泥中蟠龍's Game愛歌 _ A legend of mecha design talks about pets

泥中蟠龍's Game愛歌

[A love song for games of the dragon waiting for an opportunity]

 

A legend of mecha design talks about pets

 

It has already been one year since I have written this column. Looking back the past year, a topic related to the article, which I wrote by this time last year, came into my mind. It was about a new challenge.

I'm a venture capitalist who specializes in video game investment. But the game is not the only one I invest in. Today I want to talk about other content.

Recently the domestic gaming industry thrives on stereotyped themes of games. The materials are like you've heard of them somewhere: fantasy, monster, magic, knight, evocation, auto-battle, etc. If a player reads an introduction of a game without image, it's even hard for the gamer to recognize whether he/she played it before or not.

I'm a fan of Shōji Kawamori, a Japanese anime creator. His new theater anime Animal Detective Kiruminzoo, which is about transforming into an animal, will be released soon. Some of the readers who don't know about the legend might ask what the animal-themed animation has to do with one-size-fits-all game materials. But a fan of the producer should have noticed why I suddenly mentioned the Japanese animation about animals. Shōji Kawamori was originally a mecha designer. He is not only a specialist but also a great master. The leading figure in mecha designing involved in various types of anime: Valkyrie in The Super Dimension Fortress Macross, mechanical characters in Patlabor, The Vision of Escaflowne, Cyber Formula, and Ghost in the Shell and he also took part in a mecha-based video game Armored Core. Animal Detective Kiruminzoo is his first animal-transforming character design for children. I made a big, long explanation because I'm a big fan of him.

So cut to now, let's go back to the topic. The great artist's new attempt is refreshingly shocking to me who have wanted more than just the same old game materials. It was that the master in his mid-50s having reached the top of his field tried his hand at something completely new. Kawamori observed ecological habits of animals of the forest for months and interviewed hundreds of children to design characters for kids.

I won't give up hope to see a whole new local game which makes me so excited about. Expecting a sobering and challenging game with high quality, I'm going to the movies this weekend taking my nephew and niece who attend primary school to watch Animal Detective Kiruminzoo.

※ This is from Kyunghyang Games column by 泥中蟠龍 since September 2013.

   (http://www.khgames.co.kr)

    Translation by Kim Ki-hui

泥中蟠龍's Game愛歌 _ Video game development and investment

泥中蟠龍's Game愛歌

[A love song for games of the dragon waiting for an opportunity]

 

Video game development and investment

 

I have mainly written about domestic video game developers hoping that they will be able to commercially successful with a good-quality game. But, it may sound like an excuse, I'd like to make harsh comments for game makers this time. Recently I went to a conference-like meeting for content producers and developers. There were a large number of manufacturers and content providers complaining about investors. In short, the complaints can be summed up in four ways.

Firstly getting investment is no different from taking out loans with high-interest rates due to overly conservative investment conditions. Secondly, in spite of detailed explanations, investors cannot well understand a good point of the content because they lack the ability to evaluate it. Thirdly investment firms mostly refuse to invest in new content whose sales performance is hardly expected. Lastly, they don't willingly use their funds in the interest of the public, although a large portion of the fund is from government money.

I'd like to give them convincing explanations about the above in my defense.

First of all, investing in a small business is high-risk so that an investee can think that investment conditions are too conservative. To be honest, the reason a developer raises money from a venture capitalist is not to make a lot of money for the investor but to find a new way for the studio which has encountered difficulty in securing loans. In spite of the investment seen as being conservative according to the internal regulations and conditions, investors often make great losses in a considerable proportion of cases. And the more strict conditions the investee is offered, the less the investment earnings rate the investor take when the company is doing great. If it is visa versa, they will probably complain about a little profit.

Furthermore, most VCs are veterans who have been involved in a particular activity for a long time. I also had ten-year experience in the gaming field as CEO of a game studio for three years, game designer, project manager, and worker for a video game publisher. Most investors actually have much longer experience than I do. If an investee can't win an investor to consent with the beauty of the product regardless of a period when the VC has left the gaming industry, he/she is not good at explaining or the game has no merit to invest in.

Thirdly a venture capitalist externally evaluates the possibility of investment, however, he/she internally have to persuade the people in charge. In the investment committee, VC should convince the insiders to see a chance of success from the point of view of the developer. Unpredictable performance means that it's difficult for the investor to convince the other VCs on behalf of the game maker. The case that the investor is less certain about is very likely to be rejected.

Finally a venture capital investment runs public funding, however, it's a financial company which has to create revenue. The government doesn't leave the management of assets up to the venture capital firms to promote public interests. Each branch of the government uses a fund, named what is called a support project, to serve the common good. And the investment firms cannot run the public funds anymore if profit margin falls. Therefore a developer shouldn't expect a venture capital to invest in it for the common good.

In conclusion, venture capital is a company that invests money in a profitable business and expects to generate more returns than it has invested in. I hope that developers can understand the investment world better and they will get investment with high-quality content. They complain about the difficulty of getting an investment, however, investors also struggle to find a good company.

※ This is from Kyunghyang Games column by 泥中蟠龍 since September 2013.

   (http://www.khgames.co.kr)

    Translation by Kim Ki-hui

泥中蟠龍's Game愛歌 _ Korea's game industry in crisis

泥中蟠龍's Game愛歌

[A love song for games of the dragon waiting for an opportunity]

 

Korea's game industry in crisis

 

The United States and the Soviet Union had always been rivals in many areas since World War II and the two superpowers put securing German rocket technology, the best one of those days, on the top of the list. Of course, it was possible because of Nazi Germany's defeat. America recruited German scientists, engineers, and technicians before Germany was defeated and collapsed under a secret program named Operation Paperclip. Soviet Russia, which was fallen behind the competition, secured production facilities. As a result, the Soviet Union stayed ahead of the competition for aerospace industry based on its infrastructure, however, it was beaten by the United States which had the world's best space technology.

In recent years, the Korean gaming industry has developed in a difficult situation. Government has regularly imposed regulations to reduce the teenagers' playing time under the pretext of protecting the right to study and sleep of youths and recently there is a discussion of a Game Addiction Law to regulate video games such as drugs. Some people in the gaming industry call themselves as 'drug manufacturers' and other ones think about parental roles because their children might be ashamed of what their parents do.

Recently Chinese big companies have successively invested in domestic video game companies. Even some people say that huge capitals from China are taking over Korean game studios like shopping. The gaming industry is mostly based on gaming industry workers because there are very little manufacturing facilities. Eventually, there might be left local game firms and employees that are subordinate to Chinese capitalists.

It usually takes at least a few years up to more than a decade to bring qualified professionals after being aware of a shortage of workers. Now a lot of game developers prefer overseas companies to domestic ones and many of them regret being members of the gaming industry. Also, a large number of game studios are going broke daily. The recent Korean gaming industry, in spite of its poor industrial base, has maintained the growth relying on foreign capital. But the gaming market is becoming more dependent on overseas capital. There should be the drain of the domestic industrial base into foreign countries and the local companies would disappear due to a shortage of new workers when it will be incessant a few more years.

A flower in a flowerpot grows as much as the size of the pot. I don't mean that the gaming industry should be the beneficiary over the other field. But we should not stand in the way of the industry's advancement at least. The local gaming industry is mostly dominated by overseas firms and they might take full control of the whole industry in which more than 100,000 workers are engaged. The continuously tightened regulations, aside from support from the government, is not much different from confining the domestic gaming industry in a small flowerpot.

Many local game developers are seduced to shift their companies overseas with various benefits in a bad situation where there are higher marketing costs, excessive government restrictions, and increased competition, etc. It seems like an Operation Paperclip for Korean game companies somewhere. The local game industry hasn't collapsed yet. But I cannot help thinking of a cup of soju because of tens of thousands of employees who are called drug manufacturers. With due respect to a great number of workers in the gaming field, I deeply hope that the Korean gaming industry will not be German rocket technology.

※ This is from Kyunghyang Games column by 泥中蟠龍 since September 2013.

   (http://www.khgames.co.kr)

    Translation by Kim Ki-hui