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Opportunities for Storage in the Growing Global Markets for Video Games

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Opportunities for Storage in the Growing Global Markets for Video Games Opportunities for Storage in the Growing Global Markets for Video Games John Carlsen Syncopated Systems 2019 Storage Developer Conference. © 2019 Syncopated Systems. All Rights Reserved. 1 Opportunities for Storage in the Growing Global Markets for Video Games Agenda ● Why talk about video games? ● Overview of historical trends ● Summary ● Q&A 2019 Storage Developer Conference. © 2019 Syncopated Systems. All Rights Reserved. 2 Opportunities for Storage in the Growing Global Markets for Video Games Why talk about video games? ● Playing games is fun. (Though making games is real work.) ● Big money, steady growth ● Opportunity through unmet need 2019 Storage Developer Conference. © 2019 Syncopated Systems. All Rights Reserved. 3 Opportunities for Storage in the Growing Global Markets for Video Games How big is the market? 2019 Storage Developer Conference. © 2019 Syncopated Systems. All Rights Reserved. 4 Opportunities for Storage in the Growing Global Markets for Video Games Annual Sales (MM USD) 1,000,000 USD (MM) 100,000 USD (MM) 10,000 USD (MM) Worldwide US & Japan 1,000 USD (MM) US US retail 100 USD (MM) US arcade 10 USD (MM) 1 USD (MM) 2019 Storage Developer Conference. © 2019 Syncopated Systems. All Rights Reserved. 5 Opportunities for Storage in the Growing Global Markets for Video Games Key Ideas ● Digital storage is the canvas upon which game developers paint. ● In Silicon Valley, we are in the business of selling the future. ● “I know of no way of judging the future but by the past.” – Patrick Henry, 1775 2019 Storage Developer Conference. © 2019 Syncopated Systems. All Rights Reserved. 6 Opportunities for Storage in the Growing Global Markets for Video Games A Quick History of Video Games ● 1921-1929: Philo T. and Elma Gardner "Pem" Farnsworth invent electronic television – 1927: Patent issued while based in San Francisco ● 1958-1959: William Higinbotham creates oscilloscope-based game Tennis for Two – Interesting, though few owned oscilloscopes 2019 Storage Developer Conference. © 2019 Syncopated Systems. All Rights Reserved. 7 Opportunities for Storage in the Growing Global Markets for Video Games ~ A Vignette, About 50 Years Ago ~ 2019 Storage Developer Conference. © 2019 Syncopated Systems. All Rights Reserved. 8 Opportunities for Storage in the Growing Global Markets for Video Games 50 Years Ago (1996 interview about 1969): ● Interviewer: The image dissector was used to send shots back from the moon to earth. ● Elma Farnsworth: Right. ● Interviewer: What did Phil think of that? ● Elma Farnsworth: We were watching it, and, when Neil Armstrong landed on the moon, Phil turned to me and said, "Pem, this has made it all worthwhile." Before then, he wasn't too sure. 2019 Storage Developer Conference. © 2019 Syncopated Systems. All Rights Reserved. 9 Opportunities for Storage in the Growing Global Markets for Video Games A Quick History of Video Games – 1970s: ● Ralph Baer invents video games – Creates Magnavox Odyssey using discrete logic ● Atari sees it and makes coin-operated Pong – Also using discrete logic – Made ASIC for Home Pong 2019 Storage Developer Conference. © 2019 Syncopated Systems. All Rights Reserved. 10 Opportunities for Storage in the Growing Global Markets for Video Games A Quick History of Video Games – 1970s: ● Microprocessors invented (4-bit i4004; 8-bit i8008, F8, MC6800, MCS6501, MCS6502) ● Games distributed on ROM cartridges – Also on audio cassette tapes and 5¼” floppy disks, if you could afford RAM to load programs into ● 16-bit CP1600 in Mattel Intellivision 2019 Storage Developer Conference. © 2019 Syncopated Systems. All Rights Reserved. 11 Opportunities for Storage in the Growing Global Markets for Video Games A Quick History of Video Games – 1980s: ● RAM gets cheap (so do floppy disks) ● 1983 North American Video Game Crash ● Games still distributed on ROM cartridges – Also on 5¼” and 3½” disks, though you quickly needed a hard disk drive to load programs into ● 16-bit MC68000 in Sega Genesis 2019 Storage Developer Conference. © 2019 Syncopated Systems. All Rights Reserved. 12 Opportunities for Storage in the Growing Global Markets for Video Games A Quick History of Video Games – 1990s: ● Nintendo – Partners with Sony for Super Nintendo – Partners with Silicon Graphics for Nintendo 64 – Makes first coin-operated game with a hard disk ● Sony PlayStation makes CD-ROM affordable 2019 Storage Developer Conference. © 2019 Syncopated Systems. All Rights Reserved. 13 Opportunities for Storage in the Growing Global Markets for Video Games A Quick History of Video Games – 2000s: ● Microsoft Xbox ● Optical Discs Get More Density and Layers ● HDDs Enable Network Downloads ● Nintendo adopts MEMS, releases Wii – Keeps it simple, takes 50% market share 2019 Storage Developer Conference. © 2019 Syncopated Systems. All Rights Reserved. 14 Opportunities for Storage in the Growing Global Markets for Video Games A Quick History of Video Games – 2010s: ● More of same ● Nintendo Switch 2019 Storage Developer Conference. © 2019 Syncopated Systems. All Rights Reserved. 15 What does history teach us? 2019 Storage Developer Conference. © 2019 Syncopated Systems. All Rights Reserved. 16 Opportunities for Storage in the Growing Global Markets for Video Games The costs of developing for new media: ● Super Nintendo programming tool – $60k in 1990, $15k in 1991 ● CD-ROM mastering tool: $25k in 1991 ● Nintendo 64 programming tool (SGI Onyx): – $100k+ in 1995 (plus building wiring) 2019 Storage Developer Conference. © 2019 Syncopated Systems. All Rights Reserved. 17 Opportunities for Storage in the Growing Global Markets for Video Games Network-based delivery doesn’t keep up 2019 Storage Developer Conference. © 2019 Syncopated Systems. All Rights Reserved. 18 2019 Storage Developer Conference. 2019 © SyncopatedAll Rights Systems.Reserved. Size of Distribution Media by Year Size of DistributionbyMedia Games Video for Markets Global Growing the in Storage for Opportunities Media Capacity (Bytes) 1MiB 1GiB 1E+12 1TiB 1kiB 1E+0 1E+3 1E+6 1E+9 1kB 0B Computers Consoles Other Sony Sega Nintendo Atari 19 Opportunities for Storage in the Growing Global Markets for Video Games Summary ● More media = more game ● If using ROM, need to emulate in situ 2019 Storage Developer Conference. © 2019 Syncopated Systems. All Rights Reserved. 20 Opportunities for Storage in the Growing Global Markets for Video Games Questions and discussion? 2019 Storage Developer Conference. © 2019 Syncopated Systems. All Rights Reserved. 21 Thank you John Carlsen <[email protected]> Syncopated Systems Sunnyvale, CA www.syncopate.us 2019 Storage Developer Conference. © 2019 Syncopated Systems. All Rights Reserved. 22.
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