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Most of the startup learning curve is a learn-on-the-job endeavor. Nothing replaces the real experience of managing your own company; however there are some lessons that are worth learning ahead of time.
Smart entrepreneurs learn to pick out which teachings should be followed and which should be discarded.
This is my common response I send when friends ask for a book list. I actually think blogs are far more important because they're real-time and often include comments that can help the reader learn the subtleties and exceptions of an argument. As I've said before, instead of reading this blog, I highly recommend these:
But there's something nice about books. Books are consumed in a different setting. They linger on bookshelfs. They get highlighted and earmarked. If you're new to the startup world, I would recommend reading and re-reading the following 6 books. In fact, I would go farther and say that you should not start your company until you read through this list:
The 6 best startup books to read before starting your company
A lot of this book is understanding how to put luck on your side. I put this book as first though because it can help you understand if you want to be an founder or a manager. Founders are a special breed. Peabody claims it's the B- players that like to hack systems so that they get 80% of the result for 20% of the efforts. Managers are early employees, A+ players, that can take a founders vision and create something remarkable. It's helpful to understand which one you are. And it's helpful to know how luck and intelligence work together.
As he says: "I was smart enough to realize I was getting lucky"
If you've never built a product or if you're a non-technical MBA, start here. The purpose is to learn the basics of agile development early on.
The m.o. of 37 Signals is:
"We believe software is too complex. Too many features, too many buttons, too much to learn. Our products do less than the competition – intentionally. We build products that work smarter, feel better, allow you to do things your way, and are easier to use."
Guy will show you how to start the company and how to raise money. This is your replacement for whatever textbook you used in your entrepreneurship class. It's a nuts and bolts guide to what you do at each stage of start-up process. Kawasaki is great about helping you understand how investors will view you.
One great example, he directs you against putting a competitive profile slide in your pitching deck that shows your features vs. their features. He's seen this enough times to know it's a useless cliche: the entrepreneur always claims to have more features than the competition. His solution is to list out your unfair advantages and their unfair advantages in order to prove you have a reasonable perspective on your market. Good stuff.
From my vantage point, Steve Blank is this year's favourite author, blogger, professor, and speaker. I know that some venture capitalists give his book out to all newly-funded management teams.
Blank outlines a method called customer development. In his words:
"Your startup is an organization built to search for a repeatable and scalable business model. Your job as a founder is to quickly validate whether the model is correct by seeing if customers behave as your model predicts. Most of the time the darn customers don’t behave as you predicted."
Rework is a collection of essays from their wonderful blog, Signals vs. Noise. Reading it as a whole is a nice way to learn about how to think of your startup as a business that needs to make money. These guys are pro-bootstrapping, pro-profits, and anti-venture investing. They're a nice counterpoint to much of the startup literature that focuses on how to raise money as the primary goal in the early part of a company.
This is a good last book for this list because it gives you insight into founder culture. One of the most interesting (and unexpected) aspects of being in Y Combinator is that we got to see so many other founders working on their startups. Entrepreneurship can be a lonely endeavor and it's nice to have some perspective on how other founders manage ups and downs while executing at very high levels. The early days of the startup are the most interesting and unlike anything that comes afterward.
In her words:
Quote:
"This is what productivity looks like. This is the Formula 1 racecar. It looks weird but it goes fast."
Those are my 6. Would love to hear in the comments what other books you recommend.
“Before I begin, our guys are running around backstage trying to figure out what’s up. Why? There are 570 WiFi base stations in the room… would you like to see the demos? All you bloggers need to turn off your base stations, put your notebooks down.”
The iOS in context
- “Now, there’s another major milestone we’re about to hit: this month we will sell the 100 millionth iOS device.” Applause. “That’s iPhones, iPod touches, and iPads, 100 million. There is definitely a market for your applications.”
Cisco iOS Cisco IOS (originally Internetwork Operating System) is the software used on the vast majority of Cisco Systems routers and current Cisco network switches. (Earlier switches ran CatOS.) IOS is a package of routing, switching, internetworking and telecommunications functions tightly integrated with a multitasking operating system. The first IOS was written by William Yeager.
isco IOS® Software releases deliver cutting-edge technologies and industry-leading Cisco IOS Software functionality. Continuously adapted to meet evolving business needs, the full portfolio of Cisco IOS Software releases is tailored to address the requirements of specific markets and customers. Sound software development, quality assurance, and rapid time to market are fundamental to the success of Cisco customers' networks, and the Cisco IOS Software release strategy reflects these needs. This strategy, designed to minimize operational spending, maximize return on investment, and improve business productivity, assures the reliable delivery
This year WWDC sold out in 8 days. There were over 5,200 attendees from 57 countries.
Afterr dicussing the iPad and the way it has changed the way we “experience the web, email, photos, maps, video,”
Steve Jobs went on to tell the audience that over five million iPads have been sold to date, one every three seconds. The iPad is now in ten countries.
There are now 8.5k native iPad apps in the App Store… they’ve been downloaded 35 million times. That’s about 17 apps per iPad.
Steve talks more about the business case for iPad apps He showed off iPad app Elements and referred to an email stating that they “earned more on the sales of Elements for iPad the first day than on the past 5 years of Google ads on periodictable.com” he went on to say that “This is what we LOVE to hear from you guys.”
In terms of the iPad he said that “As you know, you can create highlights, you can also make notes. Now you can make notes. In addition, we’ve added a control to just tap and bookmark a page — under ToC you’ll see all the notes, highlights, and bookmarks.”
They also announced PDF support in iBooks After Big applause he described how you can now view PDFs. “We’ve put a little selector at the top — books and PDFs. You get a whole new bookshelf just for PDFs, they just look gorgeous.”
Running a small side business can provide a few more options: you don’t have to show up at a set time and you can use skills you already have. Not all will be perfect for everyone, of course, and I’m sure that you’ll have a few ideas of your own after reading this list. If you’d like to share any other business ideas, please add them in the comments.
Selling collectibles — From antique books to teddy bears, there are plenty of opportunities to buy and sell collectibles. It’s important to familiarize yourself with the collectible of your choice but if you choose something that you’ve been collecting for a while, you’ve got a head start.
Locating apartments — It can take time to sort through apartment listings, but you can make some money by finding the perfect apartment for a renter.
Baby proofing — New parents often prefer to bring in an expert to make sure their home is safe for a new baby.
Calligraphic writing — If you’ve got elegant handwriting, you can pick up gigs writing or addressing wedding invitations, holiday cards and more.
Selling coupons — Search on eBay for coupons right now and you’ll see thousands of listings for coupons. It’s just a matter of clipping and listing what you find in your Sunday newspaper.
Pet training — A surprising number of people don’t know where to start in training a pet. Even teaching Rover simple commands like ‘Sit’ and ‘Stay’ can bring in a few dollars.
Running errands — A wide variety of people want to outsource their errands, from those folks who aren’t able to leave their homes easily to those who have a busy schedule.
Researching family trees — Amateur genealogists often call in experts, especially to handle research that has to be done in person in a far off place. If you’re willing to go to a local church and copy a few records, you can handle many family tree research requests.
Supplying firewood — The prerequisite for selling firewood is having a source of wood; if you’ve got some land where you can cut down a few trees, you’ve got a head start.
Hauling — As more people trade in their SUVs for compact cars, hauling is becoming more important: people have to rent a truck or hire a hauler for even small loads.
Image consulting — Image consultants provide a wide variety of services, ranging from offering advice on appearance to teaching etiquette.
Menu planning — For many people, the trip up in eating home-cooked or healthy meals is knowing what to prepare. Meal planners set a schedule to solve certain dietary problems.
Microfarming — Cultivating food and flowers on small plots of land allows you to sell produce easily.
Offering notary public services — Notary publics can witness and authenticate documents: a service needed for all sorts of official documents.
Teaching music — If you’re skilled with a musical instrument, you can earn money by offering lessons.
Mystery shopping — Mystery shoppers check the conditions and service at a store and report back to the store’s higher-ups.
Offering research services — Just by reading up on a topic and compiling a report on it can earn you money.
Personal shopping — Personal shoppers typically select gifts, apparel and other products for clients, helping them save time.
Pet breeding — Purebred pets can be quite value, especially if you can verify their pedigree.
Removing snow — During the winter months, shoveling walks can still be a reliable way to earn money. You might be asked to take care of the driveway too.
Utility auditing — As people become environmentally-concious, they want to know just how efficient their homes are. With some simple testing, you can tell them.
Offering web hosting services — Providing server space can be lucrative, particularly if you can provide tech support to your clients.
Cutting lawns — An old standby, cutting lawns and other landscaping services can provide a second income in the summer.
Auctioning items on eBay — Want to get rid of all your old stuff? Stick it up on eBay and auction it off.
Babysitting — Child care of all kinds, from babysitting to nannying, can offer constant opportunities.
Freelance writing — If you’ve got the skills to write clearly, you can sell your pen for everything from blogs to advertising copy.
Selling blog and website themes — Do a little designing on the side? Customers that don’t want to pay full price for a website will often pay for a template or theme.
Offering computer help — Particularly with people new to computers, you can earn money by providing in-home computer help.
Designing websites — It may require a little skilled effort, but designing websites remains a reliable source of income.
Selling stock photography — For shutterbugs, an easy way to put a photography collection to work is to post it to a stock photography site.
Freelance designing — Check with local businesses: you can provide brochures, business cards and other design work and get paid a good fee.
Tutoring — Math and languages reamin the easiest subjects to find tutoring gigs for, but there is demand for other fields as well.
Housesitting / petsitting — Stopping in to check on a house or pet can earn you some money, and maybe even a place to stay.
Building niche websites — If you can put together a site on a very specific topic, you can put targeted ads on it and make money quickly.
Translating — The variety of translating work available is huge: written word, on the spot and more is easy to find even on a part-time basis.
Creating custom crafts — No matter what kind of crafts you make, there’s likely a market for it. Etsy remains one of the easiest places to sell crafts.
Setting up a wi-fi hotspot — With a little bit of equipment, you can set up a wi-fi hotspot and charge your neighbors for the access they’ve been ‘borrowing.’
Selling an e-book — You can write an e-book about almost anything and put it up for sale online.
Affiliate marketing — If you’re willing to market other companies’ products, you can earn a cut of the sales.
Renting out your spare room — From looking for a long-term roommate to listing your guest room on couch surfing sites, that spare room can make you money.
Offering handy man services — Handling small household tasks can provide you with plenty of work, although you’ll probably be expected to have your own tools.
Teaching an online class — Share your expertise through a website, an online seminar or variety of other methods.
Building furniture — For those with the skill to create handmade furniture, selling their creations is often just a matter of advertising.
Providing personal chef services — Personal chefs prepare meals ahead of time for customers, leaving their customers with a full freezer and no mess.
Event planning — From planning corporate events to bar mitzvahs, an event planning business can require plenty of work and offer plenty of pay.
Installing home safety products — Particularly as Baby Boomers age, people able to install handrails and other home safety products are in demand.
Altering / tailoring — If your sewing skills are up to par, altering garments is coming back as people try to stretch more wear out of their clothing.
Offering in-home beauty services — Hair cuts, makeup and other beauty services that can be performed at home have a growing demand.
Business coaching — Helping others to establish and develop their businesses can provide many opportunities to earn money.
Writing resumes — Writing resumes can provide a reliable income, especially if you can put a polish on a client’s credentials.
There are plenty of offers that claim to provide you with the opportunity to make thousands of dollars a week. Unfortunately, none of these businesses will provide that sort of income, but they aren’t scams either. They were chosen because they all require a minimum investment to get started — some require nothing more than a flyer advertising your business. Even better, if you do enjoy any of these businesses, there is a potential with most of them to continue to expand — perhaps even to the point of going full time.
Orange has announced that it hascome to an arrangement with Apple to sell the iPhone in the UK, whereit will be the only network other than O2 to sell the iPhone 3G and 3GSin the UK. Orange announced the deal in a short statement, although details on pricing tariffs and availability are yet to be revealed.
"OrangeUK and Apple have reached an agreement to bring iPhone 3G and 3GS toOrange UK customers later this year. Orange globally now offers iPhonein 28 countries and territories," said the statement. "Orange,which has the largest 3G network covering more people in the UK thanany other operator, will sell iPhone in all Orange direct channelsincluding Orange shops, the Orange webshop and Orange telesaleschannels, as well as selected high street partners.
28th September 2009, 08.30am:Orange UK and Apple have reached an agreement to bring iPhone 3G and3GS to Orange UK customers later this year. Orange globally now offersiPhone in 28 countries and territories. Orange, which has the largest 3G network covering more people in theUK than any other operator, will sell iPhone in all Orange directchannels including Orange shops, the Orange webshop and Orangetelesales channels, as well as selected high street partners. Apre-registration site for customers to log their interest has alreadybeen launched at www.orange.co.uk/iPhone. More information on pricing, tariffs and availability dates will be released in due course.
O2 has responded to the news that Orange will be stocking the iPhone by confirming it will continue to stock the device. "We'reproud that we've been able to offer an exclusive iPhone deal to our 20million customers for the last two years. We always knew that iPhoneexclusivity was for a limited period of time, but our relationship withApple continues and will be an ongoing success," an O2 spokespersontold TechRadar. "We have over 1 million iPhone customers and they remain very important to us. "Weaim to offer our customers the best devices on the market, includingbecoming the home of Smartphones and we are really pleased to now addanother device in the Palm Pre. "We also offer award-winningcustomer service and benefits, which is why more people choose O2 thanany other network in the UK." Network blow O2 has recently been under fire for failures in its data provision,and this new announcement will be another blow to the network as it'sjoined by Orange in stocking both the iPhone 3G and the 3GS. Thespeculation regarding O2 losing exclusivity of its iPhone range hasbeen rife for months, although it was expected that only the iPhone 3Gwould be offered to other carriers, with O2 retaining its status as thesole stocker of the 3GS. O2 will still be the exclusive stockistof the new Palm Pre when it debuts in the UK next month, but given thisis over 10 months since the device was announced it's not going toattract interest in the same way the iPhone has over the years. We'restill awaiting news on whether Orange will drop the price of the iPhonecompared to O2, but we'll bring you news as and when we get it.
Orange recently revealed plans to merge its UK network with DeutscheTelekom's T-Mobile to create a business with 28.4 million customers. If given the go-ahead, it would be the UK's largest provider, overtaking Telefonica's O2, with about 37% of the mobile market. "Thatwould be good for Apple," said Mr McQueen. "Then, around three quartersof the UK market will then have access to the iPhone." O2 hasoffered the handset in the UK since its launch in 2007. In February, itsaid it had sold more than one million of the handsets. The launch of the latest iPhone 3GS in June significantly boosted sales, with many stores running out of stock. The phone has also allowed the firm to win subscribers from other networks, according to analysts. However,the rise of smartphones - which have the ability to surf the web andsend e-mail - has put a burden on the O2 network, according to MrMcQueen. "IPhone users to tend to use data quite extensively - perhaps more than anticipated," he said. "Orange has always a good data network and if the T-mobile deal goes through it would allow them to share the burden." O2 will continue to sell the handset in Britain, alongside iPhone rival the Palm Pre. The Palm phone, described by some as an "iPhone killer", will be available exclusively to O2 from 16 October. O2 said that it always knew that its exclusive deal was for "a limited period of time". Thenew agreement with Orange brings the UK into line with many othercountries around the world which have multiple operators that offer theiPhone. In countries where exclusive deals still persist, suchas the US, some customers choose to "unlock" their phones using thirdparty software so they work on an unlicensed network. However,Apple has warned that the practice can cause "irreparable" damage to ahandset and has engaged in a game of cat-and-mouse, releasing periodicsoftware updates which prevent unlocked phones from working correctly.
The past few weeks have come with two major reveals for the weirdoswho follow online social networks. The first was big news. Twitter’sinternal documents leaked and the identity-crisis of earth’s most popular start-up is now public. The second was more under the radar but just as important. In a memo that went out to staff, the CEO of MySpace admitted that their users are caught between three competing notions of what MySpace is or should be.
Twitter and Myspace are different companies in different markets butthere is a lot of evidence to suggest that they share, and will alwaysshare, the exact same problem. MySpace and Twitter are hugely popular for uses neither company anticipated.The mission of each company is so vague that their products arestretched and molded into a variety of different uses. Instead oftargeting and building their business around one of these users they take their sudden popularity as a sign they have a killer product. They don’t.
Scale is Everything
When an industry is in transition or an idea like ‘social networking’ is still being fleshed out, getting explosively popular without knowing the nuances of why is a curse.Twitter is young but in my opinion, it’s already too late. It has growntoo big, too fast, for too many different purposes. It will take 2 orthree years but Twitter will be lapped by a variety of similar services with focus and actual business models; how Facebook developed in response to MySpace sheds light on what kind.
How MySpace Scaled
Since its inception MySpace has gone after users as if they werePokemon’. MySpace managers ran competitions on sign ups and theemployes used a slew of methods to capture. The result was a sprawlingnetwork of users but by 2005, it seemed to be working. If you looked at the stats, MySpace was an utter phenomena. It destroyed Friendster and after it was purchased by Murdoch it was getting all types of press and valuations. What the raw stats didn’t tell you is that user habits on the site looked something like this:
The problem with this way of scaling is simple. When a new cultural practice, like ’social networking’, is in the grass roots stages of development you can’t assume that people are going to your site because they like it.Your competition doesn’t really exist yet. What they might like are certain aspects of your productor they might be using parts of it in ways you never designed. The onlyway to address this is to study your users obsessively, focus on aparticular experience, then update your product accordingly.
Because MySpace grew in so many different markets at a single timeand gave users so much space to use the service how they liked, they’ve never been in a position to either watch or effectively control this experience. How do you update a product without knowing its target? You don’t. MySpace at its height and the current MySpace look remarkably similar, it lost control to its users. It has gone from being hailed as one of the best acquisitions ever made to a drain on News Corps portfolio. The results look like this:
How Facebook Scaled
When it comes down to it the mechanisms of MySpace and Facebook are not that different.Thepieces and concept are nearly the same. Both are constructed of userprofiles, avatars, walls, interest spaces, groups, photo capabilities,and a friend confirmation/listing process.
Facebook distinguished itself philosophically and pragmatically. Zuckerberg’s biggest insight into designing the site was that you are online who you are in real life. Facebook was one of the first social networks to emphasize genuine identityinsofar asthey required full names, university email addresses, and deleted accounts that used aliases. The second was pragmatic. Facebook launched in a single target market. In this case, of course, it was Harvard.
What this enabled was a less abstract more manageable mission.Instead of having to define what an ‘online social networking space’was supposed to be for everyone, Zuckerburg just had to answer forHarvard. As Facebook became popular on campus, he was able to see directly into how his peers interacted with the site and was able to update the product to help them use it more efficiently. Becausethey were all college students, the feedback he was getting was focusedand nuanced. Having less users also meant they could redesign theirentire product without pissing off disparate subsections. The resultwas an incremental evolution. The Facbeook that started at Harvard looks radically different than the one we use today. It worked.
How Twitter Scaled
Twitter grew much like MySpace. It ran competition for signing upusers, aliases were allowed, and it grew in multiple markets at theexact same time. Twitter started as a group SMS texting service then became popular for something wholly different. By restricting the length of a message the site inadvertently addressed one of the oldest problems in group communication. How do you hear many voices at a single time? Twitter’s answer is dead simple. 140.
This little restriction has produced a fascinating, highly-addictive product. If you look at the stats, Twitter seems to be working. It’s one of the most popular websites in the world and now has an excess of 44 million members.For those who invested or employees that had stock options, it must bean incredible feeling. I have grown to love Twitter but in my opinion we are rapidly approaching its peak.Its parallels toMySpace in 2006 are explicit. Twitterhas been bootstrapped for a vast number of uses and while its exciting to watch, its service is not containable . Like MySpace, Twitter is getting pulled in a variety of directions:
Why Twitter Will Dissolve and Turn into Detroit
The ability to hear and communicate messages with a group is what brought Twitter its initial wave of users but the real allure of Twitter, the reason it has caught the imagination of the press and millions of users, is something much more abstract. On Twitter, you can hear a public. Of course, there isn’t just one public, there is an infinite number.Whether it’s your country, your college, your city, or a shared nicheinterest like nyc media,everyone belongs to many publics and most everyone has a natural curiosity about what’s happening inside of them.
Twitter offers a way to manage how you see these publics. The problem is that its 140 character restriction is a blunt instrument. The site does not reflect the potential or nuance in which a public can speak to itself online.
Twitter as a network is an ungodly mess. From the onset, the site has allowed users to register aliases on custom URLs and because of it, usernames are inconsistent and confusing. It’s hard to find people who you know and its often even difficult to deduct wether that person is who they claim to be. Twitter is mobbed by impersonators,some of them hilarious, others manipulating. Twitter addresses thisissue recently by creating a ‘Verified Account’ stamp, its sloppy butmore importantly, perpetually incomplete.
There are a host of other problems related to reputation and maintaing users but the biggest issue concerns its identity, which is also where the leaked documentsgot interesting. Twitter employees are so clearly uncertain about whattheir product is even doing. Shots at it swayed from, “Twitter is fordiscovering and sharing what is happening right now,” to, “Twitter makes you smarter, faster, more efficient and more powerful.”
Twitter became popular before it had a mission. What this means is that its employees and investors will forever be trapped in boardrooms having these inane cyclical discussions about its identity. Twitter will either perpetually be simple insofar as its millions of users will have to hack the service to reflect their own values or it will roll the dice on a focus, put the site through chronic redesigns, and risk a mass user exodus.Either way its top talent will likely get frustrated and leave thecompany. Its top users will drift to something else then jump.
How Twitter will Resolve
The first thing to realize is that thereprobably isn’t going to be just one product to replace Twitter, therewill be several and they will battle it out or find niches. I see theirdesign following two trends with a potential for a hybrid.
The first trend is a service with the most minimal centralization possible. Both Dave Winer and Anil Dash have discussed plans for such a product. Winer calls his the RSSCloud and Dash describes the project more generally as the Push Button web. The RSSCloud grew from discussions with Jay Rosen over frustrations with Twitter and how its users have been bootstrapping. The line of thought is that your data belongs to you, not Twitter, and you should be able to use your data how you like with as little brand interference as possible. The proposal is to build RSSCloud, a loosely coupled service that will push your data to any website in real time.
The second is a product that is centralized but has an elegant way of organizingits content and attracting users. This is a product that would look andscale much like Facebook. It would start in a single target market anddevelop as a place for users to hear and communicate to thatpublic. Ideally it would begin in a cloistered network like auniversity where establishing members is as easy as checking their .eduemail address.
Addressing what’s wrong with Twitter isn’t going to come from thin air. It’s going to take a lot of time, development, and platform competition.
Many will soon be working on this, myself included. What will fill the blank is likely to define modern news production.
It’s fair to say that the founders of Metacritic never foresawit generating the attention it has attracted. Intended as a way ofseeing at a glance whether a game was worth buying, it’s now used asa measure of game quality by the largest publishers, developers andretailers.
John Riccitiello has used its scores todefine EA’s business strategy to analysts; Steam prominently displaysthem on its product pages; developer Frontier uses them for salesforecasting.
And this simple set of numbers is deemedresponsible for many industry ills, from over-examination of reviewscores to influencing developer royalties. “I’ve heard thatpublishers will try to put a step in royalty levels depending onMetacritic scores, or some sort of Metacritic-related compensationstructure to a deal,” says Andy Eades, development director atRelentless.
Metacritic is still edited by just one man,Marc Doyle. But his focus remains very much on the reason why it wasestablished in the first place. “I really see myself as a kind ofgatekeeper to tell people that these are the games you should be payingattention to,” he declares. His role is to gather scores andcomments for every game released in the US, choosing whichpublications are included and concocting the formula that combinesthem into a single number.
A night owl, he works into thesmall hours from his office in Los Angeles. And though it’s nowowned by CNET, Metacritic is still his baby, Doyle co-founding itafter studying at USC Law School. There he met Jason Dietz,who came up with the concept and name in 1999. They launched itin 2001 and sold it in 2005.
Metacritic isn’t the onlyinternet game review score aggregator. The other major site is GameRankings, also owned by CNET. Doyle and GR’s editor, Lee Alessi,“talk to each other,” but have different methodologies. GR’sscores are based on averages, while Metacritic weighs publications’scores differently, depending on Doyle’s opinion of their prestigeand quality. But he won’t reveal how.
Both work on the sameprinciple, however: consistently include enough reviews fromenough publications across enough games and the results will smoothout. “A big game – one of the GTAs – I know Edge is going toreview it, and I know an easy grader will too, and so the biggames will get the same treatment,” Doyle explains. “If I includeall your reviews and all theirs, it all works out.”
Certainly,viewed broadly, the games at the top of the scale are generally thebest games around, and the bottom ones certainly aren’t. Thechallenge for Doyle [pictured above] – and the main source ofcontroversy – is in his selection of publications. The originalbasis was: “Who is the most credible, who has the best reputation,the best analysis?”
But now, he says: “It’s essentiallyabout whether gamers are going to them because they’re reliable foradvice on what games they should buy. I really don’t have to do toomuch research because they just come to me. I check out their scoringmethodology, send out a questionnaire asking when they launched,how many reviews they cover a week, total reviews done, aboutstaff – all the things I’ve learned over the years that I have todo.”
Clearly, much credence is placed on metascores, buttheir use as a metric for business decisions also depends on whetherthere really is a causal relationship between scores and sales.“There’s anecdotal evidence both ways,” says Doyle. “I know thatcertain publishers have done very comprehensive studies and they’vebeen able to highlight certain types of games and certain types ofgenres for which predictability will be much higher – racing,sports and certain types of action games, certain types offranchises. Others you just don’t know, like why did the Ben 10game sell through the roof? I don’t know. It’s not sopredictable, it’s not scientific or perfect.”
Activisionhas made such studies. Executive VP of publishing Robin Kaminsky saidat the 2008 DICE conference that higher-quality games, based onscores from Game Rankings, on average sell more, and that for everyfive points above 80, on average, sales double. But she notedthat many games buck this trend, and that the largest publishershave found that the greatest sales growth tends to occur in gamesscoring in the region of 70 compared to those scoring 80 ormore.
She also presented 18 products achieving scores of90 or more in 2008 and 2007. Only two were projected to sellover seven million copies, while seven sold less than a million.Overall, 12 out of the 18 sold less than two million, afigure that marks a rough break-even point for a triple-A game. Inother words, there is a correlation but quality does not assuresuccess.
And yet Metacritic is still gaining in stature, apoint illustrated by the fact that Doyle is receiving increasingcorrespondence from publishers. “If I’m missing something,publishers contact me and ask whether there’s a bias or a systematicissue – ‘Why are you covering this publication and not another?’”
Indeed,many PRs are strongly affected by a greater use of metascores aswell. Certainly, we’ve spoken with a PR for a major publisher whoexpressed huge frustration with the stress their companies place ongetting the best they can. “PRs who haven’t been in the industry verylong will get angry when certain new publications that I know haven’tearned their reputation aren’t included, or some local daily paper,”says Doyle.
“I say, ‘Guys, they haven’t made it yet’ –I try to be as kind as I can because I know sometimes they haveclauses in their contracts that make them affected by metascores interms of bonuses or penalties.”
The practice could be subtlychanging the relationship between developers and publishers, too.“You really want a producer to focus on doing everything that’s rightfor the game, not to be focused unduly with the review score it’sgoing to achieve,” says Splash Damage’s Paul Wedgwood [above].
“Ifhis bonus is wound up at a score of 70 or 80, he might betempted to err on the side of caution rather than taking risks andpushing for an 85 or a 90. Look at projects like BioShock,for example – on paper that isn’t something any sane producer wouldtake on, but it’s obviously well justified by its review scores.”
Furtherto this, many developers of games for broader markets feel thatmetascores are unrepresentative of their work. “If you look at familygames and kids’ games, they consistently score as many as tenreview points lower for, dare I say, what’s similar quality,”says Frontier’s David Braben. “It’s actually really hard to make areally
good kids’ game.”
For Wedgwood, developers canbe more directly affected by a poor metascore. “The negative sideis if developers are penalised for achieving low scores despite nothaving control over the resources and schedule for the project.”
Doylethinks so too: “If they’re having to achieve a certain metascore withthe same budget, that’s disturbing.” But it depends on therelationship between developer and publisher as well, as Wedgwoodsays: “Obviously, if the developer is wholly or partially funding agame or has a strong relationship with the publisher and can determinewhen it’s going to be released and how much it’s going to cost tomake, it’s their responsibility. And I think in that situationit’s quite common for a publisher to have an expectation for quality.”
Indeed,Wedgwood is a proponent of the idea that publishers should offer abonus related to earning certain metascores: “I think that reallyshows confidence from the publisher, saying ‘irrespective ofwhether or not this is a commercial success we’re going to pay you abonus just for achieving a certain review score’ – that’s a realincentive.”
But Braben [above] argues that developers have hadincentives all along. “Think of sales as a great big glorifiedMetacritic,” says Braben. “There’s been a lot of earnest talk aboutusing Metacritic and Game Rankings to incentivise, but the one reallyobvious way of incentivising things is royalties. EA has giveninterviews in which it mentioned average Metacritic scores as being ametric of the quality of its games. The problem is, why is itquoting that and not sales success?”
Eades agrees,reminding us that game companies are businesses: “There’s no pointin getting nine out of ten, ten out of ten and then not sellingenough products to justify a sequel.”
Which brings us back to the fact that Metacritic was only ever meant to be a general
guideto what to play for a game-buying public. For as long as everyone inthe videogame industry remembers that at the heart of it are one man’sdecisions, it could have value as just one of many other ways ofmeasuring a game’s overall success.
And perhaps, among allthe fears that a new focus on quality by publishers has emerged, thisis a change for the better. Wedgwood certainly agrees: “Wouldn’teverybody rather be working for a publisher that’s more concerned aboutquality?
I am glad NEC is back with some new models, but i dont think there will be a good business for the company, since i dont see any meaningful progress of the models
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UK videogame industry leaders have demanded greater ties betweenbusiness and academia to ensure that Britain's games developers remainglobally competitive. But will any of them step forward to foster therelationship?
At games industry conference the Westminster Media Forum, held inLondon this week, Mary Matthews, Strategy and Business DevelopmentDirector at game developer Blitz, said that ineffective training isholding the industry back.
“We can’t do what we want to do because we can’t find the right people,” she said.
Yet, acording to Kate O’Connor, Executive Director of Policy andDevelopment at Skillset, an industry body for skills and training, UKuniversities already offer 80 videogame-related degree courses. Nonehave any industry recognition, however.
Paul Harris, Professor of Screen Media at the University of Abertay,Dundee, agreed that accreditation by game design firms is crucial. Hesaid it is the best way for universities to ensure that students’skills match firms’ requirements.
Matthews also called for a similar frequent refreshment of the curriculum.
Matthews has other ideas too, such as recruiting potential gamedesigners from the age of 14. In her view, this would help kidsestablish much earlier a link between enjoying games and developingthem, thus steering more designers into the industry.
However, no one appears willing to take responsibility for theproposals. Instead, both industry and academia are hoping thegovernment will do the job for them.
Margaret Hodge, Minister for Culture, Creative Industries andTourism, said at the conference: “The games industry must do more toencourage students to choose the right qualifications [for videogamedesign], such as maths and physics.”
The government, she said, also has plans in the pipeline to createof centres of excellence for videogame development where gaming brainscould unite to develop the next smash hit.
Steve Jobs, Apple's CEO, has revealed that over 160 games will beavailable to download for the iPhone upon launch of the devices AppStore, in a phone call with the New York Times.
Intotal 500 applications will be available when the store launches in theUS today, 25 per cent of which will be free, 90 per cent will be soldfor less than USD 9.99 and one third of the applications will be games.
Jobs also revealed that that Apple doesn't plan to make much money offof the applications, including games, by giving developers a 70 percent cut of the sales.
"We are not trying to be business partners," said Jobs.
While talking to TGR, VP of Marketing and Development at Valve DougLombardi touched on the PC market in general and what Valve thinks ofthe stories regarding the fate of PC gaming. Lombardi told us:
“We have really been outspoken lately about that. There is this brokenstory about the PC being on the decline, right? And that is one ofthese things like that we are really sort of being cranky about rightnow and being outspoken about and saying, it is not the PC market thatis dying, it is the PC retail in the states that is dying.”
Doug backed up this claim with comments regarding the state of PCgaming in other countries. “If you look at the revenue that we aremaking from Steam and the revenue that Blizzard is making from World of Warcraft,"he told us, "and you look at the sales of retail products in placeslike Germany and cyber café business in Korea, etc., there is moremoney now being made from PC business then ever before and it isactually dramatically increasing. I mean our Steam year over yearrevenues are up over 190%.”
Translation: with the increasing popularity of MMO games and the hugePC growth in Korea, PC gaming is here to stay for a long time yet. Anystory claiming PC gaming is dead hasn’t researched the facts or, justlooking at the sales chart in America.
founder of the Virtual Policy Networkthink tank, Ren Reynolds has announced a virtual worlds-orientedconference happening in two weeks time, just before the busy DevelopConference takes off in Brighton. It's called Virtual Policy 08 and is co-sponsored by BERR, the Department for Business Enterprise and Regulatory Reform (former DTI). Taking as its starting points four key legal and regulatory issues,this event aims to bring together practitioners, policy makers andpublic servants for two days to grapple with Intellectual PropertyRights, Financial Transaction, Children Online and GovernanceFrameworks.
From Ren's post on Terra Nova,
What interests me about this event is that much of the debate aboutvirtual worlds that one sees in academia, at least, has been driven bythe US. This means that North American issues, rhetoric andsensibilities have been given primacy. Hosting an event in the UKshould help to flush out those areas where Europeans either don't thinkan issue is important or have a very different framing of it.
Virtual Policy 08 takes place in London on 22nd & 23rd July. More information is here.
