Corporations Exist to Make Money…But That Isn’t Really the Point

Free-Money-2013-edition

Corporations exist to make money. It’s becoming a well worn phrase. Cliff Bleszinski employs it defensively. Jim Sterling rages when the concept is used to excuse consumer-unfriendly practices. But it’s really a meaningless notion. Of course corporations exist to make money. EVERYBODY working in a capitalist society exists to make money. It’s much like when the anti-vaccination movement attempts to offset accusations of scientific ignorance by saying that they do support vaccines that aren’t dangerous. No shit, huh? Thanks for clearing that up.¬†What separates corporations is not that they exist to make money, but how much money they require to exist, or more specifically, how much more money they require to exist than an independent developer.

Let’s take an, admittedly, simplistic example. Three developers start an indie studio called Fun Pants Games, and spend 6 months eating ramen, living rent free with their significant others, and making a game, Zombie Cocoa Pants Party, which they then release on the App Store. This game goes on to make $600,000 dollars in revenue and, after Apple’s cut, $400,000 in gross profit. At that rate, they could each take a $75,000 cut and Fun Pants Games would have a net income of $175,000. That’s a pretty good take for a start-up indie studio.

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The Backwards Way The Industry Looks at Used/Rented/Borrowed/Pirated Games

This fox isn't evil. It's just doing what it needs to do.

This fox isn’t evil. It’s just doing what it’ supposed to do.

Look at this fox for a moment. Imagine that the rabbit in its mouth is the very last member of a specific rabbit species. The fox has just hunted this particular family of rabbits to extinction, without any help from humans. But does that make the fox evil? Of course not. The fox is doing what it’s supposed to do: find creatures smaller than itself and eat them. The rabbit, for its part, failed to evolve to outrun or outbreed this predation, and therefore was not fit to survive. There is nothing moral or amoral about it. It simply is.

The biggest mistake the industry has, collectively, made with regards to used games is to treat it as a moral dilemma. Gamers are failing to support us. Retailers are stabbing us in the back. Pirates and Gamefly are destroying our profits. We rant and rave in interviews and on Twitter. We decry the wickedness of anyone who does not purchase a new copy on day one, and rail against a vast conspiracy eroding our bottom line. How dare they, these people who call themselves our fans, not support us with their money. The unbelievable gaul of these corporate leaches that have spawned whole new industries, like malignant tumors, on the back of our hard work and have cut us out of the profits. Don’t they understand what they are doing to us? Continue reading