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An (unexpected) journey through the history of Video game business
models…
• Who am I?
• History of B2C business models
• Status Quo / Challenges
• Outlook
1997 Jan
Okt
1998
Jul
2000
Apr
2002
Jan
2004
Okt
2005
Jul
2007
Apr
2009
Jan
2011 2012/13
1/8/2004
1/1/1997
Retail business:
PC / console
Online/ Mobile
Games
Spacewars!
Mainframes
Home computer
Arcades
Consoles
Mobile
(Smart-)PhonesOnline
Streaming
Mobile consoles
Tablets
Pinball (2000)
A short history
1961
1979
1987
[Buchtipp] „Masters of Doom“ http://amzn.to/10qtGFW
1993
1993/95
1995 – 2004
1996
"What was so shocking to me was that
Windows was the second highest usage
application in the U.S. The number one
application was Doom," N. explained. To
him, this was a revelation. "It was a 12-
person company in the suburbs of Texas
that didn't even distribute through
retail, it distributed through bulletin
boards and other pre-Internet
mechanisms ... Microsoft was hiring
500-people sales teams and this entire
company was 12 people, yet it [id
Software] had created the most widely
distributed software in the world."
2004
2013
http://de.wikipedia.org/wiki/Videospiel
Spacewars!
Mainframes
Home computer
Arcades
Consoles
Mobile
(Smart-)PhonesOnline
Streaming
Mobile consoles
Tablets
Pinball (2000)
No commercial use
Shareware,
Retail
No commercial use
19321947
1972
1975
1976
1976
2002
2004
2006
2009
2012
Spacewars!
Mainframes
Home computer
Arcades
Consoles
Mobile
(Smart-)PhonesOnline
Streaming
Mobile consoles
Tablets
Pinball (2000)
Pay per play
Retail
Pay per play
No commercial use
Shareware,
Retail
Dig. Distrubtion,
Free-to-play
No commercial use
1997 2000+
1997
1997 2000+
2000+
2003
2007
2009
2011
Source: Flurry
Spacewars!
Mainframes
Home computer
Arcades
Consoles
Mobile
(Smart-)PhonesOnline
Streaming
Mobile consoles
Tablets
Pinball (2000)
Pay per play
Retail
Pay per play
No commercial use
Shareware,
Retail
Dig. distribution
(Retail)
Dig. distribution
Free-to-play
Dig. distribution
Free-to-play
Retail
<1996 [Buchempfehlung] Dungeons and Desktops
http://amzn.to/17gA7Qb
6 $/h !!!!!1!!!!11!!111!!!elf
1997
2004
2004
2005 ( - 2012)
2009
2008 / 2009
2010
Spacewars!
Mainframes
Home computer
Arcades
Consoles
Mobile
(Smart-)PhonesOnline
Streaming
Mobile consoles
Tablets
Pinball (2000)
Pay per play
Retail
Pay per play
No commercial use
Shareware,
Retail
Dig. distribution
(Retail)
Dig. distribution
Free-to-play
Dig. distribution
Free-to-play
Subscription
Dig. Distribution
Dig. Distribution
Subscription
Free-to-play
No commercial use
• Who am I?
• History of B2C business models
• Status Quo / Challenges
• Outlook
Sell-in
Sell-through
Publishing
Pitch B2B
B2C
PR/ Marketing
The classical value chain
Today: Chaos!
• Retail (Assassins Creed X, CoD X, etc.)
• Digital Distribution (Steam)
• In-Game Advertising (Fifa)
• Advertgames (Americas Army)
• “Try Before you Buy” / Trialware /
Shareware,
• Episodic Entertainment (Telltale),
• Skill-Based Progressive Jackpots
(Poker),
• Subscription Model (WoW)
• Micro-Transactions (Travian, etc.),
• Sponsored Games / Donationware
(serious games, games for good,
charity games),
• Pay per play / Pay as you go / Pay for
Time,
• Player to Player trading of Virtual Items
(Steam Trading),
• Sell Access to your Players (like lead
generation, special offers etc.),
• Freeware (get lots of users),
• Loss Leader (focus on your real goal),
• Peripheral Enticement (Skylanders),
• Player to Player Wagering (GameDuell),
• User Generated Content (letting users
make endless new content),
• Pay for service (Storage, Private server,
Cloud stats: CoD Elite, Minecraft
Realms),
• Rental,
• Merchandise (Angry Birds),
• Pre-Sell the Game to the Players (Prison
Architect, Minecraft).
Overview of business models
Source: David Perry on Gamedesign
Be aware of the future
• Who am I?
• History of B2C business models
• Status Quo / Challenges
• Outlook / Quo Vadis
What s next?
Overview
Marketgrowthrate
Relative market share
HighLow
LowHigh
DogsCash Cows
?Stars
Retail
Shareware
Subscriptions
Digital Distribution
Micro-Transactions
Peripheral Enticement
Merchandise
Episodic Entertainment
Gambling
Pay per Play
User Generated Content
Games as a service
Pre-sell
Ingame-Advertising
Advertgames
Sponsored Games
Sell Player Data
Rental
Do your homework!
Care about the audience first!
More options than ever!
The panacea !?
Remember!
Thanks for your time!
@Indie_advisor
andre@indieadvisor.de
de.linkedin.com/in/andrebernhardt/
All Book recommendations: http://bit.ly/14zdgkb

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An (unexpected) journey through the history of Video game business models not featuring Gandalf