25. THE OLD WORLD
āConsumer Software, Services & Devicesā,
āEntertainment & Devicesā Division Proļ¬t/Loss
Lifetime results for this
division = $7.807B loss
27. THE OLD WORLD
āGamesā, āNetworked Products & Servicesā,
āConsumer Products & Servicesā
Results for this division
since 2000 = Ā„252.9B
loss (around $3.1B)
35. THE OLD WORLD IS LARGE BUT
SHRINKING FAST
ā¢ In summary;
ā¢ Investors are not showing conļ¬dence in the future of large traditional publishers
ā¢ Sony, Microsoft showing losses for console divisions over the last 10 years
ā¢ Nintendo in ādisarrayā
ā¢ Retail sales dropping year on year since 2009
ā¢ Major European retailer Game in serious trouble
ā¢ Casual & kids games on console and handhelds hit by an unseen force
36. THE DEATH OF DEDICATED ELECTRONICS HARDWARE
Down 17% Down 42.5% Down 32.6%
Down 20.5% Down 20.8%
45. THE NEW WORLD IS GROWING VERY
FAST
ā¢ In summary;
ā¢ Now 3 out of 5 of the worldās largest gaming companies distribute digitally, are
freemium focussed
ā¢ The audience sizes for a hit game has increased 20x on new platforms like FB, iOS
and Android
ā¢ New Mobile/Social platforms are driven by huge companies
ā¢ In Japan freemium social mobile has already overtaken the traditional business
46. THE LAST BIG CHANGE
When The Arcades Died, What Came Next?
51. THE LAST BIG CHANGE
The 1980ās
ā¢Arcades dominated
home experience
ā¢Better graphics
ā¢Bigger screens
ā¢Better controllers
52. THE LAST BIG CHANGE
The 1980ās
ā¢Arcades dominated
home experience
ā¢Better graphics
ā¢Bigger screens
ā¢Better controllers
53. THE LAST BIG CHANGE
The 1980ās
ā¢Arcades dominated
home experience
ā¢Better graphics
ā¢Bigger screens
ā¢Better controllers
54. THE LAST BIG CHANGE
The 1990ās
ā¢ Arcades start much more powerful
than home consoles
ā¢ Mid 90ās consoles and PC start
competing with textured 3D arcade
games
ā¢ Sonyās entry into the business - a
company 3.7x bigger than Nintendo
ā¢ 1998 Dreamcast launched, same as
Naomi system board, less memory
55. THE LAST BIG CHANGE
The 1990ās
ā¢ Arcades start much more powerful
than home consoles
ā¢ Mid 90ās consoles and PC start
competing with textured 3D arcade
games
ā¢ Sonyās entry into the business - a
company 3.7x bigger than Nintendo
ā¢ 1998 Dreamcast launched, same as
Naomi system board, less memory
56. THE LAST BIG CHANGE
The 1990ās
ā¢ Arcades start much more powerful
than home consoles
ā¢ Mid 90ās consoles and PC start
competing with textured 3D arcade
games
ā¢ Sonyās entry into the business - a
company 3.7x bigger than Nintendo
ā¢ 1998 Dreamcast launched, same as
Naomi system board, less memory
57. THE LAST BIG CHANGE
The 2000ās
ā¢ Home consoles now in parity or
above arcades in power
ā¢ Arcade still have better
controllers, bigger screens
ā¢ Microsoftās entry into the business
- a company 6x Sony, 12.7x
Nintendo
ā¢ Dead arcades - novelty
controllers/cabinets, 2D ļ¬ghters
58. THE LAST BIG CHANGE
The 2000ās
ā¢ Home consoles now in parity or
above arcades in power
ā¢ Arcade still have better
controllers, bigger screens
ā¢ Microsoftās entry into the business
- a company 6x Sony, 12.7x
Nintendo
ā¢ Dead arcades - novelty
controllers/cabinets, 2D ļ¬ghters
59. THE LAST BIG CHANGE
The 2000ās
ā¢ Home consoles now in parity or
above arcades in power
ā¢ Arcade still have better
controllers, bigger screens
ā¢ Microsoftās entry into the business
- a company 6x Sony, 12.7x
Nintendo
ā¢ Dead arcades - novelty
controllers/cabinets, 2D ļ¬ghters
60. THE TIPPING POINT
ā¢ Two big things happened;
1.Bigger companies entered the games business
ā¢ More marketing clout, grow the overall business
2.Chips got cheap enough and lower power enough
ā¢ Creating an āarcade experienceā in the home, that pulled in the arcade gamers
ā¢ Home consoles had always been cheaper and more convenient, but these advantages now
really mattered
ā¢ Worth noting arcades still often had bigger screens & always better controllers
61. THE NEXT BIG CHANGE
?
When The Consoles Die, What Comes Next?
62. THE NEXT BIG CHANGE
When The Consoles Die, What Comes Next?
63. THE DEATH OF DEDICATED ELECTRONICS HARDWARE
Down 17% Down 42.5% Down 32.6%
Down 20.5% Down 20.8%
65. ā¢ āSustaining Technologiesā
dominate
ā¢ Disruptive tech enters the
market
ā¢ Incumbents donāt take it
seriously
ā¢ It rapidly increases in
performance
ā¢ Disruptive tech replaces
all usages
66. ā¢ āSustaining Technologiesā
dominate
Large scale businesses
computing ā¢ Disruptive tech enters the
Scientiļ¬c
market
computing
Personal ā¢ Incumbents donāt take it
Computer seriously
Small business
computing
ā¢ It rapidly increases in
performance
Hobby computing
ā¢ Disruptive tech replaces
all usages
67. ā¢ āSustaining Technologiesā
dominate
AAA
Console Games ā¢ Disruptive tech enters the
market
Handheld Games
iOS/Android ā¢ Incumbents donāt take it
devices seriously
ā¢ It rapidly increases in
Kids Games performance
Casual Phone
Games ā¢ Disruptive tech replaces
all usages
68. We are here ā¢ āSustaining Technologiesā
dominate
AAA
Console Games ā¢ Disruptive tech enters the
market
Handheld Games
iOS/Android ā¢ Incumbents donāt take it
devices seriously
ā¢ It rapidly increases in
Kids Games performance
Casual Phone
Games ā¢ Disruptive tech replaces
all usages
73. WHATāS HAPPENING RIGHT NOW?
ā¢ Two big things are happening;
1.Bigger companies have entered the games business
ā¢ More marketing clout grows the overall business
2.Chips are getting cheap enough and lower power enough
ā¢ Creating a āconsole experienceā on the move, pulling in the console gamers
ā¢ Mobile games have always been cheaper and more convenient, but these advantages now
really matter
ā¢ Worth noting that consoles will still often had bigger screens & always better controllers
78. HIDEO KOJIMA
āGamers should be able to take the
experience with them in their
living rooms, on the go, when
they travel -- wherever they are
and whenever they want to play. It
should be the same software and the
same experience,ā
79. GABE NEWELL
āI suspect Apple will launch a living
room product that redeļ¬nes people's
expectations really strongly and the
notion of a separate console
platform will disappearā
80. KOTAKU
āTim Cook holds the future of
gaming in his hands.ā
82. CONSOLES WONT DIE - CINEMA
WASN'T KILLED BY TV!
% of the US population who visited the cinema on a weekly basis (Michelle Pautz, Elon University, 2002)
83. CONSOLES WONT DIE - CINEMA
WASN'T KILLED BY TV!
Total UK cinema attendance (British Film Institute, Cinema Advertising Association & Rentrack EDI)
84. CONSOLES WONT DIE - CINEMA
WASN'T KILLED BY TV!
UK box ofļ¬ce cinema revenue as a % of GDP (Bakker 2008 and ONS)
85. CINEMA WAS CRUSHED BY TV
ā¢ The āplatform holderā (cinema) didnāt do ok - thousands of cinemas closed down
ā¢ The ācontent peopleā (movie studios/distributors) did ok
ā¢ Made movies available on the lower-res āfree to watchā TV and āfor hireā VHS
platforms
ā¢ Games content developers need to do the same - move content to new low-res
platforms - or we will suffer the same fate as the cinema