Xbox Live 360.com. Games and Games.

Microsoft has finally posted the long promised "Revised" Game Content Usage Rules. They are available here. Now that they are available, what has changed? The short answer is "Not much."

1. The "reverse engineering" rule was re-written to clarify "not normally permitted by the game." As such, things like the Halo 3 Forge or the Halo CE included editors seem to be acceptable.

2. One of the most notable changes is the specific reference to film festivals. You are allowed to enter film festivals, even those with prizes, with machinima. However, this seems like a fine line as there is also a specific note as to contests. Generally, the difference seems to be securing Microsoft's permission for the use.

3. The music/soundtrack/sound effect issue is more resolved, and for Halo fans, Halo 3 is specifically noted as having a usable soundtrack for machinima. This, as I noted in previous articles, falls about in the manner you would expect. The soundtracks are often licensed, and it's more noticeable in some games (i.e. PGR where the tracks are named) than in others. Microsoft seems committed to making notice of this on a game by game basis on the Xbox.com site/forums, which seems like a more reasonable course of action than an outright ban.

4. The phrase "You'll know it when you see it." appears a lot. On the plus side, this leaves a lot of room for interpretation. On the negative side, this leaves a lot of room for interpretation. I suppose we'll find out more as this is enforced, both as to the content and as to "Microsoft approval" on contests.

5. The backstory/lost chapters rule has changed significantly. You are now allowed to tell any story, but if your story contains elements from the game's story arc or surrounding content, then you're providing Microsoft a license to use that content. This is actually a fairly good solution to a real problem, even if it seems as though the machinimist is losing the rights to their "story." There have been many cases (mostly in the film and literary arenas) where someone writes a story, then without knowing, someone else writes a related story. Or, a writer sends a script in, the script is returned and the film company makes a similar movie. This often results in a lawsuit. What Microsoft is trying to avoid is the instance where they already have a story planned, and then one or more machinimists create something similar, Microsoft releases their content and the machinimist sues for infringement. If you want to work in Microsoft's universes, you have to accept that Microsoft may use a similar story, and you're giving up recourse if that happens. On the other hand, if you create something totally original, you've given up nothing.

6. You can let other people build on your work, but it's governed by the same rules as your work. Basically, it's a trickle down license.

7. They actually provide a contact email for people interested in getting a commercial license or for film fesitval sponsors who want approval. The address is gamevids*at*microsoft.com.

All in all, while the changes are not unexpected or dramatic, they are all positive and address many of the concerns of the machinima community.

Related Stories:
Past Microsoft Machinima Rule Coverage
Blizzard Machinima Rule

Given the recent news in the corporate realm for developers Bizarre Creations and Bungie, I thought it would be a good time to discuss some basics of corporate transactions. Accordingly, this will be the first of two articles on Mergers, Acquisitions, and Divestments. Given that today is Bungie's "independence day," I thought it would be appropriate to start with divestments, even though the industry seems to have far more mergers and acquisitions.

The basic concept is a spin off. An element of a company, for one reason or another, is pushed into an independent entity, or to another acquiring company. In the event of the latter, the points on mergers and acquisitions are equally relevant.

It would be almost impossible to outline every element of a divestment, and no two divestments are identical just based on the differences between companies. Rather than try to explain the process in depth, this article will give a short outline and some points to keep in mind if your group is being divested.

Generally, a divestment starts with a decision from some level of the corporation that the group needs to be spun off. Once the decision is ratified by the necessary people, then a new entity is set up to move the group into. The assets of the group are then sold to the new entity, and someone is appointed to be the head of the entity. The staff is then re-hired to the new entity, but typically all of this happens in a very short period of time with essentially no lag between the old and the new. Often, the original parent takes an interest in the new entity in exchange for the things being given to the new entity. The alternative is generally a promissory note of some sort, whereby the new entity will pay off the things they're getting from the old company.

Some important points to consider if your group is being divested:
1. Don't panic. Don't take it personally. Ultimately, this is just a business decision, and it's hard for a lot of people to separate "business" and "personal." If you treat it as a business decision and stay calm, it will make the transition a lot easier.
2. Get independent counsel. Odds are that a company large enough to have a divestment usually has an in house counsel or a law firm they do most of their deals with whom you've met or been used to dealing with. No matter how much you trust them, you want your own, independent counsel from an unrelated firm who has experience with transactions. When it comes right down to it, you want to have someone who is in your corner and has no possibility of having a divided interest. There is really no scenario under which this is a bad idea.
3. Make sure you get the important stuff in writing. Promises that are not in writing are generally not going to be honored. That is the unfortunate truth. However, if you took point 2 to heart, you will likely have an attorney you hired saying the same thing. If they promise you can take your really popular game series with you, from engine to trademark, make sure it's in a signed writing.
4. The whole thing is governed by the contract. This relates back to point 3. Typically, the writing in question is going to be the contract itself or an exhibit to the contract. There are really two important things to remember here:

1. If it's not in the contract, it's not going to happen.
2. A contract is an infinitely flexible document, and pretty much anything you want can be drafted into it, given a little work and, in some cases, creative thinking.

5. Make sure to resolve everything. One thing counsel should be able to offer you is experience, and that experience means most every little detail and strange contingency should be addressed in the contract. Keep in mind there is more to deal with than just the IP you created in the company. Things like what happens to employee health benefits, office furniture, parking spaces, etc. are all important. Moreover, if you're keeping the same office space, there will likely be a number of lease issues to deal with, or if the company owns the building, a lease will need to be drawn up. Even issues like interim working capital may be in the agreement, if separate funding is not occurring. Because there are so many details and contingencies, point 2 is really relevant from the time the decision is made since even the location and/or structure of the new entity can have different effects on things like taxation.

All in all, transactions like this occur daily in the corporate world, and so the basic concepts apply to all industries.

Two comments to the Bungie deal specifically:
1. If you're expecting the Bungie IPO to follow shortly, it seems unlikely in the immediate future given the choice of an LLC as an entity. Not to say it couldn't happen, but the choice of an LLC seems to suggest that isn't an immediate goal.
2. This might give more viability to the Halo DS theories.

As an almost complete departure from my normal content, I wanted to share a theory I had about Halo 3. This post contains some very mild spoilers, so if you're still not a good way through the campaign and trying to avoid EVERY spoiler, you may want to wait before reading it.


Spoiler Dead Space


Anyone who's played most or all of the campaign solo knows that you only play as Master Chief, and the Arbiter is around as an NPC some of the time (co-op is different, but I believe that that's placement of convenience rather than story cannon). In fact, the "dropping" of the Arbiter story line has been complained about in a number of reviews. This leads me to the theory:

There will be a Halo 3.5. Or Halo 3-2. Or Halo 3: Directors' Cut.

The storyline will basically be the Arbiter's cannon story during the activities of Halo 3, filling in all the gaps of absence in the Chief's escapade. And after all, why not? It would only be addition to the story, which would take a comparatively small development time. It might even be able to be sold as downloadable content off the marketplace. And it would make even more money off negligible changes to the Halo 3 engine. And then they can re-sell "Halo 3: Game of the Year Edition" with the Halo 3 and Halo 3.5 content. Yes, it's a very Bethesda-esque route (much like Oblivion has done), and it's one Bungie avoided in the past (given the theory that Halo 1.5 would be released with Xbox Live multiplayer). But it could happen, and that's just my theory.

Just a few, new key updates:

1. There will soon be a standard contact form for commercial licenses.
2. There has been some mild clarification on reverse engineering, but still nothing definite. In short, if you can extract assets without doing anything illegal or abnormal to the game, it may be fine. A more detailed description is available in the original post.

[Via Machinima for Dummies]

It would seem that more and more people in the blog-o-sphere are joining the Microsoft Content Usage Rules coverage, most recently the EFF and the blog for the book Machinima for Dummies. Both of these parties were privvy to a conference call sometime yesterday in which it was revealed that Microsoft is updating the Content Usage Rules (the "Machinima Rules"), and revised rules should be made public "soon." I personally hope that these rules address some, if not all, of the major issues I have pointed out in my coverage of the Machinima Rules. Once the new rules are posted, I will post a revised analysis.

For more information see my previous coverage of the "Machinima Rules":
Microsoft's New Content Usage Rules: A Small Step for Machinima
New Microsoft Machinima Rules Revisited
Microsoft Machinima Rule Podcast
More Details on the Microsoft Machinima Rule

A Microsoft attorney who goes by DonkeyXote has posted a discussion of the Microsoft Content Usage Rules in his blog. Before reading my continued commentary on the issue, you should probably read his five clarification points.

The clarification process, I can only imagine, will continue for quite some time as new issues continue to pop up from the Machinima community. There are a couple issues that specifically need some attention in the near future.

1. The Universe Expansion Rule
I suppose the real question is how remote is remote enough to be allowed? While I can understand the point DonkeyXote makes in his post, it doesn't speak to the machinimist trying to develop his story. It was a point Laird and I specifically discussed in the recent podcast. For example, I'm certain making use of any of the game's characters is not allowed. But what about a story going on in the same timeframe in another part of the universe? What about a parallel universe? Do you need to re-name all of the character models? Speaking to a more practical level, is the Red vs. Blue storyline remote enough? Sponsors vs. Freeloaders? Halo Unyielding? It would be much easier on the community if a clear framework were applied to this rule.

2. Reverse Engineering/Modifying the Engine Rule
The rule itself is vague enough that "reverse engineering" could involve modifications made using, for example, the tools in Halo CE, Halo 2 Vista, or what appears to be in the Halo 3 Forge. While I would anticipate that this isn't "modifying" the engine, I think the community would feel more comfortable if Microsoft said that these things were allowed.

3. The Contest Rule
Are all contests disallowed? And if so, what is a "contest?" Is entering a video in the YouTube Debates a contest? You do have the basic elements of a "contest," but the prize has no monetary value. A clarification as to the term contest (for example, that it has to have a prize worth $XXX) would likely be quite helpful.


All in all, it is nice to see one of the drafters of the rule address the issue in his blog, and hopefully he will continue to field questions like these as they arise.

Last evening, I was invited onto a podcast to discuss Law of the Game and the new Microsoft Machinima Rule. The podcast is ClassyDude's Emporium of Chat, found here.

The podcast's description is here, and a direct download of the episode is here. It's also a news item on Halo.Bungie.Org.

I'd also like to offer one clarification. Toward the end of the podcast, the topic of receiving a letter from Microsoft came up. I think I could have more clearly explained that the person you are being contacted by is probably a lawyer, and having your own representation is highly advisable in regard to contacting Microsoft about any letter they send you. However, if you cannot afford a lawyer, you can choose to contact them yourself, but be aware you are talking to Microsoft (and probably a lawyer) and that you should be apologetic and polite without incriminating yourself.

Anyway, the podcast is a bit lengthy, but if the Microsoft Machinima Rules are of interest to you, then I think you'll enjoy it.

As I've been monitoring the reaction to the new machinima rules Microsoft put out last week, I'm seeing far more negative doom and gloom reactions than I had anticipated. As such, I thought it might be an opportune time to address a few of the more common reactions I've seen to hopefully put the rules in perspective.

1. It was legal before, and now they're punishing us?

Surprisingly enough, what you were doing before was actually illegal. Specifically, it was copyright infringement. This isn't nearly as nebulous as re-skinning an engine, an issue I plan to go further into in the third part of my copyright discussion. You are using the game, exactly as it was, to create a new work. This new work is a derivative work, and creating a derivative work without a license is, in fact, copyright infringement. Microsoft was simply not enforcing their rights to that point in most cases. Simply because something happened does not mean it was legal.

2. This is the end of machinima.

This is by no means the end of machinima. In fact, it makes the whole operation far more clear cut for people who use those Microsoft games in their series. It just means that more creativity will have to go into the series to avoid the "expanding the universe" rule, and more audio production will be involved to make up for the sound effects. Moreover, these rules only apply to the Microsoft games on the list. If this is really an issue, use a different engine. Much like I noted in the SouthPaw Manifesto, if you don't like something, don't buy/use it. Of course, I think you will be hard pressed to find a game developer, at this point in time, who has said "Please use my game to make as many videos as you like, and feel free to profit on them as much as you can."


3. No wonder Rooster Teeth ended Red vs. Blue. They must have had advance notice!

I really can't speak to whether Burnie and crew had advance notice, but I am fairly certain Rooster Teeth has a commercial license. You might have noticed a little one sentence reference to "commercial license" in the guidelines. A license like this will give you the freedom to do whatever you like within the scope of that license. However, there are two caveats: 1. You have
to get a commercial license for your production group; and 2. Microsoft doesn't exactly hand them out like candy. In fact, the only license that has been granted which I know of is the Rooster Teeth license. This does not mean that other licenses won't be granted, but they are not a simple thing to get your hands on. So, if you think you can get one, you need to ask Microsoft, and then negotiate the terms accordingly. Otherwise, you need to follow the new rules.

4. It is impossible to produce anything under these rules, especially without accepting donations.

If this were 2003, I would probably agree with you that the donation requirement essentially negates the concept of online machinima as the distribution costs will likely bankrupt you. However, YouTube at least makes it possible to get your content out there. I think many machinimators need to ask themselves: Am I in this to produce something, or am I in this for the money? If you really want to get your material out there, it can certainly be done. Yes, you have to pony up the money for the hard materials of your hobby: PC upgrades, games, systems. However, the distribution can now be done for free. And the fan community? Free message boards are a dime a dozen.

If you can produce something truly great, the rest will fall into place. I would imagine if Microsoft found some starving machinimist who had a brilliant series running on YouTube or GameTrailers or some other free site, they would be far more likely to grant a commercial license based on the existing content than they would be to just another face in the crowd. Actors, musicians, writers, and other artists don't just become instantly wealthy. They have to work at their art. Just keep that in mind as you're working on your next project, without the donations.

5. This is a huge step backward for machinima.

Actually, this is just the opposite. A game company is finally saying "You can make machinima. You just have to follow some rules." Most developers have remained totally silent on the issue, and there may come a time when they choose to respond with a lawsuit rather than the conditional permission Microsoft chose.



So, the big M has spoken, and the world hasn't ended. Machinima still exists, it's just not as straightforward as it was when it wasn't legal. And once everyone has time to adjust, I'm sure we'll see some great new work. For those of you who had a series that violated the rules, I'm sorry you had to kill off your project. But look at this as an opportunity to make your own work even better, not as a big corporation squashing your dream. In the end, compromises like this are more than likely going to be the future of the medium. I'm personally glad they didn't decide to end machinima with their games altogether.

It is time once again to take a brief aside from the legal commentary to address an issue that I believe needs addressing, that issue being customizable controls. Specifically, I'm speaking to the ongoing issue of the use of thumbsticks in First Person Shooter titles. Before getting into my "manifesto," a little background.

I, like many other gamers, logged an untold number of hours in Goldeneye 007 on the Nintendo 64, and I, like many others, found it far easier to aim with the only analog stick on the N64 controller, which was used with your left hand. Perhaps it was from the years of using my left hand to control the D-Pad or perhaps it was just easier to aim with an analog stick. As time passed and the dual analog stick controller was released, these hours of play translated to what is known as the "southpaw" control style, where the left stick looks and the right stick moves the player. I've tried to play with both the "standard" and the "legacy" styles, but neither feel as natural. In fact, my reflexes default to southpaw, even though I'm right handed. It's just how I play.

It is unfortunate, then, when a AAA title is released with no southpaw support. Most notably, I'm looking at Ghost Recon: Advanced Warfighter and now, BioShock and Stranglehold. Given that this control style (if not complete customization) is offered by other titles, I see no reason for a developer to leave it out. I greatly appreciate companies like id, Epic, Bungie, Free Radical, Insomniac, Rare, and many others for including the southpaw option in most, if not all, of their games. For others who play as I do, ALT + CNTRL + GMR has lists for both 360 and PS3 control availability.

With that in mind, I give you the Southpaw Manifesto (which can also be adopted by any other alternative control users).



The SouthPaw Manifesto

Be it known that there are gamers who do not use the default control stick layout for First Person Shooter games, and as such, will not play those games which cannot be controlled as we desire. In this day and age, it is not asking much to include the most common alternative thumbstick layouts in a console first person shooter title. These layouts have existed for years, and have been implemented by the overwhelming majority of titles. As such, we, the users of different control styles, state the following:

We will not purchase a title which does not have our control style available. We will not purchase games with the mere promise of a patch to address the issue.

We will not "learn" another control style. No developer has taken a racing game, made the right stick steer, and told the public to "learn" that control style.

We welcome games that take a wholly different approach, such as the Metroid Prime series and Resident Evil 4. We have no issue with games taking new approaches to controlling altogether.

We acknowledge that a lot of hard work goes into making the games we love, and we appreciate the developers for their work. However, we don't feel that we're asking much to be able to experience the game in the way we are most comfortable.

We want to play and enjoy your games, so please include the normal alternative control styles.

Microsoft has set forth an interesting new content policy, found here, that seems to be giving the non-profit machinimist a break. In fact, I would go as far as to say this is really what needed to be done, but only addresses half of the issue.

The rules boil down to this: You can use the following games:
-Age of Empires (all versions)
-Flight Simulator (all versions)
-Forza Motorsport (all versions)
-Halo: Combat Evolved, Halo 2, and Halo 3 (when released)
-Kameo
-Perfect Dark Zero
-Project Gotham Racing (all versions)
-Rise of Nations (all versions)
-Shadowrun
-Viva Piñata

to make machinima, provided you put the following disclaimer on it:

[The title of your Item] was created under Microsoft’s “Game Content Usage Rules” using assets from GAMENAME, © Microsoft Corporation.

AND it follows these rules:


"1. You can’t reverse engineer our games to access the assets or otherwise do things that the games don’t normally permit in order to create your Items.
2. You can’t use Game Content to create pornographic or obscene Items, or anything that contains vulgar, racist, hateful, or otherwise objectionable content.
3. You can’t sell or otherwise earn anything from your Items. We will let you have advertising on the page with the Item on it, but that’s it. That means you can’t sell it, post it on a site that requires subscription or other fees, solicit donations of any kind (even by PayPal), use it to enter a contest or sweepstakes, or post it on a page you use to sell other items (even if those other items have nothing to do with Game Content or Microsoft).
4. You can’t use the soundtracks or audio effects from the original game. We often license those from third parties and don’t have the rights to pass them on to you.
5. You can’t infringe anyone’s IP rights in your Item, even if the IP rights being infringed don’t belong to Microsoft. Among other things that means you can’t use any of Microsoft’s trademarked logos or names except in the ways described in the pages linked from www.microsoft.com/trademarks.
6. You can’t add to the game universe or expand on the story told in the game with “lost chapters” or back story or anything like that.
7. You can’t grant anyone the right to build on your creations. We don’t mind if other people help you out, but you have to be clear with them that it’s not you giving permission, it’s us. (That’s how we make sure everyone plays by the same rules.)"

Consider these the 7 Deadly Sins of Microsoft Machinima. In short, they are:
1. Hacking
2. Obscenity
3. Profit
4. Audio
5. Other IP
6. Fanfiction
7. Piggybacking

Presuming you play by these rules, Microsoft will leave you alone. There are, of course, still a few particular issues with this scheme.

1. You essentially have to overwrite the entire audio track. While this is understandable to the extent of background music, many machinimists do use the sound effects. Moreover, dedicated players will know that the effect is different for, say, the ghost in Halo. I estimate that many people may hear from Microsoft on the sound effect issue, if the plan to enforce it.
2. Of course, you're not allowed to make any money, at all, whatsoever. Since many machinimists do have a "donate via paypal" link on their site, the link will need to be removed to comply with the new rules.
3. There's also no stated method for contact for obtaining a commercial license, although they do mention the commercial license. I assume this means that still, for the most part, the answer is "no" on that particular front, unless you happen to be Rooster Teeth Productions.

All in all, I think this is a good move for Microsoft and it would not surprise me to see other companies follow suit. This license generates a positive reaction from the fans and really doesn't hurt the owner of the IP license. Additionally, it retains control over the assets, so issues of the items becoming "public domain" due to use by the consumer should be mitigated. It, unfortunately, doesn't really offer anything for the aspiring professional machinimist.

[Thanks to Overman for the tip.]

If you want a cool free faceplate, make sure you stop by your local Circuit City and get your copy of Crackdown. You will get this faceplate free with your Crackdown purchase!

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