D7.1 - Summary Report of Business Models

This report provides a comparative analysis of the existing and emergent Business models currently employed in the Entertainment digital game industry (referred to in this report as the Leisure industry) and the “serious”, or in the context of the RAGE project and this report, the Applied Games industry. In conjunction with the accompanying WP 7.2 report providing a value chain analysis this report will inform the development of a business mode or models for the proposed RAGE ecosystem.

Amplifying applied game development and uptake

The established (digital) leisure game industry is historically one dominated by large international hardware vendors (e.g. Sony, Microsoft and Nintendo), major publishers and supported by a complex network of development studios, distributors and retailers. New modes of digital distribution and development practice are challenging this business model and the leisure games industry landscape is one experiencing rapid change. The established (digital) leisure games industry, at least anecdotally, appears reluctant to participate actively in the applied games sector (Stewart et al., 2013). There are a number of potential explanations as to why this may indeed be the case including ; A concentration on large-scale consolidation of their (proprietary) platforms, content, entertainment brand and credibility which arguably could be weakened by association with the conflicting notion of purposefulness (in applied games) in market niches without clear business models or quantifiable returns on investment. In contrast, the applied games industry exhibits the characteristics of an emerging, immature industry namely: weak interconnectedness, limited knowledge exchange, an absence of harmonising standards, limited specialisations, limited division of labour and arguably insufficient evidence of the products efficacies (Stewart et al., 2013; Garcia Sanchez, 2013) and could, arguably, be characterised as a dysfunctional market. To test these assertions the Realising an Applied Gaming Ecosystem (RAGE) project will develop a number of self contained gaming assets to be actively employed in the creation of a number of applied games to be implemented and evaluated as regional pilots across a variety of European educational, training and vocational contexts. RAGE is a European Commission Horizon 2020 project with twenty (pan European) partners from industry, research and education with the aim of developing, transforming and enriching advanced technologies from the leisure games industry into self-contained gaming assets (i.e. solutions showing economic value potential) that could support a variety of stakeholders including teachers, students, and, significantly, game studios interested in developing applied games. RAGE will provide these assets together with a large quantity of high-quality knowledge resources through a self-sustainable Ecosystem, a social space that connects research, the gaming industries, intermediaries, education providers, policy makers and end-users in order to stimulate the development and application of applied games in educational, training and vocational contexts. The authors identify barriers (real and perceived) and opportunities facing stakeholders in engaging, exploring new emergent business models ,developing, establishing and sustaining an applied gaming eco system in Europe.

D9.5 – Exploitation Plan (version 1 of 3)

The RAGE Exploitation Plan is a living document, to be upgraded along the project lifecycle, supporting RAGE partners in defining how the results of the RAGE RIA will be used both in commercial and non-comercial settings. The Exploitation Plan covers the entire process from the definition of the business case for the RAGE Ecosystem to the creation of the sustainability conditions for its real-world operation beyond the H2020 project co-funding period. The Exploitation Plan will be published in three incremental versions, due at months 18, 36 and 42 of the project lifetime. This early stage version 1 of 3 is mainly devoted to: i. Setting-up the structure and the initial building blocks to be populated and completed in the future editions of the Exploitation Plan and to ii. providing additional guidance for market intelligence gathering, business modelling definition and validation, outreach and industry engagement and ultimately providing insights for the development, validation and evaluation of RAGE results across the project´s workplan execution. These tasks will in turn render suitable inputs to enhance the two future editions of the Exploitation Plan.