The Netflix of Gaming is Already Dead | Asher Kagan
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Delivered at GameDaily Connect USA 2019. Asher Kagan, co-founder of cloud gaming company Shadow, will discuss why being the Netflix of Gaming isn't necessarily the best way to think about this new way of gaming. Since Shadow's launch in late 2017 Asher has learned a lot about what works, what doesn’t work, and most importantly, what gamers want when it comes to a Cloud Gaming solution. One thing he's very confident about is that becoming the Netflix of Gaming is a thing that won’t serve gamers, game developers, or the industry very well. Stop by his talk to hear about why. For more information about GameDaily Connect, please visit https://connect.gamedaily.biz Follow us on Twitter: https://Twitter.com/gd_connect Like us on Facebook: https://facebook.com/gamedailyconnect
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The Netflix of Gaming is Already Dead | Asher Kagan
- 1. THE NETFLIX OF GAMING IS ALREADY DEADASHER KAGAN CEO & CO-FOUNDER SHADOW
Editor's Notes
- Good afternoon! Like many of you…I’ve been a gamer forever. Ever since I was a boy growing up in Israel, I spent all my free time...and all my pocket-money made fixing our neighbors’ computers...on games. Over time, I fell in love not only with playing games, but also with learning about the technology needed to play them - the hardware, development languages, software and networks.
- When I got older and realized I could be a part of this amazing industry, my instinct was to be involved on the technical side. But a few years ago it hit me - the games and game systems had changed tremendously - but the how….the way we played games, hadn’t much changed. We still play games pretty much the same way I did as a kid….save up for the latest, greatest gaming device, then find yourself locked into playing games only on that costly device. This lack of progress was surprising, since gaming has always been the engine that pushed technology.
- It’s been the same since the start: roll the dice and buy an expensive PC console - hoping it’s “The One” - and play your games on this machine. And then you’d better be prepared to upgrade it in a few years.
- In 2017, I started Blade to get gamers off this hamster wheel. There are several possible approaches to improving the way we play games. Today I’ll talk about what we’re doing at Blade with our cloud gaming service Shadow….and why we think it’s a smart way to get to where we want to go.
- When I/we started Blade, everyone assumed the optimal way to evolve game play was to create a ‘Netflix of Gaming’ meaning…..offer a catalog of titles people play over the internet...and charge a subscription fee. Sounds good, right?
- Today I’m going to suggest why this approach should concern you.
- I’ll tell you why it’s concerning if you’re a developer
- I’ll tell you why it’s concerning if you’re an investor
- And I’ll tell you why it’s concerning if you’re a gamer
- First….let me take a minute to define cloud gaming so we’re all on the same page. Cloud gaming means you can: Game anywhere on any display you like; Spend zero money on system upgrades; Get into games faster; and Enjoy features impossible to find anywhere else. Cloud gaming allows you to play any game you want - on any device you already own; Just as Netflix did for video - the first big payoff is cloud gaming will open up accessibility for a huge audience of new gamers by removing the barriers of cost and complexity inherent in the traditional gaming model. If that weren’t exciting enough, secondly…we believe cloud gaming will usher in a revolution in computing….as low-cost access to enormous computing power is democratized and made available to people who previously never had it. These two possibilities are nothing short of ‘transformational.' ….a word that’s overused to be sure, but in this case it applies. Many people assume cloud gaming = Netflix Through your subscription, you’d get access to a limited catalog of games and still enjoy all the benefits of cloud gaming. Several services have a subscription element and offer a number of games. But that’s just one model, and in our opinion, not the best one. While our service Shadow is available through subscription, we’re not concerned with where people get their games.
- Now that we’re on the same page around cloud gaming, let me suggest why the Netflix of Gaming model is bad for developers: The primary problem in this model is control - or rather, lack of control. The Netflix of Gaming is a walled garden - and developers don’t own the garden!!! Not only don’t you own the relationship with your players, but the owner dictates the financial model of your game. This can place artificial limits on how you design your games, constraining your options and your revenue - whether that means limiting you to a freemium-style model, or forcing you to focus on increasing usage time. The developer should control the user journey and we don’t think a delivery mechanism should drive you down a specific path. There’s also the question of what this means for indie developers or even for older titles by mainstream developers who don’t have a user base large enough to justify being included in a catalogue.
- Now, let me suggest why I believe the Netflix of Gaming model is bad for investors: Most gamers engage with their games in a very different way than they do with movies and TV. It’s not uncommon for a gamer to play a favorite game 50, 100, or in my case - a 1,000 times playing ADD GAME NAME!! Nobody does that with movies or TV. For investors, there’s real risk in backing a finite catalog of titles. Gamers don’t care about being offered a quantity of games. They care about being offered the games they love. This system makes title choice a costly gamble. Let’s say a service gets everything close-to-perfect, with a large selection of popular games and maybe even some niche titles. Out of this catalogue, a typical gamer will consume two, maybe three games. And these are often very specific. You have fans of Call of Duty; of Ghost Recon; of DOOM; or like myself - of Transport Tycoon Deluxe. When a gamer decides to start to play a new title, his or her question will always be: is it available on this service or…do I now need to subscribe to yet another service? This is complicated. And costly. As an investor, why would you chose to pour capital into a service where there’ll always be the risk of having the wrong content mix? The smart money might choose to invest in a platform that won’t restrict users to a fixed catalogue. With Shadow, we’ve created the possibility to run any game, so gamers can play anything they want, any time they want. We’re title and system agnostic.
- Lastly, why we believe the Netflix of Gaming model is bad for gamers: I’ve mentioned the challenge of subscribing to a service that has the titles you want now and the games you may want someday. We believe developers should design the games they want to see played, not around artificial goals and incentives. As a gamer, I also want access to indie...classic…and cult games that never even got close to the mainstream. With Shadow our goal is to: Evolve an industry that’s stuck with the same model since Day One; Bring gaming to large numbers of underserved people; and work with developers, not dictate terms We want developers to make the games they want to make and also give them new options to enhance the creative and technical experience.
- Why am I on this mission? I’m a gamer who’s convinced cloud gaming can change everything. I think about my own story…a lifelong gamer, now with new priorities - a family and a wife who gave me the ultimatum - does this sound familiar? - “It’s either ME or that PC rig you’ve got plugged into the TV!!!” This scenario should go away. We believe gaming should be all about the games. The hardware restrictions should disappear. It’s about the way to play.
- We’re committed to..accessibility….flexibility….and compatibility. A system that works like a Windows PC - you install any game and any application you want. Everything simply just works. All the time. You don’t have to learn a new way to enjoy your content. For developers, this means all their existing games work perfectly as-is. We want to work with developers to make their games even better in the cloud and leverage the advantages of our tech. And there’s no risk for gamers. They bring the games they already own into Shadow. And any games they buy while subscribed, remain theirs should they stop subscribing. It’s important to note that this brave new world of gaming is available today. It’s not a future scenario that only exists on a whiteboard. The revolution is happening now.
- We believe cloud gaming matters because it’ll open up gaming to brand new audiences and will empower developers. We also believe cloud gaming has the potential to change the computing world and the next few years will be amazing, as its potential is realized. Please join us in this magnificent journey and thank you for listening to me today. I’ll be around all day and would love to hear your thoughts and experiences around cloud gaming.