Creativity in Video
Gaming Technology
Presentation by Horace Flournoy
Overview
• Video Gaming Industry Today
• Brief History of Inventive
Products
• Historical Errors in the industry
• Creativity in the Next Generation
• Basic Keys to Success
Video Gaming
Industry Overview
• The Innovator’s Dilemma - by
C.M. Christensen
• Improved over the economic
downturn
• Industry growth for the
foreseeable future
• Huge following and fan base
that is only growing (with time)…
Industry Overview
(cont.)
• Video game sales exceeded the
movie industry's annual box
office draw last year by $1 billion
• production costs ranging from
$1 million to $8 million
Present Success
Stories
• Sony, a major record label and
movie producer, got nearly 60% of its
profit last year from sales of
hardware and software for its latestgeneration video game console, the
PlayStation 2.
• Electronic Arts (The biggest
independent game maker) - brings in
more than $2 billion in revenue a
year and has been added to the
Standard & Poor's 500 index.
Present Success
Stories (cont.)
• Barnes & Noble -GameStop, the
video game retailer of which it
owns 60%, contributed as much
to profit as its banner
bookstores. Without video
games, Barnes & Noble would
have reported a loss.
• The graduating Student studying
Video Games!!
Brief History of
Inventive Products
(Sustaining
Technologies)
• "Sustaining" technology
improvements are those which seem
to be in line with the needs of the
current customers.
• Current customers key for video
game industry (vs. Sega Dreamcast)
• Current sometimes does not mean
most innovative.
• Nevertheless- gave the gamers what
they wanted.
Atari 2600
• most popular videogame
console of its day and it was
available until 1990
• on the market longer than any
other system in history
• Well marketed, Price ok for the
time
Nintendo
Entertainment
System
•
•
•
•
•
•
released in 1985
Average graphics at the time
Almost every developer
Simple, cartridge-based system
Not overly engineered, easy to use
Innovative products – Light gun,
power pad
Nintendo Gameboy
• Portable Game play
• Affordable prices
• Easy operation
Sony Playstation
• Easy Programming
• Excellent Marketing
• Great Graphics
Capabilities
• Market/Consumers
Ready
• Average Price
• Huge Developer Support
Historical Errors in the
Gaming Industry
(Disruptive
Technologies)
 "Disruptive" technology
developments are those which don't
immediately seem to meet the
established customer's demands
• Most Video Game system disruptive
technologies – Consumers not ready
for innovation, price, etc.
• Oftentimes better technology at the
time but with less support (vs. NES =
more support, less capable HW)
(Disruptive Technologies)
 Christensen writes that even the
best-managed companies, in
spite of their attention to
customers and continual
investment in new technology,
are susceptible to failure no
matter what the industry.
 Sega, Atari, 3DO, now in some
ways Nintendo
Magnavox
Odyssey
• Introduced in 1972 at a price of
$100.
• Players had to keep score by
themselves because the
machine was incapable of doing
so
• Lack of Marketing + Overpriced
for the time.
NEC Turbografx-16
• First system to have a CD
player attachment.
• Developers/Consumers not
ready for CD
•The console lost out in the
market to the Sega Genesis,
due partially to a smaller game
selection and a less powerful 8bit CPU.
Sega Dreamcast
• Fairly successful console
• Hardware Costs too much
for company
• Launched too late (or too
early) – Between product
cycles
• Innovative 3-D capabilities
• Not Marketed well
• First system with online
game play – but customers
not ready
Price Issues
• Price of the popular video game has
remained about the same for about
twenty years
• Profits are made by selling the
games*
• Overprice Consoles never made a
significant impact –
• Sega CDX
• 3DO REAL: “VERY strong system
with movie like graphics and a scary
price.”
But you Can’t Dictate
the Market…
• Both 3DO and Panasonic were
trying to make a profit off the
system while most other
companies rely on software
sales.*see above fact
• System Price: $1000.00
• 3DO RIP (1993-1996)
Creativity in the Next
Generation
• Online Gaming with file sharing
• Console as media center, complete
with ability burn DVDs, play MP3
music, and record TV.
• Will Integrate Digital Pictures, Movies,
etc.
• Portability and Wireless
communication between devices (eg.
PSP and PS3)
 “The technologies that are needed to
address the social and environmental
challenges associated with economic
growth can best be developed.”
User Interface Design
• Ability to wirelessly
communicate with the console
using a combination of
controllers and voice activated
commands
• Console will be able to detect
facial expressions (ex. Eye toy)
• Will consumers be Ready??
Ideas for Next
Generation
• Networked power will be able to
utilize a next-generation Internet
connection to take advantage of
Parallel Processing
• Will be able to serve as cheap
supercomputers (eg. Networked
PS2’s)
Basic Key to Success
•
•
•
•
Playability and Game play
How fun are the games?
And Price
Innovation only good when
these two above factors are met
• Timing, timing, timing!
(Innovative solutions can indeed
have very bad timing).
• Play By the Industry’s Rules!!