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Sse indie europe_group6b

  1. 1. Indie Games - Competitor Analysis and Network Analysis in Europe/US<br />Group 6b: Borowiec, Robert; Bywall, Erik; Gilmark, Niklas; Hulsy, Patrick<br />
  2. 2. Executive Summary<br /><ul><li>What is Indie?
  3. 3. Network Analysis
  4. 4. Competitor Analysis
  5. 5. Marklund Games
  6. 6. Conclusion
  7. 7. References</li></li></ul><li>What is Indie?<br /><ul><li>The process of develop games without financial interference from a publisher.
  8. 8. Often, not always, driven by the fact that it’s fun rather than the money.
  9. 9. Freelance, the game industry’s photographer.
  10. 10. Often a small company or self-employed.</li></li></ul><li>Network Analysis - Difficult market<br />How to monetize indie game developers effort?<br />Free-to-play<br /><ul><li>Asking player to donate
  11. 11. Adding extra content for sale
  12. 12. Ingame advertisement</li></ul> Trial/demo<br /><ul><li>Paytounlockconent</li></ul>Full game<br /><ul><li>Distributing the game on digital marketplaces, sharing revenue</li></li></ul><li>Network Analysis - Purpose and goal<br /><ul><li>Recognition eventually leading to land publishers and other distribution deals</li></ul>"The two developers attribute the game's success to their blog and early web presence, as well as the awards it won at the Independent Games Festival at the Game Developers Conference in 2007, causing publishers who did not respond to their requests to take notice.“ Sahana Mysore, “How the World of Goo became one of the indie video game hits of 2008”1<br />Held annually, $20,000 grand prize, others ranging from $2000 to $3000, total $50,0002<br /><ul><li>Doing what you like and are passionate about</li></ul>Dedication<br />&<br />Passion<br />Crucial, most cases something else to pay bills<br />“If you don’t have enough passion for the game you are going to make that you are willing to quit your job to get it done, then you probably should not try to make it”<br />Jeff Tunnell, ”What Is My Game’s Sales Potential?”3<br />
  13. 13. Network Analysis – Co-creation<br />No point in competingwithtriple A developers<br />Usergeneratedcontent<br />Minecraft<br />- createsomethingunique- push boundaries- take risks- explore and experiment<br />Indie game developershavelimited budgets, rely on wordofmouth and pr<br />Minecraftestablished fan base prior to release, allowedalphatesting, now a communityofcloseto 4 million users/testers4<br />Result: viral advertisement, media exposure, co-createdcontent(feedback, user suggestions, bug reportsetc)<br />Co-creation in network<br />Game engines, like TGE (Torque game engine), that charge $100 for the source code<br />"World domination through collaboration", help and stand up for Indie game developers, instead of selling their engine for $500,000 like id's Quake engine5<br />
  14. 14. Competitor Analysis<br />“Games are an important medium for communication. They have a mode of expression that's very different from what other media can do. However, the mainstream industry does not spend much effort exploring the expressive power of games; that's where the indies come in. Indies can make whatever games they want to make, because they feel those games are interesting -- which is something the mainstream industry is no longer capable of.” - Jonathan Blow, Number-None (Braid)6<br /><ul><li>The strength of indie game developers: uniquely innovative individuals less concerned about money and more about creativity
  15. 15. The problem for indie game developers: very difficult to generate profits or get games noticed</li></li></ul><li>What is the Indie business model<br /><ul><li>Create and then sell games through different platforms, each with its own pros and cons
  16. 16. PC Downloads
  17. 17. The Web
  18. 18. XBOX
  19. 19. Sell to Sony or Nintendo
  20. 20. PC Downloads
  21. 21. Oldest platform for PC gaming
  22. 22. Problem: Shrinking market and difficulty getting noticed
  23. 23. Russell Carroll, Founder of Game Tunnel, Indie Games Review magazine:</li></ul>“Flash games have become very popular. Indie I think is still viable through the downloadable parts of the consoles, and if they cross-over well enough in the casual markets. Some indie games, like hard core strategy and RPG fill a niche that isn't filled otherwise, so they will continue to do well I believe. Indie as a general broad term I believe is going through some growing pains.” 7<br />
  24. 24. What is the Indie business model<br /><ul><li>The Web
  25. 25. The most radical innovation occurring there
  26. 26. However, difficult to monetize and intellectual property theft is high
  27. 27. Opportunities exist with GoogleAds, MochiAds, and in partnership with other indie developers like Nitrome8
  28. 28. XBOX
  29. 29. Some success stories like N+
  30. 30. However, Microsoft gets anywhere from 35% to 60% of the revenue generated
  31. 31. Even most popular games like Rocketmen: Axis of Evil and Commander: Attack of the Genos have not broken even9
  32. 32. Sell to Sony or Nintendo
  33. 33. High development costs of games and intense focus on violent blockbusters like Manhunt10</li></li></ul><li>So what is the most profitable model?<br /><ul><li>The biggest problem facing indie game developers: visibility
  34. 34. If an indie developer is known already: Most lucrative method is selling directly from the Web because costs are controlled
  35. 35. With no visibility: Consider using third party distribution.11</li></li></ul><li>Jocce Marklund: An indie game developer<br /><ul><li>Recentlygraduated
  36. 36. Goaltobecomerecognizedratherthanrich
  37. 37. Polished, small games thatpeoplearewillingtopay for
  38. 38. ”Yourgrandmashould be abletoinstantlyunderstand and play the game”
  39. 39. First game publishedyesterday at Xbox live</li></li></ul><li>Marklund Games – Twang<br />
  40. 40. Conclusion<br /><ul><li>Important part of the game industry
  41. 41. Unique energy
  42. 42. Independent development
  43. 43. Help ensuring the evolution of future games
  44. 44. Europe vs. US
  45. 45. Small differences due to shared communities and co-creation
  46. 46. US however has a small advantage as a result of hosting a majority of competitions and awards</li></li></ul><li>Bibliography<br />http://venturebeat.com/2009/01/02/the-world-of-goo-became-one-of-the-indie-hits-of-2008/<br />http://www.igf.com/01about.html<br />http://makeitbigingames.com/2009/01/what-is-my-games-sales-potential/<br />http://www.minecraft.net/stats.jsp<br />http://makeitbigingames.com/2009/09/torque-game-engine-enters-retirement-bittersweet-for-me/<br />http://www.indiegames.com/what.php<br />http://www.indiegames.com/blog/2008/01/interview_gametunnel_owner_rus.html<br />http://www.gamasutra.com/view/feature/3640/the_state_of_indie_gaming.php?page=3<br />http://www.gamasutra.com/view/feature/3640/the_state_of_indie_gaming.php?page=4<br />http://www.joystiq.com/2007/11/01/dr-phil-talks-manhunt-but-steinberg-steals-the-show/<br />http://www.helium.com/items/937035-revenue-streams-for-indie-computer-game-developers?page=2<br />Additionalreferences<br /><ul><li>http://andrewcarvalho.com/commentary/indie-development-and-the-business-model/
  47. 47. http://edykajang.com/tag/indie-game-developer-survival-tips
  48. 48. http://jeff-vogel.blogspot.com/2009/06/indie-games-still-too-cheap-getting.html
  49. 49. http://www.besttechie.net/2009/07/20/microsofts-xbox-360-indie-games-has-huge-potential/
  50. 50. http://www.gamerbytes.com/2009/03/gamerbytes_analysis_xna_commun.php
  51. 51. http://www.gamepodunk.com/blog/89/entry-534-digital-distribution-the-future/
  52. 52. http://gametheoryonline.com/2010/10/07/why-user-generated-content-hasnt-boomed/
  53. 53. http://jeff-vogel.blogspot.com/2009/04/indie-games-should-cost-more-pt-2.html
  54. 54. http://www.gossipgamers.com/publishers-angry-at-amazons-999-game-download/
  55. 55. http://www.gamasutra.com/php-bin/news_index.php?story=19620</li>

Notas do Editor

  • Difficult market/business, find ways to get paid that don’t affect the game pricePrices are dropping, price-war between games portals, everyone lowering the barAlternative to these portals; portals that don’t force developers to sell their work for a pittance; steam, xbox live marketplace, playstationstore, app store, android market etc.Usually around a 30/70 splitFreeware: constantly remind users on the game website or in the game to donatethrow in incentives to encourage donation like DLC&apos;s or even merchandise (or charge for)Try parts of the gameCombination ofabove
  • Brand-awareness
  • because of said passion and dedication, indie developers have to be unique, explore and experiment (can take risks, no publisher restricting them etc)one result of this is increased use of user generated content -&gt; MINECRAFTMarkus Persson, creator of Minecraft, thousands of testers while game was still in early development (alpha phase)massive community, lots of feedback, not only spreading the word but helping developing the game (co-creating, bugs, suggestions etc)--in a way there exist a lot of co-creation of value with the user as soon as the game gets release on any marketplace, the snow ball effect applies, the more you sell the more the word will spread and the higher up the game will end up on different lists and the more purchases you get.
  • As difficult as it is to maximize profit as an indie game developer, the indie game community will sustain itself in the industry due the unique energy and innovation independent developers bring to game creation. While indie game developers will never gain revenues similar to video game giants like Nintendo and Sony, their contribution to revolutionizing video game will ensure that this industry remains on the cutting edge of technological advancementbut that the US has a slight advantage because the awards are usually held there

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