Games People Play
Future of Games, Interactive Media and Immersion

From the crude interactive games of the early periods of computers to the modern interactive and immersive environments, games have matured and leveraged the advances and capabilities of the developing technology environments. Much is now possible that would have seemed impossible, just a decade ago. Games are absorbing more and more of the liesure time of a growing percentage of the population.
Yet these instruments of entertainment also serve in skill development, concept communication, and education. They serve to test and develop cognitive skills and exercise sensory capabilities. We are only beginning to exercise the potential of these emerging technologies.

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From Passive to Active Experience
Future of Games and Immersion Entertainment
The Transformation of the Game Industry

In this session we will explore issues related to interactive games industries and the convergence with interactive media. It is a very broad consideration and we can only touch on a small number of items. We will drill down on two issues in particular - technology changing the ability to create games and their distribution and the possibility to align the passive form of immersion (TV) with the interactive forms of multi-user games. A critical issues is the opportunity of the independent game development community to align with the interactive community to serve their constiuents.

Many actions, perceptions, realities and beliefs indicate changes in the nature of games and the alignment with other "interactive" forms

• The arrival of bandwidth and digital formats for games have sent a shock wave through the industry.

  

• "Whether we like it or not, this is the medium of our moment. It is a medium that is telling our cultural story, and the fact that it is a pri- mary tool of youth and adolescents means it will have a tremendous impact on how the next generation or two plays itself out... " Sheldon Brown, University of California

• Who PLAYS Computer and Video Games? 75% of heads of households play computer or video games.
  The average game player age is: 30

• Age of game players:
  35.0% under 18 years
  43.0% 18-49 years
  19.0% 50+ years

• 19% of Americans over the age of 50 played video games in 2004, an increase from 9% in 1999.

• GENDER OF GAME PLAYERS 55.0% male 43.0% female
  WOMEN over the age of 18 represent a greater portion of the game playing population (28%) than boys from ages 6 to 17 (21%).

• Who BUYS Computer and Video Games? The average age of the most frequent game purchaser is: 37

• How Long Have Gamers Been Playing? 12 is the average number of years adult gamers have been playing.

  

• BEST-SELLING VIDEO GAME GENRES (units sold)
  5.4% Fighting
  9.0% Role-Playing
  9.4% Racing
  9.5% Children & Family Entertainment
  9.6% Shooters
  30.1% Action
  17.8% Sports

• BEST-SELLING COMPUTER GAME GENRES (units sold)
  3.9% Action
  5.4% Sports
  5.9% Adventure
  10.0% Role-Playing
  16.3% Shooters
  26.9% Strategy
  20.3% Family & Children

• The Top FOUR Reasons Parents Play Video Games With Their Children
  Because they are asked to (69%)
  It is a good opportunity to socialize with the child (68%)
  It is fun for the entire family (66%)
  It is a good opportunity to monitor game content (56%)

• How do we maintain effective competition and continued liberalisation in infrastructure, network services and applications in the face of convergence across different technological platforms that supply broadband services and maintain transparent, non-discriminatory market policies?

  

• Computer and video games is a young industry with rapid growth underpinned by technological development. The global market in 2003 was estimated to be over USD 21 billion compared with USD 32 billion for the recorded music industry; US games revenue in 2001 surpassed film box office ticket sales. The main segments in 2003 were the console off-line (73%) and PC-offline markets (17%). Online and wireless games are still relatively small (6.4 and 3.4% respectively). However, there is a trend towards online games in PCs and consoles. New games are released with some online capabilities, and it is expected that nearly all will become at least in part online.

• The traditional revenue business model in the computer games industry is to sell hard-boxed games. With diffusion of broadband Internet access there are now competing models for online games that firms can use alone or in combination. New online-enabled revenue models include retail purchase, subscription fees, pay-per-play, advertising, and new services. The most successful emerging model is the "pay monthly" subscription model, but it is expected that most computer game companies will have to rely on a mix including advertising and support services to increase revenue. However, significant changes in revenue models could occur if and when micro-payment options are more widely available for mass- market customers. Selling traditional boxed games direct to consumers by online download allows developers to build a close relationship with customers, but it requires investments in brand creation and marketing.

• On the supply side, the spread of broadband provides increasing opportunities for new distribution mechanisms and potential for new business models. Games and their support networks are increasingly R&D-intensive (faster networks, multi-platform games, virtual reality animation, etc.). On the demand side, consumer demographics, income and preferences will structure the growth and shape of the industry.

  

• The industry related to technologies that engage for immersion - passive in the case of historic film and active in the case of multi-player games - will have a profound impact on the future of entertainment and the distribution of leisure dollars.

We think that you will find the session to be interesting and informative.

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We welcome comments and requests for additional information

You can write Benn Konsynski or the Goizueta Business School alumni at:

DIGITAL COMMERCE Benn Konsynski Goizueta Business School 1300 Clifton Rd Emory University Atlanta, Georgia 30322 Phone: 404-727-6698 Fax: 404-727-2053		G B S Alumni Natalie Miranda Goizueta Business School 1300 Clifton Rd Emory University Atlanta, Georgia 30322 Phone: 404-727-6723 Fax: 404-727-4983

Email:
GBS Club Mailbox

Updated 8/14/05 Benn Konsynski

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