THQ Confident that Cloud Will Kill Physical Retail
Posted September 8, 2011 by Ben Strauss
The future of gaming remains uncertain to many in the industry, but THQ CEO Brian Farrell is confident that cloud gaming is the answer. Speaking at the Cloud Gaming USA conference in San Jose, Farrell noted that the choice is rather obvious; cloud gaming is the way to go. So confident is he that he believes console manufacturers will simply drop the need for discs on the next generation of consoles."No physical goods cost for game makers,” he opened. “No inventory, no markdowns, and all the money spent by the consumer would go to the developer or publisher."
Essentially, the idea of the disc drive is just too cost prohibitive in a world that has so readily embraced social gaming. Removing discs from the equation “will result in a lower cost for the hardware manufacturer, which will result in a lower cost to consumers and therefore a lower entry point, thus driving more mass market adoption."Farrell also made an argument for increased customer service. He notes that “Our games are always on and our players are always connected....We have the opportunity to interact with players in new ways that can be reactive to their desires, play habits, and buying habits."
"The box, ship and done model are transitioning to: observe, measure, and modify," he offered. To Farrell, this is "a games as a service model where direct consumer feedback allows the ability to operate in this always on, always connected environment."The big push is in the social and ‘freemium’ markets, where gamers are embracing free-to-play titles. Publishers are going to have to address that model in a way that continues to be proactive for development of triple-A titles.
"We're starting to see a world where players can pay different amounts based on preferences with casual players paying a small amount, and more hardcore or passionate players investing more into their experience."Cloud gaming represents an answer, but one that must be implemented responsibly.
"Technology alone will not give a clear benefit to the consumer," Farrell notes. "Cloud computing and data storage could potentially do a lot, but it's what we do with it as game designers and publishers that really matters most."Ben Strauss is a student at Xavier University studying Marketing and Philosophy. He has been an active gamer since he got his hands on a Nintendo, and looks to help further gaming as a legitimate creative and entertainment development entity.


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