I know it was asked of Cas, but I’ll chime in here as well.
I was having a lengthy discussion with one of my closest friends, who is also a very well known and highly respected person in the games industry globally, about the state of games today. His comment to me about game pricing was, and I am paraphrasing, “More and more, I find it harder to spend $60 on a game when I can knock off a couple of hours playing some cool casual games from Kongregate and other game portals, for free. I mean, even if I have to spend $10 or so, I can get 6 good games that are satisfying. A $60 game has to really offer something special.”
I don’t know about everyone here, but I am kind of in the same camp. The economic downturn has only strengthened this sense. The last full price game I purchased was LittleBigPlanet, because it was worth every penny. Since we got it on release day, my kids and I have played it, literally, almost every single day. Christmas break was brutal because I would have to chase them off the PS3 after 5-7 hours…consistently!
Point is, the mass market has turned “casual”, which is a misnomer. There is nothing casual about a gamer who plays on casual portals for 1-2 hours a day. The ubiquity of web access across a variety of platforms has the same result on games that it had on static content and people are dividing their game time up across more devices than ever before. While the opportunity is there in casual, so is the competition. Apple just stated this interesting bit of info about iPhone games:
The App Store has gone really well. In 100 days, we’ve had over 6,000 apps on the Store: mind-boggling. In the same period we’ve had over 200 million customer downloads. It’s just amazing. And it’s games that turn out to be the biggest category of all, with over 1,500 different games already available. To put that in context, that’s more games than the Nintendo DS and the PSP put together, and this is 100 days in.
Again, a ton of competition, but also an opportunity. Small teams can produce have the chance at a large distribution pipe through Steam, iTunes, portals, etc. You may have to “play ball” with some of them to adhere to their rules but, as with most things in life, sometimes you have to do the things you need to, to do the things you want to. I think that, for the first time in a long time, independent developers have a good shot at being successful.