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Casual Games Industry Progress, Opportunities & Players

Casual Games Industry Progress, Opportunities & Players. Three main areas of focus Connecting the Industry Action Groups Industry Education. Casual Games Association. Developers Publishers Distributors Portals Tools Industry Organizations PC Mobile Consoles EVERYONE.

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Casual Games Industry Progress, Opportunities & Players

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  1. Casual Games Industry Progress, Opportunities & Players

  2. Three main areas of focus Connecting the Industry Action Groups Industry Education Casual Games Association

  3. Developers Publishers Distributors Portals Tools Industry Organizations PC Mobile Consoles EVERYONE Casual Games Association - Connect: Everyone

  4. Connecting the Casual Games Industry CGA Conferences: Kyiv, Amsterdam & Seattle Minna Mingle networking socials Action Group Meetings Industry Magazine Casual Games Association -Connect: In All Ways

  5. Casual Games Industry • Progress • Why are we Here? • Opportunities • Current stable growth direction & revenues • Players & Their Business Models

  6. Casual games are a big business—bigger, 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 Casual Games – Why Are We Here?

  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. Sales distribution of downloadable games. Percentage of Units Sold Top 5 Games 35% Top 10 Games 60% Top 20 Games 75% This shouldn’t be scary, but you must make high quality content to succeed High quality content is the KEY to a successful industry Casual Games – Hit Driven Market

  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. Which brings us to… YOU contributing to creating high quality content is very important to the casual games industry’s (and your) success. Don’t assume that you can enter the market without hard work. The industry's growth hasn’t gone un-noticed. Casual Games & YOU!

  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 Jamdat’s 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 Israel’s 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

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