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Denis Dyack Part Two

The Silicon Knights boss discusses why cloud computing is the future and saviour of the games business

GamesIndustry.biz Have you spoken to OnLive or Gaikai or Sony about any of their cloud plans specifically?
Denis Dyack

The interesting thing about OnLive that a lot of people are discounting it so quickly. People always find reason why something can't happen. Cloud computing could be like the Berlin wall. No one could ever imagine it falling, but once it fell no one could imagine it being up any more. With cloud computing people think it's going to be really hard and ineffective, but I'll tell you right now that we're ready to socially accept cloud computing.

The way it works is that there's not going to necessarily be a single cloud, so the monopoly goes away, you will subscribe to channels where you don't even pay for specific games, you just pay $50 and just like you subscribe to a movie channel you might get the Activision channel. But you might not want to do that. You might want to just pay for Call of Duty separately and it would be there for you forever. And there would be no need to patch it or worry about compatibility because that's taken care of too. The biggest argument against cloud computing that's held the most water is the speed of light issue and latency. I'm really surprised at how people are sticking by that still. Everyone's assuming that OnLive is going to have central servers, but what if OnLive did something like contacted all the local cable providers and set up a cloud in every city? Then the latency issue becomes a non-issue. That seems pretty easy to me. I can play videogames with people in Russia now, we're already doing that.

GamesIndustry.biz Once technology is taken out of the equation, then all we're left with is delivery of content, and there's strong evidence of online services that are close to cloud computing already, right?
Denis Dyack

I don't have any inside information here, but if you were Microsoft why would you want to sell Microsoft Office? Wouldn't you want users to just subscribe to a cloud and get the latest updates all the time? I think it's the future no matter what. Piracy is the big issue. Look at countries like China, where there's a social issue. There aren't strong copyright laws in China. Look at record stores in North America and you won't see anyone in there under 30 because people under 30 don't think they have to buy a CD any more, they can just download an album. In China there's no social drive for people to pay for software, they feel that they don't need to pay for it. When you buy a computer it's filled with software, it's a big issue and the governments are trying to fix it but it's never going to get fixed. There are billions of people there that don't care. If you look at the best selling games there – World of Warcraft is up there. It's not quite a cloud model, but you have to subscribe to the servers and it's protected that way.

There's issues with used games right now. There's so many issues that cloud computing will fix and it doesn't have to be a MMO, it can be a single player game. The great thing about cloud computing and non-linear media is you can protect them on the cloud because it requires two-way input. You can't pirate something you don't have and I think it's the future of our industry. It's really difficult to tell how much money is being lost but most companies would agree it's a hell of a lot.

GamesIndustry.biz Piracy doesn't just happen with expensive games either. Look at the iPhone where games that cost 99 cents are pirated. It's just expected that it's free...
Denis Dyack

I do this for the creative part but I've got to put food on the table, we all have to make a living. It's a real challenge but that more than anything – economics – is going to define that success. I just don't see any other option, I see dire consequences if we don't adopt it.

GamesIndustry.biz I know it's difficult to talk about Too Human, but can you talk about your thoughts once the game was released – were you pleased with the final product?
Denis Dyack

How do I talk about it without talking about stuff that I can't talk about? I really don't want to talk about it right now, but we're certainly happy with the end result, the game that was Too Human. There's obviously a lot of problems associated around the litigation that I can't comment on – that's still being resolved – which is one of the reasons I can't talk about it. But that will come to light in the future.

GamesIndustry.biz Okay. So the big announcements from the console manufacturers this year has been motion control technology – have you got hands on with Natal or Sphere, and what are your impressions of how that can advance the console business?
Denis Dyack

I'm always interested to see how new technologies turn out. I'm a big believer in software over hardware. Silicon Knights has always pretty much focused on what can we do as entertainers? I'm sure it's very possible to have success in those areas, but it's not something that I really look at and go "yes, we'll definitely do something on that." I know a lot of people have expressed excitement and that's great to see. We want to create games that are very content driven and tell great stories and I don't see how Natal is going to help me tell a better story or create better content.

GamesIndustry.biz You're pretty much working undercover now, and I understand you can't discuss current projects – which is good, because that means you're busy...
Denis Dyack

We have marketing plans and if we talk about the games too early it can be a real problem. Marketing is extremely important, more important than anything else and we have obligations to our partners to make sure everything is all in line. Especially now when there are fewer, more important games – they don't want to get anything messed up. Right now we want to keep absolutely everything quiet, and it's for the best.

GamesIndustry.biz But are you happy to work behind closed doors for the time being?
Denis Dyack

Absolutely, I'm a proponent of it. You'll never see a movie before it's done. Our industry sometimes shows games that are more than a year out. That's insane. If a critic is going to overlook some huge problems then the developer shouldn't show it to the press until it's done, because that just creates animosity between the two. Our industry is still a bit young, but it's a financial issue with cash flows. I would love to have a game finished and in the can before starting the marketing campaign. We'd preview finished footage. If you start defending a game that isn't finished you look like you're making excuses but they're legitimate, because it's not done. In the infantile nature of our industry it's a big growing pain. We're starting to see shorter marketing cycles. Once we get enough money in the industry where companies can sit on a game during it's entire marketing campaign then we'll see more accurate reviews.

GamesIndustry.biz Call of Duty: Modern Warfare 2 was only a six month marketing campaign, which was very smart, and interest in it seemed to peak at the perfect time of release.
Denis Dyack

It's safe to say Call of Duty created an event horizon that you just didn't want to be near. There would have been no escape. Everyone at Silicon Knights is playing and they're very critical here. If it sucked they would say, but they're saying it's awesome. I'm happy for Activision, I think that's going to be good for the industry. We need things like that, because despite the horrendous economic conditions that are going on worldwide right now, it really points out that games is a real industry and is going to continue to be successful despite the hard economic times. And when things do get better this is going to be one of the leaders of the new economy.

Denis Dyack is president of Silicon Knights. Interview by Matt Martin.

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Matt Martin

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Matt Martin joined GamesIndustry in 2006 and was made editor of the site in 2008. With over ten years experience in journalism, he has written for multiple trade, consumer, contract and business-to-business publications in the games, retail and technology sectors.