2. Dean Takahashi, lead writer for
GamesBeat
I have covered technology news for 25 years and games for 20 years
VentureBeat: founded 11 years ago. 12 million readers a month
GamesBeat: Started 9 years ago when I joined
GamesBeat events: GamesBeat Summit in spring 2017; GamesBeat 2017 in fall
2017
Web site: GamesBeat channel and subchannels for AR/VR, esports, PC gaming,
and other game stories. We do reviews, news, and interviews.
I wrote two books, “Opening the Xbox” (2002) and “The Xbox 360 Uncloaked”
(2006)
3. The places I’ve been
I have been lucky to talk to game developers about the economic growth of
games in Helsinki, London, Marseilles, Shanghai, Tel Aviv, Los Angeles, San
Francisco, Seattle, Dallas, New York, Montreal, Amsterdam, Berlin, Hamburg,
and Las Vegas.
This is my first trip to Japan in 24 years
All of that has taught me that the world is flat when it comes to making
games. I borrowed that idea from best-selling author Thomas Friedman of the
New York Times.
Competition is global. And it’s a non-zero-sum game
5. You can make a game anywhere
Siberian brothers employ 100 in Yakutsk; 30 million downloads
MyTona made 15 games, and their last one was a big hit
North America, Europe, and Japan dominated PC/console
Mobile games can be made anywhere
Globalization has helped games spread everywhere
Costs are shifting and so our audiences
Workforces are educated
6. But strong regions tilt the odds in your
favor
San Francisco, Los Angeles, Seattle, Tokyo, Vancouver, and Montreal are
strong
Regions have their advantages in history, culture, and costs
Related industries can help a region thrive, like the proximity to Hollywood
Science fiction, tech, and games
It works best if you have a gaming hub. Example: Japan has strong hubs for
gaming, while India is only emerging.
7. History is the strongest way to succeed
Silicon Valley started in 1940s
Atari and Homebrew Computer Club started in 1970s
Nintendo and Sega rise in Japan in 1980s
Demo Scene in Helsinki started in 1990s
Id Software started in 1990s in Dallas
3D animation software started in 1980s in Montreal
8. What are the ingredients?
Strong technology sector
Entertainment industry
Good universities
Favorable business climate
Cultural engagement
Leadership
Specialization
Government support
Legal protection
Financial support
International talent
9. Silicon Valley vs Boston
Regional Advantage: Culture and Competition in Silicon Valley and Route 128
Silicon Valley won, as it embraced the horizontal business model, while
Boston stayed with the older vertical model. Horizontal firms like Intel and
Microsoft won the PC market, while vertical companies like Digital Equipment
lost.
Annalee Saxenian’s Regional Advantage book captured this story
The platform owners hold the power
Bay Area platforms: Oculus, Facebook, Google, Apple, Intel
The Bay Area has stronger venture capital investment
10. The U.S.
Strong regions: San Francisco, Seattle, Los Angeles, New York, Dallas, Austin,
Boston
Top states: California, Texas, Washington, New York, Massachusetts
1641 companies, 546 in California
406 universities with full game programs
Silicon Valley
150,000 jobs
Jobs growing at four times the rate of the overall U.S. economy 2009-2012
$94,747 average salary (source: The ESA)
11. The top 10 public game companies in
2014
1. Tencent
2. Sony
3. Microsoft
4. EA
5. Activision Blizzard
6. Apple
7. Google
8. King
9. Nintendo
10. Ubisoft
12. Nothing stays the same
The game business and its leaders are always changing
But games are always growing, topping $100 billion and reaching billions
Supercell with 200 employees is valued at $10 billion
Ubisoft with 10,000 employees is valued at $3.7 billion
13. The top 10 public game companies in
2015
1. Tencent
2. Sony
3. Activision Blizzard
4. Microsoft
5. Apple
6. EA
7. NetEase
8. Google
9. Bandai Namco
10 Mixi
14. Japan
Long history with Sony, Nintendo, and Sega
Strong third-party companies
Arcade industry
Succeeded without a real Hollywood
Strong gaming culture
Influential throughout the world
15. Canada
Government help
Better measurement
472 active studios, 143 new since 2013
$3 billion annual revenue, up 31% since 2013
20,400 game jobs in Canada; 36,500 equivalent full-time jobs
Major companies with Canadian studios: EA, Capcom, Ubisoft, Activision
Blizzard, Microsoft, Nintendo, Sony, Disney, Warner Bros., Square Enix, Sega,
and Bandai Namco
Home grown: BioWare (EA), Ludia, Behaviour, Relic Entertainment
Costs are 25% of U.S.
1/10th the size of U.S., but 1/3 as many studios
16. New platforms
Virtual reality
Augmented reality
Mobile
Television
Toys to life
Esports
17. Success story: Behaviour Interactive
Started in 1992 in Montreal
1996 Multimedia Interactive and Behaviour merged
1999 Founder Remi Racine buys back, renames it A2M
2008 Acquires Chile’s Wanako Games
2010 Renamed Behaviour Interactive
2015 Fallout Shelter
2016 Dead by Daylight, Warhammer 40,000: Eternal Crusade
It started as an amoeba, and it has evolved and hit the next level in the food
chain
18. China
Urging worldwide expansion
Strong shows like ChinaJoy
Strong in PC and mobile. Not much console
Big push into VR
Financial power and geographic arbitrage
Tencent has bought stakes in Supercell, Actvision Blizzard, Riot Games, and
Epic
Problems with censorship, trade restrictions
19. Israel, Finland, and others
Israel specialized in online gambling, social casino, marketing tech, mobile
Finland specialized in mobile
Canada is broad-based across Montreal, Vancouver, Edmonton, Quebec City,
and Toronto
Technology, entertainment, and games inspire each other
How do you become fast?
How do you create a gaming culture? Finland has to export
20. Acquisitions and failures
Regions can suffer
Layoffs affect places such as Boston, Austin
Geopolitics matter in Israel, Ukraine
Silicon Valley has become too expensive
Immigration policies should be friendly
Political climate should be stable and welcoming
Some companies in Canada failed, like Roadhouse and United Front Games.
But Kabam’s Vancouver is driving enterprise value
Mino Games decided to leave SF and move to Montreal
21. What is coming next?
Emerging territories of AR, VR, toys-to-life, Internet of Things, drones,
robotics, esports, retro and more
VR is strong in the U.S. and China
Silicon Valley is strong in AI
Montreal and Toronto are strong in AI
The intersection of sci-fi, tech, and games
Westworld
23. The game industry map that matters?
San Francisco: Pokemon Go, Game of War, The Sims, Star Wars, Plants vs
Zombies
Los Angeles: The Last of Us, Uncharted, Crash Bandicoot, Call of Duty, Diablo,
Hearthstone, World of Warcraft, StarCraft, Overwatch, God of War, League of
Legends
Dallas: Doom, Quake, Age of Empires
Montreal: Assassin’s Creed, Fallout Shelter, Deus Ex
Edmonton: Mass Effect, Dragon Age
Vancouver: Need for Speed, Gears of War
Maryland: Civilization, Fallout, Skyrim
New York: Grand Theft Auto, Red Dead Redemption
Seattle: Halo, Half Life
Tokyo: Final Fantasy, Pokemon, Kingdom Hearts, Sonic, Ico, Gran Turismo
24. Game industry map continued
Osaka: Resident Evil, Street Fighter
Kyoto: Mario, Zelda, Wii Sports, Mario Kart, Nintendogs
Helsinki: Angry Birds, Clash of Clans, Clash Royale
Stockholm: Candy Crush Saga, Minecraft, Battlefield
Moscow/Honolulu: Tetris
Florida: Fifa, Madden
England: Tomb Raider
Boston: Rock Band
South Korea: CrossFire
25. Reducing your risks as a game company
Why multiple territories make sense
Wider talent pools
Cultural expertise
Diversity works
No one has a monopoly on good ideas
26. Games find a way
Conclusions
You can’t just think about building a company. You have to build a region. And
that region has to produce blockbusters.
You can build a video game economy, but it takes time
Cost isn’t the only advantage
A gaming hub needs veterans, fresh talent, a culture of fun, low costs, a
critical mass of companies, and government support
If games have this, they will take over the world
