FEBRUARY 2004

THEY LIKE TO WATCH: A ROUND-UP OF INDUSTRY ANALYSTS AND RESEARCHERS

Every billion dollar industry has its watchers, those who closely monitor and analyze a particular market. The game industry is no exception. These companies don’t make the games, but they help the game makers make more money. Offering a variety of market analysis and strategy services, these companies study games from a financial perspective. Why do consumers buy the games they do? What does the future hold for the various industry segments? The online market? The mobile market? The console market? How can developers and publishers apply this information to their own business strategies?

For every "dude, how do I get paid to test games?" email we get, we get another wanting business-related information and statistics. The information is definitely out there, but you must do your research and, in many instances, you’ll have to lay out a not inconsiderable amount of money.

The following is a round-up of those research and analyst firms who offer a focus on the game industry. Virtually all offer customized, one-on-one services, but the information below focuses more on that industry information that is readily available, either for purchase or for free. This list is certainly not exhaustive, nor should it be taken as an endorsement. If you want to hire any of these companies, you’ll need to do your own research into their reputations and abilities. Nevertheless, if you don’t need to know how to build a game but, rather, how to build a game business, the following, in alphabetical order, should offer some direction.

-- DFC INTELLIGENCE --

Who they are: A strategic market research and consulting firm focused on interactive entertainment.

What they offer the game industry: In-depth reports and subscription-based research services. Examples of recently released reports include the 600+ page report, "Market Leaders in the Video Game and Interactive Entertainment Industry", released in February 2003 and providing analysis of the leading companies in the interactive entertainment industry. Approximate cost for the report? $2,995.

Freebies: Their monthly "Game Industry Research Briefs" are usually fairly informative and data-rich. You can check out articles online such as "Holiday 2003: Is the Industry Ready for the Mass-Market Consumer?" or sign up for their mailing list to receive the monthly briefs.

Online: www.dfcint.com

-- GAMES INVESTOR CONSULTING --

Who they are: Set up in 2003 by Nick Gibson, former Senior Games Analyst at research-led investment bank Durlacher Limited, the company "was established to bridge the gap between the games industry and the financial community by making use of its considerable experience, extensive contact network and an in-depth understanding of both areas."

What they offer the game industry: Independent research and corporate finance services.

Freebies: Gibson maintains the "Games Investor" website which offers some great (and free) information on how the business side of the industry works, from development to publishing to distribution and retail. There are also a series of industry "thinkpieces" written by Gibson.

Online: www.gamesinvestor.com

-- IDC --

Who they are: Global market intelligence and advisory firm in the information technology and telecommunications industries. They "analyze and predict technology trends" so their clients can make "strategic, fact-based decisions on IT purchases and business strategy."

What they offer the game industry: Recent industry-related reports from IDC include, "Peculiarities and Oddities and Other Stuff: 2003 Videogamer Survey", a study released in October 2003 which presents the results and analysis of survey findings from a telephone-based survey fielded to 353 videogame households. Approximate cost of the report? $3,750. In November 2003, IDC released the forecast and analysis report, "Worldwide Videogame Hardware and Software Forecast and Analysis, 2003-2007: Midlife Changes" ($3,500).

Freebies: Most of the information in this rather deep site explains what IDC can do for you. However, if you want to know what is entailed in putting together a business plan, what "competitive analysis" means, what it takes to get a product to market, and how to rate a potential partner (including a detailed "worksheet" PDF), then check out the "Prepare" link in the main navigation bar.

Online: www.idc.com

-- INFORMA MEDIA --

Who they are: Part of the larger Informa Group, which focuses on six major international markets, including telecoms and media, and produces more than 1,500 publishing products and 3,500 conferences.

What they offer the game industry: Published every two weeks (23 issues a year), Informa Media’s newsletter, "Mobile Games Analyst" promises to "scrutinize" this sector of the industry, "from quality of service issues and the emerging mobile gaming value chain, to competitors' strategies, to reveal how companies are making money from mobile games across the world."

Annual cost to subscribe ranges from $1,691 to $5,000+.

Freebies: A free trial is offered for "Mobile Games Analyst" and other Informa Media products.

Online: www.informamedia.com

-- JUNIPER RESEARCH --

Who they are: UK-based "provider of business intelligence". They offer data and researched analysis to manufacturers, financiers, developers, and service/content providers across the "communications sector".

What they offer the game industry: A recent report from Juniper is the January 2004 release, "Next Generation Video Game Consoles: Platforms and Markets", which covers the "rapidly changing landscape" faced by the big three: Sony, Microsoft and Nintendo. The report "quantifies these changes, and provides a detailed analysis of both hardware (handhelds and home platforms) and software. Particular attention has been paid to the impact of new device types, wireless connections, mobility, the internet, and demographic changes in the user base." The report is said to also include one-on-one interviews with key players, along with a "comprehensive forecast suite." Approximate cost? $2,750.

Freebies: Abridged white papers on each of the reports are available for free download.

Online: www.juniperresearch.com

-- JUPITER RESEARCH --

Who they are: Backed by "proprietary data", Jupiter’s stated purpose is to help "companies develop, extend and integrate business strategies across online and emerging channels."

What they offer the game industry: In addition to custom consulting, through their "Jupiter Direct", reports are available for purchase in the area of "Personal Computer & Console Games". Recent releases include "Gamer Audience Segmentation: Understanding and Targeting Ultra-Gamers and Influencers" (November 2003, $795), and "Broadband PC Gaming in Europe: Games Download Will Emerge as the Lead Growth Area" (October 2003, $195).

Freebies: You need to be an existing client to access much of the information online, but some industry data can be gleaned from their posted press releases.

Online: www.jupiterresearch.com and www.jupiterdirect.com

-- NPD FUNWORLD --

Who they are: Offer tracking services to provide a comprehensive overview of product movement and consumer behavior for toy and video game marketers.

What they offer the game industry: Their "Video Games Quarterly Report" lists the Top 50 games by platform. Each spreadsheet lists the title, publisher and intro-date, projected units, projected dollars (for the quarter and year-to-date) and average selling price of each software title sold through retailers participating in NPD's Video Games Software Sample in the U.S. Approximate cost? $1,500. Another example report is the "Video Games Cross-Platform Ownership Study" to help understand "consumers' video games platform ownership and preferences." (September 2003, $7,500).

Freebies: "Industry Trends" charts are posted online featuring the best-selling game titles and console accessories for the month.

Online: www.npdfunworld.com

-- STRATEGY ANALYTICS --

Who they area: Not surprisingly, Strategy Analytics offer strategy and analysis services. Their areas of concentration include communications, broadband consumer electronics, and enabling technologies markets.

What they offer the game industry: With a slant toward the mobile and broadband aspects of the game industry, Strategy Analytics offer client reports such as "Disney's Broadband Gaming Debut: A New Toon On An Old Whistle" (July 2003), and "Games Consoles And Wireless Home Networks: Technical Challenges Prove Tough To Overcome" (July 2003).

Freebies: To access the reports, you must be a client.

Online: www.strategyanalytics.com

-- THE THEMIS GROUP --

Who they are: Providers of "marketing, management, client generation and customer support services to developers and publishers of online PC and console games, websites, and other community driven services within the interactive entertainment industry."

What they offer the game industry: The "Themis Report 2004" is a 121 page report focusing on the business models, key players, and emerging issues of the online game industry. Approximate cost? $995. They also recently partnered with DFC Intelligence to bring the "Themis Online Games Research package", a 521 page package that includes both the "Themis Report" and the "DFC Online Game Market Report". The $3,595 package also includes 6 months of updates from DFC.

Freebies: Several white papers are available online including excerpts from their full reports, as well as interesting downloads such as an Excel spreadsheet that allows you to calculate expected net revenues from the launch of a subscription-based online game given certain assumptions about price point, conversion rates, and churn.

Online: www.themis-group.com



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