John Smedley Presentation

GDC 2010How Games-as-a-Service & Virtual Items Have

Changed the Playbook Forever

John SmedleyPresident, Sony Online Entertainment

EverQuest and EverQuest II In-game Marketplace and Virtual

Item Sales added to SOE’s Top Two MMOs in December 2008• Over 60% of EQ & EQ II subscribers have purchased

virtual items from the in-game Marketplace

• Over 325 unique items available for purchase

• Over 560,000 virtual items purchased LTD

• Additional dedicated development resources support evolving business model

• Items & Character Services improve player experience

EverQuest Marketplace

Dedicated Marketplace Tab on Welcome Screen

EverQuest MarketplaceItem preview with description and all details

Marketplace look and feel consistent with traditional EQ UI

Add funds to your Wallet directly in-game

Search Functionality & Item Categories

EverQuest II Marketplace

Dedicated placement in Welcome Screen with current Wallet Balance

EverQuest II Marketplace

Item preview includes item description and all details

Items organized/catalogued by category and type

Marketplace look and feel consistent with traditional EQ II UI

Add funds to your Wallet directly in-game

Free Realms Free-2-Play 3D Virtual World

Launched in April 2009 for Kids and Tweens • 9 million registered users in less than a year

• Over 1,000 unique items available for purchase

• Hybrid business model includes Membership, Virtual Item Commerce, and Advertising

• Over 3 million virtual items purchased LTD

• Robust cross-functional commerce team manages day-to-day item commerce, membership & game offerings

Free Realms MarketplaceWebsite gateway to game world

Free Realms MarketplaceCustomized pre-game loading screens feature rotating content offers, promotions & advertisements

POSA retail cards available at top retailers

Free Realms MarketplaceFeature all-new virtual item content with dedicated loading screens

Free Realms MarketplaceNew player splash screen with 250 SC bonus

Membership upgrade button

Players introduced to virtual item categories upon entry

Free Realms Marketplace

Membership splash screen upon entry

Game content, items and discounts promote Membership benefits

Free Realms Marketplace

Detailed daily Welcome Screen features:

- What’s New- Friends- New Content- Virtual Items- Activities- Daily spin rewards- Add SC funds option

Free Realms Marketplace

Marketplace integrated into UI (seamlessly)

Free Realms Marketplace

Additional commerce UI built into game content

Free Realms MarketplaceItem of the Day Feature

All commerce points lead to main Marketplace Storefront

Membership up-sell

Top Sellers

Item organization by categories

Redeem game codes and retail POSA cards directly in-game

Free Realms MarketplaceActive SC Marketplace

Funding directly in-game

Search functionality

Free Realms MarketplaceSix funding options to purchase SC

Free Realms Marketplace

Simple credit card account form with secure authentication

Free Realms MarketplaceEasy to understand code redemption

Free Realms Marketplace

Membership option available directly in-game

Use Credit Card or SC for Membership purchase

Free Realms MarketplaceHighly detailed virtual item listings

Wallet balance, Add funds

Free Realms MarketplaceRobust item preview feature…

Free Realms Marketplace

…showcases item directly on character in-game

Commerce window stays active for instant point-of-sale

Free Realms Marketplace

SC icons denote virtual items for purchase

Free Realms Marketplace

Virtual item commerce presented by NPCs

Free Realms Marketplace

SC icon with NPC merchant opens Marketplace

Free Realms Marketplace

Merchant takes you directly to specific virtual item for purchase

Free Realms Marketplace

Web-based functionality includes:-Redeem-A-Code- Where to buy game cards- Fund Wallet option

Free Realms Marketplace

Purchase SC via secure website or redeem retail POSA card

Pox Nora Multiplayer Online Game That

Combines a CCG With Turn-based Strategy in a Fantasy Setting• Pox Nora added to SOE’s suite of games in January

2009

• Live Gamer Marketplace integrated in February 2010

• Over 55 unique items for purchase including Packs, Avatars, Campaigns and Game Tokens

• Station Cash and your Universal SOE Wallet can be used for all applicable SOE games (EQ, EQ II, FR, and Pox Nora)

POX NORA Marketplace

Web-based Marketplace for the purchase of virtual items

POX NORA Marketplace

Main Marketplace Page Features:- Universal Wallet balance- Add funds option- Item categories- Detailed item offerings

POX NORA Marketplace

Pop up window details item, description, price and affordability

POX NORA Marketplace

Multiple funding options include Credit Card, Retail SC Cards and PayPal

POX NORA Marketplace

Seamless integration with PayPal payment provider

POX NORA Marketplace

Station Cash secure funding purchase via PayPal in under 30 seconds

POX NORA Marketplace

Credit Card purchase method with stored payment option and simplified account form

POX NORA Marketplace

Multiple Credit Cards can be stored for future payment purchases

POX NORA Marketplace

Click to buy items using Station Cash in your Wallet

POX NORA MarketplaceVirtual item purchased in less than 5 seconds