1. How to survive in a highly competitive and ever more concentrating global game market? Ari Närhi / Tampere Polytechnic - School of Art and Media 22.3.2004 Game production in Finland

2. Topics a brief history game industry trends Neogames - a Finnish model for co-operation and networking

3. History start in 1980s game production as a hobby minimal sales first companies in the 1990s

4. Success stories - PC games Remedy (founded 1995) –Max Payne (PC, PS2, Xbox) 2001, published by Take 2 Interactive - sold over 4 million copies –Max Payne 2: The Fall of Max Payne (PC, PS2, Xbox) 2003, published by Rockstar GamesMax Payne 2 Housemarque (founded 1995) –in early 1999, Housemarque signed a contract with Infogrames to develop Supreme Snowboarding for PC CD-ROM, which sold about 500000 copies. Bugbear (founded 2000) –Rally Trophy 2001, published by JoWooD Productions, sold over 200000 copies

5. Others Sulake –Habbo Hotel virtual chat Red Lynx –develops and produces Interactive Cross-Media Entertainment, new type of chatting solutions and interactive TV- formats

6. Mobile games start in 1999 - SMS/WAP games a lot of venture capital available in 1999-2000 a lot of companies went bankrupt after 2000

7. Mobile games… new start in 2002-2003 - Java games Mr. Goodliving Sumea –20 people, 55 partners, 40 countries

8. Mobile games… Nokia - N-Gage –new era of mobile gaming a phone + a game console –sales disappointing - at least so farsales disappointing –games that make good use of its possibilities are coming out later this year

9. Game companies in Finland usually very small about half of the companies founded after 2000 about 10 companies with more than 10 employees and over 400 000 revenue in 2002 about 400-420 employees - growth rate 5-10 % more jobs every year many companies have other activities –ringtones, logos and other graphics for mobile handsets, programming and programming tools, web design…

10. Strenghts good technological skills good quality reliable companies flexibility - small companies lots of active game players Nokia!Nokia

11. Weaknesses geographic location - far from USA not enough contacts with big publishers lack of professionalism especially in marketing lack of publishers lack of education lack of funding lack of appreciation non-focused companies

12. Opportunities internationalisation networking funding education

13. Threats international competition small companies lack of marketing and sales skills

14. Game industry trends… growing budgets –in 1997 typically 15 months / 7 - 15 people / 350 000 - 900 000 – 24 months / 30 - 40 people / 2 -4 million euros, even 3-4 years, 5-10 million euros high risk level

15. Game industry trends… shorter life span in shops hard competition –more companies –cheap labour in developing countries concentration –few publishers, super developers sequels - franchising lack of new inventions and ideas

16. Game industry trends… global markets - USA, Japan, UK –need for extensive marketing –brand management –a lot of capital needed fast tehnological development need for professionals cross media –game-like movies, movie-like games

17. Game industry trends… new platforms and devices –new consoles –online games, mobile devices, digital tv –community, social games, location based games no room for independent products hard for small companies to enter the business

18. Future funding –without public funding independent and non-profit game production is not possible –funding needed for securing IPRs international contact networks and co-operation needed new genres of games –mobility, community games, pervasive games, cross media, digital tv… –Scandinavia as a testbed

19. Future

20. Neogames - a Finnish game cluster a network in the field of games a spokesperson for the field on both the national and international levels activities launched on 3 November 2003 co-operation with other networks related to the field located in Tampere, Finland http://www.neogames.fi/english/

21. Neogames aims at… the creation of a comprehensive network of players in the games field the development of games-related business the support and coordination of research related to and supporting the games field the improvement of the image of the games field and making the field better known: transferring games-related news from the culture section to the financial pages

22. Neogames – Network game companies research institutes organizations activities –Java/mobile group –field development group –business group –training group

23. Network…

24. Neogames – Development Centre provides a support network for the development of future entertainment applications and games like educational games interesting research initiatives and joint projects between members are now under preparation

25. Neogames – Training Forum Neogames organises training related to the games and entertainment industries and participates in the development of the range of courses arranged by educational institutes

26. Neogames – Channel to the Market an active provider of market information and an intermediary of marketing channels. participates in the organization of Finnish events related to the games business and offers affordable opportunities to visit international fairs in the field by arranging joint travel deals