Casual Games Overview

PAGE 2

Who is The Casual Gamer?

PAGE 3

Who is The Casual Gamer?

PAGE 4

Who is The Casual Gamer?

• 70-100+ million casual gamers worldwide

• 65% Female - Core age 25-54 (71%), 88% are 25+

• Females play 2.5 times longer than males (Jupiter)

PAGE 5

Who is The Casual Gamer?

• 70-100+ million casual gamers worldwide

• 65% Female - Core age 25-54 (71%), 88% are 25+

• Females play 2.5 times longer than males (Jupiter)

FUN

Community

Entertainment

Rewards

PAGE 6

Top Casual Games Over Past 5 Years

Puzzle Arcade Card

Word

Casual Games Business Models

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MSN Games - December 2000

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MSN Games – February 2006

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Popcap Games – December 2000

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Popcap Games – February 2006

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Casual Games Market Overview

Downloads(Revenue Per Download - $19.95)

Free Online (Ad Revenue)

Subscription(Annual / Monthly Fees)

High B

arrier

High B

arrier

Low B

arrier

Low B

arrier

Skill(Fees)

Aud

ienc

e Si

ze

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Revenue per User per Business Model

Downloads(Revenue Per Download - $19.95)

Free Online (Ad Revenue)

Subscription(Annual / Monthly Fees)

$80 - $120

$30 - $50

$20 - $30

$.20 - $.40

Skill(Fees)

Aud

ienc

e Si

ze

Revenue per U

ser

PAGE 14

Comprehensive Casual Games Experience

• User plays game across all four casual game revenue models

Cash Games

Rev per user $80 - $120

Subscriptions

$30 - $50

Downloads

$20 - $30

Free Online

$.20 - $.40

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Revenue Pillars – Considerations

Online Advertising• Advertisers are moving more ad dollars to online• Game, genre, or site specific sponsorships• Advertising in games

Downloadable Games• Top 10-20 games equal 90% of the revenue• Price Inelastic ($19.95 target price)• File Size in the 8-10 Mb range

Subscription• Community is key• Token based world with broad selection of games, leagues, tournaments, avatars, etc • Pay on Monthly or Annual Basis

Cash Games• Player’s compete for REAL cash & prizes against others• Winner determined by Skill. (NOT chance as in Casino games or lotteries)• Large Liquidity Pool and games determine success• Prizes range from $1 to $1,000,000 (Skill Games World Championship Winner)

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$1 Million Skill Games World Championship

• Drive Awareness to the Casual Game / Skill Game Space– Largest Prize ever offered in Casual Games

• People will play the most popular games ever launched in their respective genres– Bejeweled 2, Zuma, Solitaire

• Tournament structure based on success of Poker tournaments– Qualifying tournaments held online– Big finals event held in Los Angeles – Finals will be filmed and broadcast by GSN to 58 million households

• One hour show, start air date on Dec’06

• Winner will be declared the best “Casual Gamer” in the world

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Where is the Casual Games Industry Headed

• Awareness in the industry will drive growth

• Extension of Casual Games across new markets and platforms will drive growth

• Community features will drive customer retention, revenue

• Refinement of business models and revenue structures

• Consolidation in the Industry