Thursday, March 12, 2009

LUDONOMIC
S THE GAME ECONOMY
GUEST LECTURE NDD EXPERTISE DAY
[ insert coin ]
Thursday, March 12, 2009

ERIK HEKMAN
1. RESEARCH GROUP CROSSMEDIA CONTENT;
BUSINESS MODELS AND POLICY NEW MEDIA -
WWW.CROSSMEDIALAB.NL
2. LECTURER DIGITAL COMMUNICATION AT
UNIVERSITY OF APPLIED SCIENCES UTRECHT
3. WWW.KUDONOMICS.COM
Thursday, March 12, 2009

CONTENT
- 1. USER-GENERATED VIDEO GAME CONTENT
2. VIDEO GAME BUSINESS MODELS
Thursday, March 12, 2009

GAMES GAMES GAMES
I WANT TO HAVE A GOOD TIME
‣ Early as 1958
‣ Console
‣ PC
‣ Diverse market
‣ Some interesting
changes
Thursday, March 12, 2009

USER-GENERATED
WAS ALWAYS THERE
Excitebike The Incredible Machine
Thursday, March 12, 2009

USER-GENERATED
MY ALL TIME FAVORITE
Stunts
‣ Here we see games providing the tools in order to
create content. Sharing through i.e. disks.
‣ How about games without the tools?
Thursday, March 12, 2009

USER-GENERATED
THE COMMUNITY WILL FIND A WAY
Doom
‣ Homebrew level editors
Thursday, March 12, 2009

USER-GENERATED
THE COMMUNITY WILL FIND A WAY
Half Life Counter strike
‣ Game mods
Thursday, March 12, 2009

USER-GENERATED
THE COMMUNITY WILL FIND A WAY
Quake 3 Dragon Ball Z Bid For Power
‣ Game mods
Thursday, March 12, 2009

NOW UGGC IS HOT
A TREND IN GAMES
SUPER! BUT WHAT IS THE BIG DEAL?
LET’S LOOK AT THE MEDIA CHAIN
GAME
BEFORE WE HEAD OVER TO THE PRESENT CASES
Thursday, March 12, 2009

THE VIDEO GAME INDUSTRY
THE OLD SITUATION
Game
Game Game Game
Management
Creation Distribution Consumption
& Packaging
‣ Disks
‣
‣ Nintendo
Nintendo
‣ Cardridges
‣
‣ SEGA
SEGA
‣ CD
‣
‣ Atari
Atari
‣
‣ Westwood
Westwood
‣
‣ Blizzard
Blizzard
Thursday, March 12, 2009

VIDEO GAME BUSINESS MODELS
WE TELL YOU WHAT TO PLAY
Video Game Publisher Creator
$
Video Game
Pay
$
for game
Gamers
Thursday, March 12, 2009

VIDEO GAME BUSINESS MODELS
WE TELL YOU WHAT TO PLAY
Thursday, March 12, 2009

THE VIDEO GAME INDUSTRY
THE CURRENT SITUATION
Game
Game Game Game
Management
Creation Distribution Consumption
& Packaging
‣ Disks
‣
‣ Nintendo
Konami
‣ Cardridges
‣
‣ Sony
Ubisoft
‣ CD/DVD
‣
‣ Microsoft
SEGA
‣ Internet
‣
‣ Blizzard
EA
‣ Blizzard
Thursday, March 12, 2009

THE VIDEO GAME INDUSTRY
THE CURRENT SITUATION
Game
Game Game Game
Management
Creation Distribution Consumption
& Packaging
‣ Disks
‣
‣ Nintendo
Konami
‣ Cardridges
‣
‣ Sony
Ubisoft
‣ CD/DVD
‣
‣ Microsoft
SEGA
‣ Internet
‣
‣ Blizzard
EA
‣ Blizzard
Thursday, March 12, 2009

VIDEO GAME BUSINESS MODELS
ADVERTISE WITH US
Video Game Publisher Creator
$
$ Video Game
$
Big media buy
display
advertisement
$ Pay
$
for game
Gamers
Thursday, March 12, 2009

VIDEO GAME BUSINESS MODELS
ADVERTISE WITH US
Thursday, March 12, 2009

VIDEO GAME BUSINESS MODELS
POLITICAL ISSUES
Thursday, March 12, 2009

VIDEO GAME BUSINESS MODELS
BRANDED GAMES
Thursday, March 12, 2009

VIDEO GAME BUSINESS MODELS
BRANDED GAMES
Thursday, March 12, 2009

VIDEO GAME BUSINESS MODELS
SUCCESFULL RELATION VIDEO GAME AND MOVIE
Thursday, March 12, 2009

VIDEO GAME BUSINESS MODELS
AND VICE VERSA
Thursday, March 12, 2009

VIDEO GAME BUSINESS MODELS
SOME LESS SUCCESFULL
Thursday, March 12, 2009

THE VIDEO GAME INDUSTRY
THEN INTERNET CAME ALONG
Game
Game Game Game
Management
Creation Distribution Consumption
& Packaging
‣ DVD
‣ Blizzard
‣ World of
‣ Internet
Warcraft
‣ DVD
‣ Little Big Planet ‣ Sony
‣ Internet
‣ DVD
‣ Maxis
‣ Spore
‣ Internet
Thursday, March 12, 2009

THE VIDEO GAME INDUSTRY
THEN INTERNET CAME ALONG
Game
Game Game Game
Management
Creation Distribution Consumption
& Packaging
‣ DVD
‣ Blizzard
‣ World of
‣ Internet
Warcraft
‣ DVD
‣ Little Big Planet ‣ Sony
‣ Internet
‣ DVD
‣ Maxis
‣ Spore
‣ Internet
Thursday, March 12, 2009

THE VIDEO GAME INDUSTRY
THE BIG CHANGE
Game
Game Game Game
Management
Creation Distribution Consumption
& Packaging
Thursday, March 12, 2009

THE VIDEO GAME INDUSTRY
LET’S FOCUS ON THE GAME DISTRIBUTION...
‣ Internet as an important
distribution channel
‣ Consoles and games starting to
rely on it
Game Distribution
‣ Multiplay, demos, statistics and
other game content
‣ The whole chain is controlled by
companies.
Thursday, March 12, 2009

THE VIDEO GAME INDUSTRY
AND ON THE MANAGEMENT & PACKAGING
‣ Tools are being given to the
audience
‣ Tools to meet others, create and
Game Management
share characters, levels and other
& Packaging
content
‣ Same as the social media
revolution
Thursday, March 12, 2009

UGGC: NEW POSSIBILITIES
MULTIPLAY
Left 4 dead
World of Warcraft
Thursday, March 12, 2009

UGGC: NEW POSSIBILITIES
STATISTICS SHARING
Mario Kart
Beautiful Katemari
Thursday, March 12, 2009

UGGC: NEW POSSIBILITIES
EXTRA CONTENT CREATION/SHARING
The Sims 2 Body Shop
Second Life
Thursday, March 12, 2009

B
UGGC: NEW POSSIBILITIES
CHARACTER CREATION/SHARING
Spore
Mii Characters
Little Big Planet
Thursday, March 12, 2009

UGGC: NEW POSSIBILITIES
LEVEL CREATION/SHARING
Boom Blox
Little Big Planet
Thursday, March 12, 2009

VIDEO GAME BUSINESS MODELS
ALL YOUR CONTENT ARE BELONG TO US
Video Game Publisher Creator
$
$ Video Game
$
Big media buy
display Content creators
advertisement
$ Pay
$
for game
Gamers
Thursday, March 12, 2009

UTOPIA?
TROUBLE IN PARADISE
WHOLE CHANGE LOOKS LIKE THE
SOCIAL MEDIA REVOLUTION
WITH THE SAME PROBLEMS
Thursday, March 12, 2009

UGGC
FREE RIDERS
Thursday, March 12, 2009

FREE RIDERS PROBLEM
Free riders are actors who consume more
than their fair share of a resource, or
shoulder less than a fair share of the costs
of its production. The free rider problem is
the question of how to prevent free riding
from taking place, or at least limit its
negative effects.
Thursday, March 12, 2009

1% creators
9% incidental creators
UG(G)C 90% free riders
Thursday, March 12, 2009

CENSORING THE CONTENT
WHO’S CONTENT IS IT ANYWAY?
± 84,000 individual Users have spent
days building custom worlds,
including tributes to classic games
and characters such as Final
Fantasy, Pac-Man, Batman, Sonic
The Hedgehog, God Of War, Super
Mario Bros and Indiana Jones.
Thursday, March 12, 2009

MODERATING THE CONTENT
SPORE + PORN = SPORN
Thursday, March 12, 2009

DIGITAL HARRASEMENT
LEGAL ISSUES?
Times of London Article:
Police in Britain, Belgium
and the Netherlands are
considering whether users
of “Second Life” may be
committing a crime if their
character — known as an
avatar — sexually assaults
or stalks another.
Thursday, March 12, 2009

TWILIGHT ZONE
DIGITAL AND ANALOGUE WORLDS COLLIDE
THE MAPLESTORY
MURDER CASE - JAPAN
A lady who married a man
virtually in the popular massively
multiplayer game MapleStory
was so furious at him unilaterally
divorcing her that she logged in
using his details and deleted
him. Police then arrested her for
unauthorised access to his
account.
Thursday, March 12, 2009

TWILIGHT ZONE
DIGITAL AND ANALOGUE WORLDS COLLIDE
THE HABBO HOTEL HEIST
- THE NETHERLANDS
A Dutch teenager has been arrested
for allegedly stealing virtual furniture
from \"rooms\" in Habbo Hotel, a 3D
social networking website.
The 17-year-old is accused of
stealing 4,000 euros (£2,840) worth
of virtual furniture, bought with real
money.
Thursday, March 12, 2009

THE MARKET PLACE
NEW DIGITAL ECONOMIES
Thursday, March 12, 2009

BLACK MARKETS
NEW DIGITAL ECONOMIES
Thursday, March 12, 2009

VIDEO GAME BUSINESS MODELS
THE NEW SITUATION
Video Game Publisher Creator
$
$ Video Game
$
Big media buy
Game & content
$
display
creators
Revenue
advertisement Sharing
$ Pay
$
for game & content
Gamers
Thursday, March 12, 2009

USER-GENERATED
GAMES
Thursday, March 12, 2009

THE VIDEO GAME INDUSTRY
WE CAN CREATE GAMES TOO!
Game
Game Game Game
Management
Creation Distribution Consumption
& Packaging
‣ Not only video games provide tools
‣ Flash, Game makers, XNA, etc
‣ Internet as distribution thus access to audience
‣ iPhone Goldrush
Thursday, March 12, 2009

THE VIDEO GAME INDUSTRY
EXAMPLES
World of Goo
iShoot
Thursday, March 12, 2009

THE VIDEO GAME INDUSTRY
EXAMPLES
Thursday, March 12, 2009

THE VIDEO GAME INDUSTRY
USERS CONTROL THE CHAIN
Game
Game Game Game
Management
Creation Distribution Consumption
& Packaging
‣ Instead of the industry controlling the chain
‣ Users have become a very important part of it
‣ The industry has to adapt
Thursday, March 12, 2009

THE VIDEO GAME INDUSTRY
USERS CONTROL THE CHAIN
Game
Game Game Game
Management
Creation Distribution Consumption
& Packaging
‣ Instead of the industry controlling the chain
‣ Users have become a very important part of it
‣ The industry has to adapt
Thursday, March 12, 2009

THE VIDEO GAME INDUSTRY
THE BUSINESS MODELS
‣ Retail
‣ Digital distribution
‣ In-Game
‣ Around-Game Advertising
‣ Advertgames
‣ Try before you buy (demos)
‣ Pro Accounts
‣ Subscription model
‣ Sponsored games
‣ Pay per play
‣ Freeware
‣ User-generated game content
Thursday, March 12, 2009

THE VIDEO GAME INDUSTRY
FREE GAMES?
Thursday, March 12, 2009

THE VIDEO GAME INDUSTRY
FREE GAMES?
Thursday, March 12, 2009

FOOD FOR THOUGHT
CLOSING QUESTIONS
EMPTY SHELLS?
CROSS MEDIA?
HOW CAN THE INDUSTRY ADAPT?
HOW ABOUT QUALITY CONTROL?
ONLY ECONOMICAL VALUE CREATION?
HOW ABOUT DEMOCRATIC, SOCIAL AND CULTURAL VALUE?
Thursday, March 12, 2009

THANK YOU
erik.hekman@hu.nl | www.kudonomics.com
Thursday, March 12, 2009