IGDA Online Games White Paper 2nd Edition – March 2003 Written by the IGDA Online Games Committee Alex Jarett Committee Chairman Jon Estanislao Committee Vice-Chairman and Editor Elonka Dunin Editor Jennifer MacLean Market Overview Section Editor Brian Robbins Business Models Section Editor David Rohrl Production and Design Section Editor John Welch Game Technology Section Editor Jeferson Valadares Online Publishers Section Editor IGDA Online Games White Paper - 2003 FORWARD It is generally accepted now that the Internet and online games provide a tremendous opportunity for new forms of entertainment and for growing the game market at large. With the massive success of online games, ranging from games such as EverQuest to Bejeweled to Pogo and Shockwave, it's pretty clear that this opportunity is real and here to stay. Online features are now starting to take hold in the console wars. It's no longer a question of whether the console world will embrace online, but how much. For the independent developer, the online world offers opportunities ranging from contrarian business models, to a less risky way to try out new ideas, to simply a way to work on different and cool projects. But the independent developer is at a strategic disadvantage when it comes to the online world. Without access to research on what's actually happening in online, a developer can quickly find that any investments made will not get the returns needed. How many developers do you know who are working on the next “great” massively multiplayer game, but don't have any real idea how that game is going to find a market? This project was designed to fill the information void. This particular version of the White Paper is now the second edition. The first version, published and presented in conjunction with the 2002 GDC, has had over 5000 downloads from the IGDA website (www.igda.org). Developers and publishers from all over the globe have read it and used the information to help them with their plans. For this year, we now present an updated version. As you compare the two versions, you can't help but see how the market has grown. Just look at the publisher section and you'll see how many new publishers are now actively into online. Additionally, we’ve expanded the coverage of online games from just PC, web, and console games to preliminary coverage of wireless and interactive television. It's a very exciting time for the market! I want to also point out how great it has been to experience the openness of the game community for this project. I’ve been impressed by the willingness of colleagues ranging from senior executives at companies such as Sony and EA to independent developers from across the globe to work together to create this document for the community at large. This White Paper is the result of their hard work. In another section of this document are all of the names of the people who worked on this edition. Please take a moment to review the people who were involved, and if you like their section, let them know! A very special thanks goes out to all of these people who took time out of their busy schedules to help get this done. In particular, I’d like to thank Jon Estanislao for all of his hard work and dedication to this project. It was really Jon who kept this project alive this year, and his persistence and hard work in assembling, editing and working with the rest of the team is the reason why we have such a strong document again this year. Thanks Jon! I'd also like to thank the IGDA Board that continues to believe in this project and helped give us the reach to get this done so quickly. Finally, I’d like to thank the new leadership team for volunteering to continue this project! I’m proud to announce that John Welch and Jeff Valadares will be leading the committee next year. It’s really gratifying to see the committee continue! I hope this document is of value to you for whatever project you are working on. Alex Jarett Chairman, IGDA Online Games Committee [email protected] 2 IGDA Online Games White Paper - 2003 CREDITS Online Games Committee IGDA Online Games • Alex Jarett Committee Chairman President, BAP Games, LLC, and Technology Executives Club, Ltd. Email: [email protected] IGDA Online Games • Jon Estanislao Committee Vice-Chairman Manager, Business Development & Emerging Platforms, Activision, Inc. Email: [email protected] IGDA Online Games • Elonka Dunin Committee Editors General Manager, Online Community, Simutronics Corporation • Jennifer MacLean Director, Subscriber Applications, Comcast Online Communications • Brian Robbins Software Engineer, Worlds Apart Productions • David Rohrl Senior Producer, EA Online • Jeferson Valadares Creative Director and Co-Founder, Jynx Playware • John Welch Vice President of Product & Technology, AtomShockwave Corp. Contributors by Section Market Overview • Jennifer MacLean (Section Editor) Director, Subscriber Applications, Comcast Online Communications • Kate Connally Senior Director, Product Marketing, AtomShockwave Corp. • Greg E. Mills Business Development Manager, AOL Time Warner • Bernard Yee Vice President, Publishing, En-Tranz Entertainment Business Models • Brian Robbins (Section Editor) Software Engineer, Worlds Apart Productions • Peter H. Friedman Proprietor, Certified Public Accounting firm • Daniel James CEO, Three Rings Design • Greg Mills Business Development Manager, AOL Time Warner • Derrick Morton • Terri L. Perkins ARK Personnel Director, Anarchy-Online • Ole Schreiner Director of Customer Service, Funcom Inc • Howard Schwartz Managing Director, HJ Ventures International • Patrick Smyth President and Director, CYOP Systems International Inc. • Xrjan Mathis Tvedt ARK Manager, Funcom 3 IGDA Online Games White Paper - 2003 • Gordon Walton VP & Exec Producer-The Sims Online, Maxis/Electronic Arts Production and Design • David Rohrl (Section Editor) Senior Producer, EA Online • Matthew Ford Program Manager, Microsoft • Daniel James CEO, Three Rings Design • Eric Zimmerman CEO, Gamelab • Kate Connally Senior Director, Product Marketing, AtomShockwave Corp. • Pete Isensee Software Development Lead, Xbox Advanced Technology Group, Microsoft • Mark de Loura Manager of Developer Relations, Sony Computer Entertainment America • Jay Minn President, Blam! • Mitzi McGilvray Principal, Slam Dunk Productions • Steve Meretzky Creative Content Director, WorldWinner.com • Gordon Walton VP & Exec Producer-The Sims Online, Maxis/Electronic Arts Game Technology • John Welch (Section Editor) Overview Vice President of Product & Technology, AtomShockwave Corp. • Travis Baldree Producer/Software Engineer, WildTangent • Michael Bayne Three Rings Design, Inc. • Alex Bratton Founder of WebRPG; CTO of The Net Squad International • Lee Crawford CTO, Stadeon Inc. • Shekhar Dhupelia Online Architect, High Voltage Software • Bertrand Duplat President & CTO, Virtools • Brad Edelman Macromedia • Peter Glover Sr. Director, Product & Engineering, AtomShockwave Corp. • Garr Godfrey CTO, GameHouse • Paul Holman VP Technology, Sony Computer Entertainment Europe • Pete Isensee Lead Developer, Xbox Advanced Technology Group, Microsoft • Daniel James CEO, Three Rings Design, Inc. • Lamont Lucas Director, Systems Operations, AtomShockwave Corp. 4 IGDA Online Games White Paper - 2003 • Wade Tinney Partner/Game Designer, LargeAnimal • Joseph Varet Vice President, Groove Alliance • Josh Welber Partner/Technical Director, LargeAnimal • Peter Wiese Online Publishers • Jeferson Valadares (Section Editor) Creative Director and Co-Founder, Jynx Playware • James Belcher Consultant, Technology Practice, FIND/SVP • Robert Buckley Marketing Copywriter, Writer, Artist and Animator • Larry Dunlap Founder and Creative Director, Intelligent Life Games Author, Imperial Wars • Michelle Sandoval Office Manager, CFO, and Part-Owner, SharkByte Software Inc. • Patrick Smyth President and Director, CYOP Systems International Inc. • Mike Wabschall Director of Sales, Digital Mercenaries, Inc. Biographies of all Committee Members and Contributors are located at the end of the White Paper in Section VII. 5 IGDA Online Games White Paper - 2003 TABLE OF CONTENTS FORWARD.................................................................................................................................................... 2 CREDITS....................................................................................................................................................... 3 TABLE OF CONTENTS ............................................................................................................................... 6 I. INTRODUCTION ................................................................................................................................... 8 A. Presentation of the Online Games White Paper at GDC 2003 ...................................................... 8 B. Background and Purpose............................................................................................................... 8 C. Audience......................................................................................................................................... 8 D. Scope ............................................................................................................................................. 8 E. Disclaimer....................................................................................................................................... 8 II. MARKET OVERVIEW.......................................................................................................................