Casual Games Association ppt Template

1
Casual Games Industry Progress, Opportunities
Players
2
Casual Games Association

• Three main areas of focus
• Connecting the Industry
• Action Groups
• Industry Education

3
Casual Games Association - Connect Everyone

• Developers
• Publishers
• Distributors
• Portals
• Tools
• Industry Organizations
• PC
• Mobile
• Consoles
• EVERYONE

4
Casual Games Association -Connect In All Ways

• Connecting the Casual Games Industry
• CGA Conferences Kyiv, Amsterdam Seattle
• Minna Mingle networking socials
• Action Group Meetings
• Industry Magazine

5
Casual Games Industry

• Progress
• Why are we Here?
• Opportunities
• Current stable growth direction revenues
• Players Their Business Models

6
Casual Games Why Are We Here?

• Casual games are a big businessbigger, perhaps,
  than many people realize.
• Online download, subscription advertising
  revenues reached
• 713 million (USD) in 2005 and are estimated to
  grow to
• 1.56 billion (USD) in 2008.
• The casual games industry is maturing
• Bigger budgets
• DS, PSP, XBLA, Retail
• Alternative revenue models

7
Just the online casual space is.

• Bigger than EU US MMO space
• Bigger than Retail PC space
• About the same as
• The online US newspaper industry
• 1 Month of US film box office sales
• 2005 Music download sales
• ½ of the 2006 Music download sales
• (10 of total music market)
• 1/15 of the US Fitness industry

8
Casual Games Hit Driven Market

• Sales distribution of downloadable games.
  Percentage of Units Sold
• Top 5 Games 35
• Top 10 Games 60
• Top 20 Games 75
• This shouldnt be scary, but you must make high
  quality content to succeed
• High quality content is the KEY to a successful
  industry

9
Source Compiled RealNetworks top-10
listings www.game-sales-charts.com (by James
Gwertzman)
Casual Games Getting Crowded
Number of Top 10 games released on RealNetworks
(by quarter)
10
Casual Games - Shorter shelf life
Source Compiled RealNetworks top-10
listings www.game-sales-charts.com (by James
Gwertzman)
Ricochet Xtreme
Zuma
Super Collapse II
Bejeweled
Gutterball 3D
Bejeweled II
Puzzle Inlay
Feeding Frenzy
Bookworm
Diner Dash
Cake Mania
11
Money Facts what you can you do

• 80-100 Million USD in 2006 for Israeli casual
  games companies
• PopCap Games 2006 consumer spend was approx 80
  Million USD
• RealNetworks Q4 2006 revenue was 24 Million USD.
  2006 revenue was 86 Million USD, a 53 increase
  over 2005.
• A hit downloadable game will sell approx 400K
  copies, 4-10 USD a copy 1.6 4.0 Million in
  revenue.

12
Casual Games YOU!

• Which brings us to
• YOU contributing to creating high quality content
  is very important to the casual games industrys
  (and your) success.
• Dont assume that you can enter the market
  without hard work. The industry's growth hasnt
  gone un-noticed.

13
Casual Games Industry

• Progress
• Why are we Here?
• Opportunities
• Current stable growth direction (what is working
  now)
• Players Their Business Models

14
Content is Queen

• The most successful and stable companies own IP
• They are taking in less money and have more
  employees (and larger houses)

15
Content Pipeline how are they doing it?

• Create a number of prototypes (10-20)
• Develop a downloadable casual game
• Launch the casual game on their website
• Iterate as necessary
• Broad portal launch
• DS, PSP, XBLA, Retail, Mobile
• Puzzle Quest Cake Mania are in the top 10
  retail DS games (after 1st party games)
• PopCap Games is the 1 developer of XBLA games
• Casual game shelf space is increasing at Retail
• Bejeweled constituted 15 of Jamdats revenues
  before their sale to EA

16
Customer Interaction

• Being the go-to place is nice
• But it is hard to compete with portal destinations

17
Customer facing how they are doing it

• Custom store/user interface
• User generated merchandizing
• Traditional merchandizing
• Customer Acquisition
• Purchase traffic
• Internet Marketing
• Build off of IP
• No one has made a successful YouTube of games
• Success Pogo, Shockwave, Big Fish, PopCap

18
A note about chasing YouTube

• Think about how you listen to music
• Think about how you watch to movies
• Think about how you consume books
• Think about how you play video games
• Clubs Theatre Living Room/Den/Office
• MTV E Entertainment - G4
• Amazon (30 of market)

19
B2B - Technology

• Easier to enter
• Easier to flip
• Good place to enter market
• But is harder to maintain placement
• Most of Israels companies are here

20
Opportunities

• Should you enter the market?
• Should you bank on growing the market?
• Should you expand?
• Should you try something new?

21
Casual Games Industry

• Progress
• Why are we Here?
• Opportunities
• Current stable growth direction revenues
• Players Their Business Models

22
Consumer Facing

• Non-portals
• RealNetworks
• Big Fish Games
• Shockwave/Atom/MTV
• MiniClip (webgames)
• Pogo (subscription)
• Portals
• Yahoo
• Microsoft

23
Content

• Big Fish Games
• Sandlot Games
• PopCap
• MumboJumbo
• Pogo
• Reflexive
• RealNetworks
• MTV