1 casual games industry progress, opportunities & players
Post on 17-Dec-2015
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1
Casual Games Industry
Progress, Opportunities & Players
2
Casual Games Association
Three main areas of focus
• Connecting the Industry
• Action Groups
• Industry Education
3
Casual Games Association - Connect: Everyone
DevelopersPublishersDistributorsPortalsToolsIndustry OrganizationsPCMobileConsoles
EVERYONE
4
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
5
Casual Games Industry
• Progress– Why are we Here?
• Opportunities– Current stable growth direction & revenues
• Players & Their Business Models
6
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
7
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
8
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
9
0
10
20
30
40
50
60
70
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
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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)
11
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.
12
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.
13
Casual Games Industry
• Progress– Why are we Here?
• Opportunities– Current stable growth direction (what is
working now)
• Players & Their Business Models
14
Content is Queen
• The most successful and stable companies own IP
– They are taking in less money – and have more employees (and larger houses)
15
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
16
Customer Interaction
• Being the go-to place is nice
– But it is hard to compete with portal destinations
17
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
18
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)
19
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
20
Opportunities
• Should you enter the market?
• Should you bank on growing the market?
• Should you expand?
• Should you try something new?
21
Casual Games Industry
• Progress– Why are we Here?
• Opportunities– Current stable growth direction & revenues
• Players & Their Business Models
22
Consumer Facing
• Non-portals– RealNetworks– Big Fish Games– Shockwave/Atom/MTV– MiniClip (webgames)– Pogo (subscription)
• Portals– Yahoo– Microsoft
23
Content
• Big Fish Games • Sandlot Games • PopCap• MumboJumbo• Pogo• Reflexive• RealNetworks• MTV
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