Marketing of Games

Game-1303 Intro to Game DevSara R. Farr

MarketingA Simple Marketing System

Promotion

AdvertisingPersonal SellingSale PromotionPublicity“Hype”

The Four P’s

Product

Promotion

Price

Distrib

ution

Customers

Product

Quality PackagingFeatures WarrantiesOptions ServicesStyle SizesBrand Returns

Price

List PriceDiscountsAllowancesPayment PeriodCredit TermsComparison

Place

ChannelsCoverageLocationsInventoryTransport

The Product Lifecycle

IntroductoryStage

GrowthStage

MaturityStage

Decline Stage

TotalMarketSales

Time

Sales Low Rapidly Rising Peak Declining

Costs per customer High Average Low Very Low

Profits Negative Rising High Declining

Customers Innovators Early adopters Middle majority Declining

Competitors Few Growing Stable Declining

Marketing ObjectiveCreate

awarenessMaximize

market shareMaximize profit, defend share

Reduce exp, harvest brand

Product Basic productProduct

extensionsDiversity of

modelsPhase out weak items

Price Cost-plusPrice to grab

marketPrice to match

market Cut price

PlaceSelective channels

Intensive distribution Move intensive

Selective phase out losers

PromotionEarly adopter

awareness Mass MarketStress brand, differences

Reduce to maintain core

Sale promotionHeavy, entice

trial Reduce Increase brandReduce to minimal

IntroductoryStage

GrowthStage

MaturityStage Decline Stage

TotalMarketSales

Time

Competitor Analysis

Future Goals– At all levels of

management– Multiple dimensions

Assumptions– holds about self and

industry

Capabilities– Strengths– Weaknesses

Current Strategy– How is business

currently competing?

Market Entry Analysis

Competitor response profile– Is competitor satisfied with current position?– What move may they likely make in response?– Where is competitor vulnerable?– What will provoke the greatest and most

effective retaliation by competitor?

New Product Introduction

LaggardsLateMajority

EarlyMajority

EarlyAdoptorsInnovators

"TheChasm"

Technology Adoption Process

SWOT Analysis

External

Internal

External

Internal

Games Marketing Pyramid

Games Industry Statistics2006

Kalani W. StreicherGame 1303

Source: ESA

2006 Industry Sales Data

Sales by ESRB Rating

Entertainment Software SalesHistorical Sales Figures • $7.4 billion in U.S. sales in 2006• $7.0 billion in U.S. sales in 2005• $7.2 billion in U.S. sales in 2004• $7.0 billion in U.S. sales in 2003. • $6.9 billion in U.S. sales in 2002. • $6.4 billion in U.S. sales in 2001. • $6.0 billion in U.S. sales in 2000. • $6.1 billion in U.S. sales in 1999.

Entertainment Software Sales

02468

1012

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Year

$ Bi

llion

Industry Sales Information

Computer and video game software generate $7.0 billion in sales. – Console games $5.8 billion– Computer games $1.2 billion

Of all games sold: – 56% were rated Everyone (E).

• Up from 54% in 2003 – 28% were rated Teen (T).

• Down from 30.5% in 2003– 15% were rated Mature (M).

• Up from 11.9% in 2003• 84% of the best-selling console games

were rated E or T• 90% of the top 20 best-selling computer

games were rated either E or T

Console vs PC sales 2003

Console

PC

Everyone54%

Teen, 31%

Mature, 12%

By Game Rating

http://www.mmogchart.com/

MMOG Active Subscriptions 7.0

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

Jan-97

Tota

l Cur

rent

Sub

scrib

ers

Ultima Online EverQuest Asheron's Call Anarchy Online

Dark Age of Camelot Final Fantasy XI The Sims Online Star Wars Galaxies

A indicates the release of an expansion.

Jul-97 Jan-98 Jul-98 Jan-99 Jul-99 Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03