Vili l game ecosystems
Upcoming SlideShare
Loading in...5
×
 

Vili l game ecosystems

on

  • 452 views

 

Statistics

Views

Total Views
452
Views on SlideShare
452
Embed Views
0

Actions

Likes
0
Downloads
1
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Vili l game ecosystems Vili l game ecosystems Presentation Transcript

  • Game Ecosystems Business Model Innovation in the DigitalEntertainment Sector: Implications for Policy Dr Vili Lehdonvirta LSE Innovation Co-Creation Lab vili.lehdonvirta.com Twitter: @ViliLe
  • Why Games?—  $65 Billion industry, bigger than music or cinema—  Digital game companies are pioneers in innovations that drive today’s digital economy —  Games have contributed to the worldwide development of computer hardware more than any other application—  What can we learn from business model innovation in the Finnish game industry?
  • Finnish Game IndustryTurnover 165 M€ – 90% from export (2011)—  Represents ~0.25% of Finlands total exports—  CAGR 22%! (2004-2011)1300 employees (2011)—  Average employees per company: 16—  Young males
  • Business Model Innovation 1: Digital Distribution Source: Neogames, The Finnish Game Industry 2010-2011
  • Business Model Innovation 1: Digital DistributionHurdles:1.  Fragmented e-payment infrastructure2.  Fragmented e-commerce regulation3.  Fragmented taxation systemsIntegrated distribution platforms (App Store, Steam)solve this – but at the cost of 30% of revenues toCalifornia→ Policies aimed at creating a seamless digital market
  • Business Model Innovation 2: Virtual Economies Consumer sells Consumer buys content to other Virtual Currency consumers to earn Consumer uses money/VC Virtual Currency to buy content / Developer redeems Consumer earns Creates content Virtual Currency Virtual Currencythrough gameplay for earnings from or ads publisher—  From credit card payments to stored value and micro- payments (virtual currency)—  Users and third-party developers not only consume but also create value (user-created content, microwork)—  Users and third-party developers can redeem virtual currency for real money
  • Business Model Innovation 2: Virtual EconomiesRegulatory hurdles:—  Virtual currencies’ unclear regulatory/tax status (closed loop/open loop, accounting rules, breakage, ...)—  Micro-employment not recognized in employment regulation—  Electronic payment infrastructure does not facilitate payments back to consumers —  PayPal solves this, but at the cost of ~5% of earnings to California→ Explicit policy development on virtual currencies and microwork
  • Business Model Innovation 3: Crowdfunding Kickstarter.com
  • Business Model Innovation 3: CrowdfundingRegulatory hurdles:—  Donations-based crowdfunding —  Regulations designed for physical donations —  Global digital online donations—  Investment-based crowdfunding —  Heavy regulation of investment offers —  Number of investors can be 10,000s→ Policies aimed at frictionless donations and micro-investment
  • Finnish Game Ecosystem—  The biggest business model innovation in the Finnish game industry is the ecosystem—  The ecosystem is vital for talent, technology, investment and innovation—  Consists of developers, universities, industry events & organizations, informal networks, angel investors, public R&D support, gamers, gamer events, media—  Most important component is game culture: high acceptance of digital gaming in Finnish society & history of hobby game programming competitions→ Policies aimed at promoting grassroots digital culture!
  • SummaryPolicies needed for:—  Seamless digital market—  Virtual currencies—  Digital micro-employment—  Digital donations & micro-investments—  Game culture! Thanks for listening! vili.lehdonvirta.com Twitter: @ViliLe