MEMORANDUM
Value Added:1. All links open to a new navigator window2. Added pool table background About Video Games on the Internet:When online entertainment first began it was not a very promising business. Then people started using the internet more often, and it became easier to use. Once video games became available on the Internet they needed some way to attract media attention. Video games needed some high profile attention from the main stream and in order to do so, Shockrave.com was formed by some Hollywood oddballs. In doing so the company catalyzed the great online entertainment land rush in 1999. The first video game that was available on-line was Real Pool, a virtual 3D pool game which allows you top adjust angles and the power of your shot. It was a first for online video games and in less than a year, Real Pool was being played more than a million times a month. The number has increased to about 5 million monthly plays, with an average game time of 12 minutes.The new on-line entertainment source: After Shockrave was formed they also needed to figure out how everybody who wants to play their 3D pool game. They decided that the best way to do so was to offer free software to download before you play the game. They decided to use 3D groove plug ins, which allowed anybody to play any of Shockrave's 3D games. A couple of weeks after offering 3D groove on his web site the owner Chris Kantrowitz signed with Macromedia president Peter Laufenberg and formed Shockwave.com. This site was owned by Macromedia but they used Kantrowitz 3D groove, and his Real Pool to expand their horizons into the entertainment sector. The entertainment sites soon where no longer in the limelight and investors started dropping. A few examples of this depression are last May Digital Entertainment Network shut down after spending $67 million, and Pop.com a site owned by Steven Spielberg, Jeffrey Katzenberg, David Geefen, and Ron Howard pulled the plug before it even launched. Eventually things changed as Mike Edmunds, executive vice president of content development for Shockwave put it. "But games are inherently interactive, and interactivity is what people expect when they use the Web." Now that online games have achieved a powerful
advertising status on the web developers are kicking themselves for not
taking advantage earlier. And The Groove Alliance formally 3D groove only
provides the technology to developers, and then serves as a distributor
of the game throughout their partnerships and, licensing partners. Showing
us that the online entertainment industry is a booming success. This is
true because The Groove Alliance started off being only a video game design
firm and now they are the firm which gives designers the break they are
hoping for. They are able to do this by sponsorships, and pay-to-play;
which are their only revenue sources. The Groove Alliance gives the designers
the 3D software to make the game and in return Groove gets part of the
games revenue from every site that picks the game up as well as any retail
versions. The Groove also has a sponsorship deal with Jack
Daniel's. The whiskey's logo appears right in the middle of the pool
table so it is seen 60 million times a month. The last revenue stream is
the pay-to-play, which is when you offer a free version to play but in
order to get more features on the game you must either pay every time you
play the game or you have to buy the game. The Groove Alliance is planning
on coming out with 20 more games this year and according to the Media Metrix
500, 316 of the sites are potential customers.
5 Forces Framework
ConclusionThis article has really shown me how a small little company like 3D groove can expand in such a short period of time into the dominating force that they are. I think it is so interesting how people can do so much with computers and with the Internet. I know I will never have the knowledge needed to create an online business, but it really intrigues me when other people do. |
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