sxsw keynote - the game layer on top of the world

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Seth Priebatsch's SXSW Keynote on the game layer on top of the world.Seth Priebatsch is Chief Ninja of SCVNGR (www.scvngr.com) and their new pilot LevelUp (TheLevelUp.com)

TRANSCRIPT

The Game Layer on Top of the World

Seth Priebatsch Chief Ninja

@SethPriebatsch

TheLevelUp.com scvngr.com

The Game Layer

Social Layer à Connections Last decade All about connections Facebook’s Open Graph Construction is over

The Decade of Games

Game Layer à Influence Next decade All about influence No set foundations Construction has just begun (and we’ll all be involved)

1. School

2. Customer Acquisition

Game Break 1

3. Loyalty

4. LBS à Mainstream

5. Global Warming

Game Break 2

#GameLayer + Questions

What can the game layer do for me?

Schools are near-perfect game ecosystems: • Motivated Players • Challenges • Rewards • Rules • Allies • Enemies • Levels • Appointment Dynamics • Countdowns • Incentives / Disincentives • And on and on and on….

School is a game (just a poorly designed one)

School

Problem Solution

Engagement •  Grading is Broken •  Moral Hazard Of Gameplay

Progression Dynamic •  Status & Levels

Cheating •  Misapplied Disincentives •  Ruins Game Integrity

Social Fabric of Gameplay •  Player <-> Player Trust

2 Problems, 2 Fixes School

Engagement School

Moral Hazard of Gameplay School

“But look how many points I have!” School

Grades Fail As Rewards Status Quo:

-  Grades are simply levels. -  Valedictorians, percentiles, honor students are statuses.

Problem: -  You can lose this game! -  Failing (progressing negatively) is a constant possibility. -  Shouldn’t ever be able to “level-down.” -  A => C or B => C is BAD.

Solution: -  Re-implement grades as a progression dynamic. -  XP++, not a weighted average. -  Focus on the positive end goal, not the negative.

School

One Bad Day

School Right Now School

+10XP

School Meets WoW School

Grades (status) => Levels (progression)

•  Decrease direct correlation of action to reward

•  Focus on final goal, not interim ersatz rewards

•  Increase engagement levels in school.

School

Bad: Cheating School

Disincentives School

Bad

Misapplied Disincentives

Good

School

People At Princeton Don’t Cheat (Most) People At Princeton Don’t Cheat School

The only two rules are •  Write the Honor Code •  Complicity is a Crime

No Oversight = No Cheating? School

•  Change the game •  Move from omnipotent admin to a

self-enforced game.

Social Fabric Of Gameplay School

School’s Out School

Customer Acquisition Customer Acquisition

Dissecting Groupon

Free lunch + Communal Gameplay + Countdown

Customer Acquisition

Free Lunch Customer Acquisition

Communal Gameplay Customer Acquisition

Countdown Customer Acquisition

And that, plus an email list = Groupon Customer Acquisition

GAME #1

Game 1: Practice Makes Perfect

START CLAPPING

NOW CLAP IN SYNC

GREAT JOB!

Loyalty Loyalty

Status (“Hi Norm”) Loyalty

I want that one ’cause it’s black! Loyalty

The “level-up” Loyalty

Inclusive Ownership Loyalty

Exclusive Ownership Loyalty

Inclusive Ownership Loyalty

LBS à Mainstream LBS à Mainstream

Big Partners LBS à Mainstream

0

20

40

60

80

100

120

Foursquare SCVNGR MyTown Shopkick Whrrl Gowalla

Valuation Raised

Big Money LBS à Mainstream

0

10000

20000

30000

40000

50000

60000

70000

80000

Valuation Raised

Big Money + Facebook LBS à Mainstream

0

20

40

60

80

100

120

Foursquare SCVNGR MyTown Shopkick Whrrl Gowalla

Valuation Raised

Big Money LBS à Mainstream

Social LBS Users

Using Social LBS People In This Room Everyone Else

Big Partners + Big Money = Big Results…

…Right?

LBS à Mainstream

Quantitative Easing (Loosen The Rules) LBS à Mainstream

Tightly V. Loosely Location-Based

Strictly Location Based Loosely Location Based

LBS à Mainstream

“Beware the jabberwock, the jub-jub bird, and the moral hazard of gameplay”

- Lewis Caroll (kind of)

Reward Schedules LBS à Mainstream

0

50000

100000

150000

200000

250000

12/6/2010 1/6/2011 2/6/2011 3/6/2011

Challenges Visits

Rewards launched

Critical mass of players reached

Rewards Work! Buffalo Wild Wings Locations

LBS à Mainstream

Facebook + Gap = Ok, I’ll Check In LBS à Mainstream

Global Warming Global Warming

Slide or Game?

Rule 1: No Talking While I’m Talking

Rule 2: The Prize If you win, SCVNGR will donate $10,000 to

National Wildlife Federation.

Hint: I really want you to win.

Rule 3: Stay Seated

Grab Your Cards

Rule 4: Trading

Rule 5: Problem

1.  Each row selects one color. 2.  Doesn’t matter what color your row picks. Just pick one. 3.  After 180 seconds, hold the cards above your head. NOTE: If there’s an aisle in your row, it counts as a new row beyond the aisle.

Rule 5: Objective

READY?

GO!

0 9 0 0 0 3 8 7 6 5 4 3 2 1 5 2 0 0 4 9 8 7 6 5 4 3 2 1 0 3 9 8 7 6 5 4 3 2 1 0 9 8 7 6 5 4 3 2 1 0 2 1 9 8 7 6 5 4 3 2 1 0 9 8 7 6 5 4 3 2 1 0 0 Hours Minutes Seconds

Time Left

All horizontal rows must have the same color facing forward. Aisle breaks count as new rows.

When your row is done, hold your sign up with both hands.

If you win, SCVNGR will donate $10,000 to charity.

0 9 0 0 0 2 8 7 6 5 4 3 2 1 5 1 0 0 4 9 8 7 6 5 4 3 2 1 0 3 9 8 7 6 5 4 3 2 1 0 9 8 7 6 5 4 3 2 1 0 2 1 9 8 7 6 5 4 3 2 1 0 9 8 7 6 5 4 3 2 1 0 0 Hours Minutes Seconds

Time Left

All horizontal rows must have the same color facing forward. Aisle breaks count as new rows.

When your row is done, hold your sign up with both hands.

If you win, SCVNGR will donate $10,000 to charity.

0 9 0 0 0 1 8 7 6 5 4 3 2 1 5 0 0 0 4 9 8 7 6 5 4 3 2 1 0 3 9 8 7 6 5 4 3 2 1 0 9 8 7 6 5 4 3 2 1 0 2 1 9 8 7 6 5 4 3 2 1 0 9 8 7 6 5 4 3 2 1 0 0 Hours Minutes Seconds

Time Left

All horizontal rows must have the same color facing forward. Aisle breaks count as new rows.

When your row is done, hold your sign up with both hands.

If you win, SCVNGR will donate $10,000 to charity.

Everybody hold your colors up in both hands and say “SHHHHHHHhhhhhh”

TIME IS UP!!

YOU DID IT! SCVNGR will donate $10,000 to

charity.

Give yourselves a hand!

How’d we do?

Don’t worry, we’ll still donate the money!

You LOSE! (But that’s ok)

What just happened? The Power of Communal Gameplay

Global Warming

Lack of Communication: You couldn’t talk with far players. Trading Patterns: Incredibly complex trades in micro-stock exchanges. Different Countries: Every row is their own country. The aisles are oceans. Wealth: Different allocation of resources to start. (Wealthy people shared?) Restricted Movement: Couldn’t stand up and so were forced to work locally. Decentralized Leadership: No leader, the hive mind made the decisions. Countdown: Only so much time we could spend on this. Joint Goal: We all accepted the same goal and were willing to work for it.

The Analogy Global Warming

Epic Meaning: We were all part of something larger than ourselves. And it was good. Blissful Productivity: You just worked incredibly hard, but feel great! The power of play. Global Problem, Local Solution: You solved a 3000 person problem with only the 8 people near you.

The Results Global Warming

And so….

Game Dynamics Are Powerful

Communal Gameplay +

Communal Discovery +

Complex Problem =

Slightly Less Impossible Problem

Global Warming

Thanks! And Have Fun Playing!

TheLevelUp.com scvngr.com

? Questions?

Raw Materials

Sources

1.  http://www.spring.org.uk/2009/10/how-rewards-can-backfire-and-reduce-motivation.php 2.  http://www.wired.com/beyond_the_beyond/2010/02/jesse-schell-future-of-games-from-dice-2010/ 3.  http://www.ted.com/talks/jane_mcgonigal_gaming_can_make_a_better_world.html 4.  http://www.istockphoto.com/stock-photo-2337513-labrador-retriever-cream-puppy.php

The correlation is irrefutable.

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