Extracting the premium from social gamesThe podcast |
Deloitte global podcasts
Extracting the premium from social games
To use our embedded media player, please install the latest version of Adobe Flash Player. You can also download the podcast file.
With the growth of social networks and the popularity of social gaming taking off in 2010 and 2011, the financial potential of "social gaming" has been drawn to the public’s attention. However companies need to evolve away from the "freemium" model that has propelled them into the spotlight to take a greater portion of the US$63 billion global games market from 2 per cent this year. Growth has already started to slow for some developers while the overall community of social gamers has stuttered over the past two years. Growth in revenue across the sub-sector will slow to less than 20 per cent in 2012 which may force the hand of games developers to focus less on selling virtual goods over social networks and to consider the potential of advertising or charging for games up front. In this way, it needs to adopt the business model of the more traditional console gaming industry and look to develop franchises.
Podcast highlights:
- What accounts for the dramatic drop in social gaming revenue?
- How has the demographic shift changed the market?
- What can social gaming companies do to combat the current decline?
Guests:
- Duncan Stewart, Director of Deloitte Canada Research and co-author of TMT Predictions
- Darren McLennan, manager, Deloitte Canada Consulting, specializing in strategy and operations
- Kasra Zokaei, business technology analyst, Deloitte Canada Consulting, specializing in enterprise applications
Host:
Holly Seguine, Senior Manager, Online Communications, Deloitte Touche Tohmatsu Limited
Related Content:
TMT Predictions 2012
Explore all the predictions.
