winning the war: how to build a great game company presentation at casual connect seattle 2012

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WINNING THE WAR: HOW TO BUILD A GREAT SOCIAL GAME COMPANY Lloyd Melnick

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Presentation given at Casual Connect 2012 on how to build a great game company in the current environment. The good old days are over and building a great social game company is more difficult now than ever. Funding is not as easily available. Marketing is no longer just placing Facebook ads and counting the users. User acquisition overall is more costly. Game design is more complicated. Platform choice adds another risk factor. Exits are not easy to come by. In this presentation, I discuss how to navigate the social gaming terrain to create a successful company (and also help define success). I start by looking at what is attractive to investors and alternatives to traditional investment. I then analyze how to create an engaging and monetizing social game and how to choose a target platform(s). Then I review how you can get users for your games. Finally, I discuss the key issues in sustaining and growing your company so you reach your goals.

TRANSCRIPT

Page 1: Winning the War: How to Build a Great Game Company presentation at Casual Connect Seattle 2012

WINNING THE WAR:

HOW TO BUILD A GREAT

SOCIAL GAME

COMPANYLloyd Melnick

Page 2: Winning the War: How to Build a Great Game Company presentation at Casual Connect Seattle 2012

Agenda

Background

Success in social gaming

How to succeed

The Melnick Conundrum

Summary and QA

Page 3: Winning the War: How to Build a Great Game Company presentation at Casual Connect Seattle 2012

BACKGROUND

Page 4: Winning the War: How to Build a Great Game Company presentation at Casual Connect Seattle 2012

Lloyd Melnick

Page 5: Winning the War: How to Build a Great Game Company presentation at Casual Connect Seattle 2012

fiveonenine games

Page 6: Winning the War: How to Build a Great Game Company presentation at Casual Connect Seattle 2012

More stars than the Miami Heat

★ Ex-Studio Head of EA’s North Carolina office

★ Member founding management team at Motricity and Appia

★ Team lead at RIM’s NC studio

★ 20 year veteran of IBM/Microsoft/Citrix

★ GM Europe and LATAM at Disney/Playdom

★ Gardens of Time

★ Asheron’s Call 1 & 2

★ Shutter Island

★ City of Wonder

★ Dungeons & Dragons Online

★ Madden 3DS

★ Nascar Kart Racing Wii

★ Woodland Heroes

★ Lord of the Rings Online

Page 7: Winning the War: How to Build a Great Game Company presentation at Casual Connect Seattle 2012

Publishing and Developing

Launching publishing program this week

Campaign Story launches next month

Page 8: Winning the War: How to Build a Great Game Company presentation at Casual Connect Seattle 2012

SUCCESS IN SOCIAL GAMES

Page 9: Winning the War: How to Build a Great Game Company presentation at Casual Connect Seattle 2012

The odds

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25 % of games

succeed

Page 10: Winning the War: How to Build a Great Game Company presentation at Casual Connect Seattle 2012

Success is

Exit

Profitability

Survival

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Page 11: Winning the War: How to Build a Great Game Company presentation at Casual Connect Seattle 2012

Investors see success as

Exit ROI

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Page 12: Winning the War: How to Build a Great Game Company presentation at Casual Connect Seattle 2012

Investors criteria

ScalableHow

quickly you can grow

Unique Why youWhat is different

Valuation Potential return

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Page 13: Winning the War: How to Build a Great Game Company presentation at Casual Connect Seattle 2012

If institutional investors pass

Organic

Friends and family

Strategics

IP holders

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Page 14: Winning the War: How to Build a Great Game Company presentation at Casual Connect Seattle 2012

HOW TO SUCCEED

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Page 15: Winning the War: How to Build a Great Game Company presentation at Casual Connect Seattle 2012

LTV

Monetization

Retention

Engagement

Virality

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Page 16: Winning the War: How to Build a Great Game Company presentation at Casual Connect Seattle 2012

Monetization

Free-to-play

Part of the design

Support high-value customers

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Page 17: Winning the War: How to Build a Great Game Company presentation at Casual Connect Seattle 2012

Retention and engagement

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Page 18: Winning the War: How to Build a Great Game Company presentation at Casual Connect Seattle 2012

Virality

Hooks Reasons

Collaborative or PvP

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Page 19: Winning the War: How to Build a Great Game Company presentation at Casual Connect Seattle 2012

THE MELNICK CONUNDRUM

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Page 20: Winning the War: How to Build a Great Game Company presentation at Casual Connect Seattle 2012

Diversification versus Focus

Focus Diversification

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Page 21: Winning the War: How to Build a Great Game Company presentation at Casual Connect Seattle 2012

Portfolio theory

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Multiple titles

Reducing beta

Asset Allocation

Diversification RebalancingRegular

Investing

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Platform diversification

Facebook

iOS

Android

Win 8

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Focus

Competitive landscape

Free-to-play

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SUMMARY

Odds against you

Improve odds

Make great products

Focus and diversify

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Page 25: Winning the War: How to Build a Great Game Company presentation at Casual Connect Seattle 2012

Feel free to contact anytime

[email protected]

http://lloydmelnick.com/

@LloydMelnick

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