VETENSKAP OCH KONST INDUSTRIAL ENGINEERING AND MANAGEMENT !"#$%&'()* +,)"&)%-)./'() 0$12$*&$')* !"&3')2&(43 5("3-) 633&% 6)%%-5$*&$')* 63#() 78 0(-$*)&(/" MIKOLAJ DYMEK 9/2&/')* :,3%(% (" !"#$%&'()* ;2/"/-(2% )"# 6)").3-3"&, </=)* !"%&(&$&3 /8 :32,"/*/.= 0&/2>,/*-, 0?3#3" @ABA Akademisk avhandling som för avläggande av teknologie doktorsexamen och med tillstånd av Kungliga Tekniska Högskolan i Stockholm framläggs för oDentlig granskning. Onsdagen den BE juni @ABA, klockan BF.AA i sal GH, Lindstedsvägen @E, I:J i Stockholm. G)>$*&3&%/KK/"3"&: Professor Saara Taalas, Åbo Handelshögskola 0&/2>,/*- @ABA !"%&(&$&(/"3" 8L' ("#$%&'(3** 3>/"/-( /2, /'.)"(%)&(/", I$".*(.) :3>"(%>) JL.%>/*)" ( 0&/2>,/*- !"#$%!&$ 'e video game industry has in three decades gone from a garage hobby to a global multi-billion euro media industry that challenges the signi(cantly older and es- tablished cultural industries. After decades of explosive growth the industry sur- prisingly (nds itself in a crisis – in terms of sales, future trajectories and creative paradigms. 'e global gaming culture receives substantial attention from society, media and academia – but the industry itself appears in comparison as an enig- matic terra incognita with astonishingly little dedicated research. 'is thesis aims to amend this situation by presenting a study at the cross-section of the video game industry, game studies, literary theory, cultural industries and business studies. It deals with the following question: how does the global game industry relate to its own product, in terms of communication and media dimensions, and what are the (business) consequences, in terms of production, strategy and commercial/creative innovation, of this relationship? 'is study’s departure point is constituted by a comprehensive description of the industry’s structure, dynamics and processes, based on extensive interviews with industry professionals. It is followed by an examination and comparison of the game industry with other media/cultural industries in relation to their econ- omy and business dynamics. With inconclusive answers regarding the medium- industry relation, this study proceeds by exploring literary theories from the (eld of game studies, in order to gain insights into the dynamics of medium and industry. Literary theories from ludology and narratology provide rewarding perspectives on this inquiry, since it is found that the ontological dichotomy of simulation vs. respresentation present in the interpretational realm of the game medium is also re)ected in the industry and its dynamics. 'is has pivotal consequences for the analysis of the game industry. 'is study concludes by positing the current critical condition of the industry as an extremely decisive moment in its history: will it become a truly universal mass- medium, or will it continue down its subcultural path? Subcultural “interactive cinema” meets mass-cultural media of simulation – how will the industry evolve? *+,-./01: video game industry, computer game industry, video games, computer games, cultural industries, media industries, cultural economy, game studies, literary theory, ludology, narratology,interactive cinema, simulational media, ergodic literature, cybertext, interactive narrative, business studies, industrial economy, hardcore gaming, casual gaming, subcultural industries $/234-567-% 89:9:9; 5##< ::99-=>?8 5#%</*$@/567-%-:9:9; 5#"< >=?->:-=A:B-CA8-; INDUSTRIAL PHANTASMAGORIA – S UBCULTURAL INTERACTIVE CINEMA MEETS MASS-CULTURAL MEDIA OF SIMULATION !" #$%&'() *"+,% -.$/(-012-3 4565:57 0889: 6655-:;<4 0839/=->/012-3-65:57 08?9: ;:<-;6-:@6A-B@4-7 C,D$EF: #(/,GDH C"+,% (I&JF( KC-D$EF) TABLE OF CONTENTS Abstract ! Preface "# 09-32*LM-029 Why Video Games? "$ Nesis Question $# Methodological Description $% OP3- 0 QP#1 M31P-029 P9* 0-8 23QP90RP-029 From Idea To Design &' Materialisation of Software "#% Distribution "%& Marketing and Publishing "($ Consolidating Fun – Economies of Game Consoles ")* Cultural Industries "!( O(./ 00 -S, #,C$G+ Games as Games ''& Materiality of Software ''! DeTning the Field: Ergodic Texts '%% Electronic vs. Paper Text Forms '%! Notions of Interactivity '($ Ne Fundamentals of Cybertext: Typology of Textual Communication '$% Images or Texts: Aarseth’s Typology Evolved ')# Deconstructing the Narrative of Video Games '&" Comeback of the Story: Narratological Perspectives '*% Film/Video Game Neory '** Narratology %## Ludology vs. Narratology %%* O(./ 000 *"F(+$UD &V #,C$G+ (FC 0FCGD/." Towards Brave New Worlds %&& Ne Mono-Subculturing Machine of the Video Game Industry %*# Ne Phantasm of Interactive Cinema %*) Implementation of the Vision %!' Ne Hardcore Subcultural Industry Spiral of Interactive Cinema %!! Creative Conservatism – Innovation in the Video Game Industry (#$ Wii-ndicating the Alternative ('# New Media Dynamics and Future of Video Gaming (%' Future of the Game Medium: Subcultural Industry of “Interactive Cinema”, or Mass-Cultural Media of Simulation? ((( References ($% ABSTRACT -S, X$C,& E(+, $FCGD/." has in three decades gone from a garage hobby to a global multi-billion dollar media industry that challenges the signiTcantly older and established cultural industries. After decades of ex- plosive growth the industry surprisingly Tnds itself in a crisis – in terms of sales, future trajectories and creative paradigms. Ne global gaming culture receives substantial attention from society, media and academia – but the industry itself appears in comparison as an enigmatic terra incognita with astonishingly little dedicated research. Nis thesis aims to amend this situ- ation by presenting a study at the cross-section of the video game industry, game studies, literary theory, cultural industries and business studies. It deals with the following question: how does the global game industry re- late to its own product, in terms of communication and media dimensions, and what are the (business) consequences, in terms of production, strategy and commercial/creative innovation, of this relationship? Nis study’s departure point is constituted by a comprehensive descrip- tion of the industry’s structure, dynamics and processes, based on extensive interviews with industry professionals. It is followed by an examination and comparison of the game industry with other media/cultural industries in relation to their economy and business dynamics. With inconclusive answers this study proceeds by exploring literary theories from the Teld of game studies, in order to gain insights into the dynamics of medium and industry. Literary theories from ludology and narratology provide rewarding perspectives on this inquiry, since it is found that the ontological dichoto- my of simulation vs. respresentation present in the interpretational realm of the game medium is also reYected in the industry and its dynamics. Nis has pivotal consequences for the analysis of the game industry. Nis study concludes by positing the current critical condition of the industry as an extremely decisive moment in its history: will it become a truly universal mass-medium, or will it continue down its subcultural path? Subcultural “interactive cinema” meets mass-cultural media of simu- lation – how will the industry evolve? W PREFACE I would like to fully dedicate this thesis to my father, Doctor (of medicine – the real kind) Maciej Dymek, who unfortunately passed away when I was just beginning my research project in 4554. I am endebted to my supervisors, which during my PhD project have been: Prof. Mats Engwall (4565), Prof. Claes Gustafsson (4557 – 455;) and Prof. Alf Rehn (on and o] 455@ – 4565) – thanks for your input. My family has been crucial during this long process: the best sister and brother of the world – Matylda and Mateusz. Ney have helped, inspired and comforted me emotionally during this tiresome ride called thesis. Ney have also taught me one or few things about media, narrative, writing, and independent/solitary work – all very useful things when writing this the- sis. I’m also thankful for their patience during several years of writing and claims of being “almost Tnished”. Of course my eccentric matriarch Mama and wonderful Babcia (who joined me to NY!) have also been important as well as many others of my dearest Varsovian family: Szwagier, Anka, Michał, Marta, Ewa, Mila (cuuutest golden child of the world!), Danusia and Irena (świętej pamięci). Ne most inYuential and helpful fellow academic travellers during this excessively long journey have been the good, old brothers in arms: the “In- dek ELIT ” group. I would like to thank Sven Bergvall, Nomas Lennerfors, Helena Csarmann (for being my oldest Indek friend), Charlotta Mankert (for her quirky insights into everything from turbo warrant trading to Tgure skating couture), David Sköld and later with additional “members” Stefan Görling (for “i Lidingö ” and endless other corrections), Alexander Löfgren (“riktigt fwäscht! ”) and Lucia Crevani (for anti-heroic world con- spiracies with a distinctive Milanese twist). Particularly prominent among this group is Sven and Nomas – without them this thesis would have been impossible. Ney have provided me with endless intellectual debates and practical support for this thesis, but more importantly lots of good laugh- ter, mindboggling fun and free drinks. I am also glad I can call them true friends for the rest of my life. [\ Nere are more people I would like to thank in academic circles: pri- marily Janet Borgerson and Jonathan Schroeder (for showing me how dynamic, exciting and stimulating the academic world