WoW Epic Mounts Friends For Sale

$37 billion$37 billiongame software in 2007game software in 2007

CORE

$1100million revenue$517 million profit in 2007 alone

WOW epic loot

PC single player PC MMO PS3 / X360

Cures:Digital distributionOnline”light MMO”Free to play

Questionmarks:Free to play?WOW >> rest forever?HUGE financial risks - new games >50M$

Trends:Reaching mainstreamNo clear winnerMore casual focusNew games expensive - must sell >1M units

Dying fast Good growth OK growth

CASUAL

Wii wins

PC casual games Casual MMOWii, consolecasual games

Trends:Flash gamesOnlineNew monetization

Challenges:PC downloadable - over competive - low conversion %

Trends:Mostly teens & tweensFree to playWeb integration

Challenges:Other age groups?Market glut?Getting expensive

Trends:Expands marketNew genres - music gamesGames for everyone

High growth Mixed Big success

SOCIAL

>200M SocNet users

~700k daily usersselling friendsbut where’s the

money?

FunwareSocNet games

New territory:Games-like interaction Ebay, Flickr, Wikipedia FreeRice, Food Force

Games are the ultimatehappiness engine.

Trends:FAST viral growthFadsImproving qualityMore competition Virtual goodsMerging with casual?Lots of VC investments

High growthMonetization starting

Huge potentialEarly days

?

Trends

Core Casual

SocialRevenue now

Users now

, 2010

, 2010

opportunity

Self expressionSelf expressionexpressing and sharing

User generated content

User generated contentco-creators, customizers

open your game.

CollaborationCollaboration

We, togetherMass scale

Playful

Breakingdown the

walledgarden

Breakingdown the

walledgarden

open APIs, web integration

Everythingcan be a

GAME

Everythingcan be a

GAMEe.g. Nike + Ipod

Free to play will rule

Free to play will rule

Pay forvirtual goods

Games will becomeaccepted – by all.

Games will becomeaccepted – by all.

Games evolveGeneration shift

It will still take time

Thousands of flowers will bloom

Thousands of flowers will bloom

All types of games are growing

Play with me!Play with me!Games enhance interaction

Games enhance servicesGames enhance products

Re-think.