Nostalgia: Marketing’s Secret Weapon

      (He’s back! Credit: Data Discs)

Last week marks the release of Sonic Mania, the latest outing for Sonic the Hedgehog. It has garnered both critical and consumer acclaim, but already seems to be a smash hit for the franchise. What makes it stand out from previous games? Simple: Sonic Mania looks, sounds, and more importantly, feels like a game fresh out of the ‘90’s. It appears like a long-lost cartridge from the Genesis days. As of this writing, Sonic Mania sits on MetaCritic with an 86 critical score based on 46 reviews and a 9.2 user score based on 202 ratings[1]. Clearly, there is something resonating with consumers. That something is nostalgia.  Surprisingly enough, this phenomenon is not solely linked to gaming as the Food & Beverage industry along with Consumer Electronics share this passion for the past. Whether it’s Crystal Pepsi, the original KFC colonel, and old vinyl record players, nostalgia based strategies have begun to make a name for themselves in the world today.

Where did the interest in profitable nostalgia come from? Why is it successful?

      (Note the date at the bottom, 2008. Credit: TechnoBuffalo)

When trying to understand why nostalgia has made an impact in multiple industries, we first need to decipher where it came from. While throwback and limited-edition products are not new and instead make for a minor spike in sales, fully committed, new nostalgia themed products have been what has created an impression on consumers. In gaming, one of the earliest editions of a wholly nostalgia themed product was the release of Mega Man 9. Mega Man 9, released in 2008, was a brand-new iteration in the long running franchise with one major twist: it was made as if it were intended for the original Nintendo Entertainment System[2]. The game was a smash hit and a bold move for the industry that was only looking forward, not to its past. Since then, multiple developers have sought to recreate the nostalgia magic Mega Man 9 captured but with mixed results. Sonic Mania appears to be the culmination of this new interest in nostalgia, and it appears to be here to stay for the long term.

Nostalgia is not simply relegated to gaming though. The Food & Beverage industry has taken advantage as well. If you’ve taken notice of any KFC advertisements in the last few years, you’ve probably seen several different actors in the Colonel’s attire. This has been extremely successful for KFC as brand engagement has been increasing year over year. The multiple impersonators help convey a story worth watching, along with sticking in consumers’ minds to think which actor might come next[3]. Recently though, KFC has taken a step back with forcing new Colonels and instead has been using image based positioning to show the latest Colonel superimposed in the commercials of the original Colonel. Having a commercial with the original Colonel, along with a grainy style shot, helps evoke memories of youth, likely when the older generation enjoyed KFC more regularly. It tells a story, something that sticks well with customers of all ages. Furthermore, given KFC has gone through its fair share of scandals in recent memory, by turning the clock back to the original Colonel the restaurant can remind consumers it’s a brand that can be trusted. Overall, the blend of nostalgia inducing memories and overall good feelings can help drive sales. Couple these advertisements with the impersonators, and KFC has cooked up a recipe for both building brand equity and sales’ success.

                                   

(Moving forward by looking back. Credit: Amazon)

Looking towards consumer electronics, we see a huge trend of consumers shifting towards vinyl again. 10 years ago, interest in vinyl was minimal at best. Since then, it has grown 52% year over year as of 2016, when a total of 12 million vinyl records purchased in the open market[4]. With media shifting towards digital options, the market has created a need for physical entertainment and has found its home in vinyl. Consumers still enjoy having physical records and a player. A record player becomes something of a furniture piece, and having a record collection is something trendy that has not diminished over time unlike its CD counterparts. While streaming or having a digital library may be great as well, we’re all one laptop drop from potentially losing everything, or worse, going through the motions of recapturing our collection from backup drives, the cloud, or *gasp*, customer service centers. Having a record player and vinyl brings forth a dual purpose: style and physical content. Vinyl has a specific feel to it, you know what a vinyl record looks like, and most important, everyone knows that signature vinyl sound when a record player kicks into hear. Although total sales are still at a miniscule number at 12 million, big companies are taking notice of this shift. In fact, Sony recently announced that it would begin pressing vinyl for the first time in 30 years[5]. If nostalgia can make such an impact with a behemoth like Sony, clearly it has the power to make noise in any industry.

Is Nostalgia a perfect Marketing Strategy?

Nostalgia is not flawless. Let’s go back to my favorite franchise Mega Man. After the success of Mega Man 9, the developer Capcom quickly pounced on producing Mega Man 10. Now I thought that it was a solid, if unspectacular, entry in the franchise; however, I’m a longtime fan and would have given anything for more content. The remaining populous found it to be average at best, and it reviewed well, it showed faults of nostalgia. Even worse, it felt like a cash in, as if Capcom knew it had something good and needed to take advantage. Here we see the biggest caveat when it comes to producing old styled content. While a nostalgia trip may be exciting, it can get old fast, especially if it does not hold up to the standards of the past. That’s why when I bought a record player, and it sounded terrible, I immediately regretted my purchase and haven’t considered getting a new one until I have enough disposable income to truly invest in a high-end set.

Nostalgia and the Future

Despite its flaws, nostalgia based marketing and production does not look to be slowing down anytime soon. The strategies of evoking childhood memories in products are simply too strong to ignore, as they consistently drive both sales and brand engagement. Furthermore, longtime brand equity merged with nostalgia themed marketing is usually targeted at a demographic that has grown up with the product, only now this specific demographic likely has more disposable income than before. Having said that, nostalgia will not work for every company, especially those that are either young or do not have a glorious past. While Nintendo and Disney can rely on the brand equity their characters have built over time, a company like Apple has no one clamoring for a follow up to the Apple II, nor does Facebook have fanbases urging the company to return to its original layout. Regardless, nostalgia strategies appear to be here to stay and we can only hope as consumers that companies will make the best decisions with the content they produce.

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[1] http://www.metacritic.com/game/playstation-4/sonic-mania?ref=hp

[2] It also happens to be my favorite game of all time

[3] https://www.qsrmagazine.com/competition/kfcs-comeback-story-takes-flight

[4] https://www.consumerreports.org/audio-video/return-of-turntables/

[5] http://www.scmp.com/culture/music/article/2106906/sony-resume-pressing-vinyl-japan-after-30-year-hiatus

To Be Determined: A Critical Look at Personalization & Gaming

For decades, the Video Game industry has been working towards creating fully customizable experiences, allowing users to have as much control as possible in the media. Customization ranges from creating a character all the way to the player’s in-game experiences. Initially this sort of customization prompted players to simply choose their characters, but now it allows for customization of every intricate detail, from large items such as names to even the minutest items like how far a chin should protract. Players can also customize their aesthetics with options to have user music replace in game tunes. While these customizations have always been a delighter in terms of benefit, the real depth of customization comes from the game experience itself.

(Even in the upcoming Sonic Forces you can make your own speedy quadruped. Credit: YouTube)

Since open world games like Grand Theft Auto 3 and The Legend of Zelda: Breath of the Wild have risen to the forefront of the industry, players have been able to customize their games in how they experience the content. While games may still have a set of boundaries, this relatively new phenomenon of allowing users to decide what, when, where, and how to approach objectives brings forth unparalleled customization. Best of all, it looks like these opportunities will only continue to grow and develop over time, bringing fully individualized experiences nearly impossible to replicate. While this is all well and good, customization is not the purpose of this post. Rather, it’s personalization, something lacking in the industry.

When I look to define personalization, I look towards the combination of individual preference and systematic probability. It’s rendered best in the music industry, where leading companies can personalize a listening experience by creating playlists that focus both on the user’s saved tracks and system predicted songs that the user might enjoy given his or her tastes. As another example, when a user orders through an online pizza service, at checkout the system typically offers either a side or beverage that was previously purchased, simply to remind the user that he/she may have previously enjoyed it and might want to order it again. This strategy works in helping repeat purchases and revenue growth, and yet, in a multibillion-dollar industry in Video Games, it barely exists.

While there are the occasional advertisements on the console home screens or random pop ups of new content either in game or as part of the console platform, it never feels truly focused on the player. An example is that when viewing games online there is almost always a section titled “Games Like This” or something that highlights potential products to the player; however, these notices barely carry any weight. They are typically put out of focus on the screen and do not seem overly intriguing, and here is where the greatest opportunities lie.

                                

    (The screen prior to starting up Bloodborne is barren, a missed opportunity. Credit: PSN)

Think for a second about the systems of yesteryear. Sure, a game cartridge might house additional saves where data would be stored to justify stating there was an understanding of time spent with the game, but never really was there any attention paid towards understanding the consumer (not to mention that data never was relayed back to the parent company). Historically speaking, game companies realize their brand’s impact through sales figures, followers, review scores, and other external metrics, but what if they thought about their brand and its following internally? If FromSoftware knew that I had beaten Bloodborne four times, either the company or Sony should have reached out to me in some capacity to state something simple like “Hey! We see you’ve sunk a lot of time into this game. Why not try our other ones that are similar in content?” or “Hey! If you enjoy this game, you need to try out the DLC. It’s even better!”. Instead, despite my immense satisfaction with Bloodborne, I waited months before picking up another FromSoftware game. Now, I’ll freely admit I’m a longtime gamer and thus had an interest in the other FromSoftware games after finishing Bloodborne, but what if I didn’t have that interest? I would have missed out on what has become one of my favorite franchises ever in the Souls’ series.

As another example, EA Sports typically comes out with a new iteration of their Football, Basketball, and Hockey franchises annually, and these are all viable opportunities to generate income. If they recorded data that I love playing as the Celtics in basketball games, well maybe they could offer up an opportunity to purchase a throwback jersey in game. Maybe in an action game, if the system were able to determine that I enjoyed playing as one character specifically, it could target me for the DLC associated with that character. These unique instances rarely happen, and, in my opinion, they should.

Perhaps I’m optimistic, but I think there is a huge amount of money lying on the table for these companies to capture. They just need to fully understand the data they have acquired from their impassioned fan bases. In fact, I think it’s only a matter of time until they do. The danger with the gaming community at times is that there can be an over-saturation of misguided attempts, and the only thing that’s worse than an error prone advertisement is one that fails to make any impact. In the ultra-competitive world of gaming where companies are fighting for players, dollars and everything in between, one misstep could spell doom for a campaign; however, as long-standing companies become more mobile friendly, there could be an alternative avenue for personalization to make the impact it needs to become a mainstay in the industry.

Let's Make a Franchise - Part 2

When we last left off the tides of change were approaching. Sony had established itself in the industry, Nintendo was battling with quality over quantity, and Sega was lost. Heading into the 6^th generation things were not getting easier, as Microsoft revealed its entrant into the console wars with the Xbox, a brand new machine that looked to take another piece out of the competition. Likely due to the Sony success, Microsoft believed that its own computing advantages would lead to further success for itself in a new product line. Sega, reeling after the Sega Saturn disaster, needed to make a statement, and the Sega Dreamcast aimed to do just that. The question would be whether it would be enough to salvage its hardware line (Sad spoiler alert: it wasn’t). Let’s take a look at how the software itself panned out, and what differences it made for the future of building a franchise. Also, if you are looking to see the data parameters I used, check back on my first post here.

Overall Metrics:

 78 games were released (12 for Nintendo, 19 for Sega, 20 for Microsoft, and 27 for Sony)

 50 out of 78 games received sequels (64%)

 25 out of 50 (50%) of games from the generation started a franchise and received a sequel

18 out of 25 (72%) received multiple sequels

 Interestingly enough, the Sega Dreamcast started the largest amount of franchises (6), followed by Microsoft (5), Sony (4), and Nintendo (3).

 Average review was listed at 75

 Average sales figure was just under 820,000 (when available)

                  

               (Fresh franchises were all over this generation. Credit: Mobygames)

Insight 1 – Welcome to the Premier Generation for Starting a Franchise

If you couldn’t tell from the overall metrics this generation was absolutely outstanding for franchise development. Pending a game made it to the one sequel stage (a relatively light 50% of all new franchises), there was a 72% chance that franchise would continue to develop more games, becoming a true established franchise. What we see above are two excellent examples – Halo: Combat Evolved, the killer app Microsoft needed to make a statement in the industry and Timesplitters, a time travel based first person shooter that was met with critical success and decent sales. The Halo franchise remains one of Microsoft’s premier franchises and essentially brought Developer Bungie to prominence. The Timesplitters’ series did not fare as well, but was one of the premier shooters of the generation, it just never seemed to be the blockbuster it was capable of in the eyes of the publishers. Regardless, this generation did extremely well with bringing forth new franchises for gamers to get involved with, many of which continue to today.

Insight 2 – Sports and Racing are the New Genre Winners

As you may recall, Platformers and Fighting games were huge winners in the 5^th generation. Unfortunately, the mid ‘90’s were the height of their fandom, and have since been fighting their way back for nearly 20 years to optimal relevance. While there may be intense fighting game tournaments like Evo, these genres simply do not command the dedication they once did, likely because they were so innovative back then, and now more commonplace in comparison. In fact, in this generation there were only 2 brand new Fighting franchise and 2 new Platformer franchises, but on the bright side all 4 received sequels. However, they clearly became an afterthought, as in comparison, the Sports and Racing genres generated 43 titles, over half of the entire library of games released at launch. Of the 48 games, 24 were brand new properties, with 13 of 24 receiving a sequel, and 11 of 13 receiving multiple sequels. The numbers alone show how powerful Sports and Racing were for the generation. The question then becomes what changed from the 5^th generation, and it likely dates back to my argument then. With this generation, developers had learned how to make successful Sports’ games in 3D, and could now bet big on new franchises. Furthermore, the 6^th generation was the last generation in which a few couple of interesting cultural dynamics occurred. First, this was the last true generation of the “Bit wars”, where users would argue over graphic capabilities tying to the preference of a console. While the 7^th generation would have some argument, this was the last one where the huge difference played a huge factor, as changes have been relatively incremental[1].

Second, this was the last generation where certain sporting licenses were available. I wrote about how the NFL 2K and NFL Blitz series made noise against the Madden franchise, but this all changed as in 2005 when EA got exclusive rights to the NFL license. This essentially eliminated competition, but back from 1999-2001 it was all wide open, giving the other franchises opportunities to take a shot. I have played some NFL 2K recently as well and have to say, it’s quite a bummer EA pulled that move. While a brilliant strategic move, I prefer having options. Even when EA later got the rights to the Blitz franchise, they really took the fun out of it, and made it much more of a simulation and less of arcade action. Oh well, still need to give them credit where credit’s due.

                                            

     (A Nintendo slam dunk. Credit: Wikipedia)

Insight 3 – Once again, Well Reviewed Games Get Sequels

This is a pretty self-explanatory nugget. Basically, the top 15 reviewed properties all received sequels, with scores topping out at 97 at 1 and 77 at 15. Afterwards things were more mixed, including games 16 – 18 all not receiving a direct follow up. Regardless, it just shows that this generation still relied on reviews, even if sales weren’t there. For interest’s sake, here is the breakdown of new properties for each platform by average review score:

Nintendo – 78

Sega – 75

Xbox – 74

Sony – 70

All pretty similar as you can see. Nintendo had the fewest new titles at 5, but all of them received sequels, which while it may seem like good news was not enough as quantity of games was far more important to this generation than quality.

Insight 4 – Sales Become the Key Driver for Sequels

Of top 26 best-selling games only 1 did not receive a sequel (regardless of new or existing IP). Sales topped out at 5,000,000 units at number 1 and 730,000 units at number 26. The one IP that did not receive a sequel was a spinoff to an existing franchise as well, so clearly companies focused on getting the nice return on investment to greenlight a sequel. What’s more compelling is that of the 25 sequels, 19 received an additional sequel(s) thereafter, 11 of which were brand new franchises. I find this insight to be crucial as to me it proves that there is both a better opportunity to make large sales for new franchises with the console launch and thus, to create a longstanding franchise. Genres were largely varied as well, and reviews came in at 68 or above, showing that a franchise can be born out of a console launch; moreover, being a new franchise during a console launch may also lead to additional sales, largely due to the lack of availability as well.

Insight 5 – First Person Shooters Appear and Begin to Make a Claim

As you may have noticed in the last iteration, First Person Shooters were unusually absent. The truth is that much like in the Sports genre, the FPS needed time to get an understanding of how they would work on consoles compared to PC counterparts. There were some excellent FPS games in the fifth generation (Goldeneye is a classic and Perfect Dark was an exciting new IP at the time of release) but once again, this specific genre would have been a risky bet at launch, mainly because analog control had not been fully understood. The 6^th generation was a totally different story, and thus we saw games like Timesplitters right from the start. Microsoft and Bungie, knowing the PC genre better, was able to capitalize on the new trend with Halo, which really paved the way for the genre to become the monolith it is today. This trend has naturally continued over time, as we’ll once again see in the next chapter of this study.

                              

                            (Unfortunately, he just wasn’t enough this time…Credit: Sonic Wikia)

Insight 6 – Sega’s Power Move Not Enough. Microsoft Stakes a Claim and Endures

As mentioned in the overall metrics, Sega launched the highest number of new franchises (6 out of 19, just under 33%). If this was evident earlier I’ll repeat it: Sega was on the ropes after the Saturn, and needed to shake things up. With the Dreamcast it brought forth 128 bit graphics while Sony was dabbling in 32 bits and Nintendo was stuck in cartridge based 64 bits[2]. Sega also provided the opportunity to connect via the internet, and had fun additions like mini games on the visual Memory Unit (VMU, the memory cart) along with others[3]. Sega was very ahead of its time in 1999, but clearly had brought forth a system that was unlike anything the company or consumers had seen before. With it came 6 brand new franchises at launch to help entice consumers. Unfortunately, it did not work out. Maybe it’s because Sonic was no longer the killer app he once was in 1991, maybe it’s because the franchises had too much of an arcade feel in an era where arcades were dying, or maybe Sega had finally used up its goodwill. Personally though, I have one overarching theory. Consoles are not cheap, and consumers knew the PlayStation 2 was only a little over a year away. While waiting a year for the PS2 seems fair, if not overwhelming argument, Sony had one killer app Sega just couldn’t compete with: the DVD Player. In the late ‘90’s DVDs had begun to supplant the VHS systems of yesteryear. The only problem though was that DVD players were pretty expensive. However, when Sony announced the PlayStation 2 would also be a DVD player along with a gaming console, it instantly became one of the cheapest DVD players on the market, and a huge value in comparison to the competition. So instead of Sega recapturing its former fans, Sony was able to entice them to wait as they looked to change their movie collections. Finally, Sony was able to build up goodwill with its original PlayStation, something Sega had lost. Sony had landed in the gaming industry with a boom, and supported its console extensively to ensure it would be around for the long haul, and clearly consumers took notice. Sega did everything right, but unfortunately it appeared too little, too late.

Microsoft on the other hand, was a bit of a surprise to the industry. Coming in at the end of the launches alongside Nintendo’s GameCube, to see Microsoft might have appeared odd at first. The PC behemoth had never seemed to want to be in the console wars. The PC gaming community was strong, but crossing over seemed a bit unorthodox. However, given Microsoft had seen games run well on its PCs likely gave it incentive to take a shot at the console market. Much like Sega, Microsoft needed to make a splash in order to get stay power for the long term. This came in the form of Halo: Combat Evolved, and while it’s not fair to say it was all due to one game, Halo was able to be the highest selling launch game of the generation. That includes both new and established franchises. Bungie and Microsoft essentially produced the must have title not only for the Xbox, but also for the entire generation. Furthermore, all properties launched without previous iterations on the Xbox received a sequel (6 for 6), and of the sequels, only 1 missed not getting an additional follow up. Combine this with solid 3^rd party support and the Xbox was put in the best position possible. Simply put, Microsoft came to play, and it certainly paid off. Now if Halo was not around things might’ve been different, but that’s a world we’ll never know.

Conclusion:

After reviewing this generation in depth, I’d deem it the “swing for the fences generation”. Sega put everything it could out there and failed, Microsoft did the same and succeeded. Nintendo relied heavily on its first parties to generate success but did not have the quantity its competitors boasted, and Sony said it didn’t care about reviews as long as there were more games for its console. What does that leave us with? An exit out of hardware for Sega, a relegation to market niche for Nintendo, a firm entry as market challenger for Microsoft, and pretty much complete domination from Sony. What I’ve neglected to bring up this entire time since my goal is to focus on the games is that Sony created the greatest selling console of all time, which in its lifetime went on to sell over 155 million units. Compare that to 24 million from Microsoft, roughly 22 from Nintendo, and a meager 9 million from Sega, and you see who the real winner of the generation was. Naturally, that might skew some of the Sony franchise numbers in its favor, but still, these franchises weren’t created at the end of the lifecycle, it happened during the reign, and so the insights still apply. Furthermore, this generation proved conventional norms wrong, as what seemed like an entrenched and developed industry was up ended by Microsoft, who not only finished off a longtime player in Sega, but put Nintendo in the precarious position of 3^rd place, something it had never experienced. Not to spoil anything, but Microsoft and Sony would soon learn that though Nintendo was down, it was certainly not out.

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[1] I say relatively because you could make an argument against the Wii’s poor graphics, but that’s for another time

[2] I mention cartridges because shifting to disc based games was a difficult process for Nintendo, essentially shifting the company’s strategy

[3] I could go on, but if you’re interested just Google the Dreamcast later