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From Competitive Instinct to Competitive Advantage Gamers as Employees and Customers Jeff DeChambeau December 1, 2009

Gamers as Customers and Employees

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Page 1: Gamers as Customers and Employees

From Competitive Instinctto Competitive AdvantageGamers as Employees and Customers

Jeff DeChambeau December 1, 2009

Page 2: Gamers as Customers and Employees

Examine the gaming experience

Implications for managers and marketers

2 © 2009 Moxie Insight. All Rights Reserved.

Page 3: Gamers as Customers and Employees

Games are really big

3 Copyright nGenera 2009

Modern Warfare II (Infinity Ward)

“Games are the new movies”

Ghostbusters (1.25M units)

Batman (>2M units)

Grant Theft Auto IV

Call of Duty: Modern Warfare II

$60-$80/unit

Games are really big

“Games are the new movies”

Ghostbusters (1.25M units)

Batman: Arkham Asylum (>2M units)

Grand Theft Auto IV

Call of Duty: Modern Warfare II

$60-80/unit

© 2009 Moxie Insight. All Rights Reserved.

CoD: Modern Warfare II

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Page 4: Gamers as Customers and Employees

Copyright nGenera 20094

Who are these people?

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Page 5: Gamers as Customers and Employees

Copyright nGenera 20095

GenderGender

Men 55%

Women 50%

AgeAge

18-29 81%

30-49 60%

50-64 40%

65+ 23%

Household IncomeHousehold Income

<$30,000 52%

$30,000 - $49,999 59%

$50,000 - $74,999 62%

>$75,000 56%

FrequencyFrequencyFrequencyFrequencyFrequency

Daily Weekly Monthly Less

All 21% 28% 27% 20%

18-29 20% 30% 30% 16%

30-49 20% 26% 25% 24%

50-64 19% 30% 25% 24%

65+ 36% 28% 17% 14%

Source: Pew Internet & American Life Project Survey, October-December 2007. n=2054 total adults, margin of error is +/-2%

Source: Pew Internet & American Life Project Survey, October-December 2007. n=1063 total adults, margin of error is +/-3%

The numbers

© 2009 Moxie Insight. All Rights Reserved.

Page 6: Gamers as Customers and Employees

Games are their own worlds

6 Copyright nGenera 2009

Spore (Maxis)

People invest a lot (!) of time in these worlds

Successful games are successful for a reason

Best games share common design principles

Gamers are likely to play the best games

We can therefore talk about the “gaming experience”

Page 7: Gamers as Customers and Employees

Copyright nGenera 2009

Games have their own logic

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So does the organization!

In games, this logic is explicitly and implicitly taught to the player

Very specific rules and criteria must be met to win

Winning is always the goal

Gamers are therefore predisposed to following rules

The games have to teach the gamers how to play and win

Let’s look at an example of an entire game that’s a tutorial, Portal

© 2009 Moxie Insight. All Rights Reserved.

Page 8: Gamers as Customers and Employees

Portal videohttp://www.youtube.com/watch?v=TluRVBhmf8w

Page 9: Gamers as Customers and Employees

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Present obstacle

Introduce skill

Confirm competence

Increase challenge

Combine & summarize

Add to toolbox

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Wired explaining Portal

Games teaching gamers

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Page 10: Gamers as Customers and Employees

Plants vs. Zombies (PopCap), GTA3 (Rockstar), NBA 2K10 (Visual Concepts)Legend of Zelda: OoT (Nintendo), Starcraft 2 (Blizzard), Homeworld (Relic)

Copyright nGenera 2009© 2009 Moxie Insight. All Rights Reserved. 10

Page 11: Gamers as Customers and Employees

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Optimize the fun

11 Copyright nGenera 2009

Team Fortress 2 (Valve Software)

Gamers are playing to win

Other gamers are means to victory

Camp, bait, exploit, hack

How do you encourage supportive behavior?

Games generate lots of perfect data

Leads to “local optimization” and “optimal strategies”

Few strategies are better than being the fastest

Page 12: Gamers as Customers and Employees

12 Copyright nGenera 2009

Team Fortress 2 (Valve Software)

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Page 13: Gamers as Customers and Employees

13 Copyright nGenera 2009

Bioshock (2K)

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Page 14: Gamers as Customers and Employees

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Gamers fail often

14 Copyright nGenera 2009

Despair Incorporated

Failure is a core dynamic for all games

Gamers want to win, just not too easily

Failures resets strategies

Encourage new solutions & skills

Attempted in quick succession

Results in a fearless, iterative approach

Skills are mastered through repetition

Example: Braid

© 2009 Moxie Insight. All Rights Reserved.

Page 15: Gamers as Customers and Employees

Braid videohttp://www.youtube.com/watch?v=uqtSKkyJgFM

Page 16: Gamers as Customers and Employees

Forza Motorsports 3http://www.youtube.com/watch?v=kZPHswbgeuY

Page 17: Gamers as Customers and Employees

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Beyond the final boss

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Counter-Strike & Half-Life 2 (Valve Software)

HL2DQCounter-Strike© 2009 Moxie Insight. All Rights Reserved.

Page 18: Gamers as Customers and Employees

Core takeaways

Gamers are self-interested (maybe even lazy)

Gamers have a need for speed

Gamers demand engagement

Gamers experiment (and fail) readily

18 Copyright nGenera 2009© 2009 Moxie Insight. All Rights Reserved.

Page 19: Gamers as Customers and Employees

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Gamers are self-interestedManagersClearly define tasks and “completion conditions”

Explain the bigger picture

Make altruism a system trait

Beware of a “peers as resources” mentality

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MarketersHelp them win, and you win too

Don’t distract, annoy, or detract from the experience

Appeal to their vanity

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Page 20: Gamers as Customers and Employees

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Gamers have a need for speed

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ManagersGive them urgent projects

Beware the tension between speed and velocity

Expect frustration in response to slow peers, processes, and systems

Present tasks in series

MarketersTarget them carefully

Be respectful of their time and succinct with your message

Give them an edge

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Page 21: Gamers as Customers and Employees

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Gamers demand engagement

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ManagersThey are predisposed to following rules

Carefully open up feedback data

Draw clear links between behaviors and results

Recognize wins publicly

Give them a trophy case

MarketersCreate engaging, meaningful consumer experiences

Extend virtual experiences into the physical world

Extend physical experiences into virtual worlds

Offer “context aware” products

© 2009 Moxie Insight. All Rights Reserved.

Page 22: Gamers as Customers and Employees

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Gamers experiment readily

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ManagersSet the scope and context

They’re not afraid to fail, but failure isn’t always “no biggie”

Clearly specify what tools can (or can’t) be used when solving problems

MarketersUnderstand the core dynamics of how games work

Create campaigns that show gamers that you understand their shared experience

Experiment yourself

© 2009 Moxie Insight. All Rights Reserved.

Page 23: Gamers as Customers and Employees

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Related researchGamers as employees and customers, January 2010, by Jeff DeChambeau

Valve Software: Engaging prosumers, competitors, and communities, November 2009, by Jeff DeChambeau

The Art of Warcraft - Leadership, Metrics, Design and Business Intelligence for the Collaborative Enterprise, and Radical Decentralization: Organizational Design, May and June 2009, by Alan Majer

Game Time: Marketing Opportunities in Social Gaming, August 2009, by Catherine Thorn

23 © 2009 Moxie Insight. All Rights Reserved.