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Casual Games: Where It’s All Going

Casual Games: Where It’s All Going. Rob Glaser Founder & CEO, RealNetworks. Where It All Started. Games For The Rest of Us. Why Did It Take So Long?. Before the Internet: No easy way to try casual games No dedicated place to learn about & buy them Lots of shovelware

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Casual Games: Where It’s All Going

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  1. Casual Games: Where It’s All Going Rob Glaser Founder & CEO, RealNetworks 1

  2. Where It All Started 2

  3. 3

  4. 4

  5. Games For The Rest of Us 5

  6. Why Did It Take So Long? • Before the Internet: • No easy way to try casual games • No dedicated place to learn about & buy them • Lots of shovelware • In the early Internet period: • Web games became popular, but advertising didn’t work well, so no way to get paid! • Not enough bandwidth for easy downloading 6

  7. Broadband To The Rescue!US Households with Broadband (millions) Sources: Jupiter Internet Access Model, Updated 2005 (US Only) 7

  8. Total Worldwide Internet Users 845M Current Broadband Subscribers194M Great Growth Potential Worldwide Source: eMarketer, May 2005 8

  9. Where We Are Today • Industry-standard Try-Before-You-Buy model has yielded a robust PC download business • Dozens of successful individual games • Profitable subscription services • Growing customer bases in 3 regions • North America, Europe, and Japan • Real downloads over 750,000 games a day 9

  10. Challenges And Opportunities • Integrating with off-line properties • New ways to monetize game play • New connected platforms • New markets & new interaction models 10

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  12. The 98% Opportunity • 750,000 downloads/day, but • Only 2% result in a consumer paying for a game • Early ad models didn’t work because either • Consumers found the ads intrusive, or • Consumers ignored the ads 12

  13. The 98% Solution: Advertising Done Right • Ads *must* be designed right, not overly intrusive • Ads *must* feel contextually correct -- sponsorships, skinning, and product placement are all parts of good execution. • Fortunately, a successful model to build on: • Clicktopia – our Dutch online game experience 13

  14. Banner Pre-roll 14

  15. New Banner Reminder 15

  16. Original Banner Leave Behind 16

  17. Integrating Ads into Downloadable Games • Rich media between game levels • Real partnership with Eyeblaster • We will test & try multiple models • “Extra” free game-play • Full free games for library games • Other windowing models 17

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  20. Casual Games & New Platforms • Mobile • Next generation handhelds • Next generation consoles 20

  21. Mobile is a Great Opportunity • Massive number of IP-enabled devices • The ultimate go-everywhere device • Casual games are a great fit with the constraints of mobile phones • Small screens • Relatively slow processors • 70.5% of mobile game revenue is in casual games 21

  22. Luxor and Other Great Casual Games are Leading the Way 22

  23. Off-deck/D2C is a ball-buster But, 2 Big Issues • Device fragmentation 23

  24. EMERGE -- Our Solution to Fragmentation • From a single code base, EMERGE supports • Over 300 handsets (BREW and J2ME) • More than 100 carriers • 11 languages • Some features filtered out to find the optimized balance for each handset to create as rich a user experience as possible Panasonic X60 Nokia 3200 SonyEricsson F5001 24

  25. How EMERGE Can Work For You • EMERGE dramatically reduces porting costs • 1/3 or less compared to other porting methods • Currently partnering with game developers: • For More Information: http://mrgoodliving.com/emerge 25

  26. Nintendo on DS/Train your Brain is Capitalizing on the Health and Education Benefits of Casual Games • Current research opens even more markets and opportunities – games are good for your health! • Research has shown that gaming activity that uses problem solving skills will slow age-related declines in mental ability. • Gaming has also been shown to help with pain management and education 26

  27. XBOX 360 Live Arcade • Bringing the casual download model to the console • It’s early, but conversion to purchase is encouraging • Xbox is bringing a new demographic to casual games • The hardened gamer stops slaying dragons to play a game of Uno? Yes… 27

  28. Casual Games & Community • What is it? • Shared high scores • IM and chat around or during game • User generated content • Message boards • Ratings • Multiplayer games • Competitive • Collaborative • Different users have different goals and desires • Key is to offer a wide range of choices • Now is the time to experiment 28

  29. Learning From Around the World 29

  30. Model is to Pay for Items & Social Status, Not Basic Game-play 30

  31. Casual Games: Ready for Prime-time • Together, we’ve built a very successful PC games business • Major growth opportunities in many dimensions: • PC ad-supported Casual Games done right • Mobile and Next Gen Handhelds & Consoles • New underlying models around community & social status • Worldwide Growth • While there are challenges, if we work together the future opportunity is limitless! 31

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