The document discusses the importance of innovation in computer games, focusing on product innovation, opportunity recognition, and the ideation process. It highlights the historical evolution of gaming, trends such as user-generated content, and challenges facing developers in a rapidly changing market. Key takeaways include the necessity of timely market entry, user adoption for financial success, and the significance of strategic planning in innovation.

1. Innovation in Computer Games DTU, November 2008

2. Innovation in Computer Games DTU, November 2008 SO – what’s going to happen today? Innovation in general main focus on product innovation, opportunity recognition and ideation Innovation in Games understanding the product Analysis and experiences further product understanding and examples Short summary in the end what’s worth remembering? Questions? whenever you feel like it…

3. Innovation in Computer Games DTU, November 2008 Personal introduction Jeppe Møller Game Producer Guppyworks – Tween Girl MMO, PC (current) ZeitGuyz Game Developers – Action Adventure, AAA Pollux Gamelabs – 4x space strategy, PC Little Computer People – Episodic Adventure MSc IT, from the IT University of Copenhagen Master thesis on ‘Innovation in Computer Games – Strategies for Success’ Contact M . Jeppe Gmail . Com www.linkedin.com/in/jeppemoller

4. Innovation in Computer Games DTU, November 2008 Innovation is… A new angel to reach new users and a new use of the product (e.g.. Nintendo Wii, Bacardi Breezer) Advantage through new wrapping (e.g.. iPod Shuffle, milk-in-a-bag) A new recipe on the existing product (main focus for today) (e.g. Ben & Jerry’s Ice Cream, Action-RPG games) New technology for the product (e.g.. Cameras in mobiles, ice cubes from the fridge) Opening to a new market (e.g. Laptop 4 everyone) New marketing to sell the product (James Bond and Vodka)

5. Innovation in Computer Games DTU, November 2008 Value chain Focus on how game developers can create value for the consumer/end user through product innovation

6. Innovation in Computer Games DTU, November 2008 Definitions for today… what makes a product innovative? ‘ Product innovation’ = something experienced as new for the end user - in comparison to similar products on the market. Potentially a success for the developer. ‘ Adoption’ = user embracement of products ‘ Success ’ = money in the bank to create more products and stay in business Innovation ≠ just a good idea or a brand new product

7. Innovation in Computer Games DTU, November 2008 Examples of failed innovations – or Hell on wheels Price, timing, demand…

8. Innovation in Computer Games DTU, November 2008 Where does innovation come from? Radical vs. incremental innovation Mind vs. Market Art vs. Design Risk vs. Conservatism Revolution vs. Evolution Radical Innovation is taking a ’Leap of Faith’

9. Innovation in Computer Games DTU, November 2008 Opportunity recognition and evalution process Pros and cons in methods for ideation and evaluation (a brief touch) Development methods - Stage Gate, Agile/Scrum and consumer behavior in the idea evaluation advantages and pit falls. How can this affect the innovation process?

10. Innovation in Computer Games DTU, November 2008 Technologies that drive computer game innovation Understanding these technologies helps identifying the opportunity. (will differ from product category to product category) ‘ Gameplay’ is the recipe for the product - and how the technologies are put to use.

11. Innovation in Computer Games DTU, November 2008 Computer games – a historical viewpoint The early years – Universities and research, 1946-1967 Tic-tac-toe , Tennis for Two, Space wars Arcade Halls , 1967 - 1979 PONG, more Space wars Home Invasion 1975 - 1984 Pacman & Space Invaders The Golden Age 1982 - 1992 C64, Amiga, home gaming The New Dimension 1992 - 1999 Wolfenstein/Doom, (Myst) – Home PC, 3D The Net! 1997 + Ultima Online, online worlds ‘ Next’ Gen, 2005 + Consoles, communities, user generated content, new users

12. Innovation in Computer Games DTU, November 2008 Innovation life cycle From a helicopter perspective, the historical changes can be visualized like this. It’s important that a company can react to market changes to survive in the long term.

13. Innovation in Computer Games DTU, November 2008 Console life cycle Current trends and when to react A typical production time for games can easily be as much as 3 years When to reach the market? PC vs console development steady progress vs large steps in technology. The user experience of these two platforms is different.

14. Innovation in Computer Games DTU, November 2008 Moore’s Law “ The number of transistors that can be placed inexpensively on an integrated circuit will increase exponentially, doubling approximately every two years” As technology evolves, new products will see the day But as new technology is expected – can anything be a revolution? Opportunity recognition from new technology development Vs. Opportunity recognition within the current technology Basically it’s a choice.

15. Innovation in Computer Games DTU, November 2008 Examples 1 – from the Danish game industry Risk management Difference in new to the developer/ new to the market

16. Innovation in Computer Games DTU, November 2008 Examples 2 – Own experiences Personal examples – from ZeitGuyz to Guppyworks From hardcore to casual gamers From console to PC online New for the company + new to the market? Already doing the risk? Doubling it means less… User experience of the two games – radical or incremental innovation? Recoil, ZeitGuyz Game Developers, 2008. GuppyLife, Guppyworks, 2008.

17. Innovation in Computer Games DTU, November 2008 Current trends User generated content So-called casual players Communities Going mobile COPE What the coming years can bring Company mergers fewer but larger fish in the sea Quality bar will be raised eventually killing more companies Re-use of existing designs incremental innovation is interpreted as ’safe area’ (and for new users will even old games feel new) Shorter time-to-market & cut the middle man - online games XBLA, PS3 ’Home’, WiiWare, PC Download Channels,

18. Innovation in Computer Games DTU, November 2008 Key Challenges for Game Developers in the Future The entry level continues to increase each year. Gfx, complexity, high end platforms Rising development cost but not a comparable rise in income! Asia is a rising star and do not care about western consoles Opportunities Finding unvisited markets Radical innovations Episodic gaming, web solutions Openings for new products on web browser, handhelds, XBLA, Steam or other… But for how long? and who will be the first to take the next big leap?

19. Innovation in Computer Games DTU, November 2008 Summary Time to market is crucial User adoption is a must to create financial success Design is cheap, production is expensive – fail more and often! (what a paradox for startup companies…) Strategic planning is important – foresight of the future even time will kill excellent ideas

20. Innovation in Computer Games DTU, November 2008 Readings Cooper, Robert G. Winning at New Products – Accelerating the Process from Idea to Launch (Third Edition). Perseus Publishing, Cambridge, Massachusetts. 2001 Franklin, Carl. Why Innovation Fails. Spiro Press, 2003. Goldenberg, Jacob & Mazursky, David. Creativity in Product Innovation.Cambridge University Press,2002. Rogers, Everett M. Diffusion of Innovation (5th edition). Free Press, New York, 2003. Smith, Roger. Game Impact Theory: The Five Forces That Are Driving the Adoption of Game Technologies within Multiple Established Industries. 2006. http://www.ctonet.org/documents/SmithR_GameImpactTheory.pdf Sonja Kangas – The first 15 Years of Girl Games. souplala.net/show/girlgames_first15years.pdf 11 Innovation Lessons from the Creators of World of Warcraft http://innovation.freedomblogging.com/2008/04/04/11-innovation-lessons-from-creators-of-world-of-warcraft/ En erhvervsøkonomisk analyse af fire fokusområder i de kulturelle erhverv. 2000. Kulturministeriet, Danmark. Intel Innovation. Moore’s Law. http://www.intel.com/technology/mooreslaw/index.htm Managing Creativity and Innovation. Harvard Business School Publishing Corporation, 2003. Innovation i computerspil – strategier for succes (Master thesis) . http://www.itu.dk/people/jeppem/Innovation%20i%20computerspil%20-%20FINAL2.pdf

21. Innovation in Computer Games DTU, November 2008 Questions?