SG market & Pricing in Health and Fitness
-
Upload
thierry-nabeth -
Category
Business
-
view
669 -
download
0
description
Transcript of SG market & Pricing in Health and Fitness
ParisParis28 November 201128 November 2011
European Commission Information Society and Media
SIG3.3 Workshop
GaLAGame and Learning Alliance
The European Network of Excellence on Serious Games
SG market & Pricing in Health and Fitness
AtoS (Wp4), ORT
1
Thierry Nabeth,AtoS Alumnus
Giusy Fiucci, ORT
ParisParis28 November 201128 November 2011
European Commission Information Society and Media
SIG3.3 Workshop
Table of content
• SG market & Pricing – A very fragmented market – Very little data available– Some facts
• SG market & Pricing in Health and Fitness– The 3 components– Some facts
• Conclusion
2
ParisParis28 November 201128 November 2011
European Commission Information Society and Media
SIG3.3 Workshop
SG market & Pricing
Findings from WP4
• Little data available• Comparing oranges (games) and apples (serious games)?• Yet some data
3
ParisParis28 November 201128 November 2011
European Commission Information Society and Media
SIG3.3 Workshop
WP4: Looking at the Business Dimension of SGs
The role of WP4 -Industry and Stakeholder Engagement is about:
4
Looking at theBusiness dimensionof Serious Games
First stage of the work:
Looking about the information available. (reports from analysts, websites, etc.)
ParisParis28 November 201128 November 2011
European Commission Information Society and Media
SIG3.3 Workshop
Findings: Little information available
Few reports from the Analysts (and more notably: the IDate reports)• J. Alvarez, L. Michaud (2008) Serious Games : Advergaming, edugaming,
training and more, IDATE Study 2008 (free)
• Julian Alvarez, Véronique Alvarez, Damien Djaouti, Laurent Michaud (2010); Serious Games: Training & Teaching - Healthcare - Defence & security - Information & Communication, IDATE Report 2010 (> 3000 Euros)
• Some information (very little) from general analyst such as Forrester research. (who seem mostly focussed on the game market)
The web sites:• The serious game market web site of Elian Alhadeff. But it remains largely
qualitative even if some numbers and facts are sometime provided (Reconciling Serious Games Market Size Different Estimates (blog post), Serious games market blog 8 April 2008). Such as the estimation of a market size in 2008 of 1.5-2 Billion dollars.
5
ParisParis28 November 201128 November 2011
European Commission Information Society and Media
SIG3.3 Workshop
Example of facts
6
Alhadeff 2008
Elian Alhadeff.: Reconciling Serious Games Market Size Different Estimates (blog post), Serious games market blog 8 April 2008
Although the information was posted in a blog, it originates from a person (Elian Alhadeff) that is following for many years the market of serious game, and can be considered as an expert.
$ 1.5 - 2 billion dollar estimate for 2008
Market value forecast
ParisParis28 November 201128 November 2011
European Commission Information Society and Media
SIG3.3 Workshop
Example of facts
7
TJ Keitt 2009
TJ Keitt 2009: Demand Insights: Serious Games Break Through 11 March 2009 Forrester research
Forrester research. Generalist analyst of technologies.
Forrester's research finds that 10% of North American online adults have played at least one of three types of serious games, and the reviews are generally positive.
adoption
ParisParis28 November 201128 November 2011
European Commission Information Society and Media
SIG3.3 Workshop
Example of facts
8
K. Corti 2009
Kevin Corti (2009): Corporate Learning Games, Siege Conference 2009, 3 October 2009. Presentation (slides)
Presentation (slides) from the CEO of PixelLearning (serious game design company)
Costs/pricing (“What’s the going price of a serious game?”)Work for hire...$50k - $250k normal range$500k - $1m possibleOTS product/solutions approach...$10 - $100 per seat$10k - $100k site licensesannual licenses
Cost
ParisParis28 November 201128 November 2011
European Commission Information Society and Media
SIG3.3 Workshop
Example of facts
9
Alvarez & Michaud (2008)
J. Alvarez, L. Michaud (2008) Serious Games : Advergaming, edugaming, training and more, IDATE Study 2008
This report, that is now freely available (a new report from IDate is available since 2010) appears to be the more valuable information about the serious game market and business so far.
At the end of 2007 the serious gaming market was estimated to be worth between 1.5 and 10+ billion USD.
Market valueSource: IDC
In the USA alone, advergaming is said to be worth 262 million USD in 2008.
The brain fitness market is currently thriving; in 2007, it generated 227 million USD in the USA alone
Market valueSource: Nintendo (?)
Advertising-linked communication titles are playing an increasingly significant role in the ingame advertising market, an industry estimated to be worth 205 million USD in the USA (2008)
Market value
ParisParis28 November 201128 November 2011
European Commission Information Society and Media
SIG3.3 Workshop
Tendency of Comparing Oranges and Apples
The Myth: Serious game market is of same nature as the game market, and therefore that the players of each market can easily enter in the other one?
10
Game market Serious game market
The reality: are we not comparingOranges and apples?
ParisParis28 November 201128 November 2011
European Commission Information Society and Media
SIG3.3 Workshop
Yet there exists fundamental differences
11
Game Serious
game
Objective: entertainment Objective: performance
(serious!)
Hardware: the console Hardware: the laptop
Investments: huge
(products,
Distribution channels)
Investments: moderate
(services)
Customer: the family
(mass market)
Customer:
the corporation
ParisParis28 November 201128 November 2011
European Commission Information Society and Media
SIG3.3 Workshop
The risks: many illusions
Several illusions• Money illusion: The market value of the serious games
market is the same the one of the game market.• The size illusion: The customer of one market will
become the natural customer of the other market• Competency illusion: the game actors will easily be able
to design games for the other market.
The reality: (personal finding)
The potential of generalization from a market to the other is probably largely exaggerated.
12
ParisParis28 November 201128 November 2011
European Commission Information Society and Media
SIG3.3 Workshop
Conclusion
• Very little factual information available.• A tendency to mix markets (in particular the game
market) leading to some illusions• A very fragmented and diverse market. It is probably
more than a matter of segmentation but of having different markets.
13
ParisParis28 November 201128 November 2011
European Commission Information Society and Media
SIG3.3 Workshop
SG market & Pricing
Health and Fitness
• A detailled report available by Physic Ventures: Health e-Games Market Report: Status and Opportunities (2008)• A domain that appears very diverse. (casual games; serious games; exergames)
14
ParisParis28 November 201128 November 2011
European Commission Information Society and Media
SIG3.3 Workshop
SG market: Little information available
The report:• Andy Donner, Douglas Goldstein and Julia Loughran (2008) Health e-Games Market Report: Status and
Opportunities; Physic Ventures• http://www.physicventures.com/news/health-e-games-market-report
15
ParisParis28 November 201128 November 2011
European Commission Information Society and Media
SIG3.3 Workshop
SG market: Different markets
The main “markets”: (totally different markets)• The Casual games (fun and easy to learn video games. Such as
brain training)• The Serious games (benefits beyond entertainment, such as
training, education and performance improvement across industries)
• The Exergames (digital interactive physical motion and fitness
games). Nintendo Wii.
16
ParisParis28 November 201128 November 2011
European Commission Information Society and Media
SIG3.3 Workshop
SG market: Business models
Large variety of Business Models:
• Consumer Direct: Nintendo’s Wii, Wii Fit, Brain Age;• Enterprise: Expresso Fitness’ S2U and S2R; Konami’s
DDR, …• Advertising: Fit Brains• Subscription: Lumos Lab’s Lumosity, Happy Neuron• Sponsorship: Kraft Game Pad, HopeLab’s Re-Mission• Nonprofit/Government Grants: Archimage’s Escape from
Diab (NIH);
17
ParisParis28 November 201128 November 2011
European Commission Information Society and Media
SIG3.3 Workshop
SG market: Different platforms
Result of the Technology Platforms of 300 eHealth games (2008)
18
ParisParis28 November 201128 November 2011
European Commission Information Society and Media
SIG3.3 Workshop
Conclusion
19
ParisParis28 November 201128 November 2011
European Commission Information Society and Media
SIG3.3 Workshop
Conclusion
• … discussion
20
ParisParis28 November 201128 November 2011
European Commission Information Society and Media
SIG3.3 Workshop
THANK YOU!
21
ParisParis28 November 201128 November 2011
European Commission Information Society and Media
SIG3.3 Workshop
The illusion of a same market
22
Game market Serious game market
Fun
Laptops
Big money
Customers
Smaller money
Performance
ConsolesCorporation
Serious games market appears to be a market with its specificities, even if some overlaps exist