Trip Hawkins• Born on Dec 28, 1953• Nationality : American• Alma mater: Strategy and applied game theory at Harvard University• B- School - Stanford• Known for: Founding Electronic Arts and founding 3DO• Awards: Hall of Fame by the Academy of Interactive Arts and Sciences Traits: • Promotes multi cultural environment • Flat organizational structure • Promoted creativity • Wants people to take ownership • Updated with industry trends
600 unique titles and millions of games sold 200 million dollars revenue In 1982
Founded 3DO in 1991Designed devices with video and audio features $599 price tag was considered expensive
Exploring Options for Acquisition• Reducedcost ofoperations•Maturetelecommarket• Englishspeakingworkforce
3 year old Finnish company, Developed mobile games, high quality game titles , existing relationship with leading Cell phone carriers, Broad geographic distributionSumea – Core set of game developers in organization – English speaking multicultural staff
Illka Paananen • Sumea’s CEO • Age: 26 • Alma Mater: Industrial management at Helsinki University of TechnologyRepercussions in 2006• Finland Team grew from 25 to 150• Games were good but cost was high• DC successfully raised a loan of 43.8 million dollars and it became profitable for the first time
More Acquisitions• In 2007 they acquired Small Device, Bangalore based company –Multi device adaptability
Small Device - Dikshant Dave • English speaking college graduates • Mature understanding of capitalism • Blend well with west • Inexpensive • Responsibility : Adapting games to work on all devices.
More Acquisitions • Acquired Creative development team in Barcelona, Spain (cater to Spanish speaking markets) – energetic, young creative and passionate
Journey with iPhone• 2008 : iPhone entry Initial Phase : Apple gave more airtime for applications than games Perceived to be similar to Social Media Initial Hesitation• 2009 : launched 5 games April 2009 3 of the first 4 games made it to No1 on the download charts July 2009, all the games were being made both for iPhone and standard platforms Redirected resources to the iPhone game development team.
Lets take a StepBack and see the Options
1 Acquisition2 Social Gaming Office3 Social Gaming Team
ACQUISITION Merge with a start-up Winner of several social gaming titlesBenefits Drawbacks• Quick solution • Expensive• Grow expertise • Synergy• Build new relationships • Culture differences• Globalization/Expansion • Strategic errors• Attract developers• Successful experience
SOCIAL GAMING OFFICE Have a single office location for Social Gaming game developments Considering San Mateo as the office locationBenefits Drawbacks• Decision makers hub • Demotivation• Dedicated team • Expensive• Synergy • High Attrition rate• Increase in productivity• Geographical proximity to the cutting edge developers
SOCIAL GAMING TEAM Forming tracks of group of employees at each location A social gaming team of volunteersBenefits Drawbacks• Personal interest • Tedious process• Motivated employees • Knowledge transfer• Appeal to global customer base • Coordination issues• No demotivation
Mobile Gaming Industry
Business Overview• 2009 Gaming industry estimate at US$34 billion• Split across Asia, Europe and the United States• Target customers are “hardcore gamers” and “omni gamers” (convenience gamers)• Mobile games generated US$5.4 billion in 2008• Predicted to reach US$10 by 2013• Major rivals – Electronic Arts, Gameloft, Namco, Glu Mobile, Oberon Media.• Cumulatively generates 70% of worldwide revenue
Game Distribution• Present games to wireless carriers months before release• Carriers choose games and present it on download listings• Thousands of platform devices available• Digital chocolate covered 1500 of the most popular devices• Built relationships with major carriers to gain visibility• Compensated according to number of downloads and negotiated revenue share agreement• Fees received 30-90 days after downloaded• No reliable feedback provided
Through ConsumerMarketplaces• Mid 2008 – launch of Apple’s App Store• Gains access to tens of millions of preset Apple App accounts• Launch of Google Android Market, RIM/Blackberry (App World), Nokia (Ovi)• More difficult payment procedure• Different systems (operating, touch and swipe features)• Predicted to gain proper presence by 2010
Our Take !!!
Game Development Process Creativity Model Ideation Consolidation (YDC ?) Planning for innovation Commercialization
Analysis • Fall in efficiency (no.) & effectiveness (quality) • Loosing focus • Inadequate competency for Social Games
Recommendation Current Situation Increase capacity of skilled developers Initiate creative game development in Bangalore Increase productivity Idea and game development contestsIncrease development work for other platforms (Android/RIM)
Recommendation Social Gaming Form few tracks of group of volunteering employees Increase capacity with related skilled developers Wait and watch for an opportunity to acquire the correct firmAcquire a firm with correct technical capability and cultural blendMerge the operations of the acquired firm and social gaming team