A timeline of videogames distribution

1. Distribution How do the games companies get their games to the gamers?

9. OnLive, if successful could change the games industry structure from this: Developer – Publisher – Console Manufacturer – Retailer - Consumer TO Developer – Publisher – OnLive – Consumer OR EVEN Developer – OnLive - Consumer

10. OnLive Case Study watch the demo here: The new distribution system for videogames – an attempt to dethrone the console makers as the game industry's kings. This is currently a brand-new technology due for release in America next month, but could this company hold the key to a new technology that will catch the console makers off guard?

17. OnLive’s business model requires the consumer to pay a $15 a month subscription and pay for the games on top of that. OnLive’s competitor Gaikai doesn’t require a subscription fee – just make a one off payment for the game. It also differs as users don’t have to go to a specific portal to access the content, instead demos can be access through banner adds through normal web browsers. The idea is to allow publishers of console games to get the same widespread access and distribution to consumers as ‘social games’. Here’s a Gaikai demo from this year Games Developer Conference

18. Social Gaming leads the way in digital distribution as the whole experience exist in the online world. What is unique about this distribution model is that most of the ‘exchange’ – the money for product - happens after the consumer has got the product. Farmville – is free to play then you pay for items once you’re hooked. These are micro-transactions – small payments that are easy to make, almost forgettable. The power is that social games use existing social networks, for instance Playfish’s Who Had The Biggest Brain? uses Facebook Connect For Iphone that automatically connects you to your Facebook friends who also play the same game.

19. This Social Games distribution model is one step along from Apple’s I-Store as that is still paying upfront for a product which you then own. Also Social Gaming has the added advantage of already being on a social network therefore viral marketing will come organically and naturally. Games are becoming less of solitary experience and more of a social experience – so you play against friends rather than the ‘computer’ or AI. So you need communities to play these games. Sony. Microsoft and Nintendo are trying to build online communities with their online services while Zynga (Farmville) and Playfish (Pet Society) are using existing online communities (Facebook). The Distribution model will change depending on where your consumer are. So in the future the distribution structure could look like this: Developer – Facebook - Consumer