casual games industry progress, opportunities & players

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1 Casual Games Industry Progress, Opportunities & Players

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Casual Games Industry Progress, Opportunities & Players. Three main areas of focus Connecting the Industry Action Groups Industry Education. Casual Games Association. Developers Publishers Distributors Portals Tools Industry Organizations PC Mobile Consoles EVERYONE. - PowerPoint PPT Presentation

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Page 1: Casual Games Industry Progress, Opportunities & Players

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Casual Games Industry

Progress, Opportunities & Players

Page 2: Casual Games Industry Progress, Opportunities & Players

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Casual Games Association

Three main areas of focus

• Connecting the Industry

• Action Groups

• Industry Education

Page 3: Casual Games Industry Progress, Opportunities & Players

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Casual Games Association - Connect: Everyone

DevelopersPublishersDistributorsPortalsToolsIndustry OrganizationsPCMobileConsoles

EVERYONE

Page 4: Casual Games Industry Progress, Opportunities & Players

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Casual Games Association -Connect: In All WaysConnecting the Casual Games Industry

• CGA Conferences: Kyiv, Amsterdam & Seattle

• Minna Mingle networking socials

• Action Group Meetings

• Industry Magazine

Page 5: Casual Games Industry Progress, Opportunities & Players

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Casual Games Industry

• Progress– Why are we Here?

• Opportunities– Current stable growth direction & revenues

• Players & Their Business Models

Page 6: Casual Games Industry Progress, Opportunities & Players

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Casual Games – Why Are We Here?

• Casual games are a big business—bigger, perhaps, than many people realize.

• Online download, subscription & advertising revenues reached – $713 million (USD) in 2005 and are estimated to

grow to– $1.56 billion (USD) in 2008.

• The casual games industry is maturing– Bigger budgets– DS, PSP, XBLA, Retail– Alternative revenue models

Page 7: Casual Games Industry Progress, Opportunities & Players

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Just the online casual space is….

• Bigger than EU & US MMO space• Bigger than Retail PC space

• About the same as:– The online US newspaper industry– 1 Month of US film box office sales– 2005 Music download sales– ½ of the 2006 Music download sales

• (10% of total music market)

– 1/15 of the US Fitness industry

Page 8: Casual Games Industry Progress, Opportunities & Players

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Casual Games – Hit Driven Market

• Sales distribution of downloadable games. Percentage of Units Sold– Top 5 Games 35%– Top 10 Games 60%– Top 20 Games 75%

• This shouldn’t be scary, but you must make high quality content to succeed

• High quality content is the KEY to a successful industry

Page 9: Casual Games Industry Progress, Opportunities & Players

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Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3

2003 2004 2005 2006

Nu

mb

er

of

Gam

es

Source: Compiled RealNetworks top-10 listingswww.game-sales-charts.com (by James Gwertzman)

Number of “Top 10” games released on RealNetworks (by quarter)

Casual Games – Getting Crowded

Page 10: Casual Games Industry Progress, Opportunities & Players

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Casual Games - Shorter shelf life…

Bejeweled

Ricochet Xtreme

ZumaSuper Collapse II

Gutterball 3DBejeweled II

BookwormPuzzle Inlay

Feeding Frenzy

Diner Dash

Cake Mania

Source: Compiled RealNetworks top-10 listingswww.game-sales-charts.com (by James Gwertzman)

Page 11: Casual Games Industry Progress, Opportunities & Players

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Money Facts – what you can you do

• 80-100 Million USD in 2006 for Israeli casual games companies

• PopCap Games’ 2006 consumer spend was approx 80 Million USD

• RealNetworks’ Q4 2006 revenue was 24 Million USD. 2006 revenue was 86 Million USD, a 53% increase over 2005.

• A “hit” downloadable game will sell approx 400K copies, 4-10 USD a copy = 1.6 – 4.0 Million in revenue.

Page 12: Casual Games Industry Progress, Opportunities & Players

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Casual Games & YOU!

Which brings us to…

• YOU contributing to creating high quality content is very important to the casual games industry’s (and your) success.

• Don’t assume that you can enter the market without hard work. The industry's growth hasn’t gone un-noticed.

Page 13: Casual Games Industry Progress, Opportunities & Players

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Casual Games Industry

• Progress– Why are we Here?

• Opportunities– Current stable growth direction (what is

working now)

• Players & Their Business Models

Page 14: Casual Games Industry Progress, Opportunities & Players

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Content is Queen

• The most successful and stable companies own IP

– They are taking in less money – and have more employees (and larger houses)

Page 15: Casual Games Industry Progress, Opportunities & Players

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Content Pipeline – how are they doing it?

• Create a number of prototypes (10-20)• Develop a downloadable casual game• Launch the casual game on their website

– Iterate as necessary• Broad portal launch• DS, PSP, XBLA, Retail, Mobile

– Puzzle Quest & Cake Mania are in the top 10 retail DS games (after 1st party games)

– PopCap Games is the #1 developer of XBLA games– Casual game shelf space is increasing at Retail– Bejeweled constituted 15% of Jamdat’s revenues before

their sale to EA

Page 16: Casual Games Industry Progress, Opportunities & Players

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Customer Interaction

• Being the go-to place is nice

– But it is hard to compete with portal destinations

Page 17: Casual Games Industry Progress, Opportunities & Players

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Customer facing – how they are doing it

• Custom store/user interface– User generated merchandizing– Traditional merchandizing

• Customer Acquisition– Purchase traffic– Internet Marketing– Build off of IP

• No one has made a successful “YouTube of games”

• Success: Pogo, Shockwave, Big Fish, PopCap

Page 18: Casual Games Industry Progress, Opportunities & Players

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A note about chasing YouTube …

• Think about how you listen to music –

• Think about how you watch to movies –

• Think about how you consume books –

• Think about how you play video games –

• Clubs – Theatre – Living Room/Den/Office• MTV – E Entertainment - G4• Amazon (30% of market)

Page 19: Casual Games Industry Progress, Opportunities & Players

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B2B - Technology

• Easier to enter

• Easier to flip

• Good place to enter market

• But is harder to maintain placement

• Most of Israel’s companies are here

Page 20: Casual Games Industry Progress, Opportunities & Players

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Opportunities

• Should you enter the market?

• Should you bank on growing the market?

• Should you expand?

• Should you try something new?

Page 21: Casual Games Industry Progress, Opportunities & Players

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Casual Games Industry

• Progress– Why are we Here?

• Opportunities– Current stable growth direction & revenues

• Players & Their Business Models

Page 22: Casual Games Industry Progress, Opportunities & Players

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Consumer Facing

• Non-portals– RealNetworks– Big Fish Games– Shockwave/Atom/MTV– MiniClip (webgames)– Pogo (subscription)

• Portals– Yahoo– Microsoft

Page 23: Casual Games Industry Progress, Opportunities & Players

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Content

• Big Fish Games • Sandlot Games • PopCap• MumboJumbo• Pogo• Reflexive• RealNetworks• MTV