Wednesday, August 9, 2017

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 6th 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 5th 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 5th 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 6th 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 7th 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 6th 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 3rd 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 3rd 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.





[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

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