1 Video Games in 2005 The State of the Art John Salwitz Senior Development Director Electronic Arts, Inc.

2 Overview Quick history of the video game business! Quick history of the video game business! Key technologies and creative initiatives today. Key technologies and creative initiatives today. What’s next in video games? What’s next in video games? Where will young kids be playing games in 2 years? Where will young kids be playing games in 2 years?

3 Definitions Arcade Game – Coin Operated Standup Game Arcade Game – Coin Operated Standup Game Hand Held Game – Portable, Battery Operated Hand Held Game – Portable, Battery Operated PC Game – Played on your “Dell” PC Game – Played on your “Dell” Console Game – Played on your T.V. Console Game – Played on your T.V.

4 Golden Age of Arcade Games The dawn of video games! The dawn of video games! Games are played in local arcades, college campuses, bowling alleys, 7-11s, movie theaters… Games are played in local arcades, college campuses, bowling alleys, 7-11s, movie theaters… Players pay about $.25 for each game and play for about 3-5 minutes. Players pay about $.25 for each game and play for about 3-5 minutes. Hit games sell 75,000 units at about $2,500 each. Hit games sell 75,000 units at about $2,500 each. Hits include… Hits include…

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6 Sunset on the Arcades Arcade game hardware grows substantially in complexity and capability. Arcade game hardware grows substantially in complexity and capability. Arcades dominate the video-game business in Arcades dominate the video-game business in Console game titles are created largely as derivatives of arcade games. Console game titles are created largely as derivatives of arcade games. In 1985 things begin to change… In 1985 things begin to change… In 1985 Nintendo launches the NES (Nintendo Entertainment System)… In 1985 Nintendo launches the NES (Nintendo Entertainment System)… The end of the arcade has begun… The end of the arcade has begun…

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8 Console Games Arrive! At-home video game play has taken over the industry! At-home video game play has taken over the industry! Nintendo entertainment system dominates the market. Nintendo entertainment system dominates the market. 2 nd party software publishers (non-hardware makers) begin to sell lots of games for “standard platforms”. 2 nd party software publishers (non-hardware makers) begin to sell lots of games for “standard platforms”. Most games are being played on 5 year old technology. Most games are being played on 5 year old technology.

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10 Console Explosion! In 1990 Sega introduces the “Genesis”… 16-bit Video Games! In 1990 Sega introduces the “Genesis”… 16-bit Video Games! Shortly thereafter Nintendo releases the “SNES” (Super NES). Shortly thereafter Nintendo releases the “SNES” (Super NES). By the end of this period, video games are stored on CDROM. By the end of this period, video games are stored on CDROM. Sony ends Nintendo and Sega’s reign in 1995 with the introduction of the Sony PlayStation (PS1). Sony ends Nintendo and Sega’s reign in 1995 with the introduction of the Sony PlayStation (PS1). With the PlayStation home video games become 3-Dimensional! With the PlayStation home video games become 3-Dimensional!

11 Console Explosion!

12 Modern Era of Video Games ! Sony’s dominance over the video game business increases with the introduction of the PlayStation II in Sony’s dominance over the video game business increases with the introduction of the PlayStation II in Nintendo follows with the “Game Cube” Nintendo follows with the “Game Cube” Microsoft follows with the “Xbox” Microsoft follows with the “Xbox” Most video games are created by software publishers. Most video games are created by software publishers.

13 Modern Era of Video Games !

14 Computational Power

15 Key Technologies and Features in Today’s Games. Multiplayer – Many people sharing same game. Multiplayer – Many people sharing same game. Open Worlds – Interactive Playgrounds. Open Worlds – Interactive Playgrounds. Story Telling Through Game-play. Story Telling Through Game-play. Incredible Environmental Realism. Incredible Environmental Realism. Convergence: Video Games and Movies! Convergence: Video Games and Movies!

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17 What video games will young kids be playing in 2 years… I have absolutely no idea! However… I have some idea where they will be playing!

18 Last Year’s Top Video Games 1. Crash Team Racing 2. Spongebob Supersponge 3. Spyro: Year Of Dragon 4. Shrek: Treasure Hunt 5. Grand Theft Auto 6. Disney Collectors Edtn 7. Final Fantasy VIII 8. Crash Bash 9. Namco Museum 10. Final Fantasy Anthology Top PS-II Games 2004 Top PS-I Games Grand Theft: Andreas 2. Madden NFL NFS Underground 2 4. Spider-Man: The Movie 5. NCAA Football 6. NBA Live 7. MVP Baseball 8. Metal Gear3:Snake 9. Tony Hawk Underground 10. NFL Fight Night

19 Where will young kids be playing games in 2 years? ANSWER: They will be playing games on PS II and on the XBOX in their living rooms. By the way… there are over 45 Million of these consoles (world wide). Maybe… older siblings give their game systems to younger siblings? They will be doing so because next year…

20 What’s Next? XBOX II and PlayStation III! XBOX II and PlayStation III! In the fall of 2005 Microsoft will introduce XBOX II. In the fall of 2005 Microsoft will introduce XBOX II. In the fall of 2006 Sony will introduce PlayStation III. In the fall of 2006 Sony will introduce PlayStation III. Lets compare… Lets compare…

21 Computation… Next Gen

22 Finally… Video game development happens in cycles. Video game development happens in cycles. We are just about to end one phase and enter another. We are just about to end one phase and enter another. Each cycle brings a 10x improvement in hardware capability and wonderful jumps in quality. Each cycle brings a 10x improvement in hardware capability and wonderful jumps in quality. Younger players play older platforms. Younger players play older platforms.

23 Care to play?