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'Beware the death of the disc'
Key online firms explain how they succeeded - and why traditional publishers have failed
Traditional PR and marketing, competition with rivals, and boxed product - all of these things face extinction when digital downloads take hold.
That's according to a panel of online games experts grilled by industry veteran Phil Harrison at this evening's London Games Conference.
Playfish's Kristian Segerstrale, Mark Gerhard from Jagex and Thomas Bidaux of ICO Partners all agreed that games have a massive future that is online-centric - and that traditional games publishers need to be ready.
They need to be quick too: as the physical disc is due an imminent demise, they agreed.
Publishers must look at "how consumer behaviour and the way they interact is moving online" said Segerstrale, whose Playfish digitally publishes social
games like Pet Society and Restaurant City on Facebook.
Pet Society regularly scores over 20m monthly uniques, Restaurant City has 17m - that's half the size of World of Warcraft.
"[The industry has] meandered own this road creating games for solitary entertainment," added Segerstrale, pointing out the wide audience reach of his firm's games. "There's an opportunity to bring games back from this niche."
But traditional publishers, the Ubisofts and EAs of the world, haven't really touched this space, Harrison and the panelists pointed out.
The implication was that there are vastly different skillsets between the established retail-centric games industry, and players like Jagex and its Runescape MMO have the upper hand when it comes to online games.
"Everything is going to merge at some point," said ICO's Bidaux. "You won't categorise games as being played online, because they all will be. You won't say they are social because all will have integrated friends lists."
He later added: "It's not random that the biggest players in social games are not tied to any of the major players in the established market."
MMOs and their publishers, specifically, will eventually ditch their retail component as they realise that "online is a safer model that is sustainable in the long term", said Bidaux.
"Going after the launch effect is acually a very dangerous strategy - because you are in for the long term, not just launch. Making too big a launch impacts you if players wll stay - and it creates an economy in your company that isn't healthy."
The different behaviour of players operating online versus those that go into shops also means PR and marketing as publishers know it is facing extinction, the panel said.
Said Gerhard: "We create good games - people tell their friends about that. That's it. We've never had a marketing or PR campaign in 10 years. The users will go and promote the game for us."
Added Segerstrale: "There is a big green field in online - you compete with everyone and eveything. It's not like retail where if there is no shelf space, or you aren't in the top 30, you are done. You can focus on your own game and not care about the competition."
And as the industry potentially turns its back on discs - ultimately, all three agreed with Harrison that future games consoles will lack an optical disc-drive - that means retail could remain just an outfit to reach a limited set of consumers; retail becomes just a promotional gimmick.
Gerhard admitted the Jagex is interested in releasing its hugely popular Runescape game on disc at retail - but only "as a marketing opportunity. It doesn't get any deeper than that."
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http://www.casualgaming.biz/news/29252/Key...stibution-event
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'Key speakers signed for digital distibution event'
The programme for the London Games Conference has been announced, with an impressive and eclectic line-up of speakers, panelists and topics. The event brings together key thinkers and experts from across the industry, including a number of opinion formers involved in the casual sector.
Tickets are still available to order too, from Rob.Baker@intentmedia.co.uk.
Themes already emerging for the first event dedicated to digital distribution include how established firms are adapting to the emergence of online sales, and how specialist companies and new business models are rising up to challenge them.
With digitally distributed content increasingly fundamental to the success and future of the casual sector, the London Games Conference should be an essential date in the diary of all those involved in the development, distribution, publishing, monetisation and hosting of casual content.
The event, which takes place at BAFTA in Piccadilly on Tuesday, October 27th, starts at 5pm with an opening address from Ed Vaizey, the shadow minister for culture, who will outline the Conservative Party’s plans for the industry.
The conference proper then gets underway with a ‘big picture’ presentation from Nick Parker, one of the industry’s most respected analysts, outlining the current landscape and projected growth for digital distribution.
Other highlights include a session hosted by ELSPA's Andy Payne, who will be joined by the likes of Playfish CEO Kristian Segerstrale and Jagex CEO Mark Gerhard to discuss the new relationships forming between those in development, retail, publishing and distribution, as the download model gathers pace.
There is also a panel headed by Edge editor Tony Mott in which the three hardware kings, Nintendo, Sony and Microsoft, will all discuss their online gaming services and plans to expand themsomething that nobody involved in the casual industry should miss.
Xbox UK boss Neil Thompson and the director of PlayStation Home Pete Edwards will both attend this discussion.
Tickets, priced at £229, are selling fast. To secure your delegate place, please contact or call 01992 535647. Discounts are available for ELSPA and Tiga members.
All information about the event can be found at www.londongamesconference.com
The full London Games Conference programme is as follows:
Tuesday, October 27th BAFTA, 195 Piccadilly, London
4:30pm – Registration
5:05pm – Opening Address
Ed Vaizey, Shadow Minister for Culture
The man who may well be the games industry’s next voice in government talks directly to the London Games Conference for the event’s opening speech.
5:10pm – The Future of Digital Distribution
Nick Parker, Parker Consulting
Where are we headed next? One of the games market’s most respected analysts outlines the current digital distribution landscape and offers up exclusive pointers to the future of the sector.
5:35pm – Daddy, What’s a Disc?
A panel discussion on the death of physical media and the business models that will replace them.
Host: Phil Harrison, Former president of Sony Worldwide Studios
Panellists: Kristian Segerstrale, CEO and co-founder, Playfish; Mark Gerhard, CEO, Jagex; Thomas Bidaux, CEO, ICO Partners
6:10pm – Coffee
6:30pm – The New Food Chain
Video games will still be made, sold and distributed. But not like they have been. This panel discussion will look at the new lines of demarcation between development, retail, publishing and distribution.
Host: Andy Payne, ELSPA
Panellists: Charles Cecil, CEO, Revolution Software; Nick Pili, Network Director, SEGA; Gian Luzio, Product Director, The Hut; Rich Keen, Marketing Director, Direct2Drive
7:00pm – Charting the Progress of PC Downloads
Dorian Bloch, GfK-ChartTrack
The man behind the UK games sector’s invaluable sales charts (and holder of vast amounts of market data) talks on how digital distribution is the future of the PC games market – and makes a forceful case for a industry download chart.
7:20pm – Outside the Box
Key figures from the market’s three established format holders discuss their roles in the brave new digital future.
Host: Tony Mott, Edge
Panellists: Pete Edwards, Director, PlayStation Home, SCE; Neil Thompson, Senior Regional Director, UK & Ireland, Microsoft; TBA, Nintendo
8:00pm – Dinner and Networking
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http://www.mcvuk.com/press-releases/51731/...ames-Conference
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'40 PERCENT OF GAMES INDUSTRY UNDER PREPARED FOR SHIFT TOWARDS DIGITAL DISTRIBUTION'
London Games Conference set to highlight the opportunities and pitfalls generated by‘seismic shift’
Digital distribution is poised to outstrip traditional retail sales within three years and 40 percent of companies within the games sector are unprepared
for the rate at which this shift will take place. These are just two of the claims that will be made by speakers at the London Games Conference, which
takes place at BAFTA on Tuesday 27 October 2009.
The conference will look at every aspect of this seismic shift within the industry with speakers drawn from the development, publishing, retail and
distribution communities.
Nick Parker, of Parker Consulting, will provide an overview of how the digital map is set to change over the next few years. He believes that 2013 and
2014 will be the likely dates for the next generation global launches respectively from Microsoft and Sony, and that, as a result, from 2010 traditional
box product sales will begin to fade. However he predicts that digital distribution, along with online gaming, will potentially make up the shortfall during
this period.
“For the first time ever, the games industry has a way of alleviating the pain that traditionally befalls it during generational decline, through online
gaming in its many guises– it’s a genuinely exciting time for the industry and the London Games Conference is perfectly timed to discuss these
opportunities,” commented Parker.
Speakers at the conference include Mark Gerhard from Jagex, Kristian Segerstrale from Playfish, Nick Pili from Sega, Pete Edwards from PlayStation
Home and Neil Thompson from Xbox.
The conference will also feature an opening address from Ed Vaizey, Shadow Minister for Culture.
The event forms part of the London Games Festival and is supported by ELSPA.
Tickets are priced at£229 and can be obtained by contacting Rob.Baker@intentmedia.co.uk or call 01992 535647. Discounts are available for ELSPA
and Tiga members.
