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What LA Noire will do for Take Two

By on May 17, 2011
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I was interviewed for the Guardian’s piece on LA Noire. Originally, it was going to run as a news piece, so they wanted comments from industry types on its importance.

I didn’t comment on the game’s cultural significance (I haven’t played it), but this is what I had to say on the business importance of the game.

Games have more right to be considered art than novels

“I haven’t played the game, but I hate the idea that we have to earn our place as an artistic medium. Games were played as a way of teaching, learning and exploring the world before language existed; I think we have more right to be considered art then novels, frankly.”

Big games keep getting bigger

“Anyway, without knowing much about LA Noire, I will say this about the market: the games market is changing. The big are getting bigger and it is now possible for small niche games to be very profitable. Amidst all the doom and gloom of job losses across the games industry, we also keep getting blockbuster releases that beat all previous records: Black Ops last year, Modern Warfare 2 in 2009, GTA IV before that.”

An amazing result for Take Two

“If this game is as good as you say it is, it has every chance of being a record breaker. And if so, that would be an amazing result for Take 2, which now has Grand Theft Auto, Red Dead Redemption and LA Noire in its stable. And that should make the shareholders happy.”

Go read the full review of LA Noire over at the Guardian now.

About Nicholas Lovell

Nicholas is the founder of Gamesbrief, a blog dedicated to the business of games. It aims to be informative, authoritative and above all helpful to developers grappling with business strategy. He is the author of a growing list of books about making money in the games industry and other digital media, including How to Publish a Game and Design Rules for Free-to-Play Games, and Penguin-published title The Curve:
  • Noodles

    The reason Rockstar doesn’t “monetize through their transmedia efforts” is because they are in the business of making great games and they have no interest in diluting their brands with a bunch of tangential junk. 

  • Fun times if you are a startup. But shouldn’t the likes of T2/ATVI follow the example of UBI and move horizontally and exploit their IP? I keep thinking about the panel you were on the other day @ Mind Candy HQ. If Moshi is able to monetize through their transmedia efforts, why these companies with larger audiences are not investing more? I mean since they will only be able to push out a very limited amount of AAA per year – and their customers have an inelastic supply of hardcore gameplay hours – it would make sense to me to expand in stuff like movies, apparel, food, comics, TV so you can monetize their demand for additional experiencing of the IP without forcing them to sit in front of a console.

    I think it’s very challenging being a AAA developer. If your business is selling physical discs through a retail outlet then you do not have a business. Just a legacy one. These guys should read The Innovator’s Dilemma and fund newcos focused on cross-monetization or acquire the likes of Bigpoint (and Namaste hahaha) before they get too big.

    Either way I do not see taking a long position on any of these companies unless they show the ability to execute beyond their current business model.