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

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

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

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 copies. Bugbear (founded 2000) –Rally Trophy 2001, published by JoWooD Productions, sold over copies

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

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

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

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

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 revenue in 2002 about 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…

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

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

Opportunities internationalisation networking funding education

Threats international competition small companies lack of marketing and sales skills

Game industry trends… growing budgets –in 1997 typically 15 months / people / – 24 months / people / 2 -4 million euros, even 3-4 years, 5-10 million euros high risk level

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

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

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

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

Future

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

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

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

Network…

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

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

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