Video Games and the Shaping of Industrial Transformation

Center on Japanese Economy and Business, Columbia Business School
Tuesday, February 21, 2012
Uris 301, Columbia Business School

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Disappearance of physical media
Up until now, video games have been sold mainly on discs. This will change. First, with downloads to the hard disc of your client, and next with iCloud-like features where various devices can copy data from the server. Moving even further, we can see places where the data on the server isn't copied at all and simply uses streaming. Here, it's important to plan for the proper legal framework. Copyright law was designed for property that could be copied; what happens when that’s not the case?

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Finally, we have user generated content
This is the point at which customers transform content. I don't mean like the extreme example of Second Life, but rather the way that it’s the experience of playing other users that makes an MMO fun. This promotes a change in our thinking from product-out to providing service. Here is another situation where copyright law begins to fundamentally break down.

Now that we understand where the industry will change, let’s consider where we in the game industry have to provide value.

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