Wake Up and Smell the Innovation: How Traditional … m 01 Forbes.pdf · Final Fantasy 80 1987 Sims 100 2000 Pokemon 165 1996 Mario 200 1981 Game Sold Released ... –Pirates of the

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Scott Forbes of General Electric Speaker 1:

Law Seminars International | Telecommunications Law | 04/17-18/08 in Seattle, WA

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Wake Up and Smell the Innovation:How Traditional Media and IT are

Rejoining the Game

April 17, 2008LSI Telecoms 2008

Scott Forbes, Ph.D.Technology Ventures

“Don’t shoot! I’m with the scienceteam…”

--Half-Life (1998)


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Cathode Ray Tube AmusementDevice• DuMont Labs• June 1938: first electronic TV

sold to public• 1946: Founded first licensed

TV network• 1948: US#2,455,992

Tennis for Two (1958)


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Pong (1972)

Pong Lawsuit (1974)

• Magnavox suedAtari; Atarisettled for $700K

• US#3,728,480:TelevisionGaming andTrainingApparatus


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How Lucas Made Bank

RoW$24B

US$16B

Video Game Market Size 2007 ($B)

Hardware = printersSoftware = ink


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Console Sales

Sample of Multi $B Franchises


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Top Video Game Franchises

198150Donkey Kong198652Legend of Zelda199365Fifa198570Tetris198870Madden NFL199770Grand Theft

Auto

198780Final Fantasy2000100Sims1996165Pokemon1981200Mario

ReleasedSoldGame

Retrospective & Consolidation: EA

$3.09B revenues (2007)

24 titles >1M copies

Trying to buy Take Two


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Overpaid Executives: Peter Moore

• President, EA Sports• Base salary of $45,833.33 per

month or $550,000 annualized• Bonus target is 75% of base salary• Non-Qualified Stock Option to

purchase 350,000 shares of EAstock

• 50,000 Restricted Stock Units(RSUs)

• $1,500,000 bonus• $300,000 moving expenses

Halo3: “Biggest EntertainmentLaunch in History” (2007)• $170M sales in first 24 hours

– Star Wars: Revenge of the Sith: $50 million– Pirates of the Caribbean 3: $55 million– Spider-Man 3 : $59 million

• $300M sales in first week• 1.7M preorders• 1M online players in first 24 hours

– 3.6M hours of gameplay first day– 40M hours in first week

• $10M spent on marketing


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WoW (2004): Ultimate Service

Blizzard~10M Subs5.5M Asia Subs2.5M North America2M Europe

$2B Annual Cash Flow

Mods Matter

Franchises Spread Like Viruses

Activision•2 years, 14M units, $1BRevenue•Download: 5M; ~$6 each=$30M


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Video Games and VoIP• 2004: Xbox Live• 2004: Nintendo DS• 2006: Sony PS3

"We thought a lot aboutwhat's the essence ofgames, and so much of itis about sharing theexperience withsomeone else…Withoutit, you don't feel who's onthe other side; you don'tfeel the emotion. To acertain extent, you mightas well be playingagainst the machine.”--Scott Henson, Xbox(2004)

Patent Lawsuits• Sony vs.

Immersion(2007), $97.2M– Haptics, force

feedback

• Gibson vs.Activision’sGuitar Hero(2008)


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“Make Love, Not Warcraft” (2006)

“We were excited to hear that the creators of'South Park' were interested in featuring World ofWarcraft in the opening of their new season, andwe really enjoyed collaborating with them tomake this happen. We're looking forward tosharing the experience with our employees andour players as well when the season debuts thisweek.”—Michael Morhaime, Blizzard Cofounder


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High Media Currency

“More Crap” (2007)Director Seth Gordon

Gets deal

Could I Make This Up?

Ursula will play the lead roleand cover model in a globalvideo game by THQ, “Juiced2: Hot Import Nights” soon tobe released on consoles suchas XBOX360 and Playstation3. This video game will also

have a special DVD featuringUrsula just for the fans. Her

commercial for Juiced 2 will airin the fall of 2007 and will also

be seen worldwide.


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Games Lending a Helping Hand…


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• Began in 1999, Private, For-Profit• Reviewed > 6,300 business proposals• Invested in > 100 companies• Tech Priorities

– Application Software and Analytics– Bio, Nano, and Chemical Technologies– Communications and Infrastructure– Digital Identity and Security– Embedded Systems and Power

• 3-D design software that makes designexploration more accessible

• Groups throughout the federal government,defense, and first-responder communitieshave a critical-mission need for tools thatcan accelerate the process of creating 3-Denvironments for rapid mission planning andrehearsal, training, and post-facto situationalanalysis.


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Google Earth: Ctrl+Alt+A = FlightSim


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Sony, Toshiba, IBM: Cell Processor

Started in 2001$400M+

Georgia Tech


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Stanford: 3-D Image Processing;30K

3-D Image Processing

• Mayo Clinic ported andoptimized their ImageRegistration Applicationon the IBM BladeCenter®QS20 "Cell Blade"– 50x image processing

• The advance significantlyaids image registration– Computer-enhanced

alignment in 3-D spaceof two medical imagesobtained at differentdates or by usingdifferent imagingdevices.


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Goblin XNA is a platform for research on 3D userinterfaces, including mobile augmented reality andvirtual reality, with an emphasis on games.

Computer Graphics & User Interfaces Lab


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Last Frontier: Mobile

“7.5 million people downloaded and played a game on theirphone, outnumbering other mobile activities - like listening tomusic and participating in social networks. Smartphoneusers in particular are avid consumers of games, with 7.3percent downloading a game in the month--more thandouble the market average.”—Seamus McAteer, SeniorAnalyst for M:Metrics , March 2008

Open Handset Alliance

Mobile OperatorsSemiconductorsHandsetsSoftware

Other


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Wi-Fi Army (2008)


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Wi-Fi Army Screenshots

What is WiMax?(Worldwide Interoperability for Microwave Access)

• Fixed and Mobile Wireless Data– Last mile wireless broadband access– 802.16e supports mobile access– Up to 268 Mbps and ~30 miles; 10/2 more likely

• Presently 175+ trials. By 2010:– $16.4B service revenue– 15.4M subscribers– 41% subscribers in Asia Pacific markets


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Wi-Max Ecosystem

Chipset Provider

Minor Players

CoreEquipment

Wi-Max Equipment Provider

Licensed/UnlicensedSpectrum

2 to 66 GHz

Licensed 2.5 GHz most common

in US

Network Service Provider

XOHM• Intel spending $2B to fund Sprint+Clearwire

WiMax effort in 2.5 GHz– Intel and Motorola invested $900M in 2006– Clearwire 350K subs; Spring 54M


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WiMax and Healthcare• Intel Australia and Airspan Networks• Australian Grand Prix• Improve communication flow between the

on-site trauma unit and medical specialists atthe Alfred Hospital 3km away

WiMax and Healthcare• Clinicians

received livefeeds from thetrack on the TV.The wirelesscamera on top ofthe TV providedtwo-way videoconferencing withthe Alfredhospital.


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WiMax and Healthcare• A bed area. A

notebookwirelesslyconnected to thewireless LAN,which was thenlinked usingWiMax.

WiMax and Healthcare• Medical workers

used a portable x-ray machine tosend x-rayimages from thefield back to thehospital via theWiMax network.


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Branches on Regulatory Tree• Consumer Protection• Data Protection• Accessibility• Law Enforcement Access• Emergency Services Access

Wake Up and Smell the Innovation:How Traditional Media and IT are

Rejoining the Game

April 17, 2008LSI Telecoms 2008

Scott Forbes, Ph.D.Technology Ventures

Documents

Wake Up and Smell the Innovation: How Traditional … m 01 Forbes.pdf · Final Fantasy 80 1987 Sims 100 2000 Pokemon 165 1996 Mario 200 1981 Game Sold Released ... –Pirates of the