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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Free2play
Payment
Kickstarter
RetailDragon
Dig
ital d
istr
ibu
tion
An (unexpected) journey through the history of Video game business models…
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• Who am I?• History of B2C business models• Status Quo / Challenges• Outlook
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1997 Jan Okt1998
Jul2000
Apr2002
Jan2004
Okt2005
Jul2007
Apr2009
Jan2011 2012/13
1/8/20041/1/1997
Retail business:PC / console
Online/ Mobile Games
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Spacewars!
Mainframes
Home computer
Arcades
Consoles
Mobile
(Smart-)PhonesOnline
Streaming
Mobile consoles
Tablets
Pinball (2000)
A short history
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1961
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1979
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1987
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[Buchtipp] „Masters of Doom“ http://amzn.to/10qtGFW1993
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1993/95
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1995 – 2004
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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."
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2004
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2013
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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
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19321947
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1972
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1975
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1976
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1976
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2002
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2004
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2006
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2009
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2012
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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
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1997 2000+
1997
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1997 2000+
2000+
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2003
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2007
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2009
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2011
Source: Flurry
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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
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<1996 [Buchempfehlung] Dungeons and Desktops http://amzn.to/17gA7Qb
6 $/h !!!!!1!!!!11!!111!!!elf
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1997
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2004
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2004
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2005 ( - 2012)
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2009
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2008 / 2009
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2010
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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
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• Who am I?• History of B2C business models• Status Quo / Challenges• Outlook
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Sell-in
Sell-through
Publishing
Pitch B2B
B2C
PR/ Marketing
The classical value chain
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Today: Chaos!
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• 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
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Be aware of the future
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• Who am I?• History of B2C business models• Status Quo / Challenges• Outlook / Quo Vadis
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What´s next?
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Overview
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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!
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Care about the audience first!
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More options than ever!
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The panacea !?
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Remember!
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Thanks for your time!
@Indie_advisor
de.linkedin.com/in/andrebernhardt/
All Book recommendations: http://bit.ly/14zdgkb