“serious games, serious play” research study: “where are the opportunities?” by michael cai...
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Michael Cai talks about “Serious Games, Serious Play” Research Study: “Where Are the Opportunities?” at Serious Games Conference 2012 ABSTRACT: This presentation aims to help define the nascent serious games industry and identify key opportunities and challenges. Research findings are based on in-depth interviews with more than 30 thought leaders, worldwide. Key discussion points include the following: • The overall landscape of the serious games industry • Growth dynamics in different industry segments • Market opportunities and challenges in various sectors • Cost for developing serious games • How the industry is currently addressing measurement and effectivenessTRANSCRIPT
Serious Games, Serious Play
An Industry Overview
Presented by:
Michael CaiVP Research, Games and
Technology at Interpret
August 22, 2012
Key Discussion Points Overall landscape of the serious games
industry Growth dynamics in different industry
segments Market opportunities and challenges in
various sectors Cost for developing serious games How the industry is currently addressing
measurement and effectiveness
Methodology
Study Specifications
Survey Methods Telephone interview & E-mail survey
Timing July/August 2012
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Study Participants
Interviews with ExpertsAt least 10+ years in industry
Hold positions such as:
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Sector Composition
The experts’ experience covers all the major categories
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Defining the Market
The Serious Games Landscape
Defining ‘Serious Games’
Common Themes:
However…
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Defining ‘Serious Games’
“There’s a tech answer and a marketing answer.”
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Opportunity Today vs. Three Years Ago
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Acceptance outpacing adoption
Acceptance
Adoption
Serious Games
“I don’t expect an upswing as the industry as a whole is still pretty much in its growth stage, but there has been much greater improvement in the profile.”
Opportunity Today vs. Three Years Ago
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• Stigma of ‘game’ is vanishing
• Gamers getting older
• Traditional ways of training, education not working
• Games seen as valid substitutes
• More powerful technology
• More tools available
Reasons Acceptance is growing:
• The economy
• Growth is niche-specific
• Employers hesitant to spend on the workplace
Opportunity Today vs. Three Years Ago
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Reasons Adoption is falling behind:
Size of Industry in Revenue
“The answer to that question is very elusive, difficult to pin down. It’s hard to
find research on the subject.”
“There are indicators of growth, but it’s difficult to quantify.”
“It’s all about definition. Should Bejeweled count, since it’s known to reduce stress? Or Wii bowling, for all the benefits in nursing
homes.”
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Revenue Generation
Direct
Revenue generated by the game itself
Indirect
Revenue not generated by the
game itself• Grants• B2B contracts• Corporate sponsorship
• Licensing software/ subscriptions
• Microtransactions(in virtual worlds)
• Games for marketing (used as assets to sell something else)
• Sales training (improvement in sales efficacy)
• Process optimization (process efficiencies gained)
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Growth Sectors
Agreement that there is:
Growth inHealthcare
Growth inMilitary
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Growth Sectors
Differing opinions for Education and Corporate
• Games lack production value
• Designers don’t know how to make educational games
• Government/institutional involvement is growing
• More money than ever
• Economy causing frugality• Less likely to spend on innovations such as games
• Game feature usage (leader boards, etc.) growing
• Companies have the budgets
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Growth Trajectory
“Much bigger” in the next 5 years due to:
As gaming becomes the norm, barriers to entry get lower
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More gamersMore platforms
Costs and Timing
The Serious Games Landscape
Average Cost of Game/Sim
HUGE variation depending on sector and sales model
Education
Healthcare
Corporate
Government
$1M$500K$0
Fixed Grants; Phase 1 $90K, Phase 2 $750K
Range $30K-$500K; Average $65K
Subscriptions; Bundles $5K-$10K
Licenses; Per Classroom
~$100
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Average Length of Development TimeFor all sectors, more complexity = more time
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Education
Healthcare
Corporate
Government
3 mos.
6 mos.
3 mos.
2-3 yrs.
Variables Impacting Cost
Complexity Assets
# of Platforms Desired
Music/Audio
Graphics Labor
3D Testing
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Acceleration in Cost?
Some say Yes, some say No
• Level of complexity has increased
• Trying to make things simple actually costs more
• Cost of labor has grown
• More off-the-shelf tools available
• Licenses are cheaper
• Barriers of entry are lower
Yes, making games is more
expensive!
No, making games is getting cheaper.
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Types of Metrics
Industry Challenges
Marketing, Game Development, Measurement
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Getting More Industries and Schools to Use Games to Teach
Consider first:
Position I: Providing Proof
Publishing documentation that serious games do achieve desired training or educational outcomes
Offering evidence of cost effectiveness, particularly in comparison to other methods of training and learning
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Getting More Industries and Schools to Use Games to Teach
Position II: “Stealth Mode”
Removing the stigma associated with the word “games” or taking it out of the name entirely
Hiding “games” within the words “activity” or “learning module”
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Getting More Industries and Schools to Use Games to Teach
Making Games More EffectiveFocus on the end user
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Understand end user
requirements
Appeal to all types of end users
Educate end users
• Avoid being “chocolate-covered broccoli”
• How do people want to play (PvP, PvE, etc.)?
• The game has to make sense to the user
Games vs. Sims vs. Virtual WorldsAnalyze the task/information that needs to be taughtDon’t be afraid to combine!
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“Generally speaking, though, training games need to have a very strong simulation component while mere educational titles may indulge on a more traditional gaming experience.”
Making Games More EffectiveInherent to the game must be:
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Design MechanicsGames need to promote learning through their very mechanics, i.e., the act of playing = learning
Point SystemMust assign points for participation, rewards; giving feedback, motivating, building a relationship
StickinessPay attention to the psychological effects, find out what motivates people to play
Making Games More Effective
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However, the following pose challenges to innovation:
Dearth of Talented Designers“Good developers are usually lured to big studios or become indies… dedicated serious games companies might not find it easy to get the right talent.”
CostsComplex design and realistic simulations are not cheap. Also, some institutions are dependent on government funding.
Making Games More EffectiveAnd the biggest criticism:
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Need for MeasurementAren’t enough tools that are proven to actually measure the effectiveness of a game; progress is slow on that end.
Improving Marketing to Increase Buyer Interest
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Emphasize Outcomes• Market the outcomes being achieved, make the focus of games secondary
Positive Press• Publish more success stories to improve category’s image, show positive side of games
Future Opportunities
Research Inspires… More Research
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The Ideal Trade Group
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Key Questions Raised by Our Experts
What are the
parameters of
the serious
games market?
Is it a
fragment of
something else?
Where do mobile games fit in?
Is one country ahead of the game?
Where do opportunities lie beyond the usual suspects?
Does terminology matter?
THANK YOU!
Useful Links:
www.seriousplayconference.comwww.seriousgamesdirectory.comwww.seriousgamesassociation.com
Contact: