A Decade Ago: When the Gaming Industry Faced Backlash Over Always-Online Consoles

The gaming industry's tendency to focus on the future often leads to overlooking its past. However, looking back can provide valuable insights. This monthly feature highlights significant events in the gaming industry from a decade ago. Last month, we revisited the launch debacle of Electronic Arts' always-online SimCity, which was marred by poor execution and a widely criticized digital rights management (DRM) system. EA Labels president Frank Gibeau defended the decision, stating that it was the creative team's choice to create a multiplayer experience. However, in a retrospective interview, SimCity lead designer Stone Librande revealed that the primary motivation was to combat piracy. The backlash against SimCity's launch did not deter other companies from considering always-online requirements. Reports circulated that Microsoft's upcoming console would also require a constant internet connection, prompting a heated debate. Microsoft Studios creative director Adam Orth sparked controversy with his comments on the issue, which were seen as dismissive of consumers' concerns. The backlash against Orth's comments was intense, with many criticizing his tone and the company's approach. Microsoft eventually distanced itself from Orth's comments, and he resigned shortly after. The company's handling of the situation was widely criticized, and the controversy surrounding the Xbox One's online requirements dominated the console's launch. The restrictions were eventually dropped, but not before they had a significant impact on the console's perception and sales. In hindsight, the gaming industry has become more connected, with many games requiring online connections. However, the shift towards digital distribution and free-to-play models has also raised concerns about player ownership and the potential for companies to abandon support for older games. The story serves as a reminder that companies must balance their desires with the needs and concerns of their customers. Other notable events from the same period include Nintendo's decision to end support for certain Wii Channel services, the launch of the Ouya console, and the rise of Supercell, which was valued at $800 million in 2013 and later acquired by Tencent for $10.2 billion. The period also saw predictions about the future of the gaming industry, with some correctly identifying trends and others missing the mark. For example, Epic CEO Tim Sweeney predicted a bright future for HTML5, which did not materialize. In contrast, former Playdom VP Gordon Walton correctly identified the diversity of the gaming ecosystem as a strength, while also acknowledging the challenges faced by AAA game developers. The industry has continued to evolve, with companies adapting to changing consumer behaviors and technological advancements. Despite the challenges, the gaming industry remains a vibrant and dynamic sector, with a wide range of games and business models available to consumers.