Adventures In Middle-Aged Gaming: An Interview With Michael Pachter

Growing old really sucks, don’t let anyone tell you any differently.  Furthermore, growing older while involved in the videogame industry is even worse.  There are reminders of your inadequacy right there on your TV screen every time you boot up a game or log on for some multiplayer.  From the insane levels of racism and homophobia in online games, to dealing with people less than half of your age, it’s pretty ugly.

Every once in a while I pause and reflect on the irritating prick I have become in my old age.  I question decisions I have made, things I have done, and mostly I cringe at some of things I have said to people.  Last week I paused and asked myself, is this all there is?  Am I alone in this commitment to curmudgeon-hood?  If I’m being perfectly honest I also ask, how is it that no one has kicked my ass for some of the nonsense that has come out of my mouth?  I have found in these moments of existential crisis it sometimes helps to seek out the counsel of a respected peer.  Historically my attempts to seek acceptance from Wardrox and Halfleft have ended with them laughing at me, and asking if I took my medication on time. So I decided to look elsewhere.

Recently I sought out Michael Pachter, Analyst for Wedbush Securities, and on-air contributor to “The Bonus Round” for Gametrailers.com for some sage advice and of course, to pick his brain a bit about the games industry, upcoming videogames, and families.  Michael graciously agreed to answer some questions and essentially, to indulge a pathetic loser like myself.  He is eminently quotable, extremely knowledgeable, and really is one the nicest guys I have dealt with in the industry to date.

Phil: First of all, Michael, thanks so much for doing this.  I guess my first question is; what drew you to entertainment and game market analysis?  And conversely what drives to be so involved in gaming communities?  Sweaty nerds with angry dispositions on message boards are, granted, pots of fun. But seriously why?

Michael: I was just lucky. Early in my career, I was a lawyer, and my job took me in the direction of doing mergers and acquisitions. I got an MBA to help me with the business aspect of the job, and after a couple of different opportunities, I was lucky enough to land a job at Wedbush in Research. I became the video game analyst after my predecessor quit to take a job at Midway Games. An essential part of my research is knowing what gamers are thinking, anticipating, and saying about games, so I religiously read the enthusiast sites. I find the sense of community endearing, and genuinely value the input I get from these sites. I have several acquaintances met on these boards, and many are quite thoughtful and intelligent.

Phil: I understand that Assassin’s Creed 2 is taking up some of your time right now.  I also know that Fallout 3 was a game of the year for you.  Is it all about the story for you?  Or do you just like shooting and stabbing things?  I know I do.

Michael: I really hate melee fighting games, and hated AC 1. I’m playing AC2 mostly because I wanted to give one of these a try, and I enjoyed Batman Arkham Asylum so much. Also, it got great ratings, and I am friends with the guy who wrote the story (Corey May). And yes, I like RPG’s and strategy games.

Phil: It’s an ongoing debate in my house, with a six year-old boy and a baby, over what games are appropriate and what aren’t.  How do you balance this in your household?  I know for instance that you stated on a Bonus Round for Gametrailers.com that your girls really enjoy Little Big Planet.  Do they ever get wind of the fact that there are “grown-up” games out there?

Michael: My kids occasionally watch me play games, so they’ve seen violence. I keep the sound low or off, so they don’t hear any bad words. Most games aren’t that violent, but Fallout 3 had heads explode when you shot them. I think everything is about balance, and so far, they haven’t shown interest in playing M-rated games.

Phil: One of the things I find fascinating about the games industry including the blogs and gamesites, is the way that it brings scientists, engineers, journalists, artists and business people together in a weird but exciting way.  Is there room in a profit driven economy, one that is still quite stressed, for creativity and art?  Also as a follow up, can you name an industry where the “hard core” consumers seem to be so anti-establishment and anti-profit, while also so committed to contributing to the creative process themselves?  An example would be the way that Steam has such a committed following of skilled fans who contribute, free of charge to Source mods?

Michael: I agree that the industry is fascinating, and think that the only real differentiator in a couple of years will be the art. As far as industries where the hard core is anti-profit, I suppose you see it in the extreme sports area, and probably anywhere that attracts young (and still idealistic) people. To some extent, you see it with garage bands in music as well. What I find amusing is that these same anti-establishment types stand in line at GameStop at midnight to buy a mass market game like Call of Duty: Modern Warfare 2.

Phil: Recently my wife, who is a family therapist in private practice, and I had a debate about Bayonetta and whether overtly sexualized female protagonists in games were empowering or just fuel for a teenage boy’s spank-bank.  Do these issues ever come up in your private or professional life for debate?  What are your thoughts?

Michael: I don’t discuss game content with my wife or daughters. I find sexualized female protagonists unnecessary, and am consistently surprised when they show up in games.

Phil: Games with extensive multiplayer elements are a challenge for me.  I don’t have the time to commit to becoming good at them and I can’t be bothered with all of the nonsense that seems to go along with those communities anymore.  What are your thoughts on the aged and competitive multiplayer games?  Are we doomed to be fodder for 12 year-olds with virtual sniper rifles?

Michael: I am not a multiplayer guy at all, primarily because my reflexes are too slow to be competitive, and the smack talk of 13 year-old boys is annoying. Yes, we’re doomed.

Phil: Regarding the consoles; you recently stated on a Bonus Round that (I’m paraphrasing) third party exclusives no longer make financial sense and that they will eventually go away.  Do you stand by that? If so, are we not losing some of the socio-cultural identity that exclusives and console wars are actually very good at fostering?  Brand loyalty isn’t necessarily a terrible thing for some.

Michael: I think that the installed base is sufficiently large that exclusives don’t make economic sense. Any game made for the PS3 or 360 can be ported to the other console for a couple of million dollars, and the prize is too great to ignore. The PS3 and 360 are very similar in power and output, and there’s no reason for third parties to pick one or the other and leave money on the table.

Phil: There was such a glut of music games in 2009, is there hope for this genre?  Surely DJ Hero has been the only new and interesting thing in a long time and despite good review scores, it still did not sell well at all.  Are Guitar Hero and Rock Band trending towards strong but consistently lower sales every year like the Madden franchise?

Michael: Music will continue to sell to new console purchasers, and to a much smaller extent, to the installed base. The genre dropped from over $1.6 billion in 2008 to under $900 million in 2009, and I expect it to drop to $600 million or so this year. That’s still as big as GTA, so big enough.

Phil: Regarding the games industry for 2010, what is most intriguing for you?

Michael: I’m most intrigued by the Wii audience, and whether they will start to buy more games this year. It’s clear to me that the 360 and PS3 have phenomenal content early in the year, but Nintendo’s lineup is back-end loaded.

Phil: Finally, and this is purely self-serving, how do you deal with the crushing realization that what was best about life is now behind us and that all we are really doing is just killing time until the inevitable wretched transfer to a sub-standard nursing home where we’ll be victimized daily by minimum-wage earning troglodytes?

Michael: I’m pretty sure I will die at home, so the nursing home is not an issue for me. I love having games in my life, and my goal is to be a gamer into my 90′s.

So there you have it Negative Gamers. Michael Pachter can been seen regularly on Gametrailers.com as part of “The Bonus Round”, and also has his own new show, “Pach-Attack”.