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From Concept to Market: The Digital Games Business Dr. Aphra Kerr Research Fellow STeM, DCU, Ireland. DigiPlay: Experience and Consequence s of Technologies of Leisure, 14-15th January 2004. A little history. Degree in Communications Studies

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slide1
From Concept to Market:

The Digital Games Business

Dr. Aphra Kerr

Research Fellow

STeM, DCU,

Ireland.

DigiPlay: Experience and Consequences of Technologies of Leisure,14-15th January 2004.

a little history
A little history
  • Degree in Communications Studies
  • MA by research – The use of ICTs and potential use of ISDN by cultural industries
  • PhD – Innovation in Multimedia Companies
  • Post-Doc – The production and consumption of digital games
which techs and focus
Which techs and focus
  • Focus is on ICTs (tech + content)
  • Focus is on macro trends and how they play out at meso and micro levels
  • Focus is on critically interpreting the available data – reports, internet
  • Collecting primary data through interviews
background of this paper
Background of this paper
  • Post-doc primary and secondary research 2000/2001..interviews in Irish and UK companies, trade conferences, reports
  • 2002 STeM working paper
  • Manchester & MIT 2002 conf. papers
  • 2003 Convergence paper and draft book chapter
approach in this paper
Approach in this paper
  • Political economy..
    • ‘the study of social relations, particularly the power relations, that mutually constitute the production, distribution and consumption of resources’ Mosco 1996.
    • Holistic, historical, concerned with public/private balance, engages with moral and ethical Qs Hesmondhalgh 2002
major business segments
Major Business Segments
  • Seg 1 - Console + Handheld
      • Oligopoly and monopoly, licenses,
      • Prop. tech., money made on software..
      • dev. 18 months, 12-20 people, $3-5 million
      • Retail through shops
  • Seg 2 – PC (not MMOGS)
      • Numerous players, Common stnds, open archit.
      • dev. 15 months, 12-15 people, $1.5-3 m,
      • Retail – shops and some online elements
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Cont./
  • Seg. 3 – MMOGs
    • Oligopoly?
    • Open platform
    • Very expensive to dev. and ongoing costs (?)
    • Retail though shops + subs
  • Seg. 4 – Mini/Casual games
    • Numerous players and competing techs
    • Small teams, 3 months dev.
    • Competing revenue models..pay per play, subs, advertising,
trends vertical and horizontal integration
Trends - Vertical and Horizontal integration
  • Console segment
    • oligopoly in hardware..comps involved in all stages of the production cycle
  • Independent publishers
    • between 10 and 20 globally, acquiring distribution channels and buying into developers
  • Economies of scale & scope
licensing sequels
Licensing…& Sequels..
  • Trying to reduce risk and uncertainty of demand
  • Pre-sold properties Schatz 1993
    • Real world, TV, film,
  • In 2001 45% of all format games in UK licensed..
  • Growing the market or limiting innovation & reducing overall diversity??
final thoughts
..Final thoughts..
  • Focus on commerical production of games in US/UK primarily..not the full story
  • Size/scale increasingly nb at all stages although resistance at developer stage
  • Impacts on
    • diversity of titles,
    • price of product,
    • viability of independent developers and rate of start-ups
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More info..

www.comms.dcu.ie/kerra

www.stem.dcu.ie

www.gamedevelopers.ie

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