background to investing in video games. presented to the austin open angel network

Game Creation for Everyone.

GameSalad

Overview

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Shameless Plug - GameSalad

Industry Overview

Quick History of Video Games

Austin Game Industry

Industry Upheaval

Opportunity

Investment Considerations

GameSalad

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GameSalad

GameSalad: A Professional Tool for Everyone!

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65 Top 100games in the US App Store

500,000developers

11,000iOS games

100,000total games

World’s Fastest App Creation Engine

No Coding Required! Drag & Drop Interface

Powerful, Professional Tool

Multi platform: iOS, Android, Web & Win8

GameSalad allows developers to quickly create successful games for iOS, Android & HTML5 without having to write a single line of code.

Industry Overview

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GameSalad

Global Games Market Today

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Video game

revenues will grow

to $70.4 billion

worldwide this year,

representing a  6%

year-on-year

increase.

The number of

gamers is expected

to surpass 1.2 billion

by the end of the

year.

GameSalad

Video Game Market per Region

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GameSalad

Market Segment

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GameSalad

Global Player Base

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Quick History of Video Games

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GameSalad

1970s

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1st video game launched in 1971

Atari released Pong in 1972

Space Invaders (1978) - 360,000 cabinets and $2B

Atari 2600 (1977) - home video game market

GameSalad

1980s

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“Golden Age” of video arcades

Arcades $8B revenue 1982 (more than pop music & film combined)

Pac Man - $1B in 1980 (350,000 cabinets)

The Crash - 1983

Nintendo Entertainment System

GameSalad

1990s

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New tech - CDs, 3D graphics, new CPUs

1998 Revenues - $30B worldwide

Start of mobile gaming

Emergence of internet and competitive gaming

GameSalad

2000s

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XBox 360 & Playstation 3

iPhone and Android

Facebook & browser based gaming

Asia

GameSalad

Almost Forgot: Handheld Gaming

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Austin Game Industry

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GameSalad

Austin Game Industry

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GameSalad

Austin Game Industry

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GameSalad

Captivate!

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GameSalad

Austin Companies

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GameSalad

Education in Gaming

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Game Industry Upheaval

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GameSalad

Game Industry Upheaval

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Social Gaming (Facebook)

Mobile Gaming (Smart Phones)

Rise of Free to Play & Virtual Goods

In Game Advertising

Digital Distribution

Gaming as a Service

Data Driven Design

New Console Generation

GameSalad

Traditional Publishing Flow

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Game Developers Game Publishers

Game Players

Game Retailers

GameSalad

Social Gaming

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New gamers and mechanics

Easy to play * no winner/loser

Viral elements (play with your friends)

Free to play and virtual goods

New game platform

GameSalad

Adoption of Smartphones

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GameSalad

Growth of Smartphone Usage

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GameSalad

Mobile Gaming Growth

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GameSalad

Mobile Games and Purchasers

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GameSalad

Free to Play - In App Purchase

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GameSalad

Free to Play - Growth of Model

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GameSalad

In Game Advertising

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GameSalad

Digital Distribution

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GameSalad

Gaming as a Service

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Device and Platform Agnostic

Increase Engagement and Stickiness

Improve Monetization

EA Origin & Valve’s “STEAM”

MMOs

Downloadable Content

GameSalad

Data Driven Design

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GameSalad

New Console Generation

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Opportunity

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GameSalad

Big $$$ for the Top Games

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GameSalad

Mobile Gaming

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GameSalad

Mobile Gaming Growth

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GameSalad

Video Game Dev Costs

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GameSalad

But Lots of Competition

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Over 800,000 Apps in the iOS Store

Investment

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GameSalad

Kickstarter

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Pre-sales reduce risk

3/4 of video game Kickstarters fail

Most video game fundraising is in 10s of thousands

GameSalad

Gaming is (Still) a Great Bet!

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Virtually unopposed growth opportunity

** Big publishers are distracted by new consoles

Plenty of “Blue Water” opportunities

** Opportunity to define a genre

Chance to go global

** China, Japan and Korea - high Android adoption

Unprecedented Margins

** Low headcount - can get to profit quickly

M&A / IPO Markets

** While Zynga has slowed things down, it will be back

GameSalad

Investment Considerations

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Passion: business or gaming or both?

Team

Game - Hit Driven Industry

Monetization

Kickstarter

Data / Live Game Management

Distribution

Localization

Revenue Source

Company

GameSalad

Thanks!

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Game Creation for Everyone