The Past, Present & Future of Computer Games Development Nick Burton, Rare / MGS University of Nottingham 8 th of March 2007

So what's this all about? An overview of the computer games industry, where it came from and where it’s heading Plenty of time for questions at the end Your chance to find out more!

Who are we? Personally worked in the game industry for 9 years as a software engineer for RarePersonally worked in the game industry for 9 years as a software engineer for Rare 98+ million games sold98+ million games sold 22 years’ games industry experience22 years’ games industry experience Developed for 12 different platformsDeveloped for 12 different platforms Acquired by Microsoft Game Studios in 2002Acquired by Microsoft Game Studios in 2002 Over 200 employeesOver 200 employees

A Brief History Lesson Space War - First computer game, 1962, First coin operated version 1970 Pong – First commercial success, 1973 Rise and Fall of arcades Rise of Home gaming Rise of Mobile gaming Web 2.0 and gaming Gaming has grown up into a real entertainment business 110 Million PS2s in the world 12 Million Xbox 360’s Games now an accepted art form

Growth over the last 30+ years Pong generated an estimated $3.2 million income in 1973 for $500 initial investmentPong generated an estimated $3.2 million income in 1973 for $500 initial investment In 1997 US games industry was worth $4.7 billionIn 1997 US games industry was worth $4.7 billion In 2005 US games industry was worth $20+ billionIn 2005 US games industry was worth $20+ billion Average year on year growth is 19%Average year on year growth is 19% Shift from arcades to home gaming over that last 15+ yearsShift from arcades to home gaming over that last 15+ years In 2004 Halo 2 generated more than $125 million in its first day on saleIn 2004 Halo 2 generated more than $125 million in its first day on sale To date Halo 2 has sold more than 7 million unitsTo date Halo 2 has sold more than 7 million units Biggest names in the business Microsoft, Sony, EA, NintendoBiggest names in the business Microsoft, Sony, EA, Nintendo

Industry Model The CustomerThe Customer The RetailerThe Retailer The DistributorThe Distributor The PublisherThe Publisher The Platform HolderThe Platform Holder The DeveloperThe Developer Investment (venture capital etc.) banks don’t like developersInvestment (venture capital etc.) banks don’t like developers Current Trends (consolidation etc.)Current Trends (consolidation etc.) Nothing like the movie, music or TV industriesNothing like the movie, music or TV industries

It’s a roundabout The industry is cyclicalThe industry is cyclical Every 5 to 7 years a new generation of consoles arrivesEvery 5 to 7 years a new generation of consoles arrives A particular console’s popularity follows a curve during its life hitting a high point around 2/3 though its life cycleA particular console’s popularity follows a curve during its life hitting a high point around 2/3 though its life cycle As popularity of a specific console format is dwindling a successor is waiting in the wingsAs popularity of a specific console format is dwindling a successor is waiting in the wings Computing power is ever increasingComputing power is ever increasing

Getting a product to market 20 to 100 people 2+ years work, that’s at least 40 man years20 to 100 people 2+ years work, that’s at least 40 man years $4 to $10 million in production costs on average across the industry, but can be more$4 to $10 million in production costs on average across the industry, but can be more Product TestingProduct Testing Focus Group TestingFocus Group Testing MarketingMarketing External Market forcesExternal Market forces Censorship and TCR issuesCensorship and TCR issues Hitting a moving target – the bar is continually risingHitting a moving target – the bar is continually rising

Misconceptions Not all games are a financial success, for every hit 20 titles fail Game developers don’t all drive Ferraris It’s not the boom or bust industry of 20 years ago Game developers are not out to corrupt your children Game developers are responsible, well organised software developers Games are not written by one person in a bedroom anymore The most popular console is not always the most profitable for a developer to work on

The Future… The Challenges;The Challenges; –Richer experience –Lower Development Costs –Longer Product Shelf Life –Growing Talent Empowering the Player/UserEmpowering the Player/User –YouTube, Flickr, Wikipedia et al, can Web 2.0 be applied to games? –Make better Developers and expand the industry –MS-XNA, the start of a vision Next Generation of Consoles, 2011?Next Generation of Consoles, 2011? –Will consoles converge with PCs or other devices

Questions Questions?