Authors’ final draft of a manuscript to be presented at EURAM 2010 – Rome, May, 2010. Alternative Reality Games Explorations1 Peter Zackariasson Gothenburg Research Institute Gothenburg University SE405 30 Gothenburg Sweden Peter@Zackariasson.Com Timothy L. Wilson Umeå School of Business Umeå University SE901 87 Umeå Sweden Tim.Wilson@usbe.umu.se Acknowledgement: We would like to thank the Royal Swedish Academy of Science for supporting this research project. 1 Authors’ final draft of a manuscript to be presented at EURAM 2010 – Rome, May, 2010. Alternative Reality Games Explorations Abstract We extend our interest in video games to make some exploratory observations on opportunities attendant Alternative Reality Games (ARGs). This sector is a genre of interactive narratives where the physical world is used as a platform, frequently involving other media, to encourage gamers to collectively solve puzzles. An analogy is made with the experience one reads about in the popular novel, The Da Vinci Code. The Beast, I Love Bees and The Art of the Heist are cited as examples of usage. Reflections are made along the lines of the one-time nature of ARGs, the segment they reach, the possible disassociation with purchases, expense and the potential failure of approaches. They are a cross between advertising and sales promotion because they bear a direct expense to the organization responsible for their commissioning. Their impact, however, has been along the lines of what one would expect from a publicity effort. Key Words: Entrepreneurial Marketing, Alternative Reality Games (ARGs), Video Games, Collective Problem Solving 1 Authors’ final draft of a manuscript to be presented at EURAM 2010 – Rome, May, 2010. Introduction We have been concerned with the video game industry for some time (Walfisz, Zackariasson and Wilson, 2006; Zackariasson, Wåhlin and Wilson, 2010; Zackariasson and Wilson, 2010; Zackariasson and Wilson, 2009; Zackariasson, Walfisz and Wilson, 2006; Zackariasson, Styhre and Wilson, 2006; Zackariasson and Wilson, 2004). It has been a fascinating coverage because the industry includes elements of rapid growth, individual efforts and entrepreneurship, technological development, international focus and a whimsical appeal of a youthful market. Our approach somewhat paralleled the two main production sectors of the market. That is, a substantial portion of our studies have been associated with the production and marketing of “conventional” games of the strategy variety (Walfisz, Zackariasson and Wilson, 2006; Zackariasson and Wilson, 2009; Zackariasson, Walfisz and Wilson, 2006; Zackariasson, Styhre and Wilson, 2006). There, the marketing concern was primarily along the lines of an internal pitch with subsequent development and afterward as the marketing of a consumer nondurable (Zackariasson and Wilson, 2009). Early on, however, interest was directed toward Massively Multiplayer Online Games (MMOGs). Initially our focus was on what these games really were. At that time, there was no consensus in that matter so when it was suggested that they might be services of an activity tourism type (Zackariasson and Wilson, 2004), there was some discussion of that approach. More recently, our speculation about the opportunities attendant marketing in these games has been described (Zackariasson, Wåhlin and Wilson, 2010). Clearly, this opportunity may carry marketing implications because marketers are given the opportunity to consider potential customers as they might like to be and also reach segments that they might otherwise not. 2 Authors’ final draft of a manuscript to be presented at EURAM 2010 – Rome, May, 2010. In this paper we would like to make some exploratory observations on opportunities attendant Alternative Reality Games (ARG). This sector is a genre of interactive narratives where the physical world is used as a platform, frequently also involving other media, to encourage gamers to collectively solve puzzles. Fans must piece together the narrative on their own; that is the “alternate reality” (Ruberg, 2009). In contrast to a traditional video game, an ARG is a real-time experience where the participants may, more or less, affect the plot of the game depending on their actions. These games have been, and are being, used to promote products and services. In the last three or four years, the number of ARGs going on at any one time has gone from a handful to around 30 (Waite, quoted in Ruberg, 2009). The topic thus appears appropriate for discussion and coverage at a Euram conference. Background The nature of ARGs In 2003 Doubleday published the popular novel The Da Vinci Code by Dan Brown (2003). It subsequently went on to sell 80 million copies worldwide and be translated into 44 different languages. Subsequently, it was made into a movie three years later, which was directed by Ron Howard and starring Tom Hanks. It grossed over $75 million the first weekend and over $750 million worldwide.2 Because of its popularity, the story line is familiar. Robert Langdon, a symbolist and assisted by Sophie Neveu, follows a series of clues that not only leads to the solution of a murder in the Louvre, but also uncovers the secret of the Holy Grail. If one considers oneself as Robert Langdon, assisted by a number of Sophie Nevers, then one gets the idea of what an Alternative Reality Game (ARG) is about. An ARG is a genre in which participants are collectively encouraged to solve puzzles. They do have similarities with other 2 Statistics come from http://en.wikipedia.org/wiki/The_Da_Vinci_Code#Film - Downloaded 2009-10-14. 3 Authors’ final draft of a manuscript to be presented at EURAM 2010 – Rome, May, 2010. video game genres. Just like any other game, in the production of an ARG the developer plans in detail the different parts of the game and its plot. When the game goes live though, “puppet masters” direct the events as they unfold. Actors many times also interact in real-time with participants to increase the realism of the ARG. The goal of a successful ARG is the blurring of boundary between what is part of the game and what is not part of the game; somewhat similar to what Michael Douglas’ character experienced in the film The Game (distributed by PolyGram and Buena Vista International 1997). Most commonly the elements of the ARG are dispersed throughout both the physical and digital worlds. Also among these elements are active agents, in the sense of initiating interaction with the gamer. Physical elements serve as clues and can be locations or objects. GPS, for example, many times is used to direct attention to a specific location. Objects such as phones, faxes, newspapers, ads or scribbling on a subway wall can also be used as elements of the game. Digital elements are mostly on the web where web pages can be used to hide challenges, but technology such as SMS and GPS also find their way into the action. Although the internet can be used in other ways, web pages, fake databases, web cameras, or other media based on internet technology find their way into the mix. Some relevant examples Although there were early examples of productions that could be called ARGs, the first of significance was The Beast (Handy 2005, McGonigal, 2003). In 1999 the film AI: Artificial Intelligence (distributed by Warner Bros. and DreamWorks 2001) was under production. When marketing this film Warner Bros. was forced to take extraordinary measures because, as the story goes, Steven Spielberg, the director, was refusing to share the production with anyone outside of his “inner circle”. The project to market the film landed at the desk of Jordan Weisman and Elan 4 Authors’ final draft of a manuscript to be presented at EURAM 2010 – Rome, May, 2010. Lee at Microsoft Game Studios. Although video games have had a close relationship with films for a long time, both Weisman and Lee had the ambition of reinventing this relationship. The initial spark for this reinvention came with the suggestion that the game itself would take a more active role in the lives of the gamers. “Wouldn’t it be cool, …if this was the game calling me? … Yeah, and someone on the other end instructs you to go meet a guy on the corner out there and give him a scrap of the menu!” (Handy 2005, 5) Over the next few months, Weisman and Lee developed a game consisting of a large number of puzzles that were to be buried in web sites, phony ads, faxes, e-mails and outgoing voicemail messages. They also involved Sean Stewart, a fantasy writer, as “wordsmith”. Stewart said that: “The point was initially to market the film and to create a world big enough for later video games to make sense in” (Handy 2005, 6). Chronologically, The Beast was designed to take place from modern days up until where the film starts, in the mid 22nd century. When the game later was launched there were somewhere between one million (McGonigal 2003) and three million (Handy 2005) people who involved themselves in these puzzles. Together they searched for information in the digital, as well as the physical world, aggregated information making it possible to collaborate, and broke down information into smaller pieces in order to find solutions – they worked as a “hive mind”, a collective intelligence (Lévy 1997) as it were in order to find solutions. Weisman and Lee explained at the 2002 Game Development Conference: “We created strings of puzzles that no single person could solve on their own, and we found to our delight it was working. The audience was forming teams, sharing ideas, writing applications, posting theories, arranging group meetings, programming distributed-client password crackers, creating art…” (cited in McGonigal 2003, 2) 5 Authors’ final draft of a manuscript to be presented at EURAM 2010 – Rome, May, 2010. While doing this they also involved themselves in the world and storyline of the forthcoming film AI. In 2001 when the film AI was launched the worldwide revenues of the film was about $236 million. This was considered a modest success, recouping only about twice its $100 million budget3. In 2004 the ARG, The Haunted Apiary or I Love Bees (McGonigal 2007), was launched from the same originators – this time as the company 42 Entertainment. This ARG was targeted toward marketing the video game Halo 2 that was released later that same year. Learning from their previous ARG this one was more elaborate and incorporated more physical puzzles to solve, as well as pre-recorded and live messages from actors. Its success is associated with subsequent sales of Halo 2. That is, within hours after Halo 2 was launched, it sold 2.4 million copies, reaping $125 million in sales. “We saw the internet was creating a kind of try-before-you-buy mentality… People expect to receive some value in advance of having to hand over their hard-earned cash. And so this whole concept was about how to create that emotional kind of attachment and demonstrate the value and quality of that experience before you buy the video game or a ticket to the movie.” (Weisman cited in Handy 2005, 7) The ARG was introduced, or actually it was not introduced at all to the gamers, in a cryptic web address in the trailer for the video game Halo 2. At the end of this trailer the web address ilovebees.com appeared below the Xbox logo. As people gravitated toward the web page the puppet master Jane McGonigal started to post cryptic messages on the page for the gamers to explore. The plot of the game was that an artificial intelligence of a crashed spaceship had found its way to the ilovebees.com web page. There it gave messages to the gamers about a future menace, rallying help to find allies to overcome this threat. 3 Data from Box Office Mojo, http://www.boxofficemojo.com/movies/?id=ai.htm - Downloaded 2009-10-8. 6 Authors’ final draft of a manuscript to be presented at EURAM 2010 – Rome, May, 2010. Although ARG has a cultural proximity to video games and films there is nothing in the design or form that limits ARG only to market these products. The Art of the Heist was an ARG to promote the car model Audi A3. This ARG started with a staged theft of an Audi A3 from an auto dealer at Park Avenue4. Although this “theft” was a staged simulation, the appearance for those walking by would have been of a real theft: smashed glass, security guards, chases, police tape, wanted posters and so on. Then days afterward, at the auto show, there were signs about the theft at the place where the first US Audi A3 was about to be displayed. This story spread amongst bloggers and later there were also billboard postings about the theft, asking for “your” help to locate the car. Not knowing if this was real or fake, thousands of people ventured into the Audi web site, there finding information that a company specialized in stolen art had been contracted to find the A3. This company’s web site, seemingly legitimate, contained more information enabling the viewers themselves to engage in the search of the stolen Audi A3. The summary of this example and the two previous ones is shown in Table 1. *** Table 1 Goes About Here. *** Uses in Marketing Uses of Alternative Realty Games for promoting products and services have seen an increase since the middle of the 1990s. Since then we have seen ARG promoting products as Windows Vista5, Nine Inch Nails album Year Zero (Rose 2007), TV-series Lost (Manly 2006), The Dark Knight film6, and the 2008 summer Olympics7. “Serious ARGs” have also been launched, in for example, World Without Oil on the projected oil shortage, or Tomorrow Calling (Demeter 2007) 4 A film describing this ARG can be found at http://mckinney.com/#/work/item,116/client,22/ - Downloaded 200910-8. 5 http://www.vanishingpointgame.com/ - Downloaded 2009-10-8. 6 http://whysoserious.com/ - Downloaded 2009-10-8. 7 http://www.thelostring.com/ - Downloaded 2009-10-8. 7 Authors’ final draft of a manuscript to be presented at EURAM 2010 – Rome, May, 2010. on future environmental themes and activism. Games are becoming more widespread, attracting new players and bigger clients (Ruberg, 2009). A summary of recent ARG action is given in Table 2. *** Table 2 Goes About Here. *** From our viewpoint, both the demographics of the participants and impact of these contributions make it plain that we have only seen the beginning of ARG for promotion purposes. It therefore behooves us to take a look at the need being met and the potential future this approach has. First, it must be appreciated that ARGs are a one-time thing. That is, these games take place in real-time and are not replayable. As much as one might want to go back and explore the activities involved in The Beast or The Art of the Heist, that opportunity is gone. Thus, they play a specific role in a promotional package. To date, commercially, they have performed well in introductions, i.e., calling attention to subsequent developments. They also seem to do well in promoting causes as suggested by calling attention to environmental themes. Commonly, the word “buzz” is used in their description. That designation seems entirely appropriate. Secondly, the approach hits a fairly select segment of potential participants. Although the overall segment would include puzzle solvers and internet communicators, it is likely to attract a heavy proportion of gamers. This segment is growing and becoming more homogeneous (ESA, 2009), but there are specific demographics, size and interests associated with this group. ESA (2009), for 8 Authors’ final draft of a manuscript to be presented at EURAM 2010 – Rome, May, 2010. instance, notes that 68 percent of homes play video games and 43 percent of the population buys games. The segment that might be called “serious” gamers is much smaller and probably is reflected in the numbers that participate in MMOGs, which appears to be about 16 percent of the gamer segment. Thus, one is looking at a potential of about 20 million US and so the participation of between one million (McGonigal 2003) and three million (Handy 2005) in the Beast is probably not out of line with this estimate – and may approach the upper limit for future use of ARGs. This number does not, however, represent the number of people exposed to the promotion. ARGs almost always have a tight inner ring of dedicated fans who do the footwork and a much wider circle of “lurkers” who simply watch the action unfold. Further, information may make its way into the mainstream as happened with I Love Bees in 2004 (NYT, 2004) and the Art of the Heist a year later. The “trick” of hiding the initial clue to enter the I Love Bees ARG clearly is a practice that could work both ways. It may indeed create buzz, but then it also severely limits early entry and perhaps focuses selection on serious gamers. A sketch of ARG participation is shown in Figure 1. *** Figure 1 Goes About Here. *** Third, just because an individual plays the game, it does not mean that person will buy the product. Skepticism exists on the value of doing such things (Moorehead, quoted in Baertlein, 2008). That is, ARG sponsors must use a very subtle marketing technique or risk turning players off. As is the case with any attention gathering promotion, success is gauged in the publicity received. Direct impact is expected to result in those products similar to games such video games themselves 9 Authors’ final draft of a manuscript to be presented at EURAM 2010 – Rome, May, 2010. (the Halo example) or movies (AI: Artificial Intelligence). It remains to be seen what will happen with sales of items such as Hondas. Forth, ARGs are not cheap. Although there have been low budget and even volunteer efforts, development of an ARG is after all similar to the development of other games. Presently, these costs are running in the range of $2 to 20 million. Additionally, there is the cost of maintaining the puppet master and support, which typically would be expected to be double development costs. Thus, returns that would recoup $4 to 40 million would justify use of an ARG approach. The barriers to entry remain very high for independent ARG creators, who can see their teams and finances overwhelmed by audience demand (Baertlein, 2008). The budget for the promotion of AI was $100 million,3 which would place an upper limit on ARG expenses seen to date. Further, although ARGs that require a subscription have been tried, generally these games are played for free. Thus, any coverage of ARG expense must come from additional profits from increased sales. Fifth, ARGs are not always successful. EA’s Majestic was cancelled in 2001 due to lack of players. There were extenuating circumstances of course. The launching after 9/11 was unfortunate, as was the decision to charge a fee, but the conclusion remains that just because these items are available, they do not necessarily attract an audience. In summary, ARGs are growing both in number and categories. Just as it is difficult to define what an ARG actually is, it is difficult to define where they fit in promotion. Clearly, they are a cross between advertising and sales promotion because they bear a direct expense to the organization responsible for their commissioning. Their impact, however, has been along 10 Authors’ final draft of a manuscript to be presented at EURAM 2010 – Rome, May, 2010. the lines of what one would expect from a publicity effort. That is, at the commercial level, they have been used to pique interest in an upcoming development and specifically brand awareness in some cases (Baertlein, 2008). They have a fairly distinct user segment, but that segment is enlarged both by “lurkers” and potentially attendant media publicity. They are not cheap and are a one-time thing. Thus, their use must be carefully integrated into the overall promotion of an item. Non-commercial use of the approach has been a recent phenomenon with applications toward environmental activism, charitable contributions and event promotion. These uses will grow as long as sponsors can be found who are interested in “gift marketing” (McGonigal quoted in Ruberg, 2009). Usage in education would seem a natural but seems to be an area slow in developing. In closing, we would like to rationalize/speculate on observed behavior when products or services are brought to market with an ARG affiliation. Primarily, this situation has been the case of an introductory nature. Thus, diffusion theory holds. One can therefore discuss the expected behavior of the three groups shown in Figure 1 as they are confronted with the three different offerings in Table 3 (cf. Rogers, 2003, 281). For video games or similar products, such as movies, ARG participants would be expected to have a propensity to readily buy the product. They thus would be the innovators and early adopters. The lurkers would also tend to be early adopters, and the opinion leaders (classically conservative) would be in this group. The buzzers and mediaites, which get the information by word of mouth or from the media, would likely constitute the early majority group as adopters. For other products, there is no certainty that either the ARG participants or lurkers would even buy them. Their role might just be to play/watch the game and enjoy the experience. Early adoption and opinion leaders might go further out from the participant center to the individuals who get the information through word- 11 Authors’ final draft of a manuscript to be presented at EURAM 2010 – Rome, May, 2010. of-mouth or the media. Finally, participants in the ARGs featuring charities and/or non-profits may be the primary target for support. Fundamentally, the ARG may be an educational vehicle and thus establish a relationship with them. The buzzers and mediaites conceivably would be rather detached and thus either laggards or non-adopters. *** Table 3 Goes About Here. *** 12 Authors’ final draft of a manuscript to be presented at EURAM 2010 – Rome, May, 2010. References Baertlein, L., 2008, “Alternate reality games blur reality and fiction”. Downloaded 2009-10-13. http://www.reuters.com/article/technologyNews/idUSN2945731720080530?pageNumber=2 &virtualBrandChannel=0 Brown, D., 2003, The Da Vinci code. New York: Doubleday. Dahlén, M., 2008, Nextopia: livet, lyckan och pengarna i förväntningssamhället. Stockholm: Volante QNB. Demeter N., 2007, “It’s tomorrow calling. Do you accept the charges?” Alternative Reality Gaming Network. Accessed Online 2009-10-8. Electronic Software Association (ESA), 2009, Essential facts about the computer and video game industry: 2009 sales, demographics and usage data. www.theesa.com/facts/pdfs/ESA_EF_2009.pdf - Downloaded 2009-10-13. Handy, A., 2005, “The buzzmakers”. East Bay Express Online. Jenkins, H., 2006, Convergence culture: Where old and new media collide. New York: New York University Press. Lévy, P., 1997, Collective intelligence: Mankind’s emerging world in cyberspace. Cambridge, MA: Perseus Books. Manly, L., 2006, “Running the really big show: ‘Lost’ Inc.” The New York Times. October 1. McGonigal, J., 2007, “Why I Love Bees: A case study in collective intelligence gaming”. The Ecology of Games: Connecting Youth, Games, and Learning. Online December 3, 199-227. McGonigal, J., 2003, “‘This Is Not a Game’: Immersive aesthetic and collective play”. Paper presented at MelbourneDAC, the 5th International Digital Arts and Culture Conference, May, Melbourne. NYT, 2004, “In a word: The year of (your catch phase here)”. The New York Times. 2004-12-26. Rose, F., 2007, “Secret websites, coded messages: The new world of immersive games”. Wired Magazine, 16(1). Accessed online 2009-10-8. Rogers, E. M., 2003, Diffusion of innovations, 5th ed. New York: The Free Press. Ruberg, B., 2009, “Serious fun”. Economist, 390 (March 7), 16. 13 Authors’ final draft of a manuscript to be presented at EURAM 2010 – Rome, May, 2010. Walfisz, M., Zackariasson, P. and Wilson, T. L. (2006). Real-Time strategy: Evolutionary game development. Business Horizons, 49 (6), 487-496. Zackariasson, P., Wåhlin, N. and Wilson, T. L. (2010). Virtual identities and market segmentation in marketing in and through Massively Multiplayer Online Games (MMOGs). 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IT University of Copenhagen. http://game.itu.dk. 14 Authors’ final draft of a manuscript to be presented at EURAM 2010 – Rome, May, 2010. Table 1 – Summary of ARG Examples Year ARG 2001 The Beast Connection The movie, AI: Artificial Intelligence – Warner Bros. & Dreamworld. 2004 Microsoft’s Xbox video game, Halo 2. 2005 The Haunted Apiary, or I Love Bees The Art of the Heist Honda U.S.’s Honda A3 Approach Extensive problem solving requiring a group approach. Puppet masters had to push to keep ahead. Ran for three months. War of the World’s type narrative broken into 30-60 segments broadcast over pay phones. Staged theft of A3 supported by display at auto show concerning theft. Web page provided information for search. 15 Comments Drew upwards of 3 million participants worldwide. About equal number of female to male participants. Inspired some participants to form creative groups. Departure from web site approach. Pushed people outdoors. Received more mainstream attention than previous efforts. Received extensive media placement. Bloggers directed recipients to web page. Authors’ final draft of a manuscript to be presented at EURAM 2010 – Rome, May, 2010. Table 2 – Summary of Recent ARG Action Game The Beast The Haunted Apiary The Art of the Heist The LOST Experience Vanishing Point Why So Serious World Without Oil Tomorrow Calling Find the Lost Ring Product Film: A.I.: Artificial Intelligence Video game: Halo 2 Launched 2001 2004 Car: Audi A3 2005 TV-series: Lost 2006 Software: Windows Vista Music: Nine Inch Nails album Year Zero Film: The Dark Knight Political: oil shortage Political: future environmental themes and activism Sports: 2008 summer Olympics 2007 2007 16 2007 2007 2007 2008 Authors’ final draft of a manuscript to be presented at EURAM 2010 – Rome, May, 2010. Buzzers & Mediaites Lurkers Participants Figure 1 – Sketch of ARG Participation 17 Authors’ final draft of a manuscript to be presented at EURAM 2010 – Rome, May, 2010. Role Participants Lurkers Buzzers & Mediaites Video Game or Close Innovators & Early Adopters Early Adopters – Opinion Leaders Early Majority Other Products Charities & Non-Profits Innovators & NonAdopters Early Adopters & Non-Adopters Early Adopters – Opinion Leaders Innovators, Early Adopters & Early Majority Late Majority Table 3 – Speculation on Role Players in Three Situations 18 Laggards & Non-Adopters