Course:ETEC522/2010ST1/SeriousGameEnvironments/Vector4
Introduction
According to a survey conducted by Compaq, most IT managers did not know that the costs incurred after buying equipment are almost always greater than buying the equipment itself. Furthermore, the costs incurred after purchasing and installing the equipment are approximately 80% of the total IT cost (Processor, 2004). Given the limited budgets of schools, school districts, and other companies wishing to use serious games as a method of learning and training, computing the total cost of ownership (TCO) is essential.
Calculating the Total Cost of Ownership
In order for prospective serious games users to adequately calculate the TCO of a gaming system or console, simulator or game itself, the direct and indirect costs of these items must be taken into consideration.
Direct Costs
Direct costs are those that pertain to the acquisition expenses of the cost of buying the system, and costs associated with research, design, sourcing, purchasing, delivery, installation, customization, training and deployment (Piedad, 2001).
- Research: What products are available to meet my need? Costs associated with this item will include the time and labour spent researching products, the acquisition of consulting services, or the purchase of a third-party report concerning a specific product.
- Design: How will the system or console, and all the requisite components come together to form an effective learning or training platform? Costs associated with this item will include changing to a different system or platform (such as from PC to Mac, or Nintendo Wii to XBox 360.
- Sourcing: Where can I find the best possible price? Costs associated with this item will include the time and labour spent researching vendors and obtaining quotes.
- Purchasing: What is the cost of the system or console and all of the requisite components (software, peripheral devices, accessories), including applicable taxes? Costs associated with this item will include the purchase of hardware, software, and accessories, as well as necessary upgrades to pre-existing systems to ensure the new item will function properly.
- Delivery: What is the cost of delivering the system? Costs associated with this item will include shipping or transportation charges incurred while delivering the product to the desired location.
- Installation: What costs will be incurred during the installation of the system? Costs associated with this item will include labour, materials and disruptions caused to staff and student productivity during the installation process.
- Customization: Do I need to customize or develop the applications I will be using? Costs associated with this item will include the design process, and labour and consulting charges.
- Training: How will I train users on the new system? Costs associated with this item will include internal or external trainers, professional development systems, and lost instructional or work time during training process.
- Deployment: What does the deployment process look like? Costs associated with this item will include time for system or product integration, changes to learning or training curriculum, and promoting and introducing the new system or product.
(Adapted from Piedad, 2001)
Indirect Costs
Indirect costs are those that address the issues of maintaining and running the system, and includes those associated with operations management, systems management, system maintenance, licensing fees, upgrade costs, user support and ongoing training, and environmental factors (Piedad, 2001).
- Operations Management: What is the cost of managing operations? Costs associated with this item include activation and shutdown of the product or system, backup and recovery.
- Systems Management: What is the cost of managing systems? Costs associated with this item include problem management, and performance issues and management.
- Systems Maintenance: What is the cost of maintaining the systems? Costs associated with this item include maintaining hardware, software and accesory components, and conducting ongoing preventative and corrective maintenance.
- Licensing Fees: What is the cost of maintaining licensing agreements? Costs associated with this item include ongoing license fees.
- Upgrade Costs: What are the potential upgrades needed for the system to continue functioning? Costs associated with this item include upgrading system components, including hardware, software and accessories.
- User Support and Training: What costs will be involved with user support and ongoing training? Costs associated with this item include ongoing training sessions, help desk facilities or features, troubleshooting and problem-resolution costs, consulting costs, and maintenance agreements.
- Environmental Factors: What environmental factors affect the cost of operating the systems or products? Costs associated with this item include electricity, high-speed internet access, and a space or location for the system/product.
(Adapted from Piedad, 2001)
Activities
To review direct and indirect costs, please take a few minutes to play the games that we have designed for you.
The Total Cost of Ownership for Serious Games
Computer-Based Costs
The TCO for computer-based serious games varies considerably depending on the type of game being used. Many flash-based training games on the web are available for free, whereas other games, such as more intense simulations or historical games, are available for a modest fee. Rather than focus on the general TCO for computer-based serious games, we will focus on one of the newest releases of a game mentioned in Vector 2: Age of Empires III: The Asian Dynasties.
Direct Costs
| Table 1. Direct Costs Associated with Computer-Based Gaming | |||||
|---|---|---|---|---|---|
| Direct Cost Factors | Remarks | Actual Cost | |||
| Research | 1. Informal reviews are available online 2. James Paul Gee’s “What Video Games Have to Teach Us About Learning and Literacy” discusses the earlier versions of the game in relation to its use in learning. |
1. Free for viewing 2. $21.49 (with taxes & shipping) (Amazon.ca, n.d.a) | |||
| Design | The following are the system requirements: •Windows XP, Mac OS X or later •256 MB RAM •1.4 GHz processor •2 GB free hard drive space (plus space for Age of Empires III •64 MB video card with support for hardware transformation and lighting •56K dial-up Internet access or LAN for online/multiplayer |
•If the platforms do not meet the minimum requirements, upgrades to the system is needed (Microsoft, n.d.a) •If no upgrade is needed, free. •If upgrade is needed, costs will vary. | |||
| Sourcing | 1. Quotes are from links listed in a Google search. 2. Direct download from Microsoft.com, only available as a part of “Age of Empires III: The Complete Collection.” 3. Shipped from Apple.com, available as standalone game. 4. Shipped from Amazon.ca, available as standalone game. |
1. Free 2. $39.99 USD 3. $39.95 USD 4. $44.79 CAD (includes shipping and taxes) (Microsoft, n.d.b; Apple, n.d.a; Amazon, n.d.b) | |||
| Purchasing | A computer system is necessary for this particular product to function. The prices listed are for an entry-level computer, and are included for consideration in case a school or company was looking to increase or replace computers. | PC (Desktop): $329.99 PC (Laptop):$369.99 Mac (Desktop): $1199.00 Mac (Laptop) $999.00 (Future Shop, n.d.a; Future Shop, n.d.b; Apple, n.d.b; Apple, n.d.c) | |||
| Delivery | 1. Depending on which vendor was chosen for the software, delivery charges vary. 2. If computers were also needed, delivery charges were generally waived. |
1. Microsoft: free Apple: $6.00 Amazon: approx. $5.00 2. N/A (Microsoft, n.d.a; Apple, n.d.a; Amazon, n.d.b) | |||
| Installation | 1. Depending on who does the installation of the software, be it a contractor or a staff member, the cost varies. 2. If computers were needed, the cost rises significantly, as computers and networks would need to be set up. |
1. Unknown 2. Unknown | |||
| Customization | Login profiles would be needed for each student so that they are able to pick up where they left off each time. | Unknown - time and labour spent by contractor or staff member would need to be taken into consideration. | |||
| Training | 1. User guides are available online. 2. Professional development (PD) sessions would be needed to assist teachers/trainers with how to use the software in their teaching/training. |
1. Free 2. Sessions can cost anywhere between $500-$64 000 depending on the number of staff and hours needed for PD (UCLA Math, n.d.) | |||
| Deployment | External consultants would be needed to assist teachers/trainers with curriculum design and integration. | Unknown - cost varies depending on length of time needed for curriculum design and integration. | |||
| Actual cost refers to the cost per “system,” which could be used by a single user (personal use), or by multiple users (school use). | |||||
Indirect Costs
| Table 2. Indirect Costs Associated with Computer-Based Gaming | |||||
|---|---|---|---|---|---|
| Indirect Cost Factors | Remarks | Actual Cost | |||
| Operations Management | Students are responsible for activation, shutdown, backup (saving), and recovery (opening personal save file). | Free | |||
| Systems Management | Performance issues and software problems are teacher responsibilities. | Included in teacher salary | |||
| Systems Maintenance | Internal or external IT providers are responsible for systems maintenance. | Varies depending on provider. Internal provider will be covered under school or district budget. External will be dependent on contracted amount. | |||
| Licensing Fees | Depends on size of school and volume purchased. | Free - unknown | |||
| Upgrade Costs | Providing computer systems are up to date, there will be no upgrade costs | N/A | |||
| User Support and Training | 1. Most user-support issues can be resolved via the help documents included within the software itself. 2. Online message boards offer suggestions and troubleshooting advice. 3. Other problems can be directed to teacher or trainer. |
1. Free - included in purchase price 2. Free 3. Free - included in cost of teacher/trainer | |||
| Environmental Factors | Most of these will be included in the building operations budgets of the schools/businesses wishing to use the software. However, there are some rough figures to the right for your consideration. 1. High-speed internet access 2. Electricity 3. Location and storage of equipment |
1. Can range from $55-96/month (Shaw, n.d.) 2. Will likely fluctuate depending on energy consumption. 3. Office chair - $99.97 (Staples, n.d.a) Desk - $119.96 (Staples, n.d.b) | |||
| Actual cost refers to the cost per “system,” which could be used by a single user (personal use), or by multiple users (school use). | |||||
Console-Based
The TCO for console-based serious games does not fluctuate as much as that of those that are computer-based, as the games and accessories used in the consoles more or less have a fixed price. The focus of the TCO for console-based serious games will be on the Nintendos Wii's Big Brain Academy Wii Degree, also discussed in Vector 2.
Direct Costs
| Table 3. Direct Costs Associated with Console-Based Gaming | |||||
|---|---|---|---|---|---|
| Direct Cost Factors | Remarks | Actual Cost | |||
| Research | Informal reviews are available online. | Free | |||
| Design | Schools/businesses transitioning from a computer-based learning experience to a console-based one would need to redesign learning environments with the Wii in mind. | Unknown - depends on level of redesign required. | |||
| Sourcing | 1. Quotes are from links listed in a Google search. 2. Game is available from various retailers for the same price. |
1. Free 2. $29.99 (Future Shop, n.d.; Best Buy, n.d.; Amazon, n.d.) | |||
| Purchasing | A Nintendo Wii console is necessary for this particular product to function. The prices listed are for the console, additional controllers necessary to play the game effectively and a television compatible with the console. | Wii: $209.99 Controllers: $44.99 each (x 3 = $134.97) Television: $219.99 (Future Shop n.d.c; Future Shop n.d.g; Future Shop n.d.f) | |||
| Delivery | Each of these items can be picked up at local electronics vendors, which minimizes the cost. | Varies depending on distance to vendors, fuel prices and rate of fuel burn. | |||
| Installation | Depending on who does the installation of the software, be it a contractor, staff member or student, the cost varies. | Unknown | |||
| Customization | Login profiles would be needed for each student so that they are able to track their progress and play with other students effectively. | Unknown - time and labour spent by contractor or staff member would need to be taken into consideration. | |||
| Training | 1. User guides are available online. 2. Professional development (PD) sessions would be needed to assist teachers/trainers with how to use the software in their teaching/training. |
1. Free 2. These sessions can cost anywhere between $500-$64 000 depending on the number of staff and hours needed for PD (UCLA Math, n.d.) | |||
| Deployment | External consultants would be needed to assist teachers/trainers with curriculum design and integration. | Unknown - cost varies depending on length of time needed for curriculum design and integration. | |||
| Actual cost refers to the cost per “system,” which could be used by a single user (personal use), or by multiple users (school use). | |||||
Indirect Costs
| Table 4. Indirect Costs Associated with Console-Based Gaming | |||||
|---|---|---|---|---|---|
| Indirect Cost Factors | Remarks | Actual Cost | |||
| Operations Management | Students are responsible for activation, shutdown, backup (saving), and recovery (opening personal save file). | Free | |||
| Systems Management | Performance issues and software problems are teacher responsibilities. | Included in teacher salary | |||
| Systems Maintenance | Internal or external IT providers are responsible for systems maintenance. External provider may be Nintendo themselves in some cases. | Varies depending on provider. Internal provider will be covered under school or district budget. External will likely be included in the purchase price. | |||
| Licensing Fees | Depends on size of school and volume purchased. | Free - unknown | |||
| Upgrade Costs | 1. Given the wear and tear on devices like the controllers, it is likely that they will need replacing before the console or game themselves. 2. Batteries for the controllers will also need to be purchased frequently. |
1. $44.99 per controller 2. $19.99 for 4 rechargeable batteries, $29.99 per charger (Future Shop n.d.g; Future Shop n.d.h; Future Shop n.d.b) | |||
| User Support and Training | 1. Most user-support issues can be resolved via the help documents included within the software itself. 2. Online message boards offer suggestions and troubleshooting advice. 3. Other problems can be directed to teacher or trainer. |
1. Free - included in purchase price 2. Free 3. Free - included in cost of teacher/trainer | |||
| Environmental Factors | Most of these will be included in the building operations budgets of the schools/businesses wishing to use the software. However, there are some rough figures to the right for your consideration. 1. Electricity 2. Location and storage of equipment |
1. Will likely fluctuate depending on energy consumption. 2. Wall-mounted TV stand: $40.99 (Future Shop, n.d.e) | |||
| Actual cost refers to the cost per “system,” which could be used by a single user (personal use), or by multiple users (school use). | |||||
Market Outlook
As mentioned in previous vectors, the use of serious games in the education and business sectors for training and learning is here to stay. Although their use in these areas is relatively new, the market is more or less set, and costs will not drop much further than at the point in which they currently sit. This is because the underlying technology of many serious games is the same as those underlying more popular, mainstream games. As a result, non-commercial products, such as Incident Commander,” cost about $1 million, compared to that of more commercial games, which cost between $3 - $20 million each to develop (Kalning, 2006; Wikipedia, 2010)
Given the effective nature of serious games as training and learning platforms, and the relatively inexpensive nature of developing a customized game, many businesses have already contacted game developers to design a product specific to their training needs. The price tag of a game such as “Incident Commander” may seem to be too expensive for many schools or school districts. That being said, when we take government initiatives such as the BCeSIS systems into consideration, which was rumoured to have cost approximately $80 million, the development of serious games for education is relatively inexpensive (BCTF, 2007).
Vector Report Card
Discussion Questions
If you were in the position of purchasing serious games for your school or business, which of type gaming system would you choose, a computer-based system or console-based system, and why? Base your argument on total cost of ownership alone.
References
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