How to embrace the challenge of an ever-changing market as an opportunity

Christian Kluckner

Managing Director and Co-Founder

Chimera Entertainment

Chimera Entertainment is an independent developer for digital entertainment software which focuses on mobile gaming and

cross platform development.

• Currently close to 50 employees • Latest and most successful game: Angry Birds Epic• Released more than 20 games for PC, Mobile and Browser

How the games industry changedduring the last 10 years

Player behaviourDistribution channels

& pricing

Technology Platforms

• Singleplayer -> Multiplayer

• Offline -> Online

• Competitive environments

• Session length

• Casual & hardcore -> midcore

Market changes: Player behaviour

Apple App Store: 1.200.000 appsAverage Game Price iOs: 0,63$

Google Play Store: 1.300.000 appsAverage Game Price Google Play: 0,60$

Premium model is hard to sustainF2P responsible for majority of revenue

Market changes: Distribution channels & pricing

Market changes: Distribution channels & pricing

Average mobile game: 0,60$

AAA console game: 60$

Steam game on sale: 15$

To generate a revenue of 2 million $

… the game needs to be sold 3.333.333 times.

… the game needs to be sold 133.333 times.

…the game needs to be sold 33.333 times.

Price tags:

Market changes: Distribution channels & pricing

Retail stores

Digital download• Steam, Uplay, GOG, etc.• PSN/XBLA• Browser• Mobile

Crowdfunding

Distribution

New concepts:

• Soft Launch• Ad for Rewards• Early Access

Market changes: Technology

• Shift from proprietary engines to licenced middleware like Unity3D & Unreal Engine

• Shift from simple and short 2D mobile games to high quality titles with immersive 3D graphics (AAA mobile)

• Introduced a new generation of consoles (Xbox One, PS4, Wii U)

• Current smartphones are more powerful than an average PC 10years ago

Oneengine torulethemall

Browser PC/Mac Client

Console

MobileiOS, Android, WP8

crossplatformgames

Mobile online

Online client

Market changes: Technology

2006 2007 2008 2009 2010 2011 2012 2013 2014

How we dealt with the shift in platforms

PC Console Mobile Browser

Chimera focused on Browser Chimera focused on MobileChimera focused on PC

Release of Angry Birds Epic

Founding and workingon first PC title

Debut Release: Windchaser

Backend technology for Browser MMOs

Transition to multi-project & multi-platform development

Deal with Rovio

Market changes: Platforms

How to deal with the current situation?

Today, just making a game and waiting to see what happenswill not earn you any money.

More relevant than ever before: • Regional differences (Eastern/western market)

• Platforms & target audience (which game for what customer?)

• Market analysis & involvement from publishers

• Player behaviour analysis

Current situation: know how to deal with it

Anticipate the changing market• The easy one: next generation of consoles/devices

• The hard one: upcoming trends & popular genres

• The risky one: new technologies & hardware

Current situation: identify key changes

Define what you‘re aiming atDetermine a USP or carve a niche for your company

• Pick a popular genre and do not take risks that come with innovation

• Polish, iterate, balance

• Build brands (became nearly impossible)

Alternatives:• Find a niche your game can fit into & generate a „hype“

• Try to aquire an IP/brand that fits your concept & vision

• Make 51 games until you hit it („Rovio Strategy“)

„The Blizzard strategy“

Current situation: the Blizzard strategy

• Mobile market is fast-paced

• Big game brands or clones are dominating the market Steam andApp Stores are flooded with games

(every day hundreds of games are being released)

• AAA got incredibly expensive

Reach & Visibility are key factors

Current situation: flood of clones & brands

Mobile = Reach

PC = Steam

Konsole = AAA

Current situation: Summary

Current platforms: Summary

IP AAA

Niche Crowdfunding

How we did it:

Why Angry Birds Epic was relevant:

• One of the most popular brands on mobile

• Transition to F2P for Rovio

• Target casual and core users (midcore RPG)

• Maintain and expand the brand (or it will die)

Angry Birds Epic

Resource management of an indepentent studio

Live Team

Live TeamDevelopment Team

Development Team

Assignment of Ressources/Projects

Thank you!Questions?

Christian KlucknerManaging Director and Co-FounderChimera Entertainment