8/6/2019 Goebel Week8 Power Point Presentation

1/14

Instant Gaming, No More WaitingStreaming Video Game Rentals

8/6/2019 Goebel Week8 Power Point Presentation

2/14

Introduction

Current rental process:

Is outdated

Costs too much Creates limitations

Proposed rental process:

Is cutting-edge

Costs less

Overcomes limitations2

8/6/2019 Goebel Week8 Power Point Presentation

3/14

Current Problems & Limitations

Ratio of Customers to Copies

5 customers per copy

Rentals Compared to Returns

14% of rentals go unreturned each

month

Amount of Broken Game Discs

2% of rentals are returned broken3

8/6/2019 Goebel Week8 Power Point Presentation

4/14

Main Cause of Problems

Physical Game Discs

4

8/6/2019 Goebel Week8 Power Point Presentation

5/14

Proposed Solution

Streaming Video Game Rentals

Benefits:

Less expensive

Faster rental process

Increase customer base

Increase customer satisfaction

Eliminate the use of game discs

Drawbacks:

High startup costs

Depends on approval of game owners 5

8/6/2019 Goebel Week8 Power Point Presentation

6/14

Implementing Solution

Obtain Managed Servers

Outsource management of servers to

reduce costs

Hire CDN Service Provider

High enough bandwidth obtainable

through use of a CDN

Reach Agreements w/ Game Owners

Royalties paid for each rental streamed6

8/6/2019 Goebel Week8 Power Point Presentation

7/14

Server Management & CDN

Level 3 Communications

Offers:

Top-notch server management

Off-site server storage/security

Highly trained IT-Technicians

Enterprise CDN service solutions

Received Awards From:

CIO.com

Computerworld magazine

InformationWeek magazine 7

8/6/2019 Goebel Week8 Power Point Presentation

8/14

Technical Details

1. Game Images are Stored On Servers

2. Customer is Connected to Closest

Server3. Customer Chooses Game to Rent

4. Server Mounts Virtual Image of

Game5. Server Streams Game Data to

Customers Console

6. Customers Console Computes Data8

8/6/2019 Goebel Week8 Power Point Presentation

9/14

CDN Network Diagram

*Basic Example of CDN service9

8/6/2019 Goebel Week8 Power Point Presentation

10/14

Estimated Timeline

Start Date Event(s) End Date

4/25/10 -Begin Programming of Applications

-Meet with Level 3 Communications

-Meet with Game Owners

5/15/10

5/20/10 -Setup Servers Needed for Beta-Testing 6/10/106/15/10 -Agreements Reached with Game Owners ---------

7/10/10 -Begin Phase 1 of Beta-Testing 8/10/10

8/15/10 -Begin Phase 2 of Beta-Testing 10/15/10

10/25/10 -Begin Phase 3 of Beta-Testing 1/15/10

1/20/10 -Setup Remaining Servers 3/20/10

4/01/10 -Release of System Updates for Consoles

-Start of Streaming Service Worldwide

---------

10

8/6/2019 Goebel Week8 Power Point Presentation

11/14

Estimated Costs (Yearly)

$30,000 - New Release Purchases

600 games $50 per game

$840,000 - Level 3s Services

$600,000 for server related fees

$240,000 for CDN related fees

$3,000,000 - Royalties

12,000,000 rentals 25 per rental11

8/6/2019 Goebel Week8 Power Point Presentation

12/14

Current Costs vs. Proposed Costs

0

2

4

6

8

10

12

14

Yearly Operating Costs in $Millions

Current

Proposed

12

8/6/2019 Goebel Week8 Power Point Presentation

13/14

Potential Obstacles

Reaching Agreements with Game

Owners

Hardware Failure & Data Loss

13

8/6/2019 Goebel Week8 Power Point Presentation

14/14

Conclusion

Streaming Game Rentals:

Will be faster

Will save money Will overcome limitations

Will increase customer base

Will improve customer satisfaction

14