There’s always risk in innovation. When you’re creating a new product or service there’s always the chance that nobody will want what you’re creating. Similarly whatever you end up creating could very well end up grating against the current norms in such a way that your product is almost wholly rejected by those its aimed at. A great example of this, which I covered in the past, was Windows Vista. In order for Microsoft to move ahead into the future they had to break away from some of their old paradigms and this drew the ire of many of their loyal customers. The damage that was done there is still being felt today with slower adoption rates of their latest product but had it not been for this initial failure they may not have been enjoying the level of success that Windows 7 has today.
In fact many pioneering products and services were first faced with dismal (albeit, mostly profitable) reception initially. Steam was a great example of this, debuting back in a time where broadband penetration numbers in many countries wasn’t particularly great and sought to deliver all games digitally direct to the consumer. Couple this with the fact that they were cutting out the publishers and distributors in the process the guys at Valve faced an extremely long, uphill battle in order for their platform to gain dominance. Still three years later they started to get big titles releasing on their platform and the rest, as they say, is history.
Interestingly enough I began to notice similar things happening with the Playstation Portable. Whilst the next version of the handheld, the NGP, is not going to be a digital only download device Sony has recently said that all games will be available digitally with only the bigger titles coming to the physical world:
“One thing we learnt from PSP, is that we want to have simultaneous delivery in digital and physical for NGP. Just to clarify that, all games that appear physically will be made available digitally, said House. He added, “Not necessarily all games have to be made available physically. And having the option of a digital-only method affords more creative risk-taking, and that’s because you don’t-have that in-built risk of physical inventory.”
For those who follow Sony you’d be aware of the dismal failure that was the PSP Go. Debuting at an insanely high price (costing just a hair below a full PS3) whilst offering little in the way of improvements the PSP Go was never going to be a phenomenal success. However it was particularly hampered by the lack of compatibility with its current gen brethren, doing away with the UMD drive in favor of a fully digital distribution model. This annoyed PSP customers to no end because their current collection of games could not be migrated onto the new platform (other than through nefarious means). Looking at the NGP there’s no way to get UMD games onto it but since most people are already aware that their current UMD titles will not have a format transition to the new platform they’ve avoided doing the same amount of damage to their next generation handheld as they did to the PSP Go.
Failure teaches you where you went wrong and where you should be heading in order to avoid making such mistakes again. Many successful products have been built on the backs of dismal failures, just look at satellite phones and radio for example. Sometimes it requires a risk taker to pave the way forward for those who will profit from the endeavor and hopefully that risk taker gets some of the kudos down the line. Digital distribution is one of those such areas where path has already been beaten and even some of the pioneers are continuing to profit from it.