Video game industry Adam Kościelniak IiE III: Ekonometria.

Adam Kościelniak IiE III: Ekonometria

„How sir, would you make a ship sail against the wind and currents by lighting a bonfire under her deck I pray you excuse me. I have no time to listen to such nonsense.„ - Napoleaon I

Filled on January 25, 1947 the Cathode Ray Tube Amusement Device is the first known video game device.

Many argue that its not actually a video game.

The game was a missile simulator inspired by radar displays from World War II, it was never massively produced.

• March 1950, Claude Shannon:

First article on computer chess

• November 1951, Dr. Dietrich: The original chess playing program for the Manchester Ferranti computer.

• ‘first console’ – exclusively build to play a game• Displayed at the Exhibition of Science during the 1951

Festival of Britain • When the Festival ended, the computer was shown in Berlin• True intention was to illustrate the principles of the (then

novel) digital computer for the public.

• Created by Alexander S. Douglas for the EDSAC computer in 1952.

• First digital graphical game to run on a computer

• The player played against the computer

• Developed in 1958 on an analog computer

• Simulates a game of tennis or ping pong on an oscilloscope

• Created by American physicist William Higinbotham

• Initially shown on October 18, 1958

• Hundreds of visitors lined up to play the new game during its initial debut.

• One of the first digital games

• Created by MIT students Martin Graetz, Steve Russell, and Wayne Wiitanen

• Spaceships were subjected to garavity the missles however werent due to lack of processing time

• Designed in 1968 (prototype „Brown Box”

• Production started in 1972 • The first wave sold

130,000 consoles making it a huge sucess

• The advertisment misslead some of the audiences that the machine needed a Magnavox TV

• Later on 330,000+ systems were sold

• Established in 1972 by Nolan Bushenell, Ted Dabney and Larry Bryan

• Initial investemet of 300 $ • In 2 years sold 10500

arcade games • Pong console sold in 150

000 units in one year brining 3 million dollars in profits

De gustibus non est disputandum

• Based on hand-eye coordination

• Titles: ▫ Half-life▫ Legacy of Cain▫ God of War ▫ Crash Bandicoot▫ Tekken

• Based on paper and pencil role playing games

• Titles:▫ Baldurs Gate▫ Planescape Torment▫ Might and Magic ▫ Mud’s ▫ Gothic▫ Final Fantasy

• Developed from board games

• Titles: ▫ Dune▫ Populus▫ Warcraft series ▫ Starcraft▫ Dawn of War ▫ Total war series▫ Civilization ▫ Industry Gigant ▫ Railroad Tycoon

• Simulate playing sports• Titles:

▫ Tony Hawks Pro Skater series

▫ Fifa series ▫ Madden series ▫ Need for Speed series▫ Colin McRae Rally series

• Capable of supporting hundreds or thousands of players simultaneously

• Titles: ▫ World of Warcraft ▫ Ultima Online ▫ Guild wars ▫ O-game▫ World War II Online▫ Second life

• Music games▫ Guitar Hero▫ Rock band

• Puzzle games▫ Bejweled ▫ Peggle

• Arcade games▫ Geometry wars: Retro

evolved• Party games

▫ Buzz!

„Where the magic happens”

Disciplines specific to the industry

• Game programmer,• Game designer,• Level designer,• Game producer,• Game artist • Game tester

Gabe Newell Director of Valve

In the past:• Mostly one man projects

with low production cost. • Almost certain high returns

on a dollar invested

Now:• Multi-million dollar

projects with big development teams

• Risky investments (most of the ideas get rejected at the first stage of the value chain

CEO: John Riccitiello Biggest brands:

Battlefield seriesBurnout seriesCommand & Conquer seriesRock Band series

Revenue 2008: 4,2 billion dollars Net income 2008: -1,08 billion dollars Employs: 7,320

Electronic Arts HQ

Now: EA: LA

CEO: Satoru IwataBiggest brands:

Mario series Legend of Zelda series Pokemon series Donkey Kong Revenue 2009: 20.339308 billion U.S. dollars Net income 2008: 3.08839887 billion U.S.

dollarsEmploys: 4,130

CEO: Robert KotickBiggest brands:

Guitar Hero seriesCall of Duty seriesDiablo seriesWarcraft series

Crash Bandicoot seriesRevenue 2008: 5 billion dollars Employs: 7,000

CEO: Ben FederBiggest brands:

Serious Sam series Civilization series Grand Theft Auto series

Max Payne seriesRevenue 2008: $968 millionNet profit : $97.1 millionEmploys: 2,000

• The market is growing• Recession hasent affected

the industry • Casual gaming is

becomming bigger with every year