innovation in computer games

Innovation in Computer GamesDTU, November 2008


SO – what’s going to happen today?

Innovation in generalmain focus on product innovation, opportunity recognition and ideation

Innovation in Gamesunderstanding the product

Analysis and experiencesfurther product understanding and examples

Short summary in the endwhat’s worth remembering?

Questions?whenever you feel like it…


Personal introduction

Jeppe MøllerGame Producer

Guppyworks – Tween Girl MMO, PC (current)ZeitGuyz Game Developers – Action Adventure, AAA

Pollux Gamelabs – 4x space strategy, PCLittle Computer People – Episodic Adventure

MSc IT, from the IT University of CopenhagenMaster thesis on ‘Innovation in Computer Games – Strategies for Success’

ContactM . Jeppe Gmail . Comwww.linkedin.com/in/jeppemoller


Innovation is…

A new angel to reach new users and a new use of the product (e.g.. Nintendo Wii, Bacardi Breezer)

Advantage through new wrapping(e.g.. iPod Shuffle, milk-in-a-bag)

A new recipe on the existing product (main focus for today)(e.g. Ben & Jerry’s Ice Cream, Action-RPG games)

New technology for the product(e.g.. Cameras in mobiles, ice cubes from the fridge)

Opening to a new market(e.g. Laptop 4 everyone)

New marketing to sell the product(James Bond and Vodka)


Value chain

Focus on how game developers can create value for the consumer/end user through product innovation


Definitions for today… what makes a product innovative?

‘Product innovation’ = something experienced as new for the end user - in comparison to similar products on the market. Potentially a success for the developer.

‘Adoption’ = user embracement of products

‘Success’ = money in the bank to create more products and stay in business

Innovation ≠ just a good idea or a brand new product


Examples of failed innovations

– or Hell on wheels

Price, timing, demand…


Where does innovation come from?

Radical vs. incremental innovation

Mind vs. Market

Art vs. Design

Risk vs. Conservatism

Revolution vs. Evolution

Radical Innovation is taking a ’Leap of Faith’


Opportunity recognition and evalution process

Pros and cons in methods for ideation and evaluation (a brief touch)

Development methods - Stage Gate, Agile/Scrum and consumer behavior in the idea evaluation

advantages and pit falls. How can this affect the innovation process?


Technologies that drive computer game innovationUnderstanding these technologies helps identifying the opportunity.(will differ from product category to product category)

‘Gameplay’ is the recipe for the product - and how the technologies are put to use.


Computer games – a historical viewpoint

The early years – Universities and research, 1946-1967Tic-tac-toe , Tennis for Two, Space wars

Arcade Halls , 1967 - 1979PONG, more Space wars

Home Invasion 1975 - 1984Pacman & Space Invaders

The Golden Age 1982 - 1992C64, Amiga, home gaming

The New Dimension 1992 - 1999Wolfenstein/Doom, (Myst) – Home PC, 3D

The Net! 1997 + Ultima Online, online worlds

‘Next’ Gen, 2005 +Consoles, communities, user generated content, new users


Innovation life cycleFrom a helicopter perspective, the historical changes can be visualized like this. It’s important that a company can react to market changes to survive in the long term.


Console life cycle

Current trends and when to reactA typical production time for games can easily be as much as 3 yearsWhen to reach the market?

PC vs console developmentsteady progress vs large steps in technology.The user experience of these two platforms is different.


Moore’s Law“The number of transistors that can be placed inexpensively on an integrated circuit will increase exponentially, doubling approximately every two years”

As technology evolves, new products will see the dayBut as new technology is expected – can anything be a revolution?

Opportunity recognition from new technology development Vs. Opportunity recognition within the current technology Basically it’s a choice.


Examples 1 – from the Danish game industry

Risk managementDifference in new to the developer/ new to the market


Examples 2 – Own experiences

Personal examples – from ZeitGuyz to Guppyworks

From hardcore to casual gamers

From console to PC online

New for the company + new to the market?

Already doing the risk? Doubling it means less…

User experience of the two games

– radical or incremental innovation?

Recoil, ZeitGuyz Game Developers, 2008. GuppyLife, Guppyworks, 2008.


Current trendsUser generated contentSo-called casual playersCommunitiesGoing mobileCOPE

What the coming years can bringCompany mergers

fewer but larger fish in the seaQuality bar will be raised

eventually killing more companiesRe-use of existing designs

incremental innovation is interpreted as ’safe area’ (and for new users will even old games feel new)Shorter time-to-market & cut the middle man - online games

XBLA, PS3 ’Home’, WiiWare, PC Download Channels,


Key Challenges for Game Developers in the FutureThe entry level continues to increase each year.

Gfx, complexity, high end platforms

Rising development costbut not a comparable rise in income!

Asia is a rising starand do not care about western consoles

OpportunitiesFinding unvisited marketsRadical innovationsEpisodic gaming, web solutions

Openings for new products on web browser, handhelds, XBLA, Steam or other…

But for how long? and who will be the first to take the next big leap?


Summary

Time to market is crucial

User adoption is a must to create financial success

Design is cheap, production is expensive – fail more and often!(what a paradox for startup companies…)

Strategic planning is important – foresight of the futureeven time will kill excellent ideas


Readings

Cooper, Robert G. Winning at New Products – Accelerating the Process from Idea to Launch (Third Edition).Perseus Publishing, Cambridge, Massachusetts. 2001

Franklin, Carl. Why Innovation Fails. Spiro Press, 2003.

Goldenberg, Jacob & Mazursky, David. Creativity in Product Innovation.Cambridge University Press,2002.

Rogers, Everett M. Diffusion of Innovation (5th edition). Free Press, New York, 2003.

Smith, Roger. Game Impact Theory: The Five Forces That Are Driving the Adoption of Game Technologieswithin Multiple Established Industries. 2006. http://www.ctonet.org/documents/SmithR_GameImpactTheory.pdf

Sonja Kangas – The first 15 Years of Girl Games. souplala.net/show/girlgames_first15years.pdf

11 Innovation Lessons from the Creators of World of Warcraft

http://innovation.freedomblogging.com/2008/04/04/11-innovation-lessons-from-creators-of-world-of-warcraft/

En erhvervsøkonomisk analyse af fire fokusområder i de kulturelle erhverv. 2000. Kulturministeriet, Danmark.

Intel Innovation. Moore’s Law. http://www.intel.com/technology/mooreslaw/index.htm

Managing Creativity and Innovation. Harvard Business School Publishing Corporation, 2003.

Innovation i computerspil – strategier for succes (Master thesis) . http://www.itu.dk/people/jeppem/Innovation%20i%20computerspil%20-%20FINAL2.pdf

http://www.ctonet.org/documents/SmithR_GameImpactTheory.pdf

http://www.itu.dk/people/jeppem/Innovation%20i%20computerspil%20-%20FINAL2.pdf


Questions?