Tel T 207 Lecture 19 Outline of Last Lecture I Important Terms II Advertising Outline of Current Lecture II Video Game Industry Current Lecture Video Game Industry o Console Largest platform Current console is the 7th generation It is a 2 sided market o PC Steady platform Smaller popularity than console Innovation happens here RMT F2P digital distribution o Mobile The market is growing Most innovative Apps are growing Most growth is coming from here o Arcade This industry is dead o Video game industry is larger than music and movie industry Worth 70 4 billion o How are games made Team of inventors come up with idea Developer goes to publisher for money If published it will go to retail Big publishers EA Activision Blizzard Ubisof Capcom Sony Microsof These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute o Console Industry Comes up with sofware Publisher pays Money made off of licenses not the sales of consoles This is a 2 sided market Publishers care about number of consumers and number of competitors Consumers care about number of games and game quality Both sides are dependent upon one another o MMO Massively multiplayer online Role playing game Virtual economy Big thing that happened was people make deals outside of game for things inside the game Ebay and PayPal were invented and made online transactions safer and easier o Publishers didn t like this due to people making money on their intellectual property o Consumers didn t like this because of cheating and quit the game because of it RMT Real Money Transactions trade caused inflation in the game People created a new business model in 2000s F2P free to play o Owners of game selling items in game to consumers Facebook API application player interference Social games o Mobile Platform Apple Iphones and app store controlled quality of app releases like consoles Can either download a free app pay for an app or pay for aid within the app Most innovative and where most growth is coming from F2P in app purchases Considered to have a negative impact on the game create inflation etc Puts you in a psychologically weak position and then tries to sell you things o Preys on your emotions o Market to children and then try to manipulate them into buying