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 Silver Level (Free to Join)  HD Movies and TV Shows  Game Demos  Downloadable Arcade Games  Game Add-Ons  Avatars and Fashion  Voice and Text Chat 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

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

Yearly Revenue Entertainment & Devices Division $7.75 Billion Game Downloads Revenue $100 million Subscriptions 20Million active members $1 billion in 5 years Expected to reach $1B annually by 2013

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

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

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

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

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

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

Popular Game of Wii Weekly Ranking of Wii Game 1.Monster Hunter Tri,Hunting Action Game 2.New Super Mario Bros. WiiAction game 3.Super Smash Bros. Brawl, Action game 4.Red Steel 2, Action RPG 5.Call of Duty: Modern Warfare,Shooter video game 6.Fragile Dreams: Farewell Ruins of the Moon RPG 7.Mario Kart Wii, Racing game 8.Endless Ocean: Blue World, Nintendo Scuba diver game 9.Super Mario Galaxy, 3D Action game 10.The Legend of Zelda: Twilight Princess, Action Adventure NameGenre

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

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

How Nintendo makes money with using online contents Company can charge money for game items – e.g. Monster hunter 1.User can trade items with on-line player 2.Some items are free but some items are not

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

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…

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

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

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

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)

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

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

Future Games StarCraft II: Wings of Liberty Diablo III

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

Questions?