PC Game Industry
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History of PC Gaming
The first developments of PC games started in 1952 when A.S. Douglas created a game called OXO. OXO is also known as Noughts and Crosses, it is a version of tic-tac-toe. This was the first graphical computer game made. The game was played on the EDSAC computer. The EDSAC was the worlds first stored program electric computer. Years later in 1958, William Higinbotham created the game Tennis for Two. This game was played on a Brookhaven National Laboratory oscilloscope. The game looked like a tennis court where two players would use controllers and hit a simulated ball back and forth. This was the first video game created.
In 1962 the first game for computers was created. Steve Russell and a group of MIT students made the game "Spacewar!." This was the first computer game that was distributed and available around the country. For this game two players controlled spaceships and shot missiles at each other. This game was played on the new PDP-1 computer. Later in the 1960’s Ralph Baer created the video game that was to be played on a television. In 1969 Ken Thompson made the game Space Travel. The game was first created for the MULTICS operating system but it then became the first game that was played on the UNIX operating system.
In the 1970’s games started to become more complex and different types of operating systems were introduced. In 1971 Nolan Bushnell and Ted Dabney created Computer Space, this was the first ever arcade game. Nolan Bushnell also created the game Pong a year later. And together in 1972 Nolan and ted created Atari. Pong became a very successful game and Atari sold 19,000 Pong machines. Magnavox released the first home game console, the Odyssey, in 1972. In 1976 the first programmable home game console was released called the Fairchild Video Entertainment System. It was invented by Robert Noyce and renamed Channel F. Channel F. Atari released the console called the Video Computer System in 1977, along with 9 games for the system. In 1978 Space Invaders and Asteroids were released. And by 1979 color arcade games became more popular, especially Pac-Man. Also that year Mattel released on of the first handheld units. It was composed of an LCD screen and played the game Block Buster. Because many of the games and the game consoles were not copyrighted, in 1977 makers of older games and consoles sold their products, driving Fairchild and others out of business. Atari was one company that avoided this crash of the market.
In 1980 home console systems became more popular and available for everyone. The famous game Pac-Man is rereleased and sells 300,000 units and is still one of the most popular arcade games played. Nintendo, which was a company that developed games in Japan came to America unsure of how it would do. And in 1981 Nintendo creates Donkey Kong which was a huge step to getting Nintendo known around the country. Also in this year Arnie Katz and Bill Kunkel create Electronic Games and releases the first magazine that is solely for video games. In 1982 the Commodore 4 is released. It became popular very fast because it was relatively inexpensive and had good sound and picture quality compared to anything else at this time. In 1983 the video game industry experienced another crash like 1977. This was caused by the release of games that were not well received. This caused many gaming companies to go bankrupt. In 1985 Nintendo makes a huge moved by bringing the Famicom to America, they renamed it the Nintendo Entertainment System. Nintendo released it along with several games and it became a huge success. With the rising success off the NES, Sega releases the Sega Master System to compete with the NES. With these new consoles came new parts. Games required joysticks, complex controllers, paddles and keypads. Also around this time Alex Pajitnov, a Russian programmer creates the game now very famous game Tetris. In 1989 Nintendo released the Game Boy created by Gunpei Yokoi. It is a handheld device that could play Tetris, Super Mario and a baseball game. To compete with the Game Boy, Atari released the Lynx.
In the 1990’s computers became less expensive and more powerful. Games became readily available on floppy disks and CD’s. And 3-D graphics were developed. In 1990 Nintendo released Super Mario 3 which became one of the best selling game cartridges. Also during this time Commodore released the CDTV. It was the Commodore minus the keyboard. And instead of being sold with game cartridges it came with CD’s. In 1991 Nintendo released the Super Nintendo. And Sega introduces the character Sonic the Hedgehog to compete with Nintendo’s leading character Mario. In 1992 the first real-time strategy game was released. Dune II consisted of players having an overhead view of the playing area and control over military and economic features of armies. Also during this time the company Maxis released a line of “Sims” games, such as SimCity, SimTower, SimCity 2000, and The Sims. In 1994 Nintendo released a new version of the Game Boy, the Super Game Boy. This eventually gets an upgrade to become the Game Boy Color that is released in 1998. And in 1995 the first PlayStation was introduced by Sony. Around this time the Nintendo 64 was released in Japan and caused chaos. The Nintendo 64 was finally released in America in 1996. 1.3 million consoles were sold in the first 3 months of the product being on the market. Nintendo also brought Pokémon over to the United States. The Pokémon games became Nintendo’s fastest selling game ever. Pokémon turned into a craze for children everywhere, there were movies and television shows, and Pokémon was everywhere. Also at this point Sony was one of the leading companies in the gamin industry.
In 2000 The Sims was released and became the best selling computer game of all time. The much anticipated Playstation 2 was released in Japan. Sony had record sales, but before releasing it in the United States the defects that were found were perfected. Sony finally released the PS2 and once again had record sales, it was no where to be found in stores because everyone pre-ordered them before they were released. Nintendo released their new console the Game Cube and the next generation Game Boy, the Game Boy Advanced, in 2001. Also in 2001 Microsoft introduced the first Xbox. Along with the Xbox Microsoft launched the game Halo. The next year Microsoft introduces Xbox live where people from around the country can sign online through there Xbox and play each other. In 2003 Nokia released the N-Gage which is a phone and a gaming device in one. In 2004 Halo 2 was released and within 5 days became Microsoft’s highest selling game ever. Sony also released the Playstation Portable, also known as PSP. The PSP is a handheld gaming device with incredible capabilities. In 2005 Microsoft released the highly anticipated Xbox 360. Also around this time Guitar Hero was released and became a very popular game. In 2006 Nintendo released the Wii. The Wii is the first game console with portable controllers that require the user to move around. And Sony released the Playstation 3. In 2007 Microsoft released Halo 3 which earned over $170 million within the first 24 hours of being on the market. Also around this time newer editions of Guitar Hero were released and Rock Band was released. Compared to games and the PC industry in the 60’s, today games have become more interactive and advanced than ever before.
Technical Information on PC Games
The computer gaming industry is a constantly evolving market limited only by the innovation and creativity of humankind. A computer game, at its essence it can be considered works of art. They are a synthesis of artistic and technical ideas passed on for the player’s critique and enjoyment. The very basis of this market is hinged upon constant development of new technological systems and the creativity of game creators that are able to utilize these new technologies. The technology used in computer gaming is that of a dualistic relationship between hardware and software.
The backbone upon which one can play a game is known as hardware. Some examples can be, but not limited to, a PC, game boy, Playstation, cell phone, etc. Although they are different by design and capabilities, all of the before mentioned hardware systems share the same basic components and technical principals. Since their inception all gaming systems have:
• A user input component, such as a keyboard, joystick, controller, mouse etc in order to interact with the game.
• A processing component that processes the game coding and logic.
• A graphical compiler or adapter such as a video card that processes visual information
• A visual output component such as a TV, monitor, or LCD screen
• A sound input and output processor that processes and plays back the game’s sound.
• Networking such as an Internet connection. For interacting with other game users. (This is a recent development with game makers that require the user to have an active network connection.)
• A game input component. Such as a Hard drive, game cartridge, CD/DVD drive that allows the game to be loaded on to the gaming system.
• Some sort of Operating system installed that allows the game application to run with the hardware (e.g) DOS, Windows, Linux, etc.
As the actual games become more complex and detailed, so to the gaming systems increase in their complexity and processing ability in order to meet the demand of not only the game developers, but also the users themselves. The actual game is known as the software. Software is, by definition the collection of parameters; calculations and documentation that perform a task on a hardware system. There are many segments that constitute computer game software.
• Program language(s), the logic backbone of the computer game, it is contains how the game will behave when the user interacts with it.
• Graphics- Essentially, how the game will look to the user.
• Sound, Whatever music, or sound effects that enhance the users experience
• Game play, The action(s) or tasks that are set forth in the game for the user to accomplish.
Through the decades many programmers have developed programming “languages” that facilitate the actual “making of the game.” A programmer, using programming language can create the interaction interface that is needed to play a game. For example, in the popular game Super Mario when the player presses a button, it is the programming language that translates that particular input into an action on the sreen (e.g. jumping, running etc) Some examples of this programming language are, Assembly, C++. Open GL, direct X etc.
Consumer Market Analysis
Most people in the United States know of friends who they would consider a video game addict. I for one, have several friends who I would consider being on the verge of being obsessed. But what is too much? Coming from a child who grew up without any video game consoles in her house, and the closest I would get to a video game was on the The Learning Companies PC games; my perception is extremely swayed.
Across the United States people of all ages and genders have caught the game trend. As technology continues to grow and become better, the availability of the games is becoming easier and easier to access. Whether the game is being played on a PC, cellular phone, or one of the many game consoles people enjoy it everywhere. The market for games is constantly changing and getting better to keep the fans longing for the new console or the new version of their favorite game. The market is enormous for these products and the consumers range in age and gender. Age tends to play a major role in what type of gaming a person is playing. According to statistics, in 2007 30 percent of the PC gamers were the younger generations (18 and younger) and 44 percent were thirty five years and older. The numbers flipped when it came to the console games. 40 percent of the console gamers were eighteen and younger while 25 percent were thirty five years and older (Game Player Data). One reason attributing to these numbers is said that older people prefer the PC games because they have less time to play and do not want to pay roughly four hundred dollars for a game console then an additional fifty dollars for every game. The PC games claim to be more sophisticated as well. Those who enjoy to play PC games rather than the console games mostly use $1000 equipment but those who are big fans or just like the best equipment are known to buy $10,000 PCs such as the Intel Skulltrail or the Amp’s Spider.
In general the market for gamers is varied. But overall the most popular age for all gaming players is eighteen to forty nine years and that is 47.6 percent of the gaming population. 28.2 percent are eighteen years and younger and 24.2 percent are over fifty. This somewhat close range allows the market to keep a wide variety of games available to consumers.
Between females and males, the market tends to appeal more to males. When looking at the most popular PC game in 2007, Blizzards World Of Warcraft (IGN.com), the game appeals to the male gender more than the female. Males often prefer the war and gorey games therefore the market segment leans more toward men. Men significantly play more games than women with a 62 percent verse 38 percent women playing.
Over the past years, the genres in which the consumers prefer do not vary a lot. The top game genre over the past few years has been action. The percentage of people who prefer video game action games has only fluctuated by 2.6 percent between 2005 and 2006. The second most popular genre for video gaming genre was sporting games and between 2005 and 2006 has only changed by .8 percent. The same consistency goes for PC games. The most popular PC game in both 2005 and 2006 is strategy and the fluctuation was only 8.5 percent (Game Player Data) (2005 Essential Facts About the Computer and Video Gaming Industry). The consistency of both the PC games and video games most popular genre allows the market to forecast the consumer’s preference which gives them an advantage when making new games.
The market for PC games is growing rapidly. The PC games allow for people to play both games bought for the PC and games played online. Online games are played very closely by men and women. Men play 56 percent of the online games and women play 44 percent of the games. Of the online games played, most popular in the market in 2005 and 2006 was puzzle, board, trivia, game show, and card type of games. Having the consumers favorite game be the same for two consecutive years allows forecasting to be a lot easier for the engineers and allows for target marketing.
New versions of gaming consoles are continuously being made as the technology frequently grows. Nintendo’s Gameboys and PlayStation’s PsP’s are two companies portable videogames that have been around for quite some time but are constantly being made better and more appealing. The newest feature of technology is the ability to play games on cell phones. Cell phones come programmed with games but now with the features to go online, allow people to play online games on their phones. In 2002, only 20 percent of American head household wireless device owners played games on their phones. This number has grown to 34 percent and with the new technology of cellular devises will continue to grow (Game Player Data) (2005 Essential Facts About the Computer and Video Gaming Industry).
Overall, the consumer profile for the PC gaming industry seems to be consistent from year to year. The market maintains a steady enhancement of technology year after year and strategically plans when to release the newest games and consoles so that consumers have the best reaction. After years of producing popular products, as long as the consumers continue to stayed pleased with the products, the market will stay growing at an increasing rate.
Market Conditions
Today, there are a variety of different ways that a person can enjoy a “gaming” experience. The three major forms of video games today are PC games, consol games, and handheld games. The term “PC game” or “PC gaming” relates to the form/type of gaming that involves a person interacting with a single computer (laptop or desktop), either by using or manipulating the computer’s keyboard or mouse. A consol game (i.e. Nintendo Wii) is a unique electronic device that is purchased from an outside source that then is connected to a television for use. Finally, a handheld game is a portable handheld electronic device that allows the user to play at any location and at any point in time. While the consol and handheld devices are indeed the major competitors of the PC Gaming industry, there are also a few more less dominating substitutions in the gaming market. For example, currently there are other forms of technology that have the ability to play interactive games such as cell phones, digital cameras, and MP3 players. Additionally, arcade games, which refers to a type gaming device, usually located in a public place (such as carnival or arcade) that is specifically designed for only one game and for multiple users.
The major established firms in the PC Game Industry, which form what is called the PC Gaming Alliance, current included Microsoft, Intel, Dell, Nvidia Corp, Acer Inc./Gateway Inc., Activision Publishing Inc., Razer USA Ltd, and Advanced Micro Devices. Although PC gaming is an extremely easy and efficient way to game, its sales and share in the market place are beginning to drastically drop. Out of the total 18.85 billion dollars that the North American video game industry took in during 2007 last year, only 910.7 million dollars (about 14%) was credited to the PC Game Industry. Additionally, researchers and market research firms (such as NPD) reported that out of the total 267.8 million games sold in 2007, 36.4 million were PC games, while console games sold an impressive 153.9 million units total bringing 6.6 billion dollars. Handheld games, meanwhile, sold 77.5 million units while bringing in a record 2 billion dollars in sales. The top selling PC games for the year 2007 is listed bellow.
- World of Warcraft: Burning Crusade (Blizzard Entertainment) - 2.25 million
- World of Warcraft (Blizzard Entertainment) - 914,000
- The Sims 2 Seasons Expansion Pack (EA Maxis) - 433,000
- Call of Duty 4: Modern Warfare (Infinity Ward) 383,000
- Command & Conquer 3: Tiberium Wars (EA Los Angeles) - 343,000
- Sim City 4 Deluxe (Maxis) - 284,000
- The Sims 2 (Maxis) - 281,000
- The Sims 2 Bon Voyage Expansion Pack (Maxis) - 271,000
- Age of Empires III (Ensemble Studios) - 259,000
- The Sims 2 Pets Expansion Pack (Maxis) - 236,000
Despite PC Games grim sales figures in 2007 and thus far in 2008, many believe that the PC Game Industry will eventually make a come back and will once again own a large part of the video game market share. This so –called “come back” of the PC game Industry entirely depends on the Industry’s ability, in the future, to create a secure gaming experience that is not ripe with piracy and illegal downloads as the industry currently is. Developers now are currently envisioning a system of PC gaming where the user would access the game data directly from a central server rather than the individual user’s PC. Hopefully, this new system will eventually rid the PC Game Industry of piracy once and for all and allow PC gaming to once again become a superpower in the video game market.
The Future
As long as boredom exists, people will turn to PC games as a form of entertainment. From playing solitaire during a boring class, to playing Madden 08 with your roommates to kill time. Gaming has established itself as part of the daily routine of many individuals. This can be credited to the easy access to many games, which in some cases are cheap or even free.
During the past years, PC games have evolved from playing only against the computer to playing against someone from another country. The application of the internet into the PC games creates an interaction between different players, causing gamers to play the same game for a longer period of time because the game will be more unpredictable and players will not get bored as fast than if playing against a computer opponent, that after you defeat it, your interest for the game will decrease. This innovation attracted a broader range of gamers from a thirteen year old kid to a forty year old married man playing the same game. So many people play PC games that it has become a $10 billion industry, which competes with the motion picture industry as the most profitable entertainment industry in the world.
The future of PC gaming depends on the technological advances that occur in the upcoming years. This is an industry that as long as technology is part of our lives, the gaming industry will not decline, it will only attract more and more people. At the beginning, the game industry was only part of the youth culture because the older generations did not witness this technological innovation. Now, as everyone is aware of the gaming industry and technology as part of their lives, as people get older, they will still continue to play games and the new generations will adopt this habit of being a gamer, causing the game industry to rise to even higher levels.
Sources for PC Gaming History
1. http://www.techdock.net/PC%20Game%20History/PC%20Game%20History.htm
2. http://inventors.about.com/library/inventors/blcomputer_videogames.htm
3. http://www.gamespot.com/gamespot/features/video/hov/p10_11.html
4. http://www.nintendo.com/
5. http://www.playstation.com/
6. http://www.ralphbaer.com/
7. http://www.atarihq.com/
Sources For Technical Information
1. http://www.techniz.co.uk
2. http://www.pcgameshardware.de/aid,635861/News/PC_Games_Hardware_Technical_QundA_WorldShift
Sources for Consumer Analysis Report
1. "Game Player Data." Entertainment Software Association. Entertainment Software Association. 3 Apr. 2008 <http://www.theesa.com/facts/gamer_data.php>
2. 2005 Essential Facts About the Computer and Video Gaming Industry. Entertainment Software Association <http://www.theesa.com/files/2005EssentialFacts.pdf>.
3. http://answers.google.com/answers/threadview?id=538229
Sources for Current Market Conditions
1. http://www.shacknews.com/onearticle.x/50939
2. http://www.eetasia.com/ART_8800505935_499495_NT_92df90c8.HTM
3. http://www.shacknews.com/onearticle.x/51516
4. http://www.pcworld.com/article/id,142643/article.html
Group Members
Sarah Pistocchi - History of PC Games
Sergio Rosa - Technical Information
Casey Frobey - Consumer Profile
John Walsh - Market Conditions
Angel Valderas - Future Market
