® an interactive light company gdc ’99 1 open arcade success story and case study joseph deutsch...

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GDC ’99 GDC ’99 11An Interactive Light company

Open ArcadeOpen ArcadeSuccess Story and Case StudySuccess Story and Case Study

Joseph DeutschPresident, Immersia Ltd.

Email: [email protected]

March 19th, 1999

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Interactive Light / ImmersiaInteractive Light / Immersia

Develops Open Arcade Architecture, PC-Develops Open Arcade Architecture, PC-based Game Platforms and games for based Game Platforms and games for Location Based EntertainmentLocation Based Entertainment

Has thousands of platforms installed Has thousands of platforms installed worldwideworldwide

Utilizes proprietary software and hardware Utilizes proprietary software and hardware technologiestechnologies

Provides tools for 3rd party developmentProvides tools for 3rd party development

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Coin-Op Market - Coin-Op Market - Facts & FiguresFacts & Figures

About 1.5 million games in locationsAbout 1.5 million games in locations Number of arcades: 6,500Number of arcades: 6,500 Number of FEC’s: 2,500Number of FEC’s: 2,500 Other locations: 210,000Other locations: 210,000 Industry gross annual income: $6.5 billionIndustry gross annual income: $6.5 billion Games in locations: 1.3 millionGames in locations: 1.3 million $750 million in equipment sales$750 million in equipment sales Overseas market is believed to be as largeOverseas market is believed to be as large

Source: Playmeter, 1998Source: Playmeter, 1998

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Coin-Op Market - Coin-Op Market - Industry PlayersIndustry Players

U.S. Coin Operated Video Game Market

Sega20%

Others17%

Capcom10%

Midway33%

Namco20%

Source: Wedbush Morgan Securities

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Coin-Op Market - Coin-Op Market - EconomicsEconomics

Declining number of units soldDeclining number of units soldDeclining profitsDeclining profitsEquipment gets more expensiveEquipment gets more expensiveClosed architectureClosed architectureDifficult ROI for operatorsDifficult ROI for operators

Inefficient economic modelInefficient economic model

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Coin-Op Market - Coin-Op Market - Current market stateCurrent market state

Large market dominated by small groupLarge market dominated by small groupDeclining profitsDeclining profitsNarrow demographicsNarrow demographicsClosed architectureClosed architectureExpensive equipment - difficult ROIExpensive equipment - difficult ROINeed unique experience (action, graphics)Need unique experience (action, graphics)Need strategy to extend earningsNeed strategy to extend earnings

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Open Arcade ArchitectureOpen Arcade ArchitectureOverviewOverview

Create a universal PC-based Coin-Op Create a universal PC-based Coin-Op platformplatform

Encourage hardware developers Encourage hardware developers Encourage software developersEncourage software developersStandardizationStandardizationCreate marketing opportunitiesCreate marketing opportunities

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Advantages of the PC platformAdvantages of the PC platform

Developers focus on content development Developers focus on content development and not hardware integrationand not hardware integration

Low-cost, multi source componentsLow-cost, multi source componentsEasy to maintain in the fieldEasy to maintain in the fieldOpen - Floppy, CD, InternetOpen - Floppy, CD, InternetUpgradableUpgradableEasy porting to consumerEasy porting to consumerRapid technology improvementsRapid technology improvements

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Interactive Light’s PhilosophyInteractive Light’s Philosophy

Develop enabling technology for OAA Develop enabling technology for OAA compliant PC-based Coin-Op platformscompliant PC-based Coin-Op platforms

Launch platforms with unique experienceLaunch platforms with unique experience– ActionAction

– GraphicsGraphics

Customize and enable advertisingCustomize and enable advertisingUpgrade platforms with new gamesUpgrade platforms with new gamesNetworkNetwork

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Traditional game incomeTraditional game income

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Strategy to increase earningsStrategy to increase earnings

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Interactive Light’s ProductsInteractive Light’s ProductsSwing-It - Swing-It - Bat swinging platformBat swinging platform

Current games:Current games:– Home Run DerbyHome Run Derby

– Pitcher’s DuelPitcher’s Duel

– Louisville Slugger Louisville Slugger TournamentTournament

Future upgrades:Future upgrades:– Golf drivingGolf driving

– Cricket ...Cricket ...

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Interactive Light’s Product’sInteractive Light’s Product’sKick-It - Kick-It - Ball kicking platformBall kicking platform

Current games:Current games:– SoccerSoccer

– CarniBallCarniBall

Future upgrades:Future upgrades:– Field goal kickingField goal kicking

– Kick Bowling ...Kick Bowling ...

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Interactive Light’s Product’sInteractive Light’s Product’sSlide-It - Puck slidingSlide-It - Puck sliding platform platform

Current games:Current games:– Puck BowlingPuck Bowling

– Survive-ItSurvive-It

Future upgrades:Future upgrades:– Flash bowlingFlash bowling

– SoccerSoccer

– Alien attack ...Alien attack ...

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Interactive Light’sInteractive Light’sOAA Platform TechnologiesOAA Platform Technologies

Intel’s OAA PC

Interactive Light’sGame Control Interface

Immersia’s Coin-Kit tm

Immersia’s Game-Kit tm

G SEA M G SEA M

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Game Control InterfaceGame Control Interface

Smart interface board for arcade peripheralsSmart interface board for arcade peripheralsExternal controller connected via serial port External controller connected via serial port

to host computerto host computerContains proprietary control software on Contains proprietary control software on

embedded EPROMembedded EPROMSupports most common arcade peripheralsSupports most common arcade peripherals

– Joystick, Trackball, Buttons, Lights, Coin Mech’sJoystick, Trackball, Buttons, Lights, Coin Mech’s Computer interface: RS-232 at 115kComputer interface: RS-232 at 115k Inputs: 16 (digital and analog)Inputs: 16 (digital and analog) Outputs: 12 (including high-current)Outputs: 12 (including high-current)

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Coming soon Coming soon ACT 2.0 Game Control Interface ACT 2.0 Game Control Interface

Supports additional peripherals:Supports additional peripherals:– Guns, Recoil, PedalsGuns, Recoil, Pedals

Computer interface: USB, RS-232 at 115kComputer interface: USB, RS-232 at 115kWatchdog timerWatchdog timerDigital inputs: 32 + 8 fast response inputsDigital inputs: 32 + 8 fast response inputsAnalog inputs: 16Analog inputs: 16Outputs: 14Outputs: 14High current outputs: 16High current outputs: 16

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Coin-KitCoin-Kit

Cross Platform software library for Coin-Op related Cross Platform software library for Coin-Op related aspectsaspects

PeripheralsPeripherals– Allows simple interface to all GCI featuresAllows simple interface to all GCI features

Operator menuOperator menu– Allows the operator to control entire game setupAllows the operator to control entire game setup

StatisticsStatistics– Complete platform and game statistics engineComplete platform and game statistics engine

SecuritySecurity– Prevents unauthorized use and distributionPrevents unauthorized use and distribution

– File encryptionFile encryption

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BenefitsBenefits

All features derived from field experienceAll features derived from field experienceReliable, tested in thousands of locations Reliable, tested in thousands of locations

worldwide for over 2 years.worldwide for over 2 years.Ready for use and deploymentReady for use and deploymentConstantly updated and upgradedConstantly updated and upgradedCross-platform (DOS, Win)Cross-platform (DOS, Win)– Linux in developmentLinux in development

Developers can concentrate on game Developers can concentrate on game content, instead of Coin-Op aspectscontent, instead of Coin-Op aspects

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Game-KitGame-Kit

Platform game SDK - enables easy development of new Platform game SDK - enables easy development of new games for our existing platformsgames for our existing platforms

Presents a complete arcade platformPresents a complete arcade platform– Coin-Kit, Graphics, sound, arcade engineCoin-Kit, Graphics, sound, arcade engine

Supports all our platformsSupports all our platforms– New platforms introduced every yearNew platforms introduced every year

Arcade platform managementArcade platform management–Multiple gamesMultiple games

– Attract mode, hall of fame, game selection …Attract mode, hall of fame, game selection …

Games are treated as plug-ins for Game-KitGames are treated as plug-ins for Game-Kit

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Game-Kit - BenefitsGame-Kit - Benefits

Easy development of new games for our Easy development of new games for our existing platformsexisting platforms

Sell immediatelySell immediately– Take advantage of installed baseTake advantage of installed base

Constantly updated and upgradedConstantly updated and upgradedCross-platform (DOS, Win)Cross-platform (DOS, Win)– Linux in developmentLinux in development

Developers can concentrate on game Developers can concentrate on game content, instead of arcade platform aspectscontent, instead of arcade platform aspects

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Case study #1:Case study #1: Kick-ItKick-It

Investment in new game “Carniball”: ~ $300,000

Over 1,000 Kick-It platforms sold

Soccer game used for launching platform

Assuming 75% penetration at $1,000 per game = over $750,000

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Case study #2:Case study #2: Slide-ItSlide-It

Investment in each new game up to: ~ $300,000

Over 4,000 Slide-It platforms planned to be installed in next two years.

Many more planned in following years.

Assuming 75% market penetration at $500 per game = over $1.5 million per game

Profit margins on software upgrades are LARGE

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3rd party licensing programs3rd party licensing programs

Program 1: Coin-Kit & Game Control InterfaceProgram 1: Coin-Kit & Game Control Interface– Receive tools to facilitate OAA PC as platformReceive tools to facilitate OAA PC as platform

Program 2: Game-KitProgram 2: Game-Kit– Develop new game titles for existing platformsDevelop new game titles for existing platforms

ContactsContacts

Interactive LightStuart WallockEmail: [email protected]: (310) 581-8411

ImmersiaJoseph DeutschEmail: [email protected]: (+972) 3-639-3483

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