Innovation of a different kind in the traditional toys market
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This document discusses the evolution of the video game and toy industries over several decades. It notes that while new toys are introduced every year, the major players in the toy industry have not changed in decades. In contrast, the video game industry has seen significant changes and consolidation, with a few major companies now dominating the market. It suggests that new technological developments are driving structural changes in industries, creating new opportunities for entrepreneurs.
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Innovation of a different kind in the traditional toys market
- 2. Maker : CEO & Founder of Makeree Teacher : IDC, TAU, Kibbutzim Seminar Activist: GameIS, Games For Peace [email protected]
- 3. Although there are new innovative toys each year (in average 60% of toys each year are new): The structure of the industry and the identity of the big players haven’t changed for decades !!! https://law.resource.org/pub/eu/toys/guidance/the_european_toy_industry_-_facts_and_figures_-_january_2013-4.pdf
- 4. Until the mid 80s Toys and Video Games were considered the same industry. Today Video Games is a bigger then Toys.
- 6. • Mario was already in more then 250 games • Successful new IP was very rare • Home console game price didn’t change in 30 years
- 7. • Nintendo – 16.7 Billion • Sony Computer Entertainment – 14.0 Billion • Microsoft Entertainment Device Division – 8.2 Billion • Electronic Arts – 4.2 Billion • Activision Blizzard - 3.0 Billion In 2008 video games market size world wide was $55B (Today its about $90B). 5 companies dominate 85% of the market. Less then sixth of the market was divided between tens of thousands of companies
- 8. • NASDAQ +25% • EA Stock -61% • Activision Blizzard Stock -33% • Xbox Division in Microsoft lifetime loss $7.8B • Play Station Division in Sony lifetime loss $3B • Nintendo Stock -71% http://www.slideshare.net/bcousins/when-the-consoles-die-what-comes-next
- 9. • Nintendo valued $17.7B (was $61.7B in 2008) • Activision $13.3B • Zynga $9.8B • Gree $7.1B • Nexon $6.3B
- 10. Revenues from games 2013: Tencent 5.2B, Apple 2.3B, Google 1.4B, Facebook 0.9B, (http://www.newzoo.com/free/rankings/top-25- companies-by-game-revenues/)
- 12. 1972 1977 1982 1989
- 13. 2002 2004 2006 20011998 2000 2007 2008 2008 2010
- 15. • First 25 years – 4 platforms types • Next 15 years – +10 platform types • Last 5 years – at least 4 platform types 0 2 4 6 8 10 12 14 16 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
- 17. 2011: EA buys Popcap for $1.3B 2106: Activision Blizzard buys King for $5.9B 2016: Tencent buys Supercell for $10.2B
- 19. (No) (Yes)
- 22. • Technological development has an effect on structural changes of industries. • structural changes usually create new opportunities. • I believe the toy industry is changing, and now, there are more opportunities for entrepreneurs then ever. Seize the opportunity