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From Competitive Instinct
to Competitive Advantage
Gamers as Employees and Customers




Jeff DeChambeau
December 1, 2009
Examine the gaming
     experience

   Implications for
managers and marketers
                      © 2009 Moxie Insight. All Rights Reserved.
          2
CoD: Modern Warfare II
                                      Modern Warfare II (Infinity Ward)




Games are really big
“Games are the new movies”
“Games are the new movies”
  Ghostbusters (1.25M units)
   Ghostbusters (1.25M units)
 Batman: Arkham Asylum (>2M units)
   Batman (>2M units)
Grand Theft Auto IV
Grant Theft Auto IV
Call of Duty: Modern Warfare II
Call of Duty: Modern Warfare II
$60-80/unit
$60-$80/unit


                                      © 2009 Moxie Insight. All Rights Reserved.
                                  3           Copyright nGenera 2009
Who are these people?




                        © 2009 Moxie Insight. All Rights Reserved.
           4                    Copyright nGenera 2009
The numbers
                                                                                                                                              Frequency

                                                                                                                                Daily             Weekly             Monthly                Less

                                                                                                              All                21%                28%                 27%                 20%
                                           Gender                                                           18-29                20%                30%                 30%                 16%
                     Men                                                55%                                 30-49                20%                26%                 25%                 24%
                   Women                                                50%                                 50-64                19%                30%                 25%                 24%

                                              Age                                                            65+                 36%                28%                 17%                 14%
                                                                                                       Source: Pew Internet & American Life Project Survey, October-December 2007. n=1063 total adults,
                    18-29                                               81%                                                                 margin of error is +/-3%

                    30-49                                               60%
                    50-64                                               40%
                      65+                                               23%

                                Household Income
                 <$30,000                                               52%
          $30,000 - $49,999                                             59%
          $50,000 - $74,999                                             62%
                 >$75,000                                               56%

Source: Pew Internet & American Life Project Survey, October-December 2007. n=2054 total adults,
                                     margin of error is +/-2%
                                                                                                                                                                     © 2009 Moxie Insight. All Rights Reserved.
                                                                                                   5                                                                         Copyright nGenera 2009
Spore (Maxis)




Games are their own worlds
     People invest a lot (!) of time in these worlds
     Successful games are successful for a reason
     Best games share common design principles
       Gamers are likely to play the best games
 We can therefore talk about the “gaming experience”




                             6                         Copyright nGenera 2009
Games have their own logic
                     So does the organization!
In games, this logic is explicitly and implicitly taught to the player
        Very specific rules and criteria must be met to win
                    Winning is always the goal
      Gamers are therefore predisposed to following rules
   The games have to teach the gamers how to play and win
Let’s look at an example of an entire game that’s a tutorial, Portal

                                                            © 2009 Moxie Insight. All Rights Reserved.
                                  7                                 Copyright nGenera 2009
Portal video
http://www.youtube.com/watch?v=TluRVBhmf8w
Wired explaining Portal



Games teaching gamers
       Present obstacle

         Introduce skill

      Confirm competence

       Increase challenge

     Combine & summarize

        Add to toolbox

                                © 2009 Moxie Insight. All Rights Reserved.
                            9           Copyright nGenera 2009
Plants vs. Zombies (PopCap), GTA3 (Rockstar), NBA 2K10 (Visual Concepts)
      Legend of Zelda: OoT (Nintendo), Starcraft 2 (Blizzard), Homeworld (Relic)




                                                © 2009 Moxie Insight. All Rights Reserved.
10                                                      Copyright nGenera 2009
Team Fortress 2 (Valve Software)


Optimize the fun
                Gamers are playing to win
           Other gamers are means to victory
                Camp, bait, exploit, hack
      How do you encourage supportive behavior?
          Games generate lots of perfect data
  Leads to “local optimization” and “optimal strategies”
     Few strategies are better than being the fastest



                             11                                Copyright nGenera 2009
Team Fortress 2 (Valve Software)




     © 2009 Moxie Insight. All Rights Reserved.
12           Copyright nGenera 2009
Bioshock (2K)




     © 2009 Moxie Insight. All Rights Reserved.
13           Copyright nGenera 2009
Despair Incorporated




Gamers fail often
Failure is a core dynamic for all games
Gamers want to win, just not too easily
Failures resets strategies
Encourage new solutions & skills
Attempted in quick succession
Results in a fearless, iterative approach
Skills are mastered through repetition
Example: Braid
                                            © 2009 Moxie Insight. All Rights Reserved.
                                       14           Copyright nGenera 2009
Braid video
http://www.youtube.com/watch?v=uqtSKkyJgFM
Forza Motorsports 3
http://www.youtube.com/watch?v=kZPHswbgeuY
Counter-Strike & Half-Life 2 (Valve Software)




 Beyond the final boss




Counter-Strike        HL2DQ
                                     © 2009 Moxie Insight. All Rights Reserved.
                 17                          Copyright nGenera 2009
Core takeaways

Gamers are self-interested (maybe even lazy)

      Gamers have a need for speed

       Gamers demand engagement

    Gamers experiment (and fail) readily



                                               © 2009 Moxie Insight. All Rights Reserved.
                     18                                Copyright nGenera 2009
Gamers are self-interested
Managers                            Marketers
Clearly define tasks and             Help them win, and you win too
“completion conditions”
                                    Don’t distract, annoy,
Explain the bigger picture          or detract from the
                                    experience
Make altruism a system trait
                                    Appeal to their vanity
Beware of a “peers as
resources” mentality

                                                             © 2009 Moxie Insight. All Rights Reserved.
                               19                                    Copyright nGenera 2009
Gamers have a need for speed
Managers                              Marketers
Give them urgent projects             Target them carefully
Beware the tension between            Be respectful of their time and
speed and velocity                    succinct with your message
Expect frustration in response        Give them an edge
to slow peers, processes,
and systems
Present tasks in series
                                                              © 2009 Moxie Insight. All Rights Reserved.
                                 20                                   Copyright nGenera 2009
Gamers demand engagement
Managers                            Marketers
They are predisposed to             Create engaging, meaningful
following rules                     consumer experiences
Carefully open up feedback data Extend virtual experiences into
                                the physical world
Draw clear links between
behaviors and results           Extend physical experiences into
                                virtual worlds
Recognize wins publicly
                                Offer “context aware” products
Give them a trophy case
                                                         © 2009 Moxie Insight. All Rights Reserved.
                               21                                Copyright nGenera 2009
Gamers experiment readily
Managers                                Marketers
Set the scope and context               Understand the core dynamics
                                        of how games work
They’re not afraid to fail, but
failure isn’t always “no biggie”        Create campaigns that show
                                        gamers that you understand
Clearly specify what tools can
                                        their shared experience
(or can’t) be used when solving
problems                                Experiment yourself


                                                              © 2009 Moxie Insight. All Rights Reserved.
                                   22                                 Copyright nGenera 2009
Related research
Gamers as employees and customers, January 2010, by Jeff
DeChambeau
Valve Software: Engaging prosumers, competitors, and
communities, November 2009, by Jeff DeChambeau
The Art of Warcraft - Leadership, Metrics, Design and Business
Intelligence for the Collaborative Enterprise, and Radical
Decentralization: Organizational Design, May and June 2009, by
Alan Majer
Game Time: Marketing Opportunities in Social Gaming, August
2009, by Catherine Thorn
                                                        © 2009 Moxie Insight. All Rights Reserved.
                                23                              Copyright nGenera 2009
Jeff DeChambeau
jeffd@moxieinsight.com
     416.836.8880

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Gamers as Customers and Employees

  • 1. From Competitive Instinct to Competitive Advantage Gamers as Employees and Customers Jeff DeChambeau December 1, 2009
  • 2. Examine the gaming experience Implications for managers and marketers © 2009 Moxie Insight. All Rights Reserved. 2
  • 3. CoD: Modern Warfare II Modern Warfare II (Infinity Ward) Games are really big “Games are the new movies” “Games are the new movies” Ghostbusters (1.25M units) Ghostbusters (1.25M units) Batman: Arkham Asylum (>2M units) Batman (>2M units) Grand Theft Auto IV Grant Theft Auto IV Call of Duty: Modern Warfare II Call of Duty: Modern Warfare II $60-80/unit $60-$80/unit © 2009 Moxie Insight. All Rights Reserved. 3 Copyright nGenera 2009
  • 4. Who are these people? © 2009 Moxie Insight. All Rights Reserved. 4 Copyright nGenera 2009
  • 5. The numbers Frequency Daily Weekly Monthly Less All 21% 28% 27% 20% Gender 18-29 20% 30% 30% 16% Men 55% 30-49 20% 26% 25% 24% Women 50% 50-64 19% 30% 25% 24% Age 65+ 36% 28% 17% 14% Source: Pew Internet & American Life Project Survey, October-December 2007. n=1063 total adults, 18-29 81% margin of error is +/-3% 30-49 60% 50-64 40% 65+ 23% Household Income <$30,000 52% $30,000 - $49,999 59% $50,000 - $74,999 62% >$75,000 56% Source: Pew Internet & American Life Project Survey, October-December 2007. n=2054 total adults, margin of error is +/-2% © 2009 Moxie Insight. All Rights Reserved. 5 Copyright nGenera 2009
  • 6. Spore (Maxis) Games are their own worlds People invest a lot (!) of time in these worlds Successful games are successful for a reason Best games share common design principles Gamers are likely to play the best games We can therefore talk about the “gaming experience” 6 Copyright nGenera 2009
  • 7. Games have their own logic So does the organization! In games, this logic is explicitly and implicitly taught to the player Very specific rules and criteria must be met to win Winning is always the goal Gamers are therefore predisposed to following rules The games have to teach the gamers how to play and win Let’s look at an example of an entire game that’s a tutorial, Portal © 2009 Moxie Insight. All Rights Reserved. 7 Copyright nGenera 2009
  • 9. Wired explaining Portal Games teaching gamers Present obstacle Introduce skill Confirm competence Increase challenge Combine & summarize Add to toolbox © 2009 Moxie Insight. All Rights Reserved. 9 Copyright nGenera 2009
  • 10. Plants vs. Zombies (PopCap), GTA3 (Rockstar), NBA 2K10 (Visual Concepts) Legend of Zelda: OoT (Nintendo), Starcraft 2 (Blizzard), Homeworld (Relic) © 2009 Moxie Insight. All Rights Reserved. 10 Copyright nGenera 2009
  • 11. Team Fortress 2 (Valve Software) Optimize the fun Gamers are playing to win Other gamers are means to victory Camp, bait, exploit, hack How do you encourage supportive behavior? Games generate lots of perfect data Leads to “local optimization” and “optimal strategies” Few strategies are better than being the fastest 11 Copyright nGenera 2009
  • 12. Team Fortress 2 (Valve Software) © 2009 Moxie Insight. All Rights Reserved. 12 Copyright nGenera 2009
  • 13. Bioshock (2K) © 2009 Moxie Insight. All Rights Reserved. 13 Copyright nGenera 2009
  • 14. Despair Incorporated Gamers fail often Failure is a core dynamic for all games Gamers want to win, just not too easily Failures resets strategies Encourage new solutions & skills Attempted in quick succession Results in a fearless, iterative approach Skills are mastered through repetition Example: Braid © 2009 Moxie Insight. All Rights Reserved. 14 Copyright nGenera 2009
  • 17. Counter-Strike & Half-Life 2 (Valve Software) Beyond the final boss Counter-Strike HL2DQ © 2009 Moxie Insight. All Rights Reserved. 17 Copyright nGenera 2009
  • 18. Core takeaways Gamers are self-interested (maybe even lazy) Gamers have a need for speed Gamers demand engagement Gamers experiment (and fail) readily © 2009 Moxie Insight. All Rights Reserved. 18 Copyright nGenera 2009
  • 19. Gamers are self-interested Managers Marketers Clearly define tasks and Help them win, and you win too “completion conditions” Don’t distract, annoy, Explain the bigger picture or detract from the experience Make altruism a system trait Appeal to their vanity Beware of a “peers as resources” mentality © 2009 Moxie Insight. All Rights Reserved. 19 Copyright nGenera 2009
  • 20. Gamers have a need for speed Managers Marketers Give them urgent projects Target them carefully Beware the tension between Be respectful of their time and speed and velocity succinct with your message Expect frustration in response Give them an edge to slow peers, processes, and systems Present tasks in series © 2009 Moxie Insight. All Rights Reserved. 20 Copyright nGenera 2009
  • 21. Gamers demand engagement Managers Marketers They are predisposed to Create engaging, meaningful following rules consumer experiences Carefully open up feedback data Extend virtual experiences into the physical world Draw clear links between behaviors and results Extend physical experiences into virtual worlds Recognize wins publicly Offer “context aware” products Give them a trophy case © 2009 Moxie Insight. All Rights Reserved. 21 Copyright nGenera 2009
  • 22. Gamers experiment readily Managers Marketers Set the scope and context Understand the core dynamics of how games work They’re not afraid to fail, but failure isn’t always “no biggie” Create campaigns that show gamers that you understand Clearly specify what tools can their shared experience (or can’t) be used when solving problems Experiment yourself © 2009 Moxie Insight. All Rights Reserved. 22 Copyright nGenera 2009
  • 23. Related research Gamers as employees and customers, January 2010, by Jeff DeChambeau Valve Software: Engaging prosumers, competitors, and communities, November 2009, by Jeff DeChambeau The Art of Warcraft - Leadership, Metrics, Design and Business Intelligence for the Collaborative Enterprise, and Radical Decentralization: Organizational Design, May and June 2009, by Alan Majer Game Time: Marketing Opportunities in Social Gaming, August 2009, by Catherine Thorn © 2009 Moxie Insight. All Rights Reserved. 23 Copyright nGenera 2009