Task 3 Business Models

Task 3

Business Models

Explain the three business models of:

Arcade

Box, Ship and Done

Observe, Measure and Modify.

Coins

Arcade:

When it comes to arcade games; the games are made by the developers/publishers and distributed via their own arcade machines situated in multiple locations. Coins are used and the transaction is clear. This involves a large investment but clear financial returns. In 1978 in Japan, there was a national coin shortage when the arcade game Space Invaders was introduced.

Consoles 

Box, ship and done:

Developers/publishers distribute their games via their own consoles; both are sold via retail outlets (shops etc.). If you didn’t have the console then you couldn’t play the best and/or most popular games. The result lead to developers not creating games that can’t work on Microsoft, Sony or Nintendo’s consoles. PC became popular but the inconsistency in the spec of home computers meant that few of the larger development companies and publishers got involved. Sony Nintendo and Microsoft became dominant when Sony pulled out of hardware manufacture in 2001.

Digital Distribution

Observe, Measure and Modify:

Manufacturing, transporting, storing and distributing games on disks is very cost affective for publishers but it opens the market up more. However, it’s likely that there won’t be many, if any at all, physical goods due to the ever increasing amount of digitally distributed content. Digital distribution has become the norm; games can be purchased online via Xbox live, PSN or other networks and websites who distribute games. Gaming on smartphones and tablets has become more and more popular and are now the most used gaming platform .Onlive.co.uk has started to offer cloud gaming without the use of a console. Consoles could one day become irrelevant as is outlet retail. But due to the improving motion gaming technology, consoles might never die out as it gets more and more popular.

 

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