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And if you are wondering where the relevance to games comes in:
Xbox Live, OnLive: Products becoming services
Figureprints, (and one could argue Guitar Hero): Services becoming products.
And to his point about Thingfrastructure, and products and services that are resiliant and self sustaining, this is a challenge games are going through now. Games are increasingly being developed as services, but sold and marketed as products - as things.
When someone "buys" a downloadable game, do they always understand that they've bought *access* to it through a service, and that should that service go away, so might their game? For a parent buying a Webkinz stuffed animal with a coded tag, do they understand that they've bought a limited-time access to a service?
These are challenges we'll have to face going forward. The innovation is good, but its important that people aren't mislead along they way.
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