T HE G AME I NDUSTRY G AME P RODUCTION AND P ROJECT M ANAGEMENT G AME P RODUCTION AND P ROJECT M ANAGEMENT G AME I NDUSTRY R OLES AND E CONOMICS G AME I NDUSTRY R OLES AND E CONOMICS T HE P UBLISHER -D EVELOPER R ELATIONSHIP T HE P UBLISHER -D EVELOPER R ELATIONSHIP M ARKETING M ARKETING CS A PRIL 21, 2016 P ARTS

G AME P RODUCTION AND P ROJECT M ANAGEMENT P AGE 256 G ETTING A J OB I N T HE G AME I NDUSTRY W ITH THE CURRENT EXPANSION IN GAME INDUSTRY EMPLOYMENT, HOW DOES SOMEONE ACTUALLY MAKE THE BIG MOVE ? K NOW G AMESK NOW G AMES L OVE G AMESL OVE G AMES T AKE A RT C LASSEST AKE A RT C LASSES L EARN T OOLSL EARN T OOLS N ETWORKN ETWORK M AKE M ODSM AKE M ODS M AKE A D EMOM AKE A D EMO I NTERNI NTERN G ET T EAM E XPERIENCEG ET T EAM E XPERIENCE

G AME P RODUCTION AND P ROJECT M ANAGEMENT P AGE 257 C ONFERENCES & O RGANIZATIONS O NE WAY TO NETWORK AND TO KEEP INFORMED ABOUT CURRENT TRENDS IS TO JOIN GAME - RELATED ORGANIZATIONS AND ATTEND THEIR CONFERENCES. E LECTRONIC E NTERTAINMENT E XPO T HE LARGEST U.S. GAMING CONVENTION ; PRIMARILY FOR RETAILERS AND PUBLISHERS, BUT DEVELOPER SESSIONS ALSO OCCUR. G AME D EVELOPERS C ONFERENCE T HE LARGEST GAME DEVELOPMENT TRADE SHOW. I NTERNATIONAL G AME D EVELOPERS A SSOCIATION P ROFESSIONAL ORGANIZATION ; PROMOTES THE INDUSTRY VIA INTELLECTUAL PROPERTY RIGHTS, TECHNICAL SPECIAL INTEREST GROUPS, AND TESTING STANDARDS. SIGGRAPH ACM’ S GRAPHICS SIG; ANNUAL CONFERENCE PRESENTS LEADING EDGE GRAPHICS RESEARCH AND DEVELOPMENT.

G AME I NDUSTRY R OLES AND E CONOMICS P AGE 258 T HE G AME I NDUSTRY T HE THREE LAWS OF THE GAME INDUSTRY “C HANNEL TO M ARKET IS E VERYTHING ” S HELF S PACE I S L IMITED S HELF S PACE I S L IMITED F IRST 60 D AYS A RE C RITICAL F IRST 60 D AYS A RE C RITICAL A DVERTISE IN PRINT, MTV, RETAILER FLYERS, ETC. A DVERTISE IN PRINT, MTV, RETAILER FLYERS, ETC. P ROMISE FULL REFUNDS TO RETAILERS FOR ALL COPIES THAT DON ’ T SELL THROUGH P ROMISE FULL REFUNDS TO RETAILERS FOR ALL COPIES THAT DON ’ T SELL THROUGH “W HOEVER S TANDS B ETWEEN Y OU AND THE C USTOMER C ONTROLS THE U NIVERSE ” G AME P UBLISHERS P AY D EVELOPERS A P ERCENTAGE O F G ROSS S ALES, U SUALLY A BOUT $10 P ER U NIT (F OR PC G AMES, M ORE F OR C ONSOLE G AMES ) G AME P UBLISHERS P AY D EVELOPERS A P ERCENTAGE O F G ROSS S ALES, U SUALLY A BOUT $10 P ER U NIT (F OR PC G AMES, M ORE F OR C ONSOLE G AMES ) E XPECTED U NIT S ALES F OR M OST G AMES : A BOUT 50K (F OR PC, M ORE F OR C ONSOLE ) E XPECTED U NIT S ALES F OR M OST G AMES : A BOUT 50K (F OR PC, M ORE F OR C ONSOLE ) E XPECTED D EVELOPMENT C OSTS : A T L EAST $2M (F OR PC, M ORE F OR C ONSOLE ) E XPECTED D EVELOPMENT C OSTS : A T L EAST $2M (F OR PC, M ORE F OR C ONSOLE ) “S TYLE IS AT L EAST AS I MPORTANT AS S UBSTANCE ” S ERIOUS G AMERS W ANT I MPOSSIBLY U P -T O -D ATE G RAPHICS, I NCREDIBLY F AST A CTION, A ND A N I NFINITE S UPPLY O F E XTRAS (S ECRET L EVELS, B ONUS C HARACTERS, H IDDEN M OVES ) S ERIOUS G AMERS W ANT I MPOSSIBLY U P -T O -D ATE G RAPHICS, I NCREDIBLY F AST A CTION, A ND A N I NFINITE S UPPLY O F E XTRAS (S ECRET L EVELS, B ONUS C HARACTERS, H IDDEN M OVES ) A NYTHING L ESS W ILL N OT S ELL A NYTHING L ESS W ILL N OT S ELL

G AME I NDUSTRY R OLES AND E CONOMICS P AGE 259 D IGITAL D ISTRIBUTION D OWNLOADING GAMES HAS THE POTENTIAL FOR ELIMINATING MUCH OF THE COST ASSOCIATED WITH TRADITIONAL RETAIL DISTRIBUTION. A S I NTERNET - ENABLED CONSOLES PROLIFERATED IN THE EARLY 2000 S, IT BECAME POSSIBLE TO PROVIDE DOWNLOADABLE CONTENT THAT COULD BE ADDED ONTO FULL RETAIL GAMES, SUCH AS MAPS, IN - GAME CLOTHING, AND GAMEPLAY. E ACH OF THE PRIMARY CONSOLE MANUFACTURERS NOW HAS ITS OWN DIGITAL DISTRIBUTION PLATFORM, FULL RETAIL GAMES AS WELL AS EXCLUSIVE DOWNLOADABLE GAMES. I N 2004, V ALVE RELEASED THE S TEAM PLATFORM FOR W INDOWS PC S ( LATER EXPANDED TO I OS AND L INUX ) TO DISTRIBUTE GAMES DEVELOPED AT V ALVE, AND LATER TO SELL TITLES FROM INDEPENDENT DEVELOPERS AND MAJOR DISTRIBUTORS. B Y 2011, S TEAM HAD APPROXIMATELY 50-70% OF THE MARKET FOR DOWNLOADABLE PC GAMES, WITH OVER 40 MILLION USER ACCOUNTS. D IGITAL DISTRIBUTION IS THE PRIMARY METHOD OF DELIVERING CONTENT ON MOBILE PLATFORMS. L OWER BARRIERS TO ENTRY ENABLE MORE DEVELOPERS TO CREATE AND DISTRIBUTE GAMES ON THESE PLATFORMS, WITH THE MOBILE GAMING INDUSTRY GROWING CONSIDERABLY AS A RESULT.

T HE P UBLISHER -D EVELOPER R ELATIONSHIP P AGE 260 L ICENSING P ROPERTIES L ICENSING MOVIE AND TELEVISION TITLES AND COORDINATING THESE GAME RELEASES WITH MAJOR EVENTS FOR THE PROPERTY ( FILM RELEASES, NEW TV SEASONS, DVD RELEASES ) HAS PROVEN TO BE AN EFFECTIVE COMBINATION. M OVIE TITLE IS LICENSED ; OTHERWISE, THERE IS NO RELATION TO THE ACTUAL MOVIE M OVIE CREATORS INVOLVED WITH GAME PRODUCTION ; GAMEPLAY SUPPLEMENTS MOVIE STORY AND ACTION M OVIE CREATORS INVOLVED WITH GAME PRODUCTION G AMEPLAY RECREATES MOVIE STORY AND ACTION TV CREATORS INVOLVED WITH GAME PRODUCTION G AMEPLAY MAY FILL GAP BETWEEN SHOW SEASONS

M ARKETING P AGE 261 C ASUAL V S. C ORE W HAT DISTINGUISHES THE CASUAL GAMER FROM THE CORE GAMER ? C ASUAL G AMERS … C ORE G AMERS … … PLAY A LOT ! … PLAY A LITTLE. … SPEND A LOT ! … SPEND A LITTLE. … TOLERATE FRUSTRATION WELL ! … ARE INTOLERANT OF FRUSTRATION. … PLAY FOR THE EXHILARATION OF DEFEATING THE GAME. … PLAY FOR THE SHEER ENJOYMENT OF THE EXPERIENCE. … VIEW CASUAL GAMERS AS UNDEDICATED WIMPS. … VIEW CORE GAMERS AS NUTTY NERDS. A S THE CORE GAME MARKET BECOMES SATURATED, GAME COMPANIES ARE BEGINNING TO LOOK BEYOND THEIR TRADITIONAL AUDIENCES AND TO TARGET CASUAL GAMERS.

M ARKETING P AGE 262 P REDICTING THE F UTURE O NE OF THE BIGGEST CHALLENGES IN THE GAME INDUSTRY IS PREDICTING WHAT WILL APPEAL TO NEW AND EXISTING GAMERS. H OW PREDICTABLE WAS THE SUCCESS OF THE N INTENDO DS, WITH GAMEPLAY ( AND PLAYER ATTENTION ) SPLIT BETWEEN TWO SCREENS ? H OW PREDICTABLE WAS THE SUCCESS OF THE N INTENDO W II, WITH RADICALLY DIFFERENT PERIPHERALS LIKE THE W IIMOTE, THE N UNCHUK, THE W HEEL, THE B ALANCE B OARD, AND THE Z APPER ?

M ARKETING P AGE 263 E MERGING T RENDS I MMERSIVE G AMING VR HEAD - MOUNTED DISPLAYS, LIKE THE O CULUS R IFT, PROVIDE LOW - LATENCY HEAD TRACKING, LARGE FIELD - OF - VIEW, AND STEREOSCOPIC 3D RENDERING. S ECONDARY S CREENS S ECONDARY DEVICES, LIKE THE W II U G AME P AD WITH ITS BUILT - IN TOUCHSCREEN, MAY BE USED TO SUPPLEMENT THE MAIN DISPLAY WITH ADDITIONAL INFORMATION ( INVENTORY, MAPS, ETC.) OR TO TRANSFER PLAY FROM THE MAIN DISPLAY. O PEN S OURCE G AMING F OLLOWING THE LEAD OF THE MOBILE GAMING MARKET, INDEPENDENT DEVELOPERS ARE CREATING AND DISTRIBUTING HOMEMADE GAMES USING INEXPENSIVE PLATFORMS LIKE THE O UYA, WHICH DOESN ’ T REQUIRE THE PURCHASE OF A SEPARATE DEVELOPER ’ S KIT OR DEVELOPER LICENSING FEES.