An (unexpected) journey through the history of Video game business models not featuring Gandalf
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An (unexpected) journey through the history of Video game business models not featuring Gandalf

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Lecture from the Quo Vadis conference in Berlin April 2013 (DGT13). Trying to summarize the history of different business models in the past to see wether history will repeat itself.

Lecture from the Quo Vadis conference in Berlin April 2013 (DGT13). Trying to summarize the history of different business models in the past to see wether history will repeat itself.

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An (unexpected) journey through the history of Video game business models not featuring Gandalf Presentation Transcript

  • 1. Free2playPaymentKickstarterRetailDragonDigitaldistributionAn (unexpected) journey through the history of Video game businessmodels…
  • 2. • Who am I?• History of B2C business models• Status Quo / Challenges• Outlook
  • 3. 1997 JanOkt1998Jul2000Apr2002Jan2004Okt2005Jul2007Apr2009Jan2011 2012/131/8/20041/1/1997Retail business:PC / consoleOnline/ MobileGames
  • 4. Spacewars!MainframesHome computerArcadesConsolesMobile(Smart-)PhonesOnlineStreamingMobile consolesTabletsPinball (2000)A short history
  • 5. 1961
  • 6. 1979
  • 7. 1987
  • 8. [Buchtipp] „Masters of Doom“ http://amzn.to/10qtGFW1993
  • 9. 1993/95
  • 10. 1995 – 2004
  • 11. 1996"What was so shocking to me was thatWindows was the second highest usageapplication in the U.S. The number oneapplication was Doom," N. explained. Tohim, this was a revelation. "It was a 12-person company in the suburbs of Texasthat didnt even distribute throughretail, it distributed through bulletinboards and other pre-Internetmechanisms ... Microsoft was hiring500-people sales teams and this entirecompany was 12 people, yet it [idSoftware] had created the most widelydistributed software in the world."
  • 12. 2004
  • 13. 2013
  • 14. http://de.wikipedia.org/wiki/VideospielSpacewars!MainframesHome computerArcadesConsolesMobile(Smart-)PhonesOnlineStreamingMobile consolesTabletsPinball (2000)No commercial useShareware,RetailNo commercial use
  • 15. 19321947
  • 16. 1972
  • 17. 1975
  • 18. 1976
  • 19. 1976
  • 20. 2002
  • 21. 2004
  • 22. 2006
  • 23. 2009
  • 24. 2012
  • 25. Spacewars!MainframesHome computerArcadesConsolesMobile(Smart-)PhonesOnlineStreamingMobile consolesTabletsPinball (2000)Pay per playRetailPay per playNo commercial useShareware,RetailDig. Distrubtion,Free-to-playNo commercial use
  • 26. 1997 2000+1997
  • 27. 1997 2000+2000+
  • 28. 2003
  • 29. 2007
  • 30. 2009
  • 31. 2011Source: Flurry
  • 32. Spacewars!MainframesHome computerArcadesConsolesMobile(Smart-)PhonesOnlineStreamingMobile consolesTabletsPinball (2000)Pay per playRetailPay per playNo commercial useShareware,RetailDig. distribution(Retail)Dig. distributionFree-to-playDig. distributionFree-to-playRetail
  • 33. <1996 [Buchempfehlung] Dungeons and Desktopshttp://amzn.to/17gA7Qb6 $/h !!!!!1!!!!11!!111!!!elf
  • 34. 1997
  • 35. 2004
  • 36. 2004
  • 37. 2005 ( - 2012)
  • 38. 2009
  • 39. 2008 / 2009
  • 40. 2010
  • 41. Spacewars!MainframesHome computerArcadesConsolesMobile(Smart-)PhonesOnlineStreamingMobile consolesTabletsPinball (2000)Pay per playRetailPay per playNo commercial useShareware,RetailDig. distribution(Retail)Dig. distributionFree-to-playDig. distributionFree-to-playSubscriptionDig. DistributionDig. DistributionSubscriptionFree-to-playNo commercial use
  • 42. • Who am I?• History of B2C business models• Status Quo / Challenges• Outlook
  • 43. Sell-inSell-throughPublishingPitch B2BB2CPR/ MarketingThe classical value chain
  • 44. Today: Chaos!
  • 45. • Retail (Assassins Creed X, CoD X, etc.)• Digital Distribution (Steam)• In-Game Advertising (Fifa)• Advertgames (Americas Army)• “Try Before you Buy” / Trialware /Shareware,• Episodic Entertainment (Telltale),• Skill-Based Progressive Jackpots(Poker),• Subscription Model (WoW)• Micro-Transactions (Travian, etc.),• Sponsored Games / Donationware(serious games, games for good,charity games),• Pay per play / Pay as you go / Pay forTime,• Player to Player trading of Virtual Items(Steam Trading),• Sell Access to your Players (like leadgeneration, special offers etc.),• Freeware (get lots of users),• Loss Leader (focus on your real goal),• Peripheral Enticement (Skylanders),• Player to Player Wagering (GameDuell),• User Generated Content (letting usersmake endless new content),• Pay for service (Storage, Private server,Cloud stats: CoD Elite, MinecraftRealms),• Rental,• Merchandise (Angry Birds),• Pre-Sell the Game to the Players (PrisonArchitect, Minecraft).Overview of business modelsSource: David Perry on Gamedesign
  • 46. Be aware of the future
  • 47. • Who am I?• History of B2C business models• Status Quo / Challenges• Outlook / Quo Vadis
  • 48. What s next?
  • 49. Overview
  • 50. MarketgrowthrateRelative market shareHighLowLowHighDogsCash Cows?StarsRetailSharewareSubscriptionsDigital DistributionMicro-TransactionsPeripheral EnticementMerchandiseEpisodic EntertainmentGamblingPay per PlayUser Generated ContentGames as a servicePre-sellIngame-AdvertisingAdvertgamesSponsored GamesSell Player DataRentalDo your homework!
  • 51. Care about the audience first!
  • 52. More options than ever!
  • 53. The panacea !?
  • 54. Remember!
  • 55. Thanks for your time!@Indie_advisorandre@indieadvisor.dede.linkedin.com/in/andrebernhardt/All Book recommendations: http://bit.ly/14zdgkb