Where have all the good games gone?

Over the past couple of months, it has become painfully clear to me and many of you at Gamezebo that the quality and quantity of download games is dropping. There are less download games being released each week, and of those that are released, many are just not good.
The state of download games is in dire shape. And, unless changes do not happen soon, things will only get worse.
Before I talk about what’s going wrong, let me tell you what is going right in download games.
The answer is, you, the game player.
There are more people playing download casual games than ever before, which is quite a feat during a worldwide recession. The growth in demand for download games is driven by lower prices, improved broadband speeds, and the fact that the primary audience that loves to play download casual games, Baby Boomers, is the largest demographic in the US right now.
So what’s the problem? While demand is growing (albeit slowly), the supply side is out of whack, moving the market out of equilibrium. Here’s the problem:
- The price of download games has dropped in the past year from an average of $20 to $7 per game. That’s a 65% drop in price, meaning developers need to sell 2.5 more per game to make as much as before. The demand for casual download games is growing, but at a much slower rate to offset the drop in price (my guess is 10 – 15% yearly growth).
- There are less channels for games developers to sell their casual games, both offline and online. Retailers, like Walmart or Target, noticed the price drop online and either dropped their prices or stopped selling casual games altogether. There has been consolidation online. For example, PlayFirst has partnered with Big Fish Games to sell games and Reflexive is closing their Arcade product. Whereas there used to be hundreds of web sites retail for developers to sell their games, now there are only a few.
- While the price per game has dropped, the amount developers earned per game has either stayed the same or in some cases, decreased as margins get squeezed.
It does not take an economics degree to understand the numbers simply do not add up. If developers are making 2/3 less per game and the amount of games sold is not offsetting that drop, the only way for game developers to earn their return on investment is to spend less time and money producing each game.
Whereas a game developer would have been willing to invest $300,000 and 6 months to develop a game in the past, now they can only afford to spend $100,00 and 3 months just to break even. The result is more derivative content (especially among hidden object games), less game play, and poorly tested games with bad English grammar (I had to throw that last one in there).
Moreover, many highly talented game developers are leaving the download space altogether to focus on iPhone and Facebook games. With iPhone, the cost of development is much lower and Apple only takes 30% of the sale. With Facebook, a decent trafficked game can make up to $50,000 – $100,000 per month. Game developers are not moving to the “hot” iPhone and Facebook businesses to make a quick buck; they are leaving Downloads to stay in business.
And that’s a shame, really, because download games are more popular now than ever before. Gamezebo started as an editorial web site devoted to casual download games and even though we have expanded to cover casual games across all platforms, download games remain our top passion. No one wants the download games market to survive and thrive as much as we do.
In a way, the recent drop in quality has given us here at Gamezebo an even greater purpose in our coverage of download games. We understand that game players do not have money to throw away on bad games, and we strive to give our non-biased reviews on games and provide the online tools for our users to share your opinions on whether a game is worth buying or not.
However, we’d prefer to review more good games and give out 5 stars than to rate games with 2 stars or less for being buggy, derivative, too short, or just sucking. And lately, the 2 stars or less have been flying in our Downloads channel.
Fortunately, not all is dire in the world of download games. Companies are starting to re-introduce the concept of higher tiered pricing with Collections and Premium edition games. There are game developers that continue to develop high quality download games (especially those with strong franchises). New distribution channels and premium services are popping up to offer developers new ways to make money. And, with less competition, this is the perfect opportunity for game developers to jump back into the Downloads business, assuming they can make the math work.
Still, the fundamentals behind the download games market are flawed and we can no longer stay silent. The first step in solving a problem is to admit that a problem exists and for some reason, the entire casual game downloads industry is too scared to speak the truth.
The games need to get better or game players will stop playing. Game developers need to make enough money in order to invest the time and money to create better games as we’ve enjoyed in the past. And yes, game players need to be willing to pay more than $7 to play higher quality games.
I’m not saying it’s possible to get the average price back to $20 per game. There are too many cheap and free games online, on Facebook and the iPhone (that’s a reason why we are covering them more). But, $7 does not work. A desk for $1,000 made by craftsmen is higher in quality than a $200 desk you buy at Walmart made of particle wood. It’s the same with download games.
If the status quo does not change, we’re going to enter a vicious cycle, where lower quality games lead to less game sales, which leads to less developers creating download games, which lead to even less sales, and so on.
And once the big fans of download games get fed up, bored, and stop playing --- well, then that is when it truly is game over.

Comments (103)
Jun 1, 2010, 10:36am
It has become harder and harder to make games for the downloadable portals as most games that aren't a Hidden Object game don't succeed. I think that the popularity of Hidden Object games, and their owning of the Top 10 lists has driven away players who don't enjoy them. After all, why would someone who likes Action, Strategy, or even Puzzle games continue to visit a downloadable games website where 9 out of 10 slots in the top 10 are Hidden Object games? The answer is many wouldn't, they'd go somewhere else to find what they are looking for...and they have!
The end result is that the downloadable portals have come to represent a more niche market than they used to. It's a market that is worth making games for, but it only if you are making certain types of games.
In making a game for the iPhone, iPad, DS, or Wii, we access a more diverse customer group, and that provides opportunities for making a wider variety of games. With variety comes better games as we have more ability to imagine and innovate :).
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Jun 1, 2010, 3:47pm
"I doubt the sites who mainly offer HOGs are worrying about driving people like you away."
That's an interesting statement.
I'm not sure you understood my meaning or where I come from. I'm a game developer. I work for Reflexive, who has made quite a number of games over the years, my released projects include Airport Mania & Simplz: Zoo.
Taken from that side, the sites who offer HOGs should be worrying about driving people like me away, b/c people like me represent the source of the content on those sites.
My statement wasn't about personal taste, it was in regards to the economic side and financial realities for developers in the current market.
There is a lot less revenue that can be made from selling games on the downloadable portals today than there used to be, that's a fact. Specific portals may be doing better or worse, but overall, in total, there is a lot less revenue. There is also less genres of games that can be successful on the portals. (success meaning they earn enough money to pay for their development)
As a game creator, it has become clear over the last 2 years that the same type of content that used to be successful on the casual portals can still be very successful on other portals such as Steam and on other platforms, like the iPhone, even if the exact same game doesn't perform well on the casual portals.
A game not doing well on the portals isn't necessarily a sign of the game not being a 'hit,' but instead, it points more to changes in the customer base of the casual portals that has made some types of content more successful elsewhere. Plants vs. Zombies is a great example of a game that was a moderate success on the portals, and a huge success on Steam and the iPhone, and even casual game poster-child Bejeweled 2, is enjoying more success away from the portals on Facebook and iPhone than it is getting on the portals.
Things are always changing, and being aware of the changes and reacting to them is how developers stay in business making great games. There are still great games on the portals, but certainly the variety, and based on many remarks here also the quantity, have been decreasing. That's not necessarily a reason to panic, the portals serve the HO audience very well, and I'm sure they'll continue to do so, but they may represent more of where the casual market has been than where it is going.
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Jun 2, 2010, 1:06am
On the other hand, I'm not buying CEs, unless they have a huge amount of extra play. I don't care about strategy guides, as most casual games are easy enough that I don't need them. (Old adventure gamer of the Myst generation, LOL.) And I really don't care about screenshots, wallpapers, concept art, etc. I will pay $20 for a Large File Adventure, but not for an IHOG.
If the games are going to stay at around $7, I would sure rather have a really good game that lasts for an hour than a mediocre or bad one that lasts for 5 hours.
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Jun 2, 2010, 6:42am
@ Picman/Paul Thelen
You might be right, that others started dropping the prices, but none of them was big enough to really have an impact on the casual download games market. BFG says (for sure correctly) they are the biggest on the market. How can you say now, that smaller publishers brought you into the situation, that you HAD to drop prices (and with this the revenues of the developer). It was BFG bringing developers and other portals in trouble. In a lot of ways. You know, insiders know and a lot of players start realizing also.
And no, BFG does not bring a lot of good games. Due to the fact of daily 1 new game (at least), you bring out even more bad then good games.
After a lot of developers went down, after Portals went down, after you started to see the success of your efforts - you brought up Premium Editions BFG started the Premium Edition with a lot of knickknack, but not giving more play time or better games. Dire Grove was the first, when I remember right. It was for sure a nice game, but it was not a Premium Game. You talk about experiementing with games for Premium that have a higher budget? Games coming from BigFish seem to have more less the same bugdet, seem from playing time, graphics and so on. The same budget as the real good games do not coming out of the BFG Workshop do have. Stopp thinking, that players simply rely on what BFG is saying. Consider that they can think and see.
We get the games, we pay for... $ 6.99 (or € 5.99). But till now, there was only one game worth the Premium Edition Price in my opinion - Royal Envoy. And that was not yours (by the way: Why should I possibly pay a collector edition at BFG, when the developer offers it for the same prize? I prefer to give the developers what they deserve).
Joel is right with most of what he says, in my opinion. And that a Paul Thelen (or some one near him) thinks, he has to reply on this shows a lot:
Joel is right
P.T thinks, that there is a need to correct this statements/facts in the hope to be able to put back the blindfold on players eyes.
BFG is not "untouchable" anymore. And this concerns P.T. Joel speeks out loud what a lot of the people working in this business are saying now for long. Didn't you listen, when your people came back from Casual Connect in February? Didn't they tell you, what was to hear in every corner?
And about the game quality: Actually a lot of games (Ho and TM mainly) are having great graphics, nice playing mechanics. Yes. I agreee. In this case, the quality is getting higher and higher. But same time, they have endless hints, some of them stupid stories, uninspired mini games, sparkling here, highlighted there, dialogues and character talkings with additional hints or even solutions. - no way for the player to explore, to find his own way. You have playing times, that a gamer does not even need to open the second bottle of water. Weekly shooping costs me more time (and more money of course ;) ) then playing these games. Quality and quality can be two different sides of the same coin. But for me the playing quality counts. I do not need high quality video cut scenes, when the story behind is a copy and the game play is boring.
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