Innovation Workshop –Games and Reality

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This presentation is part of a 4 hours workshop called "Innovation Workshop –Games and Reality". During the workshop students from the Recanati School of business in Tel Aviv University thought of games and startup related games ideas and "fought" against each other discovering if their idea has a chance to become the great big next hit.
I really liked some of the ideas, for example: a game you need to run in real life in order to "charge" your character in the game. A game you "scan" your real pet and play with it in a virtual world, including a virtual dog fight with real dogs . A real cart driving game you play wearing Google glass. The glass allows you to see virtual power ups or virtual avatars to enhance your driving experience (did someone say zombies)
For me the workshop was really fun. I hope the students had fun as well and I do hope some of these ideas will become actual games.

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Innovation Workshop –Games and Reality

  1. 1. Innovation Workshop – Games and Reality
  2. 2. About Me • Founder of Jivy Group, a development house for startups and Playful Shark, an Israeli game development studio • Advisor & Mentor for startups • Teacher: Beit Berl, Kibbutzim Seminar, TAU • PhD student: STS @ Bar Ilan • Active & founding member in GameIS Blog: www.dudipeles.com, Mail: dudipeles@gmail.com
  3. 3. The next 4 hours 1.5 hours - listen 10 minutes break 1 hour - work on games ideas 10 minutes break 1.5 hours – idea battle 10 minutes – listen (and get your homework)
  4. 4. Mission 0 - Think • I’m going to talk for an 1.5 hours, while I’m talking your mission is to write anything that pops in your head • It is recommended to use a pencil and paper
  5. 5. Games and Realty
  6. 6. For years game developers had a dream – make games more and more realistic. Some of the first games didn’t have graphics at all…
  7. 7. But gradually, games stated to have more and more complex spaces
  8. 8. Leaving leas space for imagination. Becoming more realistic
  9. 9. On of the most important technologies that turned games to more realistic was 3d
  10. 10. Even 5 years ago environments graphics (like cites and jungles) were very close to real life environments
  11. 11. Modern games look so realistic its hard to know if it’s a photo or a game
  12. 12. In today's games face excretions are becoming more and realistic as well
  13. 13. This dream is now finally a reality
  14. 14. http://allthingsd.com/20130617/confirmed-oculus-vr-raises-16-million-series-a-for-virtual-reality-gaming/
  15. 15. The chase over realism does not end with making the ultimate illusion - For years we are using real tools
  16. 16. 1972
  17. 17. We are using our identity
  18. 18. We are using our body
  19. 19. We are using our fingers
  20. 20. We are using our location (Ingress - as of May 2013 there were about 500,000 players globally)
  21. 21. We are embedding game mechanics in things that are not games
  22. 22. This chase of reality creates opportunities. This workshop is about finding them and allowing them to evolve. Before we start working we need to get to know the market
  23. 23. The “Traditional” Games Industry
  24. 24. The industry is very traditional • Mario was in more then 200 games • Successful new IP is very rare • Home console game price didn’t change in 30 years
  25. 25. 2008 was the most profitable year in video games ever
  26. 26. • Nintendo – 16.7 Billion • Sony Computer Entertainment – 14.0 Billion • Microsoft Entertainment Device Division – 8.2 Billion • Electronic Arts – 4.2 Billion • Activision Blizzard - 3.0 Billion In 2008 video games market size world wide was $55B 5 companies dominate 85% of the market. Less then sixth of the marked is divided between tens of thousands of companies
  27. 27. 2008-2012 – Some Numbers • NASDAQ +25% • EA Stock -61% • Activision Blizzard Stock -33% • Xbox Division in Microsoft lifetime loss $7.8B • Play Station Division in Sony lifetime loss $3B • Nintendo Stock -71% next-comes-what-die-consoles-the-http://www.slideshare.net/bcousins/when
  28. 28. The New Game Industry
  29. 29. The biggest video games companies 2012 • Nintendo valued $17.7B (was $61.7B in 2008) (today $15.5B) • Activision $13.3B (today $16.2B) • Zynga $9.8B (today $2.6B) • Gree $7.1B (today $1.9B) • Nexon $6.3B (today $5B)
  30. 30. New companies that entered the games in the past few years
  31. 31. New types of Platforms
  32. 32. 1972 - 1997 1972 1977 1982 1989
  33. 33. 1998 - 2010 200? 2004 2006 20011998 2000 2007 2008 2008 2010
  34. 34. New Evolving Platforms
  35. 35. OUYA • Ouya was a kick starter project that wanted to raised $950K. • It got to it’s goal in 9 hours and eventually raised $8.5M
  36. 36. Inflation of sub-industries • First 25 years – 4 platforms types • Next 15 years – +10 platform types 0 2 4 6 8 10 12 14 16 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
  37. 37. What caused the inflation?
  38. 38. Facebook - Games and real Identity
  39. 39. Facebook By the end of 2007 there were 7,000 apps in Facebook. Today there are over 400,000. most are games 2004 – founded 2006 – opened to the public May 2007 – opened Facebook platform to the public
  40. 40. July 2007
  41. 41. June 2009 December 2010 April 2008
  42. 42. At first most games made money from ads. Eventually virtual currency became the main revenue stream
  43. 43. The Social Games Industry • A bit less then half of the world that is in social networks is in Facebook. • Zynga makes 5 times more then any social games company in Facebook
  44. 44. Important Genres • Casino • Farming • Puzzle • Hidden objects • Strategy (mid-core) • RPG (mid-core)
  45. 45. More Games
  46. 46. And even more
  47. 47. Mobile - Games and real location
  48. 48. The iPhone • June 2007 – The first iPhone • July 2008 – Apple launches the app store • 500 apps on launch • Most of them games, most cost $10.
  49. 49. • By the end of 2009, 30M iPhones were sold. At the end of that year Angry Birds was published Angry birds was sold 12m copies of its original version, and was downloaded more the 1.7 billion times over all platforms revenue/-in-euros-million-152-make-only-you-and-downloads-billion-7-1/04/2013http://www.gamesbrief.com/ The iPhone
  50. 50. Price Drop • Sales charts led to a price drop • Today most games are sold in $0.99
  51. 51. More games Feb 2011 6.5M Apr 2010 6M Apr 2009 15M Oct 2010 3M in first months
  52. 52. New Business Model Aug 2011 15M Jun 2012Feb 2012 50M in 50 days Dec 2011 Most games gradually became free with a virtual currency revenue model
  53. 53. Only 2 out of the 40 most profitable games are paid
  54. 54. The iPhone Games Industry • In 2010 there were games sold in the app store in about $1B. In 2012 it was $3B. • Apple is the most dominate company, it charges 30% of each sale • More then 100,000 registered app developers
  55. 55. Android • World wide there are more then 3 Android based phones for each iPhone. • An average iPhone player spends 5 times more the an android player • In US 84% of smart phone games were from iOS phones -still-apple-shows-research-/new05/05/2012http://www.forbes.com/sites/johngaudiosi/ android/-against-war-game-video-the-winning
  56. 56. Games and physical world
  57. 57. Tablets • Mid 2010 – first version for the iPad • Currently the most common tablet, with close to 150M units sold.
  58. 58. Disky A new game experience that was not relevant in older platforms
  59. 59. Connected toys
  60. 60. Games for change
  61. 61. Education
  62. 62. Military
  63. 63. Health
  64. 64. Advertisement
  65. 65. Gamification
  66. 66. Not Game at all – Technology
  67. 67. The practical part (reality)
  68. 68. As long as there are new platforms there are new opportunities.
  69. 69. Mission 1 – You (5 minuets) • What is your purpose in life? What do you want to change in the world ? What do you want to do that will make you, your mom and your children proud? • Write it down in 50 words
  70. 70. Say something
  71. 71. Change something
  72. 72. Make Money
  73. 73. Mission 2 - the ideas (20 minuets) • The most important thing about an initial idea is that it will be something you will love to do • Find a partner, share your “purpose in life”. • Read to each other things you wrote during the presentation • Think of 3 great ideas for a games or games startups • Write up to 50 words describing essence of each idea • Find a picture in Google images that can represent the idea
  74. 74. • If you have a dream to develop a game as a child now is the time to share it • Get inspired by looking up old video games and old toys
  75. 75. Example Spaceship Taki: A multiplayer card game in which each card used by a player sends a spaceship to a 2d fighting arena, in it the spaceships fight automatically. The player can only choose cards before the game starts and pick a card in his turn which ship to send.
  76. 76. Mission 3 - Platform & Business Model (10 minuets) • Find the most suitable platform for your idea. • Find the main business model that will allow your game to earn money. • Update the 50 words description to include the platform and business model.
  77. 77. Business Models • Virtual Currency • Paid • Ad Supported • B2B vs B2C
  78. 78. Example Spaceship Taki: A multiplayer card game in which each card used by a player sends a spaceship to a 2d fighting arena, in it the spaceships fight automatically. The player can only choose cards before the game starts and pick a card in his turn which ship to send. Platform: Mobile Devices (Facebook connectivity) Business Model: sell cards using virtual currency
  79. 79. Mission 4 - The Player (10 minutes) • Who is going to play your game or use your startup? Who is going to pay for your game? • Think of age, gender & country
  80. 80. Example Spaceship Taki: A multiplayer card game in which each card used by a player sends a spaceship to a 2d fighting arena, in it the spaceships fight automatically. The player can only choose cards before the game starts and pick a card in his turn which ship to send. Platform: Mobile Devices (Facebook connectivity) Business Model: sell cards using virtual currency Players: 12-35, Mostly boys, Western
  81. 81. Mission 5 – Pick 2 (5 minutes) • Pick the 2 ideas you like best and has the most potential. • Mentally attach a card to each idea you picked • Ideas without a card are out of the game
  82. 82. Mission 6 - Idea battle (90 minutes)
  83. 83. Battle Rules • 2 random ideas are chosen • each idea is pitched (max 1 minute) • We vote, you can vote for only one of the ideas. • The winning idea gets to keep the losing idea card/ cards (increasing his chance of being chosen in the next ballets) • If an idea that was pitched is chosen again you get 1 minute to elaborate – it’s not mandatory
  84. 84. Let the games begin • While others fight, try to listen and improve your surviving ideas.
  85. 85. And the winner is… What now? Not only the winner can continue to the next stage. Here is an extra life for everyone
  86. 86. Choose your path Prototype Business Plan You’ll need to do both anyhow…
  87. 87. The Israeli Industry
  88. 88. Israeli Video Games Industry • Technology and startups • Influence and connection to the online gambling industry • Limited infrastructure (business wise and educational) • Boosting in the past 2 years
  89. 89. • Constitute an official body that nurtures the local community. • Serve as an official representative with institutional, commercial, academic, and media entities. • To represent the local industry to international community. ‫לקבוצה‬ ‫להירשם‬ ‫מומלץ‬ ‫מאוד‬‫ב‬-Facebook‫באתר‬ ‫ולהתעדכן‬ http://www.facebook.com/groups/GameISGroup/|http://gameis.org.il/
  90. 90. Major events in Israel
  91. 91. Your Homework Answer these 3 questions: 1. Describe one idea for a game or a startup in details including: detailed pitch, platform, business model, players (you can choose your idea or any other idea that was presented in class). 2. Was the idea you choose successful in the “idea battle”? Why? Analyze the idea and its relative success. 3. Find at least 3 games or startups that can be called competitors (or “inspiration”). Describe the differences your idea and it’s competitors focusing on your advantages. Homework answer recommended length: 4 pages Answers should be sent to ominskya@gmail.com and dudipeles@gmail.com Last day for submission: 1/8/2013 Mail subject should be: [Your Full Name] - Innovation Workshop – Games and Reality

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