of that just yet. Let's just say I'm not regretting switching to Haxe.


And in any case, our top priority is getting the game running on Windows/Mac/Linux. If -- and I do emphasize "IF" -- we release on console, we will make sure that is most certainly not at the expense of PC development.

The Stegosaurus Tail: when "The Long Tail" grows spikes.

You may have heard of "The Long Tail." For games, it means your sales start off strong and quickly taper off.  This force drives the retail marketing cycle -- launch a game to extreme hype, sell it like crazy, then immediately abandon it and move on to the next thing.

The Long Tail

Chris Anderson's book, The Long Tail: Why the Future of Business is Selling Less of More notes that given enough time, the "long tail" (the yellow part of the graph) can reach or exceed the size of the initial spike (the green part).
The green area (initial spike) and the yellow area (long tail) are equal in size.
Basically, if you reduce the cost of inventory and distribution, there's as much money to be made from selling an ocean of niche products by the drop as there is in selling big hits by the boatload. This strategy is at the heart of industry titans like Amazon, Netflix, and Steam.
Of course, that strategy is reserved for big content aggregators who make their money regardless of whether any specific product does well. But can individual developers take advantage of the long tail, too? Bennet Foddy thinks so: in his GDC Talk, Learning to QWOPerate, he talks about how he self-published many small games on his site and used them to cross-promote one another. Eventually he stacked up all the long tails and made sustainable advertising revenue.

The Stegosaurus Tail

 

A Stegasaurus' tail.

It's hard for me to take advantage of Foddy's method because I don't make lots of small games one
after another -- it would take me years to build up a back catalog at the level of polish and scope I'm used to.  So for now all I've got is one commercial title - Defender's Quest. And if all Defender's Quest's got was a Long Tail, I'd be screwed. Instead, it grew spikes and became a Stegosaurus Tail.
Chart of Defender's Quest's lifetime sales
That's a chart* of our lifetime daily sales revenue over nearly two years. The far left side of the curve resembles the "Long Tail" -- a large initial spike quickly tapering off. But even this spike is noisy - as noted in Defender's Quest: By the Numbers, part 1, sales initially spiked with press coverage, then again when our demo was featured on Kongregate and Newgrounds. We had a few more small spikes from our big, free, "Gold Edition" update, but nothing major until our launch on Steam and GOG -- which brings us to where where we were at in Defender's Quest: By the Numbers, part 2.

But after that, we had the Steam Linux Sale, various GOG promotions, and another huge surge when we launched our Steam Workshop support. Spike after spike, often several months apart.

*Parenthetical: why distort the stats?
In previous sales articles I gave detailed sales stats, including per-platform revenue breakdowns, but recent changes in the terms of service with some of our distribution partners forbid me from doing so again. The sales chart is thus intentionally fudged -- our real chart has the same overall shape but the exact daily sales are arbitrarily different.

The portal(s) said they changed the rules because they have to keep developers' sales data confidential. So, in theory we could publish detailed stats, but people on the internet are too good at math -- they can combine those stats with sales chart positions to estimate another developer's confidential figures, and portals are afraid to indirectly expose another developer's confidential sales stats. I *am* still allowed to publish total PC sales stats across all channels mixed together, but I'm choosing not to do so at this time.

Implications

I suspect most games on Steam and similar portals have stegosaurus-tail sales charts -- for instance, here's the sales chart for Garry's Mod:


But so what? How does this change the game?

Well, first of all...

Long-term support can actually pay off!

Under the Long Tail, the post-release sales strategy is to abandon your game. Give it just enough post-launch support while it's still selling strong, then move on to your next project.
We took a different approach. Instead of immediately moving on to Defender's Quest II we put a lot of time into bug-fixes, patches, and content updates. Our biggest patch, "Gold Edition," upgraded our art style added New Game+ mode, and lots more. This was a gamble, improving the game to catch Steam's attention, and fortunately, it paid off (this was before greenlight). From that point on we looked for every opportunity to turn a content update into an excuse for a partner to promote the game. Examples include the Steam Linux launch and our Steam Workshop sale - the latter being one of our largest spikes ever. We've also had a lot of success in getting promotions from GOG.com.
But before you go off and spend a lot of time and money on a content update, it's best to get your distribution partner to agree to a promotion ahead of time, in writing.
The next implication is...

Don't compete on price!

When Defender's Quest first launched, the full price was $7. When we launched the Gold Edition upgrade, we raised the price to $10, and finally settled at $15 after launching on Steam. However, the game's full price is essentially a fiction -- you can see from the chart (and our previous articles) that pretty much all the revenue comes during promotional periods when the game is on sale. The full price is therefore just how much room you're giving yourself to go down during promotions.
Accordingly, here's an interesting stat - while the full price has increased over time, the average price per purchase has remained about the same. All that's really changed is how deep we can make our discounts. In a perfect world I'd just keep the same medium price all the time, but that's just not how human psychology works.
Developers often worry that players will complain about a higher price, but it's important to remember those players can always trade money-dollars for time-dollars by waiting for a sale. (You can see this process play out in this thread on our steam forum).

But temporary discounts won't do much by themselves - you also need...

Promotion!

"Sell your game for less and make up for it in volume" says conventional wisdom, but this only works if you can actually count on that volume to actually show up and notice that your game's on sale. The persuasive power of the promotion drives the sale, not the mere fact that it's discounted. For instance, Democracy 3 was Positech's fastest-selling game ever, even though it released at full price without the customary launch discount. Promotion drove those sales, not pricing.

Ever heard of Monroe's Motivated Sequence? It's a rhetorical structure from Communication theory, and if you've ever watched an infomercial you'll recognize it: attention --> need --> satisfaction --> visualization --> call-to-action. In other words, basic salesmanship. Take it away, Rhett & Link:


Video game sales promotions, be they Steam Sales, GOG Sales, Humble Bundles, etc, loosely follow this structure. They get your attention, show off cool games you've been waiting to play, give you lots of visuals, info, demos, and a ticking clock that presses you to act now!

This is nothing new - department and grocery stores have been doing this since the late Cretaceous, and I'm surprised it's taken the games industry this long to evolve beyond the "launch at Full Price, then chuck it in the Bargain Bin" cycle I grew up with. Promotions give games a second wind.
I define a promotion as strong consumer attention combined with a strong call-to-action. It's not just any attention. For instance, new developers often think exposure from a great review will make them rich, but I can say from experience it won't. Some articles have given us modest sales spikes, sure, but just as often we've had glowing write-ups that didn't even move the needle.  And that's fine -- critical acclaim and financial success have never been joined at the hip, nor should they be. But if you're looking for raw sales, it's promotions you want. And the best promotions are front-page attention from a major distributor.
So, if you're looking to add spikes to your stegosaurus tail...

Get real friendly with your distributors!

Ideally, the relationship between developer and distributor is symbiotic -- the distributor gets a cut of your revenue, you get access to their audience, players get awesome games at great prices, and everybody wins -- ideally. This assumes that your distributor is benevolent, or as Daniel Cook would say, in the "Engage" phase of the Game of Platform Power (more on this later).

But even if your distributor is on the side of the angels, it's still easy to get lost in their roster of other developers. "The squeaky wheel get the grease," as the saying goes -- if you don't ask for a promotion, you won't get it, and the only one advocating for your game is you. We talk to our distributors every time we start working on a content update, and we check in weeks or months ahead of every seasonal sale to make sure they don't forget us. Also, we frequently volunteer whenever our distributors roll out a new feature or promotional campaign.
And as long as our interests align, I'm happy to do little favors here and there. For instance, I'm a big fan of GOG.com, so I've done several promos for them to help them reach out to other indie game developers. Another example is Kongregate, who promoted our game when we added an in-game incentive for anonymous users to sign up for Kongregate accounts. Now, I'm not advocating for being a corporate sell-out or an amoral shill ready to do every horrible thing in the book just to get revenues. I'm just saying that in ideal circumstances, your distributor relationship is a true partnership -- you help them, they help you, and everybody wins.

All that said, it's important to remain vigilant because even the nicest portal today could turn to the dark side tomorrow, or the "Extract Phase," as Dan C. would put it. It happened with Big Fish Games in the casual market when they slashed developer revenue share, it happened with Apple and Facebook, and it tends to happen with console generations once they start to mature. The thing to look out for is "Rent-Seeking Behavior." Now, as above-board and transparent as companies like Valve are, nobody knows the future. Gabe Newell could always get struck by lightning, and an evil hedge fund could seize control of Valve and clean house. Wills can be and often are flagrantly ignored if the estate is valuable enough. As Moxie Marlinspike would say, it's not about trust, it's about trust agility.
So those are a few ways the Stegosaurus Tail phenomenon changes the post-release game plan. But if you look closely at history, Steggy has been with us all along.

The Stegosaurus Tail's Legacy

Some game companies have already been "riding the dinosaur" for decades, most notably Nintendo. Back in the 90's when other publishers would routinely consign their back-catalogs to obscurity as soon as their games were off store shelves, Nintendo never stopped coming up with new ways to re-sell us classics like Mario, Zelda, and Metroid.
GOG.com has been doing the same thing with classic PC games for years -- taking old abandonware gems, polishing them up, and giving them a new lease on life. Major publishers have since joined in and even Steam has joined the party, most notably with System Shock 2.
What's really cool, though, is Steggy's power to re-write history. Double Fine's Psychonauts was a critical classic but a financial flop, until it was re-released on PC many years later and finally got its chance to shine in the light of Steam Sales and Humble Bundles.
What works for the big boys can also work for us small developers -- if you're able to release multiple games, you can use them to drive interest in one another, giving your back catalog a kick every time you come out with something new. For instance, Zeboyd games sells Breath of Death VII and Cthulhu Saves the World as a double-pack, and included these and other games of theirs as backer rewards for Cosmic Star Heroine's Kickstarter campaign.

We've been doing the same thing -- Defender's Quest 1 now comes free with every pre-order of Defender's Quest 2, and we've updated the original game with a free in-game item for those who visit the Defender's Quest 2 page. Since we added that feature, not only do DefQ2 preorders closely track DefQ1 sales, daily DefQ2 preorder revenue exceeds daily DefQ1 sales revenue.

We still have a few tricks up our sleeve to add a few final spikes to our tail. When we first launched, nearly all of our direct revenue was driven by referral traffic from our web demo hosted on Kongregate and Newgrounds, so we're in touch with both of those sites about future promotions. Also, we'll soon be launching a Japanese translation as part of our new partnership with Playism, distributors of awesome Japanese indie games like La-Mulana and One-Way Heroics, and a German translation should go out any day now.

The Uncertain Future

There's some downside to maintaining a Stegosaurus Tail -- it's hard, boring, work. What I love doing best is making games, and although every new spike I successfully chase down feeds my family and keeps my career afloat, it also distracts me from pouring my soul into my next project. After over a year of nurturing her, Steggy's starting to wear me out.

And before I close, I want to note that no single strategy works for everyone, nor does it work forever. Much has changed since Defender's Quest first launched -- back then, Steam was hard to get into, but easy to get noticed on. Today, with indie games literally being greenlit by the hundreds, it looks like the future will be the reverse. Maybe Steam will follow my predictions and solve discoverability in a way that's both sane and equitable, but that's far from certain. Furthermore, the long-term effects of Steam-style promotions is unknown. With players building up huge backlogs, will they keep buying new games like they used to?

With the ground shifting underneath us, and amidst all this talk of an "Indie Bubble," I think it's best to double down on the fundamentals -- sell direct, know your audience, make sure they know you, diversify your sales channels, and if you've got a back catalog, milk it for all it's worth.
The last lesson I've learned is this -- a great game is not disposable. Just like a little kid watching Star Wars for the first time, someone out there is waiting for your awesome game to captivate them, they just don't know it yet.

Free 2 Play and the Four Currencies

One of my most popular articles was "Piracy and the Four Currencies", which explains the economics of piracy in terms of four "psychological currencies": money-dollars ($M), time-dollars ($T), pain-in-the-butt dollars ($P) and integrity-dollars ($I). Purchases don't just cost money; they also cost different amounts of time, pain-in-the butt, and (sometimes) moral integrity.



Quick Summary

In the article, I argue that piracy, though it costs 0 $M, has a non-zero $T, $P, and $I cost, because the pirate must know where to search, risk exposure to malware, and do something illegal (which has a variable $I cost depending on one's outlook). Developers can compete with piracy by removing invasive DRM and practicing good customer service, which lowers $T and $P costs.  How much weight an individual gives to each currency varies widely.  For example, a wealthy person may value convenience over money, a busy person may value time the most, and someone with strong convictions might refuse to compromise their beliefs ("spending" $I*) for money's sake alone.

*Exactly what $I represents varies with ideology.  For example, Richard Stallman would put a large $I cost on using proprietary software, whereas I do not, and strict vegetarians might assign an $I cost to fur coats.


Free 2 Play

Now, let's apply the  four currency model to Free 2 Play games.

F2P is clearly here to stay.  It's seen big success with Angry Birds, Team Fortress 2, and given a new lease on life to MMO's that aren't World of Warcraft.  However, we've also just witnessed the spectacular implosion of F2P standard-bearer Zynga, and seen article after article about popular, critically-acclaimed F2P games that garner little revenue.

The debate is heated, so let's step back, put down our pitchforks (on both sides), and see what's going on.

Analysis

First of all, F2P competes well with piracy, because the barrier to entry couldn't be any lower.  Downloading an F2P game costs no $M, little $T, no $P, and no $I (for those who feel guilty about piracy).


Though FTP has no $M cost, it inserts $T and $P costs throughout the game to encourage players to pay $M instead.  This is the opposite of a traditional game, where there is no extra $T, $P, or $M cost once you've bought the game (invasive DRM, DLC, and bad design notwithstanding).

According to some best practices of F2P design, developers should intentionally inject inconvenience into games, which players can remove in exchange for money.  This means barriers, time sinks, and "dual-currency" systems where players can pay real money for rewards, or grind for hours instead.


In this way, traditional games are like laser printers: expensive to buy, cheap and easy to operate.  F2P games are like ink jets: cheap to buy, but expensive and sometimes a pain to operate, especially if the company has questionable business tactics.

On the one hand, F2P gives players options. Lots of people have no money but plenty of time and/or plenty of pain-in-the-butt tolerance.  Furthermore, it enables players to purchase things "a-la-carte," in case there are only certain aspects of the game they really want.  These are good things.

On the other hand, F2P adds inconveniences and compromises the "magic circle" by constantly asking the player for money.  These practices are why some designers call F2P "evil," and not just because they're luddites* who are afraid of change, as some have implied.  If anything, F2P is a return to the past as much as it is a step towards the future.  We've been here before, and it's called The Arcade.

Despite my reservations and general grumpiness, I do think F2P can drive great things - you only have to look at Team Fortress 2, League of Legends, and Triple Town to see that.  But it still deserves a critical eye.

*As an aside, the historical Luddites have been grossly misrepresented by industrialist propaganda and (incorrect) associations with religious fundamentalism.  I highly recommend the book Rebels Against the Future by Kirkpatrick Sale for an alternative viewpoint.

When (and why) F2P Fails

Let's look at some F2P games that have failed and see if the four currencies can tell us why.

The developers of Punch Quest and MonkeyDrums have suggested that their games failed because they were too nice - i.e., they embraced F2P but still hung onto the idea that they could "delight" their customers into paying more for the experience.  I feel for these teams and applaud their willingness to be so open with such a painful experience, so let's see if we can learn from it.

As I mentioned in Pay What You Want and the Four Currencies, the simple act of making something free removes the $I cost of not paying.  This is why donationware doesn't work - nobody pays because you gave them permission not to.  By making too much content easily accessible or free, customers feel no obligation to pay.  If you ask for the sale, however, there's a good chance you'll get them to pay, especially if there's a free sample.


Traditional game design has trained us to maximize the value we are giving players for their money, charge them once for it, and call it a day.  F2P requires an entirely new perspective that doesn't focus on delivering all the goodies in one big package.  It seems these developers had a hard time choosing between F2P and traditional design.  So, let's take a quick look at tradition.

The Evolving "Traditional" Model

In the past, video games were sold in retail stores as packaged goods that you bought sight-unseen. Retail is certainly on the decline, but those who use this fact to decry up-front pricing* are attacking a straw man. "Progress" doesn't happen in only one direction, and the traditional model has been evolving right along with the others.

*In fairness to Dan, he's right that charging 99 cents for all of TripleTown would be insane, and I'm largely a fan of his approach to F2P design.  That said, I can think of more than just a few indie developers who use the up-front pricing model without relying on mega-hits to succeed.


Traditioooooon!

We'll use ourselves as an example of the "neo-traditional*" model. With Defender's Quest, we relied on a lengthy, compelling, browser-based demo to drive sales. This allowed us to make good revenue without the benefit of major portals like GOG and Steam, although we were eventually able to attract their attention. We  survived by selling directly from our own site and free Flash portals like Kongregate, where we leveraged their microtransaction engine to sell an online version of the game.

*We seriously need a better name than that.

Furthermore, although the price is up-front, it's by no means "fixed." We started at $6.99 when we launched in January but made so many coupons available that anyone paying attention could nab it for $4.99.  Meanwhile, we handed out free promotional codes left and right.

We eventually raised the price to $14.99 for the gold edition launch but started with a "launch sale" of $9.99 through the first week on Steam.  And as everybody knows, Steam and GOG are fond of periodic sales with deep discounts, and we will be participating in every event they invite us to. Furthermore, we have some crazy plans of our own, so stick around for our one-year anniversary next October 30th.  Because players know that games often go on sale, they can exchange $M for $T by waiting for a price drop.

The ability to sell a game year-round, at variable prices, while keeping the majority of the revenue is a far cry from the old days of having a one-month shelf-life in a retail store and collecting a few percentage points in royalties - if you were lucky. That's the old traditional model, and I'm happy it's dying.

However, the advantage of the new traditional model is that it gets the financial exchange out of the way up front, which lets developers focus solely on game play rather than a string of tiny sales pitches. Furthermore, it avoids fracturing the game's shared cultural experience into low and high-paying tiers.  I realize that the traditional model has the potential for a smaller player base and lost income from "true fans" and whales, but I have some ideas about that and, more importantly, have no doubt that the model will continue to evolve to meet these challenges.

Finally, and I think most importantly, the traditional model and F2P have much to learn from each other. They are points on a spectrum rather than fixed binary alternatives.  The "neo-traditional" model incorporates many aspects of both, but takes it in a different direction than a typical iPhone game or console title for sale at GameStop.

Summing up F2P

F2P brings with it new opportunities, audiences, and markets, but it's not magic. Simply put, instead of front-loading the $M cost, it sprinkles alternative $P and $T costs throughout the experience as inducements to make you pay $M.

F2P pros:

  • Raises the ceiling on how much a single player can spend
  • Lowers the barrier to entry almost entirely
  • Opens up new genres and embraces new audiences


F2P cons:

  • Not a good fit for many genres (especially those focused on narrative)
  • Injects financial motivations directly into the game
    • Annoys players
    • Can corrupt the design (c.f. Zynga)


Closing Thoughts

Furthermore, those obsessed with growth* as the sole metric of the industry's sector-by-sector health should be slapped with a large, wet trout.  Facebook, mobile, and other once-emerging trends are obviously here to stay, but reports about the traditional industry's decline have been greatly exaggerated, especially because NPD results are grossly misleading.  And contrary to popular wisdom, the explosive growth of mobile has not doomed Nintendo's handheld market, though I can't say the same for the PSVita.



Retail sales of console games do seem to be on the decline, but the slowdown in PC sales should not be taken as an indication that PC software developers are in trouble. For example, eventually you get to the point where everyone who wants a car has one, so although it's harder to sell new ones, more cars are being driven than ever before.  Similarly, sales of new PC's have peaked because they are powerful enough, and, with a little maintenance, a decent rig can last you the better part of a decade. This is bad news for people like Dell who need to push hardware, but for those of us who just make games that run on the dang things, times couldn't be better.

Mobile platforms will eventually reach their saturation point, too, and then the pundits will start shouting that mobile is dead, and eyePhones are the Next Big Thing.

So do yourself a favor; play a great Free2Play game or two. Then play some great traditional games by friendly indie developers. Then slap a pundit with a fish.

*Second side note: the single-minded focus on "growth" is a major fallacy of modern economic thought. See Tim Jackson's Prosperity Without Growth for an alternative viewpoint. 

Watch CNBC and take a shot every time a pundit says "growth."

Indie RPG's on sale TODAY

So, the Because we May sale just launched today, and about 180 or so games are participating.

I'd like to direct your attention to a select few of those that might pique your interest.

Indie RPG's!


Of course, you should definitely check out our own game - Defender's Quest, which is available during the sale for the low, low price of just $2.99 - your best opportunity to get the game and your right to free updates before our upcoming "Gold Edition" expansion is released.

The Indie RPG crowd is pretty tight-knit. There's not all that many of us, and so we like to help each other out.  Robert Boyd and Jay Barnson were kind enough to write about us when we first got started, and today I'd like to return the favor and "pay it forward" as it were, to other amazing Indie RPG's out there that need some love. Also since you liked our game, you just might like some of these, too.

No one's paying us anything to list these (I generally hate ads and won't accept them on this blog) - all of these are here because I find the game interesting and would like to pass on the news to you :) 

Also, you won't find this many low prices on Indie RPG's all in one place for quite some time!

To help you make up your mind, I've collected two reviews for each game.

 $9.95 (was $22.95)
Reviewed by: IndieRPGs, RPGWatch

$14.95 (was $24.95)


$4.99 (was $20.00)
Reviewed by: GameSpot, Zeboyd Games

$3.99 (was $6.99)
Reviewed by: TouchArcade, Gamezebo

$2.00 (was $5.00)
Reviewed by: TruePCGaming, IndieGameMag

$1.49 (was $2.99)
Reviewed by: IGN, Rock, Paper, Shotgun

Dungeons of Dredmor
$2.49 (was $4.99)
Reviewed by: IGN, Bit-Gamer

I think that's enough for now :) I might add more to the list as the week goes on. Be sure to spread the word to all your friends and enjoy all these awesome games!

(To the developers: the images above are hotlinked directly from your sites because that was the easiest thing I could throw together in 5 minutes, and I figured you wouldn't mind since I'm promoting your game. If it's a problem, just let me know in the comments or shoot me an email and I will take the time to download the image to my own server to save you the bandwidth).

Details on upcoming GOLD version

EDIT:
For everyone who's been asking, YES! If you have bought any version of the game so far, you will most definitely receive the GOLD edition as a FREE udpate. With Level Up Labs "Free Updates" does indeed mean free updates :)

Hey Defender's Quest fans!

Monday is when we will normally issue updates, if we have any ready. We don't have one this week because I've been busy working on gold features, which will be held back until they're all done and then released all at once.  When we do have udpates, though, rest assured, you'll see them on Monday :)

Also, Anthony's at GDC all week so it's just me and James holding the fort, so it might take a little longer to answer emails / respond to forum posts, etc.

So, with that all being said, let me tell you guys what we've been up to lately! Announcing...

Defender's Quest GOLD EDITION

Gold edition will be version 1.0 of the game, but we haven't definitively and clearly stated what will and won't be in the game.

Now that development is well under way, here's what we can commit to:

New Art!
Yes, we're giving the game a major face-lift! We're keeping the character designs mostly the same, but we're putting in all new backgrounds, new sprite animations, and depending on time and budget might overhaul  the UI and some other elements as well.

For digital painting stuff, we've hired the amazingly talented Karen Petrasko, who's worked for  Amaranth Games, PassionFruit Games, Wadjet Eye Games, Gamenauts, and others.


Here's the new title screen she did for us:


Here's another quick tease - the new "golden man enthroned" background:



We'll share some more art in the future as we get it done :) We also have some sprite artists, too, but we'll share more details on that once we get some stuff done at that front.

Note for those with art-style grumps:
If you're incredibly attached to our old art style for some reason, we'll consider an option to switch between the styles. This will require us to switch the way we load assets to the game, so we'll only do it if we have time, it's technically feasible, and enough people really, really want it.  Unlike last time, we will have two complete sets of art , so it's at least possible this go-round.

This would add the native ability to mod the art style for the game, so it'd have other uses as well, but we've got a ton on our plate already, so unless there's a lot of demand please understand that though it's doable, it's a bit low on our priority list.

More End-Game Bonus Battles
We'll be including more bonus battles for sure.  Right now we're leaning towards most of these being "epic" battles, ie, a fixed-wave challenge, such as 50 or 100 waves, with one or more "endless" challenges as the very last ones, so there's a natural progression to the list.  Haven't decided for sure yet, but basically - more bonus battles!

Doing Something With Unique Equipment
You'll notice you can't sell any of your unique equipment.  This is because we're doing something with it in Gold edition - we're not sure just what yet, though!  Basically, I want there to be some mechanism for upgrading these items into "super" versions that are viable end-game choices. What exactly that means though is still TBD.


New Game PLUS
A common feature in JRPG's is a "New Game+" mode where you can start a new game using the data from a save slot that's already beaten the game, and experience some new features.  Chrono Trigger famously did this, letting you retain all your experience and equipment to blaze through the game and experience some secret endings.

In Defender's Quest, all you have to do to enable NG+ mode is beat the game. Any challenge level will do, so even if you only eke by with blue stars on casual mode, you'll still get there.

When you beat the game, your save slot will look like this*:


After you've started a New Game+, it will look like this:

*Just a design mockup. Final look will depend on the new UI and sprite styling.


"Play" will take you to your normal save slot.  "Play+" will take you to your New Game+.  The data for NG+ works under a "two-slots in one" model.

Your party data is shared between the two worlds.  All levels, xp, equipment, scrap, skills, etc, gained in one will be exactly the same in the other.  Your map and battle progress in each world, however, is tracked separately.  Since party data is shared, when you start a NG+, Azra starts out at full strength with all her xp, levels, and spells.  You start with an empty party but whenever you encounter each hero, like Slak, Ketta, etc, that character class is unlocked in NG+ mode, and you'll now see all of your recruits from that class at their old powered-up strength with all their equipment and skills.

All of the battles will be given a face-lift for NG+ that raises the challenge.  We could have just bumped everything up by X levels, but that sounds boring.  However, creating new content for each and every challenge would be way too much work.  What we're doing instead is creating new monster types that only show up in NG+ mode, and creating a global replacement rule across the game.

That means, every monster in normal mode will have a corresponding "alternate" version in NG+, kind of like how in the original Super Mario Bros' "second quest" the turtles were replaced with fireproof buzzy beetles, which in turn were replaced by unstompable spikeys.  We'll also apply a global monster level bump of some sort, and that will be how we generate the new battle content for NG+.  Hopefully that will be a good amount of new and interesting content without too much extra work.

These new monster types will have new and interesting behaviors, not just rehashes of stats and existing abilities. What exactly those will be is still a secret, though :)

For boss battles we might manually hand-craft the NG+ versions of those, we haven't decided yet.  Battle rewards will probably be new, and there'll most likely be a new set of non-unique items in the game so you still have stuff to spend money on.

New Game+ will also raise the level cap, for obvious reasons :)

The next thing about New Game+ mode is that it will include some other special features. Namely...

Side Quests

We've identified natural places to insert new missions that run perpendicular to the normal story arc. These will inject a bit more story and gameplay content and generally add spice.  These battles will be special and do things like restrict which classes you can use and a few other surprises so they're not just "more battles" (because we already have lots of that with NG+)

So, first off - why are Side Quests only in NG+ mode? Why not also in normal mode? A few reasons:

  1. Most of you have already beaten the normal game
    If we include sidequests in the normal quest, there's little point in playing them in the normal mode as you'll be way over-leveled.
  2. We like the "core" story experience of normal mode
    Side quests tend to slow games down.  We feel normal mode has really good pacing and a driving central motivation pushing things forward.  We feel that in normal mode, the sidequests would be distracting to new players, but in NG+ where you've seen the old stuff already, these will be a nice new treat.
  3. If it ain't broken...
    We've got a good thing going with normal mode, so in the unlikely event sidequests totally destroy the narrative, it only affects a special bonus mode and doesn't tarnish first impressions of the game.

These sidequests will reveal a little bit more of the backstory of Defender's Quest and also give us more chances for individual characterization, as well as cool new battle set-pieces. The next feature is related to this end...

Azra's Journal

Being a Librarian, Azra has been writing down her experience in the Pit.  In NG+ mode a prominent "Journal" button will be added to the UI which lets you read her thoughts:


New Journal entries will be added as you progress through the game, documenting Azra's observations and generally fleshing out the experience through details, notes, and sketches.  We're going to try to nail that "British Naturalist in the Galapagos" vibe.

So, what's the point of the journal? And why is it only in NG+?
  1. Gives our writer something to do
    Most of the NG+ features are art and programming heavy, but this will keep James busy and will hopefully provide some content that people who love story will really be able to dig into.
  2. Provide NG+ story rewards
    In normal mode, before and after every battle you get a little cutscene, which is a great little reward.  In NG+, you've seen all the cutscenes already (and yes, we'll add an option to auto-skip cutscenes) so the reward is diminished.  This should provide a new story reward for those who are into that.
  3. PacingThe Journal is available only in NG+ mode for pacing reasons, again.  In normal mode, I would be afraid people would feel obligated to click on it every time it shows a new entry, and since normal mode has so many cutscenes already it'd be in serious danger of slowing the player down.
We might use the journal to provide basic info-dumps on in-game things, like an enemy bestiary, for example.  If we do that, we'd probably make those basic functions available in normal mode, but keep the extra story entries as exclusives for NG+.

So, those are some things we can formally announce for Defender's Quest Gold edition!

One last thing, because some people have asked?

Why Gold Edition? Why not a sequel?

Some people have asked why we're bothering with such a big update to the game rather than focusing on immediately doing a sequel. Some have mentioned that the updates might be of only marginal value in attracting new sales and that our time would be better spent making an all-new game for our existing fanbase.

There's several reasons we're doing GOLD edition:
  1. This is the game we want to make
    This is the definitive version of Defender's Quest, and we would have finished it to this degree if we could have afforded to, but we had to release early to survive. Now that we're doing pretty good, we can afford to roll out these bonuses and make the game we're happy with.
  2. We really want to get picked up by Steam/HIB, etcWe've submitted to Steam and the Humble Indie Bundle, but haven't heard back from either.  These added bonus features - in particular the new art style - will give us a better chance of being noticed. If we get picked up by either we could likely expand our audience by 10x at least.
  3. We want to put our best foot forward for Desura/Impulse/GamersGate/IndieVania/etc
    Regardless of whether Steam/HIB come knocking, we're going to launch on the other big digital distribution portals, and we want to polish up the game a bit before then so that we can really drive sales on first impressions.
  4. Attract another round of press attention
    Releasing a big update will hopefully get us some more reviews. By responding to all the criticisms we've seen so far, hopefully the next round of articles will be even better :)
Oh right, I forgot one last thing:

RELEASE DATE : When it's done.

We slipped on our original release date for early release, and we're not making that mistake twice. Our honest estimate is something like a month or two, but who knows.  Could be longer, could be shorter. 

We'll keep you posted.

-Lars out.