There are lots of game fans that would claim that this distinction is what makes games superior, but for a lot of people I think that's what turns them off. The passivity is a virtue in many places.
Our take is - let the viewer be as passive as they want. We're making a narrative-heavy experience, just like films and TV. But we're adding an interactive twist so the viewer can change how the story unfolds. And there's no reason we can't let the viewer just hit play and watch the story unfold as-is. We encourage them to jump in, of course, but that's it - otherwise, the story goes along it's glide path till the end of the episode. And when they're done, maybe they'd like to watch it again, but make a decision part way in to see how it effects the story.
A more mainstream example would be some on Nintendo's most recent work. They've done a great job embracing the casual audience, and really pushed it in the most recent Super Mario Bros for the Wii - it actually included the ability for the game to play itself when players get stuck:
http://wii.ign.com/articles/994/994640p1.html
Passive vs Active is tricky balancing act, and we're probably going to need to iterate on this a few times before we get it just right. But we definitely think the balance can be struck in a way that'll resound with a casual audience more apt at consuming TV then video games.
It's worth loading up an Amiga emulator (WinUAE or E-UAE) and getting hold of them - getting legal copies would be tricky, but copies abound...
I mentioned King of Chicago in particular because it was the most movie-like of the games - as I mentioned, if you just start it, it will run like a movie, complete with rolling movie like credits, but their other games have much of the same feel to them though you had to drive most of them forward by taking actions. E.g. Rocket Ranger, Defender of the Crown, It Came from the Desert, Wings are some of their best known titles, all heavy on narration and heavily inspired by movies.
I'll give you an example. At a board game company, I do those too, I proposed a card game where playing the cards moved the story along, and each section of the story formed pages in a comic book format. At the end of the game you could take pictures o the "pages" and put them for others to enjoy. Then mix the cards up gain, and since the play order would be different, a slightly different story resulted. I say slightly because if it was a murder mystery a replay wouldn't make it a story about horses.
I think that games are ready for the next evolution and that will continue the killing of movies and TV.
It reminds me of one of freddiew's Behind the Scenes video, in which him and Jon Favreau were talking how it's so nice when someone provides the toys/funds, but at the end of the day it's the actual artists who call the shot. Why not apply the same kind of contracts movie studios make with directors and actors (base amount, and maybe some % of revenue), in reverse, so the artistic driving force between the project negotiates the same amount of deals with the financier. It would be like a VC deal, where some people/companies would have preferential treatment at getting the money back and all that.
Why do we need to?
I hear this sentiment from gamers sometimes, where passive (story told to you) entertainment is almost used in a derogatory way, as if the fact that the audience is not actively participating makes it worse. It seems to me a kneejerk reaction to years of everyone treating gaming as an illegitimate artform.
Why do we need to change this behavior? What is wrong with consuming stories about other people?
There's some great work going on there - the big difficulty isn't the producing or financing, though. I'm part of the Seattle webseries community, and the big difficulty I keep seeing is - how do you get your series in front of people?
So in a sense - I think marketing is the killer if you're going to compete head-to-head with Hollywood.
A simple answer would be 'social proof'. Mashable provides a TopTen list of the most watched shows. That's a good start but the site is too distracting for Average Joe, in my opinion.
Also, web series are too short for true passive entertainment. I guess what your communities would need is a sort of Google Adsense, so you could plug-in advertising to be able to produce longer streams.
That would at least provide you with some money. When one show hits it big, that'll make news, and more people would start looking for shows like that. More eyeballs, more advertising, better chances of another hit, more news, and there you go.
You don't need to out-market Hollywood (though achieving parity may be part of the equation). You need to create a more efficient production cycle, from artist to costumer.
I'm thinking lean start-up. How can we reduce cycle time between artist conception of an entertainment pitch and consumers evaluating it?
Lean Start-up says reducing this cycle time should make the system fitter.
And I'm not dodging your assertion either, because games can also be passive. I've spent god knows how many hours watching Starcraft II games - well more than I'd like to admit. That's a game that was built with spectators in mind. I probably enjoy watching the game more than playing it, as wonderful as it is. Apparently so do other people, TwitchTV is evidence enough.
From my personal experience, I used to actually play all the video games I thought was fun. However, ever since college ended, and when I have to use my time more wisely, playing a demanding video game counter intuitive as a stress relief. However, watching my roommate play video game is both entertaining and lacks the necessary attention I would need to attribute if I were playing the game. Of course, after watching my roommate play Skyrim twice might get a bit old. But then again, who watches the same TV show for over 30 hrs straight? I don't care how good mad men is, if I were to do two or three consecutive marathon of it, I would get tired of it too.