Games Culture as Business A Short Idea Presentation
Pasi Eronen, Jari J채rvel채 June 13, 2006
Contents z z z z z
Executive Summary Basis for the Idea Key Ideas Markets SWOT analysis of the Idea
Executive Summary z z
The cultural aspect of gaming is still very much a virgin market. There is not any “one-stop” place in web, where a game-enthusiast could buy all the games related products. z
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Figures, posters, CD’s, Movies, T-shirts, etc.
Neither is there a consultancy service, which could help the game producers to create a series of accessories coming to markets with the game itself. A Company having an access to network of suppliers producing gaming related materials can also sell that network’s services to the game producers.
Basis for the Idea (1/3) z
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Video games have been a part of lifestyle in developed countries since late 1970’s. Nowadays console and computer gaming is turning from a sub-culture to become a part of mainstream cultural activities similarly to movies. Games are not anymore just a manly hobby, but games such as Sims have brought gaming accessible to wider audience. Neither are games just for “the kids� anymore, the average age for gamers is already well over 30 years.
Basis for the Idea (2/3) z
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Game characters such as Mario from Mario Bros or Lara Croft from Tomb Raider are part of the modern pop culture and known also outside their original context. Similarly icons from real world have entered the virtual world of gaming, especially in sports games such as Electronic Arts’ NFL and NHL series. As gaming is becoming a more matured phenomena, there is also a strong rise of retro movement, when older gamers are remembering their roots.
Basis for the Idea (3/3) z
Games and gaming as a serious business has grown tremendously z
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Over 7 billion dollars market in United States alone Size of the market is comparable to the box-office sales of movie industry
In movie industry, a lot of income is coming through selling licensed accessories Æ Game industry could work in the similar way
Key Ideas (1/2) z
To create a web-shop for game enthusiasts z
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To buy game “gear” and accessories z T-shirts, Posters, Game soundtracks, Game related movies, Game character figures, outfits, furniture, etc… To buy retro-gaming stuff z Old gaming machines (Nintendo Famicom, Commodore 64, Video games) as ready-made packages. z Nintendo’s Game&Watch games, old digital wristwatches with games, etc… The idea is to offer gamers a chance to show the gaming hobby in their lives through “game-gear”. z Gaming as a way of living To let other interested to take part in the gaming culture for example through clothing or interior design z Gaming as a fashion
Key Ideas (2/2) z
To create a consultancy service for companies producing games z
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In order to realize a web-shop, there must be an established network of suppliers producing the sold items. This network can be used also to produce new products for game companies Creation of new products in collaboration with game companies and companies producing the items z Consulting and bridge-building between game companies and product suppliers z Licensing, creating, and selling products ƒ
Full-service to the game companies
Markets z
The market is very sizable even in US alone, but there is huge potential in many other countries z z z
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New ways for gaming coming up, creating even more market potential z z
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Western and Northern Europe (incl. UK) Japan and South Korea Canada and Australia
Mobile gaming Community-based gaming in Internet
New generations of people are introduced into the gaming all the time, and developing countries are also following quickly Potential to bring business also to the real-world (branded store chain)
SWOT - Strengths z
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The games and culture surrounding them is maturing from sub-culture to a mainstream phenomena with lots of interest from the public. The market is new, there is not any easily located competition at the moment. The market is global, instead of being local, with huge potential The business can be evolved from special interest web-shop to higher profit service business. The owners of the idea are deeply immersed in the computer and console gaming world.
SWOT - Weaknessis z
The owners of the idea have not ran their own business before. z
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The owners of the idea do not have the capital needed to establish an international web-based business. z
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Need for Venture Capitalist
The owners of the idea do not have established networks of their own to start running the business. z
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Need for outside expertise
Need for networking
Establishing a new, internationally branded web-shop is very expensive and takes a long period of time. Idea is rather simple to be copied by competitors.
SWOT - Opportunities z z
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Size of the potential market is an opportunity alone. Unexplored market - especially in the consultation, licensing, and production of games’ side products. Room for being creative and have fun, while doing serious business at the same timeposters from ”old skool” games, renovate your home to be like the one at Sims, etc… Business would be a needed service to a whole games related community
SWOT - Threats z
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No competitors that could be easily located, is there really a market? Is there enough products created for games available at the moment? In the case of the retro stuff (hardware), is there room for large enough margins to do profitable business, when buying items for sale from customers? The start-up like this needs a lot of money for the first years, is there some available for Internet related start-ups at the moment?
References z
The Entertainment Software Association (ESA) (2006) The Essential Facts about the Computer and Video Game Industry. Paper is available online, URL: http://www.theesa.org/