console games new realities require new strategies...
TRANSCRIPT
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Moderator: Howard Donaldson, VP Studio Operations, Disney Interactive Studios
Panelists: Dan Tudge – VP & GM, Propaganda Games
Kelly Zmak – Former President, Radical Entertainment
Dan Winters – VP Developer Relations, Activision Blizzard
Adel Chaveleh – President/CEO, TimeGate Studios
CONSOLE GAMES – NEW REALITIES REQUIRE NEW STRATEGIES TO WIN
May 6, 2010
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Traditional console video game sales are falling
Publishers are slashing packaged goods titles
Major layoffs at indies and publisher-owned studios
Studios being shuttered
Soaring product development costs
Publishers looking to expand online
Is console development going away?
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Social, Online and Wireless Games Rising Fast
50 mil iphone/itouch devices
200 mil daily users
10x growth in 1 year
Social gaming to reach $1.3 bil in 2010
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North America
Video Game Software Sales ($ in Bil)
Global
73%72%
57%54%
2.1
2.7
9.4
13.7
According to Global Entertainment and Media Outlook 2009 – 2013 PwC
73%72%
57%54%
2.1
2.7
9.4
13.7
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Console Market
Is console development going away?
Has the console market changed from the last console generation? What are the new realities?
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Top Console Games
Top 20 dominated by blockbuster franchise sequels
Big budgets –$40M+ dev spend
BE = 2.8 mil units
High metacritic scores >85%
Hit title = top 20 /profitable
Majority of titles
Dev budget ave of $20M+
BE = 1.5 mil units
Metacritic score < 70%
Ave title = Loses money
Console Games today – Bigger Hits Required
Average Console Games
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Competitive Market
How do you compete in a market dominated by big budget blockbuster sequels?
What does it take to be a top 20 title?
Taking on the Big Boys
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Title Budgets
How big does your dev budget need to be?
What are some strategies for managing a tight budget?
Big Budget
Tight Budget
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Title Ratings - Metacritic
Game Rankings in 2009
Title Ratings by %
Only of few titles are rated Great
228
306
279
362
39% 41%32%
27%
4%2% 3% 1%
228
306
279
362 4%
39%
2%
41%
3%
32%
1%
27%
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Quality
How important is quality in today’s market?
How good does a title need to be?
What are the key ingredients for top quality?
Do all titles/genres need top quality to be successful?
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WW Console Installed Base (Units mil)
Console Online Opportunities
Online Customer Base(Mil customers)
?
% users online regularly 22%
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Console Opportunities
Next Gen
3-D
Motion Controllers
Online
OnLive
Other Entertainment (film, music , toys, etc)
Untapped territories
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Online Opportunities
Are there additional online opportunities for console games?
How significant are these opportunities?
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Studio Strategies to Win
What are the best strategies to position your development studio to win in today’s competitive market?