2010 marks the beginning of the end of what I consider to be the most crucial decade in the video game industry. Consoles rose into prominence across millions of households to become a permanent fixture in the living room. With affordable broadband Internet available to the masses, online gaming became an innovative outlet to increase the longevity of a title. Now that we’re in 2010, I’d like to review critical past events and trends to see where the indicators are heading for the closing year. While a decade is indeed hard to surmise with a mere top 10 list, I hope my selection spurs a discussion of what other gamers think should have (or not) been included in the list. Without further ado:

#10: Rise of Downloadable Content

More often than not, content needs to be cut out of games due to budget and time constraints. It’s rare for these cuts to ever see the light of day, unless some publishers are motivated enough to re-release the title. While PC gamers often enjoy expansion packs with the click of a button, their console brethren are not so lucky. That all changed when Xbox LIVE and PlayStation Network started to offer downloadable content (DLC).

Of course, DLC is now becoming a profitable enterprise itself. For example, the Call of Duty franchise profited greatly with map expansion packs. For the most part, DLC is welcome to the gaming community – it adds to the gaming experience. What’s disconcerting is when companies deliberately cut out certain parts of the game to release as DLC on a later date, or even announcing DLC right at the heels of a title’s release, prompting gamers to wonder about the status of a true, complete game. DLC is becoming ubiquitous in this industry, but there is growing fear that companies are charging consumers more for content that should have been free and included with the game anyway (I’m looking at you Lumines Live!). However, there are companies that do recognize rewarding their loyal fan base with free DLC. Naughty Dog released some free DLC for Uncharted 2 and Harmonix unveiled a few free tracks for Rock Band 2. While consumers fear that developers won’t look kindly to tight wallets, it’s up to companies to decide whether content should be priced or free.

#9: End of Console Exclusive Arrangements

Squaresoft splashed major headlines in the gaming community when they broke off ties with Nintendo to partner up with Sony back when the cartridge vs. disc war was brewing. At the time, console exclusivity was the norm. You’d never see Mario and Luigi on the Sega Genesis or Sonic the Hedgehog on the Nintendo 64. It simply wasn’t done.

Nowadays, most games developed by third-party publishers are multiplatform – the Nintendo Wii is the exception due to its limited capacity. Tecmo’s Ninja Gaiden, Namco Bandai’s Tales of Vesperia and 2K’s BioShock were all re-released on the PlayStation 3 at a later date. On the other hand, Capcom’s Devil May Cry 4, Square Enix’s Final Fantasy XIII and Rockstar Games’ Grand Theft Auto IV all went multiplatform. While these moves may grate on the nerves of mono-console enthusiasts, it’s a welcome change for the general gaming community. Timed exclusives will still exist, with whichever console offering up the highest bid, but third-party companies are realizing that going multiplatform makes business sense. Who can blame them for breaking off exclusivity for the sake of better profit margins?

#8: Unreal Engine and Its Successors

Game engines are tools that provide a reusable platform to aid in the creation of games while significantly reducing costs since development teams don’t have to start from scratch. Prior to game engines, titles were designed from the ground up to optimize a system’s hardware, but couldn’t be reused between games. That all changed in the 1990s with developers licensing portions of software but adding in custom game assets. There are numerous game engines out on the market, but few have left as large an impact on the gaming community than Epic Games’ Unreal Engine. Some folks might decry that developers are cutting corners by tweaking an engine to suit their purposes, but it’s quite an accomplishment when most of the industry has accepted the Unreal Engine as one of the standards for running a title.

While Unreal Engine 1 and 2 were mostly featured in first-person shooters, Unreal Engine 3 demonstrated its versatility. Not too many people will recognize that Epic Games’ latest incarnation was employed in 2K’s BioShock, Gearbox Software’s Borderlands or Rocksteady Studios’ Batman: Arkham Asylum (mere coincidence that all these titles start with a “B”). While Unreal Engine 2 has more than 70 titles under its belt, Unreal Engine 3 can easily boast that it not only has more gaming licenses, but is utilized in other capacities including construction design, driving simulation and film storyboards. With Unreal Engine 3’s versatility, it’ll be interesting to see how developing companies will utilize and push the engine for upcoming titles.

#7: Digital Distribution

Piracy has been rampant within the PC community, nearly crippling it. Recent sales figures reveal that the console market is the dominant segment, so it isn’t surprising that most publishers cater to them, leaving PC gamers in the dust. Admittedly, PC gaming will never really die with Blizzard Entertainment carrying the torch.

Steam, developed by Valve Corporation, changed the way games are being distributed in the market to revamp and revitalize PC gaming. With the traditional consumer packaged goods model no longer considered cost effective, more companies are looking to the future of digital distribution. Major publishers are seeing the benefits of going digital with Steam paving the way. Besides cost, another major gripe about getting games is that there isn’t easy access to titles. Walk into a local GameStop, Best Buy or other major retailer and compare what they have in stock for consoles to the barren shelves of PC titles. While piracy is still a major problem, Steam has helped to curb it somewhat because their services are so accessible and streamlined. Steam offers secure downloads, generous sales discounts (to the point where I question how they make profit) and integrated services to create a burgeoning PC community.

#6: PlayStation 2 Fulfills 10-Year Cycle

Credit goes to Sony for creating a console that truly stands the test of time. The PlayStation 2 (PS2), a sixth-generation console, had a rather rocky start with poor design leading to performance failures. But with improved versions released year after year, getting slimmer and more aesthetically pleasing, it had a way of worming into households worldwide to become the best-selling console to date. Throw in an expansive library of notable gems and the console becomes a worthy addition.

While the PS2 wasn’t the first console to utilize discs or online gaming, Sony pioneered the use of DVDs. Utilizing this format provided more content to be loaded onto discs, pushing the PS2’s capabilities to even provide competition with early releases of seventh-generation consoles. Moreover, the PS2 laid the groundwork to make a console more than just a hub for gaming, but rather, an interactive entertainment center. And if that wasn’t enough, it has the distinction of being the first console involved in a nuclear weapons conspiracy; speculations that the PS2 could be adapted as a guidance system for long-range missiles cropped up in December 2000. Take note that the PS2 isn’t done just yet, having licensed games for 2010; it’ll take quite some time to discontinue the bugger.

#5: Video Games Beat Hollywood Soundly in 2007

In 1999, SEGA confirmed that the Shenmue project cost approximately 70 million US dollars over the course of its 7-year production. Back then, that kind of figure was absolutely unheard of! In fact, that figure still boggles the mind – think of how much Shenmue’s real value is if you factor in modern day inflation! Nowadays, it’s commonly accepted that Triple-A games have production budgets that rival Hollywood films, with matching marketing campaigns. Infinity Ward’s Call of Duty: Modern Warfare 2 cost between 40 and 50 million US dollars to produce; now add that to a marketing launch budget of 200 million US dollars! With budgets like that, it was only a matter of time before video games would have the gross sales to match that kind of spending power.*

2007 was the year for video games. Blockbuster heavyweights like Bungie’s Halo 3, Infinity Ward’s Call of Duty 4: Modern Warfare and Nintendo’s Super Mario Galaxy were released in tandem. They went public alongside risky, new IPs like Ubisoft’s Assassin’s Creed, Naughty Dog’s Uncharted: Drake’s Fortune, 2K’s BioShock and BioWare’s Mass Effect. Those are just games that I’m listing right off the top of my head – I know there are tons of noteworthy gems that I didn’t add. This was the debutante party for video games, demonstrating that it had the consumer clout to trump other entertainment industries by the billions. Sure, Hollywood could boast about 9.68 billion US dollars in domestic revenue, but by the same token, the video game industry had already raked in 17.9 billion US green ones.** Based on the quality of titles released and the significant sales figures, 2007 marks the year this industry could no longer be regarded as an up and comer – it heralded video games as a legitimate powerhouse.

*Figures taken from http://most-expensive.net/video-game

**Figures taken from http://blogs.pcworld.com/gameon/archives/006324.html and http://cbs2.com/entertainment/Movie.Revenue.Hollywood.2.1360123.html

#4: Penny Arcade and its Influence

Penny Arcade started out as a webcomic series on video games and gaming culture, fostered by the dedication of its creators: Jerry Holkins and Mike Krahulik. The real kicker is what Holkins and Krahulik enacted following their success. They gave the gaming masses two fantastic movements worth supporting: Penny Arcade Expo (PAX) and Child’s Play. If you’re deeply entrenched in the video game community, surely you will have heard of at least one of these two gems. Why are Penny Arcade’s contributions so significant? Quite simply, it revealed the communal and humane qualities of the gaming community.

What PAX set out to do was unify all gamers (tabletop, console and computer) in celebration of this growing culture. Created in 2004, PAX has grown in leaps and bounds; PAX 2009 took over the Washington State Convention and Trade Center to accommodate attendees – a grand total of 60,750 people! And this year marks the first time PAX will be held outside Washington with the advent of PAX East 2010. Conventions aren’t your thing? Penny Arcade has something that may fit your charity needs of helping out fellow gamers and generally raking in good karma with Child’s Play. Founded in 2003, Child’s Play sets out to improve the lives of sick children through donations of toys and games to hospitals worldwide. It’s a shame this charity doesn’t get nearly as much coverage in the gaming community considering what it has done to refute mainstream media’s tendencies to vilify the industry. Since its inception, Child’s Play has raised more than 6.7 million US dollars! Who wouldn’t want to get behind that? Scrooges, disgruntled folk and embittered souls need not apply. Considering all the good Penny Arcade has done for the gaming community, it deserves a nod of respect (and appreciation).

#3: Nintendo’s Rebirth

By 2002, Nintendo was “The Sick Man of Video Games,” even facing heavy antitrust fines by the European Commission. However, instead of going down the lane of has-beens, the company completely revamped itself to eventually dominate the industry. While the casual market has always been there, video games were not quite as accessible (or interesting) to the broader audience. Nintendo changed all that when they introduced both DS and Wii to the masses. The company outdid Microsoft and Sony, with the Wii selling more units than the Xbox 360 and the PlayStation 3 (combined) within the first half of 2007!

While Nintendo’s products are certainly not for everyone, even facing derision from some segments of the gaming community, no one can deny what a powerful effect the company has had in the past decade. It not only managed to successfully grab the elusive market of casual gamers, both the Wii and the DS became some of the biggest products to ever hit the public. Nintendo truly understood how to pull in groups that are outside what most consider the core gaming market, from female audiences to more senior segments. Essentially, Nintendo opened the public’s eyes to make video games more socially acceptable with entire families playing together as opposed to sitting on the couch to watch a movie. In addition, Nintendo expanded its products to become more lifestyle oriented, introducing Wii Fit. Instead of facing strict competition from Sony and Microsoft, Nintendo carved its own niche to sit comfortably on its throne as overlord of the casual gaming populace.

#2: World of Warcraft … ‘Nuff Said

Do I really need to explain why Blizzard’s World of Warcraft deserves a place on this list? Almost everyone must have heard of this game by now! And if you haven’t, I’ll presume you’re living under a rock … in Antarctica. More than half of the world’s MMO subscribers play World of Warcraft, boasting about 11.5 million subscriptions a month!* Blizzard commands a massively loyal following, able to host their standalone annual convention, BlizzCon, to a sell out crowd.

Blizzard created quite a stir with Starcraft, but it never transcended the video game community quite like World of Warcraft did. Cue commercials featuring Verne Troyer, William Shatner, Mr. T and Ozzy Ozbourne. How about the inspired South Park episode, “Make Love, Not Warcraft,” receiving an Emmy nod? Felicia Day’s The Guild, a popular web series inspired by her addiction to World of Warcraft, has quite a cult following. For many, it’s more than just a game, but an engaging community that spans across the globe. The mere fact World of Warcraft trumps the GDPs of most developing countries in the world is a testament to its power. The scary thing is it’s only going to get bigger.

*Figures taken from http://www.wired.com/gamelife/2008/12/world-of-warc-1

#1: Xbox LIVE

PC gamers, PlayStation 3 enthusiasts, Wii fans … before you decry my choice, I will proceed to explain. No, the Xbox 360 doesn’t get a spot because of its absolutely atrocious history of faulty hardware. Rather, I’m bestowing the top spot to Xbox LIVE, the online component, because it really has changed the way gamers interact. Microsoft may have released awfully manufactured consoles, but it got the community aspect down pat. Everything about the online service is clearly streamlined, tapping into online resources that provide an experience that’s more than just about gaming.

At first, I was skeptical about Microsoft’s mission to make Xbox LIVE an integral part of a gamer lifestyle. Midway through the decade, I was a convert. Gamertag profiles are really an integral part of the experience, from customizable avatars to gamerscores for bragging rights. Earning game achievements was a real breakthrough, inspiring competitors to provide similar features. While the online gaming experience is not nearly as awe-inspiring compared to PC counterparts, Xbox LIVE has over 17 million subscribers, creating a strong community. With the addition of Netflix, social media applications (such as Facebook and Twitter) and Zune programming, Xbox LIVE has robust interactive elements. The allure of Microsoft’s online service is how it incorporates a diverse range of features to become more than just a gaming console, but an entertainment and lifestyle hub.