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What’s the name of the game?

James Enck
Daiwa Securities

www.europeftthcouncil.com
Who am I, and why am I here?
I cover the telecom and media
industries, but I am increasingly
interested in changes in
consumer behavior which
challenge our previous
assumptions about the
relationships which legacy
players have with their
customers - and how, indeed if,
those can be maintained.

http://eurotelcoblog.blogspot.com

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Where are we going?

Telcos Consumers

“While we are doing a decent job at keeping our


eyes on the ball I am increasingly concerned that
the end-users are already off playing something
other than ball…” - Anonymous industry friend

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What do you want to watch?
• Telecom industry is
[understandably] focused
on delivering TV.
• “Push” (linear TV) and
some “pull” (VOD/PVR)
services.
• Old concepts/behaviors,
new delivery mechanism.

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Meanwhile, new media are taking shape

Source: Namco

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Virtual community media

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Virtual community media

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Real community media

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Social media

Source: Tom Coates (plasticbag.org)

Source: Last FM

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DIY distribution

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Remix, modify, mash-up

Source: Fark

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Online gaming
The typical gamer? Don’t be so sure

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Already part of daily routine
100%

90%

80%
Music downloading Gaming Online photo albums
70%

60%

50%

40%

30%

20%

10%

0%
UK France Italy Sweden Spain Germany Holland Average

Source: Daiwa, from the Intel EMEA Digital Lifestyle Survey 2005

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Permeating other activities/behaviors
Q: What is your favorite use of IM?

Play games with friends

Share files

Share photos

Set up social activities

Gossip

Chat with family/friends

0% 20% 40% 60% 80% 100%

Source: Daiwa, from the AOL Instant Messaging Survey 2005

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Tools in place for something bigger
100% Computer (not laptop)
90% Laptop
Gaming console
80%
70%
60%
50%
40%
30%
20%
10%
0%
UK France Italy Sweden Spain Germany Holland Average

Source: Daiwa, from the Intel EMEA Digital Lifestyle Survey 2005

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Online rules in Asia

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Surfing a demographic wave

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Pressuring old media
Q: Impact of home entertainment technology on leisure activities?
35%

30%

25%

20%
Go to cinema less
15%

10%

5%

0%

d
in

y
en
ly

e
e
K

lan
an
nc

ag
a
Ita
U

ed

Sp

r
a

ol

ve
Sw
Fr

er

A
G

Source: Daiwa, from the Intel EMEA Digital Lifestyle Survey 2005

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Old media concerned

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MMOGs – a brave new world
Total MMOG Active Subscriptions (All MMOGs)

10,000,000
R2 = 0.98
9,500,000
9,000,000
8,500,000
8,000,000
7,500,000
7,000,000
Total Current Subscribers

6,500,000
6,000,000
5,500,000
5,000,000
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0

Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan-
97 97 98 98 99 99 00 00 01 01 02 02 03 03 04 04 05

Source: www.mmogchart.com

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Not just a pastime

Source: Play On blog (PARC)

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Create your own reality

Source: http://www.palletorsson.com/evil.php

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Get a [second] life

Source: Second Life

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From virtual to real world

Source: www.pacmanhattan.com

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Melding physical and virtual location

Source: Univ. of Glasgow Source: Mopius

Source: Your World Games


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Making money in the process

Source: Perplex City

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The future: integration and evolution

Source: http://www.flickr.com/photos/crazykinux/tags/eveonline/

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Integration: Gaming sneaks into
IM

Source: Yahoo!

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While IM sneaks into gaming

Source: BearWare Source: Xfire

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Inventive user interfaces

Source: Groupe Molior Source: www.bsidegames.com

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Manipulating the game with the
body

Source: In2games.com

Source: Fightsuit.com

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Body and game manipulate
each other

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Conveying sensory experience

Source: Northwestern University

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Conclusion
• It would be naïve to claim that we really know where all
of this is going.
• However, what seems clear is that gaming/virtual worlds
are touching on, incorporating, even supplanting a lot of
activities which might previously have been separate.
• In the process they are creating new communities, forms
of interaction, and markets.
• This may have a more profound impact than just as
another form of entertainment.

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Thanks for listening!

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