Annie Carlson said:
I honestly wish I knew WHY they did the blockbuster strategy. IT DOESN'T WORK. The market is simply too saturated to get the sales numbers they expect. And the way I figure it, any good company doesn't just stick to what they know, but invests a respectable (but not ludicrous) amount of money into R&D - riskier, more low-budget titles in the case of games. I really would love hearing a publisher rep explain it to me, because as a dev, seeing companies cut their funding on more interesting projects (like EA's Dead Space, which nearly got canceled about a skrillion times) for more same-y titles drives me nuts.
It is a stage all markets go through - though for the gaming industry to still be stuck in the mass-market phase at its current quantity of sales displays an incredible lack of commercial expertise. It strikes me that games are brainstormed as if they are still art-products: i.e. the design developers think of an idea, then go to the publisher, then once production is underway and ONLY THEN are the marketing execs called in. Hence marketing is treated as 'advertising', rather than a study of which markets to aim at, and how to reach them. This leads to 'once-size-fits-all' products with a lot of failures.
In a mature commercial market, marketing is the start of the product cycle, as the marketing end determines what target market has potential profitability, and then asks the designers etc to come up with a product that services that market. This leads to niche or segmented marketing, as it is always more profitable in a mature market to create separate products for separate niches - if you don't, then someone else will and each niche will buy the product that is specifically aimed at them, rather than you're 'one-size-fits-all' product that doesn't really fit anybody.
Even in the movie business, major studios realise the need to devote a significant portion of their budget to indie divisions, often disguised as separate 'independent' production-houses that are really fully or mostly owned by a major studio - and which have access to that major studio's infrastructure.
I'm not saying 'go marketing, boo artistic development' - the BEST way to have varied niche products is for them to be purely artistic. But at the moment gaming is in no-man's-land, with the commercial focus and need for profits restricting 'for-the-sake-of-it' innovation, while lacking the competition and marketing nous to diversify from mass-market to segmented-marketing.
Edit: and btw I don't think that a more segmented market-focussed approach would hurt the creative end of the games. If anything it would help it - the single biggest thing holding back decent game writing is that, unlike ANY other published artistic medium, the artistic designers and writers get selected before they have created a script. Imagine if movies worked that way - that rather than directors calling for script writers and choosing the best work out of the ones submitted, a lead writer was just appointed at the start and that was the script that was used, regardless of whether it ended up being good and regardless of what other scripts are out there? Actually you don't have to imagine - that's how TV soaps are written (that's trash drama, 'days of our lives'-type-stuff for you Americans, not sure if you guys use the term 'soaps'). Development companies want to have writing and story akin to what you get in movies (Bioware I'm looking at YOU), but use the artistic model of the worst crappy daytime TV shows.