Where Is The Market Going?

[Alex H]

This is just a general topic, I’m not doing any research But I was curious where everyone else think the GSP/Dedicated server market is going.

 

My personal view is one of the following (more likely option1):

 

Option 1. It stays how it is and could quite possibly get even worse. We’ve seen some big names fall in both the UK and US due to the stupidly low prices. I can see things carrying on like this as there seems to be an endless stream of morons to buy from morons. I mean, who here can honestly say they could live off there business or make a substantial profit on a regular basis.

 

Option 2. The industry recovers somehow. I cant really see this happening any time soon, or ever sadly. Unless there was a way to stop the immature/idiots getting in or if prices were to be raised across the board somehow. But again I cant see any way out of the mess that is the GSP industry as yet. Personally I think a big issue is setup costs are too low, if people had to BUY licences instead of being able to start up for under £70 then the turnover of ‘one box wonders’ as ECF calls them would be greatly reduced.

 

Discuss

[Todd Holley]

I believe we create a "company" or some licensing something that all of the major gsp's and some of the smaller gsp's that are more than just summer business can register under. And become registered gsp's of some part. And you must have this license to host games... which would require management from the game makers themselves. It would take away some freedom, but would take away a lot of the little guys.

 

I know this is impossible and will not happen, do not flame me too bad.

 

Thanks

 

==

 

Also, this industry is getting worse on a daily basis. I know Rich, and some of you other bigger people. I shouldn't be talking since I have only been established for a little over a year now and I am much smaller than you guys. But it is my opinion and I am entitled to it.

[Daersun]

Opinions are like assholes, everyones got one and most of them stink

[ECF]

There have been many people who have tried to start some sort of GSP organization which would be membership based and would offer a seal of approval to display on your website.

 

However, all these plans were dreamt up by larger GSPs to get rid of the little guys. Personally I would love to see an unbiased organization that would govern the GSP world. Make sure that GSPs are registered companies etc... But it would be a huge undertaking, and most likely would end up corrupt in some way shape or form.

 

Smaller GSPs are not the root of all evil. I know of many smaller GSPs that are respectable, registered companies and do small business. It is the GSPs that know nothing about the industry, and worse nothing about running a business that gives the rest of the industry a bad name.

[Alex H]

Smaller GSPs are not the root of all evil. I know of many smaller GSPs that are respectable, registered companies and do small business. It is the GSPs that know nothing about the industry, and worse nothing about running a business that gives the rest of the industry a bad name.

 

 

True, I wasnt trying to come across as saying all smaller GSPs do wrong as im sure most of us on here are relitively small (myself included) but the regulars on here seem to know what there on about for the most part.

[Todd Holley]

What would it require to do something like that?

[studeggle]

As I can see, you'd need the following, not necessarily all of them, all the time or personally. But at various times each would be required.

 

A workable name that could be registered multinationally

 

Individuals with knowledge of business and corporation registration multinationally, so

you could verify a GSP was registered to conduct business.

 

Artist skills for generating seals of approval/authenticity.

 

Coding skills for generating a fully active site with the ability to load balance across servers.

 

Knowledge of the gaming industry and or contacts at the game companies so you could understand what a GSP needs to know and possibly even entice some of the new dedicated server software to be altered to need recognition by your company to run.

[Todd Holley]

Sounds like $$$$$ to me. . I think it is a good idea though.

[Defcon|Rich]

It's unlikely anything like you mentioned would ever happen as it would be considered a monopoly tactic and at the very least nobody has the right to deny anyone else the right to open or operate a business if they choose. This would be like trying to open a store in your hometown and the locals saying no.. There are laws against things like that.

 

My take on the industry as a whole is the big game makers are stepping up their efforts trying to seize more control of the game market as most have noticed (Ranked servers, stats, etc). My opinion is eventually only the companies with very deep pockets to pay the ever present fees will be able to operate. The sole reason for this of course is $$$. A few years ago this market was more or less a niche thing that couldn't sustain big business but it's become a multi-billion dollar market which they are all suddenly interested in and will do what it takes to gain a market share. I'm sure you noticed the way small business went dead when Walmart stormed into most of your areas and all the mom/pop stores went bankrupt because they couldn't compete.. This will happen here too as gaming becomes more high profile and bottom line starts looking good for big business.

[adamnp]

Regaurding what you said Rich, a sound business plan, investment plan, and financial goals are key. I maintain very strict spending budgets and make sure I meet my goals monthly, and if they fail, I am sure to have a backup. We make our payments based on a lot of issues, and the industry in a whole is definately ever changing. You need to be ontop of it. I've invested in many an opportunity before, from house boats to apartments from land and startups, simple ipos, and onto stock options, and frankly everything *obviously* is a risk. Making sure you know what you are getting into, and how to tackle it is *key*. I feel this is the reason for our success and continued growth in an industry where many are faltering. We simply follow the industry as close as possible in every aspect.

 

This industry is cut-throat baby!...Most definately!

[JasonF]

I agree Rich that some current market practices (ranked serves, limited licensing) only allow the big companies to get bigger and make the smaller companies grow at a slower rate or just fold up. But those large companies have their negative sides also. I got a TF2 client yesterday who just left Game Servers because of the lack of support and one of my clients recommended me to them. The one thing we can give that they can't is personal service. I try my best to give my clients the best service I can offer and that is what separates me from the larger GSPs.

 

My opinion on the original subject is that I don't see the GSP market ever being a very lucrative business for most GSPs. Only the larger or older companies that are established will prosper. I also see the spread of faster home download/upload speeds being a hindrance to the market. Some people are knowledgeable enough to host a TS server on their home computer but don't have the bandwidth to support it. As Fios and faster cable service becomes more readily available those people may choose to host their own servers. I know a multiple fiber backbone datacenter is no match for a single connection but some gamers may feel otherwise.

 

edited - also forgot to mention the rash of game makers that don't consider hosting multiple servers on a single dedicated server. They make it damn near impossible to host some games, i.e. MOH Airborne, R6 Las Vegas, etc.