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Portalarium's Richard Garriott

On his new Lord British-style game, standardising social gaming, and the problem with start-ups

GamesIndustry.biz The social and casual space seems to have consolidated very rapidly...
Richard Garriott

When you talk about resets, that allows new companies and teams to come into existence, Ultima Online was the first massively multiplayer online game. At that time no other firm was interested in doing them because they didn't understand it. So a few new companies came into existence that are now permanent.

NCsoft is one of those and they were inspired by Ultima Online as it was in development. Zynga and Playfish, they didn't exist previously and now they're very big players. Each of these moments allows a few new players to come into existence and compete with the previous generations standards. However, those eras don't last.

It took 20 years for solo player games to mature and then consolidate. My first company Origin was one of the top ten, but eventually, top ten isn't big enough. Eventually you have to be the top five or top three. We had to sell Origin to Electronic Arts because otherwise you don't get access to the distribution channel.

MMOs have levelled the playfield again, and social games have levelled it once more. It was level for 20 years with solo games, ten years for MMOs and now five years for social and casual. And we're already through three of those five years.

GamesIndustry.biz Do you think the social market is going to level out soon with just the four or five top companies? Is it already almost that time? There's a lot of money being thrown around, a lot of land-grabbing going on.
Richard Garriott

There is, but most of it is junk. What's interesting is that there are a few companies that are making real money in a big way so they deserve their high valuation by all means. And they've not only led the charge but they are evolving quickly and they're doing a brilliant job of it. I have respect and admiration for my already titanic competitors that are ahead of me.

That being said, there's tonnes of small start-ups who we are seeing take lots of investment and lots of activity and large acquisition costs - who are creating, literally, junk. Stuff that people aren't playing that much and if you play it, it's not much fun. But it does show you there are investors desperate to find a foothold in this market.

There are lots of individual developers who have now finally seen the light and realised they want a piece of the action too. I install and play as many of those game as I can see and find just to see if there's somebody we want to work with, or acquire, or see as competition. It's fascinating to watch how everybody is still in over their heads. I do think it's going to be short-lived, the door will close quickly.

People that think we have the permanent door open of free distribution on the internet and therefore viral is going to be the great permanent equaliser - it's just not true. Because you're still going to be competing for mindshare and access to where people go to find this information. Advertising and distribution muscle is still going to win that day.

Richard Garriott is CEO of Portalarium. 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.

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