Presented by : Hazim BanjarStudent P D 0 9 0 1 0 2 ID1/22/2012
Video gaming becoming mainstream Average age of video gamers in the US: 37 Gender breakdown: 58 percent men; 42 percent women Percentage of US households that play video games: 72 global video game industry in 2010 pulled in $56 billion. number is expected to reach $82 billion a year by 2015,
The traditional (retailed and boxed games) gaming industry is losing its charm:1. Large numbers of layoffs and studio closing2. shrinking (Japan) and non targeted markets (China – South Korea)3. Video game Retail sales dropped 8%4. Middle budget publishers struggles (SEGA, THQ)5. Cost of game development is extremely high
Lack of innovation Majority trapped as work for hire Losing IP rights Spending too many years on making a game the Shigeru Miyamoto’s (worker) mentalityis no longer acceptable
Example:$10 Million video game title budget Selling 1 Million units for $60$60 Brake down -:-$12 for retail-$12 for hardware console royalties (SONY – Nintendo –Microsoft)-$10 for recapture recoupment of reinvestment in R&D-$9 15% of marketing add spending= $17 profit for publishers . Development royalties $ ??
High Risk High RiskHigh • Console gaming • MMO gaming C A P I Medium Risk low Risk T A • Browser social gaming • OS smart phone and L tablets GamingLow PROBABILITY High
For Consumers For developers1. Cultural issues 1. Low cost budget, less time2. Engaged at very small age 2. 70% profit from the value3. Digital purchase one time chain only 3. No need for publishers4. Free to play or less than 4. Keeping the IP $10 to buy 5. High volume5. Easy recovery 6. It’s ok to fail 7. Opportunities to JV with non gaming related industry 8. Low piracy rate
Strength Weakness Owning the IP Lack of business mentality Creativity lack of staff or outsource dependent No due date pressure Self-publishing ability Game development experience Fast adaption to industry changing conditionsOpportunities Threats M&A. Work for higher opportunities Significant competitor presence Low entry barrier level and Cost corporate publishers. free-price cut development strategy Funding access Fragmentation Lower risk High Freemuim rate Expanded adaption rate of smart phones Patent lawsuit wars between in developed countries smartphone companies Rise of social games and new genres Uncertainty
The iOS and Android alone are getting 58% share ofthe US portable game software market
Adapt:developers have to adapt using OS SDK’s to make games. They can start by using programs that are similar and familiar to the developer. Improve: unlike traditional games. Smart OS platforms games (if not imported from a traditional platform) have to be improved and updated on a constant basis Implement: the final phase after a successful production .
• Needs, • price stisfygames on the go Customer Cost Communic Convince ation • app • facebook, tstore, E- witer etc portal
Experiment for future opportunities Think beyond video games Cross platforms Make HTML5 games The feedback of your games is always true