Game Industry. First approach to the departments of a video games studio
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We'll give a better approach about game industry and its evolution. We'll see the different departments of a videogames studio, a publisher, a developer... We'll review lots of KPIs and metrics to introduce ourself betters to the industry terms Check out my iOS development course on Udemy and get 97% discount with this link: https://www.udemy.com/curso-de-desarrollo-de-apps-para-ios-9/?couponCode=SLIDE_SHARE
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Game Industry. First approach to the departments of a video games studio
- 2. Overview Responsible for bringing games to the market EA, Activision, Sony,… Game Publishers Responsible for getting games manufactured from publishers to shops Distributors Responsible for developing the games Developers, Artists, Game Designers, Musicians,… GameDevelopers PC/Mac, Consoles, Platforms, Steam,… Hardware Manufacturers
- 3. Publishing is the process of production and distribution of literature, music, art or information GamePublisher A video game publisher is a company that publishes video games that they have either developed internally or have had developed by a video game developer. As with book publishers or publishers of DVD movies, video game publishers are responsible for their product's manufacturing and marketing, including market research and all aspects of advertising. • Functions: • Sales, distribution, marketing, finance, localisation, QA, legal,… • Product types: • Licensed Game, Original Game, Conversion Game
- 4. GamePublisher:Functions How do I bill? How can I sell advertising? What is the best business model? Sales How to create a great community of fans? How can I acquire users? How can we communicate with them? Would it be profitable? Marketing How do I get my game into players hands? How is the best way of doing it? Distribution How can I fund my game? What fund sources may I use? How can I convince an investor or publisher? Finance
- 5. GamePublisher:Functions How do I bill? How can I sell advertising? What is the best business model? Sales Traditional Role • Salesman, Retailers, Shops New Role • Technology, Payment Methods, Advertising,… Billing •Taxes, Fraud, Chargebacks, Refunds, Fees, Merchants, Payment Methods,… Advertising •Audience, Impressions, CTR, eCPM, Formats, Media Agencies, Ad Networks, Display, Affiliates, AAA Advertising (Massive, IGA, Double Fusion), Adserver
- 6. GamePublisher:Functions How do I get my game into players hands? How is the best way of doing it? Distribution Traditional Role •Pick, Pack and Ship •Low margins, retailers New Role •Digital Distribution Console •Platform holders, TRCs, TCRs, Royalties, Microsoft vs Sony PC •Steam, Greenlight Web based •Traffic, Kongregate, Big Fish, Miniclip Smartphone •Android, Apple, Blackberry, Windows Phone
- 7. How to create a great community of fans? How can I acquire users? How can we communicate with them? Would it be profitable? Marketing GamePublisher:Functions Traditional Role •Day-one, Long-term, Retailers New Role •Social Networks, Fan Communities, Website, Loyalty Paid Users •User Aquisition, CPA<LTV, Branding, Email Marketing, PR, Affiliates Organic Users •Viral Growth, SEO, Social Networks, Website, Blog,…
- 8. How can I fund my game? What fund sources may I use? How can I convince an investor or publisher? Finance GamePublisher:Functions Traditional Role •Investors, Portfolio, Institutions, Budget $20M New Role •Crowdfunding, Sponsors, Revenue sources Sources •Revenue, Government, Banks, Investors, Soft Loans, F&F, Business Angels, Sponsorships, Education,…
- 9. Exercise #1 ThehugestGamePublishersandtheirsuccess Choose 3 different Game Publishers and write down a simple presentation card for each one including 1. The Name of the Publisher along with its logo 2. Some valuable data (number of employees, year of foundation, place of their headquarters, 3. Add three of four big hits of this publisher 4. Add your own reflexion about the publisher (Did you know it? Have you played its games? What do you think about them?)
- 10. Game Development is the process and related disciplines of creating games GameDeveloper A video game developer is a software developer that specialises in video game development A game developer can range from one person who undertakes all tasks[3] to a large business with employee responsibilities split between individual disciplines, such as programming, design, art, testing, etc. Most game developer companies have video game publisher financial and usually marketing support.Self-funded developers are known as independent or indie developers and usually make indie games. • Functions: • Design, research, development, implementation, alpha and beta testing, submission and mastering • Developer types: • In-house (first-party), third-parties, indies • Specialization • Product, Platform
- 11. PlatformHolders PS3 PS4 PS Vita PSMobile PS4 Sony Wii Wii U DS y 3DS Nintendo Xbox Windows 8 y 10 Windows Phone Kinect MSN Microsoft Xbox Live PlayStation Netword Facebook Game Center SocialNetworks
- 12. 12 Browser Games Social Games PC Games Console Handheld Games Arcade Games Mobile GamesOnline Games Casual Games MMOs
- 13. Digital Distribution Digital distribution (also called content delivery, online distribution, or electronic software distribution (ESD), among others) is the delivery or distribution of media content such as audio, video, software and video games.[1] The term is generally used to describe distribution over an online delivery medium, such as the Internet, thus bypassing physical distribution methods, •PC Downloadable Games: Steam •Mobile Games: iTunes, Google Play, Amazon Store,… •Consoles: XBLA, PSN, Wii •Browser Games: Flash Portals, Facebook
- 14. Gamesasa servicevsasaproduct Games as a product Games as a product Games as a service Concept Fire and Forget New Content and Features Players Not ongoing relationship with gamer Revenues come from retained players Marketing Game Release, Branding No Branding, User Acquisition Sales / Distribution Handled by Platform Holders Handled in-house by Game Design Finance 100%Dev + 100% Marketing 25%Dev + Marketing Lifetime Mey Metrics Sales Active Users, Retention, Monetization
- 15. GameMonetization -History Free Subscription ($6-$12/month) Distribute client software for free 1980 1990 Retail 2000 2010 2020 Retail+Subscription (WesternvsEastern) Microtransactions Freemiumen 2009 SeealsomyGameMonetizationKeynoteonSlideshare
- 16. Exercise #2 Chooseexampleof companiesandgamesthat: • Sell their product • Use the freemium model • Use the premium model • Use advergaming and sponsoring techniques • Use some kind of advertising
- 17. IndustryTerms You can’t succeed if you can transmit. To transmit you should talk properly. Let’s learn a few terms that every video game developer must know.
- 19. Average Revenue Per User ARPU Average Revenue Per Paying User ARPPU Churn Cash Flow Cost Per Acquisition Client CAC
- 20. Currently Concurrent Users CCU Cost per Action CPA Cost Per Click CPC Cost Per Install CPI Cost Per Mille CPM
- 21. Conversion Rate CVR CrossPlatform CrossPromotion Daily Active Users DAU Monthly Active Users MAU
- 22. Downloadable Content DLC Free to Play F2P First Person Shooter FPS Fog of War FOW Freemium
- 23. Graphical User Interface GUI In App Purchases IAP Intellectual Property IP K-Factor Lifetime Value LTV
- 24. Massive Multiplayer Online MMO Non Playing Character NPC Peak Concurrent users PCU Profit and Loss P&L Role Playing Game RPG
- 25. Real Time Strategy RTS Turn Based Strategy TBS Search Engine Optimisation & Search Engine Marketing SEO& SEM Software Development Kit SDK Whale
- 26. Aperformanceindicatoror keyperformanceindicator (KPI)is atype of performance measurement.KPIsevaluatethesuccessof anorganizationor of aparticular activityinwhichit Industry metrics:InGame • Sales (number of units sold) • DAU (Daily Active Users) • MAU (Monthly Active Users) • Engagement / Stickness (DAU/MAU) • CVR (Conversion Rate) • ARPU (Average Revenue Per User) • ARPPU (Average Revenue Per Paying Users) • ARPDAU (Average Revenue Per Daily Active User) • LTV (LIfetime Value) • LTNV (Lifetime Network Value) • CCU (Currently Concurrent Users) • PCU (Peak Concurrent Users) • Retention Rate (1-day, 7-day, Monthly) • Churn Rate • Gross Revenue / Net Revenue
- 27. Aperformanceindicatoror keyperformanceindicator (KPI)is atype of performance measurement.KPIsevaluatethesuccessof anorganizationor of aparticular activityinwhichit Industry metrics: Publishing vsAdvertising • Impressions • Clicks • Installs • Purchases • CPM (Cost per Mille) • CTR (Click Through Rate) • eCPM (Efective CPM) • CPC (Cost per Click) • CVR / IR (Conversion Rate) • CPI (Cost per Installs) • CPA (Cost per Action) • CPV (Cost per View) • Revenue Share
- 28. Exercise #3 CommonandShared GlossaryTerms 1. Create a Google Drive Document shared with the rest of the class 2. Add all the terms, metrics and concepts we’ve seen in this class 3. Complete each term with a short definition 4. Complete each term with resources, links, ideas, articles, images, how is it calculated, what can be useful for or other relevant stuff about it.
- 29. Exercise #4 HowdidStarbuckscalculatetheirCustomer LifetimeValue https://blog.kissmetrics.com/wp-content/uploads/2011/08/calculating-ltv.pdf 1. Write three of four lines about how do you think they did it. 2. Read the article 3. Write a little summary about it 4. Personal opinion and contrast your initial thoughts with the results 5. How would you calculate your players LTV?
- 30. Juan Gabriel Gomila Salas MAIL: juan.gabriel.gomila.salas@gmail.com WEBSITE: http://juangabrielgomila.com PROYECTO DE GESTIÓN DE VIDEOJUEGOS THANKYOU