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Market Research Report

The Business of Video Games

Published by DFC Intelligence Product code 358856
Published Content info 180 Page PDF, 144 Slides
Delivery time: 1-2 business days
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The Business of Video Games
Published: September 5, 2018 Content info: 180 Page PDF, 144 Slides
Description

The Business of Video Games has been a premiere game industry report since it was first published in 1995. This report has been used by companies as an employee training manual and portions of it have been converted to textbook for college classes on the Business of Video Games. The current version includes a 180 page pdf report and a 137-slide Powerpoint presentation.

This report is a designed to provide a high level overview of how the game industry works across its entire value chain. There is a focus on the role of major industry players from hardware manufacturers to distributors and content developers. A great deal of the focus on who makes the money when a consumer buys a video game. This report is supplemented by the accompanying PowerPoint presentation The Business of Video Games.

The latest version looks at key industry trends including eSports, the Nintendo Switch, mobile games, virtual reality, digital distribution, micro-transactions, Battle Royale games, new game systems for 2020 and beyond and much more.

This report is the latest September 2018 version shipping 9/18/2018.

Table of Contents

Table of Contents

I. OVERVIEW

  • A. VIDEO GAME MARKET SIZE
  • B. SOFTWARE PUBLISHING VALUE CHAIN OVERVIEW

II. HISTORY

  • A. OVERVIEW
  • B. ARCADE ERA
  • C. RISE OF NINTENDO
  • D. CONSOLE COMPETITION
  • E. MULTIMEDIA AND PC GAMES PHASE ONE: RISE AND COLLAPSE
  • F. RISE OF SONY
  • G. STEADY RISE OF PC ONLINE GAMES
  • H. GROWTH IN ASIA
  • I. THE MMOG ERA
  • J. THE WII CONSUMER AND RISE OF MICROSOFT
  • K. GROWTH OF SOCIAL AND BROWSER GAMES
  • L. GROWTH OF MOBILE GAMES
  • M. NEW CONSOLE SYSTEMS AND DECLINE OF NINTENDO
  • N. DIGITAL DISTRIBUTION, INDIE DEVELOPERS, VIRTUAL REALITY & ESPORTS
  • O. 2017 TO 2018: BATTLE ROYALE, NINTENDO SWITCH AND CONTINUED MOBILE EXPLOSION

III. GAME INDUSTRY FOOD CHAIN AND BUSINESS MODELS

  • A. HIGH-END GAME FOOD CHAIN
    • 1. High-End Business Model
    • 2. Developers
    • 3. Publisher
    • 4. Developer/Publisher
    • 5. Straight Developer Publishers
    • 6. Affiliate Label Developers
    • 7. Publisher/Distributors
    • 8. Retailer
    • 9. Online Distribution
    • 10. Console Manufacturers
    • 11. Content Providers
    • 12. PC Titles: Revenue Breakdown
    • 13. Console Titles: Revenue Breakdown
  • B. GAMES AS A SERVICE/FREEMIUM/F2P BUSINESS MODEL
    • 1. Overview
    • 2. GAS/Freemium Revenue Side Analysis
      • Revenue Model 1: Modest Success Freemium Game /Optional Subscription
      • Revenue Model 2: Solid Hit Freemium Game /Optional Subscription
      • Revenue Model 3: Slow Build Big Hit Freemium Game /Optional Subscription
      • Revenue Model 4: Major Hit Freemium Game/Optional Subscription
      • Revenue Model 5: Solid Hit Pure Virtual Goods Model
      • Revenue Model 6: Major Hit Pure Virtual Goods Model
    • 3. Simplified Freemium Revenue Business Models
    • 4. Freemium Cost Side Analysis
      • Overview
      • Development Cost
      • Marketing and User Acquisition Cost
      • Client Delivery Costs
      • Payment Methods and Financial Infrastructure Costs
      • Ongoing Costs
      • Freemium Cost Model
  • C. SUBSCRIPTION MODELS/STREAMING GAME SERVICES

IV. GAME INDUSTRY MARKET LEADERS

  • A. MARKET LEADERS IN GAME HARDWARE AND DISTRIBUTION
    • Alphabet Inc/Google
    • Amazon
    • Apple
    • Electronic Arts/Activision Blizzard
    • Facebook
    • GameFly
    • GameStop
    • Gree/DeNA
    • Microsoft
    • Nintendo
    • NVIDIA
    • Razer
    • Sony
    • Samsung
    • Tencent
    • Valve
  • B. MARKET LEADERS IN GAME PUBLISHING AND DEVELOPMENT
    • 1. Leading Diversified Game Companies
      • Activision Blizzard
      • Electronic Arts
      • Tencent
    • 2. Leading Premium Game Publishers
      • Japanese Publishers: Capcom/Square Enix/Konami/Sega Sammy
      • Take-Two Interactive
      • Time Warner
      • Ubisoft
      • Valve
      • ZeniMax Media
    • 3. Leading Mobile Game Companies
      • EA Mobile/Jamdat
      • Gameloft
      • Glu Mobile
      • GungHo
      • Kabam
      • King Digital Entertainment
      • Machine Zone
      • SoftBank/Supercell
      • Walt Disney Company
    • 4. Leading PC Game Companies
      • Big Fish Games/Churchill Downs
      • Bigpoint
      • Gameforge
      • Goodgame Studios
      • National Geographic Animal Jam
      • NCSoft
      • Netease
      • Netmarble/CJ Games
      • Nexon
      • Riot Games
      • Valve
      • Wargaming.net
      • WildTangent
      • Zynga

V. GAME CONSUMER AND GAME GENRES

  • A. OVERVIEW
  • B. GLOBAL GAME CONSUMERS BY REGION
  • C. GAME GENRES

Index of Tables

  • Table 1 Global Video Game Software Revenue: Physical versus Digital 2012-2022
  • Table 2 Global Game Software Revenue by Major Platform Type: 2012-2022
  • Table 3 Video Game Console Hardware Unit Sales by Generation: 2012-2022
  • Table 4 Global Console Video Game Software Physical vs. Digital: 2012-2022
  • Table 5 Worldwide PC Game Revenue by Source: 2014-2022
  • Table 6 Worldwide PC Game Revenue by Region: 2014-2022
  • Table 7 Worldwide Console Physical Game Revenue by Region: 2012-2022
  • Table 8 Worldwide Smartphone and Tablet Revenue by Region: 2012-2022
  • Table 9 Worldwide Mobile and PC Gamers by Region
  • Table 10 PC Game Digital Distributors
  • Table 11 Console Game Digital Distributors
  • Table 12 Mobile Game Digital Distributors
  • Table 13 Key Game Industry Sub-Segments
  • Table 14 Traditional Publishing Revenue Split
  • Table 15 Traditional Console Publishing Revenue Splits
  • Table 16 Modest Success Scenario for a Freemium Game with Optional Subscription
  • Table 17 Five Year Cumulative Revenue for Modest Success Scenario for a Freemium Game with Optional Subscription
  • Table 18 Solid Hit Scenario for a Freemium Game with an Optional Subscription
  • Table 19 Five Year Cumulative Revenue for Solid Hit Scenario for a Freemium Game with Optional Subscription
  • Table 20 Slow Build Big-Hit Scenario for a Freemium Game with an Optional Subscription
  • Table 21 Five Year Cumulative Revenue for Slow Build Big Hit Scenario Freemium Game with Optional Subscription
  • Table 22 Major Hit Scenario for a Freemium Game with an Optional Subscription
  • Table 23 Five Year Cumulative Revenue for Major Hit Scenario Freemium Game with Optional Subscription
  • Table 24 Solid Hit Scenario for a Freemium Game with a Pure Virtual Goods Model
  • Table 25 Five Year Cumulative Revenue for Solid Hit Scenario Freemium Game with Pure Virtual Goods Model
  • Table 26 Major Hit Scenario for a Freemium Game with a Pure Virtual Goods Model
  • Table 27 Five Year Cumulative Revenue for Major Hit Scenario Freemium with Pure Virtual Goods Model
  • Table 28 Basic Revenue Model at 2% Conversion Rate
  • Table 29 Basic Revenue Model at 5% Conversion Rate
  • Table 30 Basic Revenue Model at 10% Conversion Rate
  • Table 31 Basic Revenue Model at 15% Conversion Rate
  • Table 32 Freemium Game Marketing Funnel
  • Table 33 Standard Transaction Fee Comparison between U.S. and Korea
  • Table 34 Client-Based Freemium Customer Acquisition Cost Model
  • Table 35 Client-Based Freemium First-Year Profit/Loss Analysis
  • Table 36 Examples of Online Game Subscription Services Circa 2005
  • Table 37 Examples of Game Streaming and Subscription Services 2018
  • Table 38 DFC Intelligence Top 10 Market Leaders in the Video Game Industry: 2018
  • Table 39 DFC Intelligence Video Game Market Leader Ranking Metrics
  • Table 40 Global Game Industry Software Market Leaders by Segment
  • Table 41 Worldwide Video Game Consumers by Region
  • Table 42 Global Video Game Consumers by Region
  • Table 43 DFC Intelligence Game Type Classification Categories
  • Table 44 Example of Leading Cross Category Games
  • Table 45 Top Games by Category

Companies Covered Include:

  • Activision Blizzard
  • Alphabet Inc/Google
  • Amazon
  • Apple
  • Big Fish Games/Churchill Downs
  • Bigpoint
  • Capcom
  • DeNA
  • EA Mobile/Jamdat
  • Electronic Arts
  • Facebook
  • GameFly
  • Gameforge
  • Gameloft
  • GameStop
  • Glu Mobile
  • Goodgame Studios
  • Gree
  • GungHo
  • Kabam
  • King Digital Entertainment
  • Konami
  • Machine Zone
  • Microsoft
  • National Geographic Animal Jam
  • NCSoft
  • Netease
  • Netmarble/CJ Games
  • Nexon
  • Nintendo
  • NVIDIA
  • Razer
  • Riot Games
  • Samsung
  • Sega Sammy
  • SoftBank/Supercell
  • Sony
  • Square Enix
  • Take-Two Interactive
  • Tencent
  • Time Warner
  • Ubisoft
  • Valve
  • Walt Disney Company
  • Wargaming.net
  • WildTangent
  • ZeniMax Media
  • Zynga
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