Thursday, March 12, 2009
LUDONOMIC
      S                    THE GAME ECONOMY
                           GUEST LECTURE   NDD EXPERTISE DAY




   ...
ERIK HEKMAN
           1. RESEARCH GROUP CROSSMEDIA CONTENT;
           BUSINESS MODELS AND POLICY NEW MEDIA -
           ...
CONTENT
         - 1. USER-GENERATED VIDEO GAME CONTENT
               2. VIDEO GAME BUSINESS MODELS




Thursday, March 1...
GAMES GAMES GAMES
                             I WANT TO HAVE A GOOD TIME


                                       ‣ Early...
USER-GENERATED
                                            WAS ALWAYS THERE

                           Excitebike      Th...
USER-GENERATED
                                      MY ALL TIME FAVORITE
                           Stunts




     ‣ Her...
USER-GENERATED
                           THE COMMUNITY WILL FIND A WAY

                                Doom




     ‣ H...
USER-GENERATED
                                       THE COMMUNITY WILL FIND A WAY

                           Half Life ...
USER-GENERATED
                                     THE COMMUNITY WILL FIND A WAY

                           Quake 3     ...
NOW UGGC IS HOT
                                      A TREND IN GAMES


      SUPER! BUT WHAT IS THE BIG DEAL?
        LE...
THE VIDEO GAME INDUSTRY
                                                       THE OLD SITUATION




                     ...
VIDEO GAME BUSINESS MODELS
                                             WE TELL YOU WHAT TO PLAY

                        ...
VIDEO GAME BUSINESS MODELS
                           WE TELL YOU WHAT TO PLAY




Thursday, March 12, 2009
THE VIDEO GAME INDUSTRY
                                                  THE CURRENT SITUATION




                      ...
THE VIDEO GAME INDUSTRY
                                                  THE CURRENT SITUATION




                      ...
VIDEO GAME BUSINESS MODELS
                                                                 ADVERTISE WITH US

           ...
VIDEO GAME BUSINESS MODELS
                           ADVERTISE WITH US




Thursday, March 12, 2009
VIDEO GAME BUSINESS MODELS
                           POLITICAL ISSUES




Thursday, March 12, 2009
VIDEO GAME BUSINESS MODELS
                           BRANDED GAMES




Thursday, March 12, 2009
VIDEO GAME BUSINESS MODELS
                           BRANDED GAMES




Thursday, March 12, 2009
VIDEO GAME BUSINESS MODELS
               SUCCESFULL RELATION VIDEO GAME AND MOVIE




Thursday, March 12, 2009
VIDEO GAME BUSINESS MODELS
                           AND VICE VERSA




Thursday, March 12, 2009
VIDEO GAME BUSINESS MODELS
                           SOME LESS SUCCESFULL




Thursday, March 12, 2009
THE VIDEO GAME INDUSTRY
                                                 THEN INTERNET CAME ALONG




                    ...
THE VIDEO GAME INDUSTRY
                                                 THEN INTERNET CAME ALONG




                    ...
THE VIDEO GAME INDUSTRY
                                                          THE BIG CHANGE




                     ...
THE VIDEO GAME INDUSTRY
                           LET’S FOCUS ON THE GAME DISTRIBUTION...


                             ...
THE VIDEO GAME INDUSTRY
                           AND ON THE MANAGEMENT & PACKAGING



                                  ...
UGGC: NEW POSSIBILITIES
                                                      MULTIPLAY
                           Left 4 ...
UGGC: NEW POSSIBILITIES
                                      STATISTICS SHARING




                                     ...
UGGC: NEW POSSIBILITIES
                             EXTRA CONTENT CREATION/SHARING



                                   ...
B


                           UGGC: NEW POSSIBILITIES
                               CHARACTER CREATION/SHARING
         ...
UGGC: NEW POSSIBILITIES
                                   LEVEL CREATION/SHARING




                                    ...
VIDEO GAME BUSINESS MODELS
                               ALL YOUR CONTENT ARE BELONG TO US

                             ...
UTOPIA?
                              TROUBLE IN PARADISE


              WHOLE CHANGE LOOKS LIKE THE
                   S...
UGGC
                           FREE RIDERS

Thursday, March 12, 2009
FREE RIDERS PROBLEM
                Free riders are actors who consume more
                   than their fair share of a ...
1% creators


                                    9% incidental creators




                           UG(G)C         90%...
CENSORING THE CONTENT
                               WHO’S CONTENT IS IT ANYWAY?


        ± 84,000 individual Users have ...
MODERATING THE CONTENT
                                    SPORE + PORN = SPORN




Thursday, March 12, 2009
DIGITAL HARRASEMENT
                                          LEGAL ISSUES?

                                  Times of Lo...
TWILIGHT ZONE
                           DIGITAL AND ANALOGUE WORLDS COLLIDE


                                         TH...
TWILIGHT ZONE
                           DIGITAL AND ANALOGUE WORLDS COLLIDE


                                         TH...
THE MARKET PLACE
                             NEW DIGITAL ECONOMIES




Thursday, March 12, 2009
BLACK MARKETS
                           NEW DIGITAL ECONOMIES




Thursday, March 12, 2009
VIDEO GAME BUSINESS MODELS
                                                                           THE NEW SITUATION

 ...
USER-GENERATED
            GAMES

Thursday, March 12, 2009
THE VIDEO GAME INDUSTRY
                                          WE CAN CREATE GAMES TOO!




                           ...
THE VIDEO GAME INDUSTRY
                                            EXAMPLES




                                         ...
THE VIDEO GAME INDUSTRY
                                            EXAMPLES




Thursday, March 12, 2009
THE VIDEO GAME INDUSTRY
                                           USERS CONTROL THE CHAIN




                           ...
THE VIDEO GAME INDUSTRY
                                           USERS CONTROL THE CHAIN




                           ...
THE VIDEO GAME INDUSTRY
                                      THE BUSINESS MODELS

       ‣    Retail
       ‣    Digital ...
THE VIDEO GAME INDUSTRY
                                          FREE GAMES?




Thursday, March 12, 2009
THE VIDEO GAME INDUSTRY
                                          FREE GAMES?




Thursday, March 12, 2009
FOOD FOR THOUGHT
                                            CLOSING QUESTIONS

                        EMPTY SHELLS?
    ...
THANK YOU



                           erik.hekman@hu.nl | www.kudonomics.com

Thursday, March 12, 2009
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Ludonomics - The Game Economy

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A presentation about user-generated content in video games, the change in de media change, implications and a brief look at the business models related to this.

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  • Ludonomics - The Game Economy

    1. 1. Thursday, March 12, 2009
    2. 2. LUDONOMIC S THE GAME ECONOMY GUEST LECTURE NDD EXPERTISE DAY [ insert coin ] Thursday, March 12, 2009
    3. 3. ERIK HEKMAN 1. RESEARCH GROUP CROSSMEDIA CONTENT; BUSINESS MODELS AND POLICY NEW MEDIA - WWW.CROSSMEDIALAB.NL 2. LECTURER DIGITAL COMMUNICATION AT UNIVERSITY OF APPLIED SCIENCES UTRECHT 3. WWW.KUDONOMICS.COM Thursday, March 12, 2009
    4. 4. CONTENT - 1. USER-GENERATED VIDEO GAME CONTENT 2. VIDEO GAME BUSINESS MODELS Thursday, March 12, 2009
    5. 5. GAMES GAMES GAMES I WANT TO HAVE A GOOD TIME ‣ Early as 1958 ‣ Console ‣ PC ‣ Diverse market ‣ Some interesting changes Thursday, March 12, 2009
    6. 6. USER-GENERATED WAS ALWAYS THERE Excitebike The Incredible Machine Thursday, March 12, 2009
    7. 7. USER-GENERATED MY ALL TIME FAVORITE Stunts ‣ Here we see games providing the tools in order to create content. Sharing through i.e. disks. ‣ How about games without the tools? Thursday, March 12, 2009
    8. 8. USER-GENERATED THE COMMUNITY WILL FIND A WAY Doom ‣ Homebrew level editors Thursday, March 12, 2009
    9. 9. USER-GENERATED THE COMMUNITY WILL FIND A WAY Half Life Counter strike ‣ Game mods Thursday, March 12, 2009
    10. 10. USER-GENERATED THE COMMUNITY WILL FIND A WAY Quake 3 Dragon Ball Z Bid For Power ‣ Game mods Thursday, March 12, 2009
    11. 11. NOW UGGC IS HOT A TREND IN GAMES SUPER! BUT WHAT IS THE BIG DEAL? LET’S LOOK AT THE MEDIA CHAIN GAME BEFORE WE HEAD OVER TO THE PRESENT CASES Thursday, March 12, 2009
    12. 12. THE VIDEO GAME INDUSTRY THE OLD SITUATION Game Game Game Game Management Creation Distribution Consumption & Packaging ‣ Disks ‣ ‣ Nintendo Nintendo ‣ Cardridges ‣ ‣ SEGA SEGA ‣ CD ‣ ‣ Atari Atari ‣ ‣ Westwood Westwood ‣ ‣ Blizzard Blizzard Thursday, March 12, 2009
    13. 13. VIDEO GAME BUSINESS MODELS WE TELL YOU WHAT TO PLAY Video Game Publisher Creator $ Video Game Pay $ for game Gamers Thursday, March 12, 2009
    14. 14. VIDEO GAME BUSINESS MODELS WE TELL YOU WHAT TO PLAY Thursday, March 12, 2009
    15. 15. THE VIDEO GAME INDUSTRY THE CURRENT SITUATION Game Game Game Game Management Creation Distribution Consumption & Packaging ‣ Disks ‣ ‣ Nintendo Konami ‣ Cardridges ‣ ‣ Sony Ubisoft ‣ CD/DVD ‣ ‣ Microsoft SEGA ‣ Internet ‣ ‣ Blizzard EA ‣ Blizzard Thursday, March 12, 2009
    16. 16. THE VIDEO GAME INDUSTRY THE CURRENT SITUATION Game Game Game Game Management Creation Distribution Consumption & Packaging ‣ Disks ‣ ‣ Nintendo Konami ‣ Cardridges ‣ ‣ Sony Ubisoft ‣ CD/DVD ‣ ‣ Microsoft SEGA ‣ Internet ‣ ‣ Blizzard EA ‣ Blizzard Thursday, March 12, 2009
    17. 17. VIDEO GAME BUSINESS MODELS ADVERTISE WITH US Video Game Publisher Creator $ $ Video Game $ Big media buy display advertisement $ Pay $ for game Gamers Thursday, March 12, 2009
    18. 18. VIDEO GAME BUSINESS MODELS ADVERTISE WITH US Thursday, March 12, 2009
    19. 19. VIDEO GAME BUSINESS MODELS POLITICAL ISSUES Thursday, March 12, 2009
    20. 20. VIDEO GAME BUSINESS MODELS BRANDED GAMES Thursday, March 12, 2009
    21. 21. VIDEO GAME BUSINESS MODELS BRANDED GAMES Thursday, March 12, 2009
    22. 22. VIDEO GAME BUSINESS MODELS SUCCESFULL RELATION VIDEO GAME AND MOVIE Thursday, March 12, 2009
    23. 23. VIDEO GAME BUSINESS MODELS AND VICE VERSA Thursday, March 12, 2009
    24. 24. VIDEO GAME BUSINESS MODELS SOME LESS SUCCESFULL Thursday, March 12, 2009
    25. 25. THE VIDEO GAME INDUSTRY THEN INTERNET CAME ALONG Game Game Game Game Management Creation Distribution Consumption & Packaging ‣ DVD ‣ Blizzard ‣ World of ‣ Internet Warcraft ‣ DVD ‣ Little Big Planet ‣ Sony ‣ Internet ‣ DVD ‣ Maxis ‣ Spore ‣ Internet Thursday, March 12, 2009
    26. 26. THE VIDEO GAME INDUSTRY THEN INTERNET CAME ALONG Game Game Game Game Management Creation Distribution Consumption & Packaging ‣ DVD ‣ Blizzard ‣ World of ‣ Internet Warcraft ‣ DVD ‣ Little Big Planet ‣ Sony ‣ Internet ‣ DVD ‣ Maxis ‣ Spore ‣ Internet Thursday, March 12, 2009
    27. 27. THE VIDEO GAME INDUSTRY THE BIG CHANGE Game Game Game Game Management Creation Distribution Consumption & Packaging Thursday, March 12, 2009
    28. 28. THE VIDEO GAME INDUSTRY LET’S FOCUS ON THE GAME DISTRIBUTION... ‣ Internet as an important distribution channel ‣ Consoles and games starting to rely on it Game Distribution ‣ Multiplay, demos, statistics and other game content ‣ The whole chain is controlled by companies. Thursday, March 12, 2009
    29. 29. THE VIDEO GAME INDUSTRY AND ON THE MANAGEMENT & PACKAGING ‣ Tools are being given to the audience ‣ Tools to meet others, create and Game Management share characters, levels and other & Packaging content ‣ Same as the social media revolution Thursday, March 12, 2009
    30. 30. UGGC: NEW POSSIBILITIES MULTIPLAY Left 4 dead World of Warcraft Thursday, March 12, 2009
    31. 31. UGGC: NEW POSSIBILITIES STATISTICS SHARING Mario Kart Beautiful Katemari Thursday, March 12, 2009
    32. 32. UGGC: NEW POSSIBILITIES EXTRA CONTENT CREATION/SHARING The Sims 2 Body Shop Second Life Thursday, March 12, 2009
    33. 33. B UGGC: NEW POSSIBILITIES CHARACTER CREATION/SHARING Spore Mii Characters Little Big Planet Thursday, March 12, 2009
    34. 34. UGGC: NEW POSSIBILITIES LEVEL CREATION/SHARING Boom Blox Little Big Planet Thursday, March 12, 2009
    35. 35. VIDEO GAME BUSINESS MODELS ALL YOUR CONTENT ARE BELONG TO US Video Game Publisher Creator $ $ Video Game $ Big media buy display Content creators advertisement $ Pay $ for game Gamers Thursday, March 12, 2009
    36. 36. UTOPIA? TROUBLE IN PARADISE WHOLE CHANGE LOOKS LIKE THE SOCIAL MEDIA REVOLUTION WITH THE SAME PROBLEMS Thursday, March 12, 2009
    37. 37. UGGC FREE RIDERS Thursday, March 12, 2009
    38. 38. FREE RIDERS PROBLEM Free riders are actors who consume more than their fair share of a resource, or shoulder less than a fair share of the costs of its production. The free rider problem is the question of how to prevent free riding from taking place, or at least limit its negative effects. Thursday, March 12, 2009
    39. 39. 1% creators 9% incidental creators UG(G)C 90% free riders Thursday, March 12, 2009
    40. 40. CENSORING THE CONTENT WHO’S CONTENT IS IT ANYWAY? ± 84,000 individual Users have spent days building custom worlds, including tributes to classic games and characters such as Final Fantasy, Pac-Man, Batman, Sonic The Hedgehog, God Of War, Super Mario Bros and Indiana Jones. Thursday, March 12, 2009
    41. 41. MODERATING THE CONTENT SPORE + PORN = SPORN Thursday, March 12, 2009
    42. 42. DIGITAL HARRASEMENT LEGAL ISSUES? Times of London Article: Police in Britain, Belgium and the Netherlands are considering whether users of “Second Life” may be committing a crime if their character — known as an avatar — sexually assaults or stalks another. Thursday, March 12, 2009
    43. 43. TWILIGHT ZONE DIGITAL AND ANALOGUE WORLDS COLLIDE THE MAPLESTORY MURDER CASE - JAPAN A lady who married a man virtually in the popular massively multiplayer game MapleStory was so furious at him unilaterally divorcing her that she logged in using his details and deleted him. Police then arrested her for unauthorised access to his account. Thursday, March 12, 2009
    44. 44. TWILIGHT ZONE DIGITAL AND ANALOGUE WORLDS COLLIDE THE HABBO HOTEL HEIST - THE NETHERLANDS A Dutch teenager has been arrested for allegedly stealing virtual furniture from quot;roomsquot; in Habbo Hotel, a 3D social networking website. The 17-year-old is accused of stealing 4,000 euros (£2,840) worth of virtual furniture, bought with real money. Thursday, March 12, 2009
    45. 45. THE MARKET PLACE NEW DIGITAL ECONOMIES Thursday, March 12, 2009
    46. 46. BLACK MARKETS NEW DIGITAL ECONOMIES Thursday, March 12, 2009
    47. 47. VIDEO GAME BUSINESS MODELS THE NEW SITUATION Video Game Publisher Creator $ $ Video Game $ Big media buy Game & content $ display creators Revenue advertisement Sharing $ Pay $ for game & content Gamers Thursday, March 12, 2009
    48. 48. USER-GENERATED GAMES Thursday, March 12, 2009
    49. 49. THE VIDEO GAME INDUSTRY WE CAN CREATE GAMES TOO! Game Game Game Game Management Creation Distribution Consumption & Packaging ‣ Not only video games provide tools ‣ Flash, Game makers, XNA, etc ‣ Internet as distribution thus access to audience ‣ iPhone Goldrush Thursday, March 12, 2009
    50. 50. THE VIDEO GAME INDUSTRY EXAMPLES World of Goo iShoot Thursday, March 12, 2009
    51. 51. THE VIDEO GAME INDUSTRY EXAMPLES Thursday, March 12, 2009
    52. 52. THE VIDEO GAME INDUSTRY USERS CONTROL THE CHAIN Game Game Game Game Management Creation Distribution Consumption & Packaging ‣ Instead of the industry controlling the chain ‣ Users have become a very important part of it ‣ The industry has to adapt Thursday, March 12, 2009
    53. 53. THE VIDEO GAME INDUSTRY USERS CONTROL THE CHAIN Game Game Game Game Management Creation Distribution Consumption & Packaging ‣ Instead of the industry controlling the chain ‣ Users have become a very important part of it ‣ The industry has to adapt Thursday, March 12, 2009
    54. 54. THE VIDEO GAME INDUSTRY THE BUSINESS MODELS ‣ Retail ‣ Digital distribution ‣ In-Game ‣ Around-Game Advertising ‣ Advertgames ‣ Try before you buy (demos) ‣ Pro Accounts ‣ Subscription model ‣ Sponsored games ‣ Pay per play ‣ Freeware ‣ User-generated game content Thursday, March 12, 2009
    55. 55. THE VIDEO GAME INDUSTRY FREE GAMES? Thursday, March 12, 2009
    56. 56. THE VIDEO GAME INDUSTRY FREE GAMES? Thursday, March 12, 2009
    57. 57. FOOD FOR THOUGHT CLOSING QUESTIONS EMPTY SHELLS? CROSS MEDIA? HOW CAN THE INDUSTRY ADAPT? HOW ABOUT QUALITY CONTROL? ONLY ECONOMICAL VALUE CREATION? HOW ABOUT DEMOCRATIC, SOCIAL AND CULTURAL VALUE? Thursday, March 12, 2009
    58. 58. THANK YOU erik.hekman@hu.nl | www.kudonomics.com Thursday, March 12, 2009

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