Brian Grey Blog

The buzz about Zynga’s current revenue run rate or Playfish’s potential (uh, likely?) sale to EA overshadows the forces that are lining up to change gaming as we know it.

Specifically, the forces that are rapidly changing the biz:

Force 1: Production costs – measured in both dollars and time to market – are falling fast. The hits driven nature of the business is being replaced by an agile product development model, whether the big budget producers like it or not.

Force 2: The gaming OS is moving from client to server – and ultimately to the cloud like all computing. Over time this will erode the console-software cycle that has driven the video gaming business.

Force 3: A third screen – the mobile smart phone – is emerging as a major consumption point for games. The TV screen (via online access of course) will still be a must have experience, but mobile will continue to broaden the reach of gaming.

Force 4: Consumer application of what we think of as “games” will expand well beyond the domain of “gamers”. Areas from brain training to education will utilize games built up on the three forces above to enhance how they engage consumers.