Alternate Channels for Casual Games Bryan Trussel, Microsoft Dave Bell, PlayPhone

1. Alternate Channels for Casual Games Bryan Trussel, Microsoft Dave Bell, PlayPhone Raj Singh, ToneThis Moderator: Craig Holland, Freeze Tag 11:30am June 28th Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

2. Objective • How to make money from your casual game IP Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

3. Objective • How to make money from your casual game IP • Main “channel” • Device: PC • Technology: Windows • Business Model: Download (TBYB) • Revenue: __% of per unit sale Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

4. Objective • How to make money from your casual game IP • Main “channel” • Device: PC • Technology: Windows • Business Model: Download (TBYB) • Revenue: __% of per unit sale • Questions: • What are the other channels? • How do I evaluate the opportunity? • Do I need a partner? Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

5. Opportunities Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

6. Opportunities Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

7. Opportunities Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

8. Opportunities Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

9. Instant Messaging Platforms Bryan Trussel Microsoft Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

10. MSN Messenger Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

11. MSN Messenger Games Users: • 180 Million MSN Messenger users worldwide • 16 Million Unique Users playing Messenger Games (monthly) • 60K + daily peak populations • About 40/60 male/female distribution • Wide demographic, from teens to CEOs (but teens spend much more time online) Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

12. MSN Messenger Games Business Models: • Subscriptions • Advertising • Advergaming Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

13. Game Design Considerations for Messenger • The platform provides: • Launching • Matchmaking (including handshake and session establishment) • Buddy Invites • Stats reporting, tracking, and storage • Networking (including relay servers, firewalls, NAT traversal, and tunneling) • Game Window Management Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

14. Top Messenger Titles(Game Launches and Unique Users) • Minesweeper Flags • Checkers • Solitaire Showdown • Bejewelled • Hexic • Tic-Tac-Toe • Pool (Billiards) Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

15. Web Distributionof Mobile Games Dave Bell PlayPhone Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

16. D2C Model Dominating Mobile Content Industry • European numbers for Direct to Consumer are staggering • Vodafone UK reports 70% of MoCo revenue generated by “off portal” sales • North America beginning to follow European trend; consumers hungry for choice • Carriers supporting D2C model have seen compound annual off portal growth of 410% • Carriers in North America are opening up • Cingular, T-Mobile perennially supported D2C • Sprint opened to off deck channels in Q4 2005 • Verizon Wireless coming soon Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

17. Mobile Games - Now, it’s our turn to shine! • The Direct to Consumer business isn’t just about ringtones and wallpapers anymore • Carriers who once allowed only ringtones and images via D2C now have opened up to games in the past year • Mobile game downloads increased by 53% in Q1 2006 industry wide - consumer demand is strong • Newer phones with desirable functionality for games churning into the marketplace faster Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

18. Many Challenges Still Remain • Handset compatibility is huge issue for games in D2C channels • New devices “trickle down” to D2C users 12 months after carrier introduction • D2C customers typically not early adopters • Single download business for mobile games is a struggle • Each time a user attempts to download a game that isn’t compatible revenue is lost • Users lose interest after first unsuccessful download attempt Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

19. Success in D2C Mobile Games Requires Focus • What works for a successful ringtone download business does not necessarily work for games • Subscription business models, good customer management and handset profiling are key • Games focused mobile portals can see game download ratios as high as 35% compared to other categories • PlayPhone reports 90% of game download requests completed successfully • Business is growing - Q1 - Q2 2006 game downloads grew 300% for one leading games portal Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

20. Mobile Gamers are Casual Gamers • Sampling of Top Downloads by Publisher @ PlayPhone • Jewel Quest • Mah Jong Quest • Zuma • Deer Hunter • Solitare 4-Pack • Platinum Solitaire • Midnight Bowling • Collapse • Wild Wild Words Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

21. Desktop Distribution of Mobile Games Raj Singh ToneThis Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

22. Desktop Distribution • Mobile is an extension of the desktop (most of the time) • Distributing activity-relevant premium content on the desktop (It’s like 1999 with ads in the apps but relevant) • Distributing content as part of desktop application installers (ie “Toolbar Bundling”) Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

23. Benefits of the Desktop • More seamless user-experience although this is starting to be challenged • Off-line doesn’t matter • “Always-on”, taskbar icon can wake up and upsell! – creates a natural stickiness • Credit Card details for commerce do not appear to leave the desktop (false sense of security) Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

24. Desktop Activity with Mobile Content • File-sharing companies seeking to distribute premium mobile content (extending beyond premium desktop content) • Content providers including some operators are seeking to create a desktop channel to unify their mobile and web experience • EA Mobile is creating a desktop app; Phase 1 is an RSS feed of alerts and updates for the different online-mobile games you play • MSFT Live online ID SDKs allowing for seamless commerce between the web and the desktop Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

25. ToneThis • Enables customization and delivery of personal content OTA from the desktop • Aggregates and upsells premium content from the desktop including games, ringtones, wallpapers and videos • 300K+ users, CNET Top 10 downloaded “Mobile Category” app, retail distribution in Fry’s, Best Buy, CompUSA etc Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

26. Dedicated Game DevicesConsoles (Xbox) Bryan Trussel Microsoft Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

27. Xbox Live Arcade Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

28. Xbox Live Arcade Business Model • User presented with a “walled garden” Arcade experience. • Free Download trials • User can purchase with the push of a button (Points) 3 BIG differences in Xbox 360 version • Embedded in ROM (Dashboard) • “Silver” Live subscription is free • Points as currency Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

29. Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

30. Some Xbox Live Arcade Stats Launched 4 months ago, 20 titles currently on service: • Over 3M downloads to-date since launch (this is paid + free trial) • Over 60% of connected Xbox 360 consoles downloading and playing Xbox Live Arcade titles • Over 20% average download-to-purchase conversion rate for titles, with the top title converting at 39% • Top WW Arcade Titles on Xbox 360 to-date: • Geometry Wars • Marble Blast Ultra • Gauntlet • Smash TV • Zuma Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

31. Opportunities Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

32. A Metaphor Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

33. A Metaphor Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

34. A Metaphor Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

35. A Metaphor Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors

36. A Metaphor Casuality Seattle: A Conference for Casual Game Developers, Publishers and Distributors