or What can the toy industry learn from video games industry

2. Maker : CEO &
Founder of Makeree
Teacher : IDC, TAU,
Kibbutzim Seminar
Activist: GameIS,
Games For Peace
dudi@makeree.com

3. Although there are new innovative toys each
year (in average 60% of toys each year are new):
The structure of the industry and the identity of
the big players haven’t changed for decades !!!
https://law.resource.org/pub/eu/toys/guidance/the_european_toy_industry_-_facts_and_figures_-_january_2013-4.pdf

4. Until the mid 80s Toys
and Video Games were
considered the same
industry.
Today Video Games is a
bigger then Toys.

6. • Mario was already in more then 250 games
• Successful new IP was very rare
• Home console game price didn’t change in
30 years

7. • Nintendo – 16.7 Billion
• Sony Computer
Entertainment – 14.0 Billion
• Microsoft Entertainment
Device Division – 8.2 Billion
• Electronic Arts – 4.2 Billion
• Activision Blizzard - 3.0
Billion
In 2008 video games market size world wide was
$55B (Today its about $90B).
5 companies dominate 85% of the market. Less
then sixth of the market was divided between
tens of thousands of companies

8. • NASDAQ +25%
• EA Stock -61%
• Activision Blizzard Stock -33%
• Xbox Division in Microsoft lifetime loss $7.8B
• Play Station Division in Sony lifetime loss $3B
• Nintendo Stock -71%
http://www.slideshare.net/bcousins/when-the-consoles-die-what-comes-next

9. • Nintendo valued $17.7B (was $61.7B in
2008)
• Activision $13.3B
• Zynga $9.8B
• Gree $7.1B
• Nexon $6.3B

10. Revenues from games 2013: Tencent 5.2B, Apple 2.3B, Google 1.4B, Facebook 0.9B, (http://www.newzoo.com/free/rankings/top-25-
companies-by-game-revenues/)

11. http://www.gamasutra.com/view/news/284402/Top_25_games_companies_made_345B_in_the_first_half_of_2016.php

12. 1972 1977 1982 1989

13. 2002 2004
2006
20011998 2000
2007 2008 2008 2010

15. • First 25 years – 4 platforms types
• Next 15 years – +10 platform types
• Last 5 years – at least 4 platform types
0
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17. 2011: EA buys Popcap
for $1.3B
2106: Activision Blizzard
buys King for $5.9B
2016: Tencent buys
Supercell for $10.2B

18. http://www.gamasutra.com/view/news/284402/Top_25_games_companies_made_345B_in_the_first_half_of_2016.php

19. (No)
(Yes)

22. • Technological development has an effect
on structural changes of industries.
• structural changes usually create new
opportunities.
• I believe the toy industry is changing, and
now, there are more opportunities for
entrepreneurs then ever.
Seize the opportunity