Games 2'0

1

• Games 2.0
• Web 2.0 Expo
• April 25, 2008

Jeremy Liew MD, Lightspeed Venture
Partners www.lightspeedvp.com lsvp.wordpress.com j
eremy_at_lightspeedvp.com
2
Birth of Web 2.0 has been driven by making costs
variable
3
The games industry is starting to feel the same
dynamics
4
Development Low fi games gathering more users
Development Costs (M)
Players (M)
Halo 3
Power Challenge
Zyngas Texas Holdem
Friends for Sale
SGNs Jetman
Sources Lazard Capital Markets, Adonomics, Press
Releases, LSVP Estimates
5
Marketing Online distribution allows CPC and CPA
advertising
30M in marketing - Primarily offline 10M copies
sold - 90 through retail
6
Distribution Viral growth and social networks
allow games to grow virally
7
Content Multiplayer is user gen content for games

• Single-player games
• Need new levels to keep player interest
• AI for NPCs to maintain challenge
• vs.
• Multiplayer Games
• Each game is different, keeping player interest
• Other players have real intelligence, not AI

Asynchronous Play - Large pool of other players -
Easier to play against friends - Players playing
in sequence, not in tandem.- Requires persistent
state which all players affect, and which in turn
affects all players.- Breaks between players are
the organizing principle
Source Ian Bogost, Lightspeed analysis
8
Monetization Online games market growing as
revenue sources become more variable
ONLINE GAME REVENUES

• Sale of downloads
• Advertising
• Digital goods
• Self expression
• In-game power
• Extra levels/content
• Attention
• Convenience

9
If Web 2.0 is the social web, then Games 2.0 is
social gaming
PANELISTS
MODERATOR
Jeremy Liew MD, Lightspeed Venture Partners
Johan Christenson CEO, Power Challenge
Siqi Chen CEO, Serious Business (Friends for
Sale)
Mark Pincus CEO, Zynga Game Network
Shervin Pishevar CEO, Social Games Network