The Conflict Between Art and Technology

When thinking about business in the technological space, everyone thinks that as technology improves so does profitability. This line of thinking, however, may not be advantageous to all tech companies, especially those that operate in spaces that combine their technology with art to create their product. The reason is simple: people purchase and enjoy movies, video games, and art that often incorporate technology, yet technology is not always the driving purchase factor for potential customers. When meeting with Adel Chaveleh, we discussed how there needs to be a balance between artistic vision and technological improvement to create high-quality products that consumers will enjoy.

Video Game Industry

Adel Chaveleh works in the video game industry and has become an expert in the field. He discussed with us the struggles companies face when trying to incorporate too much technology instead of getting the product into the hands of the customer. While investors of companies might want to hear about all the new improvements and additions of AI as part of the new games, the consumers may not want or care about the same things. According to Adel, companies should focus on creating the best version of their product and listen to fans and customers to create a unified vision. This will ensure you represent your fans and deliver a high-quality product. Once you listen, your company must find what it’s missing and solve problems using technology to fix people and team problems. The technology in your product must be adequate for consumer enjoyment while focusing on artistic and enjoyable experiences. For example, when releasing a new and exciting video game, potential customers are not likely to talk about the technology in the game. Instead, they will focus on the genre and play style of the game, and the experience they will have with it. In terms of technological focus, customers care much more that the game is playable without noticeable bugs, lag, and technical errors than they do having cutting-edge graphics and technology. According to Adel, companies need to have a common goal to thread the needle between different voices. While this may be difficult, the best way to go about threading the needle is to involve your fans and loyal customers as part of the decision-making process to help find the right solution. This will help set the stage and create a vision for all team members to communicate and simplify processes. 

Lessons From Hollywood 

The conflict between art and technology as a business exists in many other mediums besides video games. For example, the film industry is constantly rolling out new technology whether it be special effects, advancements in cameras, film technology, or simplifications to existing processes. In Hollywood, there exists a middle ground between art and commerce. People go to the cinema to enjoy films that speak to them, while studios attempt to make films that achieve a profit. In recent years, studios have doubled down on technology with larger budgets than ever before. With new blockbusters and oftentimes franchise films exceeding budgets of $200 Million, studios backing projects on the idea that consumers will appreciate the technology and CGI effects in films. The problem exists that not every blockbuster appeals to every individual in the entertainment market, and studios now have to take on the risk of losing hundreds of millions of dollars each time they release a new tentpole property. In a modern age where several blockbusters from the big studios are losing hundreds of millions of dollars each year, there has been a resurgence for the smaller studios in terms of both interest and revenue. 

Niche Audiences in Entertainment

In recent years smaller production studios like A24, Neon, and Focus Features have all placed their bets on one principle. Keeping budgets modest, and giving filmmakers more creative control than the big studios. While you may look at the box office each week and see these small films do small numbers compared to the heavy hitters, they have developed a winning profitability formula. Often, these independent films are targeted at a niche audience whether it be fans of indie drama, horror, or romance. With this niche audience in mind and lower budgets, these films can become very profitable. They also focus on the artistic merit of their films, recruiting and taking chances on auteur filmmakers that appeal to their audience such as Steven Soderbergh, David Lowery, Sofia Coppola, and Greta Gerwig. I remember in my high school marketing class learning about profitability, and how the 1999 film The Blair Witch Project was the most profitable movie of all time. While this was shocking to me at the time, I think there are several lessons to take from it that can be applied to any business. The Blair Witch Project had a great marketing campaign that reached its niche audience. While some might look back at the VHS low-budget film as gimmicky today, it was a new and exciting idea to horror fans at the time. The technology used to create the film was modest at best, but the story and intrigue in its marketing were a unique selling proposition to its audience. In a general business sense, creating a big-budget product can sometimes create high revenue as seen in our biggest industries, but it is not always the best strategy. Sometimes opting for smaller operating costs and focusing on margin can help you achieve high profitability through your niche market.

Summary

Finding the right balance when working in industries that balance art and technology is challenging. Everyone wants their product to be as profitable as possible, sometimes that means cutting back on technology and overall budget. When thinking about the current state of gaming, investing tons of money into realism may not even be your best bet. With the emergence of mobile games, and the success of animated games like Fortnite, perhaps consumers are looking for something different. Either way, the best thing to do is to reach out and understand your consumers' wants rather than what you think they want, and then elevate their experience with technology.  

A special thank you to Adel Chaveleh at Core Loop for sharing his valuable insights on the video game industry and technology as part of our interview series.

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