Online Gaming Industry
Jason Mcdaniel
Alvin Arreola
Takao tanaka
Danny Quach
James Mills
Goal
• What are the different types of platforms?
• How do these platforms generate revenue?
Modem
Wired Router or Gateway
Wireless Router
Online Gaming and Entertainment
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Silver Level (Free to Join)
HD Movies and TV Shows
Game Demos
Downloadable Arcade
Games
Game Add-Ons
Avatars and Fashion
Voice and Text Chat
Gold Membership Upgrade
 All of Silver plus:
 Photo Sharing
 Online Gaming with Friends
 Netflix Streaming
 Video Chat
 Facebook and Twitter
 Early access to demos
 Exclusive Discounts
How XBox Live Generates Revenue
Accessories to enhance experience
Subscriptions
Downloads – Using Microsoft Points
Games
Add-Ons
Avatar Accessories
Movies, TV Shows
Online Advertising
Yearly Revenue
Entertainment & Devices Division
$7.75 Billion
Game Downloads Revenue
$100 million
Subscriptions
20 Million active members
$1 billion in 5 years
Expected to reach $1B annually by
2013
• Launched November 2006
• Free service that can be accessed by Playstation 3 and
Playstation portable devices
• More than 40 million registered users
• Over $500 million in revenue in 2009
Playstation Store
• Interactive media and
entertainment source
• Download games, movies, TV
shows, and add-ons
• High Definition content
• New content added weekly
How PSN Generates Revenue
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PSN cards and wallet
PSN Spring 2010 sale
Qore online magazine subscription
Movies -rentals start at $2.99 and purchases start at
$9.99
• Games start at $9.99
• Advertising
PS3 Firmware 3.30 Update
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3D support for console
3D Games releasing in June 2010
Requires 3D capable TV
Sony hopes 3D technology will promote all aspects of
their products including PSN
Sony Online Service
• Built on the existing Playstation Network
• Will link Sony’s Bravia TVs, smart phones, and gaming
devices
• Promotes the relationship of Sony’s hardware and
software development teams
Nintendo Wii
• $49.99 is the average Wii game price
• Almost all Wii game has on-line system
Popular Game of Wii
Weekly Ranking of Wii Game
Name
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Genre
Monster Hunter Tri,
Hunting Action Game
New Super Mario Bros. Wii
Action game
Super Smash Bros. Brawl,
Action game
Red Steel 2,
Action RPG
Call of Duty: Modern Warfare,
Shooter video game
Fragile Dreams: Farewell Ruins of the Moon RPG
Mario Kart Wii,
Racing game
Endless Ocean: Blue World, Nintendo
Scuba diver game
Super Mario Galaxy,
3D Action game
The Legend of Zelda: Twilight Princess,
Action Adventure
What can players do on-line??
• Doing missions to clear the stage with on-line
members
– e.g. Monster hunter
• Fighting with on-line members
– e.g. Super Smash Bros. Brawl, Call of Duty
• Racing or competing against the time or the score
with on-line members
– e.g. Mario Kart Wii
• Trading items with on-line member
– e.g. Pokémon Battle Revolution
How Nintendo makes money with
using online contents
• Wii points
– Electronic money of Nintendo
Wii
– You can purchase Wii Points
through the Wii Shop Channel
– 100points = $1.00
– Wii (Nintendo) Points are used
to purchase a software on the
Wii Shop Channel
– You can download game by
using Wii points
How Nintendo makes money with
using online contents
• Company can charge money for game items
– e.g. Monster hunter
1. User can trade items with on-line player
2. Some items are free but some items are not
• The PC Gaming Alliance (PCGA) is a nonprofit
corporation whose mission is to promote PC
gaming worldwide
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Acer
AMD
Antec
Bigfoot
Capcom
Alienware
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Epic
Gamestop
Gametap
Gas Powered
Intel
Logitech
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Microsoft
Nvidia
Razer
Sony
WildTangent
And more…
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Initial Release September 12, 2003
Currently over 1100 games available
Surpassed 25 million active user accounts
Leader in digitally distributed games
EA
Activision
Ubisoft
THQ
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Sega
Codemasters
LucasArts
Capcom
• Bethesda
• 2KGames
• And many
more…
Steam Features
• Free client
• Instant purchase of games
• Access games from any computer with internet
• Automatic games updates
• Chat with friends
• Allows you to view which games your friends are
currently playing and join them
Steam Revenue
• Steamworks
• Sale of Digitally distributed games
• In game advertising
• Steam apparel
Blizzard Entertainment
• Software developer and publisher founded in
1991 as Silicon & Synapse
• Headquarters located in Irvine, CA
• Subsidiary of Activision Blizzard, the 3rd top
video game developer
• Most well known for WarCraft and StarCraft
series
• Breakthrough hit was original WarCraft title,
WarCraft: Orcs and Humans
Activision Blizzard Income
• 2009 net revenue was $4.28 billion
• 2007 net revenue of $1.1 billion and $517
million of operating income (as Blizzard)
World of Warcraft
• A Massively Multiplayer Online Role Playing
Game (MMORPG) released in 2004
• #1 global subscription based game
• Over 11 million subscribers
• Subscription cost of $14.99/month
• One time cost of game software and
expansions
StarCraft
• Over 11 million copies sold worldwide
• One time cost of game software and
expansion StarCraft: Brood War
• Free use of online multiplayer game play
through Battle.net
• Still very popular in South Korea, where
professional teams compete in tournaments
Future Games
• StarCraft II: Wings of Liberty
• Diablo III
Concluding Research
• Online gaming market is currently worth over $15 billion
• There are over 100 million people who play video games
online in which half play PC games
• Xbox Live holds the largest share of the console online
gaming market, while PS3 and Wii share the remainder
• The online gaming industry is expected to grow to about
$24.9 billion by 2013
Questions?