Fast development in Game Industry

Description:

The computer and video game industry took in about USD$7 billion in the US in 2005 (ESA annual report). According to a speech delivered by Doug Lowenstein, President of Entertainment Software Association, the core market now is comprised by consumers of 18 to 35 year olds, and a full one-third of gamers are women. And with US hardware and software sales of $10 billion in year 2003, gaming is the fastest growing and most lucrative entertainment medium in the world.

Most innovations that contribute to the modern game industry come from the computing world. Some of them are listed below,  Sound cards: developed for addition of digital-quality sound to games. Later improved for music and audiophiles.  Graphics cards and 3D graphic accelerators: were developed for graphical user interfaces (GUIs) and games. GUIs drove the need for high resolution, games drove 3D acceleration. They also gave one the opportunity to use SLI or CrossFire graphics cards, or two graphics cards in one computer.  Joysticks were developed mainly for playing games.

The most rapid technology development occurring only within the last decade allows for innovative interaction and gaming across different environments; within this context, the future applications for videogames seem limitless. But in the same time, since technology and available platforms increase, providers will have to continue to decide on how to distribute their content. However, the future of the game industry still lies in innovation.

Enablers:

1. Technological breakthrough in sound and graphic processing

2. Growth of online population

3. Expanding target market, wider age range and increasing female consumers

4. Potential market in developing countries

5. Trend of self-isolation

6. Beginner friendly operation

7. Development of Mobile phone technology

8. Barrier disruption of online communication

Inhibitors:

1. Violence and eroticism in computer games

2. Health issues, e.g. damage to hands and eyes, lack of outdoor activities

3. Traditional entertainment such as television and movies

4. Piracy as the threat of content regulation

5. Ballooning game production budgets

6. Lack of incentive for creativity in game design

7. Increase in development costs (Initial investment)

8. Trend of open source

9. Decrease in population

10. Aging of population

Paradigms:

1. Computer and video game is no longer a niche market, it’s becoming one of the most fast growing industry and even partly becomes the inertia of CPU development because it applications demand faster processors than traditional applications.

2. At the same time that the gaming audience matures, the rate of technological change will level off. As a result, superior graphics will no longer help to sell games; the focus will turn to the things that improve "quality of experience". The end result will be "a market that favors developers willing to break out of the box and serve a diversity of interests." (Doug Lowenstein)

3. Games with beginner friendly operations have involved new customer segments including women and seniors. This trend provides households with additional opportunities to have intimate communication with family though games.

Experts:

Doug Lowenstein, President of Entertainment Software Association

Yoichi Wada, Taito CEO of Square Enix

Timing:

1961: a group of students at MIT, including Steve Russell, programmed a game titled Spacewar!, which is credited as the first widely available and influential computer game.

1971: Nolan Bushnell and Ted Dabney created the first coin-operated arcade game named Computer Space.

1972: Magnavox released the Magnavox Odyssey, the first commercial video game console.

1981: 3D Monster Maze, the first 3D game for a home computer.

1980s (late): Early online gaming emerged.

1996: 3dfx released the Voodoo chipset, leading to the first affordable 3D accelerator cards for personal computers.

1997: Final Fantasy VII released by Nintendo made a huge success, establishing the popularity of role-playing games in the west.

2006: Envizions Computer Entertainment announced Evo: Phase One, a "next generation media hub" that "allows customers to pause, rewind and record live TV, store family photos, play 3D PC games, and access console like applications."

Web Resources:

1. http://en.wikipedia.org/wiki/History_of_computer_and_video_games

2. http://en.wikipedia.org/wiki/Game_industry

3. http://www.gamespot.com/news/6097710.html

4. http://www.gamasutra.com/php-bin/news_index.php?story=10324