Tel-T 207 Lecture 19Outline of Last Lecture I. Important TermsII. AdvertisingOutline of Current Lecture II. Video Game IndustryCurrent Lecture- Video Game Industryo Console Largest platform Current console is the 7th generation It is a 2-sided marketo PC Steady platform Smaller popularity than console Innovation happens here RMT => F2P => digital distributiono Mobile The market is growing Most innovative Apps are growing Most growth is coming from hereo Arcade This industry is deado Video game industry is larger than music and movie industry Worth $70.4 billiono 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- MicrosofThese 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 anothero MMO- Massively multiplayer online Role-playing game Virtual economy- Big thing that happened was people make deals outside of game for things insidethe game- Ebay and PayPal were invented and made online transactions safer and easiero Publishers didn’t like this due to people making money on their intellectual propertyo Consumers didn’t like this because of cheating and quit the game becauseof it- RMT (Real Money Transactions) trade caused “inflation” in the game People created a new business model in 2000s- F2P- free to playo Owners of game selling items in game to consumers Facebook- API- application player interference- Social gameso 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 thingso Preys on your emotionso Market to children and then try to manipulate them into