Transcript
Page 1: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

Game Creation for Everyone.

Page 2: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

GameSalad

Overview

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Shameless Plug - GameSalad

Industry Overview

Quick History of Video Games

Austin Game Industry

Industry Upheaval

Opportunity

Investment Considerations

Page 3: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

GameSalad

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Page 4: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

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.

Page 5: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

Industry Overview

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Page 6: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

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.

Page 7: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

GameSalad

Video Game Market per Region

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Page 8: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

GameSalad

Market Segment

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Page 9: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

GameSalad

Global Player Base

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Page 10: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

Quick History of Video Games

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Page 11: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

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

Page 12: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

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

Page 13: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

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

Page 14: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

GameSalad

2000s

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XBox 360 & Playstation 3

iPhone and Android

Facebook & browser based gaming

Asia

Page 15: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

GameSalad

Almost Forgot: Handheld Gaming

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Page 16: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

Austin Game Industry

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Page 17: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

GameSalad

Austin Game Industry

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Page 18: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

GameSalad

Austin Game Industry

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Page 19: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

GameSalad

Captivate!

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Page 20: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

GameSalad

Austin Companies

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Page 21: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

GameSalad

Education in Gaming

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Page 22: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

Game Industry Upheaval

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Page 23: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

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

Page 24: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

GameSalad

Traditional Publishing Flow

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Game Developers Game Publishers

Game Players

Game Retailers

Page 25: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

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

Page 26: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

GameSalad

Adoption of Smartphones

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Page 27: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

GameSalad

Growth of Smartphone Usage

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Page 28: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

GameSalad

Mobile Gaming Growth

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Page 29: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

GameSalad

Mobile Games and Purchasers

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Page 30: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

GameSalad

Free to Play - In App Purchase

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Page 31: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

GameSalad

Free to Play - Growth of Model

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Page 32: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

GameSalad

In Game Advertising

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Page 33: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

GameSalad

Digital Distribution

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Page 34: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

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

Page 35: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

GameSalad

Data Driven Design

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Page 36: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

GameSalad

New Console Generation

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Page 37: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

Opportunity

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Page 38: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

GameSalad

Big $$$ for the Top Games

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Page 39: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

GameSalad

Mobile Gaming

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Page 40: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

GameSalad

Mobile Gaming Growth

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Page 41: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

GameSalad

Video Game Dev Costs

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Page 42: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

GameSalad

But Lots of Competition

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Over 800,000 Apps in the iOS Store

Page 43: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

Investment

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Page 44: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

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

Page 45: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

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

Page 46: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

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

Page 47: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

GameSalad

Thanks!

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Page 48: Background to Investing in Video Games.  Presented to the Austin Open Angel Network

Game Creation for Everyone


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