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Limitation to Innovation in the North American Console Video Game Industry 2001-2013: a Critical Analysis

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Limitation to Innovation in the North American Console Video Game Industry 2001-2013: a Critical Analysis Western University Scholarship@Western Electronic Thesis and Dissertation Repository 12-15-2015 12:00 AM Limitation to Innovation in the North American Console Video Game Industry 2001-2013: A Critical Analysis Michael Schmalz The University of Western Ontario Supervisor Nick Dyer-Witheford The University of Western Ontario Graduate Program in Media Studies A thesis submitted in partial fulfillment of the equirr ements for the degree in Doctor of Philosophy © Michael Schmalz 2015 Follow this and additional works at: https://ir.lib.uwo.ca/etd Part of the Digital Humanities Commons Recommended Citation Schmalz, Michael, "Limitation to Innovation in the North American Console Video Game Industry 2001-2013: A Critical Analysis" (2015). Electronic Thesis and Dissertation Repository. 3393. https://ir.lib.uwo.ca/etd/3393 This Dissertation/Thesis is brought to you for free and open access by Scholarship@Western. It has been accepted for inclusion in Electronic Thesis and Dissertation Repository by an authorized administrator of Scholarship@Western. For more information, please contact [email protected]. Limitations to Innovation in the North American Console Video Game Industry 2001- 2013: A Critical Analysis (Thesis format: Monograph) by Michael P. Schmalz Graduate Program in Media Studies A thesis submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy The School of Graduate and Postdoctoral Studies The University of Western Ontario London, Ontario, Canada © Michael P. Schmalz 2015 ABSTRACT In today's marketplace the ability to innovate is considered a key driver of success and economic prosperity (Florida, 2002; Howkins, 2001). From an innovation perspective, video game development has often been viewed as an exemplary case of a creative digital industry whose products and services are quickly consumed and hence require a constant flow of new content. This dissertation reviews innovation in the video game industry more critically. After examining the main lines of contemporary innovation theory, it proposes a model of the innovation process in the development cycle of console video games, evaluating the roles of three principle actors: consumers, publishers and developers. It then shows how, while the interaction of these stakeholders sometimes results in original new products and services, it also often fails to do so and indeed can actually impede truly creative innovation. The study aims to dispel popular myths about the embrace of innovation by the video game industry and contribute to the debate on the role of innovation in today's post-industrial economy. Key Words: Video games; Innovation; Game consoles; Creative industries; Industry Evolution; Digital media. ii ACKNOWDEGEMENT I would like to acknowledge my supervisor, Dr. Nick Dyer-Witheford for his expertise, advice and guidance in the completion of this dissertation. I would also like to thank my father, Dr. Peter Schmalz, for his help and inspiration. This is for my daughter, Rachel Schmalz. I hope she will find similar inspiration to accomplish some of the difficult tasks in her own lifelong journey of learning. iii TABLE OF CONTENTS ABSTRACT .......................................................................................................................................................... ii ACKNOWDEGEMENT ..................................................................................................................................... iii TABLE OF CONTENTS .................................................................................................................................... iv LIST OF FIGURES ............................................................................................................................................. vi LIST OF TABLES.............................................................................................................................................. vii PREFACE ............................................................................................................................................................ 1 Chapter 1 Innovation Theory ............................................................................................................................... 8 1.1 INTRODUCTION .................................................................................................................................................... 8 1.2 TERMS AND DEFINITIONS ..................................................................................................................................... 9 1.3 SCHUMPETER AND INNOVATION ........................................................................................................................ 10 1.4 BUSINESS INNOVATION THEORY ........................................................................................................................ 13 1.5 CRITICAL INNOVATION THEORY ........................................................................................................................ 16 1.6 CONCLUSION ..................................................................................................................................................... 22 Chapter 2 The Console Game Industry ............................................................................................................. 24 2.1 INTRODUCTION .................................................................................................................................................. 24 2.2 SCOPE ................................................................................................................................................................ 26 2.3 THE DOMINANT DESIGN .................................................................................................................................... 29 2.4 A CLOSED FORMAT SYSTEM .............................................................................................................................. 35 2.5 THE REVENUE MODEL ....................................................................................................................................... 41 2.6 MEDIA ECONOMICS ........................................................................................................................................... 46 2.7 CONCLUSION ..................................................................................................................................................... 48 Chapter 3 A Model of Console Innovation Processes ........................................................................................ 50 3.1 INTRODUCTION .................................................................................................................................................. 50 3.2 FUNCTIONAL INNOVATION IN THE CONSOLE GAME INDUSTRY .......................................................................... 51 3.3 THE INNOVATION CYCLE ................................................................................................................................... 55 Chapter 4 The Video Game Developer .............................................................................................................. 63 4.1 INTRODUCTION .................................................................................................................................................. 63 4.2 WHO ARE THE GAME DEVELOPERS? .................................................................................................................. 67 4.2.1 Organization of Game Development Labour ............................................................................................ 68 4.3 CREATIVE LABOUR AND INNOVATION ............................................................................................................... 74 4.3.1 Easter Eggs and Creative Freedom .......................................................................................................... 79 4.3.2 EA Spouse: Labour Unrest ........................................................................................................................ 81 4.4 STANDARDIZATION AND GAME TECHNOLOGY .................................................................................................. 85 4.4.1 Standardization and Network Externalities in the Video Game Industry .................................................. 90 4.5 SUMMARY .......................................................................................................................................................... 93 Chapter 5 The Video game Player ..................................................................................................................... 99 iv 5.1 THE HARDCORE GAMER .................................................................................................................................. 104 5.2 THE GENDERED GAME PLAYER ....................................................................................................................... 108 5.2.1 Gendered Content ................................................................................................................................... 111 5.3 PLAYER ENGAGEMENT .................................................................................................................................... 122 5.3.1 Mastery and Skill....................................................................................................................................
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