Pikachu, Mascot of the Video Game Revolution
Once videogames could only be played in arcade parlors. You needed a pack of coins and had to queue in line to play Space Invaders or Pac-Man. Hardware and software were integrated in a single product designed for a specific purpose: gaming. Then, in the early 1980s, the first video consoles arrived (they are still in vogue today), which allowed users to play with compatible gaming software available on the market. In fact, even before the advent of the iPhone and the world of apps, it was the world of videogames that marketed dedicated devices enabling the creation of separate digital content by the software industry: video games as we know them.
While content was digital, the consoles were still physical hardware, and the immersion into virtual was limited by the physical and technical specifications of the physical console. So you could only play alone or in the company of a few friends; the videogame was conceived as a separate product, with its specificity of use pre-designed by its developers. As players, the task of consumers was just to complete the various levels of game and thus be done with it. In essence, once consumed, the utility of the game dropped to zero.
➜ The impact of modding
Recently, with the advent of multiple digital platforms, the world of video games has radically evolved. Producers have realized that games could take on a new life beyond the functionalities conceived at the design stage. Inspired by the phenomenon of modding – players who modify characters and/or content of a video game by using specific software on their PCs, thus extending the game's potential – a new generation of video games is born where the main mode of play lies in the possibility for each player to interactively create and edit the game while playing. Combined with the ability to simultaneously play with N connected players from all over the world, contemporary video games facilitate multiple interactions and multiply opportunities of usage. As in other market realities, digitization has contributed to the augmented use of the product, thus making the video game capable of evolving according to the actual use being made by consumers.
➜ Candy Crush beyond Candy Crush
Ubiquity, ease of access from multiple devices, and ease of play by an enlarged audience are the new dimensions that spell success for a video game. Thus, it is no longer the time for action game blockbusters relying on pharaonic budgets, but rather for interactive video games such as Pokemon Go or Candy Crush that facilitate multiple uses, and therefore, potentially, higher revenues thanks to increased consumption over time. All this has extended the average life of the product and the business model has evolved accordingly, from a static one based on unit sales, to a dynamic one based on access, interaction and exchanges by the N users of a video game.
Video games have evolved from simple products to service platforms; many have their own social networks (where you can interact with other users) and integrated marketplaces where you can buy credits and various virtual tools to extend gaming features and make them more interactive. Some games, such as flight simulators or strategic games, have given rise to parallel consulting businesses that use them to train employees of other companies; it is the so-called "serious gaming" phenomenon.
Video games have already anticipated digital market trends in the past: could they be a template for how pre-set durable goods, such as cars, will change their role and function with digital transformation?