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‘Animal Crossing: New Horizons’ and the limits of today’s game economies

Kaiser Hwang
Contributor

Kaiser Hwang is a longtime member of the games community and a vice president at Forte, an organization building an open economic platform for games.

“Animal Crossing: New Horizons” is a bonafide wonder. The game has been setting new records for Nintendo, is adored by players and critics alike and provides millions of players a peaceful escape during these unprecedented times.

But there’s been something even more extraordinary happening on the fringe: Players are finding ways to augment the game experience through community-organized activities and tools. These include free weed-pulling services (tips welcome!) from virtual Samaritans, and custom-designed items for sale — for real-world money, via WeChat Pay and AliPay.

Well-known personalities and companies are also contributing, with “Rogue One: A Star Wars Story” scribe Gary Whitta hosting an A-list celebrity talk show using the game, and luxury fashion brand Marc Jacobs providing some of its popular clothing designs to players. 100 Thieves, the white-hot esports and apparel company, even created and gave away digital versions of its entire collection of impossible-to-find clothes.

This community-based phenomenon gives us a pithy glimpse into not only where games are inevitably going, but what their true potential is as a form of creative, technical and economic expression. It also exemplifies what we at Forte call “community economics,” a system that lies at the heart of our aim in bringing new creative and economic opportunities to billions of people around the world.

What is community economics?

Formally, community economics is the synthesis of economic activity that takes place inside, and emerges outside, virtual game worlds. It is rooted in a cooperative economic relationship between all participants in a game’s network, and characterized by an economic pluralism that is unified by open technology owned by no single party. And notably, it results in increased autonomy for players, better business models for game creators, and new economic and creative opportunities for both.

The fundamental shift that underlies community economics is the evolution of games from centralized entertainment experiences to open economic platforms. We believe this is where things are heading.

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Confronting racial bias in video games

Protests across the U.S. over police violence and systemic racism against Black Americans have sparked gaming companies like Electronic Arts, Epic Games and Sony Interactive Entertainment/PlayStation to publish statements of their support and make donations to relevant advocacy organizations.

These are positive actions, but the most impactful thing game companies can do is take action internally. Racial bias is baked, usually unintentionally, into games by those who develop them. This creates a recurring pattern of Black and Latinx characters being stereotyped or completely absent in games, which is invalidating and demeaning.

There are 2.5 billion gamers in the world, a group that includes consumers across every ethnicity and age (especially in mobile gaming, the largest market segment). Quartz has noted that “57% of video game players in the U.S. between the ages of 6 and 29 will be people of color in less than 10 years.” Black and Latinx youth in the US spend more time per day, on average, on both mobile games and console games than white youth. For hundreds of millions of gamers globally — particularly in demographics driving the industry’s rapid growth — there are very few games whose stories center on characters like them. That is also a missed business opportunity.

“Telling these stories isn’t as niche as people think it is. Look at [the Marvel movie] Black Panther,” says Rashad Redic, co-founder and Chief Creative Officer of Brass Lion Entertainment, “The content is defined by whether it’s entertaining, period.”

Beyond characters’ skin color, there are subtle aspects of game development that contribute to underrepresentation or misrepresentation. The consistent view among gaming executives and researchers I interviewed for this article is that the lack of diversity among employees at leading gaming companies results in leadership remaining largely oblivious to this.

Raising this simple critique isn’t always welcome. Games industry journalist Gita Jackson, for example, has described the criticism she gets anytime she mentions the race of characters within a game. “I think the presence of more video game characters who are women of color is good … These should not be controversial statements — I’m simply stating something I appreciate, something that’s relevant to me,” she wrote last year, “and yet some readers responded as if I’d suggested that all gamers should amputate their pinky toes.”

Character representation

One of the most extensive studies of racial representation in games was a 2009 study that analyzed 150 of the most popular titles. Black characters comprised 10.7% of characters, roughly on parity with the then-most recent census data that 12.3% of Americans are Black, and only 2.7% of characters were Latinx (relative to 12.5% representation in the U.S. population). But Dmitri Williams, a professor at the University of Southern California and the lead author of that study, says that Black representation is even lower if you only look at primary characters and that in any case “athletes in sports games account for most of the Black characters in those games.”

Kishonna Gray, a professor at the University of Illinois—Chicago, highlights that merely tracking the number of Black characters present in games misses the point of how they are represented. “In film, there have historically been three roles you see Black characters in: Black as violent, Black as the sidekick, Black as the help. This has also been true in video games.”

Furthermore, she argues that “sports games should be removed from those analyses since they are just copying real people from the real world” and mask the statistics that would show how infrequently Black characters arise from the creative process at most game studios.

Casting specific demographics in a certain light in any form of media has an impact on consumers’ perception of those demographics in the real world. At least one academic study found that white participants were more likely to associate Black faces with negative words after playing a violent video game as a Black character than after playing a violent video game as a white character.

When the only option to experience the fantasy worlds of many games is through white characters, it internalizes in many gamers that those fantasy worlds weren’t designed for them. “Anything is possible in games,” Gray told me in reference to her passion for the industry, “But anything is only possible for white characters. When they add Black characters to a game they root them only in their real world context … why can’t Black characters ride dragons?”

Game developer demographics

Data has shown that the representation of different races within games correlates to the racial makeup of the game development community. According to Williams. “It was pretty much a one-for-one representation.”

The International Game Developers Association (IGDA) found in the 2019 edition of its annual survey that among game developers worldwide:

  • 81% identify as “white/Caucasian/European”
  • 7% identify as “Hispanic/Latinx”
  • 2% identify as “Black/African-American/African/Afro-Caribbean”

“People draw their inspiration from their experience,” explained Gray, “that’s why we still have a problem with representation.” Redic said that during his career — which includes roles at top gaming companies like Bethesda and Crytek — he has frequently been “the only — or one of very few — Black guy among hundreds of game devs at a company.”

Tanya DePass, founder of the non-profit I Need Diverse Games, makes the point that for companies wanting to improve diversity in their content, “the biggest thing is diverse staff, and diverse staff at leadership level.” Moreover, her advice to game studios is to hire outside experts who can review their development plans and give feedback on where their content may stereotype or misrepresent an ethnic group: “Bring in diversity consultants in the beginning, not a month before launch, and treat it seriously.”

One company that uses consultants is Niantic, the studio behind Pokémon Go and Harry Potter: Wizards Unite. It has also implemented “Diversity and Inclusion check-ins through a game’s concept, preproduction and postproduction phases,” according Trinidad Hermida, the company’s Head of Diversity and Inclusion. “These check-ins look at everything from character design to evaluating whether the internal Niantic team working the product is diverse,” she explained, “Every new game we publish must go through this process to launch.”

Good intentions, slow progress

That IGDA survey last year also found that 87% of game developers said “diversity in game content” is “very important” or “somewhat important,” which offers optimism that representation can improve as developers are pushed to think of diversity less in the abstract and more in the context of the specific games they work on.

The number of Black or Latinx characters across popular games is indeed growing, even if that progress is quite slow relative to the pace at which the demographic makeup of the gaming community is diversifying. Examples can be found in Moby Games’ list of games with Black protagonists through 2017 and the list of Black video game characters on Wikipedia.

Giving users lots of options to customize their avatar’s appearance goes a long way in helping different demographics of gamers feel welcomed and emotionally attached to a game. This is increasingly common in games, but there are often more limited options for Black avatars, like the ability to choose natural hair styles. DePass says that game developers “are often not thinking about the fact that there are other people who also want to see themselves [in creating their avatar].” And when they do, the homogeneity of their team can lead to foreseeable mistakes. For example, DePass expressed that “If Black hair is available at all, it looks bad. Sometimes there’s 5 inches between braids; or Afros look like steel wool. It’s like, ‘Have you ever met a Black person or seen photos of black hairstyles?’”

Cyberbullying

Cyberbullying is a big issue in games, MMOs in particular, and in their efforts to combat it, gaming executives should recognize that both female gamers and Black and Latinx founders are particularly targeted with abuse, often denigrated with slurs and racist jokes.

A small but important step that developers can take, according to Gray, is giving players the option to mark racist behavior as the reason for submitting a complaint against another user. Many games have added the ability to mark a complaint as being due to gender discrimination, she notes, but the lack of a similar option for racism permits game studios to remain ignorant about how often racism occurs on their platform. Collecting data on a problem allows for more measurement of that problem and more effective action to address it.

Building for an underserved market

As DePass noted in our call, “There aren’t a lot of Black creators of games, but there are a lot of Black buyers of games.” There is business opportunity in creating content that better speaks to often-overlooked segments of the gamer community.

The natural question here is: If making games with narratives that center on Black or Latinx characters is a compelling business opportunity, why hasn’t it already been tapped? Leadership at established gaming companies “have a sense of who is a gamer, and who isn’t, that is very archaic” says Glow Up Games CEO Mitu Khandaker, whose studio is developing a mobile game leveraging IP from the HBO show “Insecure.”

Likewise, she explains, entrepreneurs who found their own studios with this thesis quickly find that the major funding sources (publishers and venture capitalists) are composed of ethnically homogenous teams who are quick to judge such games as niche.

As a result, the game developers focused on building games that speak to Black and Latinx audiences remain stuck in the indie games space, lacking the resources or industry credibility to develop a AAA title.

There’s a long list of societal problems that contribute to the disproportionately small number of Black software engineers entering the games industry or in leadership roles in the industry, from less access to high-quality STEM education in K-12 to employers devaluing degrees from historically Black colleges and universities to the well-researched pattern of resumes with white-sounding names receiving dramatically more job interviews.

Khandaker noted that the perceived lack of representation and role models for Black engineers looking at the gaming industry causes many to avoid the sector altogether, and many who enter the industry leave it in frustration.

Taking responsibility

On our recent call, Williams shared his memory of speaking on a panel about racial bias in games at the DICE Conference for game executives: “In the few minutes of transition between the prior session and my panel, roughly 90% of the audience left.”

A repeated sentiment among several of those I interviewed for this post was that the problem is not gaming executives with harmful intent so much as gaming executives lacking the interest or empathy to treat diversity as an issue that they personally should dedicate time to address. Discussion of diversity, whether at conferences or otherwise, is still too often treated as a token matter for purposes of political correctness, not a pressing business problem to solve.

If the current news cycle is helping change that attitude and energize executives in the industry to step up, the most impactful action they can take is to approach diversity as a product development priority not as a PR issue.

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Google Cloud launches Game Servers, a managed cloud backend for games

Google Cloud today announced the beta launch of Game Servers, a managed service that provides game developers with the usual backend services for running their games, including multi-player games, in the company’s cloud. It’s worth stressing that these are not game streaming servers but solely meant to make it easier for game developers to build, scale and manage the backend services for their games.

The service sits on top of the Agones open-source game server, a project Google and Ubisoft first announced in 2018, and the Kubernetes container orchestration platform. As Google Cloud product manager Scott Van Woudenberg told me, the team is also reusing some parts of Anthos, Google’s service for managing multi-cloud Kubernetes clusters. And while Game Servers can currently only run on the Google Kubernetes Engine, the plan is to allow for hybrid and multi-cloud support later this year.

Quite a few gaming companies have already built their own on-premises server fleets, so just like in the enterprise, having hybrid-cloud capabilities is a must-have for a tool like this. Google will also make it easy for developers who already use Agones outside of Game Servers today to bring those servers into the same managed Game Servers ecosystem by registering them with the Game Servers API.

As Van Woudenberg noted, virtually every game now needs some kind of cloud backend, be that for multi-player features, match-making or keeping persistent game stats, for example. That’s true for indie developers and major game studios. Game Servers, ideally, will make it easier for these companies to scale their clusters up and down as needed. Game Servers also provides for A/B testing and canary tests, and, in future updates, it will include integrations with the Open Match matchmaking framework.

To get started, developers still have to containerize their game servers. For those companies that already use Agones, that’s a pretty straightforward exercise, Van Woudenberg said. Others, though, need a bit more help with that, and Google is working with partners to walk them through this.

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Snap is channeling Asia’s messaging giants with its move into gaming

Snap is taking a leaf out of the Asian messaging app playbook as its social messaging service enters a new era.

The company unveiled a series of new strategies that are aimed at breathing fresh life into the service that has been ruthlessly cloned by Facebook across Instagram, WhatsApp and even its primary social network. The result? Snap has consistently lost users since going public in 2017. It managed to stop the rot with a flat Q4, but resting on its laurels isn’t going to bring back the good times.

Snap has taken a three-pronged approach: extending its stories feature (and ads) into third-party apps and building out its camera play with an AR platform, but it is the launch of social games that is the most intriguing. The other moves are logical, and they fall in line with existing Snap strategies, but games is an entirely new category for the company.

It isn’t hard to see where Snap found inspiration for social games — Asian messaging companies have long twinned games and chat — but the U.S. company is applying its own twist to the genre.

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Facebook opens Instant Games to all developers

Facebook’s Instant Games are now open to all developers, Facebook announced this week in advance of the Game Developers Conference. First launched in 2016, the platform lets developers build mobile-friendly games using HTML5 that work on both Facebook and Messenger, instead of requiring users to download native apps from Apple or Google’s app stores.

The Instant Games platform kicked off its launch a couple of years ago with 17 games from developers like Bandai Namco, Konami, Taito, Zynga and King, who offered popular titles like Pac-Man, Space Invaders, and Words with Friends. The following year, the platform had grown to 50 titles and became globally available. But it wasn’t open to all – only select partners.

In addition to getting users to spend more time on Facebook’s platform, Instant Games provides Facebook with the potential for new revenue streams now that Facebook is moving into game monetization.

In October, Facebook said it would begin to test interstitial and rewarded video ads, as well as in-app purchases. The tools were only available to select developers on what was then an otherwise closed platform for Facebook’s gaming partners.

Now, says Facebook, all developers can build Instant Games as the platform exits its beta testing period.

Alongside this week’s public launch, Facebook introduced a handful of new features to help developers grow, measure and monetize their games.

This includes the launch of the ads API, which was also previously in beta.

In-app purchases, however, are continuing to be tested.

Developers will also have access to Facebook’s Monetization Manager, where they can track manage ads and track how well ad placements are performing; as well as a Game Switch API for cross-promoting games across the platform, or creating deep links that work outside Facebook and Messenger.

Facebook says it also updated how its ranking algorithm surfaces games based on users’ recent play and interests, and updated its in-game leaderboards, among other things.

Soon, Instant Game developers will be able to build ad campaigns in order to acquire new players from Facebook. These new ad units, when clicked, will take players directly into the game where they can begin playing. 

Since last year, Facebook Instant Games have grown to nearly 200 titles, but the company isn’t talking in-depth about their performance from a revenue perspective.

It did offer one example of a well-performing title, Basketball FRVR, which is on track to make over 7-digits in ad revenue annually, and has been played over 4.2 billion times.

With the public launch, Facebook is offering Instant Games developer documentation page and a list of recommended HTML5 game engines to help developers get started. Developers can then build and submit games via Facebook’s App page.

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To IP or not to IP, that is the question

ip-homer-raph-pika The rise and fall of Pokémon GO begs us to ask many questions regarding how to launch a game to position it for success. One specific question it raises is whether branded intellectual property is something game makers should consider prior to launch. Branded IP is one of the most time-tested ways to launch games that go on to become immensely popular. Read More

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Microsoft Acquires SyntaxTree To Offer Better Unity Support In Visual Studio

unityvs-2 Microsoft today announced that it has acquired SyntaxTree, the France-based company behind UnityVS, a popular Visual Studio plugin for developers that use the cross-platform Unity framework to write their games. As S. “Soma” Somasegar, Microsoft’s corporate vice president of its Developer Division, notes, the company plans to integrate UnityVS into Visual Studio “and… Read More

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