Moving form Physically Consumer Products to Digi-Physi Consumer Products
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A lecture I gave in late 2017 @LeadWith (https://www.facebook.com/LeadWith/) about the changing world we are living in, and what it can learn form changes that already happened in the video games industry.
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Moving form Physically Consumer Products to Digi-Physi Consumer Products
- 1. Moving form Physically Consumer Products to Digi- Physi Consumer Products or What can we learn from the video games industry about consumer product industries?
- 2. Dudi Peles • Father (with a baby) • CEO & Founder of Makeree • Founder of Jivy Group, a private entrepreneurial group focused on funding and building startups • Teacher at IDC, Kibbutzim Seminar, TAU • Active & founding member in GameIS, Games For Peace
- 3. The internet brings change
- 4. Some industries have already changed radically
- 6. And some are only starting to change…
- 9. Services are changing faster then things
- 16. You can buy all of them online, but is that really a disruptive change?
- 17. Let’s talk about Video Games
- 18. Video games are consumer products, but they are not only physical, they are half physical and half digital…
- 19. The video games industry have felt this change, earlier and more powerful then may other industries
- 23. In 1992 it was clear video games are not just toys
- 24. http://vgsales.wikia.com/wiki/Video_game_industry It was a $28 billion industry that was booming
- 25. In 1993 the “World wide web” turns to be public domain
- 29. 1996 - $44 Billion
- 30. Games become bigger… - 2001 - $35 Billion
- 31. …and bigger. 2008 - $68 Billion
- 32. •Nintendo – 16.7 Billion •Sony Computer Entertainment – 14.0 Billion •Microsoft Entertainment Device Division – 8.2 Billion •Electronic Arts – 4.2 Billion •Activision Blizzard - 3.0 Billion In 2008 video games market was at a peak But 5 companies dominate 70% of the market.
- 33. 2008-2012 – Some Numbers •NASDAQ: +25% •EA Stock: -61% •Activision Blizzard Stock: -33% •Xbox Division in Microsoft lifetime loss $7.8B •Play Station Division in Sony lifetime loss $3B •Nintendo Stock: -71% http://www.slideshare.net/bcousins/when-the-consoles-die-what-comes-next
- 34. The biggest video games companies 2012 •Nintendo valued $17.7B (was $61.7B in 2008) •Activision $13.3B •Zynga $9.8B •Gree $7.1B •Nexon $6.3B
- 35. What happened?
- 37. 2001
- 38. 2007
- 39. 2008
- 40. 2008
- 41. 2010
- 44. 2011: EA buys Popcap for $1.3B 2016: Activision Blizzard buys King for $5.9B 2016: Tencent buys Supercell for $10.2B
- 45. 2017
- 46. New platforms led to new opportunities, traditional companies were not able to take advantage of
- 48. Developed by a team of over 1,000 people for over 4 years, with an investment of $265M
- 49. A game like GTA 4 is produced using the same methodology physical consumer products are created. Requirements / Analysis Design Implementation / Construction Verification / Testing Deployment Maintenance
- 50. While small games for the new platforms were developed more like startups
- 52. To close the cycle you need Data
- 53. Clash Royale was updated 30 times in 2 years
- 55. Lets go back to the traditional industries
- 56. Some of the obvious changes have already happened
- 57. But manufacturing is still done like this Requirements / Analysis Design Implementation / Construction Verification / Testing Deployment Maintenance
- 63. Not all products can or will be connected
- 64. How do you close the cycle for non connected products?
- 71. There is no more “Traditional industries”, they are all changing, and with this change comes opportunity