GDC 2005

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(No Transcript)
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Welcome to GDC Mobile 2006!

• Global perspectives
• Entire ecosystem
• Motto make better games!
• Debate and opinions are welcome

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Everything is great!

• Except
• consumption has been flat for several months in
  the US.
• evidence of price erosion in Europe
• costs are rising
• some carriers plan to take a greater revenue
  share

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Room for growth or failure to market?

• US console game-playing audience
• 50 of population
• Average age 30
• Gender 48 female
• Source The Economist
• US Mobile game audience
• Fewer than 4 of total mobile subscribers
  download a game in any month.
• Fewer than 10 play mobile games.
• Source Telephia and MMetrics

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Telephia Penetration has remained stagnant
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Telephia Subscription growth rate outpaced new
purchase growth rate purchases have grown slowly
since July
Expected bump due to Holidays but declined in
January
Annualized Growth 23
Annualized Growth 30
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• The Market is failing to give users an incentive
  to make repeat purchases.
• - Informa research

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Erosion End user price falling

• Average price for color game
• 2004 Euro 4.30
• 2005 Euro 3.49
• Source NetSize Guide 2006

• Vodafone makes no price distinction between 2D
  games and the richer 3D titles.
• Source Informa research

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The best billing system for impulse purchases
is wedded to the worst mechanism for
merchandising.
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Vicious Cycle of Stagnation?

• Carrier relies on content provider to stimulate
  consumption.
• Content provider relies on proven brands to
  attract audience.
• Audience fails to get excited by derivative
  products or re-hashed arcade titles.

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ELSPA 1 Mobile Game in UK

• December 2004 Tetris by iFone
• November 2005 Tetris by Jamdat

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The WalMart Effect
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Brand Hangover
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2005 the year of safe bets
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2005 the year of new names
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Extreme Makeover mobile edition

• Sorrent Glu
• Digital Bridges I-Play
• Dwango Wireless Dijji
• Kayak / Synergenix Blaze
• Digital Chocolate Digital Chocolate

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Extreme Makeover mobile edition (2)

• Sprint/Nextel Sprint together with Nextel
• Telefonica Telefonica together with 02
• SBC ATT together with SBC, BellSouth,
  Cingular and your bank account
• Vodafone no longer with J-Phone

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Extreme Makeover new names for 2006?

• iFone iPlay Better
• Digital Chocolate Digital Chocolate
• MFORMA MFRM
• GameVil Game Evil His Satanic Majestys Studio

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Telephia The top 10 publishers made up 70 of
mobile game revenues in Q4 2005