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Online Gaming Industry

Online Gaming Industry. Jason Mcdaniel Alvin Arreola Takao tanaka Danny Quach James Mills. Goal. What are the different types of platforms? How do these platforms generate revenue?. Modem Wired Router or Gateway Wireless Router. Online Gaming and Entertainment.

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Online Gaming Industry

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  1. Online Gaming Industry Jason Mcdaniel Alvin Arreola Takao tanaka Danny Quach James Mills

  2. Goal • What are the different types of platforms? • How do these platforms generate revenue?

  3. Modem Wired Router or Gateway Wireless Router

  4. Online Gaming and Entertainment Silver Level (Free to Join) Gold Membership Upgrade All of Silver plus: Photo Sharing Online Gaming with Friends Netflix Streaming Video Chat Facebook and Twitter Early access to demos Exclusive Discounts • HD Movies and TV Shows • Game Demos • Downloadable Arcade Games • Game Add-Ons • Avatars and Fashion • Voice and Text Chat

  5. How XBox Live Generates Revenue • Accessories to enhance experience • Subscriptions • Downloads – Using Microsoft Points • Games • Add-Ons • Avatar Accessories • Movies, TV Shows • Online Advertising

  6. Yearly Revenue Entertainment & Devices Division $7.75 Billion Game Downloads Revenue $100 million Subscriptions Million active members $1 billion in 5 years Expected to reach $1B annually by 2013

  7. Launched November 2006 • Free service that can be accessed by Playstation 3 and Playstation portable devices • More than 40 million registered users • Over $500 million in revenue in 2009

  8. Playstation Store • Interactive media and entertainment source • Download games, movies, TV shows, and add-ons • High Definition content • New content added weekly

  9. How PSN Generates Revenue • PSN cards and wallet • PSN Spring 2010 sale • Qore online magazine subscription • Movies -rentals start at $2.99 and purchases start at $9.99 • Games start at $9.99 • Advertising

  10. PS3 Firmware 3.30 Update • 3D support for console • 3D Games releasing in June 2010 • Requires 3D capable TV • Sony hopes 3D technology will promote all aspects of their products including PSN

  11. Sony Online Service • Built on the existing Playstation Network • Will link Sony’s Bravia TVs, smart phones, and gaming devices • Promotes the relationship of Sony’s hardware and software development teams

  12. Nintendo Wii • $49.99 is the average Wii game price • Almost all Wii game has on-line system

  13. Popular Game of WiiWeekly Ranking of Wii Game • Monster Hunter Tri, Hunting Action Game • New Super Mario Bros. Wii Action game • Super Smash Bros. Brawl, Action game • Red Steel 2, Action RPG • Call of Duty: Modern Warfare, Shooter video game • Fragile Dreams: Farewell Ruins of the Moon RPG • Mario Kart Wii, Racing game • Endless Ocean: Blue World, Nintendo Scuba diver game • Super Mario Galaxy, 3D Action game • The Legend of Zelda: Twilight Princess, Action Adventure Name Genre

  14. What can players do on-line?? • Doing missions to clear the stage with on-line members • e.g. Monster hunter • Fighting with on-line members • e.g. Super Smash Bros. Brawl, Call of Duty • Racing or competing against the time or the score with on-line members • e.g. Mario Kart Wii • Trading items with on-line member • e.g. Pokémon Battle Revolution

  15. How Nintendo makes money with using online contents • Wii points • Electronic money of Nintendo Wii • You can purchase Wii Points through the Wii Shop Channel • 100points = $1.00 • Wii (Nintendo) Points are used to purchase a software on the Wii Shop Channel • You can download game by using Wii points

  16. How Nintendo makes money with using online contents • Company can charge money for game items • e.g. Monster hunter • User can trade items with on-line player • Some items are free but some items are not

  17. PC Gaming

  18. The PC Gaming Alliance (PCGA) is a nonprofit corporation whose mission is to promote PC gaming worldwide Acer AMD Antec Bigfoot Capcom Alienware Epic Gamestop Gametap Gas Powered Intel Logitech Microsoft Nvidia Razer Sony WildTangent And more…

  19. Initial Release September 12, 2003 Currently over 1100 games available Surpassed 25 million active user accounts Leader in digitally distributed games • EA • Activision • Ubisoft • THQ • Sega • Codemasters • LucasArts • Capcom • Bethesda • 2KGames • And many more…

  20. Steam Features Free client Instant purchase of games Access games from any computer with internet Automatic games updates Chat with friends Allows you to view which games your friends are currently playing and join them

  21. Steam Revenue Steamworks Sale of Digitally distributed games In game advertising Steam apparel

  22. Blizzard Entertainment • Software developer and publisher founded in 1991 as Silicon & Synapse • Headquarters located in Irvine, CA • Subsidiary of Activision Blizzard, the 3rd top video game developer • Most well known for WarCraft and StarCraft series • Breakthrough hit was original WarCraft title, WarCraft: Orcs and Humans

  23. Activision Blizzard Income • 2009 net revenue was $4.28 billion • 2007 net revenue of $1.1 billion and $517 million of operating income (as Blizzard)

  24. World of Warcraft • A Massively Multiplayer Online Role Playing Game (MMORPG) released in 2004 • #1 global subscription based game • Over 11 million subscribers • Subscription cost of $14.99/month • One time cost of game software and expansions

  25. StarCraft • Over 11 million copies sold worldwide • One time cost of game software and expansion StarCraft: Brood War • Free use of online multiplayer game play through Battle.net • Still very popular in South Korea, where professional teams compete in tournaments

  26. Future Games • StarCraft II: Wings of Liberty • Diablo III

  27. Concluding Research • Online gaming market is currently worth over $15 billion • There are over 100 million people who play video games online in which half play PC games • Xbox Live holds the largest share of the console online gaming market, while PS3 and Wii share the remainder • The online gaming industry is expected to grow to about $24.9 billion by 2013

  28. Questions?

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