1. SegaNet vs. MSN Gaming Zone
A Strategy Comparison

2. Outline Framework for Analysis The Gaming Industry Comparison
The Winner

3. Framework: Determinants of On-line Success
Context and Competition
Content
Community
Connectivity
Communications

4. Context and Competition
Information Content
Value Proposition
Customer Acceptance
Differentiation via Personalization
Industry Structure
First Mover Advantage
Switching Costs and Lock in
Issues facing incumbants
Issues facing new entrants

5. Context $8B computer games market. 2% are On-line games.
Gamer Population Growth
$8B computer games market.
2% are On-line games.
Gamer population to double from 1997 to 2002.
Revenues to grow from $127M to $770M in 2003

6. Competition Platform/Game Specific Networks Platform-Neutral Networks
First and Third party games for specific platforms
Subscriptions and pay-per-use.
Platform-Neutral Networks
Access to different gaming platforms
No cross-platform gaming
Advertising and subscription revenues
On-line PC Game Networks
Simple on-line PC games like solitaire, Bingo
Based on advertising revenue

7. Content
Types
Quality
Presentation
Delivery

8. Content SegaNet Game Zone Console network
Limited title selection compared to console selection
Action, RPG, Sports, Strategy
No test ability
Dynamic site graphics
PC Network
Numerous titles
Free, Retail, Premium
Static graphics

9. Connectivity Types of Alliances Affiliation Programs Link with Portals
Connectivity with Suppliers
Channels

10. Connectivity SegaNet Game Zone Focus on Alliances
Content: Third party publishers
Traffic: Genuity
Services: Amazon.com
Technology: Innomedia
Entertainment: FamilyWonder, Nike
Mainly Internal Alliances
External
Content: Third party publishers
Technology: WildTangent
Entertainment: Cases Ladder

11. Community Types of Communities Mechanisms for Nurturing Transaction
Interest
Fantasy
Relationships
Mechanisms for Nurturing
Multi-user Dimensions
Chat Channels
Conferencing systems/Bulletin Boards etc.

12. Community SegaNet Game Zone Traditional New Some traditional methods.
Society
Insider Information
New
VMU
Voice-Over IP
Some traditional methods.
No special mechanisms to unite users.

13. Communications Types Mechanisms Stakeholder coverage Message
Customer Service/Personalization

14. Communications SegaNet Game Zone
Targeted to its niche market customers.
Message: “You’re an insider.”
Leverages MSN.
Message: “Welcome to Las Vegas”

15. The Future Gaming will be included in our definition of entertainment.
Technology Improvements
Next generation consoles
Built-in entertainment features
Game evolution
Broadband connectivity

16. The Winner First-mover advantage may not matter.
Xbox on the horizon.
Responsiveness to technology counts.
Hit Games count more.
Intense entertainment experience will win.
Time for a new market leader?