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Innovation Workshop –
Games and Reality
About Me
• Founder of Jivy Group, a development house for
startups and Playful Shark, an Israeli game development
studio
• Advisor & Mentor for startups
• Teacher: Beit Berl, Kibbutzim Seminar, TAU
• PhD student: STS @ Bar Ilan
• Active & founding member in GameIS
Blog: www.dudipeles.com, Mail: dudipeles@gmail.com
The next 4 hours
1.5 hours - listen
10 minutes break
1 hour - work on games ideas
10 minutes break
1.5 hours – idea battle
10 minutes – listen (and get your homework)
Mission 0 - Think
• I’m going to talk for an 1.5 hours, while I’m
talking your mission is to write anything that
pops in your head
• It is recommended to use a pencil and paper
Games and Realty
For years game developers had a dream – make games more and more realistic. Some of the first games didn’t have graphics at all…
But gradually, games stated to have more and more complex spaces
Leaving leas space for imagination. Becoming more realistic
On of the most important technologies that turned games to more realistic was 3d
Even 5 years ago environments graphics (like cites and jungles) were very close to real life environments
Modern games look so realistic its hard to know if it’s a photo or a game
In today's games face excretions are becoming more and realistic as well
This dream is now finally a reality
http://allthingsd.com/20130617/confirmed-oculus-vr-raises-16-million-series-a-for-virtual-reality-gaming/
The chase over realism does not end with making the ultimate illusion - For years we are using real tools
1972
We are using our identity
We are using our body
We are using our fingers
We are using our location (Ingress - as of May 2013 there were about 500,000 players globally)
We are embedding game mechanics in things that are not games
This chase of reality creates opportunities. This workshop is about finding them and allowing them to evolve. Before we start working we need
to get to know the market
The “Traditional” Games Industry
The industry is very traditional
• Mario was in more then 200 games
• Successful new IP is very rare
• Home console game price didn’t change in 30 years
2008 was the most profitable year in video games ever
• 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 size world wide was $55B
5 companies dominate 85% of the market. Less then
sixth of the marked is divided between tens of
thousands of companies
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%
next-comes-what-die-consoles-the-http://www.slideshare.net/bcousins/when
The New Game Industry
The biggest video games companies 2012
• Nintendo valued $17.7B (was $61.7B in
2008) (today $15.5B)
• Activision $13.3B (today $16.2B)
• Zynga $9.8B (today $2.6B)
• Gree $7.1B (today $1.9B)
• Nexon $6.3B (today $5B)
New companies that entered the
games in the past few years
New types of Platforms
1972 - 1997
1972 1977 1982 1989
1998 - 2010
200? 2004
2006
20011998 2000
2007 2008 2008 2010
New Evolving Platforms
OUYA
• Ouya was a kick starter project that wanted to
raised $950K.
• It got to it’s goal in 9 hours and eventually
raised $8.5M
Inflation of sub-industries
• First 25 years – 4 platforms types
• Next 15 years – +10 platform types
0
2
4
6
8
10
12
14
16
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
What caused the inflation?
Facebook - Games and real Identity
Facebook
By the end of 2007
there were 7,000
apps in Facebook.
Today there are
over 400,000.
most are games
2004 – founded
2006 – opened to the public
May 2007 – opened Facebook platform to the
public
July 2007
June 2009
December 2010
April 2008
At first most games made money from ads. Eventually virtual currency became the main revenue stream
The Social Games Industry
• A bit less then half of the world that is in
social networks is in Facebook.
• Zynga makes 5 times more then any social
games company in Facebook
Important Genres
• Casino
• Farming
• Puzzle
• Hidden objects
• Strategy (mid-core)
• RPG (mid-core)
More Games
And even more
Mobile - Games and real location
The iPhone
• June 2007 – The first iPhone
• July 2008 – Apple launches the
app store
• 500 apps on launch
• Most of them games, most cost
$10.
• By the end of 2009, 30M iPhones were sold.
At the end of that year Angry Birds was
published
Angry birds was sold 12m copies of its original version, and was downloaded more the 1.7 billion times over all platforms
revenue/-in-euros-million-152-make-only-you-and-downloads-billion-7-1/04/2013http://www.gamesbrief.com/
The iPhone
Price Drop
• Sales charts led to a
price drop
• Today most games are
sold in $0.99
More games
Feb 2011
6.5M
Apr 2010
6M
Apr 2009
15M
Oct 2010
3M in first months
New Business Model
Aug 2011
15M
Jun 2012Feb 2012
50M in 50 days
Dec 2011
Most games gradually became free with a virtual
currency revenue model
Only 2 out of the 40 most
profitable games are paid
The iPhone Games Industry
• In 2010 there were games sold in the app store
in about $1B. In 2012 it was $3B.
• Apple is the most dominate company, it charges
30% of each sale
• More then 100,000 registered app developers
Android
• World wide there are more then 3 Android
based phones for each iPhone.
• An average iPhone player
spends 5 times more the
an android player
• In US 84% of smart phone
games were from iOS
phones
-still-apple-shows-research-/new05/05/2012http://www.forbes.com/sites/johngaudiosi/
android/-against-war-game-video-the-winning
Games and physical world
Tablets
• Mid 2010 – first version for the iPad
• Currently the most common tablet, with close
to 150M units sold.
Disky
A new game
experience that was
not relevant in
older platforms
Connected toys
Games for change
Education
Military
Health
Advertisement
Gamification
Not Game at all – Technology
The practical part (reality)
As long as there are new platforms there are new opportunities.
Mission 1 – You (5 minuets)
• What is your purpose in life? What do you
want to change in the world ? What do you
want to do that will make you, your mom and
your children proud?
• Write it down in 50 words
Say something
Change something
Make Money
Mission 2 - the ideas (20 minuets)
• The most important thing about an initial idea is
that it will be something you will love to do
• Find a partner, share your “purpose in life”.
• Read to each other things you wrote during the
presentation
• Think of 3 great ideas for a games or games
startups
• Write up to 50 words describing essence of each
idea
• Find a picture in Google images that can
represent the idea
• If you have a dream to develop a game
as a child now is the time to share it
• Get inspired by looking up old video
games and old toys
Example
Spaceship Taki: A multiplayer card game in which each
card used by a player sends a spaceship to a 2d fighting
arena, in it the spaceships fight automatically. The
player can only choose cards before the game starts
and pick a card in his turn which ship to send.
Mission 3 - Platform & Business
Model (10 minuets)
• Find the most suitable platform for your idea.
• Find the main business model that will allow
your game to earn money.
• Update the 50 words description to include
the platform and business model.
Business Models
• Virtual Currency
• Paid
• Ad Supported
• B2B vs B2C
Example
Spaceship Taki: A multiplayer card game in which each
card used by a player sends a spaceship to a 2d fighting
arena, in it the spaceships fight automatically. The
player can only choose cards before the game starts
and pick a card in his turn which ship to send.
Platform: Mobile Devices
(Facebook connectivity)
Business Model: sell cards
using virtual currency
Mission 4 - The Player (10 minutes)
• Who is going to play your game or use your
startup? Who is going to pay for your game?
• Think of age, gender & country
Example
Spaceship Taki: A multiplayer card game in which each
card used by a player sends a spaceship to a 2d fighting
arena, in it the spaceships fight automatically. The
player can only choose cards before the game starts
and pick a card in his turn which ship to send.
Platform: Mobile Devices
(Facebook connectivity)
Business Model: sell cards
using virtual currency
Players: 12-35, Mostly
boys, Western
Mission 5 – Pick 2 (5 minutes)
• Pick the 2 ideas you like best and has the most
potential.
• Mentally attach a card to each idea you picked
• Ideas without a card are out of the game
Mission 6 - Idea battle (90 minutes)
Battle Rules
• 2 random ideas are chosen
• each idea is pitched (max 1 minute)
• We vote, you can vote for only one of the
ideas.
• The winning idea gets to keep the losing idea
card/ cards (increasing his chance of being
chosen in the next ballets)
• If an idea that was pitched is chosen again you
get 1 minute to elaborate – it’s not mandatory
Let the games begin
• While others fight, try to listen and improve
your surviving ideas.
And the winner is…
What now?
Not only the winner can continue to the next stage.
Here is an extra life for everyone
Choose your path
Prototype Business Plan
You’ll need to do both anyhow…
The Israeli Industry
Israeli Video Games Industry
• Technology and startups
• Influence and connection to the online gambling
industry
• Limited infrastructure (business wise and
educational)
• Boosting in the past 2 years
• Constitute an official body that nurtures
the local community.
• Serve as an official representative with
institutional, commercial, academic, and
media entities.
• To represent the local industry to
international community.
‫לקבוצה‬ ‫להירשם‬ ‫מומלץ‬ ‫מאוד‬‫ב‬-Facebook‫באתר‬ ‫ולהתעדכן‬
http://www.facebook.com/groups/GameISGroup/|http://gameis.org.il/
Major events in Israel
Your Homework
Answer these 3 questions:
1. Describe one idea for a game or a startup in details
including: detailed pitch, platform, business model,
players (you can choose your idea or any other idea that
was presented in class).
2. Was the idea you choose successful in the “idea battle”?
Why? Analyze the idea and its relative success.
3. Find at least 3 games or startups that can be called
competitors (or “inspiration”). Describe the differences
your idea and it’s competitors focusing on your
advantages.
Homework answer recommended length: 4 pages
Answers should be sent to ominskya@gmail.com and dudipeles@gmail.com
Last day for submission: 1/8/2013
Mail subject should be: [Your Full Name] - Innovation Workshop – Games and Reality

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Innovation Workshop –Games and Reality

  • 2. About Me • Founder of Jivy Group, a development house for startups and Playful Shark, an Israeli game development studio • Advisor & Mentor for startups • Teacher: Beit Berl, Kibbutzim Seminar, TAU • PhD student: STS @ Bar Ilan • Active & founding member in GameIS Blog: www.dudipeles.com, Mail: dudipeles@gmail.com
  • 3. The next 4 hours 1.5 hours - listen 10 minutes break 1 hour - work on games ideas 10 minutes break 1.5 hours – idea battle 10 minutes – listen (and get your homework)
  • 4. Mission 0 - Think • I’m going to talk for an 1.5 hours, while I’m talking your mission is to write anything that pops in your head • It is recommended to use a pencil and paper
  • 6. For years game developers had a dream – make games more and more realistic. Some of the first games didn’t have graphics at all…
  • 7. But gradually, games stated to have more and more complex spaces
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.
  • 19. Leaving leas space for imagination. Becoming more realistic
  • 20.
  • 21.
  • 22. On of the most important technologies that turned games to more realistic was 3d
  • 23.
  • 24.
  • 25.
  • 26.
  • 27. Even 5 years ago environments graphics (like cites and jungles) were very close to real life environments
  • 28.
  • 29. Modern games look so realistic its hard to know if it’s a photo or a game
  • 30. In today's games face excretions are becoming more and realistic as well
  • 31. This dream is now finally a reality
  • 33. The chase over realism does not end with making the ultimate illusion - For years we are using real tools
  • 34. 1972
  • 35.
  • 36.
  • 37. We are using our identity
  • 38. We are using our body
  • 39.
  • 40.
  • 41.
  • 42. We are using our fingers
  • 43. We are using our location (Ingress - as of May 2013 there were about 500,000 players globally)
  • 44. We are embedding game mechanics in things that are not games
  • 45. This chase of reality creates opportunities. This workshop is about finding them and allowing them to evolve. Before we start working we need to get to know the market
  • 47. The industry is very traditional • Mario was in more then 200 games • Successful new IP is very rare • Home console game price didn’t change in 30 years
  • 48. 2008 was the most profitable year in video games ever
  • 49. • 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 size world wide was $55B 5 companies dominate 85% of the market. Less then sixth of the marked is divided between tens of thousands of companies
  • 50. 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% next-comes-what-die-consoles-the-http://www.slideshare.net/bcousins/when
  • 51. The New Game Industry
  • 52. The biggest video games companies 2012 • Nintendo valued $17.7B (was $61.7B in 2008) (today $15.5B) • Activision $13.3B (today $16.2B) • Zynga $9.8B (today $2.6B) • Gree $7.1B (today $1.9B) • Nexon $6.3B (today $5B)
  • 53. New companies that entered the games in the past few years
  • 54. New types of Platforms
  • 55. 1972 - 1997 1972 1977 1982 1989
  • 56. 1998 - 2010 200? 2004 2006 20011998 2000 2007 2008 2008 2010
  • 58. OUYA • Ouya was a kick starter project that wanted to raised $950K. • It got to it’s goal in 9 hours and eventually raised $8.5M
  • 59. Inflation of sub-industries • First 25 years – 4 platforms types • Next 15 years – +10 platform types 0 2 4 6 8 10 12 14 16 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
  • 60. What caused the inflation?
  • 61. Facebook - Games and real Identity
  • 62. Facebook By the end of 2007 there were 7,000 apps in Facebook. Today there are over 400,000. most are games 2004 – founded 2006 – opened to the public May 2007 – opened Facebook platform to the public
  • 65. At first most games made money from ads. Eventually virtual currency became the main revenue stream
  • 66. The Social Games Industry • A bit less then half of the world that is in social networks is in Facebook. • Zynga makes 5 times more then any social games company in Facebook
  • 67. Important Genres • Casino • Farming • Puzzle • Hidden objects • Strategy (mid-core) • RPG (mid-core)
  • 70. Mobile - Games and real location
  • 71. The iPhone • June 2007 – The first iPhone • July 2008 – Apple launches the app store • 500 apps on launch • Most of them games, most cost $10.
  • 72. • By the end of 2009, 30M iPhones were sold. At the end of that year Angry Birds was published Angry birds was sold 12m copies of its original version, and was downloaded more the 1.7 billion times over all platforms revenue/-in-euros-million-152-make-only-you-and-downloads-billion-7-1/04/2013http://www.gamesbrief.com/ The iPhone
  • 73. Price Drop • Sales charts led to a price drop • Today most games are sold in $0.99
  • 74. More games Feb 2011 6.5M Apr 2010 6M Apr 2009 15M Oct 2010 3M in first months
  • 75. New Business Model Aug 2011 15M Jun 2012Feb 2012 50M in 50 days Dec 2011 Most games gradually became free with a virtual currency revenue model
  • 76. Only 2 out of the 40 most profitable games are paid
  • 77. The iPhone Games Industry • In 2010 there were games sold in the app store in about $1B. In 2012 it was $3B. • Apple is the most dominate company, it charges 30% of each sale • More then 100,000 registered app developers
  • 78. Android • World wide there are more then 3 Android based phones for each iPhone. • An average iPhone player spends 5 times more the an android player • In US 84% of smart phone games were from iOS phones -still-apple-shows-research-/new05/05/2012http://www.forbes.com/sites/johngaudiosi/ android/-against-war-game-video-the-winning
  • 79.
  • 81. Tablets • Mid 2010 – first version for the iPad • Currently the most common tablet, with close to 150M units sold.
  • 82. Disky A new game experience that was not relevant in older platforms
  • 84.
  • 85.
  • 92.
  • 93. Not Game at all – Technology
  • 94.
  • 95. The practical part (reality)
  • 96. As long as there are new platforms there are new opportunities.
  • 97. Mission 1 – You (5 minuets) • What is your purpose in life? What do you want to change in the world ? What do you want to do that will make you, your mom and your children proud? • Write it down in 50 words
  • 101. Mission 2 - the ideas (20 minuets) • The most important thing about an initial idea is that it will be something you will love to do • Find a partner, share your “purpose in life”. • Read to each other things you wrote during the presentation • Think of 3 great ideas for a games or games startups • Write up to 50 words describing essence of each idea • Find a picture in Google images that can represent the idea
  • 102. • If you have a dream to develop a game as a child now is the time to share it • Get inspired by looking up old video games and old toys
  • 103. Example Spaceship Taki: A multiplayer card game in which each card used by a player sends a spaceship to a 2d fighting arena, in it the spaceships fight automatically. The player can only choose cards before the game starts and pick a card in his turn which ship to send.
  • 104. Mission 3 - Platform & Business Model (10 minuets) • Find the most suitable platform for your idea. • Find the main business model that will allow your game to earn money. • Update the 50 words description to include the platform and business model.
  • 105. Business Models • Virtual Currency • Paid • Ad Supported • B2B vs B2C
  • 106. Example Spaceship Taki: A multiplayer card game in which each card used by a player sends a spaceship to a 2d fighting arena, in it the spaceships fight automatically. The player can only choose cards before the game starts and pick a card in his turn which ship to send. Platform: Mobile Devices (Facebook connectivity) Business Model: sell cards using virtual currency
  • 107. Mission 4 - The Player (10 minutes) • Who is going to play your game or use your startup? Who is going to pay for your game? • Think of age, gender & country
  • 108. Example Spaceship Taki: A multiplayer card game in which each card used by a player sends a spaceship to a 2d fighting arena, in it the spaceships fight automatically. The player can only choose cards before the game starts and pick a card in his turn which ship to send. Platform: Mobile Devices (Facebook connectivity) Business Model: sell cards using virtual currency Players: 12-35, Mostly boys, Western
  • 109. Mission 5 – Pick 2 (5 minutes) • Pick the 2 ideas you like best and has the most potential. • Mentally attach a card to each idea you picked • Ideas without a card are out of the game
  • 110. Mission 6 - Idea battle (90 minutes)
  • 111. Battle Rules • 2 random ideas are chosen • each idea is pitched (max 1 minute) • We vote, you can vote for only one of the ideas. • The winning idea gets to keep the losing idea card/ cards (increasing his chance of being chosen in the next ballets) • If an idea that was pitched is chosen again you get 1 minute to elaborate – it’s not mandatory
  • 112. Let the games begin • While others fight, try to listen and improve your surviving ideas.
  • 113. And the winner is… What now? Not only the winner can continue to the next stage. Here is an extra life for everyone
  • 114. Choose your path Prototype Business Plan You’ll need to do both anyhow…
  • 116. Israeli Video Games Industry • Technology and startups • Influence and connection to the online gambling industry • Limited infrastructure (business wise and educational) • Boosting in the past 2 years
  • 117.
  • 118. • Constitute an official body that nurtures the local community. • Serve as an official representative with institutional, commercial, academic, and media entities. • To represent the local industry to international community. ‫לקבוצה‬ ‫להירשם‬ ‫מומלץ‬ ‫מאוד‬‫ב‬-Facebook‫באתר‬ ‫ולהתעדכן‬ http://www.facebook.com/groups/GameISGroup/|http://gameis.org.il/
  • 119. Major events in Israel
  • 120. Your Homework Answer these 3 questions: 1. Describe one idea for a game or a startup in details including: detailed pitch, platform, business model, players (you can choose your idea or any other idea that was presented in class). 2. Was the idea you choose successful in the “idea battle”? Why? Analyze the idea and its relative success. 3. Find at least 3 games or startups that can be called competitors (or “inspiration”). Describe the differences your idea and it’s competitors focusing on your advantages. Homework answer recommended length: 4 pages Answers should be sent to ominskya@gmail.com and dudipeles@gmail.com Last day for submission: 1/8/2013 Mail subject should be: [Your Full Name] - Innovation Workshop – Games and Reality