austin as a digital media nexus. presentation to the technology advisors group of austin
DESCRIPTION
September 2013 presentation to Austin's Technology Advisors Group presenting the current state of the video game and related industries, both globally and in Austin, Texas. The presentation looks at the game industry's market size, key players (especially in Austin), the shift from console and desktop computing to mobile gaming, technical challenges and opportunities.TRANSCRIPT
AUSTIN AS A DIGITAL MEDIA NEXUS Frank Coppersmith President of CapsonTechnology Capson Technology
Video Game Industry Today Video game
revenues will grow
to $70.4 billion
worldwide this year,
representing a� 6%
year-on-year
increase.
The number of
gamers is expected
to surpass 1.2 billion
by the end of the
year.
Global Games Market
Global Games Market Per Segment
Global Gamers
Austin Game Industry
Austin Game Industry Overview
Austin Companies
Captivate!
Game Industry Upheaval
• Social Gaming (Facebook) • Mobile Gaming (Smart Phones) • Rise of Free to Play & Virtual Goods • In Game Advertising • Digital Distribution • Gaming as a Service • Data Driven Design • New Console Generation
Traditional Publishing Flow Game Developers Game Publishers
Game Players
Game Retailers
Social Gaming
New gamers and mechanics
Easy to play * no winner/loser
Viral elements (play with your friends)
Free to play and virtual goods
New game platform
Adoption of Smartphones
Growth of Smartphone Usage
Mobile Gaming Growth
Mobile Games and Purchasers
Free To Play – In App Purchase
Free to Play – Growth of Model
In Game Advertising
Digital Distribution
Gaming as a Service
Device and Platform Agnostic
Increase Engagement and Stickiness
Improve Monetization
EA Origin & Valve’s “STEAM”
MMOs
Downloadable Content
Data Driven Design
New Console Generation
Kickstarter
Pre-sales reduce risk
3/4 of video game Kickstarters fail
Most video game fundraising is in 10s of thousands
Big $$$ for Top Games
Mobile Gaming
Growth
Development Costs
Competition
Over 800,000 Apps in the iOS Store
Opportunity Virtually unopposed growth opportunity
** Big publishers are distracted by new consoles
Plenty of “Blue Water” opportunities
** Opportunity to define a genre
Chance to go global
** China, Japan and Korea - high Android adoption
Unprecedented Margins
** Low headcount - can get to profit quickly
M&A / IPO Markets
** While Zynga has slowed things down, it will be back