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Cover of 'Changing the game'

Changing the game

David Edery, Ethan Mollick

Revolutionizing business through video games

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Description

The video game industry is booming, outpacing even Hollywood and the music industry in revenue. It's not just about entertainment anymore; businesses are leveraging games for growth, customer engagement, and employee recruitment. As next-gen games emerge, they're set to drive innovation and harness organizational brainpower.

Despite their potential, many companies have yet to tap into the power of games. The future of corporate landscapes could be heavily influenced by games, from sales and recruitment to daily operations. Games are already transforming work and play, offering unique opportunities for businesses, governments, and non-profits to achieve their goals. Are you game? - David Edery and Ethan Mollick.

Table of contents

01

Rev­o­lu­tion­ize customer interaction

Increasingly, gaming is revolutionizing customer engagement with established businesses. Companies are leveraging games to forge unique and imaginative connections with their clientele. Current strategies include embedding advertisements within games, creating branded games (advergames), and utilizing virtual worlds. These approaches effectively merge the real with the imagined in the consumer's mind, showcasing the growing sophistication of companies in deploying games for brand awareness.

The video game sector is relatively nascent, originating from mainframe computer programmers in the 1950s who often developed games covertly. Video games gained popularity as arcade games in the late '70s and '80s, with classics like Pac-Man and Space Invaders appearing in public venues. The rise of arcade games led to home gaming on PCs and consoles, starting with the Atari 2600 and evolving to include major platforms like Microsoft's Xbox, Nintendo's Wii, and Sony's PlayStation. Today, consoles are the industry's focal point, though PC and mobile games remain popular, and new platforms continue to emerge, such as in-flight entertainment systems and advanced set-top boxes. The industry has released over 21,000 commercial games, with countless free online games also available. Game genres range from puzzles and racing to strategy, with development costs for popular titles reaching tens of millions of dollars. The gaming audience is diverse, with a significant portion over 35 and more than half being female. Solitaire, included in Windows, is perhaps the most recognized game, with billions of hours dedicated to it annually. Games can be categorized by casual versus enthusiast and by single-player versus multiplayer dimensions. Casual games are quick to learn and play, while enthusiast games require extensive time investment. Multiplayer games challenge the stereotype of solitary gaming by enabling competition and cooperation, enhancing their appeal.

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02

Boost the or­ga­ni­za­tion s at­trac­tive­ness to existing and prospective employees

Games are not just for entertainment; they serve as powerful tools in various professional contexts, including education, recruitment, training, and motivation, ultimately boosting employee productivity. Their inherent ability to impart knowledge and skills in an engaging manner means that individuals often learn without being consciously aware of it. When games are employed for training purposes, they are perceived by employees as enjoyable activities rather than formal education, which can significantly enhance the effectiveness of the training. This creates a beneficial scenario for organizations, as employees not only enjoy the games but also acquire valuable skills, while the organization benefits from improved performance. Training designed in a game-like format can be so engaging that employees may choose to participate even outside of work hours. Video games, in particular, are adept at teaching skills such as teamwork, which is essential for the success of innovative projects across various industries. However, fostering teamwork and effective communication can be challenging due to organizational barriers. Video games offer a compelling solution to these challenges. For example, Harvard Business School has developed a game called Everest, which divides students into teams tasked with climbing the world's tallest mountain and overcoming various challenges along the way, thereby teaching leadership principles in an immersive manner.

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03

Enhance business operations and other general business functions

Games possess the unique ability to captivate and inspire individuals, often leading players to devote more energy to their gaming pursuits than their professional responsibilities. This intriguing phenomenon should be recognized by corporations, who stand to gain from integrating concepts derived from gaming into their business operations. The future holds immense potential for organizations that learn from the triumphs of the gaming community and discover methods to utilize games to engage innovators and thinkers. It might appear contradictory, but the vigor required to thrive in the twenty-first-century economy could feasibly be produced by introducing productivity-enhancing games in the workplace. The notion of games and productivity may seem paradoxical, but if work can be structured like a game or at least incorporate game principles to make work more enjoyable, the outcomes can be remarkable. Games typically feature clear objectives, explicit challenges, and swift, unequivocal feedback. Managers should observe this and implement it in their workplaces. For instance, instead of setting an ambiguous goal like "please customers," they could be more precise, such as "please a minimum of 20 customers daily." Real-time customer feedback could supplant biannual career progress evaluations, and amicable competition among employees could significantly boost workplace motivation.

Practical examples of this concept include Microsoft's strategy for debugging its forthcoming Windows Vista operating system software. The company devised a game where employees garnered points for each issue they identified and reported, with weekly rewards for the highest scorers. This approach increased participation in the debugging program fourfold compared to previous product launches. Other companies have employed similar reward-based productivity games, and some have even designed their work productivity software with game-like interfaces. For example, Visitorville is a web traffic monitoring application that transforms your website into a virtual city, making traffic management more efficient than traditional site performance dashboards. The more work can resemble play, the better the outcomes. However, it's vital to ensure that winning is enjoyable, rewards are recognition-based, the game is uniform across the organization, everyone has an opportunity to win, and the rules are straightforward.

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