S3Corp. Tech Blog

In 2014, Dean Takahashi’s article, “It’s an interconnected gaming world,” highlighted how advancements in global technology impact the gaming industry. This inspired an in-depth discussion on the rise of globalization in gaming, particularly focusing on the role technology plays in making the world “flat,” as Thomas Friedman puts it in his book The World is Flat. In an era where digital barriers are minimized, game developers have the unprecedented opportunity to reach audiences worldwide with little to no cost. As a result, traditional distribution models that rely on physical products are no longer a constraint. The smartphone ecosystem is a prime example of this shift, where mobile games can now be distributed globally at a fraction of the cost of past models. This access, however, comes with challenges for game developers.

The idea that globalization would result in uniform tastes across the gaming world seemed plausible years ago. However, as the gaming landscape develops, regional preferences remain crucial, and understanding the dynamics of local markets is key to success. The main reason for this is the rapid expansion of the gaming community, especially in emerging markets like India and China, where game players have never experienced the traditional packaged goods or premium-priced models that dominate Western markets. For them, free-to-play games are the norm, and as a result, free-to-play is rapidly becoming the dominant model worldwide. This is shifting game companies towards service-based models, as players expect continuous, evolving content and exceptional service.

Game Businesses Are Service Businesses

The evolution of the gaming industry has shown that the business of creating games is not just about building great products, but also about offering consistent, reliable service. The revenue generated by app stores largely comes from games, with free-to-play models contributing significantly to that revenue stream. This trend is not only observed in developed markets but is gaining ground in fast-growing regions, where mobile penetration is growing rapidly. For instance, in 2013, India saw a remarkable 55 percent growth in smartphone subscriptions, and similar trends are seen across Asia. In these markets, the free-to-play model is not just a trend; it is the standard, and the demand for free-to-play games is rising globally. As a result, game businesses must shift their focus to service models where the game itself is only a part of the overall experience.

To be successful in this new global environment, game companies must think of themselves as service providers, not just game developers. This means that the work doesn’t end once the game is released. Players expect continuous updates, new content, bug fixes, and improvements to the game. This is a shift from the traditional model where once a game was released, developers moved on to their next project. Game companies now need to focus on maintaining a long-term relationship with their players, providing a service that keeps them engaged and satisfied.

Creating a game that resonates with players takes more than just developing code or designing characters. It requires passion, creativity, and a deep understanding of the players’ desires. But it’s not just about creating a great game; it’s about creating a great game service. To maintain engagement and keep players coming back, game companies need to keep asking themselves, “How can we surprise and delight our players today?” The challenge is ensuring that this sense of service is maintained over the long haul, consistently and on a global scale.

Play Global, Service Local

The most successful games in mobile-first landscape are played globally but serviced locally. What does this mean? While a game may attract players from around the world, the way the game is marketed, updated, and supported needs to be localized. In practice, this means that successful game companies must invest in marketing and customer support systems that are tailored to specific regional preferences, cultural norms, and languages. Marketing campaigns that are successful in one region may not work in another. For example, a promotional event celebrating an American holiday like the Fourth of July would likely have little to no impact on players in other countries. Worse, it could alienate players by implying the game is not for them.

A truly global game service operates on the understanding that while the game itself is universal, the service surrounding it must be adapted to meet the local needs and expectations of players. Successful companies recognize that they must cater to local tastes, be responsive to local customer service demands, and ensure that content resonates with players in each market. This requires investment in infrastructure and local teams that understand the needs of specific markets. Companies must hire people who are attuned to the needs of their local market and can respond quickly to issues as they arise.

In addition to understanding the cultural nuances of marketing, game companies must also consider the practicalities of customer service. Maintaining global server uptime and managing customer complaints promptly (within 48 hours) is a massive undertaking. It requires sophisticated infrastructure and dedicated teams across different time zones. While it’s possible to minimize the cost of these operations, providing a truly service-oriented experience demands a level of commitment that goes beyond mere functionality.

This challenge of operating across multiple regions is akin to the rise of retail distribution in the early years of the packaged goods industry. Just as retailers needed distribution networks to reach customers, game developers today need specialized operations to serve players worldwide. Over the next few years, companies will emerge that focus on solving this challenge of global service. By building the right infrastructure and developing operational expertise, these companies will provide essential services to game developers who want to focus on the creative side of the business.

The Future of Game Publishing

As the game industry continues to evolve, we are likely to see a shift from traditional publishing models to a service-based model. The future of game publishing won’t be about distributing physical copies of a game but about ensuring the game remains operational, engaging, and evolving long after its release. Just as retail distribution companies emerged to support game developers in the past, we will soon see the rise of companies that specialize in offering services that support global game operations.

These companies will focus on managing servers, providing customer support, and ensuring that games are continuously updated with new content. They will become the backbone of the gaming ecosystem, allowing developers to focus on creating new games and content rather than worrying about the logistical complexities of running a game service. This shift is already underway, with companies providing outsourcing solutions for mobile and web development, helping game developers manage the technical and operational aspects of their business while they focus on creativity.

The shift towards service-based publishing is inevitable. Game developers and publishers must prepare for this change by building the necessary infrastructure, hiring the right people, and investing in customer service. By doing so, they will be able to thrive in the increasingly globalized gaming market and ensure their games continue to delight players around the world.

Conclusion

As the gaming industry becomes more interconnected, it’s clear that the most successful games will be those that can operate on a global scale while providing exceptional, localized service. This shift from product-based publishing to service-based operations presents a new set of challenges but also enormous opportunities. Companies that embrace this change will be well-positioned to thrive in the future of gaming. By investing in global operations and focusing on the needs of local markets, game developers can ensure they are providing the best possible experience for their players, driving retention, and fostering long-term success in an increasingly competitive industry.