Freeware/shareware is nice, but I think anymore people that are looking for games are either looking for 1) really nice full production games that they are willing to pay for, or 2) short play time-wasting I'm-bored-at-work games that they can get for free on various flash sites. However, there is some market for games like this if you get into a good niche market, and you have a truely unique product. I haven't ever payed for web games personally (mainly because when I play games I want to escape for a few hours, not kill ten minutes at a time; not that games like that are inherently bad, just not my thing personally), I do have friends that have. They are all pretty major 'gamers' and payed because the games appealed to them enough that they would drop $20 to have extended play / no time limit. i guess my point is that if you can fill a niche and find an audeience for what ever specific type of game you are selling shareware can still work on a small scale, but its unlikely to reach the mainstream anymore in the way that say, Doom did back in the day.
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In the words of Jello: "Punk ain't no religious cult,punk means thinking for yourself. You ain't hardcore cause you spike your hair, when a jock still lives inside your head."
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