Frank Johnson: Future might put first-party in last place

If there's one word that can arouse the ire of fanboys and executives alike, it's "exclusivity."

For gamers, it can be a point of pride that a certain series remains exclusive to their platform of choice. I myself would pen a very stern letter to Square-Enix if I ever see the words "Final Fantasy" and "Xbox" together in the same sentence.

For the execs, it is a way to push more hardware by offering something that a consumer can't find anywhere else.

And while these two parties are undoubtedly important when it comes to the business of gaming, the real future of first-party exclusives sits in the hands of the people who make the games.

Before going further, there are two terms important to remember.

A game is considered first-party if that particular game franchise has signed an agreement with a company to ensure that the game is only developed for a specific platform. Development companies also may be owned entirely by the hardware company (as was formerly the case with "Halo").

A third-party game means that the developer or franchise can make games on any platform it wishes.

It's similar to a business having an in-house ad agency that produces all of its marketing or freelancing its advertising to an independent company.

Examples of first-party games include reverend icons like "Mario" and "Zelda" for Nintendo, "Metal Gear" and "Final Fantasy" for Sony, and "Halo" and "Gears of War" for Microsoft.

Recently, the developer who has single-handedly saved the Xbox from being nothing more than a console with an awkwardly large controller, Bungie, announced that it is splitting from Microsoft -- well, sort of.

A division of the company will remain to do nothing but produce round after round of "Halo"-themed games. Yes, despite the third installment's tagline, the Master Chief's fight is far from finished.

Other big-budget games have experienced a similar change of heart. "Grand Theft Auto III," a game key in helping the PlayStation 2 achieve its market dominance, long ago decided the smart money could be had by diversifying. "Grand Theft Auto IV" (sadly delayed until '08) will land on the PS3 and Xbox.

This development dims the future of first-party exclusives. Though "Halo" games will most likely remain only on the Xbox, it is clear from Bungie's move that the real money, at least for a developer, is in going freelance.

This also signals a more subtle shift. Sony and Microsoft both believe that they have the power to set the gaming agenda, so to speak. However, the shift away from first-party development shows that the initiative is in the hands of the programmers.

Consider the examples of the music and movie industries.

Movie studies and record labels are similar to the video game publishing companies, while actors and musicians are comparable to the individual team of programmers, artists and writers behind a game.

However, in the video game industry, there exists a third hierarchy, that of the hardware owners, such as Microsoft, Sony and Nintendo.

Traditionally, they have had the ability to sway a developer a great deal. The fierce competition between the Big Three this time around has made developers cautious as it is still unclear who the real winner will be.

Nintendo maintains a slim lead over the Xbox at the moment, and though the PS3 has been performing poorly, no one is ready to count Sony out of the race just yet.

Also, the power and possibilities of next-gen machines come at an expensive price, and developers are increasingly making efforts to spread their product across as many platforms as possible in order to maximize profits.

So what does this all mean for gamers?

As the hardware holders lose their ability to influence game developers, the chance increases for more independent voices to arise in the gaming community.

Exclusivity also is used as a way to secure the big marketing bang that someone like Sony or Microsoft can provide.

With a little luck, as the developers begin to spread their efforts among video game consoles, handhelds, cell phones and downloadable content, so to will the marketing resources, helping to foster a more diverse landscape of gaming options.

Lake Sun Leader

Sorry ladies, Frank Johnson is already under a first-party exclusive agreement with someone else.