There are only 3 business models in the world Sell Rent/Lease Give Away

Casual Games Were Born in the Recession

December, 2001 Ad market collapsed Tech economy in recession No funding Try Before You Buy Casual Game Industry Takes Off

Why recession + TBYB? Like Google AdWords: Risk-sharing Portal Customer Strength: higher share Weakness: less predictability, poor conversion (1%)

Then, the market improved Advertising resurgence Other models explored Mostly to recoup 99% of TBYB “waste”

Korea/China: Freemium Combine free & sell Give away the basic app Sell to engaged/power users Sell customization When you think about it: a lot like try before you buy…differently packaged

Expanded on by a lesson from core games Sell the app and sell premiums

Feel inferior? Subscriptions = great recurring revenue Chugging along Bad comparison: Cost of acquisition = high Critical mass required

THEN CAME STEVE

Rules Changing Again: Microsales are real iPhone and other mobile platforms mean microtx are upon us Great opportunity for game devs Shape the dialogue – get involved Mobile phones may be payment mechanism, platform or both

However: no ad oppty

Unless you’re top ten

What hasn’t worked (for revenue)? Charge by minute Casual game rentals (true sense) Facebook/Soc Net games for most developers Non-smartphone mobile for indie developers Fully ad-supported large-scale casual

The magic numbers 60/40 (70/30)