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Big publishers forced to innovate through M&A, says Daglow
19.12.2023 - 16:44 / gamesindustry.biz
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Once upon a time, games veteran Don Daglow gazed into his crystal ball and told GamesIndustry.biz what he expected from the next decade in the video games business.
Ten years later (okay, 11, but Daglow's very busy and so are we), we caught up with him to see how accurate his predictions were and what he believes the future holds for the games industry.
Daglow has been involved in games development since the 1970s, working at Intellivision and Electronic Arts before founding his own company Stormfront Studios. He has numerous awards to his name, including an Emmy for technology and engineering on the original 1991 Neverwinter Nights.
As you can imagine, the conversation covered a lot of subjects, so we're going to dive straight into it.
"My crystal ball says big publishers are still an important part of the landscape in ten years. I just think they will function differently than some of the models we see today. My guess, my instinct, is that, first of all, we're going to continue to have big blockbuster games on consoles and various platforms that will come from long term dedicated in-house teams of publishers... The exact structure may metamorphose a little bit."
Daglow says the biggest publishers are even more "intertwined in the spider's nest of the requirements of being a public company" now than they were ten years ago. This means most are focused on growing their revenue every quarter and preventing their stock price from dropping (regardless of whether there are logical and/or uncontrollable factors as to why this is happening).
"That's the problem, because they live and die by that," he says. "The spider web just keeps trapping the larger organisations even more in what they can do, and forces them to innovate by M&A, because it gets progressively harder to innovate internally."
He also notes that the push to maximise return on interest means that managing any kind of connected or live service game – essentially anything that's not a single download without further transactions – becomes "a massive spreadsheet exercise" as publishers work out which elements to tweak in order to increase revenues.
"Within every one of the big corporations, I still see bright lights and innovative, clever work, but these are the exception, and sometimes the culture is actively working against them without intending to," he adds.
"If people are thinking about milking what they can out of a property, that's a very dangerous way to look at it, and will produce a lot of short lifespans"
If that's the case, why have so many companies gone public over the past ten years?
"Tremendous benefits in terms of access to cash, and a certain
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