Transcript Sega MSN Presentatio..

SegaNet
vs.
MSN Gaming Zone
A Strategy Comparison
Outline
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Framework for Analysis
The Gaming Industry
Comparison
The Winner
Framework: Determinants of On-line Success
Context and
Competition
Content
Community
Communications
Connectivity
Context and Competition
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Information Content
Value Proposition
Customer Acceptance
Differentiation via
Personalization
• Industry Structure
• First Mover
Advantage
• Switching Costs and
Lock in
• Issues facing
incumbants
• Issues facing new
entrants
Context
• $8B computer games
market.
• 2% are On-line games.
• Gamer population to
double from 1997 to 2002.
• Revenues to grow from
$127M to $770M in 2003
Gamer Population Growth
Competition
• Platform/Game Specific Networks
– First and Third party games for specific platforms
– Subscriptions and pay-per-use.
• Platform-Neutral Networks
– Access to different gaming platforms
– No cross-platform gaming
– Advertising and subscription revenues
• On-line PC Game Networks
– Simple on-line PC games like solitaire, Bingo
– Based on advertising revenue
Content
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Types
Quality
Presentation
Delivery
Content
SegaNet
• Console network
• Limited title selection
compared to console
selection
– Action, RPG, Sports,
Strategy
• No test ability
• Dynamic site graphics
Game Zone
• PC Network
• Numerous titles
– Free, Retail, Premium
• Static graphics
Connectivity
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Types of Alliances
Affiliation Programs
Link with Portals
Connectivity with Suppliers
Channels
Connectivity
SegaNet
• Focus on Alliances
– Content: Third party
publishers
– Traffic: Genuity
– Services: Amazon.com
– Technology:
Innomedia
– Entertainment:
FamilyWonder, Nike
Game Zone
• Mainly Internal
Alliances
• External
– Content: Third party
publishers
– Technology:
WildTangent
– Entertainment: Cases
Ladder
Community
• Types of Communities
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Transaction
Interest
Fantasy
Relationships
• Mechanisms for Nurturing
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Email
Multi-user Dimensions
Chat Channels
Conferencing systems/Bulletin Boards etc.
Community
SegaNet
• Traditional
– Society
– Insider Information
• New
– VMU
– Voice-Over IP
Game Zone
• Some traditional
methods.
• No special
mechanisms to unite
users.
Communications
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Types
Mechanisms
Stakeholder coverage
Message
Customer Service/Personalization
Communications
SegaNet
Game Zone
• Targeted to its niche
market customers.
• Message: “You’re an
insider.”
• Leverages MSN.
• Message: “Welcome
to Las Vegas”
The Future
• Gaming will be included in our definition of
entertainment.
• Technology Improvements
– Next generation consoles
• Built-in entertainment features
• Game evolution
– Broadband connectivity
The Winner
• First-mover advantage may not matter.
– Xbox on the horizon.
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Responsiveness to technology counts.
Hit Games count more.
Intense entertainment experience will win.
Time for a new market leader?