Ending strategysummary2

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Ending strategysummary2

  1. 1. What future changes will affect the insurgents and incumbents? Will it be a fight to the death?<br />Let’s meet the challengers!<br />
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  3. 3. A Few Social and Economic Catalysts of Change<br />Market growth will be focused in emerging economies. <br />Free to play, pay as you go, games like Farmville will fit better in emerging markets. Many will have never touched a console and will play their first game on Facebook.<br />Aging populations in high income countries. <br />In many countries, the future involves more older gamers who are more likely to play games like Farmville than Call of Duty.<br />
  4. 4. What about future disruptive technologies?<br />In emerging economies, mobile devices will be a dominant computing platform. <br />Mobile devices are likely to work better with social games. Big budget games benefit from cutting edge graphics and large tv screens.<br />3D television and motion control still exciting and new. <br />Both new 3D technology and Wii-style motion control favor the traditional big-budget business model.<br />
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  6. 6. What should the Incumbents do?<br />Invest in social gaming as a diversification strategy. <br />For example, Electronic Arts acquired Playfish.<br />Tie-in blockbuster game releases with social game sister-products.<br />This leverages strong brands in the social gaming space.<br />Cater to older and non-traditional gamers.<br />This was the key strategy of the Wii, allowing them to compete for casual gamers who would otherwise play social games. <br />
  7. 7. What should the Insurgents’ strategy be?<br />Fundamentals of the business model are sound. <br />Smaller budget games, microtransitions, the “fast follow” model of copying and outdoing innovative games is a strong path forward. <br />Focus on games that serve emerging markets.<br />Social games are positioned to capture much of the growth in gaming in these new markets.<br />Diversify onto other mobile and PC platforms.<br />Facebook still has a huge influence over companies like Zynga. Moving social games onto other platforms reduces the power of Facebook over Zynga.<br />
  8. 8. In conclusion…<br />Social games are bound to take market share in the near future, largely due to emerging markets. <br />But they will not replace traditional games. <br />Publishers following the traditional model must enter the social gaming market themselves in a big way to risk losing out on that growth.<br />

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