an (unexpected) journey through the history of video game business models not featuring gandalf
DESCRIPTION
Lecture from the Quo Vadis conference in Berlin April 2013 (DGT13). Trying to summarize the history of different business models in the past to see wether history will repeat itself.TRANSCRIPT
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ital d
istr
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tion
An (unexpected) journey through the history of Video game business models…
• Who am I?• History of B2C business models• Status Quo / Challenges• Outlook
1997 Jan Okt1998
Jul2000
Apr2002
Jan2004
Okt2005
Jul2007
Apr2009
Jan2011 2012/13
1/8/20041/1/1997
Retail business:PC / console
Online/ Mobile Games
Spacewars!
Mainframes
Home computer
Arcades
Consoles
Mobile
(Smart-)PhonesOnline
Streaming
Mobile consoles
Tablets
Pinball (2000)
A short history
1961
1979
1987
[Buchtipp] „Masters of Doom“ http://amzn.to/10qtGFW1993
1993/95
1995 – 2004
1996
"What was so shocking to me was that Windows was the second highest usage application in the U.S. The number one application was Doom," N. explained. To him, this was a revelation. "It was a 12-person company in the suburbs of Texas that didn't even distribute through retail, it distributed through bulletin boards and other pre-Internet mechanisms ... Microsoft was hiring 500-people sales teams and this entire company was 12 people, yet it [id Software] had created the most widely distributed software in the world."
2004
2013
http://de.wikipedia.org/wiki/Videospiel
Spacewars!
Mainframes
Home computer
Arcades
Consoles
Mobile
(Smart-)PhonesOnline
Streaming
Mobile consoles
Tablets
Pinball (2000)No commercial use
Shareware,Retail
No commercial use
19321947
1972
1975
1976
1976
2002
2004
2006
2009
2012
Spacewars!
Mainframes
Home computer
Arcades
Consoles
Mobile
(Smart-)PhonesOnline
Streaming
Mobile consoles
Tablets
Pinball (2000)Pay per play
RetailPay per play
No commercial use
Shareware,Retail
Dig. Distrubtion,Free-to-play
No commercial use
1997 2000+
1997
1997 2000+
2000+
2003
2007
2009
2011
Source: Flurry
Spacewars!
Mainframes
Home computer
Arcades
Consoles
Mobile
(Smart-)PhonesOnline
Streaming
Mobile consoles
Tablets
Pinball (2000)Pay per play
RetailPay per play
No commercial use
Shareware,Retail
Dig. distribution(Retail)
Dig. distributionFree-to-play
Dig. distributionFree-to-play
Retail
<1996 [Buchempfehlung] Dungeons and Desktops http://amzn.to/17gA7Qb
6 $/h !!!!!1!!!!11!!111!!!elf
1997
2004
2004
2005 ( - 2012)
2009
2008 / 2009
2010
Spacewars!
Mainframes
Home computer
Arcades
Consoles
Mobile
(Smart-)PhonesOnline
Streaming
Mobile consoles
Tablets
Pinball (2000)Pay per play
RetailPay per play
No commercial use
Shareware,Retail
Dig. distribution(Retail)
Dig. distributionFree-to-play
Dig. distributionFree-to-play
SubscriptionDig. Distribution
Dig. DistributionSubscriptionFree-to-play
No commercial use
• Who am I?• History of B2C business models• Status Quo / Challenges• Outlook
Sell-in
Sell-through
Publishing
Pitch B2B
B2C
PR/ Marketing
The classical value chain
Today: Chaos!
• Retail (Assassins Creed X, CoD X, etc.)• Digital Distribution (Steam)• In-Game Advertising (Fifa)• Advertgames (Americas Army) • “Try Before you Buy” / Trialware /
Shareware,• Episodic Entertainment (Telltale),• Skill-Based Progressive Jackpots
(Poker),• Subscription Model (WoW)• Micro-Transactions (Travian, etc.),• Sponsored Games / Donationware
(serious games, games for good, charity games),
• Pay per play / Pay as you go / Pay for Time,
• Player to Player trading of Virtual Items (Steam Trading),
• Sell Access to your Players (like lead generation, special offers etc.),
• Freeware (get lots of users), • Loss Leader (focus on your real goal),• Peripheral Enticement (Skylanders), • Player to Player Wagering (GameDuell), • User Generated Content (letting users
make endless new content),• Pay for service (Storage, Private server,
Cloud stats: CoD Elite, Minecraft Realms),
• Rental,• Merchandise (Angry Birds),• Pre-Sell the Game to the Players (Prison
Architect, Minecraft).
Overview of business models
Source: David Perry on Gamedesign
Be aware of the future
• Who am I?• History of B2C business models• Status Quo / Challenges• Outlook / Quo Vadis
What´s next?
Overview
Mar
ket g
row
th ra
te
Relative market share
Hig
hLo
w
LowHigh
DogsCash Cows
?Stars
RetailSharewareSubscriptions
Digital DistributionMicro-TransactionsPeripheral EnticementMerchandise
Episodic EntertainmentGamblingPay per PlayUser Generated ContentGames as a servicePre-sellIngame-Advertising
AdvertgamesSponsored GamesSell Player DataRental
Do your homework!
Care about the audience first!
More options than ever!
The panacea !?
Remember!
Thanks for your time!
@Indie_advisor
de.linkedin.com/in/andrebernhardt/
All Book recommendations: http://bit.ly/14zdgkb