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Eco eco. of gaming inc.
Eco eco. of gaming inc.
Eco eco. of gaming inc.
Eco eco. of gaming inc.
Eco eco. of gaming inc.
Eco eco. of gaming inc.
Eco eco. of gaming inc.
Eco eco. of gaming inc.
Eco eco. of gaming inc.
Eco eco. of gaming inc.
Eco eco. of gaming inc.
Eco eco. of gaming inc.
Eco eco. of gaming inc.
Eco eco. of gaming inc.
Eco eco. of gaming inc.
Eco eco. of gaming inc.
Eco eco. of gaming inc.
Eco eco. of gaming inc.
Eco eco. of gaming inc.
Eco eco. of gaming inc.
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Eco eco. of gaming inc.

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With Siddharth Sahota

With Siddharth Sahota

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  • 1. By: NARENDRASINGH D PATANKAR
  • 2. INTRO Whether you hate it or like it, the gaming industry is a multi-billion dollar industry which continues to grow every year.
  • 3. Sales  2003 U.S. sales of console games totaled $5.8 B  Computer games $1.2 billion, consoles $4.6 billion  Only entertainment industry to grow in 2003  Movie and music industries reported losses  According to Exhibitor Relations and Nielsen SoundScan  Console game players:  Action (30%), sports (20%), racing (15%), RPG (10%), fighting (5%), family entertainment (5%), and shooters (5%)  Computer gamer players:  Strategy (30%), children's entertainment (15%), shooters (15%), family entertainment titles (10%), RPG (10%), sports (5%), racing (5%), adventure (5%), and simulation (5%) The Entertainment Software Association
  • 4. Game Developers  Can be independent, or subsidiaries of publishers  Many developers started on PC due to accessibility of tools  Console development requires proprietary development kits and preexisting relationship with publisher 4
  • 5. # COMPANY MARKET SIZE (in billion USD) 1 MICROSOFT 237.64 2 DISNEY 68.99 3 NINTENDO 19.47 4 SONY 17.19 5 ACTIVISION 14.01 6 ZYNGA 6.2 7 ELECTRONIC ARTS 5.98 8 KONAMI 3.79 9 SQUARE-ENIX 2.2 10 TAKE-TWO 1.26 11 UBISOFT .54 12 THQ .45
  • 6. # COMPANY REVENUES (million USD) 1 NINTENDO 6779 2 ACTIVISION BLIZZARD 4279 3 ELECTRONIC ARTS 3728 4 SONY 1914 5 MICROSOFT 1741 6 KONAMI 1594 7 UBISOFT 1249 8 TAKE-TWO INTERACTIVE 916 9 SQUARE ENIX 916 10 THQ 909
  • 7. Video Game Industry Value Chain Development Motion-capture provider Data Platform holder Art/animation provider Contract QA provider Data Game code Developer Game code Bug list (Sony, Microsoft, Nintendo) Publisher Game code Game code (master disk) Finished goods Finished goods Game samples & marketing materials Distributor or rep group PR firm & ad agency Finished goods Game info Retailer (Wal-Mart, Target, Toys "R" Us, EB) Media (TV, magazines, Internet) Finished goods Delivery media manufacturer Game info Consumer 7
  • 8. Revenue from $50 Console Game Amount Purpose Paid By Paid To $3 Cost of goods Publisher Media manufacturer $7 Publishing license royalty Publisher Platform holder $13 Retailer profit Consumer Retailer $3 Markdown reserve Publisher Retailer $8 Development cost Publisher Developer $10 Operating cost Publisher Internal (overhead, freight, co-op, bad debt) $6 Marketing Publisher Ad agencies and media Items in bold can be converted to profit through careful publisher cost management. 8
  • 9. Platform Holders  Revenue comes from:  Hardware sales  Licensing fees from compatible peripherals  First-party games  Licensing fees from third-party games  Licensing fees from development tools  Revenues from sales of proprietary delivery media 9
  • 10. PCs are an Open Platform  Intersecting relationships among:  CPU manufacturers, application software providers, graphics chip manufacturers, and box assemblers  CPU (Intel, AMD) and graphics chip (NVIDIA, ATI) manufacturers provide developer support and market their technology benefits directly to consumers  Application software providers (Microsoft, Silicon Graphics) give developers free tools to ensure compatibility  Box manufacturers (Dell, HP) may bundle hot software titles to add value to their sale  Low barrier to entry for developers, but high competition for shelf space 10
  • 11. Consoles are a Closed Platform  Console companies (Nintendo, Sony, Microsoft) control nearly every aspect of games on their platforms  Proprietary development hardware and software  Permission to become a licensed publisher  License to use console company trademarks in marketing materials  May require permission to start a game  Certification of a finished game  Investment in hardware must be offset by revenue from software (around $7/unit for third-party games) 11
  • 12. INDIAN GAMING INDUSTRY • Indian PC and Online Gaming Industry in India are poised to grow at a healthy rate due to rising penetration of PC and internet connectivity. Young population in India will further increase the demand for gaming.
  • 13. REASONS FOR RISE :  Increase in internet penetration;  Favorable Demography;  Favored outsourcing destination for many gaming companies;  Social networking sites;  Rise in the PC Sales.
  • 14. PIRACY Piracy has hit the gaming industry very hard!! The total revenue of gaming by piracy is estimated to be much higher than the legal Gaming Industry.
  • 15. Piracy in India  Like with any content business, piracy is a key problem area that affects the growth of the Indian gaming industry. While it seriously restricts the sales of many international game franchises, it completely jeopardises the possibility of the Indian game development industry which may be interested in creating Indian intellectual property (IP) content, with dependence on a captive audience in India for initial success
  • 16. Factors  High customs;  Release of games in foreign markets before releasing in India;  Duplication from friends;  High prices.
  • 17. Measures  Introducing games worldwide at one time;  Reduction in taxes;  Price reduction.
  • 18. CONCLUSION  The gaming industry has quickly grown in the past, and we expect it to keep growing faster than the software industry average. As the world population grows richer, progressively more money is available for entertainment, which provides a sound revenue driver for the gaming industry.
  • 19. ANY QUESTIONS????

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