I wasn't sure of what kind of game to call Salty Bet back when it became very popular because there wasn't really anything like it out there, but now with the release of Twitch Plays Pokemon, I feel like these two games/game-thingies have similarities that qualify them for a genre of their own. I'm just not sure what to call it. It's definitely some form of social gaming, but that term is incredibly vague. I have some key points that could help define a new genre for these kinds of game.
Both Salty Bet and Twitch Plays Pokemon are modified versions of old games (or, in Salty Bet's case, an old customizable fighting game engine) that are then streamed and controlled by a huge mass of players over the Internet in a structured format. Players over the Internet have some kind of limited control over the game and share that power with many others who are playing the game simultaneously.
The potential for this new genre could be huge in the future. I have no doubt that developers and publishers are paying attention to TPP with more than just simple curiosity. Right now, I just hope that humanity can come up with a good name for this that isn't something terribly simplistic like "Twitch Games" or something painfully verbose. Or who knows? Does these things even deserve a name at all?
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