Pizza Pizza

As long as I can remember, Domino’s Pizza has been the butt of jokes to the point even my Vietnamese associates know a few. They had a massive problem with PR and their pizza for numerous years and found themselves in a downward spiral in the mid-2000s, striking the all-time low in 2008 when their stock price was just three dollars. Nowadays they go for around 380 bucks. It wasn’t the easiest route.

Despite Domino’s hitting their lowest point, they experienced a massive PR crisis following Michael Setzer’s and Kristy Hammond’s Youtube video showcasing how much they loved to ruin the food they were preparing. They pleaded guilty a year later. This video effectively confirmed how Domino’s food was prepared in the minds of the consumers, further enforcing the jokes that were made and pushed customers away. It didn’t help that the video ended up being one of the top search results if you searched for Domino’s at the time. Even disregarding this incident, Domino’s was seen as some sort of crime against food and ingredients, or as Adweek’s short story put it on their focus testing, it’s startling to hear the degree to which consumers regard Domino’s as the embodiment of culinary evil. During this and numerous other focus tests Domino’s pizzas were called all sorts of names and claims of them using fake cheese and the like in their products were common, hence the jokes of the time. Some of them have survived long enough to be part of pizza-eating culture.

Domino’s decided that they need to turn their ship around and hard. Ever since their record-low stock price and the whole PR disaster with Setzer and Hammond, Domino’s began to comb through their complaints and reviews for the most common negative mentions and comparisons, as mentioned in their four and a half minute documentary what they were doing. This video, while being a corporate produced piece, is one of the things Domino’s did to have that boat turned. They went back to the recipes and worked on them and revised what they were doing wrong. Supposedly more training was given to the workers to prevent the mishaps the aforementioned video caused. Domino’s, in all effect, owned that they were rather shit company with workers who didn’t care if your pizza was terrible or not. The linked video shows how proud Domino’s was after they went and created new pizzas, which were more or less made from scrap. Everything from the dough to toppings was tested multiple times over and changed wherever needed. Whether or not this is all true will probably be always an open question, yet even from this video it is evident how much money Domino’s spent to revise their image by revising their image through their product. They even went as far as providing their focus group members with these new pizzas to test and get their opinions. They made these into ads, no less.

Domino’s Pizza owning up and takings steps to deliver to the customer the kind of pizza they wanted while making a public, transparent stunt out of it all has made them the most valued pizza restaurant chain. While some still retain the image of Domino’s being the worst kind of pizza you can have, that’s rather outdated view by about a decade. That, and they probably never had Greek pizza. Domino’s stocks have been in constant rise, and they’ve been trying to renew customer interest in various manners after their renewal, like collaborating with Hatsune Miku in Japan. part of their whole shtick of being transparent to at least some extent, they’ve allowed Food Insider to make a short video how their pizza is made and delivered, though personally, I have to say I’m not exactly excited by the idea of the dough being made elsewhere from the spot. Delivery food is making some nice bucks at the moment, so Domino’s made some nice bucks earlier this year as people didn’t want to leave their homes.

What’s your point? I hear Wes asking me there. My point is that Domino’s pizza listened to their customers, changed their product and working methods to better fit the demand. Not only they were willing to take in feedback and were honest about it to themselves, but were willing to make rather transparent transition from what they were to what they wanted to be. Customers love that, and that made them a billion-dollar company.

This same set of ideas can be applied to any industry on their basis. While the creative industries want to sell the image of one creator or a team of creative individuals delivering an earth-shattering piece that can only be experienced in so many fashions, the reality is that any product needs to be carefully planned out and balanced between the original intent and the customers’ wants. That is far harder than you would expect, as some corporate cultures do everything by data alone, which can lead to discarding feedback in total and the only thing that says anything is sales data. This can be combined with long-term career businessmen, who are hard stuck on their own methods of working, as it has produced large revenues up to that point already, making the total renewal of their productions hard if not impossible. In the foodstuff world, this is easier to do than e.g. in automobile production or the like, where you can only begin to start this process with the next series of cars rather what you already have in production. With games, music and film this could be implemented in an easier manner, but it requires humility among these egos, and that’s something the self-clashing creative industries do not see too often. Imagine if, for example, EA would make a public announcement that they’ve listened to all the feedback they’ve gotten through the years and have begun to consider how they produce, develop and publish games, as well as how they tackle advertising in their games or in which manners lootbox mechanics function. It’d take years for them to root out these methods and manners they’ve cultivated throughout the years and end up putting efforts into making games that wouldn’t nearly kill their workforce or would contain whatever is currently the most underhanded way of making that extra money. Something like this happening in the creative industries is as likely to happen as a pig flying through your window. It happens on occasions, but extremely rarely.

Few posts ago I wrote how I’m tired of the PR game. Domino’s Pizza turned their PR disaster into a chance of renewing their image through transparency. Because transparency to that effect would necessitate losing face first in order to gain higher PR wins in the long run, you won’t see this happening with franchises like Star Wars or any of the botched film franchises. You will never see one of the head honchos stepping up, admitting the money they spent on a movie bombing like no other was a mistake and that they will look into renewing and satisfying the customer. That would go against how things are presented to the audience, the whole Hollywood/ creative myth, how glamorous it is to be a successful creator. Yet even sure-shot franchises like Star Wars, Alien and The Terminator have slumped, the latter two effectively becoming more or less dead thanks to the latest movies. Hell, even the Predator franchise is back in the casket after The Predator managed to fuck up the series. As much as it often goes against the corporate grain, transparency and honesty are two things the customer values. If a corporation manages to be open about their faults and missteps about themselves and is visibly improving themselves, that creates almost natural emotional connections to both your current customers and your possible customers.

The one place where transparency should be the most important bit is in crowdfunding like Kickstarter. If you’ve run a Kickstarter and have managed to each your funding goal, every single thing you do with the money or with the project should be logged in without censorship shared with the backers. All the good you do is doubly more worthwhile when you admit fucking something up and explaining the methods of either supplementing or fixing what’s gone wrong. With crowdfunded products you have to remember that these aren’t your customers; these are the people who funded your project. Being transparent with them is the least you can do. The PR game wants to mangle and twist every screw-up into something positive in false manners, and more often than not the customer can see through that. It’s up to each individual customer how much leeway they might allow the PR game, and most often you can see it in the form of taking their business elsewhere. Of course, if you proceed to attack the customer when you want them to buy something from you, well, not everyone is masochistic.

Perhaps Marvel and DC should take after Domino’s Pizza. Japanese comics have been outselling American Superhero comics for some time now. In the face of this fiercer competition from beyond the ocean, it would be a good moment for American comic companies and creators to stop for a moment if they’re doing something wrong.

Yet another post about the old argument about something making money and its relation of being good

The few main things this blog has covered multiple times is how good is a terrible determinant in any comparisons or discussions and that financial success is a form of determining whether or not something is the aforementioned good. You know the argument, just because something sells doesn’t mean it’s good. Mark Hamill continued this with something along the lines of It only matters if it makes money. The two, of course, don’t exclude each other, as often products that are well-made sell just as terrible products bomb like no other. Cue for references to the latest Terminator and Charlie’s Angels movies, because a well-made product doesn’t equate to something the customers want or need. Those two movies are competently made, have high production values and realise what the staff wanted those movies to be. It wasn’t something the audience wanted or fit the franchises per se, so what does it matter if they were well-made movies? The customer is the ultimate reviewer who decides whether or not your effort and time were worth it. Nobody is required to purchase or consume products you make, just as you don’t need to appease them (if you don’t look for financial success.) Often you can veto some objective point of review, like how arts used to have. There films that are seen as cornerstones of overall motion picture history, as perfect examples of how to structure and build a movie. The same can be applied to music as well, I’d have to guess, though I have no Citizen Kane of music to reference. Whether or not it is because of technology changing and evolving too rapidly to have a proper point of reference, or people thinking video games are completely separate examples from other forms of play, electronic gaming doesn’t really have that objective point that majority of the gaming industry could look at and consider as an exemplary pinnacle.

We do have those games though and they’re all watershed moments. Pong, Pac-Man, Space Invaders, Super Mario Bros., Ultima, Wizardry, The Legend of Zelda and a whole slew of other 1970s and early-to-mid 1980s titles should be considered as points of comparisons, but of course, things get muddled down when you consider how modern gaming has changed the way video and computer games are pushed, even if that’s not exactly working all that well. The gaming industry would like you to believe that electronic gaming is a method of storytelling over a method of playing. To repeat this point to ad nauseam, the story of a game is the story made through play. The “story” bits in FMV sequences and all those are just framing devices to justify the action of playing.

Some shirk at this notion, saying the story is the thing that keeps them playing games. That only would be natural, as each and every game has to have a core reason why it is being played. At the core level, winning against the opposing player or team is the most basic reason to play something. However, the act of playing is what makes it enjoyable. The player himself feels that it is his own actions that are carrying things forward. This is the player’s agency, which is lessened with each moment the play, the control of the game, is taken away from the player. This is why, especially in the Deep Red Ocean market, not having a Skip Movie option is considered almost a criminal offence. As a side note, you can skip PlayStation’s Final Fantasy games FMVs by opening the console’s lid and closing it again, as that forces the console to seek the next bit right after the FMV sequence. This is pretty much the only way European FF9 players can get Excalibur II due to terrible PAL port screwing with the game’s timing.

This whole post really came together because Fall Guys became the most downloaded title on PlayStation Plus. Fall Guys is nothing short of entertaining, made in a relatively short time compared to its top competition, meaning its financial results will be that much greater than Triple-A games that spend the better part of the decade on the development table. Most often you can see people citing how it beat The Last of Us 2, which is rather apt. TLoU2 was intentionally made a narrative-driven game and mentioned that it wouldn’t be fun. It would end up as gritty and gruesome, wallowing in dredges and trying to be bold as a video game. Despite the game making some kind of bank, we can’t really call it good just because it made money, right? For all intents and purposes, the play of TLoU2 is very generic and overall uninteresting. Its film-like qualities have been at the forefront and whatever agenda it’s supposed to have is a few years too late, if not whole decades. Whatever debacles it had around itself is no real interest, but Fall Guys becoming the most successful PlayStation 4 game of 2020 really says it all; the customers prefer games as games. You could say there is one core, ideological difference between Fall Guys and The Last of Us 2 and that’s in the attitude of the creators.

Fall Guys was created for profit, thus it had the need to satisfy customer wants and needs in some manner other titles on the market really didn’t. Its play is entertaining and makes for a good competition. The developers had the craftsman’s mindset and it allowed them to make a game that was good. Or as this blog often puts it; the game good enough in every aspect to satisfy the customer. The Last of Us 2 development cycle didn’t clearly consider the profit part being a question, but a rather a thing that would happen anyway, as long as they stuck to the mould. After all, the series had its fans and that already would bring in the dough. Thus, it followed the artist’s mindset, which is antithetical to craftsman’s mindset. It’s against the customer, expecting the product to sell despite it ignoring the customer altogether. TLoU2 outright hates the player at times, something that has occurred more often nowadays than it did in the past, which fights its own nature as a game. You can easily make something like this with a product that’s supposedly a guaranteed success, especially during times when macro-economics are in fine shape. If the game had still been in development and would’ve published next year, its success would’ve been smaller. The entertainment industries are feeling the effects of plummeting economics. It’s become more expensive to produce anything and customers don’t have the same amount of money to throw around willy nilly. Games like Fall Guys will become a necessity for the next few years, where the customer and their play will matter more than the creators’. The trophy project mindset hasn’t been beneficial to the game industry or to the customers overall, so perhaps forcing all the developers to re-examine their methods and games on the publishing list. There won’t be nearly as many sure-shot games in the near future.

To roll it back around, sure. Being financially successful doesn’t necessarily mean something is great by some standards, but it does mean it does scratch the itch people have had and find a superior product over its competition.

Sick and tired of the PR game

I deeply dislike the PR game any and all companies play. I hate to bring Star Wars up so often, but it’s a solid example of it, and one of the most recent. When Kathleen Kennedy said that Star Wars didn’t have books and comics to adapt from, that was a PR statement in itself to confirm and instil the notion of abandoning what Star Wars had been up to that point and everything from that point onwards would be completely new and proper. Everyone knows this is horse shit, as the 1990s was a golden age of Star Wars media with the explosion of Expanded Universe books and games hitting the shelf one after another, and George Lucas wanting to test the waters with the movie event without the movie, Shadows of the Empire. Kennedy’s statement was first and foremost for PR for people who didn’t want to read these old stories or didn’t like them. All these moves were, after all, to alienate the audience of the classic Star Wars stories in order to replace them with a newer, more hip audience. As it has been often stated, gaining a new audience from scratch is much harder and time-consuming than keeping your old one. Building those emotional connections and brand associations take time and money, which all this PR was aiming for. Star Wars was to be easily accessible again, despite it never needed more than a cursory knowledge of the setting. At most, to get any Star Wars media, the only movie fully necessary to watch is the first one. Star Wars is not a hard franchise to understand and give a crack at, but it is an extremely hard franchise to write for and build from consistently, as Disney and new Lucasfilm staff would find out.

Disney’s new continuity with Star Wars wouldn’t last too long. Reintroducing characters from the abandoned Expanded Universe like Admiral Thrawn as fan service were first cracks on the armour, as that was against the previous public statements. Rather than foraging towards something new and creating their new Star Wars Kathleen Kennedy was applauding early on and driving towards to, Disney Lucasfilm had begun to dig up characters and concepts from the abandoned Expanded Universe, which was turned into a Legacy canon that existed alongside the current continuity rather than being unceremoniously dumped as initially announced. Little bits of backpedalling here and there showcase that despite the cut-and-dry statements and intentions, Disney really wanted to keep the old fans in as well with these small chips of bacon thrown in. I’d argue the moment we first saw Disney acknowledging something was up with Star Wars success was when Thrawn was re-introduced, as that meant the new ideas that were being realised didn’t work, which would turn out to be a hard reality with each new movie seeing fewer revenues at the box office. I would be amiss of course if I didn’t mention that the PR game Lucasfilm was playing, with their whole The Force is Female shirt stunt and loudly driving political views and agendas alongside attacking consumers and customers all the while capitulating to the Chinese demands, as exemplified by the whole poster scandal off Finn’s size being shrunk. Chinese markets were supposed to make money, but seeing the Chinese don’t have a history with Star Wars unlike the Japanese and prefer wholly different kind of aesthetics, the success was less than desired. With the SARS-COV-19 making rounds, Disney is in need to look back into the US and European markets and cut their losses as much as possible, including their PR failures with Star Wars.

No media company can afford to make PR statements just for the sake of politics at the moment. People are losing their jobs, money is tight and people are not willing to join crowds in fear of infection (at least in most cases.) Kennedy has to play the PR game, despite her role having been constantly shrinking with Star Wars and other people taking her role in other productions, as it was with The Mandalorian. Kennedy had to backpedal her earlier statement about Star Wars’ media about a week back, making the very opposite statement she originally made, speaking about 40-years of Star Wars media and playing into the long-time fans’ corner, but also trying to play to the new audience’s corner by trying to introduce them as something new, as something “unheard of.” With Star Wars still in the red after Lucasfilm acquisition, acquiring that new audience failed rather damn hard all the whole alienating the old fans was a successful move, and Disney hurting for money, the PR game had to change. Making profit has become the priority again after a decade long growth curve in macro-economics, the sudden change has shown that these short-term plans have backfired massively. Disney nor any other company can afford to do whatever they want at whatever price. The money was never there for them to do whatever they wanted in whatever manner, but people had the extra money to throw at them. Now they don’t and they’re hurting. Kennedy, Lucasfilm and Disney can’t turn their coats in an instant, it has to be eased in and slowly, but surely, turn Star Wars back to something that would make money despite the personal feelings and stances of the creators themselves. A massive company has to consider their actions and the results in a far more careful manner, while individuals can throw their shit in whichever direction in a moment’s notice. For example, recently Jon St. John, best known as the voice actor of Duke Nukem, made a statement that was fast deleted. Naturally, an apology referring to the tweet was made without giving proper context what was said in what manner, but the PR game demanded it, with reinforcement of his account is going to be all about fun stuff. Statements made in anger are no less a PR disaster than statements made by Kenndy regarding Star Wars media. Pro-rape position and media giant fucking up are not exactly on the same level, but they’re both examples of the PR game on different levels. High-level PR game takes time and works slowly, it works on the consumer perception with each statement and tries to slowly turn the head of the consumer toward its own benefit. Low-level PR game is all about the moment’s heat, and often ends careers.

They’re both bullshit no matter how you turn it around though. The PR game’s intentions and attempts at changing the perception of the customer work wonders when you have the emotional connection, allowing people to justify almost anything as long as the provider has made some kind of argument, or have appealed to the emotion, in a manner that makes sense to the individual. Sometimes you can afford to make hard statements, something that most of your customers and the larger market might agree on, but not all the time. Even then, it’s probably best to simply not get involved in certain matters at all, as explicit sentiments can backfire in a very hard manner, pushing customers away towards competition. When you’re playing the PR game, you shouldn’t assume that all the customers will agree or want you to join the mob or make certain kind of statements, especially with entertainment media. Disney and numerous other companies have been hurt by their mismanaged PR as they’ve entered their brands into politics and agendas, and now that nobody’s spending money, all this is biting their asses. Yet the game has to be played and course directions have to be taken. The world shouldn’t be grabbed by superpowered flu in order for corporations to begin to serve their customers and aim for the long term, stable profits instead of short term gains that always leave something to be desired for.

10 is the same as 0

Reviewers have always been influenced by the producers of goods and have been enticed with gifts to influence their reviews. Bribed, in other words. It’s an open secret how this happens all the time, though social media and how current reviews, especially with movies and games, are being influenced is laughably transparently covered. For example, back in 2014 when Watchdogs was about to come out, Steve Hogarty admitted how Ubisoft had put up an exclusive preview event for the game in Paris, where they gifted reviewers with Nexus 7 tablets. While this one event got some coverage, it’s far from being a rarity, though a normal consumer who doesn’t have any access or ties to any media houses wouldn’t know. Press kits for game journalists in events like this, and outside, tended to be rather expensive. Kotaku may be one of the worst sites around when it comes to objective news and articles, but a post from twelve years ago about Capcom sending them a three hundred dollar chess kit, while mentioning off-hand how EA offered to give them Porsche driving lessons so they’d get to play more of then upcoming new Need for Speed, shows how much the publishers and developers want to influence the media. It isn’t surprising that for each one who declines, there are at least two who say yes. This is an old topic in itself, and this sort of lack of independency between media and providers is always an issue. Sometimes kicking off consumer revolts. If you look up video game press kits on eBay, you can find journalists selling their gifts away. It should make you question why these kits include statues, backpacks and other goodies. If these bribes didn’t work, they wouldn’t be made.

Social media has changed the game quite a bit, especially with Youtubers. The providers don’t work with just media houses any more, but have tied single content creators around their pinky fingers as well. With Star Wars we saw large amount of media applauding the new movies, but after few years these reviews look suspect when the same writers repeat criticism consumers had with the movies in the first place. You can always argue that the reviewers bought the hype and had more objective lens after some time had passed, though that just means these people are terrible reviewers who let their own feelings and views influence their work. Youtubers often are fans making content. Fans’ love towards something is traditionally strong and can be easily exploited. They feel like they’re doing something right for the community and the brand by promoting it, and more often than not the big hits are hanging off from the companies’ strings. If you’re connected to the provider and manage to get exclusive behind the scene views or clips, the more views you manage to rack up. If you get on their bad side, this lifeline will be cut. These are fans hyping up other fans. That’s their job, in effect, and it’s not even a real one. They’re doing these companies’ PR and advertising, hyping titles up to high heavens, and they don’t even get properly paid for it. There is no self-respect at play here. Let’s not get into how Youtubers, influencers and press often get pre-release review copies, sometimes to own, sometimes with a bunch of the merch. You scratch their back, they scratch yours.

We of course come back to The Last of Us 2 and it being review bombed all the while the gaming media is praising it. Oh there are proper review scores all around for sure. It’s just telling how screwed up the system is when customer reviews are being bombed to the ground with zeroes while similarly the official side is hitting it with perfect tens. An old joke in video game reviews is that it’s really just a three-star system, or the range of score goes from 70 to 100, but that’s sort of the reality of it. The more you find popular Youtubers and press media repeating the same points in almost the same wordings and ways, the more reasons we have to ignore them. The modern review system is bust and completely tied to the providers. Social media might be completely screwed with this, outside the ones that are truly independent, but the Internet also allows us to completely ignore content creators who are just marketing, shilling, products to your face. Give all channels and sources you use a hard look. If they’re championing something that’s transparently false or hyping something overtly, they don’t have your best interests in mind. They might be fanboys hyping, they might’ve lost their independence as content creators, the end result is the same nonetheless.

I have to admit that I did go overboard with the Muv-Luv stuff when the Kickstarter was on, but none of that was from the company’s side. I’ve got only friends in the translation team, no connections to the company proper per se, and it’s highly probably nobody at âge is even aware of this blog.

Nevertheless, the Internet has given us the chance to review everything we want on multiple sites, aggregate or not, and voice our own experiences. The onus is put on the consumer in this, which is why aggregates exist to make going through reviews easier, but as you probably know, that’s not exactly a system without faults. Still, if you look at item reviews on e.g. Amazon and read through them, you notice a pattern of mid-range star reviews usually having the best pros and cons. Top and bottom reviews can often be just one word and be left that. That’s pretty much what all these 0 and full score reviews are, empty hate and hype with no value. Not many want to do the legwork themselves, going through review histories and search up opinions from people who haven’t written reviews, resorting to these Youtubers they like and find likeminded to deliver the condensed version. There’s also something about wanting to enforce your own believes and sticking with the group mentality. It’s either cool to like or hate something, join the mob, despite the mob being driven and created by providers for profits. Nothing is more profitable for providers than zealots and true believers, as dropping something that they agree with can get you nice profits. However, bet on the wrong horse, and you’ll alienate the rest of the consumers. If you bet worse and the horse gets injured behind a bush like Silence Suzuka in 1998 Tenno Sho, it’s not hard to find yourself with diminishing revenues on the long run despite all the influencing and hyping.

As stupid as it sounds, stealth marketing has crept into every area of media we consume. It’s tiresome to take everything as suspect and wage through dozens of options and reviews just to find if something like headphones work for you. The amount of reviews and opinions will ultimately always overwhelm you, and in the end, the only proper way is to educate yourself on the subject to some extent base your decisions on that. A bit hard for video games and movies, but just like with everything else, having experience and foreknowledge about the subject helps you a long way. In the end, intuition is learned through experience. The good ol’ argument of giving something a go before you make a decision or the like doesn’t really apply with games and movies, or any entertainment media, as the provider gets your money even if you didn’t end up liking the product. Movie trailers rarely do any justice to the movies, as they’re made to market it. Game demos on the other hand almost died out completely, because they ended up representing the games a bit too well and impacted sales negatively. Piracy of course is the great controversy, as it’s claimed to negatively impact sales even when in reality people tend to use it as a method to test drive movies and games before committing to a purchase.

Any time you see someone holding a torch to something, giving it higher quarter score, go through it with extreme criticism. Reviews on Disney Star Wars, Marvel movies, The Last of Us 2 or any other high-profile piece, including Star Trek Picard, are under suspect, and through them, every other reviews these content creators have. If their standards and level of criticism yields 10/10 with only minor issues here or there, there’s something amiss. Look for authenticity in the reviews you look for.

Digital takeover?

With nations going to lockdown modes, travelling being restricted and products unable to move from place A to place B, the world faces changes. Some of the changes will be long lasting, while others will be temporary at best. In a way, we’re faced with a moment in time, where only the essentials should matter. If you’re not directly in relation of producing foods or essential services, or are able to work from home, chances are you’re going to miss some work. Entertainment is, to be brutally honest, is probably the least important part of life. While the modern society is mostly used to have content provided via whatever screen we choose, numerous places that offer entertainment outside your home environment. For example, the movie theatres are effectively closed for the time being, hurting their income and their workers’ pay. With the theatres closed, some of the studios have opted to stream their movies in much faster order than usual.

The discussion of digital superseding over physical is often only about the media, how games, music and movies are going to vanish from the store shelves in the future and be replaced with digital-only counterparts. While this is extremely rosy view of the future, this discussion should also include automatisation as an essential part of it. Some types of work will be replaced with their digital and automated, and on the long run, most work from medical care to translation can be automated. It’ll just take long time to get there, improvements in special kind of AI and automatisation, but nothing’s really out of question. At some point we are going to have discussions whether or not we are going to allow digitalisation of work to replace human workers in some particular fields. Futurism.com has an article about Artificial Intelligence that is able to make more accurate diagnoses as a doctor than a human one. In time, digitalisation will take things to the point that consumers will be taking goods and be served by automatons. Digitalisation promises offers of superior experience every which way. It is already spilling out from factories and whatnot to digital environment, where 3D models are already used to entice viewers to enjoy video contents more.

Though who needs mp3 players or whatnot when you can have a non-digital automaton playing tunes for you

The whole Virtual Youtuber thing is digitalisation at its best. Sure, you have someone acting behind the character, but the 3D model removes all the needs for the actors to change their body structures or put make up. Chaturbate users experienced what it means to compete with automated content, when Projekt Melody shot to the top and displaced most of the top models and was raking in money like no other. Projekt Melody is effectively a VTuber for porn and offers the exact same benefits that other automation offers; Better results in less time, and end result that will entice more customers. It’s more efficient and with the provider being able to deliver whatever visual designs and flavours the customers want, Projekt Melody is able deliver harder and faster the same experience live model have to work hard for. This lead many of the models on the site rioting, of course, resorting to name calling Projekt Melody’s viewers and fans (despite these exact same people are their potential customers) as well as claiming this was unfair competition. In reality, they are now facing the first steps in having digitalisation and automatisation entering their field of profession.

Digitalisation doesn’t straight up mean that robots and automatisation replaces someone’s work. Well, in practice it does, as rarely the same person is trained to maintain the automation. At least one human has to be behind automated work to keep it in check, to ensure that it runs well. A welder would do good by aiming to move from manual welding to become a robot operator, if possible, as in time welding in factory conditions will slowly but surely replace the human worker. The companies themselves might be against this, be it trusting human worker more or due to sociopolitical issues, but robots will always end up being more efficient than the humans, be it in the factory, in the doctor’s office or something you want to jerk off to. We are already happily using platforms that are supplanting physical environs. Netflix may be new television, but it has been said to be the reason why movie theatres are dying, online shopping has been replacing physical stores (which is a terrific example of its implementation as the customer feels like their doing something significant and non-automated), especially now that you can order your foodstuff to be delivered to your door. I wouldn’t put it past the post offices around the world to aim replacing their postmen with drones, like how Amazon is testing their drones. It all might have a high up-front cost, yet on the long run it’ll be that much cheaper. This is one of those things where companies may not want to prioritise short-term gains over permanent long-term gains and begin automation. Current structures may not support automated environments straight up, but all that is easy to change.

While digital media has not phased physical media out, there is a possibility that the infrastructure for that is being implemented at this moment in time. After that, there really isn’t a need to go back. Digitalisation and automatisation go hand in hand, and while customers are now inconvenienced by the epidemic, the most inconvenient and easier way to consume and explore entertainment is digitally. The discussions about consumer rights and ownership is not even thought about, something this blog has been discussing to a major extent in the past. Consumer behaviour has been drastically altered now and it is possible we are seeing a strong paradigm shift. Not only customers are going for the digital option, either because of fears or convenience, the companies have to make due with whatever production methods they have at hand. China’s factories being closed means everything has to be postponed or other forms of delivery (i.e. digital) have to take priority. Local production may be emphasised and thoughts about becoming more independent from foreign produce. Of course, some nations can’t really match up the sheer volume in production others can achieve, which will lead into local produce being costlier than imported. Whether or not this would be a chance to increase local production, or if people will simply change their habits of consumption, is open in the air. It’ll be interesting to look back few years from now to see how both customers and industries have changed.

Unmade money with old games and consoles

Masayuki Uemura was interviewed by Nintendolife recently. He was the main engineer of the Nintendo Family Computer, as well as the guy who lead Super Famicom development. Naturally, he also was behind the workings of their American and Western equivalents. The interview covers decent ground and has some interesting factoids spread around. For example, all the innards of the FC was to cost give thousand yen and then sold for fifteen. Taking inflation into count, that five thousand is about six and half thousand yen, or about fifty five euro. The FC wasn’t exactly cutting edge for its time either, and the initial FC games are a whole another world from what the Western world came to know with the NES. You could even say that the split between the games, sort of, is pre and post Super Mario Bros., as that game was build to be the ultimate cartridge game before the disk system hit the corner. After SMB‘s success, the quality of the games on the system skyrocketed in number and begun yielding classic titles after another. I still maintain that the NES’ US launch line-up was one of the best a console has seen, as Nintendo of America had the chance to hand pick all the most fitting titles from the Japanese releases to fit the American taste. The Wii also had a relatively low-cost innards, which didn’t hamper its success. Nintendo’s lack of support after few years though, and Wii’s sales were still top notch.The Wii’s Virtual Console on the other hand, that sold the system to so many people.

Uemura mentions costs to be one of the driving elements in the design, and this is something the common consumer doesn’t tend to think. Certainly you know that better materials cost more money, but that’s only part of the equation. Shapes and colour add to the cost as well. For example, pink plastic has a higher melting point than blue plastic, requiring more time and energy to melt the plastic into the moulds. The colours themselves are also a factor, as mixing and making different colours cost different sums. Of course, you also have consider what that colour can do to plastic on the long run and if it’s worth it. For example, Beast Wars era Transformers toys have Gold Plastic Syndrome, where the colour and flakes added to the plastic have chemically interacted with each other and brittled the plastic, making it prone to break very easily. Some examples were found on the store shelves during the 1990’s already, and the issues has only become more pressing with time. Let’s not forget the shape. The more complex the shape, the more time and money it takes to develop needed production methods and finding the proper material to work with those shapes. Machining and maintenance are the key factors, and sometimes shapes need to be simplified due to either needing excess amount of parts or corners and loops that simply wouldn’t fill. Uemura mentioning that they went through numerous different variations for the controller is nothing surprising, but something that hasn’t been recorded and archived anywhere. If NES would’ve had the same kind of joystick as the Atari 2600, it would not have been the same success. The choice to try out Game & Watch Directional Pad appears to have been a somewhat desperate attempt to cull costs and prevent breakage if a child steps on the controller, and it worked.

The most interesting, and perhaps even most important section in the interview, is Uemura talking about the Famicom Mini;

Why make it mini? I think they could still develop a regular Famicom and people would still buy it.

Uemura’s hitting the nail with this, and it’s not just Nintendo that this applies to. Unlike what the industry wants to tell you, a console has no true life cycle or end of it. A system lives as long as the parent company decides to support it. However, the practice currently is to support one home console and one handheld at a time, thought the Switch really does both. All these reproduction consoles that are going about are an example how there is a market that’s untapped by the original companies. If Nintendo decided to develop and official GameBoy with a backlit screen, it would sell not only to the collectors, but to all interested parties. Reproducing cartridges nowadays is much simpler and cost effective. I’ve discussed this topic previously in a review. While it would increase the cost of the mini-consoles to add a port where consumers could use their own old cartridges, it is something these companies should have strongly considered. The games and their players have not gone anywhere. These same games are being published time and time again either as individual games or as parts of compilations. The game industry is almost schizophrenic in this. Something is supposed to have a limited lifetime, and yet people pirate ROMs to play these games and purchase compilations. Developers try to push for the new titles and games with high budgets and production values, and it’s the small side-game that’s more true to the older games that sells like hotcakes. We are still playing the same board and card games from hundreds if not thousands of years ago, and the could apply to electronic gaming if the industry wouldn’t treat them as one-time consumables. Yes, old cartridges and consoles will yield to time, to wear and tear, but the question really is why isn’t any of these companies willing to address this? There is a market that Sega, Konami, Sony, Nintendo etc. could go and tap.

Of course, developing a new console that would be planned to run old games would be time off from the more modern and current projects. Where’s the prestige in that? It would take some time and effort to see what made the original systems tick, if we’re to avoid emulation, and then expand what they can do. Using HDMI would be the first step, though if fans have created modifications to add HDMI output to old systems, so can the parent companies themselves. That is, if there is know-how and skill to do yet. Just like in the film industry, where colour and digitalisation effectively killed old skills (nobody knows how to make a true black and white movie anymore or how to properly run a reel, everything’s just a guess) the video game industry is in the process of forgetting how to develop for analogue platforms. Only the enthusiasts and retro-game programmers are keeping these skills alive. Hell, most big developers don’t even develop their engines any more, opting to use pre-existing engines. Capcom is one of the few developers that do their own in-house R&D, and it shows. Perhaps the kind of sameness games nowadays exhibit is partially because of this, and partially because games don’t develop as fast any more. In the 1980’s and early-to-mid 1990’s the industry kept developing fast and weren’t defined to the point of being set to stone. You had separation what kind of game was on what kind of system (PC, console or arcade) yet now more games are more the same. I’m ranting again about this, aren’t I?

There is money to be made with games and consoles, even if the industry perception is that they wouldn’t be much worth. The NES Mini outsold itself twice, the SNES Mini sold itself out about as fast, the Mega Drive Mini has been hailed from left to right as the best Mini system to date with excellent choice in games and the PlayStation Mini is still sitting on the shelves for being shit. There needs to be quality of course, as not even the hardest of the core customers will stand for lack of proper effort and lacklustre products. This market isn’t just for the small percentage of people stuck in the past. Old games, as long as they are available, will sell. A game is an ever-green product you can press again and again and sell it over and over again. They don’t grow old, playing games is an ageless pastime. They are mass consumer entertainment, and if you were to present them in their proper, original form with somewhat updated hardware for the new times, you’d have a new pillar to support your business with. Then again, we’ll always be an impasse, as that’d be looking back into the past and not trying to push the latest newfangled stuff.

The power of the Customer

The customer chooses whether or not you succeed or if you fail. This can’t be overstated, but what has been understated that not all customers are one group. Take a sample of any consumer group, be it fans of a franchise, soda drinkers, candy eaters or whisky juggers, you’ll always find that they have something in common and something very much uncommon with each other. Within your target audience, you can’t appease everyone. You can hit different parts of your target audience with multiple products that appease different varieties of tastes, even if those tastes might clash harshly against each other. There’s a reason one of my random banners at the top is quote from Sam Walton, the founder of Wal-Mart, stating the there’s only one boss, the customer. Money moves almost everything in our daily lives, from the power you’re getting from your wall outlet to the clothes you’re probably wearing. Simple change in spending habits, like going to another chain’s store than your usual one, can affect things rather strongly. While the Internet has made campaigning against and for something so much easier, compared to letter campaigning or phone calling, the best form of stance taking is still hitting where it hurts the most; the wallet. However, wallet voting has taken hit on how effectively it is. The Internet has allowed movements to become louder and more obtuse, especially with the advent of social media. This has obfuscated the real amount of consumers doing anything, as majority of consumers are still silent. That is to say, most companies hear the voice of the minority of their customers, which leads only small sects sometimes impacting production, sales and whatnot of products that would otherwise have normal sales. Reasons vary, from mother’s campaigning to pull out GTA V from Target’s store shelves in Australia or some animal awareness group pointing out how Pokémon is animal abuse, you can take your pick from whatever ideological and political spectrum and you’ll find a group that’s making noise.

The creative industries have a hard time dealing with consumer wants and demands from time to time. Individual entrepreneurs have probably the hardest time finding and keeping a customer base. Individuals have to do everything on their own, and very few realise early on that having sensible finances and being able to keep your own book is highly important. Nowadays it is easier to find your own niche, though competition is even fiercer. Despite the rosy image of an artist giving his heart and soul to the piece and sees the world celebrating it, the reality is that artists still work in a service industry and their work needs to reflect the consumers. While art is culture, it is also a consumable. Only a fraction of a fraction of works that get cited as art will enter the cultural lexicon, something that’s becoming ever increasingly difficult as out 24/7 cycle of everything sees everything getting old within a matter of days. Fifteen minutes of fame has been reduced to closer to five.

The net’s full of comparisons like this

This has lead some to question if fans, a.k.a. consumers, have too much power over the products they consume. Or to put it like BBC Culture did, are fans too entitled? To touch the opinion piece a little bit, it mostly covers history of fans able to change and influence creators, citing examples like Sir Conan Doyle resurrecting Sherlock Holmes ten years after killing him off due to an intense reaction from the readers. For 1893, maybe ten years was long enough time for the books to spread. That, or in reality the considerable large sums of money ultimately changed his mind. After all, that made him one of the most well paid writers of his time. Stephen Kelly, the aforementioned piece’s writer, considers the change of Sonic’s model change in Sonic the Hedgehog unprecedented in modern relationship between artist and fan, something that is false. Video game characters have seen redesigns from time to time for numerous reasons after fans backlash, or have the perceived atmosphere has directly impacted the designs. This most notably has affected female characters, while the male characters have been left mostly alone. From Final Fantasy VII Remake‘s Tifa being more toned down compared to her original design (despite still getting riled by some) to something minor like a win pose being changed in Overwatch. While changing how Sonic looks in his movie resulted in tons of good PR, and the staff have been saying the fan feedback was invaluable. Whether or not this is a positive example is really up to you. Whether or not you prefer the original movie Sonic design compared to the current one.

The point of the piece is whether or not fans have entitlement over the things they buy. One example she cites where a minority of fans hammered down a movie despite critics and other fans liking it is The Last Jedi, though now that we’re two years after the fact looking at the results of the film, and how it affected the franchise as a whole, it wasn’t exactly a minority that rejected the movie. Sure it has its core fans, but the culture and general consumers at large simply for numerous reasons, which all can ultimately be bogged down as They didn’t like it. The franchise is feeling and reeling from the after shakes still, and will be for the foreseeable future. Kelly tying identity politics with Star Wars and the 2016 Ghostbusters is false, as the 2016 Ghostbusters is simply a terrible movie that failed to launch a new franchise for Sony to bank on. Then again, #GG is used as a boogyman in the piece and represented highly inaccurately, and really has nothing to do with anything aforementioned. There is no true conclusion to Kelly’s writing outside Fans are the problem, but fans are also the solution, which really means jack shit.

Let’s take a recent case about fans being split about a character redesign. A Japanese illustrator and character designer named Ban was employed by Flame Toys to redesign a Transformers character named Windblade for their Furai Model line of model kits. Flame Toys is known to redesign characters while working under Hasbro’s license, and these redesigns can be drastically different from the original works. If you check Ban’s Pixiv, you will notice at least two things; clean and smooth style, and that a lot of his works are Adult Only. His works are hard to represent in plastic due to him employing some shading and linework that works only in 2D. After Flame Toys revealed Windblade’s physical prototype in New York Toys Fare, there was a backlash against the design, forcing them to take down their posts on social media. The designer, Ban, still retained the prototype images on his Twitter.

Arguments about this design were conflicted. While a portion disliked it, a larger portion seems to like it. Difference is, most of the detractors on social media were English speaking customers, while the customers with positive feedback shared both English and Japanese. Unsurprisingly, few different posts explaining the backlash to the Japanese fans popped up, to which some Japanese laughed at and some thought the situation was unfortunate. Criticism ranged from it not being aligned with the original design of the character, which should have been a given seeing this is a Flame Toys product and that The Transformers toyline is full of redesigns of all sorts, to all the way how Ban’s design gave the character bikini, despite Wingblade’s bust and crotch always had red accents, as seen on the right. The wings where a sticking point to some, as they seem to be clipped in Ban’s redesign. This is of course natural, as Ban emphasized their nature as the bow in obi, the sash Japanese use with kimonos. I didn’t hear anything about the head crest’s size, but some issues with the second proto photo’s pose, and some were asking why the other, masculine models weren’t put in the same position. This is an example of false equivalency though, as what attracts men and women, and what shows their best sides, is different between the two sexes. The two sexes also value each other in different ways, emphasizing regions of body in altogether different manner, which is very much apparent in most more designed Transformers toys, where masculine emphasizes can be seen on broad shoulders, well defined chest and flat, sixpack stomach regions. Let’s not forget strong chins.

If I’m honest, I never liked Windblade’s design. The head crest is silly, the wings looked dull and generic, turbines everywhere, they manage to make the face look terrible, not much unique body definition after seeing what sort of design Animated series had. Personally, I don’t think Transformers as a whole needed sex, the species is mechanical in nature and could’ve been treated as one-sex or sexless

The fans were split, and not evenly even. This is an example where smaller sections of the target consumer group was split on a character design. You had a section that disliked it, you had a section that was as vocal about liking it, and then you have those who don’t really care. This is a gross simplification, as the reality is that there are thousands of small fractured groups working under similar umbrellas. Some have echo chambers, some don’t even interact with the rest of the fandom, and some simply had no interest on the topic as it was about a model and not about a transforming toy. Considering Furai Model kits are targeted at adult collectors, the niche audience this model was targeting most likely already excluded a lot of voices on both sides. A French Youtuber put many peoples’ thoughts rather well; There is a store package version for children, and this model kit is clearly not for them, but one of the many adult collector’s figurines. It’s pretty funny to use the term “objective” about a machine… Last bit of course refers to the complaint that Ban’s design is sexist and makes women sex objects. It considering this is a robot toy, objectification of a fictional robot is expected, as that’s what making a toy is. The design is sexy without a doubt, with expected curves, but as a friend so elegantly put it, You’re telling me Ban draws something else than boys with dicks? the design is rather held back from what it could have been.

If we are to consider the creative industries, or just arts, as something untouchable by external forces, why shouldn’t Flame Toys celebrate Ban’s redesign of Windblade and sell it to the customers? Or should they listen to the part of their broader possible customers and cancel it, losing whatever money they’ve had thus far in the production? If we were to stick with the idea that art should be independent and ignore both positive and negative feedback, Sonic’s designs wouldn’t have changed and Flame Toys would still have their New York Toys Fare posts up just fine. Some might see this as false equivalency due to supposed ideologies and whatnot, but stripping all the excess fat off and getting to the point, it’s all about customers voicing their opinion on a revealed character design.

Every kind of design and form of media has its customers. One thing has more than other, I doubt anyone really contests that in a serious discussion. However, not all products require to sell high numbers. Prestige and deluxe products are intended to be produced in relatively low quantities but in high quality. Their price tag represents this, often tacking more than few zeros at the end. The main difference between the two main examples in this post, Sonic the Hedgehog is intended for all audiences at an open marketplace. Furai Model Windblade on the other hand is (maybe was at this point) targeted at a niche of a niche market, an adult collector who builds robot models. The two markets are at rather opposite ends in popular culture media landspace, but not quite.

There’s no real stance here regarding the blog. While one of the stances this blog has is pro-consumer, it also supports the idea of companies looking at the cold data over customer response. The reason for this is that the customer doesn’t know what they want. We as customer think what we want, but when we’re given options to choose from, we often find ourselves picking something completely new, something we didn’t expect we’d want further down the line. Despite customers voicing their disagreement at times, offering variety of products is as important to hit all the niches in your targeted customers. This of course leads into juggling with the PR, both positive and negative such move creates, but that’s business as usual, as this is a chance to use both positive and negative attention for net positive gain.

Capcom’ next year’s plans is to continue on the same path

Capcom’s yearly integrated report was out at the end of the quarterly year, so nab yourself a .pdf copy if you’d rather read it yourself. Otherwise, let’s see what this year’s report says and how the year has come to pass. Grab some snacks and a drink, this’ll be a doozy.

Right off the bat, the report states two thing; Monster Hunter World has been Capcom’s most successful game to date, though the state the number of shipped units rather than sold units. Shipped units just sounds better, as it always is a larger number. The claim for the game’s success is twofold; Globalisation and Digitalisation. The aim for Iceborne, the Ultimate or G expansion to the game, to push further sales. It should be noted that the two games are treated as two separate entities, as this sort of updated version of the base game has been the standard for Monster Hunter since the first game.

MHW made the series a global success. Despite 4U selling well on the 3DS, the truly wall-breaking moment was MHW. The game’s overseas sales ratio increased to 60% of total sales compared to previous 25%. Bulk of Iceborne’s sales are expected to be digital, and whatever data they gather from that will determine Capcom’s future plans. Considering how well the game has been doing on Steam alone, it’s probable that Capcom will push more of their games on digital frontier and cut down production of physical goods. This has been a trend for a while now, but this most likely will only matter for the Overseas markets, as Japanese markets still prefer physical goods over digital. If MHW was offered as a physical product for PCs without any ties to Steam, it’d sell just as well there.

The report starts properly after this, listing Capcom’s Capcom’s method of business and ideology. Capcom shows itself as Creator of entertainment culture that stimulate your senses. Bits like this should remind you that company indeed is Japanese. Their net sales for the end of the year, that is March 31st, was 82.9 billion yen. This is their main bread and butter, counting home video games, PC online, mobile titles and DLC. Their multimedia net sales, that is all the merch in books, toys etc, movies, their arcade games and Capcom’s own arcade centres, events and eSports, netted then 17.0 billion.

Here’s the kicker though; Capcom lists four of their major franchises next, the ones you should consider to be the essence of Capcom at this moment; Street Fighter, Resident Evil, Monster Hunter and Mega Man’s sales are listed, tho after the report Mega Man reached another million units sold. The sales numbers in respective order is, 42 million, 91 million, 54 million and 35 million, now 36. Fiscal year 2019’s biggest hits were, unsurprisingly, Devil May Cry 5 at 2.1 million units sold, REmake2 at 4.2 million and MHW at 4.5 .MHW is noted to be a catalog title, meaning it is a game that was published earlier and not during the fiscal year, showcasing that a game can continue to sell for a long damn time as long as it is available.

The core idea of Capcom’s Single Content, Multiple Usage is effectively effective franchising. It all starts with digital content and with a popular video game. The core of this digital content can be expanded to PC online gaming, via multiplayer modes or similar as well as create spinoff titles or additional tools, wallpapers or whatever other applications for mobile devices. The base concept of something like Resident Evil can be put into use in arcades by using the same world and characters in different pachislot games or similar arcade games. Other business section is major, as that mostly includes third and second parties using that core game to expand the amount of uses. Books, comics, character toys, events, tournaments, eSports, television shows and movies are all part of this extremely expansive Other Business section Capcom is not directly involved with in most cases. All this leads into creation of a new game, that will be used multiple times over. The importance is in having strong IPs that can be used multiple times, that the titles have global popularity to ensure that these franchised elements will sell (though if we’re completely honest, most of the franchised stuff Capcom puts out stays in Japan) and then you have the movies. It is probable that Capcom has the most games made movies out of. We can question their quality in many ways, but they still make money. Every time Street Fighter the Movie is shown on telly, Capcom gets about a million yen.

This method of using single content is nothing special in of itself, yet the whole movie business makes it a bit special. Konami, for example, has a very similar multimedia approach to their business, though they are rather separate in most cases. Konami can have a successful toy franchise going on, but no real game or other media of it. Capcom recognises their main point is the games, and they aim to make a mass-appealing game they can franchise further. This ideology probably permeates the game design at its core level, where designers at Capcom have to ask themselves How can this be used multiple times down the line? This also explains why certain IPs, despite being strong previously, have not appeared in any modern form outside ports, as they can’t be used multiple times nearly as easily.

This method of franchising is dependent on the core quality of the game, however. Capcom’s quality in games was all over the map during 00’s and early 10’s, but after some financial problems they’ve managed to level out with increasing sales. Their Operating Incopme is up 13.1% from last year, Margin is 1.1 point up, a slow but steady rise from 2016. Their net sales are 5.8% up, continuing the trend from 2015, where their sales dipped. It should be possible for Capcom to reach their 2014 level of sales during this next fiscal year. After the slump of net income from 2013, Capcom has been doing much better with 14.8% rise from last year, about triple the amount since 2014. Research and Development costs have gone down a bit, mostly thanks to establishing their new engines and streamlining development, but it is expected to rise next year. The balance of work in progress for games went down major 34%. This was gained by closing down overseas studios and release of games that requires lots of works, i.e. REmake2 and DMC5. This is interesting though; Capcom split its stocks 1:2 last fiscal year, meaning the payout was decreased, but dividends increased. They’ve been managing to pay out dividends 29 times in a row. More people may have access to stocks, but payout per stock is smaller. Might’ve been a good chance to jump into the bandwagon at that point. Return of Equity, a.k.a. the  measure of how effectively management is using a company’s assets to create profits, is up one point. Should be noted that it barely beat 2009, meaning ever since 2010 Capcom was in a rut and had to fight hard to get back up.

With WHO recognising gaming disorder, something I’ve covered few times already (it has no basis), Capcom has Sustainable Development Goals, effectively meaning Capcom wants to showcase themselves as a company that balances their own economic growth with the sustainability of the society. In short, Capcom is supposedly trying to showcase themselves as a company that would not take advantage of people with gaming disorder. EGS, Environmental, Social and Governance form EGS material issues that come in four sections; Securing and Training human resources, Promoting diversity, Development of Solid Relationship with Society, and Enhancement of Corporate Governance. This needs a bit breaking down, as EGD and the four spots mingle slightly. All this is according to UN’s goals, which Capcom wants to go by. Furthermore, Capcom is to continue their 2011 program of supporting educational themes whenever a classroom requests such, meaning that Capcom has a program that would educate students about video games and career opportunities. However, this is largely Japan-only, though with Capcom wanting to globalise themselves further, they might want to tackle most major schools around the world in some manner, and maybe even send e-mails to smaller schools around the globe, offering some assistance in game studies.

Capcom is tackling Environmental issues with the usual fashion, like changing old light bulbs to LEDs to reduce carbon dioxide emissions and reducing paper resources by digitalisation. This has reduced costs, but also means that Capcom can showcase their push for further digital sales as part of ESG. Energy conservation will be their future goal.

For Social, Capcom is aiming to hire more non-Japanese employees and increase the number of women in management position, but an approach like this won’t serve well in of itself. All these people need to be competent in their work, as companies that will hire or kick up people into the higher up’s board for the sake of diversity does no good for the company itself. Whether or not this goal will be healthy on the long run will be seen. Forced diversity is not a solution, but that is the wind of the era. Capcom has been increasing the amount of women workers in their ranks, though in reality it shouldn’t matter what junk the employee has between their legs, just the quality of their work. It should be noted though that Capcom’s Relationship with Customers has a spot mentioning how they’ve monetised DLC without high-pressure microtransactions, something that a company like EA can’t say with all the lootboxes and whatnot. According to Capcom, games should be enjoyed for the entertainment value they provide with gameplay, not fir the thrills associated winning a lottery. Capcom intends to deliver core content for free for their games, with DLC being its own thing at a low cost. With their mobile games, they supposedly intent to continue have small as possible gacha elements. Localisation and culturalisation gets mentioned as well, and rather than talk about translation or localisation, Capcom wants to culturalise games so they’d be enjoyed in whatever locale. This sounds highly suspicious, but it also explain why mention of dragons got removed from Monster Hunter World in China.

Capcom is surprisingly effective when it comes to Relationship with the Regional Community, as they Capcom is involved with number of events in Japan, offering possibilities for cities and municipalities to make profit off of their own from these events and whatnot. This also doubles as an effect of Capcom getting their name out there to people who wouldn’t recognise it otherwise.

For Governance, Capcom has been increasing ratio of external directors and increased dialogue with the shareholders. Basically, Capcom wants to have more openness with their shareholders as well as be more transparent all around. Capcom even lists reasons why external directors have been selected, e.g. Masao Sato is expected to be able to contribute to the auditing and supervision of the Board of Directors via his experience and knowledge from serving the police administration. This is part of the whole “visible” governance, and we’re even given a third-party assessment of Capcom’s corporate governance. Capcom’s strength lies in capital efficiency and information disclosure, with Effectiveness being the lowest. This is pretty much as expected, as per the business culture Capcom resides in.

Rather surprisingly, Capcom has an increasing number of annual discussions regarding the market opinion. Whether or not these discussions with take true market opinion into count, or just what the gaming press wants the opinion to be, is wholly another question.

Regarding Capcom’s achievements for the year, there’s nothing much to cover. Their catalog titles i.e. older titles continued to sell decently, with MHW being still a top seller. Their two new releases, DMC5 and REmake2 sold extremely well, and apparently Capcom is satisfied with the sales of ports and such. As for arcades, Capcom apparently started an online crane game, and have been aiming to expand their target market towards middle-aged and the elderly. Plaza Capcom was opened in Hiroshima, which probably explain why they closed down one arcade and opened two new ones at different locations. Despite their five different Pachinko and Pachislot models sold reasonably, the changes they made in testing their equipment meant lower overall sales; 3,422 billion compared to last year’s 7,803 billion. Numerous events were held to maximise sales of games, as well as further use of eSports like Capcom Street FIghter League powered by Rage. Net sales increased and operating margin was 31.5%.

Capcom’s intention to build a strong business portfolio hasn’t changed any. Their aim, after all, is to make games they can make multiple uses out of. For the next year, Capcom seems to intent promoting their mobile games more and explore possibilities more, which is why we’re getting Rockman X DiVE rather than a home game release. Standard consumer releases are abound from major IPs. We already know REmake3 has been in the works for some time and will be out somewhat soon. Whether or not something else like DMC5 will be out is another question, tho Capcom would count MHW Iceborne on Steam a new title, and the base game a catalog title. Capcom also has to restructure their development to handle the new regulations Japan has made regarding gambling, as it impacts their pachinko and pachislot business. Business as usual, and in hindsight, REmake2 and DMC5 last year was Capcom reviving old IPs for new generation. Much less than what was expected, but the reception and sales of both titles speak for themselves.

Kenzo Tsujimoto’s section is up next, which is more or less a view on Capcom’s CEO’s commitment and look at the company’s history. Without much going in too deep, Capcom has six points in their philosophy, something we’ve already seen; Aim to become the best in the world, Compete with strong IPs, Stable long-term growth, Managing their IPs and companies properly to ensure the two aforementioned, enforce and encourage relationship with societies locally and globally as well as with stakeholders; and avoiding management risks with transparency. We’ve effectively covered most of these spots, but I’d like to give some spotlight on the third bit about stable long-term growth.

Capcom struggled most of the new Millennium to find their spot in the gaming market after the crash of the arcades, but their long-term growth has been better than most of their competitors. Their Operating Margins have been overall better than their main competitors’ with +66% operating income and margin being +7.9 points. While Konami may have +90% income, their margin is just below Capcom’s at +7.5 points. Contrast this to Square-Enix, who has -8% income and -3.3 points in margin. This of course could change during next fiscal year, when Final Fantasy VII Remake hits the store shelves. Neither Sega Sammy or Bandai-Namco can really compete with Capcom or Namco, as their respective numbers are -53% and +41% in Operating Income, with +1.8 and +1.1 points in margins. Effectively, Capcom has been making most of their last financial year’s success with just three titles, one of which was a catalog title. If they manage to keep both REmake2 and DMC5 selling well as catalog titles all the while rolling new titles as part of their main growth driver as per their management strategy, they should see further increases in profits and margins during 2020. Nevertheless, it seems that their most stable source of profit is still in arcade and amusement equipment with no real changes how well they’re selling.

Capcom will aim to increase profits with three-angled long-term plan. This plan consists of increasing digital sales on the global marketplace, preparing for the next generation of standards that will be rolling around during the next few years as well as focusing on eSports and aiming to popularise a new culture for content. First part is easy, overall speaking. All Capcom needs to do is release their new games via Steam alongside the usual home console market. That’s effectively what it amounts to. Capcom’s overseas games sales have increased drastically since 2015, while homeland sales have not really changed any. You could say that Capcom’s secret of being successful is to have IPs that are globally attractive. After all, Japan in itself is a very small market compared to the Americas, Europe and Australia, and the rest. China is of course a place they’d like to gain a strong foothold, but that’s going to be difficult still. Make digital the first option, and you’ll save in manufacturing costs. Capcom is also taking note of both Cloud gaming and Subscription services and are exploring ways to enter both of these. Cloud gaming, however, is still a pipe dream, while subscription services should be nothing new to them, technically speaking.

With new standards like 5G wireless, Capcom can’t help but make use of third-party outsider know-how. This is mostly for mobile market and most likely relevant only in Japan, but the underlying message does touch upon upcoming Microsoft and Sony consoles as well.

eSports was a major thing for Capcom last year, and apparently it netted some 1,096 million USD for them during 2019. That’s nothing to be scoffed at, and it is estimated 2020 eSport scene would net some 1,790 million USD. This is through the usual establishing of new leagues, analysis of trends and then promoting regional developments. As long as Capcom manages to establish a profitable and sustainable ecosystem, they should be able to maintain their practices. I’m sure this is part of the reason why Street Fighter V is the way it is, where the game is stable and easily accessible in various regions. The Marvel VS series, while superbly popular in the US, didn’t exactly have the same position in Europe, for example. Street Fighter V aimed to be very safe game and something they can build further revisions on easily, and it has been that. Certainly a success in financial terms, but not really a loved game in the series. However, in the next five years Capcom will assess if there is any more growth in eSports and whether or not it is profitable to continue promoting sales through it.

All this really amounts to Capcom’s plans to effectively follow 2019’s lead in terms of business. MHW has made them recognise that games can, and in future will have, longer sales periods than before. This is partially because digital marketplaces don’t run out of copies and are constantly available. On the long-term, if Capcom is to keep their current standards in visuals and sounds, the Hollywood look in their games, it will cost them more to research and develop. Something they are well aware. This probably means Capcom will put out only few new games per year, which most likely will be sequels or remakes, that they will bet on as their heavy hitters all the while ports and catalog sales are supporting them and making the risk of these big titles slightly smaller. Digital, however, is the thing that is being pushed further.

Interestingly enough, Capcom seems to aim to have their younger employees work on their popular IPs, meaning legacy IP in Capcom is a living thing. If there are more people like Yoshinori Ono, who want to revive a sleeping but still popular IP, in principle we could see some level of resurgence of some IPs down the line. This might be wishful thinking, but history has shown how legacy IP under younger employees can bloom like no other. Take Mega Man and Street Fighter as examples.

Rather than establishing new IPs, Capcom intents to expand new markets and find new customers. You can expect to see more remakes in the future, as games are considered to be obsolete after some time have passed. This seems to be their long-term plan; remakes and ports. At the same time, they aim to curb sales of used-games somehow as well as address piracy, especially in the Asian markets. Capcom loves to talk about their IPs, but at the same time the they’re not having new blood in their library. In the end, their aim is to expand into new territories they’ve yet to make an impact and raise global earnings. This applies to their arcade business as well, where they aim to attract new customers and enhance their lineup of titles.

Their analysis of game industry and market hasn’t changed, with general consumer and PC market overlapping somewhat and offering the most balanced place to be successful in. Mobile market may have large sums of money moving about, but the competition is extremely intense. Consumer market is 77% of all of Capcom’s net sales, followed up by mobile with 2%. PC online, like the crane catcher, makes double that at 4%. While they are in a good position to expand, Capcom currently has mostly high-risk options in their Value, Rarity, Inimitability and Organisational evaluation. Capcom doesn’t have as high competitive edge as they want to believe, as other companies possess all the same external edges as they do. Capcom being slow at making quick decisions probably have already bitten them in the ass couple of times, but the lack of direct competitors to their main selling IPs should be a concern. In Mobile market, however, Capcom is still at a complete loss. Then you have their directors competitors still rolling their IPs in the media and can easily overcome Capcom.

What is Capcom’s plan for the future then? To use their existing Intellectual Properties to make games and leverage them into further franchising. They are no intending to make new IPs at the moment, but deliver further remakes. REmake3 is the direct result of this. Long-term and steady growth seems to be their aim. Expanding their target market and find some new regions in Asia to make some more money. While all this probably will continue to continue kicking just fine, Capcom is not offering anything that could add to their existing strategies or IPs. Perhaps it could be said that Capcom intents to keep their current core customers happy while offering new generation of players the possibility to play classics in a remade fashion and in modern terms. Their plant to “make use of sleeping IPs” ultimately ended up being a remake and DMC5 with some ports. Maybe they could follow suit with some other of their sleeping IPs, like Commando and turn it into a generic Call of Duty clone or something similar. I don’t expect Capcom to expand IP library anytime soon. Now if they’d begin to remake games that would need them, like the original Street Fighter, rather than games that were already well made.

I mentioned Capcom Hollywood games, because it sounds what Hollywood blockbusters are doing; one or two big budget titles per year by using well established IPs carrying the whole studio. Smaller games are not even a thing really with Capcom anymore. Mega Man 11 seems to have been a sort of fluke, as the franchise was moved to mobile once again. All the small titles Capcom has been pushing out as of late have been ports and re-releases. Currently, it seems Capcom is not intending to launch a new IP anytime soon, but in long-term, that should be one of their priorities as well. After all, all of the IPs they like to talk about has to be established at some point, and it is necessary to have something that’s designed from the ground up to the current generation. However, the global popular culture has been marred with rehashes, remakes, adaptations and reboots for good two decades more than previously. Sadly, it must be admitted that relying on existing franchises and IPs with a built-in fanbase to revitalise business has been successful. However, as of late we’ve seen big franchises like Star Wars and Star Trek faulting during the run with lessening revenues and falling consumer interest. Capcom’s management has to work hard to avoid the same pits Hollywood studios have stumbled upon. Capcom has a history of falling on their face and success with this kind of approach, but there’s only so much they can use as existing material for remakes, unless there’s going to be complete and utter reboots.

A Stadiaster

That title isn’t even punny. Yeah I know I’m bad at making jokes and people tend to take me all seriously whenever I make one on the blog, which is why I stopped doing them long time ago (or did I?) I didn’t follow Stadia’s launch per se, but news and people going on about the whole shebang just crept through the grapevines. I couldn’t help but feel slightly sorry for people who got Stadia, but this should also teach people that corporate speech is never to be trusted. While Stadia hasn’t been a complete disaster, it’s damn close to it.

From what I’ve been told, the lag is present in almost every game to a stupidly extreme degree. Button presses are recognised whole seconds after the fact, and some games simply stutter and play slow like you’re in Nino Island Ruins in Mega Man Legends 2, just without the watery ripple effect. The instructions for Stadia recommends cutting everything off in your Internet usage while playing Stadia, including streaming music. It’s also recommended to connect it directly to the router rather than through computer or any other device’s WiFi. There are some additional helps people have found out, but it’s all really to make sure the Stadia has all the bandwidth. Not just some, but all it can have. When I called out Google’s bullshit that it’d do 60FPS 4K in a perfect manner and said nobody really has the speeds or connections to get games running in that quality, I knew people would be bewildered when their games would run terribly. Never trust corporate word, it’s meant to promote and sell, not to be truthful.

That should be few nails in the coffin for Stadia, but that’s just the game side of things. People haven’t got their codes, some have been missing their devices and Google’s own support isn’t even in the know about Stadia. Sure, Google’s a big million dollar company and not everything part of it can be made aware what sort of things the other is doing, but support should really be informed that this kind of product is coming and these are your instructions. This should show that Stadia’s launch very much a rushed thing, that Google barely had any time to put together proper documentations internally and did not prepare what was to come. I bet your ass they know well enough how badly everything would go, but hype will carry anything through. Now that they’re getting real-world test data from existing users, they can start tweaking stuff properly. While not standard, it isn’t unusual for a company to use early adopters as testbeds and beta testers. The “real” launch of Stadia will probably be sometime next year after they’ve further tweaked and fixed stuff, and when that supposed Freemium model of some sort gets launched.

Of course, when you fail at what you intended to do, you can always throw in identity politics and claim some brownie points through that. In an interview with CNN Business, Google VP and head of Stadia Phil Harrison claimed that Stadia is targeting women with Stadia controller. Here’s the archive link for it. If I’m being honest, this is load of bullshit. Stadia controller looks like a generic Chinese knock-off controller you can sometimes see being sold on eBay or other places, it looks like a blander version of the Xbox 360 controller. Controllers in multiple colours has been a thing since at least Commode 64 days, where you could find joysticks and other devices in different colours. Most often something neutral or targeting the pre-existing user group was offered, because those sell. The design director Isabelle Olsson claims that the wasabi colour they went with has universal appeal. There are vast amounts of colours that have universal appeal. Anything pale that’s close to white of course would have universal appeal, as it doesn’t make a strong statement for a direction or another. It’s like vanilla; it goes well with everything and nobody really fights against the taste. CNN Business claiming that it’s slightly easier for small hands to grip than similar products put out by rivals is nothing short of bullshit. All modern controllers that use the handle-grip design have to be designed to fit standard hand dimensions. The overall shape has to be different due to the patents and copyrights, but in recent memory there is only one controller that was intentionally designed to fit larger dimensions than the global standard, Xbox’s The Duke. Claiming that they’re targeting women with these design choices is laughable. It’s nice to say this, when in reality your product is aiming to become a success with general audiences and not just part of it.

Of course, Harrison also mentioned how they don’t have the baggage of pre-existing gamer culture, a thing that’s absolutely false. Whatever they actually mean by gamer culture is well up to debate (long-time readers know that “gamer culture” and its history stems well back to 1800’s and back at least), but you can’t escape the market pressure and demands if you intend to enter a market and succeed there. Stadia may not have history attached to it, but that’s just normal. No new product has a history attached to it, but at the same time, all the pre-existing games that were attached to Stadia bring their history and culture to the platform. Of course, this means Stadia can be the best of the best for a time being, before its core consumer base sets in, but at right now Stadia has more infamy to it than any other platform. Harrison and the rest of the staff that decided on the whole women-centric and sex-neutral marketing have undermined their supposed attempt by bringing in old games that are very well marred in this culture they don’t want to carry. It is extremely haughty to claim you’re targeting an audience that isn’t being catered to, when the world is full of options and readily-catering products. That’s PR for you, throwing out ideas of what you’re doing for the sake of making that sliver more sales. I guess that’s the angle Google has to take with Stadia on the outside to make them stand out from the competition, when their model of service isn’t meeting up with the wants and demands of the audience, targeted or not.

Hell hath no fury like a fan scorned

I have to admit I enjoy following a good shitstorm now and then. Especially on Tuesdays. The latest Pokémon games may be the third most selling Switch titles at the moment, but I’m constantly seeing news about modders injecting better models and textures, as well as importing monster models from the Go games into Sword and Shield. The fans haven’t taken the limited amount of monsters lightly either, alongside numerous other glitches, like the Auto Save glitch that can destroy all your save game data on the SD card, and quality control errors, like mislabeling items or having a mouse cursor moving in the end credits over the scene. All little things pile up very quickly, and even the smallest things, like vanishing Trainers during battles, end up being extremely irksome and simply showcases how badly this game was developed. Then add to the top that this is a series that hasn’t revised its core mechanics at all to the point of having giant ass bears walking in ankle high grass while their forest is one or two trees near, you get the idea that despite the new lick of paint, Pokémon at its core is out of date. At its core, Game Freak is still making that tile based sprite game in their heads rather than building proper worlds with modern tools, mechanics and visages. Then again, why should they bother, when the games still sell so well?

Pokémon Sword sits at 82 points from industry reviewers and 4.1 from general audience on Metacritic at the time of this writing. Eyeing through the reviews, most of the user reviews end up being more or less sensible, if not short. Some recognise that the series has been in decline for years now, while others note how the title Pokémon keeps it afloat to a large extent. Some are spiteful for sure, but that’s what you get for every game. On the contrast, the “professional” review side shows why having 100 points is useless. They really should have to choose between three stars and nothing more or less. All this is largely just academical, however. It’ll take at least six months for proper consumer reaction to show itself and how well sales have been made. It might be the third most sold Switch title at this moment, but will it be keeping its position for long? Considering the Switch doesn’t have exactly the rosiest future regarding additions to its library, it just might.

There are rumours of Game Freak setting up at least some of the missing monsters as event obtainables or the like, pose them as some kind of service, that they listened to their fans and are fulfilling their wishes. Whether or not this is true will be seen in the future, but this isn’t the first time Game Freak has got their fans mad at them, and this won’t be the last time they mostly, if not outright, ignore the consumer feedback. Pokémon has a fanbase dedicated enough to gloss over everything, but that’s emotional attachment to a brand for you.

That said, at least Game Freak and Pokémon at least can do something like this and not lose a whole lot. Well, Sword and Shield have already been financial success, so there’s that. The same can’t be said of Arc System and Guilty Gear, which is now intended to alienate the core fanbase by cutting the series’ play mechanics and drastically alter how the upcoming game is played. While movement options are still there, some series-defining mechanics are lost. For example, Gatling Combos are gone. This is just GG‘s fancy way of saying chain combo, where you can press attack buttons in ascending order for a combo. Roman Cancels, ability to cancel an action at any time, is now a physical hit effect and slows down the opponent rather than functioning as a reset too. The end goal is still the same, but the way you get there is different. Other differences in defence mechanisms and such are many, like how in blocking an aerial attack will change the blocker’s momentum backwards rather than down. The game has become heavy on resetting the player positions rather than encouraging constant forward thrust of offense. I have to admit that my personal preference for Guilty Gear stems from this. There isn’t really another fighting game where offence has all the tools available and is even encouraged.

With Guilty Gear Strive, ArcSys appears wanting to expand their consumer base, which in turn will alienate part of their existing one. It is an incredible balancing act, catering to both new and old. Thus far, every attempt at ArcSys trying to gain new audience with an old IP has been a failure to a large extent, but also that some of their attempts at new IPs have failed harshly. Nobody remembers Battle Fantasia, despite that being the game that Capcom feared due to its 3D prowess when developing Street Fighter IV. Some long-terms GG fans have already stated that they won’t move forwards from Xrd, which also was heavily criticised for dumping mechanics and elements from the previous games as well as slowing down the play. Xrd also allowed larger windows for inputs, but it should also be noted that the game before Xrd, Accent Core Plus R or whatever the latest revision was, was also marred with criticism on how balance and new mechanics threw a monkey wrench into the play. There are certain limitations all around, and unsurprisingly ArcSys has made clear they want new users. Ishiwatari stating how old GG fans are too old to play games and such. They did find success with BlazBlue, though there is overlap between the two series’ player base.

It is four times harder to gain new audience over keeping your old. While Dragon Ball FighterZ may have made loads of cash, it was largely driven by the IP rather than ArcSys themselves. Much like with Pokémon, the fandom often twists the hard data, but the same data also can’t be ignored. If there’s money to be made here in a certain manner, then better make the best of it. Guilty Gear doesn’t have the same backing, all it can support itself with is by its existing fans and the legacy of its past games. Legacy that Ishiwatari wanted to remove at some point, mostly due to licensing and trademark issues. It would appear that all the Guilty Gear games with Sega Sammy attached to them are, or at least were, in some sort of licensing or trademark hell, where ArcSys can’t really do much with them. Guilty Gear 2 was intended to be some sort of soft-reboot of the series, removing all the X-titled games from the canon and memory, but in the end Ishiwatari and co. gave up on that. Now X and XX games are side-stories, but we’ve covered all this in the past. The issue of GG Strive is whether or not can be a hit among new consumers with its more simplified play over the previous entries, and the series’ history tends to say no. While it will find people to play it, and probably enters tournaments just fine, it most likely will gain the same cold and lethargic reception and acceptance and Street Fighter V did. In many ways, fighting games have been aiming to expand their user bases by removing options and making the play more predictable, intended and more about formulaic pacing. SFV actively removed elements from characters that made them wild compared to the rest of the cast, something that could’ve been cool to use and make work. Instead, such things were culled. No-fun rule seems to be in place in modern fighting games, where everything has to be like Finnish autumn; grey with no colours in the nature, wet to the point of nothing ever drying, stupidly dark and enjoyed only by few. You can’t go outside in frolic in a T-shirt and boxers, else you get a pneumonia. That’s what playing SFV is like. While we can’t really tell if Strive will be that too, it’s very much going to that direction.

Much like the previous posts’ Battletoads, you can lose your customers relatively fast by going against the consumer grain. Battletoads had no modern legs to stand on while both Pokémon and Guilty Gear have full titles in recent memory. While Game Freak has to do a lot more damage to Pokémon before they need to put their A-game back into the ring, or reheat some old fan favourite again, ArcSys doesn’t have that luxury. While they could make a new franchise or revive Battle Fantasia for whatever style they want, something that they’d think would appeal to the wider audience, that probably isn’t possible. Recognition also plays a big part in this, but as said, all that can be pissed away if consumers deem your work worthless of the time and effort you put in. Nothing sucks more than having your work judged utter shit, but video games is a service industry. If you expect your customers to pay for your games, these games need to cater to their wants.

Whether or not the audience would like to a properly modernised Pokémon with high quality control and fighting games that are less crazy is up your decision really. You’re the customer, you make the decision where you put your money into.