By Therese Poletti

A DOW JONES COLUMN

At last week's Game Developer Conference, there was still palpable animosity toward the cute, simple and easy games that are played on Facebook, smartphones and now tablets.

The tension in the industry was highlighted in a few panel discussions. Even in the keynote by Nintendo Co. (NTDOY, 7974.OK) President Satoru Iwata, he raised concerns about the impact cheap or free games will have on the pricing of future games.

A panel discussion entitled "A Debate: Are Social Games Legitimate?" morphed into whether or not they were evil, with one attendee in the audience asking whether social games exploited the mentally ill or people with addictive personalities.

Designers of hard-core game titles, who take players into other layered worlds like Activision Blizzard Inc.'s (ATVI) best-selling fantasy game "World of Warcraft," or its shooter game "Call of Duty: Black Ops," have a hard time taking games like Zynga's popular and simplistic FarmVille and CityVille seriously, where players run a farm or build their own city, but their moves depend on the help of friends or on buying virtual goods.

Like it or not, these and other even simpler games for smartphones are expanding the industry, providing a new engine for growth and a more democratic arena for developers to get a game into the hands of the masses.

"Unless they worked for a publisher, the homegrown casual games never found any distribution," said Colin Sebastian, an analyst with Lazard Capital Markets. "For a lot of those independent developers, Google Inc. (GOOG) and Apple Inc. (AAPL) are white knights for the industry." Sebastian noted that the traditional publishers have such high-quality thresholds that most independent developers were "locked out."

The stores where both Google and Apple sell applications, including games for their respective smartphone ecosystems, offer games from prices ranging from free to 99 cents to a few dollars. Apple approves all applications sold on its App Store, but Google does not, and it recently had to pull some apps that contained malware.

Still, the industry arrivistes didn't come off very well in one panel discussion. The "are social games evil?" debate included two social-game developers: Nabeel Hyatt, whose gaming company Conduit Labs had been acquired by Zynga last summer, and Curt Bereton of ZipZapPlay, the developer of a Facebook game Baking Life.

They told moving tales of a Zynga office manager who meets weekly with several of her Cafe World-playing friends to play together in real life, and of creating special cupcakes in the game Baking Life to engage more with their families.

"How many people talk about "World of Warcraft" with your mom?" asked Bereton.

Those syrupy comments had many in the audience siding with Ian Bogost, an associate professor at the Georgia Institute of Technology, who made an analogy of social games and Facebook with the widespread use of high-fructose corn syrup--an insidious sweetener used in more foods and beverages than Americans would like to acknowledge.

But another panel was called "No Freaking Respect! Social-Game Developers Rant Back." Brenda Brathwaite, chief operating officer and game designer at social-game developer Loot Drop had her own rant, in which she recounted various moments since 1981 when developers have been called evil or accused of ruining games, including when the title "Doom" was blamed for the Columbine school shootings.

Brathwaite clearly wants to improve casual games and make them more respectable. "We want casual, and we want hard core. We want to make a great game for the 43-year-old Facebook mom, because damn it, she deserves a great game too," she said.

"This is another one of those moments where it seems like there is a tremendous division, but there really isn't," Brathwaite said in an interview. "I believe that the game developers entering the space now from the social side are looking to change games for the better."

The economics show that social games are actually expanding the industry, even as overall console sales fell last year. "The casual platforms have expanded the market for games," said Lazard's Sebastian. "There are more games than ever before."

According to NPD Group, U.S. sales for 2010 of all videogame content, including used, downloaded, social and mobile games, were about $15.4 billion to $15.6 billion, which is flat to down 1% compared with 2009. Consoles and portables, on the other hand, fell 13% to $6.3 billion.

Sebastian and some game developers at the show said that all the different forms of games will coexist. The really popular games will be developed to run in different versions, from "bite size to snack size to full size," the analyst added, depending on whether the game is for a smartphone, Facebook or a videogame console like Microsoft Corp.'s (MSFT) Xbox 360 or Sony Corp.'s (SNE, 6758.TO) PlayStation 3.

It would seem that the hard-core developers are going to have to live with the social and casual developers. As social games improve, more developers may even switch to working on them, much as one panelist described his own decision to get into the social category.

Hard-core developers, who continue to look down on social and mobile games, had a bit of a comeuppance in a lecture by a well-regarded game designer. Brian Moriarty, now a professor at Worcester Polytechnic Institute spoke on the last day of the conference on how he had to agree with movie critic Roger Ebert, who created a big stir when he wrote that videogames cannot be art.

"Videogames are an industry," Moriarty said. "You are attending an industry conference."

He also remarked that games in general, including chess, are not art, in part because they are all about choices--and "choice is an expression of will."

"Sublime art," Moriarty continued, "is fragile and lives and dies in the details." He described his definition of art as the "still evocation of the inexpressible." Moriarty likened videogames more to pop and kitsch art.

Maybe the creators of FarmVille and "World of Warcraft" can at least find some common ground in that.

(Therese Poletti is a special writer for MarketWatch. She can be reached at 415-439-6400 or via email at AskNewswires@dowjones.com)

 
 
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