Presented by

Najmul Hoque
FORE School Of Mgmt.
 The Online Games Industry
The fastest growing Entertainment Business
Globally
 Growth Rates
Global Entertainment Industry Annual
Compounded rate
2007 - 2011
11.4
12

10

8 6.6
5.3 5.5
6

0
Filmed Television Recorded Music Video Games
Entertainment
 Size of the Video Games Market
Estimates in Billion US$

35

30

25

20
2008
15 2012

10

0
Console Games Online Games Wireless Games PC games
Estimates as per PWC Media Outlook ‘08-’12
 Types of Games
• Single player
• Multi-user dungeon, multiuser dimension,
multiuser domain
• Multiplayer online games
• Massively multiplayer online games
• Persistent worlds
• Massively social games
 Mode of payments
• Credit/ Debit card
• Cash
• Smart Card
• Mobile Phone
• Internet Banking
 CRM in Online gaming
• Attracting and retaining fans
• Acquiring and using customer data and insight
• Innovation to drive average revenue per customer
• Safe online payment and billing process
• Interfaces in different languages
 Global Advertising
18%
C AGR =
n g
$60
dve rtisi
Onl i ne A
$Billion
$50

$40

$30

$20

$10

$0
2005
2006
2007
2008
2009
2010
 New Trends
• Subscription based revenue has been successful (world of
warcraft has 8 million subscribers and 30 million in revenues
per month)
• In 2008 there were about 16 million subscribed online gamers
which is expected to reach 30 million in 2012
• A plethora of gaming devices and increasing broadband
connectivity have opened up a whole new world of gaming
and advertising opportunities
• Companies are switching over to free game hosting with
revenue from advertisements (Yahoo is estimated to have
around 50 million users per year) or Avatar based revenue
model with in game advertisements
 Growth Drivers
• Broad-Band

• PC Penetration

• Content
Network Architecture

• Peer to Peer game

• Single/Multiplayer online Game
• Massive multiplayer online game
 Peer to Peer online gaming

Every computer is connected to each other

through ISP or LAN
 Single/Multiplayer online game
(Client Server)

Game runs on a single server

Each server performs the same function
To increase capacity the number of servers are added
Proxy server architecture
Value Chain Model
 Revenue Model
Free Model (Orkut, Yahoo, MSN)
Avatar Based model

Pay for Play model

Future of online gaming
Game Developers Conference to focus on
social games
On demand video game platform delivering the latest and most advanced
games instantly, on any TV via a sleek, inexpensive MicroConsole, or on
almost any PC or Mac.
 Mobile Gaming

• 3G technology boost
• Cheap and high penetration
• Social Networking and Communities