Ron Carmel on Microsoft

By: Derek Yu

On: August 14th, 2008

2d Boys

2d Boy‘s Ron Carmel (pictured at right with Kyle Gabler) wrote a great opinion piece on Microsoft and Xbox last month, titled “”http://www.gamasutra.com/php-bin/news_index.php?story=19620">What Microsoft Needs To Change To Satisfy Indies." In it, he tackles the controversial terms of Microsoft’s Xbox Live Community Games service, like the 10-30% royalty cut Microsoft can take (without asking), should they choose to help you promote the game. At the end, Ron encourages devs to seek out channels that offer better terms, more straightforward policies, and higher royalty rates.

The one thing I would have liked to see in the article is a quick breakdown of all the other platforms he mentioned: WiiWare, PSN, Steam, and Greenhouse (2d Boy’s World of Goo is currently being developed for PC and Wii). But otherwise, it’s a great read for anyone interested in these services. There’s some interesting discussion in the comments, too.

Also, as counterpoint, here’s an interview with Microsoft’s Boyd Multerer, published shortly after Ron’s piece came out. It obviously paints XBCG in a more favorable light.

  • haowan

    Damn, that’s bleak – I’d say 70% of revenue is a great deal and you won’t get anywhere near that any place else unless you sell it yourself… i can’t speak for wiiware but definitely for psn and xbla that’s true. And the 10-30% extra cut for extra advertising is gonna guarantee a massive sales bump so i’d imagine it was well worth it.

    It’s not ideal, and won’t ever be, but I reckon it’s getting there as a content service. They’ve addressed most of my concerns with XBLA in the XLCG thing, honestly. Easily the most accessible service planned.

  • Hmm…

    I’d have to agree with Ron on all his points, but I’d also take the argument a little further with the risk of sounding ticked off at Microsoft and their policies and practices… probably because I am.

    This is bull, Microsoft need not take an extra cut from Indie Developers. They’re charging a lease or rental fee for using their so called “services” which is a service that is already paid for by the Xbox Live Community and already exists in a state of it’s own much like the entire internet. I, along with hundreds of thousands of other gamers, check the XBLA Marketplace each week to see the new releases. The so-called advertising and marketing that Microsoft says they will provide for these extra cuts are ridiculous when these games are actually advertising XBOX LIVE. Microsoft would have developers convinced that they are “doing YOU the favor”. I think (and everyone should agree, though you likely won’t because some of you just aren’t savvy) that 10% – 15% of a cut is more than enough for Microsoft (it’s also fair) considering their really is no extra work involved besides certification (on Microsofts part) which in itself is a joke. The certification process obviously (OBVIOUSLY) does not guarantee quality in the product as we’ve all witnessed and seen time and again. There are some very good games and some very terrible games on XBLA. All these cuts represent are Microsofts unwillingness to actually “work with” and “support” developers, especially Independent Developers. I think that’s partly Ron’s point. Developers should seek higher cuts WITHOUT having to increase the sales price of the game. Microsoft will continue to make money either way. Listing and hosting the game on XBLA is No skin off their backs – so to speak – and only helps promote their service even more when they have newer and better titles coming out for XBLA all the time. So any points made by Microsoft on the subject are (dare I say) moot.

    If Microsoft was more reasonable with these developers (again, especially the smaller dev houses) we wouldn’t see the controversy that we saw with the release of games such as Braid but at the same time Braid could have made more money for the devs WHILE staying at a lower price point if Microsoft would show some willingness to co-operate on a good faith level and an actual partnership with these developers. I think this is especially true of Indie developers (and small companies) because they have what it takes to show the gaming world (community) that games can be great fun, affordable, but also profitable – when the large mongering corporations (who actually didn’t contribute to the development process I might add) aren’t waste deep in the profit while pushing a broken certification process that inevitably can lead to frustration or worse, a loss of passion during the development process.

    On a happier note, after much careful consideration and especially after watching 1ups interview with Jonathan Blow and reading some of his many Blogs I realized what a good guy he is and how passionate he was and is about Braid, I will be buying the game. I really, I mean REALLY, wanted to resist buying this game because of it’s 1200 point cost. I understand the why’s and whatnot on Jonathan’s side, but I still argue that Microsoft need not take such a large chunk of profit which, in turn, would help sell Braid to an even broader audience while increasing XBLA’s popularity at the same time. Braid did Microsofts XBLA service a favor, not the other way around. So, as much as I would prefer that the game be set at a lower price (for all of us, not just me or one other person, but so more people in general might be willing to take the plunge and enjoy something made by a passionate indie developer), I will finally be giving in and buying Braid. I absolutely do not support Microsoft (which I think is a given), BUT, I truly believe that Jonathan has wholeheartedly created a game that he put a lot of love and care into while trying, hoping that others will equally love it, while entertaining, impressing, bewildering, and even fulfilling a void in the gaming industry that has been missing for quite some time. He’s brought a passion back to the Mainstream marketplace that I truly know I can feel good about participating in even though I absolutely disagree with Microsoft methods of “Muscling” the market and taking more than they actually deserve. I also wish that Jonathan and his team did get a larger cut for his work. It is with this in mind and based on everything I’ve seen and heard from Jonathan (and other gamers) that I will be buying Braid, and supporting Braid and it’s developers, with the intent to ONLY support the developers. After all of my belly-aching over Braids Price I do realize and understand more about the developers of Braid and their point of view. I truly hope that only more and more developers like this will appear on not one, but all of the console network services (XBLA, PSN, WiiWare – and of course continue with the PC) now and for a very long time in the future. I hope that they will only continue to increase the standards and put the same amount of love and passion into their games while they’re at it. So, with all of that said, I admit I was wrong – I completely support the development of Braid, at the same time I absolutely DO NOT support Microsoft and their ways of business. I still think Braid could make the same if not more money at the 800 point cost but more importantly, I think Microsoft needs to stop “gouging” the smaller developers and their loyal customers, because developers could definitely live off of their earnings if they earned more than they paid out in “leasing” and network “rental space”, the only true services they are providing within the actual network itself.

    I really hope things change (soon) and for the better. If we can start getting a move on it (and changing this sort of situation) the gaming world will only become a better place, for developers, gamers, and even help the blind and pig-headed corporate money grubbers, though they don’t know it yet.

    So enough from me, I’m going to go play Braid… and some Bionic Commando: Rearmed a bit later :-)

    Jonathan Blow, if you’re out there, thanks goes out to you (and all team members) for being passionate and creative and for being REAL in the development of Braid. As a person who loves gaming, I appreciate it.

  • muku

    @Hmm…: You could wait for the PC version if you feel that strongly against XBLA. Would be interesting to know the cut the developers get from that, as compared to XBLA. (I have no idea how it will be distributed; Steam probably?)

  • Hmm…

    @muku,

    That is true. Honestly, if the price is fair (around the same for PC) I’ll probably buy it as a gift for someone because I have friends and relatives that only own a PC and none of the gaming consoles. I was being sincere though and really wish the best of success for Jonathan Blow AND all of the equally passionate developers out there. There are numerous reasons I see Microsoft as the big bad guy that needs to be overcome but thats’ mainly because it is a large company that refuses to “Partner” with developers and would prefer to be the Masters of the realm, a realm they still do not rightly own. I know not everyone at Microsoft falls into the category but the conglomerate and the entity known as Microsoft reminds me very much of the Sith – the oppressive nature that they stand for at least (sorry but it was the best comparison I could find off the top of my head).

    I really hope others will try Braid at the very least. I also hope that the trends, which currently reside in our console gaming online network communities will change, so that the developers can focus on game creation and be passionate about what they’re developing while making a profit and not being gypped by those that have it all and only want more. I believe there is plenty to go around for everyone and I believe the people that are actually “doing the work” get paid what they deserve in a reasonable fashion so that fans and customers are not being gouged. This would also help increase sales while increasing fan loyalty, but only if these huge companies are willing to give a little back to their fans, customers, and children (the developers).

  • Hmm…

    In other words, stop taking such huge cuts you money hungry monopolizing media mongers.

    PS: Till these big companies learn that, they can go fuck themselves.

  • Bajatar

    I highly doubt the big companies will change. This is the way it has always worked. Whether it’s music or games, the majors milk the cow until it’s going to be dead. Their business goal is to make as much money as possible “RIGHT NOW!”(tm) not some time in the future when a prudent strategy might pay off.

    They would take 100% if the could and the bigger they get, the closer it actually gets. They might not deserve it, but as long as anybody is willing to accept teir terms, they will exploit it.

  • arrogancy

    His article is missing a lot of things to take into account, and assumes that every game released by indies is a dinky little casual game.

    Here’s a comparison (these are both estimates) – Gish made around $150,000 profit for 2 years worth of work via self distribution; and this is an IGF winner that got tons of press and hype. Alien Hominid, which is practically the same in hype (although it DID have a console release that added to its marketing) was released through the evil greedy Microsoft service and made 10X as much.

    Microsoft is taking an overly large chunk to a degree, but it still affords you a bigger profit margin than self publication as a general rule. You’re overpaying for the chance to make more money. “Sticking it to the man” just hurts your own checkbook and accomplishes nothing.

  • arrogancy

    Oh, and I also forgot to add – it’s near impossible to get on services like WiiWare for the smaller no name indies. It’s easy to speak lofty when you’re already on top of the mountain like he is, but for the average indie developer, going through Microsoft is still the best choice.

  • lumpi

    I don’t know. Emotionally, it feels just wrong to publish financially weak indie games through the biggest software company in the world, enriching Microsoft as you are fighting for greater freedom and creativity.

    They’re more and more closing the market around them, as you can see with the “Games for Windows” and Vista/DX10 disasters. Now they’re big-brothering indie development?

    I’m not sure about whether there are real alternatives or fairer models. It just seems cynical.

  • Hmm…

    @Bajatar,

    I agree, that’s why we have to help change them… or perhaps, force them to change a bit. This can be accomplished if developers and gamers work together. It’ll be equally beneficial (even for the big guys) though they don’t care about us. We can still have an affect (and perhaps a lasting long term one) if we can somehow agree to stick together. It’s a difficult thing, very difficult, but not impossible.

    @arrogancy,

    I don’t really agree with you on those points. It sounds too much like propaganda – the kind that Microsoft relies on.

    @lumpi,

    Again, I agree with you and you stated some of the exact reasons why the industry needs to change and should change. It’s for the better, for all of us, gamers and developers alike. The barriers and phony partnerships that are present and offered by large corporations need to be re-thought, re-worked, and renewed.

    I really hope things start changing for the better soon.