Archive notice: This article was originally published on May 29, 2008. Links and embedded videos are preserved as part of the historical record.
Traditional game developers rely on the simple principle of “more revenue through more titles.” This calculation will sooner or later stop working, at least according to Gameforge founder Klaas Kersting, speaking at the FMX industry conference in Stuttgart that ended a few weeks ago. More and more people are now moving their gaming activity to the internet. “Large communities such as Facebook, YouTube, and others demonstrate impressively how strong the desire is for mass social interaction on a shared online platform. In the future, this principle will increasingly apply to games as well,” Kersting said. “And the stronger the social bond between individual players, the more time and money they invest in the games.”
While the value-creation process for desktop titles and console games ends immediately after the sale and subsequent success largely depends on the marketing and PR machinery, online-game providers must continually convince customers of their titles’ quality. The value-creation principle behind Gameforge games is as simple as it is ingenious: the games are generally free and can be played permanently without spending money. For small amounts, however, players can obtain minor gameplay advantages or personalize their characters. “We make money only when our customers identify with the game over the long term,” Kersting explained. “This business model forces us always to deliver the best possible games. And the system works: more than ten million players actively play our titles for good reason.”
Klaas Kersting is not alone in believing that the future of computer games lies on the internet. Alex St. John, head of gaming network WildTangent, is already speaking of the “death of game consoles.”
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