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Instant Gaming, No More WaitingStreaming Video Game Rentals
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Introduction
Current rental process:
Is outdated
Costs too much Creates limitations
Proposed rental process:
Is cutting-edge
Costs less
Overcomes limitations2
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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
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Main Cause of Problems
Physical Game Discs
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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
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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
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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
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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
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CDN Network Diagram
*Basic Example of CDN service9
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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
---------
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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
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Current Costs vs. Proposed Costs
0
2
4
6
8
10
12
14
Yearly Operating Costs in $Millions
Current
Proposed
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Potential Obstacles
Reaching Agreements with Game
Owners
Hardware Failure & Data Loss
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Conclusion
Streaming Game Rentals:
Will be faster
Will save money Will overcome limitations
Will increase customer base
Will improve customer satisfaction
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