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Team Xtreme

Industry: Media Area of Focus: Electronic Gaming

Sud Sub

on 23 August 2010

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Transcript of Team Xtreme

Strategic Group Mapping &
New Product Placement Storyboard Trends in the Industry
Objective and Industry Analysis
Insurgents vs Incumbents Battle
Current state of the Industry
Strategic Positioning and Mapping
Team Xtreme’s Take on the Future of the Gaming Industry Current state of the Gaming Industry Amount of time gamers spend playing online games = 3 Billion hours per week
Opening day sales of “Grand Theft Auto” current release = $540 Million dollars
A broader range of people are now taking part in “gaming” and spending more time playing games, yet the industry is currently facing declines in revenue and the key players within the industry are under increased pressure to increase demand of their products
Trends in the Gaming industry Trend #1: Gaming is Experiencing a Rise in Audience Attention The rising popularity of gaming is affecting entertainment habits of users, particularly use of television.
Traditional media companies are likely to increasingly invest in gaming as a source of long-term growth.
Popularity of new genres, such as party and music increased gaming on new platforms such as smartphones, and innovative game controllers with simple game play driving more consumers to gaming.
Trend #2: Innovative accessories Companies are growing their accessory launches such as steering wheels, the Wii Fit platform, Wii Fit Mat, guitar, Activision’s Tony Hawk Skateboard and cameras.
After the success of innovative controllers from Nintendo driving Wii to a market-leading position, Sony and Microsoft unveiled new controller systems to broaden the reach of their consoles
Trend #3: Continued Increase in Online Gaming and In-game advertising
More people have turned to online gaming as a cheaper form of entertainment in the economic downturn.
Online gaming is attracting more female users. About 57 percent of females play online games.
Growth of online games and the online capability of consoles are spurring in-game ad growth. It provides several benefits to advertisers such as scalability, accountability and positive brand associations across all demographics.
Trend #4: Portable and 3D gaming Game applications for the smartphones are driving the portable and mobile gaming market as the growth of handheld console-based game sales begin to taper off.
Console manufacturers are rolling out streaming features at an accelerated pace. Microsoft is at the forefront in expanding streaming and social features on Xbox consoles.
Further additions to consoles include Internet TV, 3D TV, Virtual reality
Profile of Gamers, By Gender & Age The interactive games market is
expanding due to more female players.
Gaming Market Share Interactive Gaming Industry: Value Chain Gaming History Era1: Early days-Early 80’s
Era2: Mid 80’s-2000 Era 3: 2000 - Present day
Current State of the Gaming Industry: Consoles Cumulative sales in gaming consoles: 60 million units

Network Effects: Consoles are only as good as the games developed for them entrants must establish relationships with developers and licensors (the network ‘hubs’)

In 2006, Nintendo disrupted the market with the Wii console, but is losing market share since 3/2009
Current State of the Gaming Industry: Online Online gaming is a force in the industry to the tune of $13B in 2009

Social networking games are rising fast

200M people play games on Facebook...

...400M people use Facebook...

... 3 years ago, only 40M people used Facebook!

Porter's 5 Forces Macro Trends Bargaining power of suppliers of HW (manufacturers) is LOW since Nintendo, Microsoft, & Sony wield the power
Bargaining power of suppliers of SW is LOW

Threat of substitutes is HIGH since gaming is but one available form of entertainment

Bargaining power of customers is MEDIUM – switching costs are low and choices abundant but consumers are many and widely distributed

Rivalry is HIGH with a large number of competitors in the online space and three strong competitors in the console space

Threat of new entrants is HIGH in SW since barriers are low and there is a lot of $ to be made; LOW in HW due to dominant brands

People still like - no, LOVE - their gadgets

Consumer electronics: $165B in 2009 and expected to grow modestly in 2010 (CEA)

Estimated # of iPads sold...

...in the first month: > 1M...

... in the first day: 350K.

Disposable personal income in the U.S. remains flat BUT...

Consumer spending increased 3.6% in the US in Q1 2010, as a result of increased consumer confidence.

Value discipline that gaming companies compete on: Product Leadership

Structure: FLAT - decentralize decision-making to spur Innovation

Focus on R&D and outsource any manufacturing

Form strategic alliances: content developers and owners of communications infrastructure

In consoles, must be scale-ready firm with a strong brand Organizational Requirements Experience the Missing Dimension Accept the
New Normal Video Courtesy: MSFT Windows ME Intro Edited Objective This canvas will walk you through an overview and trends within the Gaming Industry

The key players based on revenue and their hot product development areas.
The Gaming Value Chain
Team Xtreme’s take on the future of this industry. Incumbents vs Insurgents We are exploring Cisco as an insurgent because we believe that they will be able to leverage their technologies that connect people in innovative ways as a complement to the cloud computing industry—games will be hosted on the cloud and Cisco will invent the medium that delivers a unique gaming experience (3D, enhanced realism) from the cloud to the users. Future of the Gaming Industry Value Creation Customer: Our adoption curve and WTP will be driven by the gaming enthusiasts. Most revenues will be generated in the overseas market
Firm: The platform creators will open the platform to all content creators. Our value proposition is the technology to recreate life like imagery
Supplier: We will not despise any incumbent as every person who has any content will be a partner. Their value will be enhanced by being available on the NEW network. The ExtreME network
Strategic Group Mapping of exisiting
Incumbents Strategic Positioning of Insurgent's Product Strategy Canvas - Unique Attributes Strategy Canvas-4 Actions New Normal of 3D Tech
As opposed to the virtual technology explosion, its all about bringing Life like visual imagery to your homes without any visual aids
Elminating the need of having to go to a place or do a particular activity to play a game, ease of access to 3D tech on an as is where is basis
Seamless Convergence
Improvisation in the presentation side of media, to accept anybody’s content. “We will port it if you offer it” mentality
The availability of content in a completely universal manner, to both user groups and the game developers
Disruptive Technology The proposed of technology of revolutionizing the Game content rendition in 3D format has long been underway. With business and certain telemetry/astronomy labs perfecting the technique if interactive 3D technology, we hope to revolutionize the Gaming space with this technology.

The commercialization of this technology will probably be hindered by the huge upfront cost of production and bottlenecks due to existing console manufacturers. But, time and again, the market has responded positively to "nextgen" gaming devices as long as there is a unique value proposition.

To know more information pertaining to your specific interest as a PARTNER, INVESTOR or CONSUMER, read the tabbed microsite below.

-Team Xtreme/2010 EDGE
TEAM T R E M E Sumit Deo
Mridul Katial
Theron Korda
Sudhish Subhash
Hover over the video and click play Market
Penetration Product Line Variety Low Cost Focus Broader Range Speciality Focus High Low
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