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- The World of Entertainment Redefined
Let the game begin…




               NEW GAME
CAREER MODE
Trip Hawkins
•     Born on Dec 28, 1953
•     Nationality : American
•     Alma mater: Strategy and applied game theory at
      Harvard University
•     B- School - Stanford
•     Known for: Founding Electronic Arts and founding
      3DO
•     Awards: Hall of Fame by the Academy of
      Interactive Arts and Sciences

    Traits:
    • Promotes multi cultural environment
    • Flat organizational structure
    • Promoted creativity
    • Wants people to take ownership
    • Updated with industry trends
600 unique titles and millions of games sold
        200 million dollars revenue




                               In 1982
Founded 3DO in 1991


Designed devices with video and audio features
  $599 price tag was considered expensive
Launching …
Energy, Inn
ovation, Ex
cellence, In
tegrity, Ow
  nership
Exploring Options for Acquisition

• Reduced
cost of
operations
•Mature
telecom
market
• English
speaking
workforce
3 year old Finnish
        company,
        Developed mobile games,
        high quality game titles ,
        existing relationship with
        leading Cell phone
        carriers,
        Broad geographic
        distribution
Sumea   – Core set of game developers in
          organization
        – English speaking multicultural staff
Illka Paananen
 • Sumea’s CEO
 • Age: 26
 • Alma Mater: Industrial
   management at Helsinki
   University of Technology


Repercussions in 2006
• Finland Team grew from 25 to 150
• Games were good but cost was high
• DC successfully raised a loan of 43.8
  million dollars and it became
  profitable for the first time
More Acquisitions

• In 2007 they acquired Small
  Device, Bangalore based company
  –Multi device adaptability
Small Device - Dikshant Dave

 • English speaking college
   graduates
 • Mature understanding of
   capitalism
 • Blend well with west
 • Inexpensive

 • Responsibility : Adapting games
   to work on all devices.
More Acquisitions
 • Acquired Creative
   development team in
   Barcelona, Spain (cater
   to Spanish speaking
   markets) – energetic,
   young creative and
   passionate
Journey with iPhone
• 2008 : iPhone entry
  Initial Phase : Apple gave more airtime for applications than
  games
  Perceived to be similar to Social Media
  Initial Hesitation
• 2009 : launched 5 games
  April 2009 3 of the first 4 games made it to No1 on the download
  charts
  July 2009, all the games were being made both for iPhone and
  standard platforms
  Redirected resources to the iPhone game development team.
Social Gaming
Lets take a Step
Back and see the
    Options
1   Acquisition


2   Social Gaming Office


3   Social Gaming Team
ACQUISITION
                               Merge with a start-up
                         Winner of several social gaming titles



Benefits                                     Drawbacks
•   Quick solution                           •   Expensive
•   Grow expertise                           •   Synergy
•   Build new relationships                  •   Culture differences
•   Globalization/Expansion                  •   Strategic errors
•   Attract developers
•   Successful experience
SOCIAL GAMING OFFICE
         Have a single office location for Social Gaming game developments
                    Considering San Mateo as the office location



Benefits                                  Drawbacks
•   Decision makers hub                   •   Demotivation
•   Dedicated team                        •   Expensive
•   Synergy                               •   High Attrition rate
•   Increase in productivity
•   Geographical proximity to the
    cutting edge developers
SOCIAL GAMING TEAM
               Forming tracks of group of employees at each location
                       A social gaming team of volunteers



Benefits                                  Drawbacks
•   Personal interest                     •   Tedious process
•   Motivated employees                   •   Knowledge transfer
•   Appeal to global customer base        •   Coordination issues
•   No demotivation
Mobile Gaming
  Industry
Business Overview
• 2009 Gaming industry estimate at US$34 billion

• Split across Asia, Europe and the United States

• Target customers are “hardcore gamers” and “omni gamers” (convenience gamers)

• Mobile games generated US$5.4 billion in 2008

• Predicted to reach US$10 by 2013

• Major rivals – Electronic Arts, Gameloft, Namco, Glu Mobile, Oberon Media.

• Cumulatively generates 70% of worldwide revenue
Game Distribution
• Present games to wireless carriers months before release

• Carriers choose games and present it on download listings

• Thousands of platform devices available

• Digital chocolate covered 1500 of the most popular devices

• Built relationships with major carriers to gain visibility

• Compensated according to number of downloads and negotiated revenue share
  agreement

• Fees received 30-90 days after downloaded

• No reliable feedback provided
Through Consumer
Marketplaces
• Mid 2008 – launch of Apple’s App Store
• Gains access to tens of millions of preset Apple App accounts
• Launch of Google Android Market, RIM/Blackberry (App
  World), Nokia (Ovi)
• More difficult payment procedure
• Different systems (operating, touch and swipe features)
• Predicted to gain proper presence by 2010
Our Take !!!
Game Development Process
       Creativity Model


            Ideation


     Consolidation (YDC ?)


     Planning for innovation


       Commercialization
Analysis
           • Fall in efficiency
             (no.) &
             effectiveness
             (quality)

           • Loosing focus

           • Inadequate
             competency for
             Social Games
Recommendation
                 Current Situation


           Increase capacity of skilled developers


      Initiate creative game development in Bangalore


                   Increase productivity


           Idea and game development contests


Increase development work for other platforms (Android/RIM)
Recommendation
                      Social Gaming


       Form few tracks of group of volunteering employees


        Increase capacity with related skilled developers


  Wait and watch for an opportunity to acquire the correct firm


Acquire a firm with correct technical capability and cultural blend


Merge the operations of the acquired firm and social gaming team
Open for Questions

Open for
Questions

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The World of Entertainment Redefined: Let the Game Begin

  • 1. - The World of Entertainment Redefined
  • 2. Let the game begin… NEW GAME
  • 4.
  • 5. Trip Hawkins • Born on Dec 28, 1953 • Nationality : American • Alma mater: Strategy and applied game theory at Harvard University • B- School - Stanford • Known for: Founding Electronic Arts and founding 3DO • Awards: Hall of Fame by the Academy of Interactive Arts and Sciences Traits: • Promotes multi cultural environment • Flat organizational structure • Promoted creativity • Wants people to take ownership • Updated with industry trends
  • 6. 600 unique titles and millions of games sold 200 million dollars revenue In 1982
  • 7. Founded 3DO in 1991 Designed devices with video and audio features $599 price tag was considered expensive
  • 9. Energy, Inn ovation, Ex cellence, In tegrity, Ow nership
  • 10. Exploring Options for Acquisition • Reduced cost of operations •Mature telecom market • English speaking workforce
  • 11. 3 year old Finnish company, Developed mobile games, high quality game titles , existing relationship with leading Cell phone carriers, Broad geographic distribution Sumea – Core set of game developers in organization – English speaking multicultural staff
  • 12. Illka Paananen • Sumea’s CEO • Age: 26 • Alma Mater: Industrial management at Helsinki University of Technology Repercussions in 2006 • Finland Team grew from 25 to 150 • Games were good but cost was high • DC successfully raised a loan of 43.8 million dollars and it became profitable for the first time
  • 13. More Acquisitions • In 2007 they acquired Small Device, Bangalore based company –Multi device adaptability
  • 14. Small Device - Dikshant Dave • English speaking college graduates • Mature understanding of capitalism • Blend well with west • Inexpensive • Responsibility : Adapting games to work on all devices.
  • 15. More Acquisitions • Acquired Creative development team in Barcelona, Spain (cater to Spanish speaking markets) – energetic, young creative and passionate
  • 16. Journey with iPhone • 2008 : iPhone entry Initial Phase : Apple gave more airtime for applications than games Perceived to be similar to Social Media Initial Hesitation • 2009 : launched 5 games April 2009 3 of the first 4 games made it to No1 on the download charts July 2009, all the games were being made both for iPhone and standard platforms Redirected resources to the iPhone game development team.
  • 18. Lets take a Step Back and see the Options
  • 19. 1 Acquisition 2 Social Gaming Office 3 Social Gaming Team
  • 20. ACQUISITION Merge with a start-up Winner of several social gaming titles Benefits Drawbacks • Quick solution • Expensive • Grow expertise • Synergy • Build new relationships • Culture differences • Globalization/Expansion • Strategic errors • Attract developers • Successful experience
  • 21. SOCIAL GAMING OFFICE Have a single office location for Social Gaming game developments Considering San Mateo as the office location Benefits Drawbacks • Decision makers hub • Demotivation • Dedicated team • Expensive • Synergy • High Attrition rate • Increase in productivity • Geographical proximity to the cutting edge developers
  • 22. SOCIAL GAMING TEAM Forming tracks of group of employees at each location A social gaming team of volunteers Benefits Drawbacks • Personal interest • Tedious process • Motivated employees • Knowledge transfer • Appeal to global customer base • Coordination issues • No demotivation
  • 23. Mobile Gaming Industry
  • 24. Business Overview • 2009 Gaming industry estimate at US$34 billion • Split across Asia, Europe and the United States • Target customers are “hardcore gamers” and “omni gamers” (convenience gamers) • Mobile games generated US$5.4 billion in 2008 • Predicted to reach US$10 by 2013 • Major rivals – Electronic Arts, Gameloft, Namco, Glu Mobile, Oberon Media. • Cumulatively generates 70% of worldwide revenue
  • 25. Game Distribution • Present games to wireless carriers months before release • Carriers choose games and present it on download listings • Thousands of platform devices available • Digital chocolate covered 1500 of the most popular devices • Built relationships with major carriers to gain visibility • Compensated according to number of downloads and negotiated revenue share agreement • Fees received 30-90 days after downloaded • No reliable feedback provided
  • 26. Through Consumer Marketplaces • Mid 2008 – launch of Apple’s App Store • Gains access to tens of millions of preset Apple App accounts • Launch of Google Android Market, RIM/Blackberry (App World), Nokia (Ovi) • More difficult payment procedure • Different systems (operating, touch and swipe features) • Predicted to gain proper presence by 2010
  • 28. Game Development Process Creativity Model Ideation Consolidation (YDC ?) Planning for innovation Commercialization
  • 29. Analysis • Fall in efficiency (no.) & effectiveness (quality) • Loosing focus • Inadequate competency for Social Games
  • 30. Recommendation Current Situation Increase capacity of skilled developers Initiate creative game development in Bangalore Increase productivity Idea and game development contests Increase development work for other platforms (Android/RIM)
  • 31. Recommendation Social Gaming Form few tracks of group of volunteering employees Increase capacity with related skilled developers Wait and watch for an opportunity to acquire the correct firm Acquire a firm with correct technical capability and cultural blend Merge the operations of the acquired firm and social gaming team
  • 32. Open for Questions Open for Questions

Editor's Notes

  1. 6 months per gameIndustry average : less than 4 months