SteamMachine (A presentation on a new form of video game
distribution) By Megan Reardon
Slide 2
Valve Corporation is a video game development & digital
distribution company based in Bellevue, Washington Founded in 1996
by former Microsoft employees Gabe Newell and Mike Harrington
Creator of multiple award-winning games Developer of leading-edge
technology like Source, the game engine, and Steam, social-media
based video game distributor
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GAME CREATORS Team Fortress (1999) originally for Windows (Mac
OS/Linux: 2013) adapted from Quake modification Portal (2007)
created for Windows/XBOX/PS3 physics based puzzle game Portal 2,
the sequel, was the first Valve game developed for PS3 Left 4 Dead
(2008) created for Windows/XBOX 360 (Mac: 2010) co-operative zombie
shooter Half-Life (November 1998) first video game created by Valve
first in the Half-Life series originally for Windows (PS2: 2001;
Mac/Linux: 2013)
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WHAT IS digital distribution platform for PC/Video gaming
includes a social-media/communications platform initially developed
for Microsoft Windows in 2003 (has since expanded into Mac OS X and
Linux; limited availability on PS3, iOS and android) Running the
iTunes of computer games (Slate, 2013)
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BY JANUARY 2013: over 2,000 games available 54 million active
user accounts 6.6 million concurrent players estimated 50 - 70%
share of the digital distribution market for downloadable PC games
($18 billion industry) expanding from production to distribution,
Steam is now the key player in computer game sales (Slate,
2013)
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SO STEAMMACHINE? Valves first step in broader plan to erase
Windows from PC gaming entirely (Forbes, 2013) 3 separate pieces
that utilized together will bring PC gaming from computer room to
the living room 1. SteamMachine 2. SteamOS 3. Steam Controller NOT
ACTUAL STEAMMACHINE
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new category of gaming machine (TIME, 2013) hackable,
upgrade-able, open source hardware several 3rd party vendors will
offer machines however Valves machine will offer the most control
possible over the hardware will allow users to build their own
machine if they want set to be available at three price points
depending on performance level STEAMMACHINE
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OS STEAM Linux based operating system FREE operating system
stream music, media and Steam video games no internet browser
improved graphic performance & audio enhancement designed
specifically for big screen TVs must have linux version of games to
play them
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2 touchpads instead of traditional joysticks 16 buttons all
over the controller touchscreen in the center of controller better
relay of information from in-game to player and back using haptic
feedback STEAMCONTROLLER
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TRIP DOWN MARKETING FUNNEL released information on the
SteamMachine in a series of 3 press releases on 3 separate days
running contest through the month of October for current Steam
users who want to become beta testers for the SteamMachine/SteamOS
300 people running as beta testers who are to provide word-
of-mouth feedback on the console and the OS as they play
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STILL FALLING THROUGH all the marketing falls under awareness
marketing as there is no product for anyone to be converted to yet
multiple press releases on multiple days allows for greater control
over the news media and more time spent on your product contest
running all month provides source of awareness during the run beta
testers provide source of word-of-mouth advocacy & marketing
awareness throughout beta testing process
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customizable & buildable cheaper than Windows OS stream
music, movies, games most control over hardware available for all
regions, worldwide provide greater knowledge from inputs via
controller STRENGTHS ALSO NOT STEAMMACHINE
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brings worst part of PC gaming to living room-- continual arms
race BioShock, Grand Theft Auto, Call of Duty (some of the bigger
name games on Steam) have no Linux support and wont work on
SteamMachine Linux is not a familiar platform for most users Linux
itself only currently has 200 games available that controller is
insane, lets be real will do exactly what the Playstation and XBox
already do WEAKNESS
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shift the power of PC gaming to the living room take power of
PC gaming away from Windows & Microsoft completely grow Linux
as computer operating system control bigger market share in video
game industry OPPORTUNITIES
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current industry rivals: XBox One, Playstation 4 potential
threats: Apple, Google, and Amazon all making their own consoles
THREATS substitutions: Apple TV, Roku, ChromeCast, other streaming
media device new start-up coming in to create a better interface
new game coming out only available on existing platforms product
isnt a necessity for buyers, they dont demand it
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Valve is placing a lot on the success on their SteamMachine to
bring their software from the computer room into the living room
and make them central to the interactive media experience. Theyve
spent a lot of money developing their OS and especially into the
new controller. PERSONAL REACTION BUT...
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As Slate mentioned, the future of PC gaming is a console? How
is that different from current consoles? There are already multiple
consoles in the marketplace and apparently by the end of the year,
there will be even more. SteamMachines release for early-mid 2014
puts it behind all the others. THAT SAID...
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Linux is not a familiar OS for most people and the curve to
learn it will be high. The controller comes with a high learning
curve as well and is fairly intimidating to people who would be new
to gaming. AND! There are only 200 games! AND! STILL NOT A
STEAMMACHINE
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If you really want to build users for SteamMachine and the
SteamOS best case would be to make the next Half-Life game,
Half-Life 3, only available to download through SteamOS. MY
RECOMMENDATION?
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Overall, I dont think it will work as well as Valve hopes it
will. While it definitely will appeal to a niche market, it wont be
the game-changer that Valve wants it to be. FINAL THOUGHT NOPE NOT
STEAMMACHINE