1. Video game industry
Adam Kościelniak IiE III: Ekonometria

2. The early steps
„How sir, would you make a ship sail against the wind and currents by lighting a bonfire under her deck I pray you excuse me. I have no time to listen to such nonsense.„ - Napoleaon I

3. Cathode Ray Tube Amusement Device
The game was a missile simulator inspired by radar displays from World War II, it was never massively produced.
Filled on January 25, 1947 the Cathode Ray Tube Amusement Device is the first known video game device.
Many argue that its not actually a video game.

4. Computer chess
March 1950, Claude Shannon: First article on computer chess
November 1951, Dr. Dietrich: The original chess playing program for the Manchester Ferranti computer.

5. Nimrod ‘first console’ – exclusively build to play a game
Displayed at the Exhibition of Science during the 1951 Festival of Britain
When the Festival ended, the computer was shown in Berlin
True intention was to illustrate the principles of the (then novel) digital computer for the public.

6. OXO Created by Alexander S. Douglas for the EDSAC computer in 1952.
First digital graphical game to run on a computer
The player played against the computer

7. Tenis for two Developed in 1958 on an analog computer
Simulates a game of tennis or ping pong on an oscilloscope
Created by American physicist William Higinbotham
Initially shown on October 18, 1958
Hundreds of visitors lined up to play the new game during its initial debut.

8. Spacewar! One of the first digital games
Created by MIT students Martin Graetz, Steve Russell, and Wayne Wiitanen
Spaceships were subjected to garavity the missles however werent due to lack of processing time

9. Oddysey Designed in 1968 (prototype „Brown Box”
Production started in 1972
The first wave sold 130,000 consoles making it a huge sucess
The advertisment misslead some of the audiences that the machine needed a Magnavox TV
Later on 330,000+ systems were sold

10. Atari – Pong
Established in 1972 by Nolan Bushenell, Ted Dabney and Larry Bryan
Initial investemet of 300 $
In 2 years sold arcade games
Pong console sold in units in one year brining 3 million dollars in profits

11. Genres
De gustibus non est disputandum

12. Action game Based on hand-eye coordination Titles: Half-life
Legacy of Cain
God of War
Crash Bandicoot
Tekken

13. Role playing Based on paper and pencil role playing games Titles:
Baldurs Gate
Planescape Torment
Might and Magic
Mud’s
Gothic
Final Fantasy

14. Strategy games Developed from board games Titles: Dune Populus
Warcraft series
Starcraft
Dawn of War
Total war series
Civilization
Industry Gigant
Railroad Tycoon

15. Sport games Simulate playing sports Titles:
Tony Hawks Pro Skater series
Fifa series
Madden series
Need for Speed series
Colin McRae Rally series

16. MMO
Capable of supporting hundreds or thousands of players simultaneously
Titles:
World of Warcraft
Ultima Online
Guild wars
O-game
World War II Online
Second life

17. Other Music games Puzzle games Arcade games Party games Guitar Hero
Rock band
Puzzle games
Bejweled
Peggle
Arcade games
Geometry wars: Retro evolved
Party games
Buzz!

18. The industry itself
„Where the magic happens”

19. Game industry value chain
End-users layer
Hardware layer
Distribution layer
Production and tools laye
Product and talent layer
Capital and publishing layer

20. The people Disciplines specific to the industry Game programmer,
Game designer,
Level designer,
Game producer,
Game artist
Game tester
Gabe Newell Director of Valve

21. How it’s (was) done In the past:
Mostly one man projects with low production cost.
Almost certain high returns on a dollar invested
Now:
Multi-million dollar projects with big development teams
Risky investments (most of the ideas get rejected at the first stage of the value chain

22. The fat cats: Electronic Arts
Electronic Arts HQ
CEO: John Riccitiello Biggest brands: Battlefield series Burnout series Command & Conquer series Rock Band series Revenue 2008: 4,2 billion dollars Net income 2008: -1,08 billion dollars Employs: 7,320

23. The fat cats: Electronic Arts
Now: EA: LA

24. Nintendo CEO: Satoru Iwata Biggest brands: Mario series
Legend of Zelda series
Pokemon series
Donkey Kong
Revenue 2009: billion U.S. dollars
Net income 2008: billion U.S. dollars
Employs: 4,130

25. The fat cats: Activision Blizzard
CEO: Robert Kotick
Biggest brands: Guitar Hero series Call of Duty series Diablo series Warcraft series
Crash Bandicoot series
Revenue 2008: 5 billion dollars
Employs: 7,000

26. The fat cats: Activision Blizzard

27. The fat cats: Take 2
CEO: Ben Feder Biggest brands: Serious Sam series Civilization series Grand Theft Auto series Max Payne series Revenue 2008: $968 million Net profit : $97.1 million Employs: 2,000

28. The fat cats: Take 2

29. The market The market is growing
Recession hasent affected the industry
Casual gaming is becomming bigger with every year

30. Thanks for listening