Market Analysis for Online Gaming - Term Paper Example

MARKET ANALYSIS FOR ONLINE GAMING INTRODUCTION Communication is a vital part of life. Words are not enough to describe and enumerate the benefits that we can derive from communicating. The forms, the kinds, and/or the classifications of communication are continuously reinventing itself to comply with the needs of the society. Meanwhile, the coming of the new millennium has brought new and more challenging technologies. Different forms of communications such as Internet, mobile phones and SMS, Internet chat or MIRCs, and e-groups penetrated majority of the countries around the world. Communication through computer – generated networks became very visible. This enables any individual to talk with someone you cannot see in a face-to-face basis, to buy something and have it delivered without having to go out of your home, to research for any information with just one click on the Internet, or to meet new friends. Aside from all the above stated online community, there is one more which is becoming highly prominent and this is the online gaming community. As it is apparent that online communities currently existing is becoming very useful for everyone, there is a great need to understand the benefits that one person can derive if he/she is to build and initiate an online community, more specifically an online gaming community. Generally, this paper is aimed at studying the different marketing concepts related to networks and communications, as well s the establishment of an online gaming community. Specifically, this study is aimed at: 1. Identifying the advantages and disadvantages that an online gaming community can offer, plus the different aspects to consider in establishing such community 2. Determining whether an online gaming community is really feasible and at the same time a good channel of communication for online gaming enthusiasts. 3. Identifying certain issues and aspects that needs to be addressed in order to come up and eventually maintain a successful online gaming community REVIEW OF RELATED LITERATURE Networks Defined Networks, or networking is the process of formulating linkages to all other subsets or groups. There are different kinds of networks, among which are social networks, communication networks, computer mediated networks and hyperlinks networks and the academic networks for students and academicians. A. Social Networks A social network, as defined by sociology is the clear manifestation of the kind of social organization therein. A Social network is strongly capable of making different social forces present and visible to human eyes. Though, social networks may seem simple and very basic, they are undeniably capable of describing and depicting relationships and interactions hence, providing a micro-foundation of sociology (Cook, 2001). In addition, social interaction could successfully bring about common understanding. Seemingly, there are invisible nodes connecting individuals as they inform and influence others. The distribution of linkages between social interactions is represented by the cultural differences which made it hard to transfer and/or transmit ideas and attitudes. While in small-scale contexts, symbolic interactionism tries to consider the experience of individuals and groups (Cook, 2001). All in all, with people’s continuous interaction and sharing of information, a group of social networks has formed. Group of individuals such as employees talking to their co-worker, students to their classmates or instructors, or community members to their kind usually engaged in different discussions, recommending best practices or sharing common interests. In this process, relationships in between are formed – and this does not necessarily pertains to those who improves their productivity in doing so, but who improve their being as a whole (http://www.google.com.ph/search?q=cache:IebR0uaDeskJ:www.verity.com/pdf/white_papers/MK0392b_SocialNetworks_WP.pdf+social+networks+-+defined&hl=en&ie=UTF-8, 2004). The Upsurge of Different Social Networks Social networks of one individual can grow up to the nth level. This is through her ability to relate and communicate with other people. People’s ability to jump over traditional boundaries, family belongingness, ethnicity, geography, or interest resulted to a much wider set of relationships and networks. In this process, each of these scopes has exploded to include many different forms. Furthermore, as the number of dimensions people have achieved and developed, presents an increasing involvedness to and from the people around the dimension he or she has created. This is because those people whose networks has strived crossing multiple and/ or numerous boundaries are the best examples of mediators who can serve as the focal agents for diffusion, and who can successfully transmit ideas and practices from one group, one world, one society, to another. And this can ultimately result for an innovation to takes place. With more and more people who can cross over different boundaries, who can relate and reach more to different persona, who can bring different worlds to work in one common thinking, this will surely result for the betterment not only of the individuals involved, but the whole society as well (http://www.google.com.ph/search?q=cache:AGXQjZP2TssJ:akseli.tekes.fi/Resource.phx/tivi/usix/kevatpaiva2002.htx.liite.liitteet.0.doc+social+networks+-+defined&hl=en&ie=UTF-8, 2002). People tend to act on multiple roles, do numerous activities on a single time, and communicate to as many people as he can on a single day. And there is no strict rules requiring compliance to do. Needless to say, to acquire larger networks does not mean having to use more time, money, effort and time management. It just depends on how people can effectively juggle himself into making such relationship from one network to another. People play multiple roles and negotiate multiple different identities, each tied to a particular network or a particular context – and there is really no problem with that, as long as one is skilled enough into switching roles or identities, not forgetting the main reason for maintaining such relationship for a certain group or individual (http://www.google.com.ph/search?q=cache:AGXQjZP2TssJ:akseli.tekes.fi/Resource.phx/tivi/usix/kevatpaiva2002.htx.liite.liitteet.0.doc+social+networks+-+defined&hl=en&ie=UTF-8, 2002). While social networking offers people – young and old - to establish portfolios of relationships across geographies, traditional and personality boundaries, still a major part of the daily activities were consumed in personally interacting with people – may it be to their friends, peers, subordinates, bosses, family, classmates or teachers. As a matter of fact, most of the real life scenarios in interacting with people represents real essence of life interactions (http://www.google.com.ph/search?q=cache:AGXQjZP2TssJ:akseli.tekes.fi/Resource.phx/tivi/usix/kevatpaiva2002.htx.liite.liitteet.0.doc+social+networks+-+defined&hl=en&ie=UTF-8, 2002. The Role Social Networks Play From the IFTF report, most of the people now are relying on their social networks from functioning to their day to day activities and duties. Best examples for this are today’s manner of doing one’s task by a member of your network that was simply done by other traditional institutions before. At the same time, with the aid of increasing social networks, unlike before, people now tend to work under no pressure bounded by a single organization. It is just like saying that people became more loyal to their self-constructed networks rather than to their single organization. With wider and prolonged networks, people can work and leap between teams, projects, groups, etc with the pursuit of enhancing personal and professional careers or interests. Thus it becomes not a surprise if you see people becoming more resourceful and wise in putting up more efforts and energy and time into building different portfolios making up different foundation of networks. Whatever the human do with him/herself, what ever actions he/she may take, and whatever changes may take place is a depiction of a possibility for a relationship to take place and Every change, every move, every transition is an opportunity to build relationships thus adding venue for his/her network (http://www.google.com.ph/search?q=cache:AGXQjZP2TssJ:akseli.tekes.fi/Resource.phx/tivi/usix/kevatpaiva2002.htx.liite.liitteet.0.doc+social+networks+-+defined&hl=en&ie=UTF-8, 2002). MARKET ANALYSIS Computer Mediated Networks and Hyperlink Networks Computer mediated and hyperlink networks are very much handy today specifically to schools or big business establishments. These networks are used to link and connect computers, within a single site (local area network, or LAN) or via telecommunications systems connecting geographically dispersed sites (wide area network, or WAN). Such networks may provide users with access to shared facilities (files, software, databases, printers, fax machines), and may also provide access to communications (email and conferencing). Networks can be linked through gateways to other networks. Where this uses the common protocol and addressing system tcp/ip, an internet is created (Sturges, 1998). One example for this link is the one we commonly called Intranet. These are very common in big companies where they can easily connect and get files from one computer as long as that folder is being “shared”. It is also easier to transfer files and documents using this link because there is no need to save a certain file from floppy disks or CDs just to have a copy of that, because you can directly view the folder you wanted to access from this computer mediated networks and hyperlink networks. Hackers, viruses, and gatecrashers can be prevented from accessing to confidential files by using passwords or passkeys to access in the file. The Internet Phenomenon Come to think of it, can you see a single country now a days, who doesn’t have any access to Internet? Internet has indeed gone from near-invisibility to near-ubiquity in little more than a year (Cerf, 1997). Most of the higher income earners business establishments today are those pertaining to computer, telecommunications and Internet industries. Even almost all of the schools, universities or colleges are offering online courses. There is almost no student – may it be a primary grader to a university or even a Master’s degree earner – who can admit that they are not dependent on computers and Internet and its functions. Internet has indeed become globally part of our every day lives. From merely buying the basic necessities in life to having to get airplane flights. It has been widely useful to the students through their continuous access to faster, easier and reliable sources of different information. It has been very significant to business-oriented individuals because of its wide range of marketing and sales strategies being offered by different web owners. It has been very useful even to the simplest member of the society for you can even sell and buy things from the Internet or get credible information regarding a certain product. Yes, Internet is very much useful to everybody, and we can safely say that one is loosing such big opportunity if he or she has not been accessing to Internet. From a study conducted on July of 1995, the estimated numbers of Internet hosts for each continent are: Table 1. Estimated Hosts Number (http://www.cwrl.utexas.edu/~tonya/309m/class/internet.html, 2004) Meanwhile, a recent survey done by Survey.Net has disclosed that out of 2974 total respondents (taken last May 23, 2004), majority of the people who accessed with the Internet are those ages ranging from 22 – 25 years old. Meanwhile, most of the respondents (26.2%) were presently enrolled in college (as to their highest degree attained) (http://www..survey.net/ip0r.html, 2003). A separate student survey revealed that 8,624,000 (98%) from the number 8.8 million four-year college students are freely accessing to the Internet spending most of their time online than to any groups (on the average of five hours each week) (http://www.student.net, 2004). And when we speak of gender who uses mostly of the functions of Internet, there was this study conducted which showed that there was a big difference on numbers between the male and female Internet users. Majority of the men (70%0 prominently uses the Internet than women. We can assume that men are more technologically inclined than women, while women are more personal and socially interactive. As for the future, it is quite risky to predict the future of something as dynamic as the Internet, and who can deny that? There are at least a dozen companies in one single area who are providing services using Internet and the number will surely continuously increase. The projections of Internet-related business could range up to $50 billion at the end of the decade. This is still small compared to the total telecommunications businesses we now have, but its rapid growth and the rich evolution of new products and services clearly suggest that the unpretentious research investments of the federal government have paid off in countless ways, not all of them are simply monetary. Furthermore, there is enough reason to believe that the Internet will transform and evolve education, businesses, government services, and personal activities in ways that are incomprehensible as for today (Cerf, 1997). b. Community Web Sites Adamic et, al. has searched and sourced out different studies prior to theirs, focusing on characterizing online interaction and measuring the effect of Internet on real life social interactions. They were able to find out that even through the most basic and simplest community website, people were able to chat, organize events, share opinions on different issues presented, share and view photographs, make announcements and even meet new friends (Adamic, et.al., 2003). E-groups, E-messaging, MIRcs are just few of the famous community websites that has been established and being patronized by many. A lot of cyber relationships started with this community websites. Even job opportunities, job applications and/or job hunting are now presented in numerous community websites. Schools and various other institutions are giving assignments and research works using community websites in the pursuit of allowing the learners to familiarize themselves with theses websites. This process eliminates tedious processes on information gathering specially on survey types, because small and expensive mails, phone calls and likes were avoided (Adamic, et.al., 2003). Emergence of Networks’ Commercial Markets As stated above, Internet has reached even the youngest of the young, or the farthest place all over the world. With this idea, marketers and business minded individuals were able to see the big business opportunities offered by the networks – hence, commercial markets for networks was born. Companies like the Cisco Systems, Proteon, and Wellfleet (now Bay Networks) and 3Com are some of the best examples of the companies who opted to manufacture and sell "routers" (the commercial equivalents of the "gateways" (Cerf, 1997). Implication to Communication and Information Networks With this vast world of Internet, many have evoked the challenge of having strict rules, regulations or guidelines for the operators and service providers. One group who proudly accepted the challenge was the members of the 5th European Ministerial Conference. On the conference they conducted at the Thessaloniki, Greece, on December 11 and 12 of 1997, they have stressed their thrust that people should all be aware of the possibility of the frequency of misuse of the functions of Internet. Likewise they instigated the idea that rules and regulations by the providers should be strictly implemented. As an added point, the said conference has pointed out that cruelty and intolerance is a manifestation of disrespect to human dignity. This conference has initiated the idea of “universal community service” (Sturges, 1998). Online Gaming Community With the advent of virtual communities, another new venture was established – this is the combination of virtual community and the role playing games (RPGs). Virtual communities are communities that exist on line or through the cyber space. Internet connections plus the computer are two of the must important and indispensable components of virtual community. People get to “see”, talk and so all other forms of communication in the virtual world (Adamic, et.al., 2003). The existence of online role playing games (RPGs) also resulted to the creation of a virtual community which is for online gamers. MMORPG stands for massively-multiplayer online role-playing game. As the name implies, this is a form of role-playing game which is done online or through the computer and an Internet connection. A large number of players from various areas play and interact with each other through their so-called ‘virtual world’. Each of the players is performing the role of a fictional character (Bartle 2003). Most MMORPG nowadays are in the form of ‘level-up’ games wherein the players could upgrade or enhance their virtual skills by reaching a certain level or conquering a certain challenge. One best example of a role-playing game, which has been created early on 2000 yet has still been widely use nowadays is the War Craft. On this game, there could be a number of players who can play, all of which can choose their own “appearance” and type of special weapons and skills. It should be noted that all of this is done in the computer, which is connected online to other networks of computers. The aim of the game is to “kill” or overpower the opposing teams. A similar RPG that followed War Craft is called Counter Strike. On this specific game, there are two opposing teams which will act as the Terrorist or the Counter-Terrorist. As the name implies, the Terrorist’s goal is to plant the bomb, take care of the hostages and kill all the Counter-Terrorists. The Counter-Terrorists, of course, is aimed at doing the exact opposite. They are to protect the terrorists from planting the bomb or diffuse it if it has been planted, save the hostages and kill all the Terorrists. Each player will have a tally of scores of how many of the opponents is he able to kill. At the same time, each team is counting for the number of winnings they have made versus the total number of rounds of each game. Other RPGs that became famous or are starting to be famous in other countries are the Red Alert series and Diablo. These games, like the first two examples, are all about killings and overpowering the opponents through brutal means. The presence of guns, ammos, life vests, bombs and other armaments are very common on these games. However, not all RPGs are like the above examples. There are also some which are not violence-related, like the RPG called “Sims.” Sims is played in a way like reliving a real human being. The person playing can choose to be a man, a woman or a child. A house can be built according to the player’s preference. The Sims character can choose to work on different types of jobs. It can be dressed up, played on, swum around, set to meet other people, allowed to get married, sent to vacations and so many more. Anything that a real human being can do can also be done in the Sims. What is good in Sims is the fact that no violence is taught to any player. It even teaches the player on how to manage the finances, do household duties and even on how to successfully establish relationship with neighbors. Sense of responsibility over the work and the studies is also enhanced. With Sims, the child and even mature individuals can learn the real values of life, if only played properly. The Addictive Components of Virtual Community and RPGs It has been noted that majority of the populations most countries, especially those from the First World Countries have access to the computers and the Internet (Adamic, et.al., 2003). Because of this, every children, and even the teenagers and adults are really prone to playing RPGs. In RPGs, there is no gender or age issue. Anybody and everybody can play the game as long as you know how to. This is one of the very reasons why there are more and more people are becoming so hooked up with this. Teenagers, adults and even some youngsters do get to play MMORPG at most of their free times, with or without their parents’ consent. Playing MMORPG may be providing positive effects to the players themselves. They get to enhance their strategic skills. They not only learn how to play the game, but they also learn how to level up or upgrade themselves (or the characters they are playing). They became aware and/or be familiar with most things which are normally shown only to some specialized forces (like the military). With the types of games most players now play, it can be easily inferred that players are indeed learning the art of war. Aside from the war-related benefits, players also benefit from the virtual communities and RPGs because they are able to interact with more people around the world. The players are able to widen their imagination. They are able to experience, even just through virtual means, how to live in a certain environment or area. Conclusion It has been stated above that online communities, like the online gaming community, act as a good means of communication and a channel for information transfer. Online communities have been successfully launched, gradually penetrated the world and now being widely used by many. Thus, same thing will be addressed when putting up an online gaming community. Advantages of Online Gaming Community Based on the case study and definition of some concepts, listed below are some major advantages and benefit that can be derived from having and becoming a member of an online gaming community. Online gaming community offers a ready communication channel It provides an accessible area where users could find friends of the same preferences and backgrounds It enhances ability to create more contacts or peers, likewise developing the ability to socially interact For those who will initiate an online academic community, there is a big possibility that he/she will be attaining a room for leadership skills improvement and personality development Marketing-Related Aspect of Online Gaming Community Indeed, there is a big market for online gaming community. Once a specific online gaming community has been established, the number of users, followers or members will surely surge quickly, thus bringing a good profit for the creator of such online gaming community. The number of internet communities currently existing plus the number of internet users all over the globe are two of the most important staring point the will prove that establishing an online gaming community can be a good business. References: Adamic, Lada, et. Al. A Social Network Caught in the Web. May 16, 2003. First Monday.. < http://www.firstmonday.dk/issues/issue8_6/adamic/> Cerf, Vinton G. Computer Networking: Global Infrastructure for the 21st Century. 1997. Clark, Caleb John. Let your Online Learning Community Grow. May 20, 1998. Maine Today. < http://www.mainetoday.com/communities/build/tipspop.shtml> Cook, James M. Social Networks: A Primer. January 6, 2001. Doyle, Mary. Women in the Internet. February 1, 1996. Duncan, Edwin. A Word About Academic Networks. Kollock, Peter and Smith, Marc. Communities in Cyberspace. London: Routledge, 1998. Papadakis, Maria C. People Can Create a Sense of Community in Cyberspace. September 2003. Sturges, Paul. 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