Sports & Entertainment Marketing Name: ______

Sports & Entertainment Marketing Name: ______The Business of Video Games

Directions: Please complete the following outline during the class discussion of this unit.

I. How BIG is the Video Game Industry?

A. With global sales of ______billion in 2011, the business of video games is more than ______the size of the ______industry. B. For 2012, the global video game market has been valued at ______billion. C. Movie theater admissions in the U.S. for 2011 was valued at $10.2 billion, globally the total was ______billion. Watch the Video: The Art of Video Games

1. Why has the Smithsonian museum in Washington created a video game exhibit?

2. In your opinion, why has this exhibit become the most popular one at the Smithsonian?

II. Video Games Are Pervasive

A. Today, video games have become ______in our society. B. We see them everywhere and have constant exposure and access to them. C. We can play video games at home on our X-Box, on our computer or tablet, and on our cell phones. D. Video games are also quickly becoming a part of other entertainment media.

III. The Movie Industry Vs. the Gaming Industry

A. It costs about $10 to watch a movie at the theater and about $20 to buy a DVD. The average length is ______minutes. B. Console video games can cost $50-$60 and the average length varies greatly; anything less than ______hours is considered to be short. C. The biggest advantage for video games is the ______value. D. ______are the same whether you are watching them for the first time or the fifth time. E. Since you ______what is happening on the screen, you can play a video game in different ways. F. You won't get the same ______when replaying a videogame as you would when watching a movie. G. The gaming industry is growing at a ______rate than the movie industry. H. This video game: ______: Sold $650 million in the first five days, this set a five-day global record for a movie, book or videogame. This video game has inspired a Jeep product tie-in and numerous other products.

1 IV. Product Tie-Ins for Video Games

A. A ______occurs when a business sells a product that is related to or inspired by another product or service. B. Product tie-ins can offer an additional source of profit for the video game creators. C. In addition to the Jeep Black Ops Edition, the video game Call of Duty has inspired a series of books and novels, t-shirts, hoodies, hats, backpacks, glow-in-the-dark game controllers, and even a toy gun.

V. Cross Promotions in Video Games

A. ______involves two or more companies working together in promoting a service or product in a way that benefits both companies. B. Activision announced a cross promotion plan that partners with Pepsi and lets players gain “double XP time” by redeeming codes in Mountain Dew and Doritos.

VI. Product Placement in Video Games

A. ______occurs when the makers of a video game accept payment for putting brands and products in their games. B. Product placement in video games is becoming more frequent and gradually becoming more sophisticated. C. According to Screen Digest this method of promotion could reach $1 billion by 2014. D. The election campaign of President Obama paid ______for in-game banners encouraging Burnout Paradise players to vote for him in the 2008 U.S. presidential election.

VII. G4 TV – A Channel Focusing on Games

A. ______was launched in 2002, originally targeted at young male adult viewers and based on the world of video games. B. Currently the channel is changing its competitive strategy to include other programming (more like Spike TV), but video games are still heavily represented by this channel. C. G4 TV is owned by NBCUniversal, which is 51% owned by Comcast, 49% by GE.

VIII. NBC Universal – An ______

A. NBCUniversal owns a number of television networks: NBC, NBC Sports, USA Network, Bravo, CNBC, MSNBC, Syfy, E!, The Golf Channel, G4 TV, and several others. B. NBCUniversal also owns the movie studio Universal Pictures creators of ET, Jurasic Park, Fast & Furious, Bridesmaids, Cowboys & Aliens. C. NBCUniversal also owns theme parks including Islands of Adventure featuring Harry Potter, and Universal Studios parks in both California and Florida.

2 IX. Who Plays Video Games?

A. The average video game player in the U.S. is ______years of age. B. Approximately ______of game players are female. C. It is estimated that ______of U.S. homes own a game console. D. ______of Americans over the age of 50 play video games. E. Game players are not usually individuals playing alone, but are playing in teams or in groups. F. Actor ______was kicked off an American Airlines flight Tuesday after he refused to turn off his cell phone at Los Angeles International Airport. G. Baldwin was playing the popular Scrabble-like game "Words with Friends" while waiting for the plane to take off.

X. Video Games Are A Global Business

A. The ______video game market is expected to rise from $22 billion in 2010 to $29 billion in 2015. B. ______is now the second-biggest gaming market, but does not even rank in the top 20 markets for the music business. C. In China, where piracy is rampant, many games can be played online for ______. D. Firms instead make money by ______in-game perks and “______” to dedicated players.

XI. The Changing Nature of Video Games

A. Successful studios have recently adopted a focus on ______over quantity.

B. Electronic Arts has moved from releasing_____ games or more in a year to about _____.

C. This move has actually increased revenue. Why? ______

D. Big-budget games such as Call of Duty and Halo are still popular.

E. However, the growth in game sales now comes from casual games that are simple, cheap and playable in short bursts on mobile phones or in web browsers.

F. Angry Birds has been downloaded 500 million times.

G. What is social-gaming and why has it become so important?

______

H. Zynga’s stock has been falling and the company has lost millions of daily players. Why?

______

3 I. Today's video game publishers employ hundreds of ______per game.

J. These projects take ______to complete, as each new generation of hardware allows for unprecedented advances in graphics, sound, and everything else.

K. The greater the ______of the game, the larger the development team.

L. The larger the development team, the bigger the ______.

1. Halo 3: $55 Million: Microsoft spent an additional $200,000 million to promote and market this game. 2. Gran Turismo 5: $80 million 3. Too Human, $60+ Million 4. Shenmue, $70 million 5. Gran Turismo 5: $80 million 6. Grand Theft Auto 4: $100 Million

XII. Video Games and Violence

A. Violent crime, particularly among the young, has ______dramatically since the early 1990s.

B. During the same period of time, video games have steadily ______in popularity and use, exactly the opposite of what one would expect if there were a causal link between video game violence and violent behavior.

C. Numerous authorities, including the U.S. Surgeon General, the Federal Trade Commission, the Federal Communications Commission and several U.S. District Courts have examined the scientific record and found that it does ______establish any causal link between violent programming and violent behavior.