Why I’m All In On Mobile VR

Last month I released Caldera Defense, a Virtual Reality tower defense game on Gear VR. This is the second Gear VR title I’ve worked on, and the first I’ve built and published from the ground up. (Not including my Oculus Mobile VR Jam submission) Caldera Defense is a free early access demo–basically a proof of concept of the full game–and the reaction has been great. Thousands of people have downloaded, rated, and given us valuable feedback. We’re busy incorporating it into the first update.

Caldera Defense featured on the Gear VR store

Originally I planned to use this as a demo to fund an expanded PC and Morpheus launch version of the game with greatly improved graphics, hours of gameplay, and additional features such as multiplayer and second-screen options.

However, pitching even a modestly budgeted console and PC VR game experience to publishers, or even the platforms themselves, is a tough sell. I’m sure at E3 next month we will see all sorts of AAA VR announcements. Yet, many traditional funding avenues for games remain skeptical of the opportunity VR presents.

Since the Caldera project began last year, mobile VR has morphed into a unique opportunity. With over a million Google Cardboards in the wild and new versions of the Gear VR headset in retail stores worldwide, there will be millions of mobile VR users before there’s comparable numbers on Oculus desktop, Vive, and Morpheus.

Is it possible that mobile VR will be a viable business before it is on PC and consoles? Most of my colleagues are skeptical. I’m not.

The economics work out. Due to the mobile nature of the experience, games and apps for these platforms tend towards the bite-sized. This greatly reduces the risk of mobile VR since assets optimized for mobile are simpler and casual VR experiences require less content to be built overall.

I can make a dozen mobile VR minimum viable products for the same budget of one modestly scoped Morpheus experience. From these MVPs I can determine what types of content gains the most traction with VR users and move in that direction. I can even use this data to guide development of larger AAA VR experiences later.

By this time next year it will be possible to monetize these users significantly, whether through premium content or advertising. It may be more valuable to collect a lot of eyeballs in mobile VR than breaking even on a multi-million dollar AAA launch tile. As we’ve seen in the past, acquiring a huge audience of mobile players can lead to tremendous revenue streams.

Being on the Oculus desktop, Vive, or Sony’s Morpheus deck at launch is an enormous opportunity. In fact, I’m still searching for ways to produce the console and desktop version of Caldera Defense. However, if you lack the capital to produce at that scale, smaller mobile projects are much easier to bootstrap and the upside is huge.

Adult Contemporary Video Games

One of my favorite Combat Jack podcasts of 2014 is when they interviewed legendary hip hop producer, Marley Marl over the Summer.  Marly Marl invented the modern hip-hop sound most take for granted and created the Juice Crew, one of the most important groups of MCs ever.

The Juice Crew

Before producing hit records, Marley had a career as an on-air DJ, starting on Mr. Magic‘s show on KISS-FM in New York.  In the ’90s he went on to host “Future Flavas” with Pete Rock on Hot 97.  Marley Marl was also still producing hit albums for the likes of LL Cool J and Lords of the Underground.

Times change, and Marley Marl isn’t producing music for 20 year olds anymore.  While many DJs desperately hang on to their fading youth, Marley tried another tactic.  He moved over to WBLS which plays old school hip hop for a mature audience.

it just so happens, rap fans in their fourties and beyond have far more disposable income than those in their teens and twenties.  His WBLS show has gone on to be a great success.  It turns out that despite being a youth-powered movement, there’s plenty of advertising dollars in hip-hop appealing to older rap fans.

This got me thinking about video games.

A lot of veteran developers are debating about the decline of AAA games in the face of the disruptive waves of free2play and mobile.  Many gamers in their demographic agree.  If that’s the case, why not appeal to this older audience?

The challenge to monetizing these gamers is that although they have the same taste in games they may have had over a decade ago, their play styles are vastly different due to lifestyle changes.  If you’ve got kids or a demanding job, perhaps you no longer have 120+ hours to spend playing an RPG. However, you might digest the same style of game in shorter episodic bursts on a tablet or smartphone.

Some developers have caught on to this and produce what I call Adult Contemporary Video Games.  A good example is the 1980s pencil and paper RPG, Shadowrun.  Microsoft’s attempt at AAA shooter based on Shadowrun was an abject failure (although I quite liked it).  Five years later, Harebrained Schemes went from a surge of support on Kickstarter for “Shadowrun Returns” to a series of popular mobile and PC downloadable games based on the franchise.

Shadowrun for iPad

This is a smart strategy–delivering content aimed at an older audience on newer devices.  Those of us who grew up not on just the original RPG, but the SNES and Genesis games were ripe for a new entry in the series.  This model has also seen success with Wasteland 2, and surely the upcoming Bard’s Tale sequel will continue the trend.

It remains to be seen if you can develop a new IP targeted at this audience.  A lot of what you hear on Adult Contemporary radio is old artists making new music.  In games it may be the same. So far, the genre seems to bank on nostalgia by resurrecting classic franchises for an older audience on new devices with updated play styles. Especially if you include teh current wave of retro remakes. While some veteran developers excel at creating games for the new mobile f2p masses, others may be more suited for this viable slice of the market.

A Weekend at Oculus Connect

I spent this past weekend at Oculus Connect and have just now had the time to process what I saw. For Oculus to go from a humble Kickstarter project a few years ago to a capacity filled conference rife with amazing demos and prototypes by countless developers is mind-boggling. I know I said VR in 2014 is like Mobile in 2002, but the pace of progress is staggering. The maturation path for VR is going to be MUCH quicker. Is it 2005 already?

...and all I got was this lousy t-shirt.

…and all I got was this lousy t-shirt.

As I stated before, Gear VR is the most important wearable platform in the universe. I’ve been developing Gear VR games for a while and am thoroughly convinced this wireless, lightweight platform will have far more reach than VR tethered to your desktop.

The GearVR demo area.

The GearVR demo area.

The apps on display were great, but I even saw a few Gear VR demos from random developers in the hotel hallways that blew away what were officially shown in Samsung’s display area. Developer interest for Gear VR is very high. Once it’s commercially available, a flood of content is soon upon us.

Despite the intense interest in the platform, I spoke to a few desktop and console developers who dismissed Gear VR as a distraction and are ignoring it–which I think is really short-sighted.

It’s true that there may be a division in audiences. Gear VR may be the larger, casual audience while apps built around Oculus’ astounding Crescent Bay platform could be for a highly monetizable market of core enthusiasts. Either route is smart business. Depending on how long you can hold out for customer traction, that is.

Oh, and Crescent Bay…was a revolution. There’s probably not much more to be said about it that hasn’t already–but the ridiculous momentum behind Oculus’ path from the DK1 to Crescent Bay makes me question the competition. Oculus has hired all of the smartest people I know and have billions of dollars to spend on VR R&D–which is their main business, not a side project. Will competitors like Sony really commit enough resources to compete with the relentless pace of Oculus’ progress?

Why Consoles Didn’t Die

Yeah I was wrong. But hey, so were a lot of people. The PS4 barrels ahead with the fastest selling console ever. Microsoft is making a lot of similar but highly qualified statements about the XBOX One which leads me to believe it’s lagging behind significantly. Still, the recent European price cut and upcoming tent pole releases may perk things up.

photo (39)

Regardless, most console doom predictions haven’t come true. This is because Microsoft, and primarily Sony, changed their business models in response to the looming threat from mobile and tablets. If consoles kept going the direction they were in 2008, we would see a totally different story.

What changed?

No more loss leaders.

Consoles historically launched as high-end hardware sold at a loss–but still quite expensive. This peaked last generation with the ‘aspirational’ PS3 debuting at nearly $600 in 2006. The idea behind this business model was that they’d make it up in software sales and eventually cost reduce the hardware.

This time, Sony took a page out of Nintendo’s book and built lower cost hardware that can at least be sold close to breakeven at launch. The downside being that the tech specs are somewhat mundane. Price sensitivity wins over performance.

Dropping the gates.

The tightly gated ecosystem that dominated consoles for decades would have been absolutely disastrous if left to stand. Sony has largely obliterated their gate and gone for a more authoritarian version of Apple’s curated model. Surely the most significant evidence of mobile’s influence on console to date. Microsoft has also adopted this posture with their ID program. The indie revolution is heavily influencing games, and allowing this movement to continue on consoles is a smart move. Especially when fewer and fewer studios can execute at a AAA level.

Users didn’t move.

A lot of analysts mistook stagnant console numbers for lagging demand. It turns out, there really was just nothing else to buy. Despite hype about core games on mobile–that transition has yet to happen. Most titles console players would recognize as ‘core’ games have utterly failed to gain traction on tablets. Core gamers want core games exclusively on console or desktop while reserving mobile for a completely different experience.

Eventually we’ll see a major disruption in how and where games are consumed. It’s going to take longer than one console generation to transform core gamer habits. It also may be too early to tell. After all, we’re only a few months into this generation.

The fact is, the AAA economy isn’t sustainable. Massive layoffs, even while Sony is basking in post-hardware launch success, shows not all is well with the AAA end of the spectrum.

From Bits to Atoms: Creating A Game In The Physical World

Some of you may recall last year’s post about 3D printing and my general disappointment with consumer-grade additive manufacturing technology. This was the start of my year-long quest to turn bits into atoms. Since that time there has been much progress in the technology and I’ve learned a lot about manufacturing. But first, a little about why I’m doing this, and my new project titled: Ether Drift.

Ether Drift AR App

A little over a year ago, I met a small team of developers who had a jaw-dropping trailer for a property they tried to get funded as a AAA console game. After failing to get the game off the ground it was mothballed until I accidentally saw their video one fateful afternoon.

With the incredible success of wargaming miniatures and miniature-based board game campaigns on Kickstarter, I thought one way to launch this awesome concept would be to turn the existing game assets into figurines. These toys would work with an augmented reality app that introduces the world and the characters as well as light gameplay elements. This would be a way to gauge interest in the property before going ahead with a full game production.

A lot of this was based on my erroneous assumption that I could just 3D print game models and ship them as toys. I really knew nothing about manufacturing. Vague memories of Ed Fries’ 3D printing service that made figurines out of World of Warcraft avatars guided my first steps.

3D printers are great prototyping tools. Still, printing the existing game model took over 20 hours and cost hundreds of dollars in materials and machine time. Plus, 3D prints are fragile and require a lot of hand-finishing to smooth out. When manufacturing in quantity, you need to go back to old-school molding.

You can 3D print just about any shape, but molding and casting has strict limitations. You have to minimize undercut by breaking the model up into smaller pieces that can be molded and assembled. The game model I printed out was way too complicated to be broken down into a manageable set of parts.

Most of these little bits on the back and underside would have to be individual molded parts to be re-assembled later--An expensive process!

Most of these little bits on the back and underside would have to be individual molded parts to be re-assembled later–An expensive process!

So I scrapped the idea of using an existing game property. Instead, I developed an entirely new production process. I now create new characters from scratch that are designed to be molded. This starts as a high detail 3D model that is printed out in parts that molds are made from. Then, I have that 3D model turned into something that can be textured and rigged for Unity3D. There are some sacrifices made in character design since the more pieces there are, the more expensive it is to manufacture. Same goes for the painting process–the more detailed the game texture is, the more costly it becomes to duplicate in paint on a plastic toy.

We're working on getting a simple paint job that matches the in-game texture.

We’re working on getting a simple paint job that matches the in-game texture.

So, what is Ether Drift? In short: it’s Skylanders for nerds. I love the concept of Skylanders–but, grown adult geeks like toys too. The first version of this project features a limited set of figures and an augmented reality companion app.

The app uses augmented reality trading cards packed with each figure to display your toy in real-time 3D as well as allowing you to use your characters with a simple card battle game. I’m using Qualcomm’s Vuforia for this feature–the gold standard in AR.

The app lets you add characters to your collection via a unique code on the card. These characters will be available in the eventual Ether Drift game, as well as others. I’ve secured a deal to have these characters available in at least one other game.

If you are building a new IP today, it’s extremely important to think about your physical goods strategy. Smart indies have already figured this out. The workflow I created for physical to digital can be applied to any IP, but planning it in advance can make the process much simpler.

In essence, I’m financing the development of a new IP by selling individual assets as toys while it is being built. For me, it’s also a throwback to the days before everything was licensed from movies or comic books and toy store shelves were stocked with all kinds of crazy stuff. Will it work? We’ll see next month! I am planning a Kickstarter for the first series in mid-March. Stay Tuned to the Ether Drift site, Facebook page, or Twitter account. Selling atoms instead of bits is totally new ground for me. I’m open to all feedback on the project, as well as people who want to collaborate.

How to survive the mobile gaming apocalypse

I was listening to the latest Walled Garden podcast and towards the end they stopped just short of stating what many developers I talk to have been saying–mobile gaming is dead.

Ok, not actually dead. After all, mobile gaming revenue is higher than it’s ever been, and mobile consumption of everything is eating the planet. However, mobile gaming is completely dead as a business model for independent developers and undercapitalized startups.

IAP has become so dominant that there’s really only one somewhat reproducible way to make money in the AppStore: make a hamster wheel f2p game in a handful of established genres and spend tens of thousands of dollars a day on user acquisition to drive traffic to it. Despite many bold experiments, the charts increasingly bear this out.


This means that some companies with top charting mobile games aren’t actually making a profit as UA costs can eat up most of the revenue. Surely this will produce a shakeout and consolidation in 2014. This is similar to what happened to Facebook games circa 2010 causing a mass exodus to mobile.

Now that mobile is dead, where should you escape to? There are several options.


The PC, and more specifically Steam, remains the platform of choice for those who actually want to charge money for content. There’s a large market for premium games and Steam has loosened their gate with the advent of Greenlight. Some prominent developers have been abandoning mobile for PC with their new projects. Despite PC sales declining in the face of tablets, it makes sense. This is where the paying customers are.


A lot has been written here about the impending demise of consoles, but Sony and Microsoft managed to change up their business model and product strategy enough to have early success with both the PS4 and XBOX One. One of the big changes has been the thawing of the gated ecosystem and allowing independent developers to self-publish. Oh yeah, and on the Wii U also.

Next generation console owners are starved for content. There will be many independent successes over the next few years before the channel becomes completely saturated.


On one hand VR is merely a peripheral for existing games, on the other it’s part of an entirely new category of wearable computing and an emerging platform. Oculus Rift is the clear leader with a huge round of investment and development kits widespread. However a glut of VR headsets is on the horizon.

Oculus is building an ecosystem out of their device, but VR content can be distributed through any PC gaming channel. Although, supporting every single headset may be a nightmare for developers–isn’t it time for some kind of standard VR API?

Board games

Board games are a cottage industry yet a hot category on Kickstarter. As an example, Sandy Peteresen’s Cuthulu World Combat iOS game Kickstarter failed miserably, but when re-pitched as a board game, it blew past its funding goal. Going from digital to physical presents a lot of new challenges for developers, but does have a dedicated fan base of paying customers. Plus, you can’t pirate a board game!

Facebook / Web

Facebook games ‘died’ in 2010, but are ironically becoming an increasingly common alternative platform for mobile developers. Especially if you have a working web client already, why not put it on Facebook? The problem is the audience is decidedly non-hardcore. Facebook games can still make some money, but for a very specific audience. However, for hardcore games, the open web still remains a viable place to find an audience of paying gamers. Kongregate proves this.

What needs to change in mobile?

The supremacy of f2p and the very few options for user acquisition make the momentum towards free and the companies with enough money to compete in the mobile UA wars insurmountable. Apple could make some changes to the App Store to help support premium games and other alternative business models, however there really isn’t any incentive to do so–Either way, Apple sells phones. It’s difficult to foresee anything but the continuing dominance of f2p and mega-publishers on mobile in 2014. If you have a ton of cash and resources, solving this problem is hard, and thus very lucrative. For the rest of us, plan your strategy accordingly.

My Week with the XBOX One

A mere week after the outstanding launch of the PlayStation 4 comes Microsoft’s XBOX One with a similar success story. Hey–time for some bulletized observations:

Quick!  Where's the games??

Quick! Where’s the games??

The interface is hideous. I’m not a huge fan of Windows 8, but I do think Windows Mobile is pretty snazzy. Yet, Microsoft’s implementation of the “Metro” tile interface on XBOX One is bewildering. You’re constantly getting lost in a sea of scrolling tiles with no context. Especially considering the sheer number of panels on the screen at once, navigating with the controller is a pain. The XBOX One main shell seems designed to be used with a mouse or touch instead of a control pad.

Voice control is a neat trick, but not quite ready. I have to speak in hushed tones around my console because if I dare mention its name, I’m not sure what will happen. In my house, “XBOX” is a killing word.

TV Integration is probably awesome–if I watched TV. I don’t watch much TV, and I certainly don’t watch live TV. So, all of these DVR features on the XBOX One are lost on me. Still, the ability to hook in your TV’s HDMI feed and use the XBOX One as a DVR and cable box is pretty cool–especially when using voice control to search for content. It’s the dream of Google TV realized. I guess. This really isn’t a feature I care much about. I do love the universal IR blaster feature–shouting “XBOX On” to turn on all my equipment is a neat trick!

The actual box is ugly. It’s nowhere near as bad as the original XBOX, but can’t touch the beauty of the gleaming white original XBOX 360. That’s still among my favorite consumer electronics industrial designs. The XBOX One is huge and seems to resemble a 1980’s VCR.

The launch title lineup is strong. By far, Dead Rising 3 is my favorite next generation exclusive. Granted, I’m a huge fan of the series. I’m not a big racing game player, but friends of mine who are love the new Forza–especially with individual button feedback. Even the free2play Killer Instinct has defied expectations. Unlike the PlayStation 4, there aren’t many smaller indie digital exclusives–likely due to Microsoft’s recent reversal of their self-publishing policy. Regardless, the XBOX One currently has better games–the most important point!

Overall I’m quite pleased with the XBOX One. The hardware specs are a bit lower than the PS4 and it’s a little more expensive, but so far the games are strong and the platform shows a lot of promise for growth. Microsoft has also swerved a bit to avoid total disruption, but the verdict is still out. You can’t go wrong making either choice, but if you were to evaluate both the PS4 and XBOX One purely on games alone–I’d have to give the edge to XBOX.