• Most content was handled via text, simple graphics and audio Cost of Goods (CoG) were high • Arcade cabinets, even floppy disks were a costly delivery medium Platform base was limited • Early home computers and consoles (Magnavox, Atari, Tandy, Sinclair, etc.) Only a “niche” market of hardcore gamers existed • They paid for their passion
and marketing was limited to niche periodicals and word of mouth Resources were hard to find • Few knew how to develop computer games Production companies were split between niche and mass market • Small development groups focused on core competencies • Larger companies focused on arcade games In the Beginning… 1960’s-1970’s
• Players consume more sophisticated content faster Development budgets have soared • Grand Theft Auto 4 cost $100 million, most MMORPGs can cost twice that Studios have staff in the hundreds • Just one studio division can have over 200 people Only the Top Ten games make enough money to keep a development studio solvent • Marketing budgets have grown in tandem with production costs
and Consoles, but tablets, phones, web-based for both standalone and social platforms Financial Models have evolved • Retail has switched to Digital download; MMOs have switched from subscription based and are transitioning to Free-to-Play model with Microtransactions; DLC keeps IP alive through easily accessible post-release content What has Changed
still a bad game • Even the best production values can not save a bad design Simple, elegant design with deep playability still resonates • MineCraft has sold over 9 million copies Small studios can still be viable • Open source tools, app game market provide opportunities Viral Marketing still exists yet has more power • Crowdfunding can get projects off the ground
Generational transference has latitude CoG remains expensive • Larger consumer base with shrinking retail outlet makes this model prohibitive As the products, the platforms and the market grew, trends began to form that defined a business that now competes financially with the movie industry…