The Past,The Past,Present & FuturePresent & Future

ofofComputer GamesComputer Games

DevelopmentDevelopment

Nick Burton, Rare / MGSNick Burton, Rare / MGSUniversity of NottinghamUniversity of Nottingham

88thth of March 2007 of March 2007

So what's this all about?So what's this all about?• An overview of the An overview of the

computer games computer games industry, where it industry, where it came from and where came from and where it’s headingit’s heading

• Plenty of time for Plenty of time for questions at the endquestions at the end

• Your chance to find Your chance to find out more!out more!

Who are we?Who are we?• Personally worked in the Personally worked in the

game industry for 9 years game industry for 9 years as a software engineer for as a software engineer for RareRare

• 98+ million games sold98+ million games sold• 22 years’ games industry 22 years’ games industry

experienceexperience• Developed for 12 different Developed for 12 different

platformsplatforms• Acquired by Microsoft Acquired by Microsoft

Game Studios in 2002Game Studios in 2002• Over 200 employeesOver 200 employees

A Brief History LessonA Brief History Lesson• Space War - First computer game, Space War - First computer game,

1962, First coin operated version 1962, First coin operated version 19701970

• Pong – First commercial success, Pong – First commercial success, 19731973

• Rise and Fall of arcadesRise and Fall of arcades• Rise of Home gamingRise of Home gaming• Rise of Mobile gamingRise of Mobile gaming• Web 2.0 and gamingWeb 2.0 and gaming• Gaming has grown up into a real Gaming has grown up into a real

entertainment businessentertainment business• 110 Million PS2s in the world110 Million PS2s in the world• 12 Million Xbox 360’s12 Million Xbox 360’s• Games now an accepted art formGames now an accepted art form

Growth over the last 30+ Growth over the last 30+ yearsyears

• Pong generated an estimated $3.2 Pong generated an estimated $3.2 million income in 1973 for $500 initial million income in 1973 for $500 initial investmentinvestment

• In 1997 US games industry was worth In 1997 US games industry was worth $4.7 billion$4.7 billion

• In 2005 US games industry was worth In 2005 US games industry was worth $20+ billion$20+ billion

• Average year on year growth is 19%Average year on year growth is 19%• Shift from arcades to home gaming Shift from arcades to home gaming

over that last 15+ yearsover that last 15+ years• In 2004 Halo 2 generated more than In 2004 Halo 2 generated more than

$125 million in its first day on sale$125 million in its first day on sale• To date Halo 2 has sold more than 7 To date Halo 2 has sold more than 7

million unitsmillion units• Biggest names in the business Biggest names in the business

Microsoft, Sony, EA, NintendoMicrosoft, Sony, EA, Nintendo

Industry ModelIndustry Model• The CustomerThe Customer• The RetailerThe Retailer• The DistributorThe Distributor• The PublisherThe Publisher• The Platform HolderThe Platform Holder• The DeveloperThe Developer• Investment (venture capital etc.) Investment (venture capital etc.)

banks don’t like developersbanks don’t like developers• Current Trends (consolidation Current Trends (consolidation

etc.)etc.)• Nothing like the movie, music or Nothing like the movie, music or

TV industriesTV industries

It’s a roundaboutIt’s a roundabout• The industry is cyclicalThe industry is cyclical• Every 5 to 7 years a new Every 5 to 7 years a new

generation of consoles arrivesgeneration of consoles arrives• A particular console’s A particular console’s

popularity follows a curve popularity follows a curve during its life hitting a high during its life hitting a high point around 2/3 though its life point around 2/3 though its life cyclecycle

• As popularity of a specific As popularity of a specific console format is dwindling a console format is dwindling a successor is waiting in the successor is waiting in the wingswings

• Computing power is ever Computing power is ever increasingincreasing

Getting a product to marketGetting a product to market• 20 to 100 people 2+ years work, 20 to 100 people 2+ years work,

that’s at least 40 man yearsthat’s at least 40 man years• $4 to $10 million in production $4 to $10 million in production

costs on average across the costs on average across the industry, but can be moreindustry, but can be more

• Product TestingProduct Testing• Focus Group TestingFocus Group Testing• MarketingMarketing• External Market forcesExternal Market forces• Censorship and TCR issuesCensorship and TCR issues• Hitting a moving target – the bar is Hitting a moving target – the bar is

continually risingcontinually rising

MisconceptionsMisconceptions• Not all games are a financial Not all games are a financial

success, for every hit 20 titles failsuccess, for every hit 20 titles fail• Game developers don’t all drive Game developers don’t all drive

Ferraris Ferraris • It’s not the boom or bust industry It’s not the boom or bust industry

of 20 years agoof 20 years ago• Game developers are not out to Game developers are not out to

corrupt your childrencorrupt your children• Game developers are responsible, Game developers are responsible,

well organised software well organised software developersdevelopers

• Games are not written by one Games are not written by one person in a bedroom anymoreperson in a bedroom anymore

• The most popular console is not The most popular console is not always the most profitable for a always the most profitable for a developer to work ondeveloper to work on

The Future…The Future…• The Challenges;The Challenges;

– Richer experienceRicher experience– Lower Development CostsLower Development Costs– Longer Product Shelf LifeLonger Product Shelf Life– Growing TalentGrowing Talent

• Empowering the Player/UserEmpowering the Player/User– YouTube, Flickr, Wikipedia et al, can YouTube, Flickr, Wikipedia et al, can

Web 2.0 be applied to games?Web 2.0 be applied to games?– Make better Developers and expand Make better Developers and expand

the industrythe industry– MS-XNA, the start of a visionMS-XNA, the start of a vision

• Next Generation of Consoles, Next Generation of Consoles, 2011?2011?– Will consoles converge with PCs or Will consoles converge with PCs or

other devicesother devices

QuestionsQuestions?

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