Chapter 232: A Great Earthquake in the Industry
With the official announcement of the transformation of its platform by Nebula Games, the world of video games was filled with excitement. Whether they were players, designers, or large manufacturers and distributors, everyone was frantically discussing this great event.
"Damn it! Did you hear? The Nebula Games Platform has been transformed into a comprehensive digital platform! All the work of game designers can be published on it!".
"How the hell didn't I hear? The key is the commission! It's only a 25% commission!".
"Is it true? It seems too mysterious, it can't be a scam, right?".
"What do you think? Nebula Games' official blog has said it, and the platform's contract terms have been published directly. The industry, including players, is watching closely. How could it be false? Besides, don't you think this looks like something Nebula Games had planned a long time ago?".
"Indeed! Minecraft attracted the attention of countless players, which skyrocketed the attention of Nebula Games, and the news of the platform's transformation was revealed at that moment."
"Actually, it was to be expected. Nebula Games has had a very smooth development in the last two years. I wonder if you have noticed any details about Nebula Games in the last two years. At first, Nebula Games' games were practically released on the main channels at the same time, but their own channels adopted a preferential strategy. In the last two years, whether it was It Takes Two or Dark Souls: First Flame, they were released first on the Nebula Games platform and, shortly after, on the channel platform."
"Yes! And this time, Minecraft and the previous Don't Starve have not even been uploaded to the channel platform. Even so, sales of Don't Starve are about to exceed 10 million, and Minecraft is on its way to 20 million, or even more. This at least proves one thing: the Nebula games platform definitely has a payment environment."
"I don't know what Alex is thinking. With such a low market share, won't he make money? And this defies the tacit rules of the entire industry!".
"It's a price war. Once the Nebula games platform is consolidated, they could adjust their commissions. But right now it is undoubtedly a good opportunity. After all, the Nebula games platform still doesn't have many games, so going now will surely get excellent recommendations. With such a large user base, profits are more than enough!".
In a NetDragon Games conference room, David Ma, the president, was listening to his subordinates present data about the Nebula games platform.
"The local distribution channels have always been divided 50/50. If Nebula Games simply wanted to enter the distribution channels market, there would be no need to adopt this approach. It would not only give up immediate profits, but it would also offend countless distributors in the industry. It would be like making an enemy of the entire distribution channel," David Ma said in a grave voice, drumming his fingers lightly on the table.
"But the most important thing is that Nebula Games has been advancing steadily in recent years, releasing blockbuster titles like Dark Souls, independent titles like Don't Starve, Fall Guys, and Valiant Hearts: The Great War, and medium-sized titles like Outlast and It Takes Two. Added to the explosive growth of Minecraft, Nebula Games has a solid foundation. Its user base is already consolidated, and even if, in the worst case, they lose the channel war, they will still be invincible," Jason Yao, director of the Platform Channels and Content Group, expressed his emotion.
"Yes, it's mainly because Minecraft is incredible! This game alone is enough to consolidate Nebula Games in the market." At that moment, David Ma couldn't help but sigh in frustration. The game has maintained its explosive momentum since its launch, and no one knows where it will end. This one game is enough to sustain Nebula Games for at least ten years, not to mention other developments. And that's not to mention a sequel.
This is despite the fact that Minecraft is a single purchase and costs less than thirty dollars, not counting the virtual reality version. But these huge sales have already made Nebula Games lucrative. And not only that, the income from a game does not only come from in-app purchases and sales. For some games, the income derived from intellectual property can even be more profitable than the game itself.
The block-building gameplay of Minecraft obviously has great development potential. The connection with the building block toys of the same name, as well as the game's MOD module, coincides with the linked toys released in reality. For example, by adding a QR code or a serial number, players who buy real action figures can reproduce their buildings in the game, and to distinguish them from common buildings, they can also add special features, etc.
Sitting in the office, at this moment, David Ma has devised many ways to generate income for Minecraft, and he only regrets that this game is not from his NetDragon.
"So, David, what's next?", Jason Yao asked looking at David Ma.
"We are temporarily stabilizing the independent game designers within the distribution channel, and reducing the commission is an alternative. In addition, we are not the most concerned. Probably even Aether Games is watching the situation. The real concern should be those pure distribution platforms without R&D capacity," David Ma said after a brief pause.
After Alex's announcement about the transformation of the Nebula games platform, Aether Games and NetDragon, two big industry giants, stayed on the sidelines. However, they were secretly implementing strategies aimed at external game developers and designers. This is mainly because NetDragon and Aether Games are different from typical distribution channels.
While they are the largest distribution channels in the country and their commissions represent a significant part of their income, they do not depend completely on distribution channels. However, the reaction of the pure distribution channels has been much more pronounced.
First, they went directly to a large number of independent game designers who had signed exclusive distribution agreements with third- and fourth-tier game developers. At the same time, some distribution channels directly criticized Nebula Games and Alex, alleging that they were undermining the video game market. This was mainly due to the excessive pressure that Nebula Games was putting on them.
If it were just another game platform, they would not get involved in such a big price war. Without users or resources, how can you attract game designers to your company? Is it only because your commission is low? They need to be able to sell their games!.
But Nebula Games is completely different. Whether it was resources, users, or financing, it was more than enough to support their entry into this channel war.
For a while, the entire gaming community was outraged.
And Alex, who was in the eye of the storm, was quite calm at that moment.
A meeting was underway in the Nebula Games conference room.
"First of all, you all know that Minecraft has been a great success, but this is only the beginning. I believe that the potential of Minecraft is not limited to this. With more and more players and a deeper investigation, this game will have a long life, so the relevant operations must be done well."
"This includes programs that summarize the players' game history and maintain the relevant community environment. All of these are things that we will do. We can also consider the needs of players and mod creators as appropriate, but everything must revolve around the two fundamental points of 'freedom' and 'creation'," Alex said, looking at the crowd.
After a pause, Alex continued: "In addition, I believe that everyone is aware that Nebula Games is currently facing an important challenge. Therefore, we will develop more complex games and accelerate our progress. If there is a shortage of staff, please contact HR directly to specify the vacancies and conduct the interviews. I will make the final decision on the interviews."
Alex's words excited everyone present. Without a doubt, Nebula Games' twist and its unprecedented break with the norms of the video game channel greatly excited the entire team.
As a game developer, it is undeniable that no one dislikes the authoritarian approach of the current channel. And now, without a doubt, Nebula Games becomes a dragon hunter. This real-life RPG is, without a doubt, a source of illusion for the entire team.
"Next, let's talk about our plans. I will be clear: during the next period, we will focus on large-scale games to publicize the Nebula Games platform to players," Alex said seriously, looking at the crowd.
What are the pillars of a game platform?.
Large-scale games?.
Not really. The pillar of a game platform is, in fact, a variety of independent minigames, as well as small and medium-sized games. These include games like Valiant Hearts: The Great War, Don't Starve, and It Takes Two.
But supporting a platform requires more than one or two games of this type. Therefore, it is necessary to involve external developers.
How can we attract external developers?.
Nebula Games is currently working on this approach. First, they offer low commissions and, second, they attract a wider audience.
And how can we attract players?.
The answer is simple: blockbuster games that attract players and exclusive titles.
"But before that, Eric, you should continue your research on new AI technologies, which will be applied to new games," Alex said, looking at Eric.
"Very well, that's all. John, stay, and the others can go back to work."
In the conference room, John was informing Alex about the latest events.
"Alex, there have been many smear campaigns online, including some exaggerated publicity from trolls. We have already signed contracts with the law firms Sanyuan and Yihua and are preparing to file a lawsuit," John said.
Nebula Games has not yet established its own legal department, mainly because it does not need it yet. Therefore, all legal matters are outsourced to two other companies, both specialized in civil, commercial, and cybersecurity.
"You will be responsible for that area. As for the operations and promotion of the platform, the external game designers and manufacturers must also redouble their efforts."
Alex nodded and explained some key points to John. Then, he exhaled slowly and took out his phone to check it.
Various industry chat groups were flooded with +999 messages. Meanwhile, many designers with contact information in the video game industry were privately asking about news related to the Nebula Games platform. The official blog was full of information of all kinds.
After reflecting for a moment, Alex opened the official blog, edited a message, and sent it.
"I will just say a few words about the transformation of the Nebula Games platform into a comprehensive digital platform."
"First of all, the transformation of the platform is quite reasonable. The Nebula Game platform has always been committed to providing players with a better gaming experience. We offer a positive community environment, an enriching creative workshop, a review system that provides feedback on each game, cloud saved games, and trophy and achievement tracking. We always strive to provide players with the best experience."
"As for the commission rate, which has worried competitors and players in the industry, the answer is very simple. Nebula Games does not intend to enter a price war to eliminate the competition and then raise prices. Our 25% commission rate will remain unchanged. In addition, for games with excellent player reviews, the commission rate will continue to decrease, to a minimum of 12%."
"As for whether we can generate income, I can only say that, with the current platform and community operations, after deducting costs and using the current commission rate, we can expect a profit of approximately 7%. As we grow, this profit margin can reach 9%-10%."
"The Nebula games platform has never sought to monopolize the so-called game distribution channel. Instead, we want to provide more developers with a more flexible development environment and offer more interesting and fun games to players."
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