Free2play

Payment

Kickstarter

RetailDragon

Dig

ital d

istr

ibu

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

andre@indieadvisor.de

de.linkedin.com/in/andrebernhardt/

All Book recommendations: http://bit.ly/14zdgkb