{"id":19058,"date":"2016-11-18T16:20:09","date_gmt":"2016-11-18T21:20:09","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/pokemon-go-bringing-video-games-into-the-real-world\/"},"modified":"2016-11-18T16:20:09","modified_gmt":"2016-11-18T21:20:09","slug":"pokemon-go-bringing-video-games-into-the-real-world","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/pokemon-go-bringing-video-games-into-the-real-world\/","title":{"rendered":"Pokemon Go: Bringing video games into the real world"},"content":{"rendered":"

Chances are you have heard of Pokemon GO?\u00a0 It is a smartphone game where the aim is to go around the world and catch virtual creatures called \u201cPokemon\u201d.\u00a0 The twist is that \u201cthe world\u201d you go around in is the real world\u2014as you move in the real world, you find new Pokemon to catch[1]<\/a>.<\/p>\n

\"dratini1\"<\/a><\/p>\n

The game is built on an innovative operating model centered on mobility and augmented reality. \u00a0First, as a mobile game it can easily send and capture data from players, rapidly distribute games to new players, and know where users are physically.\u00a0 Second, Pokemon GO\u2019s developers, Niantic, developed new technologies to take real-world maps and rapidly integrate them into the in-game world, via both crowd-sourcing and proprietary algorithms[2]<\/a>.<\/p>\n

On top of this operating model, Niantic overlaid a freemium business model, offering the game free to players but upselling items that enabled you to find more Pokemon (\u201clures\u201d) and consumables needed to capture Pokemon (\u201cpokeballs\u201d)[3]<\/a>.<\/p>\n

\"pokemon-go-microtransactions-store-screenshot-3-01\"<\/a><\/p>\n

Bought together, these operating and business elements created dramatic results:<\/p>\n

Rapid growth
\n<\/em><\/strong>Pokemon GO has grown quickly.\u00a0 By leveraging both smartphone-based distribution and social media, the app had 130 million downloads in its first month[4]<\/a>, more than four times faster than the previous record-holder[5]<\/a>.\u00a0 It hit 500 million downloads by its second month[6]<\/a>.<\/p>\n

Rapid advertiser reaction
\n<\/em><\/strong>The novel use of augmented reality unlocked an entire new channel for marketing for thousands of businesses worldwide.\u00a0 After only a few days, local bars and cafes spent millions of dollars buying \u201clures\u201d to attract more Pokemon to their businesses.\u00a0 Cities began selling themselves to tourists based on the concentration of Pokemon locations they had.\u00a0 Guided tours sprung up as entrepreneurs led tourists around cities to hunt rare Pokemon[7]<\/a>.<\/p>\n

New vulnerabilities
\n<\/em><\/strong>One new area of weakness is the many ways the game can fail.\u00a0 Pokemon GO deals with massive cyberattacks from hacker groups, including a recent distributed denial-of-service attack in Europe[8]<\/a>.\u00a0 Even without attacks, the game has experienced repeated server failures over time[9]<\/a>.\u00a0 The distraction of Pokemon GO in the real world has also led to disasters.\u00a0 Numerous drivers crash their cars because they are playing Pokemon GO while driving[10]<\/a>.\u00a0 Criminals have used \u201clures\u201d to attract Pokemon GO players to remote locations with the promise of Pokemon, only to rob them at arrival[11]<\/a>.\u00a0 A driver killed two pedestrians in Japan as he played Pokemon GO while driving[12]<\/a>.<\/p>\n

The way forward
\n<\/strong>What does the game go from here?\u00a0 Niantic is already working to make the game more fun with new features.\u00a0 However, I believe there is a broader opportunity to leverage the operating model.\u00a0 For example, Niantic can leverage its backend work in augmented reality and easily extend into new games around new franchises like Harry Potter or the Disney universe.\u00a0 In addition, Niantic is likely under-monetizing its base today.\u00a0 With its vast troves of location and contact information[13]<\/a>, it can more directly extend into location-based advertising and upsell its customers into new games and tie-ins (maybe Pokemon plushies?).<\/p>\n

More generally, the underlying augmented reality technology can greatly improve non-game apps.\u00a0 Whether it is enabling fitness (Gamifying workouts?\u00a0 Live posture correction?) or improving education (information on the world around you, delivered in real-time), the possibilities are endless.<\/p>\n

 <\/p>\n

Word count: 844 words<\/p>\n

 <\/p>\n

Sources:<\/strong><\/p>\n

[1]<\/a> Wingfield, Nick and Mike Isaac.\u00a0 \u201cPok\u00e9mon Go Brings Augmented Reality to a Mass Audience.
\nThe New York Times, July 12, 2016.\u00a0 [http:\/\/www.nytimes.com\/2016\/07\/12\/technology\/pokemon-go-brings-augmented-reality-to-a-mass-audience.html].\u00a0 Accessed November 18, 2016.<\/p>\n

[2]<\/a> Goel, Vindu.\u00a0 \u201cIngress Has the World as Its Game Board.\u201d\u00a0 The New York Times, June 9, 2016.\u00a0 [http:\/\/www.nytimes.com\/2016\/06\/09\/technology\/ingress-has-the-world-as-its-game-board.html].\u00a0 Accessed November 18, 2016.<\/p>\n

[3]<\/a> Dayen, David.\u00a0 \u201cThe Scary Way Pok\u00e9mon Go Is Making Money Off You.\u201d\u00a0 The Fiscal Times, July 14, 2016.\u00a0 \u00a0[http:\/\/www.thefiscaltimes.com\/Columns\/2016\/07\/14\/Scary-Way-Pok-mon-Go-Making-Money-You].\u00a0 Accessed November 18, 2016.<\/p>\n

[4]<\/a> Swatman, Rachel.\u00a0 \u201cPok\u00e9mon Go catches five new world records.\u201d\u00a0 Guinness World Records, August 10, 2016.\u00a0 [http:\/\/www.guinnessworldrecords.com\/news\/2016\/8\/pokemon-go-catches-five-world-records-439327].\u00a0 Accessed November 18, 2016.<\/p>\n

[5]<\/a> \u201cTake-Two Interactive Software, Inc. Reports Strong Results for Fiscal Second Quarter 2014.\u201d\u00a0 Take-Two Interactive, October 29, 2013.\u00a0 [http:\/\/ir.take2games.com\/phoenix.zhtml?c=86428&p=irol-newsArticle&ID=1869835&highlight=].\u00a0 Accessed November 18, 2016.<\/p>\n

[6]<\/a> \u201cPok\u00e9mon GO Exceeds 500 Million Downloads Worldwide.\u201d\u00a0 The Pokemon Company and Niantic, Inc.\u00a0 September 7, 2016. \u00a0[http:\/\/www.businesswire.com\/news\/home\/20160907006800\/en\/Pok%C3%A9mon-Exceeds-500-Million-Downloads-Worldwide].\u00a0 Accessed November 18, 2016.<\/p>\n

[7]<\/a> J.J.C. \u201cThe travel industry has been quick to jump on the Pok\u00e9mon Go bandwagon.\u201d\u00a0 The Economist, August 20, 2016. \u00a0[http:\/\/www.economist.com\/blogs\/gulliver\/2016\/08\/game].\u00a0 Accessed November 18, 2016.<\/p>\n

[8]<\/a> T.C. \u201cHow Pok\u00e9mon Go was attacked.\u201d\u00a0 The Economist, July 21, 2016.\u00a0 [http:\/\/www.economist.com\/blogs\/economist-explains\/2016\/07\/economist-explains-18].\u00a0 Accessed November 18, 2016.<\/p>\n

[9]<\/a> Moritsugu, Ken, Satoshi Sugiyama and Sophie Curtis.\u00a0 \u201cIs Pokemon Go down? Servers crash as wildly popular Nintendo game goes live in Japan.\u201d\u00a0 Mirror, July 22, 2016.\u00a0 [http:\/\/www.mirror.co.uk\/tech\/pokemon-go-down-nintendos-servers-8470182].\u00a0 Accessed November 18, 2016.<\/p>\n

[10]<\/a> \u201cPok\u00e9mon Go player crashes car into school while playing game.\u201d\u00a0 The Guardian, July 28, 2016. [https:\/\/www.theguardian.com\/australia-news\/2016\/jul\/29\/pokemon-go-player-crashes-car-into-school-while-playing-game].\u00a0 Accessed November 18, 2016.<\/p>\n

[11]<\/a> Rosenbaum, Sophia.\u00a0 \u201cDeath and crime in Pok\u00e9mon Go.\u201d\u00a0 The New York Post, July 10, 2016. [http:\/\/nypost.com\/2016\/07\/10\/pokemon-go-is-getting-creepy\/].\u00a0 Accessed November 18, 2016.<\/p>\n

[12]<\/a> Abrams, Abigail.\u00a0 \u201cDriver Playing Pok\u00e9mon Go Kills Pedestrian In Japan.\u201d\u00a0 TIME Magazine, August 25, 2016.\u00a0 [http:\/\/time.com\/4465882\/pokemon-go-driver-kills-pedestrian\/].\u00a0 Accessed November 18, 2016.<\/p>\n

[13]<\/a> Dayen, David.\u00a0 \u201cThe Scary Way Pok\u00e9mon Go Is Making Money Off You.\u201d\u00a0 The Fiscal Times, July 14, 2016.\u00a0 \u00a0[http:\/\/www.thefiscaltimes.com\/Columns\/2016\/07\/14\/Scary-Way-Pok-mon-Go-Making-Money-You].\u00a0 Accessed November 18, 2016.<\/p>\n","protected":false},"excerpt":{"rendered":"

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