Month: February 2011

The Internet has become an irreplaceable part of our lives.   It is a platform for people to communicate with one another, share ideas and thoughts and to expand their knowledge and develop new interests.  It is also a common destination for entrepreneurs looking to start up a business.

While the impact the internet has made on us and on society has long been discussed, some of the most wonderful things made possible by the Internet have been overlooked.   One example is professional competitive gaming (otherwise known as e-sports).

A large portion of the E Sport industry is based on real time strategy games.  At any point in time, Battle.net (Blizzard’s gaming network for their popular Warcraft and Starcraft titles) has an average of 1,000,000 users playing.   This is a significant amount, considering that gamers playing these titles represent only a fraction of gamers worldwide (albeit Blizzard titles are generally always amongst the most popular and most played).

What is the secret to Blizzard’s success?  Blizzard has a great understanding of what gamers look for, and have implemented their strategy perfectly.  Apart from the excellent graphics, countless units, characters, items, buildings, strategies, and abilities, Blizzard is able to keep players hooked to their games.  I am one of those players addicted to Starcraft II.

Blizzard.net works like this:  the player logs on, presses “search for match” and shortly after, is presented an opponent who is similar in skill level.  After each game, ranking points will be gained (or lost) depending on the results.  These points accumulate and put players in “leagues” that are appropriate for their skill level.

Apart from the immense fun provided by the game, there are other incentives for players to want to play games like Starcraft II.  Many tournaments and leagues, with huge fan followings and cash prizes are offered around the world.   Major League Gaming dominates professional gaming in the U.S., while in South Korea, teams backed by sponsors actually have contracts signed with their players.  Top players in South Korea are essentially celebrities.

Players realize that only the best of the best have a chance at this fame and glory.   Yet using technology such as Youtube and live streaming sites , lesser players are given ample opportunity to improve their skills.  In addition, tournaments aimed towards players of all skill levels are being sponsored by companies looking to do a little cheap advertising.

With technology further advancing, I think that professional gaming will continue to grow, that more companies will take advantage of  esports and sponsor league, tournaments and teams, and that the esports fan base will continue to grow.

Here is a replay of one of the most exciting games ever played in Starcraft 2:

The Nintendo 3DS is slated to release in North America on March 27^th, with an initial retail price of $249.99 USD.   Compared with older generation Nintendo game consoles, which simply sold themselves due to Nintendo’s iconic characters and games, the 3DS marks the beginning of a new generation of 3D gaming.

The Nintendo 3DS offers the following features:

• 3D gaming.  By using a process called autostereoscopy, the 3DS will allow gamers to play in 3D without the need of special glasses.  Though the concept of using 3D entertainment is ancient, this will be the first time that a portable gaming console offers glasses-free 3D capabilities, marking the beginning of a new generation of gaming.
• 3D pictures can be taken with built-in 3D cameras.
• Compatibility with Nintendo DS and DSi games.

Here is a look at the ever-important marketing mix of the new 3DS:

• Price – With the Sony Next Generation Portable scheduled to release in the fourth quarter of 2011, the 3DS would, for the next few months, be leading the portable consoles market.   The North American retail price of 249.99 USD would be, on average, 100 dollars more than the current consoles, such as the PSP and Nintendo’s own DS.  Nintendo believes that it can attract gamers with its new features.
• Product – As explained above, the 3DS is a new, innovative approach to portable gaming that will be leading this particular market for the next few months.  It seems as though Nintendo is broadening their market; the 3DS has a powerful processer that would be able to produce graphics like the Xbox 360 and the PS3.  This addresses the needs of hardcore gamers.
• Place – Nintendo plans to ship 4 million units worldwide by the end of March, with 1.5 million in Japan.  Just as soon as pre-orders were available in Japanese retailers, they came to an end.  Nintendo is careful to maintain the exclusivity of these consoles while selling as many units as possible.
• Promotion – The 3DS was initially revealed in June 2010.  Since then, Nintendo has had conferences and events promoting the 3DS in cities such as Amsterdam, New York City, and London.

One possible concern, however, is that playing for extended periods of time could be damaging to your vision, and perhaps cause nausea and dizziness.  Nintendo has already publicly stated that children under 6 should not play the 3DS.

In the end, how successful will the 3DS be?  Knowing Nintendo, it will probably be as good as anything that comes out in the new generation of gaming.

Here is a promotional video of the 3DS:

Over the past decade, the NHL has experienced enormous growth in revenue and profits.  While Gary Bettman, the league’s commissioner, has received much criticism from fans, there is no doubt that the league, as a business, has made great strides during his tenure.

Bettman was initially appointed as the NHL’s first commissioner in 1993 to achieve several major objectives. This included resolving the labour unrest present at the time.  To make things short, the league had two lockouts due to labour disagreements, but ultimately, owners and business-minded people alike praised Bettman for creating a reduction in salaries and imposing a salary cap, helping small-market teams remain competitive.

Another major objective for Bettman was to expand to Southern U.S.  To start the 1993 season, there were 24 teams, 8 of them Canadian, and 16 American.  As of now, there are now 30 teams, 6 Canadian and 24 American. Although the relocation of Canadian teams has angered many Canadian fans, Bettman’s attempt to expand and market to the U.S. has had great contributions to the league and to the sport.

I will now analyze the league’s marketing strategy and success using the marketing mix.

Price:  Ticket prices for NHL games are set by each individual team.  The Toronto Maple Leafs for example, a team that has not seen playoff success in seasons, has the highest average ticket price at $114.  On the other hand, the Detroit Red Wings, a team known to succeed year after year, has an average ticket price of $46 (no doubt, the recession has had lasting impact on the economic state of Motor City).  No doubt, teams set prices in consideration of their fanbase and supply and demand.

Product:  The NHL’s expansion to the U.S. has greatly improved the product.  More and more American kids are taking up hockey rather than the predominant baseball, basketball, or football.  The American National Men’s Hockey team has vastly improved:  with home-grown stars like Patrick Kane and Ryan Kesler taking the lead.  It also doesn’t hurt to have phenoms like Crosby, Ovechkin, and Stamkos playing in U.S. markets to promote the sport, and be plastered in every form of media you see.

Place:  Considerable thought is placed before choosing a market expansion, but there seems to be one trend:  If the team performs well, attendance will rise, and if it doesn’t, buildings will become empty.  Unless you are the Toronto Maple Leafs.  Even the Canucks had poor attendance in the 90’s when they were a mediocre team.

Promotions:  For the most part, teams have their own promotions.  Teams like the Canucks don’t have to do much advertising; fans purchase jerseys and that alone greatly helps promote the team.  Teams like the Phoenix Coyotes have given away tickets with the purchase of a particular brand of Vodka at a supermarket.  Other teams offer free food, free parking with the purchase of tickets or when a player achieves a certain feat (curly fries whenever a Detroit player scores a hattrick).  Even some successful teams like the Sharks and the Bruins resort to creative, funny ads.

It is evident that the NHL has chosen its marketing mix carefully.  I would like to end on this note and show some of the funny, creative, Sharks and Bruins ads.