2007 – a year of promises fulfilled

The major gaming stories of the year

In the short history of video games there have been plenty of landmark years. In 1972 Pong astounded the public, paving the way for a new form of entertainment. A decade later the young industry explosion seemed perilous, following the great video game crash of 1983. Then, in 1994, Sony took the market by storm by launching the PlayStation, and in 2007.

Well, certainly for many, it was a year to remember. It was the year when the gaming industry finally looked set to fulfil its promise, taking its chance to reach into the mainstream and grab the imagination of the public.

A year of numbers

Above all, it was a year of numbers. December saw news of a record-breaking $19bn merger between two of the biggest names in gaming: Blizzard and Activision. Blizzard's biggest game, the online fantasy World of Warcraft, passed the nine million subscribers mark, and the entire games industry was valued at in excess of $30bn.

However, it was Sony that started the number-crunching trend when it finally released its flagship PlayStation 3 console in March. The machine entered the record books by selling 165,000 units in the UK in two days. It breathed life back into the Japanese electronics giant, which had taken a beating the previous Christmas from its rivals.

The PlayStation might have made its mark in the battle for gamers' affections, but the tussle was far from over. After all, Microsoft had an ace up its sleeve: Halo 3.

The latest instalment in the massively popular franchise laid waste to all before it when it hit the shelves in September. On paper, the game seems unremarkable - a standard shooter tied together with a typical alien warfare storyline. But the game's killer combination - fantastic graphics and multiplayer online gaming - has turned Halo into more than just a great title: it is a genuine pop-culture phenomenon.

Sales making history

That status was underscored when it racked up $170m of sales on its first day in the US, making it the highest grossing first day in entertainment history - even outstripping Hollywood blockbusters like Spider-Man and Pirates of the Caribbean.

In Britain, gamers picked up nearly half a million copies in just a few days, handing over more than £20m to Microsoft in the process (this was a welcome fillip for the Seattle corporation, which has seen little profit from its massive investment in gaming).

"It's far too early to say what the financial return will be for our investment," Microsoft's Shane Kim told the BBC at the launch. "But if we can't make a profit in the year Halo 3 comes out, then when will we?"

That optimism was in sharp contrast to another major event of the year - and one that will stick in the minds of many: the banning of Manhunt 2, Rockstar Games' controversial slasher sequel.

When the game came before the British Board of Film Classification (BBFC) in June, it was refused a certificate and criticised for encouraging "casual sadism". As a result, it became the first game to be banned in Britain for a decade - and, with elements that the censors described as "sadistic, brutal and bleak", the headlines simply wrote themselves.

The controversy was not just in the media, however. Arguments were stirred up inside the industry as well. Some felt that the ban was an inevitable consequence of Rockstar's desire to court controversy as a marketing opportunity (Rob Fahey, columnist with website Gamesindustry.biz, summed it up by saying "Rockstar has crossed the line - and crossed it at a full-tilt run").

Others thought that the gratuitous violence was fair enough, given that it was in a title that was clearly aimed at adults, and plenty of supporters pointed out that some of the most gruesome Hollywood movies have been given certificates.

This plurality of views is likely to be reflected in a forthcoming government review of games and the internet, which became another talking point when it was announced in the autumn. The investigation is set to look at the effects of these new media on children, and will report back next spring. While at first the news was treated with scepticism (after all Tanya Byron, who is leading the investigation, is best known as a TV psychologist) it became clear that she was not merely going to rubberstamp the tabloid line that games are a malicious influence.

"Children seem to know quite a lot more than we think they do, and they know a lot about the technologies that they're using," she told the Observer in an interview. "For different kids, particularly kids with learning difficulties, these technologies have transformed their learning and enthused them to learn." (See page 22 for Tanya Byron's article on the government review.)

The return of Nintendo

While controversy was a persistent theme for the industry, the real story of 2007 was far more wholesome. Nintendo's return to peak form has to be the landmark trend of the past 12 months, not only shaking up the industry but also helping the whole gaming fraternity to break into new territory. Nintendo's decision to take a chance on its own quirky vision of the future - far removed from the high-powered, realistic graphics favoured by its competitors - seemed like it might backfire. But, in fact, it is paying off in spades.

The company's charge to the top of the charts was led by the Wii, released last Christmas and still in huge demand thanks to its innovative controller and unashamed emphasis on fun. The combination of classic franchises such as Mario and family-oriented titles like Wii Sports (which swept the board at this year's awards ceremonies) has proved irresistible with the public.

DS makes further inroads

And while the Wii emerged top dog against the PlayStation 3 and the Xbox 360, the diminutive DS handheld also made further inroads. This son-of-Gameboy is now in the hands of more than four million people around Britain, and thanks to games like Brain Training it has reached to new generations and crossed into the mainstream.

All these factors (the return of Nintendo, Sony's big sell and Microsoft's record-breaking games) not only sum up a massively successful year for the games industry, but could also give an indication of where the future lies.

While there may be a growing divide in the gaming world - between hardcore gamers who relish their powerful technology and those who spend their time playing accessible, casual titles - success in one field no longer precludes it in the other. While in previous years the two worlds were mutually exclusive, both forks are now bigger, better and more popular than ever before. The legacy of 2007 is yet to be determined - but if the past year proves anything, it is that we are no longer playing a zero-sum game.

Bobbie Johnson is technology correspondent for the Guardian

This article first appeared in the 17 December 2007 issue of the New Statesman, Christmas and New Year special 2007

Jeremy Corbyn. Photo: Getty
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Lexit: the EU is a neoliberal project, so let's do something different when we leave it

Brexit affords the British left a historic opportunity for a decisive break with EU market liberalism.

The Brexit vote to leave the European Union has many parents, but "Lexit" – the argument for exiting the EU from the left – remains an orphan. A third of Labour voters backed Leave, but they did so without any significant leadership from the Labour Party. Left-of-centre votes proved decisive in determining the outcome of a referendum that was otherwise framed, shaped, and presented almost exclusively by the right. A proper left discussion of the issues has been, if not entirely absent, then decidedly marginal – part of a more general malaise when it comes to developing left alternatives that has begun to be corrected only recently, under Jeremy Corbyn and John McDonnell.

Ceding Brexit to the right was very nearly the most serious strategic mistake by the British left since the ‘70s. Under successive leaders Labour became so incorporated into the ideology of Europeanism as to preclude any clear-eyed critical analysis of the actually existing EU as a regulatory and trade regime pursuing deep economic integration. The same political journey that carried Labour into its technocratic embrace of the EU also resulted in the abandonment of any form of distinctive economics separate from the orthodoxies of market liberalism.

It’s been astounding to witness so many left-wingers, in meltdown over Brexit, resort to parroting liberal economics. Thus we hear that factor mobility isn’t about labour arbitrage, that public services aren’t under pressure, that we must prioritise foreign direct investment and trade. It’s little wonder Labour became so detached from its base. Such claims do not match the lived experience of ordinary people in regions of the country devastated by deindustrialisation and disinvestment.

Nor should concerns about wage stagnation and bargaining power be met with finger-wagging accusations of racism, as if the manner in which capitalism pits workers against each other hasn’t long been understood. Instead, we should be offering real solutions – including a willingness to rethink capital mobility and trade. This places us in direct conflict with the constitutionalised neoliberalism of the EU.

Only the political savvy of the leadership has enabled Labour to recover from its disastrous positioning post-referendum. Incredibly, what seemed an unbeatable electoral bloc around Theresa May has been deftly prized apart in the course of an extraordinary General Election campaign. To consolidate the political project they have initiated, Corbyn and McDonnell must now follow through with a truly radical economic programme. The place to look for inspiration is precisely the range of instruments and policy options discouraged or outright forbidden by the EU.

A neoliberal project

The fact that right-wing arguments for Leave predominated during the referendum says far more about today’s left than it does about the European Union. There has been a great deal of myth-making concerning the latter –much of it funded, directly or indirectly, by the EU itself.

From its inception, the EU has been a top-down project driven by political and administrative elites, "a protected sphere", in the judgment of the late Peter Mair, "in which policy-making can evade the constraints imposed by representative democracy". To complain about the EU’s "democratic deficit" is to have misunderstood its purpose. The main thrust of European economic policy has been to extend and deepen the market through liberalisation, privatisation, and flexiblisation, subordinating employment and social protection to goals of low inflation, debt reduction, and increased competitiveness.

Prospects for Keynesian reflationary policies, or even for pan-European economic planning – never great – soon gave way to more Hayekian conceptions. Hayek’s original insight, in The Economic Conditions of Interstate Federalism, was that free movement of capital, goods, and labour – a "single market" – among a federation of nations would severely and necessarily restrict the economic policy space available to individual members. Pro-European socialists, whose aim had been to acquire new supranational options for the regulation of capital, found themselves surrendering the tools they already possessed at home. The national road to socialism, or even to social democracy, was closed.

The direction of travel has been singular and unrelenting. To take one example, workers’ rights – a supposed EU strength – are steadily being eroded, as can be seen in landmark judgments by the European Court of Justice (ECJ) in the Viking and Laval cases, among others. In both instances, workers attempting to strike in protest at plans to replace workers from one EU country with lower-wage workers from another, were told their right to strike could not infringe upon the "four freedoms" – free movement of capital, labour, goods, and services – established by the treaties.

More broadly, on trade, financial regulation, state aid, government purchasing, public service delivery, and more, any attempt to create a different kind of economy from inside the EU has largely been forestalled by competition policy or single market regulation.

A new political economy

Given that the UK will soon be escaping the EU, what opportunities might this afford? Three policy directions immediately stand out: public ownership, industrial strategy, and procurement. In each case, EU regulation previously stood in the way of promising left strategies. In each case, the political and economic returns from bold departures from neoliberal orthodoxy after Brexit could be substantial.

While not banned outright by EU law, public ownership is severely discouraged and disadvantaged by it. ECJ interpretation of Article 106 of the Treaty on the Functioning of the European Union (TFEU) has steadily eroded public ownership options. "The ECJ", argues law professor Danny Nicol, "appears to have constructed a one-way street in favour of private-sector provision: nationalised services are prima facie suspect and must be analysed for their necessity". Sure enough, the EU has been a significant driver of privatisation, functioning like a ratchet. It’s much easier for a member state to pursue the liberalisation of sectors than to secure their (re)nationalisation. Article 59 (TFEU) specifically allows the European Council and Parliament to liberalise services. Since the ‘80s, there have been single market programmes in energy, transport, postal services, telecommunications, education, and health.

Britain has long been an extreme outlier on privatisation, responsible for 40 per cent of the total assets privatised across the OECD between 1980 and 1996. Today, however, increasing inequality, poverty, environmental degradation and the general sense of an impoverished public sphere are leading to growing calls for renewed public ownership (albeit in new, more democratic forms). Soon to be free of EU constraints, it’s time to explore an expanded and fundamentally reimagined UK public sector.

Next, Britain’s industrial production has been virtually flat since the late 1990s, with a yawning trade deficit in industrial goods. Any serious industrial strategy to address the structural weaknesses of UK manufacturing will rely on "state aid" – the nurturing of a next generation of companies through grants, interest and tax relief, guarantees, government holdings, and the provision of goods and services on a preferential basis.

Article 107 TFEU allows for state aid only if it is compatible with the internal market and does not distort competition, laying out the specific circumstances in which it could be lawful. Whether or not state aid meets these criteria is at the sole discretion of the Commission – and courts in member states are obligated to enforce the commission’s decisions. The Commission has adopted an approach that considers, among other things, the existence of market failure, the effectiveness of other options, and the impact on the market and competition, thereby allowing state aid only in exceptional circumstances.

For many parts of the UK, the challenges of industrial decline remain starkly present – entire communities are thrown on the scrap heap, with all the associated capital and carbon costs and wasted lives. It’s high time the left returned to the possibilities inherent in a proactive industrial strategy. A true community-sustaining industrial strategy would consist of the deliberate direction of capital to sectors, localities, and regions, so as to balance out market trends and prevent communities from falling into decay, while also ensuring the investment in research and development necessary to maintain a highly productive economy. Policy, in this vision, would function to re-deploy infrastructure, production facilities, and workers left unemployed because of a shutdown or increased automation.

In some cases, this might mean assistance to workers or localities to buy up facilities and keep them running under worker or community ownership. In other cases it might involve re-training workers for new skills and re-fitting facilities. A regional approach might help launch new enterprises that would eventually be spun off as worker or local community-owned firms, supporting the development of strong and vibrant network economies, perhaps on the basis of a Green New Deal. All of this will be possible post-Brexit, under a Corbyn government.

Lastly, there is procurement. Under EU law, explicitly linking public procurement to local entities or social needs is difficult. The ECJ has ruled that, even if there is no specific legislation, procurement activity must "comply with the fundamental rules of the Treaty, in particular the principle of non-discrimination on grounds of nationality". This means that all procurement contracts must be open to all bidders across the EU, and public authorities must advertise contracts widely in other EU countries. In 2004, the European Parliament and Council issued two directives establishing the criteria governing such contracts: "lowest price only" and "most economically advantageous tender".

Unleashed from EU constraints, there are major opportunities for targeting large-scale public procurement to rebuild and transform communities, cities, and regions. The vision behind the celebrated Preston Model of community wealth building – inspired by the work of our own organisation, The Democracy Collaborative, in Cleveland, Ohio – leverages public procurement and the stabilising power of place-based anchor institutions (governments, hospitals, universities) to support rooted, participatory, democratic local economies built around multipliers. In this way, public funds can be made to do "double duty"; anchoring jobs and building community wealth, reversing long-term economic decline. This suggests the viability of a very different economic approach and potential for a winning political coalition, building support for a new socialist economics from the ground up.

With the prospect of a Corbyn government now tantalisingly close, it’s imperative that Labour reconciles its policy objectives in the Brexit negotiations with its plans for a radical economic transformation and redistribution of power and wealth. Only by pursuing strategies capable of re-establishing broad control over the national economy can Labour hope to manage the coming period of pain and dislocation following Brexit. Based on new institutions and approaches and the centrality of ownership and control, democracy, and participation, we should be busy assembling the tools and strategies that will allow departure from the EU to open up new political-economic horizons in Britain and bring about the profound transformation the country so desperately wants and needs.

Joe Guinan is executive director of the Next System Project at The Democracy Collaborative. Thomas M. Hanna is research director at The Democracy Collaborative.

This is an extract from a longer essay which appears in the inaugural edition of the IPPR Progressive Review.

 

 

This article first appeared in the 17 December 2007 issue of the New Statesman, Christmas and New Year special 2007