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2004 Web and Downloadable Games White Paper IGDA Online Games SIG

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2004 Web and Downloadable Games White Paper IGDA Online Games SIG 2004 Web and Downloadable Games White Paper IGDA Online Games SIG 2004 Web and Downloadable Games White Paper Presented at the Game Developers Conference 2004 by the IGDA Online Games SIG The IGDA Online Games SIG Steering Committee: Brian Robbins White Paper Editor Greg Mills White Paper Assistant Editor John Welch Chair Jeferson Valadares Assistant-Chair Alex Jarett Chairperson Emeritus Elonka Dunin Jon Estanislao Jennifer MacLean Dave Rohrl Page 1 of 93 2004 Web and Downloadable Games White Paper IGDA Online Games SIG FORWARD The concept of downloadable games is nothing new. Small free games have been available for download for many years. As a revenue-producing section of the industry though, Web and Downloadable games have come into their own over the past couple years. One of the places this is most apparent is at the annual Game Developers Conference, held in March in California. When our group was forming in 2000 and 2001, few people seemed to understand what web/downloadable titles were about. At GDC 2002 more people understood the market, and from the buzz you could start to see that this might become a significant portion of the game industry. At GDC 2003, Web and Downloadable games had a bit of a coming out party. There were numerous sessions devoted to the format, lots of developers creating these titles, and quite a few successful companies making the rest of the industry take notice. As of this writing we are getting close to GDC 2004 and it is very easy to see that the Web and Downloadable games industry is transitioning from the early growth stages of the past few years, and starting to become a more mature marketplace. Several publishers and developers have found profitable and scalable business models, and have even begun leveraging their titles onto other platforms. We are seeing higher quality games, with more time and effort put towards their development. In a similar vein, this paper is evolving from those of previous years. Instead of writing a single paper that attempts to cover the entire online games space, we broke the task into three separate papers, each targeted to a specific segment of the marketplace. The mobile gaming paper, and the Persistent World Games paper, will be available later this year. This paper is devoted to Web and Downloadable Games. It is the result of work from more than 30 contributors, each of whom freely volunteered their time and expertise to create this document. In this paper we dive much deeper into the Web and Downloadable games industry than we were able to do in years past. We flesh out the details specific to these types of games, and as a result provide you, the developer, with a much more useful document than we could deliver before. One would be very hard pressed to find any single document that covers in more depth and detail the state of the Web and Downloadable games industry. Our contributors have written about the overall marketplace, the various business models, and the technologies being used by developers today. They have gone beyond the catalog of publishers we have had in the past, and this year give us an overall perspective of the publishing space, as well as an in depth look at several of the key players. Finally, we have numerous case studies providing specific details and examples on a given topic. Our contributors have done a phenomenal job this year, much better than we ever could have expected. This is truly a paper that was created for the industry, by the industry. Although this paper could not have been created without the efforts of all our volunteers, we would like to specifically thank Elonka Dunin for her tireless efforts in helping us edit and revise this paper from the work of many individuals, into the single cohesive report we now present to you. Greg Mills also deserves special mention for all of the effort he has put forth helping organize, plan, and execute on this project from the very beginning. Finally, thanks go to Radu Fusariu of Fuel Industries for creating the graphics found throughout this report. The IGDA Online Games SIG has ongoing efforts in numerous aspects of the online games industry. All of our projects depend on the time and efforts of our volunteers. If you’d like to give something back to the community, please volunteer to get involved. You can start by visiting our website at http://www.igda.org/online/ and signing up for our discussion list. On behalf of the contributing writers and the other members of the Steering Committee of the IGDA Online Games SIG, we thank you for your interest in our White Paper. With best regards, Brian Robbins John Welch Editor, Web and Downloadable Games Paper Chair, IGDA Online Games SIG Senior Creative Technologist, Vice-President of Product & Technology, Fuel Industries Inc. AtomShockwave Corp. [email protected] [email protected] Page 2 of 93 2004 Web and Downloadable Games White Paper IGDA Online Games SIG CREDITS White Paper Editors Editor • Brian Robbins Senior Creative Technologist, Fuel Industries, Inc Email: [email protected] Assistant Editor • Greg Mills Senior Manager, Business Development, Time Warner Email: [email protected] Section Editors • Steven DeBenedictis (Online Publishers) Principal, Bumps River Industries • Derrick Morton (Market Overview) Senior Director, Marketing, GameHouse Studios • Christian Oestlien (Case Studies) • Andy Phelps (Technology Overview) Assistant Professor, Rochester Institute of Technology • Wade Tinney (Production and Design) Large Animal • Josh Welber (Production and Design) Large Animal • Mark Warner (Business Models) CEO/President, Nexus Entertainment, LLC Contributors by Section Market Overview • David Kennerly Contractor • John Lee Executive Director International Business, Turbine Entertainment • Miguel Oliveira CEO, GameBubbles LLC Business Models • Steven Davis CEO, IT GlobalSecure, Inc. • Peter H Friedman Proprietor, Certified Public Accounting firm • Paul Lewis Senior Vice President Sales & Marketing, MindComent Corporation • David Nixon Director of Publishing, Oberon Media, Inc. Production and Design • Margaret Wallace Skunk Studios • Juan Gril Yahoo! Games Game Technology Overview • Mal Duffin CanDo Interactive • John-James McChesney Senior Staff Engineer, Metrowerks • Jehan Snyers d'Attenhoven Cherokee Europe Steven Davis CEO, IT GlobalSecure, Inc. Page 3 of 93 2004 Web and Downloadable Games White Paper IGDA Online Games SIG Online Publishers • James L. Belcher Consultant - FIND/SVP, Inc. • Scylla Costa Co-founder, Producer - Jynx Playware Case Studies • Nicole Lazzaro President, XEO Design, Inc. • Garrett Link Real Networks • John Lee Executive Director International Business, Turbine Entertainment • Steve Meretzky Principal Game Designer, WorldWinner • David Nixon Director of Publishing, Oberon Media, Inc. • Miguel Oliveira CEO, GameBubbles, LLC • Simon Oliver Head of Research and Development, Random Media • Scott Roesch VP Marketing, AtomShockwave Corp • Sukhbir Sidhu Senior Producer, PopCap • Mike Vann VP Sales, YaYa Media, Inc. Biographies of all Committee Members and Contributors are located at the end of the White Paper in Section VII. Page 4 of 93 2004 Web and Downloadable Games White Paper IGDA Online Games SIG TABLE OF CONTENTS FORWARD.................................................................................................................................................... 2 CREDITS....................................................................................................................................................... 3 TABLE OF CONTENTS ............................................................................................................................... 5 I. INTRODUCTION ................................................................................................................................... 7 A. PRESENTATION AT 2004 GAME DEVELOPERS CONFERENCE............................................................... 7 B. BACKGROUND AND PURPOSE ............................................................................................................ 7 C. DEFINITIONS ..................................................................................................................................... 7 D. AUDIENCE AND SCOPE ...................................................................................................................... 7 E. DISCLAIMER...................................................................................................................................... 7 II. MARKET OVERVIEW........................................................................................................................ 9 A. INTRODUCTION.................................................................................................................................. 9 B. CONSUMER SEGMENTS ................................................................................................................... 10 C. MARKET ANALYSIS AND ESTIMATES ................................................................................................. 11 EUROPEAN DEVELOPMENT OF NEW REVENUE SOURCES FOR INTERNET GAMES................................ 13 D. POPULAR SITES .............................................................................................................................. 14 E. TYPES OF GAMES ........................................................................................................................... 15 F. EUROPEAN PRODUCT PERSPECTIVE ...............................................................................................
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