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Obsidian says it won't chase huge profits or grow aggressively, and that's how it's going to last 100 years in the RPG business: 'Are we serious? Yes'

ElFenomeno

Member
Idk, I’m like four or five hours in. But if you’re going to use a quote as the crux of your position then at least read the entire thing 😆
Well yeah, there is nothing ambitious in it. Enemy variety is abysmal, NCPS are static like trees, combat is nothing to write home about, story is apparently mid/not interesting. I will stop here...:messenger_neutral:

I've read your entire post. Well for me they're equally shit...a mediocre AAA RPG made in 7 years or a mediocre AA RPG disguised as AAA and sold for 70 bucks made in 3 years. :messenger_tears_of_joy:
 
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The 100yr comment isn't silly at all. It's an indication of their intent to manage the studio tightly and not take on too much commercial risk. It's a sound strategy for the longevity of the studio. Know your limits and manage them appropriately.

It's the difference between studios like Obsidian and the 500 dev houses that shutdown during the PS3 gen, because they exploded from a headcount of 60 to 300 overnight.
It is silly because of the fact that they are not in control. Microsoft is, and they can change their expectations or kill them to hide a bad quarter. If they are lucky they can use Microsoft inertia to their advantage but Tango is proof that even a successfull game is not enough sometimes. IMHO once you are under a publisher I think that either going too big to fail or having a niche can work. Does Obsidian maintain the perception of being good at RPG when huge hits like Hogwarts, Baldur gate 3 and the witcher 3 show the "future" of the genre? And from below games like Hades?
 

VulcanRaven

Member
That is a good strategy actually. Remedy seems to be doing that too. If budgets aren't too high its easier to make profit.
 
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It is silly because of the fact that they are not in control. Microsoft is, and they can change their expectations or kill them to hide a bad quarter. If they are lucky they can use Microsoft inertia to their advantage but Tango is proof that even a successfull game is not enough sometimes. IMHO once you are under a publisher I think that either going too big to fail or having a niche can work. Does Obsidian maintain the perception of being good at RPG when huge hits like Hogwarts, Baldur gate 3 and the witcher 3 show the "future" of the genre? And from below games like Hades?

Ok I see where you're coming from.

I still disagree the comments are silly. Myopic? Yes, based on your argument, which is a sound one.

That said, I do think MS needs content to continually fill GamePass, so as long as they continue to back GamePass, Obsidian will be safe as long as they don't end up putting out games that get critically panned.
 

GymWolf

Member
They said they’re basing their expectations on ‘mild success’, not that they want mild successes.
Nobody’s going to turn their nose up at money.



Warhorse Studios has 250 employees. Avowed has like 80 people in the team, with Obsidian split between it and Outer Worlds 2.

KCD2 has a whole lot more resources dedicated to it than Avowed.

Ironic, since Avowed itself had a significantly increased budget over Outer Worlds.
Do we know the budget of avowed? Because kc2 was just 40 mil.

And how you spend your budget is kinda the point.

I know american devs take much more money but after seeing the results, maybe some people should start looking in the mirror in the morning and evaluate if it's right to ask such money or maybe they should not split the team to begin with.
 
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geary

Member
Do we know the budget of avowed? Because kc2 was just 40 mil.

And how you spend your budget is kinda the point.

I know american devs take much more money but after seeing the results, maybe some people should start looking in the mirror in the morning and evaluate if it's right to ask such money.
Probably more because is based in California. I would go to say maybe ~50-60
It doesnt have mocap since that's a pit for bugets...

If game is 70 on steam, minus the steam cut, let's say the revenue is 50 euros per unit, meaning they need 1 mil to recover budget...Let's say 2 million. I think it's reachable.
 
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simpatico

Member
They had a bit of a comeback in the 2010s with Pillars and Tyranny. Outer Worlds was exciting because it was like Fallout in space but it missed the mark. I thought maybe Avowed would be where they got things back on track but that didn't materialize.
I didn't see ambitious scope in those. New Vegas they pulled off a narrative web that allowed you to kill every AI in the game, or none, and still get a coherent ending. Alpha Protocol was a moonshot (and a miss), but I supported and applauded the moonshot. The isometric stuff just felt like safe plays. We've got an infinite number of indie studios who can provide us with safe plays. I hoped for more from Obsidian.
 
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ungalo

Member
That is a good strategy actually. Remedy seems to be doing that too. If budgets aren't too high its easier to make profit.
Remedy is independant, ofc they won't bet too much on one project, but from Obsidian standpoint i don't really understand.

And regarding the quality of the games, i don't think their current strategy is working. Avowed shouldn't have taken so many years to make just for this result (even though this kind of game is pretty complex), something is not right. It will probably be the same for TOW 2.

The problem is, games like Avowed or TOW 2 are perceived like low budget effort, when there is still a 100+ people team behind, that worked on it for 5 years. The games are actually not ugly looking, you can tell there has been some work put into the art direction, the graphics, but i feel this work not only didn't pay off (because even if not ugly, the games are still lagging behind the competition), but the time they took to actually craft an only decent combat system with some sense of feeling, open areas with decent graphics, it was still too much for them to the extent that they couldn't make more than a 30 hours game (a 30 hours fucking RPG in this day and age where even God of War is 50 hours long), with a half baked world, dumb down interactions and systems (no stealing etc, it's even more simplistic in Avowed than in TOW, they keep regressing), average story, forgettable quests that lack an intricate narrative design.

New Vegas had a sprawling open world with several hundred hours of content, i don't know how many factions, locations, quests, even though it was seen as a technical mess and graphically outdated. The depth of the game outshined its shortcomings. The shortcomings actually existed because the devs worked 100% on the strenght of the game. And it's not the case anymore, the price they pay just for trying to make a game that's not completely outdated is so huge it takes a toll on every other aspect.

So in my opinion, either they come back to very low budget CRPG like Pillars of Eternity or Tyranny, or they get the full force of the studio on one game, or hire more people and make something ambitious. The in-between doesn't work.
 
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panda-zebra

Member
It looks like a safe and calculated strategy to tick over both under the wing and expecting gaze of MS in uncertain times.

Don't grow the studio - "partner" aka outsource.
Don't reach for the stars when the ceiling is enough to keep you in the black.
Don't roll the dice on a high stakes, half-decade+ AAA magnum opus with high potential for development hell/failure when 3 smaller efforts in the same timeframe validate your existence as part of the Game Pass machine.

It's not very exciting and not something I'd cheer or champion as someone who values the heights of Obsidian's historic efforts, but it's more likely to keep the lights on and pay salaries.

It'll be less the performance of their upcoming titles and more Game Pass' continued existence that dictates the success or failure of this plan.
 

Ozriel

M$FT
Do we know the budget of avowed? Because kc2 was just 40 mil.

And how you spend your budget is kinda the point.

I know american devs take much more money but after seeing the results, maybe some people should start looking in the mirror in the morning and evaluate if it's right to ask such money or maybe they should not split the team to begin with.

Not everyone can completely reconstitute their studios in Eastern Europe, can they?

KCD2 had 250 employees to throw at the game. More artists, more programmers, more everything. Lower budget because of much lower salaries.
 

pudel

Member
The isometric stuff just felt like safe plays.
I dont agree. CRPG's were dead for minimum a decade before Pillars. Pillars of Eternity revived the whole genre. I wouldnt call that a "safe play". Also Tyranny was something special as it wanted you to play the bad guys....not even optional...but as main theme. Thats not a "safe play" as well. Or maybe I dont understand what you mean with "safe play". Avowed on the other hand looks like the mother of "safe play"...yep.
 

Kacho

Gold Member
I didn't see ambitious scope in those. New Vegas they pulled off a narrative web that allowed to kill every AI in the game, or none, and still get a coherent ending. Alpha Protocol was a moonshot (and a miss), but I supported and applauded the moonshot. The isometric stuff just felt like safe plays. We've got an infinite number of indie studios who can provide us with safe plays. I hoped for more from Obsidian.
Obsidian was down bad in the mid-2010s. They ran a kickstarter for Pillars and it was successful for them. Then they followed that up with two flops (Tyranny, POE2) and their future was in doubt again. When Microsoft copped the studio I thought they would finally get the resources they needed to take up a notch and do more ambitious things.
 
Ok I see where you're coming from.

I still disagree the comments are silly. Myopic? Yes, based on your argument, which is a sound one.

That said, I do think MS needs content to continually fill GamePass, so as long as they continue to back GamePass, Obsidian will be safe as long as they don't end up putting out games that get critically panned.

I hope that you are right. I still think that it is silly to talk about longevity when you are not in charge, but I admit that I like a lot of what they are saying. In their position I would try to create a new IP to be more like the many Japanese studios that have found their audience with games like Disgaea, Yakusa, Tales of...
 

GymWolf

Member
Not everyone can completely reconstitute their studios in Eastern Europe, can they?

KCD2 had 250 employees to throw at the game. More artists, more programmers, more everything. Lower budget because of much lower salaries.
Then maybe american devs should lower their salaries.

I know that cost of life and other factors are a thing but those things AND overpayed devs can be both true you know.
 
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damidu

Member
xgGQOoe.jpeg
 

ungalo

Member
Obsidian was down bad in the mid-2010s. They ran a kickstarter for Pillars and it was successful for them. Then they followed that up with two flops (Tyranny, POE2) and their future was in doubt again. When Microsoft copped the studio I thought they would finally get the resources they needed to take up a notch and do more ambitious things.
All of this started when Microsoft cancelled their biggest contract ever for the AAA Stormlands lol. They almost destroyed the studio doing so, then a few years later they bought them.
 

sendit

Member
Obsidian was down bad in the mid-2010s. They ran a kickstarter for Pillars and it was successful for them. Then they followed that up with two flops (Tyranny, POE2) and their future was in doubt again. When Microsoft copped the studio I thought they would finally get the resources they needed to take up a notch and do more ambitious things.
They most likely have the resources they need under Microsofts umbrella. However, they are happy with being mid.
 

Kacho

Gold Member
Without the good enough games, we can never truly appreciate the masterpieces

it's a solid foundation that makes the extraordinary shine. Glad they chose a side now we know what to expect.
 

DragonNCM

Member



The Avowed studio expects each game to be a "mild success" and budgets accordingly, say company leaders who want it to reach its 100th birthday.

In a talk at this week's D.I.C.E. Summit, an industry conference whose theme this year is sustainability, Obsidian Entertainment VP of operations Marcus Morgan and VP of development Justin Britch said they want the Fallout: New Vegas, Pillars of Eternity, and most recently Avowed studio to make it to its 100th birthday. Obsidian is 22 years old now, so that's 78 to go, and the VPs think it can get there by staying lean, holding onto talent, setting realistic sales expectations, and not going all-in on delivering huge profits.

Obsidian's 100-year plan isn't—and I hope this isn't too disappointing—a decade-by-decade breakdown of future projects that ends somewhere around Fallout: Old Vegas (I'm assuming that pre-apocalyptic settings are popular in 2103). It's more of a thought exercise, but Morgan and Britch said that they genuinely want Obsidian to continue beyond their lifespans. "Are we serious? … Yes," said Morgan. And why not? Nintendo was founded in 1889.

One of the pillars of the plan is staying "lean and invested," meaning small enough that none of Obsidian's employees feel like a cog in a machine. Morgan and Britch said that in recent years they'd been considering opening multiple international offices, but in the end decided to partner with existing studios rather than risk weakening Obsidian's culture by getting too big.

Leanness can also refer to Obsidian's games: It doesn't aim for unprecedented scale or the most advanced graphics, and before it greenlights a game, Britch says the studio spends a lot of time determining how much to invest in the project with the assumption that it will be a "mild success," not a smash hit.

Obsidian has released three games in the 2020s so far: survival game Grounded (we reviewed it positively), narrative adventure game Pentiment (we reviewed it positively), and now Avowed (another good one). Some studios don't even announce a new game in that amount of time.

Among other things not mentioned here, Morgan and Britch's plan includes building institutional knowledge by aiming for "the lowest turnover rate in the industry" and continuing to release the kinds of games they're known for (player freedom, worldbuilding, all of that) at a consistent pace, "not rushed, but often."

Britch described his vision for Obsidian as a 1973 VW bus with a trunk full of tools and a manual that's being continuously annotated, and summed up the plan by saying that Obsidian is more or less going to keep doing what it's been doing, "not trying to grow aggressively, expand our team size, or make super profitable games." It's aiming for somewhat profitable games, then, made well and at a consistent pace.

Sweet dream there Obsidian.....and you wake up and see Game Pass logo on your game & you know it was just a dream....
 

Shrap

Member
This has to be some sort of damage control for Avowed failing to meet expectations.

That game was not a "mild" project though - it was a full AAA game. At least 5 years in development, 150+ staff and a budget estimated from 80-100 million. I highly doubt it will be a financial success after seeing the reviews which must have Obsidian sweating a bit.
 
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ProtoByte

Weeb Underling
You know ‘mild success’ also means profitable?
Why would anyone need convincing that a scandal free studio making profits isn’t worth keeping?
Opportunity cost. I don't think that the Outer Worlds was mega profitable as it was. Pentiment was (hopefully) cheap af, but almost literally no one played it and the vast majority of those who did would've played it through a Gamepass subscription they already had. Avowed is not going to make its money back in any serious accounting formula; and Outer Worlds 2 isn't getting anywhere near the numbers of the first game despite taking longer to make at post-coof spending levels.

It's not outside the realm of possibility that they would come up red on a balance sheet if Microsoft even bothered to make one. Seems to me this cruise control, loser mentality is only rubber stamped by Xbox because it comes from leadership.

More likely though, they probably are profitable, but it's going to be negligible. And the Xbox division as a whole cannot get away with barely being profitable when Microsoft can spend that money elsewhere. This was already telegraphed by Nadella in the latest earnings report.

‘Mild success’ is pretty much Remedy’s MO. Are they a ‘safe and cheap subscription studio’ too?
And Remedy's on the brink. The Max Payne remakes and Control 2 are going to have to do very well. If it wasn't for the fact that they're based in Finland as opposed to anywhere in the US, they'd already been purchased by either Sony or MS or shut down.
 
Han Solo Good Luck GIF by Star Wars


What kind of attitude is this…?

Just set the bar low? Everyone gets a participation award?

You’re running a business and your business is now owned by Microsoft. Whether you want to remain weak and small with your vision is entirely dependent upon whether Microsoft allows you to continue failing with mid-tier forgettable games like Avowed and Outer Worlds
 

Killjoy-NL

Member
Han Solo Good Luck GIF by Star Wars


What kind of attitude is this…?

Just set the bar low? Everyone gets a participation award?

You’re running a business and your business is now owned by Microsoft. Whether you want to remain weak and small with your vision is entirely dependent upon whether Microsoft allows you to continue failing with mid-tier forgettable games like Avowed and Outer Worlds
Wouldn't be surprised if MS/Xbox is gonna clean ship soon.
 
Wouldn't be surprised if MS/Xbox is gonna clean ship soon.

I think they have a 2-4 year grace period to see how games perform on PlayStation as multiplatform before taking the axe to all these massively underperforming studios

Hellblade 2, Indy, Avowed….these are all pretty big failures commercially with large-ish budgets

No way will all of them be in business for long unless they turn things around
 
I don't like it but I think they right.

The Outer Worlds, despite what people think, is a huge financial success: +5 million sales for a new IP barely AA budget-wise, developped in one year and half WITH the inclusion on Game Pass D1 and the fact that it was a one-year exclusive on EGS

Grounded, which fits into this strategy, is also a huge success and probably their most played game ever (and I think it may be the biggest Xbox success outside of Forza this generation? At least in terms of ROI). MS even planning an animated series on it.

After two decades to be constantly on the verge of bankruptcy, they have never been this successful as a company since they adopted this strategy. Avowed is another fish of course (more development time + more developers + more mixed reception) but we have already seen that Microsoft does not care about the number of Metacritic or awards (look at what they did to Tango), only the GP numbers interest them and we will see how it goes in the coming weeks.

I am sad that they are taking this path but for the moment it works:

is this going to mark Obsidian post-Microsoft acquisitio in the annals of video game history? No

Will it allow them to survive the years to come? Unless there is a big paradigm shift at MS or a big crisis, I think so

Afterwards like any strategy, it can work for a few years but not all the time (ex: Ubisoft and their Open-World games)
 
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SHA

Member
Pretty sensible approach given how AAA is going nowadays. Better safe than sorry.
Japan-devs have been walking this fine line for years now.
Their formula to success is how to entertain within 5 minutes. It's very different approach than western RPGs where you usually get lost for hours and have no fucking clue what your doing.
 
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