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What Businesses are
Learning from the
World of Games
Kevin Werbach
The Wharton School
Penn Homecoming
November 2011
F O R T H E W I N
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A Famous Growth Story
Place a single grain of rice on the first square of a chessboard.
Double the amount on each subsequent square.
How many grains in total at the end of the board?
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A Famous Growth Story
Place a single grain of rice on the first square of a chessboard.
Double the amount on each subsequent square.
How many grains in total at the end of the board?
18,446,744,073,709,551,615
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Place a single grain of rice on the first square of a chessboard.
Double the amount on each subsequent square.
How many grains in total at the end of the board?
18,446,744,073,709,551,615
A Famous Games Story
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A Contemporary Growth Story
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Growth
Zero to 100 million users in 41 days
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Growth
http://blogs.wsj.com/venturecapital/2011/02/26/facebook-groupon-zynga-off-the-chart-revenue/
“Zynga’s profit was also about $400 million in 2010, only its third full year.”
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(aka “WoW”) Massively Multiplayer Online Game
11+ million players; >$1 billion annual revenue
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how?
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first, let’s play a game
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Look in your wallet or purse.
Pull out the oldest coin (just one).
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Who thinks they have
the oldest coin in the room
(raise your hand)?
http://www.flickr.com/photos/uhuru1701/2247520563
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Winner!
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GAME 2:
With your teammates,
make exactly 200 using either
the denominations or the
last two digits of the date.
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Which was a better game?
What made the games fun (or not)?
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Why is this Girl so Excited?
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fun
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fun games are
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fun digital games are designed to be
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fun designed to be
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fun designed to be
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fun designed to be
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fun designed to be
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growth of digital games
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in the beginning…
…AKA 1972
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And, the most successful video game of all time…
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Windows Solitaire:
9 billion hours in 2003
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Today
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Games Today
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…and mobile, too
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…and social, too
…and casual.
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“So we put it in a feature we
can build in a week – it’s a
ghetto build we AB test it, we
flow test it, we put it out to one
percent. We built a data
warehouse with a testing
platform so we’re running
several hundred tests at any
given time for every one of our
games. And no single user has
more than one test.” http://grattisfaction.com/2010/01/ how-zynga-does-customer-development-minimum-viable-product/
Mark Pincus Founder & CEO, Zynga Wharton alumnus
Digital Allows Feedback Loops
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Put it Together = Monster Growth
Zero to 100 million users in 41 days
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Overall Games Market
Source: Digi-Capital
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Games are 21st Century Media
In 2011, the games industry will generate
double Hollywood box office revenues.
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Games are 21st Century Media
97% of kids 12-17 play videogames (Pew 2008)
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lessons (for business)?
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Games for Business
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fun designed to be
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fun designed to be
what else
might be
?
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gamification
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“Suddenly, gamification is the hot new business concept, with many of the world’s most admired companies signing on.”
- Alex Konrad, Fortune, Oct. 17, 2011
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Gamification is…
The use of game elements and game design techniques in non-game contexts.
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3
keys
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design points
interest curves
competition
narrative
challenges
appointments
rankings
surprise
customization
quests
achievements
avatars
collections
social experiences
etc.
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“So we put it in a feature we
can build in a week – it’s a
ghetto build we AB test it, we
flow test it, we put it out to one
percent. We built a data
warehouse with a testing
platform so we’re running
several hundred tests at any
given time for every one of our
games. And no single user has
more than one test.” http://grattisfaction.com/2010/01/how-zynga-does-customer-development-minimum-viable-product/
analytics
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motivation • competence (mastery)
• autonomy (meaningful choices)
• relatedness (social, purpose)
= Intrinsic engagement
Source: http://www.despair.com/motivation.html
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http://www.gamifyforthewin.com
Twitter: @gamifyforthewin