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Gamer 2.0 :
                              Exploring the use of Gaming
                              Community & Social Media

                             Karen O’Brien, Partner

                             Chris Terschluse, Analyst

                             Crimson Interactive Services

                             August, 2009


www.crimson-consulting.com                                  © CRIMSON CONSULTING 2009
Agenda

                             Research Goals

                             Current Gaming Trends

                             Gamer Personas

                             Gaming Community & Social Media Best
                             Practices

                             Introduction to Crimson Consulting




www.crimson-consulting.com                            1             © CRIMSON CONSULTING 2009
Research Goals

                             Overview of current gaming trends and use of social
                             media and community by gamers

                             Provide insight into gamer lifestyle, behavior, needs,
                             desires, and motivation

                             Highlight best practices of gaming communities and their
                             use of social media tools




www.crimson-consulting.com                             2                         © CRIMSON CONSULTING 2009
Today’s Gaming Trends




www.crimson-consulting.com     3            © CRIMSON CONSULTING 2009
Summary of Gaming Trends

                     New game experiences and casual gaming have changed gamer
                     demographics
                     Gamers want gaming experiences that are customizable and interactive
                     Multiple revenue models are utilized to monetize games
                     Gamers now demand social experiences within games
                     The use of social networks is growing at an exponential rate – especially
                     among adults
                     Gamers are avid social networkers, often sharing information such as
                     photos, videos, or blogs.
                     Social media has a major influence on consumer purchase decisions




Source: Essential Facts About the Computer and Video Game Industry, Entertainment Software Association, 2009; Crimson analysis
www.crimson-consulting.com                                                      4                                                © CRIMSON CONSULTING 2009
Trends: Changing Gamer Demographics
            Gamers are getting older, comprising over half of the US adult population.




          Who is Playing Video Games?
                  US based Gaming Population of
                  114 million –comprising 52% of
                  adult population
                  21% percent of adults report
                  playing daily




Source: Essential Facts About the Computer and Video Game Industry, Entertainment Software Association, 2009
www.crimson-consulting.com                                                      5                              © CRIMSON CONSULTING 2009
Trends: Changing Gamer Demographics
                                       Online and mobile casual gaming is growing.

                                            Who is Playing Video Games Online




Source: Essential Facts About the Computer and Video Game Industry, Entertainment Software Association, 2009
www.crimson-consulting.com                                                      6                              © CRIMSON CONSULTING 2009
Trends: Changing Gamer Demographics
                        Casual and fitness games are changing the gamer demographic.

         Video Games Appeal to Everyone
                 Growth in the Casual Game Industry
                         Online gamers are more educated and earn a higher         Nintendo Wii & DS
                         annual income
                             Moderate video gamers have an aggregate             “In the wake of the introduction of
                             income of $1.4 trillion, or 35% of the aggregate     these two new systems, internal
                                                                                 Nintendo research showed a 42%
                             income of all video-gamer players, compared to      increase in DS purchases among
                             the $766 billion of avid gamers                      women, a 127% increase among
                                                                                people over 30 and a 212% increase
                 Women                                                          among people over 35 during an 18-
                                                                                month period ending in Spring 2007”
                         While women account for only 34% of Avid gamers,
                         they comprise 57% of Moderate and 53% of                - Advertising Age, October 15, 2007
                         Occasional gamers
                         Most online gamers 30 years old and over are
                         women. Female online gamers are especially
                         prevalent among online gamers in the 45+ age group




Source: The Adult Video Game Market in the US Packaged Facts ‘09
www.crimson-consulting.com                                         7                              © CRIMSON CONSULTING 2009
Trends: Changing Gamer Demographics
                        Casual and fitness games are changing the gamer demographic.

Video Games Appeal to Everyone
        Families
                Video gamers with children at home account
                for 52% of all those playing games on their
                cell phones, 43% of online game players and
                46% of those playing offline computer games.

        Seniors
                The number of 18- to 24-year-old male video
                gamers is expected to increase by 7.4%, while
                the number of video gamers among 55- to 64-
                year-old men will grow by 34.4% into 2012




Source: The Adult Video Game Market in the US Packaged Facts ‘09
www.crimson-consulting.com                                         8         © CRIMSON CONSULTING 2009
Trends: New Gaming Experiences
                               Video Games are utilized for more than entertainment.

            Games offer more than just fun

                    Health Benefits
                             Theuse of video games to boost brain power and encourage physical activity
                             is sweeping the senior population - Consumer Reports on Health (September
                             2007)
                             The University of Medicine and Dentistry of New Jersey used the Wii system
                             to help a patient with cerebral palsy, a movement disorder affecting balance
                             and coordination.

                    Exercise Games: Wii Fit & EA Sports Active

                    Games used for education & training




www.crimson-consulting.com                                  9                              © CRIMSON CONSULTING 2009
Trends: New Gaming Experiences
          Augmented reality technology is changing the way we play and interact with
                                        video games




                 Microsoft’s Project Natal
                Technology uses a camera/sensor to track a user's movements, and map that movement to an
                avatar/character in the game-space – controller free


                 Sony Playstation’s EyeToy & Eye Pet
                Augmented Reality systems utilizing a motion tracking camera and motion sensors to bring
                users into the game

www.crimson-consulting.com                                       10                                        © CRIMSON CONSULTING 2009
Trends: New Gaming Experiences
                        Mobile games allow for virtual game play in real life environments.




www.crimson-consulting.com                            11                           © CRIMSON CONSULTING 2009
Trends: New Gaming Experiences
              Games need to be interactive and dynamic, creating an alternate reality.

                    Customization
                       Gamers want to influence the storyline or create their own
                       Dynamic Virtual Worlds – 2nd Life, Free Realms, WoW
                       Integration of user generated content (customize in-game
                       characters, environments, avatars, profiles, and personalities)
                                 Sims 3
                                 Spore
                         Open API game development and user generated game portals
                                 Little Big Planet
                                 XNA Creators Club




www.crimson-consulting.com                           12                         © CRIMSON CONSULTING 2009
Trends: New Gaming Experiences
            Little Big Planet and XNA Creators Club offer customization of characters,
                    objects, and levels player as well as communities for sharing
                                       user generated content.

                       Playstation’s LBP online has a
                       community of over 2 million users
                       with an average of 35,373 user-
                       generated levels uploaded each
                       week.
                       As of June 2009, more than
                       900,000 user-created levels have
                       been published and these had been
                       played 200 million times.
                       Microsoft’s XNA Creators Club
                       allows users to create and build
                       custom games. For a subscription
                       fee, games can be submitted to
                       Microsoft, reviewed, and displayed
                       on the community game portal.




Sources: Wikipedia & http://www.us.playstation.com/News/PressReleases/509
www.crimson-consulting.com                                                  13   © CRIMSON CONSULTING 2009
Trends: New Gaming Experiences
           Kongregate.com looks to become the YouTube of independently developed
                                       video games




                    Any registered user can upload any type of game they have created. Users then rate and review the
                    game – If it garners three stars, it will show up on the list of games.
                    Weekly or monthly contests are held in which the highest rated game of that month/week wins a cash
                    prize
                    Kongregate functions as a social network with in-game chat features, profiles, real time rankings/user
                    standings
                    A built in rewards system awards users points for reviewing games, referring friends, and completing
                    achievements


Sources: http://en.wikipedia.org/wiki/Kongregate
www.crimson-consulting.com                                          14                                         © CRIMSON CONSULTING 2009
Trends: New Gaming Experiences
        Video game developers experiment with crowdsourced video game development

            Roundhouse and Firma are creating an online
            public community of “cartel” to be involved in
            the development of a new game.
            Members of the community will be introduced
            to a democratic voting system and society.
            Developers will place ideas out to the “cartel”
            and allow them to decide the direction of the
            game, genre, storylines, controls, and even
            the name.
            Community members will be asked for $50 fee
            that will guarantee a copy of the game, and
            will provide incentives along the way to
            participate
            Funded by the community. Goal is to get over
            100,000 members, generating $5m in revenue
            up front for development




Source: http://news.cnet.com/gaming-and-culture/?keyword=Video+game
www.crimson-consulting.com                                            15   © CRIMSON CONSULTING 2009
Trends: Changing Revenue Models
             Digital game distribution has become scalable and accessible while sales on
                             game consoles and hardware have declined.


             Changing Revenue Models
                     Ad supported/in-game advertising

                     Subscription Services

                     Digital Game Services

                     Offers/Incentives ( Offerpal, Super Rewards, Peanut Labs etc.)

                     In-Game “microtransactions”




www.crimson-consulting.com                              16                            © CRIMSON CONSULTING 2009
Trends: Changing Revenue Models
                 MapleStory touts success through microtransactions and prepaid cards.

            Free-of-charge, 2D, side-scrolling MMORPG.
            Players interact through chatting, trading,
            and mini-games. Game play enhancements
            and character appearances are purchased.

            In 2007 MapleStory sold $30m of digital
            goods in the US alone with a subscriber base
            of 6 million – ARPU $20 month

            As of May ‘08 prepaid cards used to buy
            game items are now the 2nd best-selling
            entertainment gift card at Target stores in the
            U.S., after cards for the iTunes Store

            DFC’s estimated revenue for 2008 ranges
            between $150-500m placing it 3rd amongst
            top 10 revenue generating MMO’s


                 “Estimated $1.8 billion
           microtransactions or sales of virtual
             goods in virtual worlds in 2009,
            worldwide” – www.fastcompany.com

Sources: http://www.virtualgoodsnews.com/2009/02/maple-story-nets-150500m-in-revenue-for-2008.html
http://online.wsj.com/article/SB121150576226416235.html?mod=2_1567_topbox
www.crimson-consulting.com                                                    17                     © CRIMSON CONSULTING 2009
Trends: Changing Revenue Models

                                  IKEA and Ford partner with EA for in-game products.

            The Sims 2 offers branded
            virtual goods from IKEA &
            Ford
            Users can design their
            rooms to fit their
            personalities with IKEA
            made items including sofas,
            beds, tables, TVs, desks and
            much more. Each item is
            available in a variety of
            colors and patterns for a
            customized look
            More than 3.3 million Ford
            vehicles have been
            downloaded in the game,
            making The Sims the most
            successful Ford dealership
            in the world

Source: http://www.gamershell.com/companies/electronic_arts/452016.html
www.crimson-consulting.com                                                18        © CRIMSON CONSULTING 2009
Trends: Changing Revenue Models
        Digital game services offer al-a-carte game downloading for the PC and console




www.crimson-consulting.com                   19                         © CRIMSON CONSULTING 2009
Trends: Changing Revenue Models
                             OnLive offers cloud-based gaming services and large scale
                                              community infrastructure.




www.crimson-consulting.com                             20                         © CRIMSON CONSULTING 2009
Trends: Gaming Goes Social
                             Gaming and Social Media are blending together to create
                                        unique interactive experiences.

                   Gamer Social Capital
                                                           “One of the central elements of
                   Social Gaming
                                                            the video gaming experience in
                   Mobile Gaming                            2009 is its capacity to serve as a
                                                            tool to build social networks and
                   Online Gamer Conversation
                                                            communities – both real and
                   OpenID                                   virtual – as well as to function as
                                                            a means of pure entertainment.”
                   Gaming Communities                        The Adult Video Gamer Market in the U.S.,
                                                                                 Packaged Facts ‘09
                   Gaming Wiki’s




www.crimson-consulting.com                            21                                        © CRIMSON CONSULTING 2009
Trends: Gaming Goes Social
        Management of reputation and online social capital has grown in importance.




                         Gamers work hard to build their point totals, achievements, and rankings – now they
                         want to share them
                         Reputation tools important to community and can now be displayed on social
                         networking profiles
                         GamerCards help gamers network within their communities, forming clans/guilds with
                         other accomplished players

www.crimson-consulting.com                                           22                                        © CRIMSON CONSULTING 2009
Trends: Gaming Goes Social
         Gaming conversations, online and in-game, are being aggregated and shared
                    via social networks and in-game real time streams




                                   Gamers form online
                                   communities through
                                conversation – discovering,
                             discussing, and sharing trending
                              game topics, news, titles, etc.




www.crimson-consulting.com                                 23         © CRIMSON CONSULTING 2009
Trends: Gaming Goes Social
            Facebook and MySpace have rapidly growing gaming portals offering titles
                             across a broad range of genres.




                      Facebook and MySpace games allow interaction and game play with friends connected via the
                      individual social networks.
                      Games have a major viral aspect encouraging players to invite friends to play games with them
                      during game play.
                      Games are embedded in user profiles as applications and offer game play statistics and rankings.
                      Social gaming developer Zynga is on track to generate more than $100m in revenue in 2009
                      MySpace recently announced a new focus as an entertainment portal with a focus on gaming

www.crimson-consulting.com                                          24                                        © CRIMSON CONSULTING 2009
Trends: Gaming Goes Social
      Top Facebook gaming apps engage users through customization, ability to play
       and interact with real friends, and constant development of accessories, add-
                                       ons, patches, etc.




                 Pet Society is a free-to-play app that is monetized through virtual goods and advertising
                 Virtual goods improve status and health of pets – when an item is purchased an update is
                 published to the Facebook wall to recognize good care for the users virtual pet.

www.crimson-consulting.com                                 25                                   © CRIMSON CONSULTING 2009
Trends: Gaming Goes Social
                         Games are played and monetized on all forms of social media




            Mafia 140 is the first game to monetize through in-game microtransactions on Twitter
            Designed by Super Rewards, the purchased virtual currency allows users to pay for virtual goods
            that enhance game play such as health, money, ammunition, etc.
Source: http://money.cnn.com/2009/06/23/technology/twitter_140mafia_game_profit/?postversion=2009062316
www.crimson-consulting.com                                                    26                          © CRIMSON CONSULTING 2009
Trends: Gaming Goes Social
                                                            Trends
                 OpenID web technology allows for the migration of social games off of
                                    social networking websites




           Facebook Connect makes it easier than ever to get new visitors to register and participate by recognizing a unique
           Facebook ID
           Makes it easy for community members to advertise participation on the site using the Facebook news feed
           EA utilizes Facebook Connect with its phone Scrabble gaming app while Zynga uses it in the most popular game on
           Facebook: Texas Hold ‘Em


Source:http://www.maclife.com/article/news/ea_announces_facebook_connect_iphone_scrabble_rest_2009_games
www.crimson-consulting.com                                                 27                              © CRIMSON CONSULTING 2009
Trends: Gaming Goes Social
                                                      Trends
               New social gaming platforms create communities around mobile gaming




         Social gaming platforms for the iPhone offer friend lists, social profiles, leader boards, discovery lobbies, cross
         promotion, achievements etc.
                OpenFeint is currently available on 100+ mobile games and open to all developers
         Platforms are integrated with Facebook (via Facebook Connect) and Twitter in order to provide real time status
         updates of game play as well as off the ability to play, share, and discover games with existing SN friends
         Creates viral gaming communities in which games are shared, played, and managed through a simple mobile
         application



www.crimson-consulting.com                                         28                                          © CRIMSON CONSULTING 2009
Trends: Gaming Goes Social
         Social media facilitates strong community interaction: EA’s, The Sims 2, partners
                  with H&M and Yahoo! for a user generated content, contest.




            Sims 2 users could use the expansion’s tool to design their own outfits. Content was uploaded the the Sims 2
            website and finalists were showcased on a virtual fashion runway hosted by Yahoo!
            More than 1,000 aspiring fashion designers and fans of The Sims submitted designs that were voted on by
            more than 100,000 people and viewed by more than 500 million people in the six weekly fashion shows on
            Yahoo.
            The winning outfit was selected to be manufactured, and will be available in nearly 1,000 stores worldwide

Source: http://pc.ign.com/articles/886/886170p1.html
www.crimson-consulting.com                                       29                                         © CRIMSON CONSULTING 2009
Trends: Gaming Goes Social
              Gaming wiki’s and widgets are becoming essential for hardcore gamer
                                 strategy and communication.




www.crimson-consulting.com                     30                         © CRIMSON CONSULTING 2009
Trends: Gaming Goes Social
                                                                            www.Pietheory.com
           Alternate Reality Games blurring the
           lines between gaming, learning and
           collaboration
            Sun Microsystems RIA development
            platform, JavaFX utilized a uniquely
            different approach that would create
            awareness, build buzz and excitement,
            encourage trial/downloads and attract a
            younger audience of nextgen developers
            (ages 18-30).
            Pietheory.com is a story-based massive
            multiplayer online alternate reality game that
            ran across traditional, social and emerging
            marketing platforms.
            Superstruct is the world’s first massively
            multiplayer forecasting game. By playing the
            game, you help chronicle the world of 2019-
            -and imagine how we might solve the
            problems we'll face. It’s about making the
            future, inventing new ways to organize the
            human race and augment collective human
            potential.
                                                                  www.Superstructgame.org
www.crimson-consulting.com                                   31                                 © CRIMSON CONSULTING 2009
Trends: Social Networks Are Here to Stay
                                            Adults continue to join social networks.

                             43% among those who are online, now use social networking sites such as Facebook,
                             MySpace, and Linkedin – up from 27% percent a year ago – Consumer Internet Barometer
                             July 2009
                             Women are more likely than men to use social networking sites (48% versus 38%), but usage
                             has increased dramatically among both groups in just a year – Consumer Internet Barometer
                             July 2009



                                               % w/
                                Age
                                              Profile
                               18-24            75%

                               25-34            57%

                               35-44            30%

                               45-54            19%

                               55-64            10%

                                65+             7%




Source: Pew Internet & American Life Project 2009
www.crimson-consulting.com                                            32                                       © CRIMSON CONSULTING 2009
Trends: Gamers are Social Networkers
              Gamers utilize social media, especially apps, widgets, and photo sharing.




                             Apps and Widgets ranked the highest form of media used by gamers in social media
                             Gamers communicate primarily through groups and blogs over forums
                             Gamers are 2x more likely to view, upload or share pictures as compared to video


Source: Lotame ID Report: Video Gamers and Social Media 2009
www.crimson-consulting.com                                          33                                          © CRIMSON CONSULTING 2009
Trends: Gamers Are Social Networkers
                              Gamers are social media participators and influencers.




                             Video Gamers are high participators when it comes to actions. This includes
                             demonstrated activities such as downloading, watching video, or viewing content.
                             More likely to be influencers: creating, sharing, uploading, rating content.
                             Blogging was a likely action of video gamers


Source: Lotame ID Report: Video Gamers and Social Media 2009
www.crimson-consulting.com                                             34                                       © CRIMSON CONSULTING 2009
Trends: Word-of-Mouth more
                        important than ever
                                                          Influencers drive brand affinity
                                         Awareness

                                  1.Close Family & Friends (78%)
                                                                                      90% of consumers surveyed said that
                                   2.Independent Bloggers (59%)                       they trust recommendations from
                                 3.Contribute to YouTube etc.(49%)                    people they know, while 70% trusted
                                                                                      consumer opinions posted online
                                                                                    – Nielsen Global Online Consumer Survey, July
                                       Consideration                                  2009
                                                                                      Known peer influence still tops the list
                                     1.Contribute to YouTube (49%)                    for purchase decisions, but social media
                                  2. Anonymous Peer Reviews (43%)
                                       3. Family & Friends (42%)
                                                                                      – including corporate and independent
                                                                                      blogs produced by key influencers –
                                                                                      and user-generated content (UGC) from
                                            Action                                    social influencers - play an influential
                                                   1.                                 role that meets or beats traditional
                                    1.Close Family & Friends (79%)                    marketing efforts
                                  2.Anyonymous Peer Reviews (43%)
                                     3.Independent bloggers (21%)                     - Fluent, The Razorfish Social Influence
                                                                                      Marketing Report 2009
      Percentage of type of
    influence during specific
     stages of the marketing
             funnel




Source: Fluent, The Razorfish Social Influence Marketing Report 2009
www.crimson-consulting.com                                             35                                      © CRIMSON CONSULTING 2009
Gaming Personas




www.crimson-consulting.com   36           © CRIMSON CONSULTING 2009
Definitions


                      Hardcore Gamer; n.
                      Term used to describe a type of video game player, or gamer,
                      whose leisure time is largely devoted to playing video games.
                      Typically, they will play a game to mastery before moving on, in
                      the process becoming very knowledgeable about individual
                      games. The opposite of the hardcore gamer is the casual gamer.


                      Casual Gamer; n.
                      Casual gamers are occasional video game players who might not
                      even identify themselves as a gamer. What this group lacks in
                      enthusiasm for the latest and greatest hardware and engrossing
                      game play, they make up in sheer numbers.




Source: Wikipedia
www.crimson-consulting.com                             37                                © CRIMSON CONSULTING 2009
Personas – Hardcore Gamer

                                                                                 “I would much rather play video games
                                     Eric                                         than watch TV. I can accomplish goals
                                     Age: 33
                                                                                  and have fun while connecting with
                                     IT Manager
                                                                                  friends from all over the world, sharing
                                                                                  strategies, opinions, reviews of new
                                                                                  games and competing to be the next
                                                                                  major league gamer”



    Characteristics                                          His Questions
           Tech Savvy                                               What’s the best action/adventure game on Facebook?
           Multi-tasker                                             What is the best online community for gamers like me?
           Online Critic/Content Creator                            What kind of gaming related widgets or apps can I download?
           Socially Active                                          How can I share pictures and video’s of my game play?
           Impatient                                                Can I get the a better value from video game services like
           Goal Oriented                                            Steampowered?
           Strategic Thinker                                        When is the next MLG tournament?

Source: http://media.onsugar.com/files/upl2/1/15111/22_2009/6f9f39ce8764d638_video_game_couple.larger.jpg
www.crimson-consulting.com                                                    38                                © CRIMSON CONSULTING 2009
Personas – Hardcore Gamer (continued)
   HIS STORY
   A university graduate, who has been playing computer games for almost 12 years, and is an avid
   video/computer gamer. Eric’s favorite types of games are action adventure, shooter, sports, fighting and his         Eric
   favorite MMOG, World of Warcraft. He plays at least an hour of online multi-player games a week,                     Age: 28
   participates in major league gaming tournaments, and commonly uses the internet to support his in game               IT Manager
   activities by reading and posting to blogs, forums, and reviews on websites such as GotFrag.com and
   Gamespot.com. He grew up in a single parent household in the Midwest, eats fast food regularly, reads
   books often, relies on the internet as a news source, and drives a Volkswagon. Eric is a hard worker,
   constantly striving to improve himself and climb the social ladder in the work place. Eric likes to spend
   money, especially on computer gadgets. He is fashion forward and admires people who stand out and
   express themselves. He watches Comedy Central, HBO, and some of his other favorite shows on
   Hulu.com. His favorite websites are BestBuy.com, Techcrunch.com Gamespot, Google, and Facebook.
   TECHNOLOGY USAGE
   Eric is very tech savvy and spends three and a half +hours online a day. He was an early adopter of the
   iPhone, owns an upgraded PC for gaming and constantly communicates with friends online through IM,
   social networks and email via the PC and more often the mobile phone. He often purchases computer
   products online and often reads websites such as Techcrunch.com, or Wired.com to stay up to date with the
   latest technology.
   MARKETING
   Focused on value and quality, as well as making practical purchase decisions. He Is highly adept at
   comparison shopping online and is skeptical of big corporations and advertising claims, although he has a
   slight tendency to be brand loyal. Responds to messaging that dares to “stand out” and is straight forward
   and fact based.
   ONLINE ACTIVITY
   Plays solo and multi-player games on the PC and console, visits game sites, and participates in many
   online communities and forums, many of which are related to gaming. He has various social networking
   profiles and proudly sports his Xbox Live game card on his Facebook and MySpace pages. He always
   keeps up to date with forums of his favorite MOGG’s looking the latest patches, add-ons, and developer
   blog posts. Eric constantly searches for new and interesting websites utilizing sites like Digg and Reddit, He
   passes around user generated humorous content, receives and sends photos, streams radio and video,
   downloads music from paid music sites, and likes to download podcasts, game demos, and movie clips. He
   plays online multi-player games every week. Previews many products and services and buys online. He will
   do the research to make sure he is part of the best site and community online for gaming.


www.crimson-consulting.com                                                            39                            © CRIMSON CONSULTING 2009
Personas – Casual Gamer


                             Sarah                  “During a busy day at the office, online
                             Age: 39                 games are a fun stress reliever that
                             Executive               allow me to have a bit of fun and they
                             Assistant
                                                     help break up the day”




    Characteristics                      Her Questions
           Time Stressed                    What is the best way to download puzzles and card games to
           Seeks Moments of Escape          my smartphone?
           Family Oriented                  If I subscribe will I get new games too?
           Well Organized                   Which games are my Facebook friends playing?
           Adept Purchaser of Products      Where can I find fun online shopping games?
           & Services Online                What kind of online games can I play with my kids?
                                            What's happening in my Twitter network?


www.crimson-consulting.com                        40                                 © CRIMSON CONSULTING 2009
Personas – Casual Gamer (continued)
   HER STORY
   She works as an executive assistant at a medium sized company. She is married, has two children, ages
   8 and 11, and works four days a week. She looks forward to spending her weekends with family and
   friends, and doesn’t have much time to herself. She balances a busy schedule and spends a lot of the
   day on the PC. Several times a day, during a few minutes of downtime, she plays games online or on her
                                                                                                               Sarah
   cell phone to relax and escape. Recently she has begun to play games on her Blackberry downloading         Age: 39
   games and applications like Bejeweled or Peggle, and social networking games like Pet Society and
   YoVille. She finds the interaction with her friends new and exciting. She mainly likes games that are      Executive
   ‘quick hits” such as Puzzle, Board, Show, Trivia or Card games that are fun to play and can be played      Assistant
   quickly so she can get on with her work day. She often has lunch at her desk, and tries to get home so
   she can play with the kids. She also enjoys playing online educational games at home with her two
   children on sites such as FunBrain.com. She drives a Ford Escape. Her favorite shows on TV include
   So You Think You Can Dance, Grey’s Anatomy, and Desperate Housewives. Favorite websites include
   games.yahoo.com and ign.com during the day during breaks at work, Yahoo for news, IM, email, movie
   previews and schedules, and iTunes.com for her music downloads. She loves the shop, especially
   online, and is always looks for the good deals and incentives to buy.
   TECHNOLOGY USAGE
   Sarah is uses the PC all day at work and has a Blackberry provided by her company, she spends more
   than one hour a day on her PC and phone playing games. She organizes her busy schedule online,
   manages her finances, coordinates her mobile devices with her PC and iPod. She uses a digital camera,
   shares photos with friends and prints her own pictures from her printer. She is new to social networks
   such as Facebook, but has been recently spending more time on them searching for old friends and
   playing games.
   MARKETING
   Focused on value and quality, as well as making practical purchase decisions and is adept at
   comparison shopping. She is skeptical of big corporations and advertising claims, and is not especially
   brand loyal. Responds to messaging that dares to “stand out” and is sincere.
   ONLINE ACTIVITY
   She plays fast access arcade games, mostly her favorite game. She plays it fast, plays it often, she
   loves incentivized games, signs up gaming subscriptions on game sites, streams and watches clips from
   her favorite TV shows, upcoming movies and news. She keeps up to date with her friends on IM, email
   and social networks, sends and receives photos constantly, and downloads music and pod casts. She
   also downloads games to her mobile phone. An expert online shopper, she buys clothing and many
   other products and services online.


www.crimson-consulting.com                                                          41                       © CRIMSON CONSULTING 2009
Personas – Technographic Profiles

                                       Eric                                                   Sarah




                 Age, geography, and gender impact the adoption and use of social media technologies
                 Hardcore gamers are more apt to join social networks and maintain profiles, use social bookmarking and
                 RSS feeds, and publish blogs, post articles, comments, and upload multimedia.
                 Casual gamers are more apt to post ratings/reviews of products or comment on blogs and forums




Source: http://www.forrester.com/Groundswell/profile_tool.html
www.crimson-consulting.com                                        42                                       © CRIMSON CONSULTING 2009
Gaming Community &
                              Social Media Best
                                  Practices




www.crimson-consulting.com    43          © CRIMSON CONSULTING 2009
Innovation to meet expectations for new
                      technology/ enhanced gaming experiences
         Blur the lines between reality and the
         virtual game experience
         Create new gaming experiences that
         offer practical benefits such as
         exercise, education, training, etc.
         Allow gamers to become long term
         contributors and participants within
         the gaming community
                             Encourage gamers to express
                             themselves through custom profiles,
                             pages, avatars, characters, or entire
                             games
         Create dynamic gaming titles which
         allow for extended game play and
         advancement over time (patches,
         add-ons, upgrades etc.)

www.crimson-consulting.com                                           44   © CRIMSON CONSULTING 2009
Offer unique, exclusive content on a
                     daily or weekly basis

              Weekly blog posts, podcasts or video
              segments discussing game news, reviews,
              previews, interviews
              Insight into real-time gaming trends and
              conversations across the web
              Allow users to upload UGC such as game
              reviews and ‘lifestyle’ content (allow users
              to share what they think is cool)
              Surveys and Feedback
                       Invite users to participate in a survey and ask
                       questions about what content they would like to
                       see on the site
                       Some users will really appreciate that they are
                       getting to shape the content on the site




www.crimson-consulting.com                                    45         © CRIMSON CONSULTING 2009
Enable the use of extensive status and
                    reputation management tools
                    Create dynamic game titles that allow users to build social capital within
                    the game
                    Enable gamer profiles that aggregate statistics, achievements, and real-
                    time game play - allow them to embed and share gamer profiles across
                    the web and social networks
                    Provide statistics, user rankings, battles, contests and other tools that
                    allow members to gauge and improve community status
                    Incentivize site users - incorporate loyalty programs
                              Points or achievements for participating on the site,
                              redeemable for prizes/free stuff, or more games
                              i.e. Kongregate, GamerDNA, etc.

                    Give ‘em their props
                              Have a small section on the site that features
                              accomplishments of its users or a featured user
                              Gamers by nature are competitive; recognition breeds
                              loyalty




www.crimson-consulting.com                                       46                        © CRIMSON CONSULTING 2009
Make the gaming experience social

               Add viral elements to the game play
                             Enable users to invite friends to play along and
                             share gaming experiences – reward them for
                             invites

               Encourage groups to form and offer guild
               hosting to support small gaming team
               communities.
               Create large scale community based
               games
                             Live interactive game shows such as Microsoft’s 1
                             vs 100 are engaging and fun while community
                             members compete for real prizes

               Enable use of real-time status updates and
               offer real-time tracking of community
               conversation and game play trends
               Encourage users to share and spread web
               content through use of social media tools


www.crimson-consulting.com                                         47            © CRIMSON CONSULTING 2009
Utilize social networking tools to enable the
                      sharing and spread of content
        Optimize blogs, multimedia, news etc. with sharing
        and bookmarking tools such as Digg, Delicious,
        StumbleUpon, Reddit, Twitter etc.
        Offer unique content supplemented with User
        Generated Content
        Integrate with existing mainstream social networking
        sites such as Facebook, Twitter, FriendFeed, Flickr,
        etc.
                 Enable the ability to broadcast real-time status updates
                 across multiple social profiles
        Contextual recommendation engines - Highly
        customizable recommendation engines for games,
        products, or community members built through user
        profile context.
        Create collaborative gaming wikis for strategies,
        tips/tricks etc.



www.crimson-consulting.com                                  48              © CRIMSON CONSULTING 2009
Utilize OpenID technology

                   Use Facebook Connect or
                   MySpaceID to streamline the
                   registration process for gaming
                   communities
                   Easy for new members to recruit
                   existing friends and contacts
                   Create OpenID custom URL’s for
                   profile pages to make profiles
                   portable and transferable across
                   networking sites
                             i.e. GamerDNA, Raptr, etc.




www.crimson-consulting.com                                49   © CRIMSON CONSULTING 2009
Encourage users to upload and share UGC

                      Allow users to upload and share content such as links, blogs, news,
                      photos, video, games, apps, widgets etc.

                      Integrate user generated content with product and ecommerce pages
                               Including ratings/reviews for products, screenshots, and video clips

                      Creation of a media portal for video, photos, music and podcasts
                               Enable ratings/reviews for UG multimedia – much like a YouTube
                               Feature most viewed/highest rated UG videos

                      Reward users for contribution to the site through awards, points,
                      credits, or contests




www.crimson-consulting.com                                  50                                   © CRIMSON CONSULTING 2009
Generate awareness and engagement
                      through use of UGC competitions

           UGC competitions encourage
           participation and community
           interaction that will generate repeat
           visits and WOM Marketing

           The Sims 2’s partnership with H+M
           created a tremendous amount of
           buzz and awareness for the multiple
           sponsors.

           Sony Pictures has run competitions
           on YouTube where users upload
           videos of why they deserve to win a
           prize



www.crimson-consulting.com                         51   © CRIMSON CONSULTING 2009
Put the focus on engagement and
                      interaction with community members
                         Utilize brand or site ambassadors/influencers as a means to
                         connect, interact and promote the community
                         Create a community events calendar that allows members to
                         connect and play with similar community members based on
                         affinity, gender, location, etc.
                                 Xbox Live has an excellent calendar offering game nights for
                                 families, girls etc.
                                 Xbox hosts game nights where members play celebrities and
                                 musicians
                         Generate blog postings that stimulate conversation
                         Interact with members - reply to comments or questions
                         pertaining to individual posts
                         Engage audience members on popular social networks
                                 Create a social graph across multiple social networks
                                 Create a cohesive web presence by linking and aggregating
                                 multiple social profiles and sites.




www.crimson-consulting.com                             52                              © CRIMSON CONSULTING 2009
Make communities portable and accessible


                      Create widgets, apps, and
                      mobile platforms to engage
                      community members whenever
                      and wherever

                      Develop or partner with mobile
                      social gaming platforms to tap
                      into new users and connect
                      with an existing community




www.crimson-consulting.com                             53   © CRIMSON CONSULTING 2009
Use micro-transactions, updates, patches,
                     and game add-ons to create a long-term
                     sustainable business model
        Offer free-to-play game titles monetized through
        microtransactions

        Partner with brands, bringing real life products
        and merchandise into the virtual world

        Allow users to upgrade, improve, or add to their
        existing gaming experience over time

        Create long term value for users by combining
        gamer reputation management with virtual goods

        Offer pre-paid cards in retail locations and online
        to streamline the purchase process and target
        users with no access to credit




www.crimson-consulting.com                          54        © CRIMSON CONSULTING 2009
References

                  Market Research Reports:
                      Essential Facts About the Computer and Video Game Industry, Entertainment Software
                      Association, 2009
                      The Adult Video Game Market in the US, Packaged Facts ’09
                      Pew Internet & American Life Project 2009
                      Lotame ID Report: Video Gamers and Social Media 2009, Lotame 2009
                      Fluent: The Razorfish Social Influence Marketing Report 2009, Razorfish July 2009




www.crimson-consulting.com                                  55                                  © CRIMSON CONSULTING 2009
Introduction to Crimson


                                                           Digital
                                                          Marketing,
                                    Consulting          Community and             7,000
                                      Teams              Social Media             SMEs
     Management                                           Marketing                                Network of 7,000
     Consulting Services
                                                                                                   consultants
     on Marketing Issues
                                                            Positioning                               6 Continents
                                                               and
                                                            Messaging                                 64 Countries
                                         Market, Product                  Go-to-Market
                                         and Competitive                  Strategy and
                                           Assessment                      Operations



                                              •   Interactive
     Deep Expertise                           •   Technology
                                              •   Marketing
                                              •   Management Consulting

     Industry-Leading         Cisco                   HP               Adobe               BEA
     Clients                 Microsoft                SAP             Seagate             Oracle



www.crimson-consulting.com                                      56                                         © CRIMSON CONSULTING 2009
Questions? Please contact:

                             Crimson Consulting
                             4970 El Camino Real, Los Altos, CA 94022
                             650.960.3600
                             www.crimson-consulting.com



                             Karen O’Brien
                             Partner, Interactive Services
                             415.720.6859
                             kobrien@crimson-consulting.com
                             T: @bondjanebond



www.crimson-consulting.com                                    © CRIMSON CONSULTING 2009

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Gamer 2.0, Exploring the use of Gaming, Community and Social Media

  • 1. Gamer 2.0 : Exploring the use of Gaming Community & Social Media Karen O’Brien, Partner Chris Terschluse, Analyst Crimson Interactive Services August, 2009 www.crimson-consulting.com © CRIMSON CONSULTING 2009
  • 2. Agenda Research Goals Current Gaming Trends Gamer Personas Gaming Community & Social Media Best Practices Introduction to Crimson Consulting www.crimson-consulting.com 1 © CRIMSON CONSULTING 2009
  • 3. Research Goals Overview of current gaming trends and use of social media and community by gamers Provide insight into gamer lifestyle, behavior, needs, desires, and motivation Highlight best practices of gaming communities and their use of social media tools www.crimson-consulting.com 2 © CRIMSON CONSULTING 2009
  • 5. Summary of Gaming Trends New game experiences and casual gaming have changed gamer demographics Gamers want gaming experiences that are customizable and interactive Multiple revenue models are utilized to monetize games Gamers now demand social experiences within games The use of social networks is growing at an exponential rate – especially among adults Gamers are avid social networkers, often sharing information such as photos, videos, or blogs. Social media has a major influence on consumer purchase decisions Source: Essential Facts About the Computer and Video Game Industry, Entertainment Software Association, 2009; Crimson analysis www.crimson-consulting.com 4 © CRIMSON CONSULTING 2009
  • 6. Trends: Changing Gamer Demographics Gamers are getting older, comprising over half of the US adult population. Who is Playing Video Games? US based Gaming Population of 114 million –comprising 52% of adult population 21% percent of adults report playing daily Source: Essential Facts About the Computer and Video Game Industry, Entertainment Software Association, 2009 www.crimson-consulting.com 5 © CRIMSON CONSULTING 2009
  • 7. Trends: Changing Gamer Demographics Online and mobile casual gaming is growing. Who is Playing Video Games Online Source: Essential Facts About the Computer and Video Game Industry, Entertainment Software Association, 2009 www.crimson-consulting.com 6 © CRIMSON CONSULTING 2009
  • 8. Trends: Changing Gamer Demographics Casual and fitness games are changing the gamer demographic. Video Games Appeal to Everyone Growth in the Casual Game Industry Online gamers are more educated and earn a higher Nintendo Wii & DS annual income Moderate video gamers have an aggregate “In the wake of the introduction of income of $1.4 trillion, or 35% of the aggregate these two new systems, internal Nintendo research showed a 42% income of all video-gamer players, compared to increase in DS purchases among the $766 billion of avid gamers women, a 127% increase among people over 30 and a 212% increase Women among people over 35 during an 18- month period ending in Spring 2007” While women account for only 34% of Avid gamers, they comprise 57% of Moderate and 53% of - Advertising Age, October 15, 2007 Occasional gamers Most online gamers 30 years old and over are women. Female online gamers are especially prevalent among online gamers in the 45+ age group Source: The Adult Video Game Market in the US Packaged Facts ‘09 www.crimson-consulting.com 7 © CRIMSON CONSULTING 2009
  • 9. Trends: Changing Gamer Demographics Casual and fitness games are changing the gamer demographic. Video Games Appeal to Everyone Families Video gamers with children at home account for 52% of all those playing games on their cell phones, 43% of online game players and 46% of those playing offline computer games. Seniors The number of 18- to 24-year-old male video gamers is expected to increase by 7.4%, while the number of video gamers among 55- to 64- year-old men will grow by 34.4% into 2012 Source: The Adult Video Game Market in the US Packaged Facts ‘09 www.crimson-consulting.com 8 © CRIMSON CONSULTING 2009
  • 10. Trends: New Gaming Experiences Video Games are utilized for more than entertainment. Games offer more than just fun Health Benefits Theuse of video games to boost brain power and encourage physical activity is sweeping the senior population - Consumer Reports on Health (September 2007) The University of Medicine and Dentistry of New Jersey used the Wii system to help a patient with cerebral palsy, a movement disorder affecting balance and coordination. Exercise Games: Wii Fit & EA Sports Active Games used for education & training www.crimson-consulting.com 9 © CRIMSON CONSULTING 2009
  • 11. Trends: New Gaming Experiences Augmented reality technology is changing the way we play and interact with video games Microsoft’s Project Natal Technology uses a camera/sensor to track a user's movements, and map that movement to an avatar/character in the game-space – controller free Sony Playstation’s EyeToy & Eye Pet Augmented Reality systems utilizing a motion tracking camera and motion sensors to bring users into the game www.crimson-consulting.com 10 © CRIMSON CONSULTING 2009
  • 12. Trends: New Gaming Experiences Mobile games allow for virtual game play in real life environments. www.crimson-consulting.com 11 © CRIMSON CONSULTING 2009
  • 13. Trends: New Gaming Experiences Games need to be interactive and dynamic, creating an alternate reality. Customization Gamers want to influence the storyline or create their own Dynamic Virtual Worlds – 2nd Life, Free Realms, WoW Integration of user generated content (customize in-game characters, environments, avatars, profiles, and personalities) Sims 3 Spore Open API game development and user generated game portals Little Big Planet XNA Creators Club www.crimson-consulting.com 12 © CRIMSON CONSULTING 2009
  • 14. Trends: New Gaming Experiences Little Big Planet and XNA Creators Club offer customization of characters, objects, and levels player as well as communities for sharing user generated content. Playstation’s LBP online has a community of over 2 million users with an average of 35,373 user- generated levels uploaded each week. As of June 2009, more than 900,000 user-created levels have been published and these had been played 200 million times. Microsoft’s XNA Creators Club allows users to create and build custom games. For a subscription fee, games can be submitted to Microsoft, reviewed, and displayed on the community game portal. Sources: Wikipedia & http://www.us.playstation.com/News/PressReleases/509 www.crimson-consulting.com 13 © CRIMSON CONSULTING 2009
  • 15. Trends: New Gaming Experiences Kongregate.com looks to become the YouTube of independently developed video games Any registered user can upload any type of game they have created. Users then rate and review the game – If it garners three stars, it will show up on the list of games. Weekly or monthly contests are held in which the highest rated game of that month/week wins a cash prize Kongregate functions as a social network with in-game chat features, profiles, real time rankings/user standings A built in rewards system awards users points for reviewing games, referring friends, and completing achievements Sources: http://en.wikipedia.org/wiki/Kongregate www.crimson-consulting.com 14 © CRIMSON CONSULTING 2009
  • 16. Trends: New Gaming Experiences Video game developers experiment with crowdsourced video game development Roundhouse and Firma are creating an online public community of “cartel” to be involved in the development of a new game. Members of the community will be introduced to a democratic voting system and society. Developers will place ideas out to the “cartel” and allow them to decide the direction of the game, genre, storylines, controls, and even the name. Community members will be asked for $50 fee that will guarantee a copy of the game, and will provide incentives along the way to participate Funded by the community. Goal is to get over 100,000 members, generating $5m in revenue up front for development Source: http://news.cnet.com/gaming-and-culture/?keyword=Video+game www.crimson-consulting.com 15 © CRIMSON CONSULTING 2009
  • 17. Trends: Changing Revenue Models Digital game distribution has become scalable and accessible while sales on game consoles and hardware have declined. Changing Revenue Models Ad supported/in-game advertising Subscription Services Digital Game Services Offers/Incentives ( Offerpal, Super Rewards, Peanut Labs etc.) In-Game “microtransactions” www.crimson-consulting.com 16 © CRIMSON CONSULTING 2009
  • 18. Trends: Changing Revenue Models MapleStory touts success through microtransactions and prepaid cards. Free-of-charge, 2D, side-scrolling MMORPG. Players interact through chatting, trading, and mini-games. Game play enhancements and character appearances are purchased. In 2007 MapleStory sold $30m of digital goods in the US alone with a subscriber base of 6 million – ARPU $20 month As of May ‘08 prepaid cards used to buy game items are now the 2nd best-selling entertainment gift card at Target stores in the U.S., after cards for the iTunes Store DFC’s estimated revenue for 2008 ranges between $150-500m placing it 3rd amongst top 10 revenue generating MMO’s “Estimated $1.8 billion microtransactions or sales of virtual goods in virtual worlds in 2009, worldwide” – www.fastcompany.com Sources: http://www.virtualgoodsnews.com/2009/02/maple-story-nets-150500m-in-revenue-for-2008.html http://online.wsj.com/article/SB121150576226416235.html?mod=2_1567_topbox www.crimson-consulting.com 17 © CRIMSON CONSULTING 2009
  • 19. Trends: Changing Revenue Models IKEA and Ford partner with EA for in-game products. The Sims 2 offers branded virtual goods from IKEA & Ford Users can design their rooms to fit their personalities with IKEA made items including sofas, beds, tables, TVs, desks and much more. Each item is available in a variety of colors and patterns for a customized look More than 3.3 million Ford vehicles have been downloaded in the game, making The Sims the most successful Ford dealership in the world Source: http://www.gamershell.com/companies/electronic_arts/452016.html www.crimson-consulting.com 18 © CRIMSON CONSULTING 2009
  • 20. Trends: Changing Revenue Models Digital game services offer al-a-carte game downloading for the PC and console www.crimson-consulting.com 19 © CRIMSON CONSULTING 2009
  • 21. Trends: Changing Revenue Models OnLive offers cloud-based gaming services and large scale community infrastructure. www.crimson-consulting.com 20 © CRIMSON CONSULTING 2009
  • 22. Trends: Gaming Goes Social Gaming and Social Media are blending together to create unique interactive experiences. Gamer Social Capital “One of the central elements of Social Gaming the video gaming experience in Mobile Gaming 2009 is its capacity to serve as a tool to build social networks and Online Gamer Conversation communities – both real and OpenID virtual – as well as to function as a means of pure entertainment.” Gaming Communities The Adult Video Gamer Market in the U.S., Packaged Facts ‘09 Gaming Wiki’s www.crimson-consulting.com 21 © CRIMSON CONSULTING 2009
  • 23. Trends: Gaming Goes Social Management of reputation and online social capital has grown in importance. Gamers work hard to build their point totals, achievements, and rankings – now they want to share them Reputation tools important to community and can now be displayed on social networking profiles GamerCards help gamers network within their communities, forming clans/guilds with other accomplished players www.crimson-consulting.com 22 © CRIMSON CONSULTING 2009
  • 24. Trends: Gaming Goes Social Gaming conversations, online and in-game, are being aggregated and shared via social networks and in-game real time streams Gamers form online communities through conversation – discovering, discussing, and sharing trending game topics, news, titles, etc. www.crimson-consulting.com 23 © CRIMSON CONSULTING 2009
  • 25. Trends: Gaming Goes Social Facebook and MySpace have rapidly growing gaming portals offering titles across a broad range of genres. Facebook and MySpace games allow interaction and game play with friends connected via the individual social networks. Games have a major viral aspect encouraging players to invite friends to play games with them during game play. Games are embedded in user profiles as applications and offer game play statistics and rankings. Social gaming developer Zynga is on track to generate more than $100m in revenue in 2009 MySpace recently announced a new focus as an entertainment portal with a focus on gaming www.crimson-consulting.com 24 © CRIMSON CONSULTING 2009
  • 26. Trends: Gaming Goes Social Top Facebook gaming apps engage users through customization, ability to play and interact with real friends, and constant development of accessories, add- ons, patches, etc. Pet Society is a free-to-play app that is monetized through virtual goods and advertising Virtual goods improve status and health of pets – when an item is purchased an update is published to the Facebook wall to recognize good care for the users virtual pet. www.crimson-consulting.com 25 © CRIMSON CONSULTING 2009
  • 27. Trends: Gaming Goes Social Games are played and monetized on all forms of social media Mafia 140 is the first game to monetize through in-game microtransactions on Twitter Designed by Super Rewards, the purchased virtual currency allows users to pay for virtual goods that enhance game play such as health, money, ammunition, etc. Source: http://money.cnn.com/2009/06/23/technology/twitter_140mafia_game_profit/?postversion=2009062316 www.crimson-consulting.com 26 © CRIMSON CONSULTING 2009
  • 28. Trends: Gaming Goes Social Trends OpenID web technology allows for the migration of social games off of social networking websites Facebook Connect makes it easier than ever to get new visitors to register and participate by recognizing a unique Facebook ID Makes it easy for community members to advertise participation on the site using the Facebook news feed EA utilizes Facebook Connect with its phone Scrabble gaming app while Zynga uses it in the most popular game on Facebook: Texas Hold ‘Em Source:http://www.maclife.com/article/news/ea_announces_facebook_connect_iphone_scrabble_rest_2009_games www.crimson-consulting.com 27 © CRIMSON CONSULTING 2009
  • 29. Trends: Gaming Goes Social Trends New social gaming platforms create communities around mobile gaming Social gaming platforms for the iPhone offer friend lists, social profiles, leader boards, discovery lobbies, cross promotion, achievements etc. OpenFeint is currently available on 100+ mobile games and open to all developers Platforms are integrated with Facebook (via Facebook Connect) and Twitter in order to provide real time status updates of game play as well as off the ability to play, share, and discover games with existing SN friends Creates viral gaming communities in which games are shared, played, and managed through a simple mobile application www.crimson-consulting.com 28 © CRIMSON CONSULTING 2009
  • 30. Trends: Gaming Goes Social Social media facilitates strong community interaction: EA’s, The Sims 2, partners with H&M and Yahoo! for a user generated content, contest. Sims 2 users could use the expansion’s tool to design their own outfits. Content was uploaded the the Sims 2 website and finalists were showcased on a virtual fashion runway hosted by Yahoo! More than 1,000 aspiring fashion designers and fans of The Sims submitted designs that were voted on by more than 100,000 people and viewed by more than 500 million people in the six weekly fashion shows on Yahoo. The winning outfit was selected to be manufactured, and will be available in nearly 1,000 stores worldwide Source: http://pc.ign.com/articles/886/886170p1.html www.crimson-consulting.com 29 © CRIMSON CONSULTING 2009
  • 31. Trends: Gaming Goes Social Gaming wiki’s and widgets are becoming essential for hardcore gamer strategy and communication. www.crimson-consulting.com 30 © CRIMSON CONSULTING 2009
  • 32. Trends: Gaming Goes Social www.Pietheory.com Alternate Reality Games blurring the lines between gaming, learning and collaboration Sun Microsystems RIA development platform, JavaFX utilized a uniquely different approach that would create awareness, build buzz and excitement, encourage trial/downloads and attract a younger audience of nextgen developers (ages 18-30). Pietheory.com is a story-based massive multiplayer online alternate reality game that ran across traditional, social and emerging marketing platforms. Superstruct is the world’s first massively multiplayer forecasting game. By playing the game, you help chronicle the world of 2019- -and imagine how we might solve the problems we'll face. It’s about making the future, inventing new ways to organize the human race and augment collective human potential. www.Superstructgame.org www.crimson-consulting.com 31 © CRIMSON CONSULTING 2009
  • 33. Trends: Social Networks Are Here to Stay Adults continue to join social networks. 43% among those who are online, now use social networking sites such as Facebook, MySpace, and Linkedin – up from 27% percent a year ago – Consumer Internet Barometer July 2009 Women are more likely than men to use social networking sites (48% versus 38%), but usage has increased dramatically among both groups in just a year – Consumer Internet Barometer July 2009 % w/ Age Profile 18-24 75% 25-34 57% 35-44 30% 45-54 19% 55-64 10% 65+ 7% Source: Pew Internet & American Life Project 2009 www.crimson-consulting.com 32 © CRIMSON CONSULTING 2009
  • 34. Trends: Gamers are Social Networkers Gamers utilize social media, especially apps, widgets, and photo sharing. Apps and Widgets ranked the highest form of media used by gamers in social media Gamers communicate primarily through groups and blogs over forums Gamers are 2x more likely to view, upload or share pictures as compared to video Source: Lotame ID Report: Video Gamers and Social Media 2009 www.crimson-consulting.com 33 © CRIMSON CONSULTING 2009
  • 35. Trends: Gamers Are Social Networkers Gamers are social media participators and influencers. Video Gamers are high participators when it comes to actions. This includes demonstrated activities such as downloading, watching video, or viewing content. More likely to be influencers: creating, sharing, uploading, rating content. Blogging was a likely action of video gamers Source: Lotame ID Report: Video Gamers and Social Media 2009 www.crimson-consulting.com 34 © CRIMSON CONSULTING 2009
  • 36. Trends: Word-of-Mouth more important than ever Influencers drive brand affinity Awareness 1.Close Family & Friends (78%) 90% of consumers surveyed said that 2.Independent Bloggers (59%) they trust recommendations from 3.Contribute to YouTube etc.(49%) people they know, while 70% trusted consumer opinions posted online – Nielsen Global Online Consumer Survey, July Consideration 2009 Known peer influence still tops the list 1.Contribute to YouTube (49%) for purchase decisions, but social media 2. Anonymous Peer Reviews (43%) 3. Family & Friends (42%) – including corporate and independent blogs produced by key influencers – and user-generated content (UGC) from Action social influencers - play an influential 1. role that meets or beats traditional 1.Close Family & Friends (79%) marketing efforts 2.Anyonymous Peer Reviews (43%) 3.Independent bloggers (21%) - Fluent, The Razorfish Social Influence Marketing Report 2009 Percentage of type of influence during specific stages of the marketing funnel Source: Fluent, The Razorfish Social Influence Marketing Report 2009 www.crimson-consulting.com 35 © CRIMSON CONSULTING 2009
  • 37. Gaming Personas www.crimson-consulting.com 36 © CRIMSON CONSULTING 2009
  • 38. Definitions Hardcore Gamer; n. Term used to describe a type of video game player, or gamer, whose leisure time is largely devoted to playing video games. Typically, they will play a game to mastery before moving on, in the process becoming very knowledgeable about individual games. The opposite of the hardcore gamer is the casual gamer. Casual Gamer; n. Casual gamers are occasional video game players who might not even identify themselves as a gamer. What this group lacks in enthusiasm for the latest and greatest hardware and engrossing game play, they make up in sheer numbers. Source: Wikipedia www.crimson-consulting.com 37 © CRIMSON CONSULTING 2009
  • 39. Personas – Hardcore Gamer “I would much rather play video games Eric than watch TV. I can accomplish goals Age: 33 and have fun while connecting with IT Manager friends from all over the world, sharing strategies, opinions, reviews of new games and competing to be the next major league gamer” Characteristics His Questions Tech Savvy What’s the best action/adventure game on Facebook? Multi-tasker What is the best online community for gamers like me? Online Critic/Content Creator What kind of gaming related widgets or apps can I download? Socially Active How can I share pictures and video’s of my game play? Impatient Can I get the a better value from video game services like Goal Oriented Steampowered? Strategic Thinker When is the next MLG tournament? Source: http://media.onsugar.com/files/upl2/1/15111/22_2009/6f9f39ce8764d638_video_game_couple.larger.jpg www.crimson-consulting.com 38 © CRIMSON CONSULTING 2009
  • 40. Personas – Hardcore Gamer (continued) HIS STORY A university graduate, who has been playing computer games for almost 12 years, and is an avid video/computer gamer. Eric’s favorite types of games are action adventure, shooter, sports, fighting and his Eric favorite MMOG, World of Warcraft. He plays at least an hour of online multi-player games a week, Age: 28 participates in major league gaming tournaments, and commonly uses the internet to support his in game IT Manager activities by reading and posting to blogs, forums, and reviews on websites such as GotFrag.com and Gamespot.com. He grew up in a single parent household in the Midwest, eats fast food regularly, reads books often, relies on the internet as a news source, and drives a Volkswagon. Eric is a hard worker, constantly striving to improve himself and climb the social ladder in the work place. Eric likes to spend money, especially on computer gadgets. He is fashion forward and admires people who stand out and express themselves. He watches Comedy Central, HBO, and some of his other favorite shows on Hulu.com. His favorite websites are BestBuy.com, Techcrunch.com Gamespot, Google, and Facebook. TECHNOLOGY USAGE Eric is very tech savvy and spends three and a half +hours online a day. He was an early adopter of the iPhone, owns an upgraded PC for gaming and constantly communicates with friends online through IM, social networks and email via the PC and more often the mobile phone. He often purchases computer products online and often reads websites such as Techcrunch.com, or Wired.com to stay up to date with the latest technology. MARKETING Focused on value and quality, as well as making practical purchase decisions. He Is highly adept at comparison shopping online and is skeptical of big corporations and advertising claims, although he has a slight tendency to be brand loyal. Responds to messaging that dares to “stand out” and is straight forward and fact based. ONLINE ACTIVITY Plays solo and multi-player games on the PC and console, visits game sites, and participates in many online communities and forums, many of which are related to gaming. He has various social networking profiles and proudly sports his Xbox Live game card on his Facebook and MySpace pages. He always keeps up to date with forums of his favorite MOGG’s looking the latest patches, add-ons, and developer blog posts. Eric constantly searches for new and interesting websites utilizing sites like Digg and Reddit, He passes around user generated humorous content, receives and sends photos, streams radio and video, downloads music from paid music sites, and likes to download podcasts, game demos, and movie clips. He plays online multi-player games every week. Previews many products and services and buys online. He will do the research to make sure he is part of the best site and community online for gaming. www.crimson-consulting.com 39 © CRIMSON CONSULTING 2009
  • 41. Personas – Casual Gamer Sarah “During a busy day at the office, online Age: 39 games are a fun stress reliever that Executive allow me to have a bit of fun and they Assistant help break up the day” Characteristics Her Questions Time Stressed What is the best way to download puzzles and card games to Seeks Moments of Escape my smartphone? Family Oriented If I subscribe will I get new games too? Well Organized Which games are my Facebook friends playing? Adept Purchaser of Products Where can I find fun online shopping games? & Services Online What kind of online games can I play with my kids? What's happening in my Twitter network? www.crimson-consulting.com 40 © CRIMSON CONSULTING 2009
  • 42. Personas – Casual Gamer (continued) HER STORY She works as an executive assistant at a medium sized company. She is married, has two children, ages 8 and 11, and works four days a week. She looks forward to spending her weekends with family and friends, and doesn’t have much time to herself. She balances a busy schedule and spends a lot of the day on the PC. Several times a day, during a few minutes of downtime, she plays games online or on her Sarah cell phone to relax and escape. Recently she has begun to play games on her Blackberry downloading Age: 39 games and applications like Bejeweled or Peggle, and social networking games like Pet Society and YoVille. She finds the interaction with her friends new and exciting. She mainly likes games that are Executive ‘quick hits” such as Puzzle, Board, Show, Trivia or Card games that are fun to play and can be played Assistant quickly so she can get on with her work day. She often has lunch at her desk, and tries to get home so she can play with the kids. She also enjoys playing online educational games at home with her two children on sites such as FunBrain.com. She drives a Ford Escape. Her favorite shows on TV include So You Think You Can Dance, Grey’s Anatomy, and Desperate Housewives. Favorite websites include games.yahoo.com and ign.com during the day during breaks at work, Yahoo for news, IM, email, movie previews and schedules, and iTunes.com for her music downloads. She loves the shop, especially online, and is always looks for the good deals and incentives to buy. TECHNOLOGY USAGE Sarah is uses the PC all day at work and has a Blackberry provided by her company, she spends more than one hour a day on her PC and phone playing games. She organizes her busy schedule online, manages her finances, coordinates her mobile devices with her PC and iPod. She uses a digital camera, shares photos with friends and prints her own pictures from her printer. She is new to social networks such as Facebook, but has been recently spending more time on them searching for old friends and playing games. MARKETING Focused on value and quality, as well as making practical purchase decisions and is adept at comparison shopping. She is skeptical of big corporations and advertising claims, and is not especially brand loyal. Responds to messaging that dares to “stand out” and is sincere. ONLINE ACTIVITY She plays fast access arcade games, mostly her favorite game. She plays it fast, plays it often, she loves incentivized games, signs up gaming subscriptions on game sites, streams and watches clips from her favorite TV shows, upcoming movies and news. She keeps up to date with her friends on IM, email and social networks, sends and receives photos constantly, and downloads music and pod casts. She also downloads games to her mobile phone. An expert online shopper, she buys clothing and many other products and services online. www.crimson-consulting.com 41 © CRIMSON CONSULTING 2009
  • 43. Personas – Technographic Profiles Eric Sarah Age, geography, and gender impact the adoption and use of social media technologies Hardcore gamers are more apt to join social networks and maintain profiles, use social bookmarking and RSS feeds, and publish blogs, post articles, comments, and upload multimedia. Casual gamers are more apt to post ratings/reviews of products or comment on blogs and forums Source: http://www.forrester.com/Groundswell/profile_tool.html www.crimson-consulting.com 42 © CRIMSON CONSULTING 2009
  • 44. Gaming Community & Social Media Best Practices www.crimson-consulting.com 43 © CRIMSON CONSULTING 2009
  • 45. Innovation to meet expectations for new technology/ enhanced gaming experiences Blur the lines between reality and the virtual game experience Create new gaming experiences that offer practical benefits such as exercise, education, training, etc. Allow gamers to become long term contributors and participants within the gaming community Encourage gamers to express themselves through custom profiles, pages, avatars, characters, or entire games Create dynamic gaming titles which allow for extended game play and advancement over time (patches, add-ons, upgrades etc.) www.crimson-consulting.com 44 © CRIMSON CONSULTING 2009
  • 46. Offer unique, exclusive content on a daily or weekly basis Weekly blog posts, podcasts or video segments discussing game news, reviews, previews, interviews Insight into real-time gaming trends and conversations across the web Allow users to upload UGC such as game reviews and ‘lifestyle’ content (allow users to share what they think is cool) Surveys and Feedback Invite users to participate in a survey and ask questions about what content they would like to see on the site Some users will really appreciate that they are getting to shape the content on the site www.crimson-consulting.com 45 © CRIMSON CONSULTING 2009
  • 47. Enable the use of extensive status and reputation management tools Create dynamic game titles that allow users to build social capital within the game Enable gamer profiles that aggregate statistics, achievements, and real- time game play - allow them to embed and share gamer profiles across the web and social networks Provide statistics, user rankings, battles, contests and other tools that allow members to gauge and improve community status Incentivize site users - incorporate loyalty programs Points or achievements for participating on the site, redeemable for prizes/free stuff, or more games i.e. Kongregate, GamerDNA, etc. Give ‘em their props Have a small section on the site that features accomplishments of its users or a featured user Gamers by nature are competitive; recognition breeds loyalty www.crimson-consulting.com 46 © CRIMSON CONSULTING 2009
  • 48. Make the gaming experience social Add viral elements to the game play Enable users to invite friends to play along and share gaming experiences – reward them for invites Encourage groups to form and offer guild hosting to support small gaming team communities. Create large scale community based games Live interactive game shows such as Microsoft’s 1 vs 100 are engaging and fun while community members compete for real prizes Enable use of real-time status updates and offer real-time tracking of community conversation and game play trends Encourage users to share and spread web content through use of social media tools www.crimson-consulting.com 47 © CRIMSON CONSULTING 2009
  • 49. Utilize social networking tools to enable the sharing and spread of content Optimize blogs, multimedia, news etc. with sharing and bookmarking tools such as Digg, Delicious, StumbleUpon, Reddit, Twitter etc. Offer unique content supplemented with User Generated Content Integrate with existing mainstream social networking sites such as Facebook, Twitter, FriendFeed, Flickr, etc. Enable the ability to broadcast real-time status updates across multiple social profiles Contextual recommendation engines - Highly customizable recommendation engines for games, products, or community members built through user profile context. Create collaborative gaming wikis for strategies, tips/tricks etc. www.crimson-consulting.com 48 © CRIMSON CONSULTING 2009
  • 50. Utilize OpenID technology Use Facebook Connect or MySpaceID to streamline the registration process for gaming communities Easy for new members to recruit existing friends and contacts Create OpenID custom URL’s for profile pages to make profiles portable and transferable across networking sites i.e. GamerDNA, Raptr, etc. www.crimson-consulting.com 49 © CRIMSON CONSULTING 2009
  • 51. Encourage users to upload and share UGC Allow users to upload and share content such as links, blogs, news, photos, video, games, apps, widgets etc. Integrate user generated content with product and ecommerce pages Including ratings/reviews for products, screenshots, and video clips Creation of a media portal for video, photos, music and podcasts Enable ratings/reviews for UG multimedia – much like a YouTube Feature most viewed/highest rated UG videos Reward users for contribution to the site through awards, points, credits, or contests www.crimson-consulting.com 50 © CRIMSON CONSULTING 2009
  • 52. Generate awareness and engagement through use of UGC competitions UGC competitions encourage participation and community interaction that will generate repeat visits and WOM Marketing The Sims 2’s partnership with H+M created a tremendous amount of buzz and awareness for the multiple sponsors. Sony Pictures has run competitions on YouTube where users upload videos of why they deserve to win a prize www.crimson-consulting.com 51 © CRIMSON CONSULTING 2009
  • 53. Put the focus on engagement and interaction with community members Utilize brand or site ambassadors/influencers as a means to connect, interact and promote the community Create a community events calendar that allows members to connect and play with similar community members based on affinity, gender, location, etc. Xbox Live has an excellent calendar offering game nights for families, girls etc. Xbox hosts game nights where members play celebrities and musicians Generate blog postings that stimulate conversation Interact with members - reply to comments or questions pertaining to individual posts Engage audience members on popular social networks Create a social graph across multiple social networks Create a cohesive web presence by linking and aggregating multiple social profiles and sites. www.crimson-consulting.com 52 © CRIMSON CONSULTING 2009
  • 54. Make communities portable and accessible Create widgets, apps, and mobile platforms to engage community members whenever and wherever Develop or partner with mobile social gaming platforms to tap into new users and connect with an existing community www.crimson-consulting.com 53 © CRIMSON CONSULTING 2009
  • 55. Use micro-transactions, updates, patches, and game add-ons to create a long-term sustainable business model Offer free-to-play game titles monetized through microtransactions Partner with brands, bringing real life products and merchandise into the virtual world Allow users to upgrade, improve, or add to their existing gaming experience over time Create long term value for users by combining gamer reputation management with virtual goods Offer pre-paid cards in retail locations and online to streamline the purchase process and target users with no access to credit www.crimson-consulting.com 54 © CRIMSON CONSULTING 2009
  • 56. References Market Research Reports: Essential Facts About the Computer and Video Game Industry, Entertainment Software Association, 2009 The Adult Video Game Market in the US, Packaged Facts ’09 Pew Internet & American Life Project 2009 Lotame ID Report: Video Gamers and Social Media 2009, Lotame 2009 Fluent: The Razorfish Social Influence Marketing Report 2009, Razorfish July 2009 www.crimson-consulting.com 55 © CRIMSON CONSULTING 2009
  • 57. Introduction to Crimson Digital Marketing, Consulting Community and 7,000 Teams Social Media SMEs Management Marketing Network of 7,000 Consulting Services consultants on Marketing Issues Positioning 6 Continents and Messaging 64 Countries Market, Product Go-to-Market and Competitive Strategy and Assessment Operations • Interactive Deep Expertise • Technology • Marketing • Management Consulting Industry-Leading Cisco HP Adobe BEA Clients Microsoft SAP Seagate Oracle www.crimson-consulting.com 56 © CRIMSON CONSULTING 2009
  • 58. Questions? Please contact: Crimson Consulting 4970 El Camino Real, Los Altos, CA 94022 650.960.3600 www.crimson-consulting.com Karen O’Brien Partner, Interactive Services 415.720.6859 kobrien@crimson-consulting.com T: @bondjanebond www.crimson-consulting.com © CRIMSON CONSULTING 2009