I’ve written before about how value chain barriers are dropping, enabling a more product to reach consumers than ever before.  While a boon for consumers (setting aside for the moment the noise/discovery problem), this is a challenge for content creators:  more product means more competition, driving down prices and unit sales.  So the value of content is falling.

But it’s also rising.  Lower barriers make it feasible to bring niche products to market that couldn’t be justified in the past.  And consumers will pay extraordinary amounts for products that address a niche they find compelling.  The evidence for this is all around us, from low budget CCGs (e.g. the now defunct Warstorm) to high budget strategy games (e.g. League of Legends), and it’s been happening for years.

We’re talking about products that generate $50 – $100 per paying user.  Per month.  Do the math and ask yourself how small a niche you can serve and what it will cost to build the product.  You don’t need to spend millions like League of Legends, or even hundreds of thousands like Warstorm.  There are countless underserved niches out there just begging for a product.

I have this theory that consumers are more willing to try unknown and experimental products because they’ve spent the last fifteen years being inundated with email links encouraging them to check out funny videos, shocking pictures, political or religious rants, or whatever.  We’ve been receiving these links for so long that they’re no longer novel or nuisance — they’re part of the very fabric of things.

Since each of these links comes with an implicit recommendation from a friend to take a look — you got it via email, after all (or Facebook and Twitter these days) – it reduces security fears and compels you to proceed.  But you really have no idea what you’re about to encounter.   I believe the sheer volume and variety has broken down resistance to trying new things and set a low bar for results.  You expect it’s probably bad, but you’re willing to try it anyway because it’s new and fresh.

That’s huge for indie games.  Let’s face it:  most of them are crap.  But in a world where folks are at least willing to take a quick look anyway, these games are given a small chance to reach their potential.  Hidden gems are no longer completely buried for lack of attention, and even if the game is bad, consumers are not being turned off to the whole notion of indie games.

Of course, the causal link could be weak and there may be some other underlying factor (e.g. the internet has reduced the friction to communicate with others substantially, and the quantity of content itself has boomed thanks to new tools and technology;  either of those may be a sufficient explanation by themselves).  But it’s worth considering that, as much as the internet has balkanized different groups around specific subjects or opinions, people seem remarkably open to trying new things.

I’ve been posting a lot of recently about value creation in games.  Most of my attention has been on the engagement side of this equation, but for today’s post I’d like to talk about the relationship between friction reduction and engagement.

First, friction reduction (a.k.a. accessibility) is not in an inverse relationship with engagement.  In fact, they’re highly complementary, since advances in friction reduction reduce the barrier to entry, increasing the viability of more experimental products.

Second, I’d argue there’s been an amazing amount of innovation on the friction side the past 20 years.  So much that there’s been little incentive to innovate on the engagement side.  I’m not saying engagement innovation has slowed – it has probably increased as well, just not at the same pace as advancements in friction reduction.  But when reducing friction is improving product value so dramatically, why bother taking any risks in engagement?

Looking for evidence?  I give you the last decade’s increase in cloning as exhibit A.  The friction reduction benefits are so strong that companies won’t even risk changing the numerical values in the game (see the Yeti Town clone of Triple Town).

I expect this is cyclical.  Friction reduction will eventually run out of steam in our current ecosystem and likely commoditize to the point where it’s simply not a differentiating factor, at which point more attention will shift back to engagement innovation.  But in the meantime I think the engagement piece is underserved, and there’s an opportunity there.

I do have some concern that over the long haul we, as an industry, will lose some of our expertise in engagement innovation if an entire generation of game designers grows up in a world based largely on friction innovation.  We’re not there yet, but I find it striking how many folks don’t know there difference between the two.

This is part two of the four part series on value creation in games. Part 1: Value Creation in Games; Part 2:Engagement and Content Volume; Part 3:Engagement and Personalization; Part 4: The Game Engagement Landscape.

In my last post I talked about how value creation in games falls into two large buckets:  access and engagement.  This time I want to focus on the engagement portion, and more specifically, how we increase it.  I’ll give the usual disclaimer about how there’s many ways to slice this, but in my view there are two ways to increase engagement:

• Increase the volume of content
• Increase the personal meaning of content

Increasing the volume of content – the sheer amount of it that can be consumed – increases the possibility space and therefore the likelihood that the consumer will find something that engages them.  That may evolve over time – i.e. initial bits of content may grow dull but, due to the large amount available, new bits are available that may extend interest.

Increasing personalization reduces the possibility space in a way that’s meaningful to the individual player.  It does not reduce the possibility space for the game’s audience as a whole.  Think of it as the percentage of interactions an individual has in the game (relative to the total interactions they have) that are interesting to them.  What’s interesting to one user may not be interesting to another, of course.

In general we use three methods to increase the volume of content:

• Author a lot
• Re-use content
• Emergence

Authoring can come from developers or consumers.  In the hands of skilled developers the content is often extremely well-made and balanced, and difficult to pattern match.  But it runs out quickly, a lot goes unused, it doesn’t adapt well to varied player interests, and it’s expensive and economically hard to sustain except at very high sales volumes.

Letting consumers author the content (i.e. UGC, or what I like to call the infinite monkeys solution) generates an almost unlimited supply and the cost of creation is very cheap.  But it has its own challenges, including a terrible signal-to-noise ratio, difficulty maintaining cohesion and consistency with the overall product, and a dependency on some level of creative or technical expertise to generate interesting content (the burden of creation, at least for some portion of the audience).

Another alternative is to simply re-use content.  Far less expensive than developer authoring, it’s also relatively easy to balance.  For example, we might use meta-structures like high scores, scenarios or levels, difficulty settings, quests and so forth to package what is essentially the same core game loop in a larger play mechanic.  That can generate more long term interest and extend play, but it doesn’t actually solve the pattern matching problem since the core game loop remains the same (potentially leading to boredom fairly quickly).  Procedural content generation is another variation on this theme but tends to produce undifferentiated content.

That leads us to emergence.  In emergent play, core components are recombined to produce novel new play dynamics (in the MDA sense).  In the mid-90s, the colleagues at my first company often mocked my constant preaching about “complex combinations of simple, distinct elements”.  Emergence might occur at the systems level, or it might come from adding other people to the game (but not necessarily friends).  As with simply re-using content, emergence is inexpensive.  And it’s hard to pattern match, making it difficult for players to optimize play and get bored.  But it’s terribly difficult to balance.

Next time I’ll talk about the personalization side.

This is part one of the four part series on value creation in games. Part 1: Value Creation in Games; Part 2:Engagement and Content Volume; Part 3:Engagement and Personalization; Part 4: The Game Engagement Landscape.

I’ve been stewing a lot lately on how we create value in the games industry.  Given that there’s no explicit utility case to be made for our products, everything we do appears to fall into two buckets:

• Increasing Access
• Increasing Engagement

Increasing access is about friction reduction.  The electronic game value chain is filled with friction – everything from problems of discovery and delivery of product to basic commerce issues (payment types, price points and whatnot).  Even existence has friction when you consider the barriers to creation:  technical expertise, difficult of the platform, access to tools and development resources, and so forth.  Within the game itself, simply the demands of play – learning curve, short and long term time commitments – create friction for the user.

Reducing friction can often enable otherwise average titles to succeed.  A great example of this was consumer reaction to mobile games before the iPhone came along (2002 – 2006).  Multiple studies (from the tail end of that era) showed consumers reaching for their phones to play games in their homes despite the presence of superior products on consoles, handhelds and computers.

On the other hand, increasing engagement is about creating desire.  No matter how much friction we eliminate from the system, there still needs to be something on the other end that engages a consumer’s attention and pulls them to the product.  In fact, just as low friction can enable weakly engaging products, strong engagement can overcome absolutely ludicrous frictions (witness Minecraft).  It’s stating the obvious, but as long as engagement exceeds friction, you’ve got your customer.

Both methods of value creation are key to a successful product, but it’s important to understand the difference.  Early entrants to a new market segment might succeed by making mediocre products highly accessible, only to fail in the long haul if they don’t know how to increase the engagement side (or more telling, recognize the importance of doing so).