Game development
Closed beta :
->You test out the game with a selected number of people.
pro's :
-manageable
Because of the limited people involved, bug reporting is very easy to track and follow up.
-better security and secrecy
It is easier to keep your R&D away from competitors for a few extra weeks or months, NDA's usually make sure that security is kept.
-sequential
Work is done in a continuous but sequential loop. It allows continuing to work on something without being interrupted all the time.
-better quality perception when released to the public. No major bugs to be observed at first (if done right).
con's :
-slow
Because of the limited number of beta testers feedback is rather slow and partial.
-loopholes
Because the limited number of testers it is very possible that essential parts need to be redone very late in the beta phase, resulting in a huge loss of time. Worst scenario is that aspects have been overlooked and have not been addressed properly.
Open beta:
->You test out the game with an as broad spectrum of people as you can.
pro’s:
-fast feedback return
Due to its nature you get an incredible influx of suggestions, resulting in an "early warning system" when something is wrong with the game.
-faster developing in the long run
Because of the feedback, less time is wasted in redoing things that were in an advanced state of development.
-higher success rate
Because you have a direct feedback with your target audience the chances of getting it totally wrong are way slimmer.
con's :
-less manageable
The influx of info needs to sorted. This needs extra overhead to make sure one doesn't drown into that overflow of info.
-no security
Your secrets are available before you got a finalized product, making it easier for the competitors to adjust their concept on your errors.
-not so good impression
Releasing a beta to the public holds the danger that the game disappoints because the expectations were higher then what is delivered. As a result beta testing should be kept short and with a high pace of patches to give the public the feeling it is improving every day. If not, your product is going to fail miserably...
In essence, both systems are opposites, but can be fused together to minimize the negative effects of both production cycles. That is however a tricky balancing act ...
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