1 Casual Games: Where It’s All Going Rob Glaser Founder & CEO, RealNetworks.

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Presentation transcript:

1 Casual Games: Where It’s All Going Rob Glaser Founder & CEO, RealNetworks

2 Where It All Started

3

4

5 Games For The Rest of Us

6 Why Did It Take So Long? Before the Internet: No easy way to try casual games No dedicated place to learn about & buy them Lots of shovelware In the early Internet period: Web games became popular, but advertising didn’t work well, so no way to get paid! Not enough bandwidth for easy downloading

7 Broadband To The Rescue! US Households with Broadband Sources: Jupiter Internet Access Model, Updated 2005 (US Only) (millions)

8 Great Growth Potential Worldwide Source: eMarketer, May 2005 Total Worldwide Internet Users 845M Current Broadband Subscribers 194M

9 Where We Are Today Industry-standard Try-Before-You-Buy model has yielded a robust PC download business Dozens of successful individual games Profitable subscription services Growing customer bases in 3 regions North America, Europe, and Japan Real downloads over 750,000 games a day

10 Challenges And Opportunities Integrating with off-line properties New ways to monetize game play New connected platforms New markets & new interaction models

11

12 The 98% Opportunity 750,000 downloads/day, but Only 2% result in a consumer paying for a game Early ad models didn’t work because either Consumers found the ads intrusive, or Consumers ignored the ads

13 The 98% Solution: Advertising Done Right Ads *must* be designed right, not overly intrusive Ads *must* feel contextually correct -- sponsorships, skinning, and product placement are all parts of good execution. Fortunately, a successful model to build on: Clicktopia – our Dutch online game experience

14 Pre-roll Banner

15 New Banner Reminder

16 Original Banner Leave Behind

17 Integrating Ads into Downloadable Games Rich media between game levels Real partnership with Eyeblaster We will test & try multiple models “Extra” free game-play Full free games for library games Other windowing models

18

19

20 Casual Games & New Platforms Mobile Next generation handhelds Next generation consoles

21 Mobile is a Great Opportunity Massive number of IP-enabled devices The ultimate go-everywhere device Casual games are a great fit with the constraints of mobile phones Small screens Relatively slow processors 70.5% of mobile game revenue is in casual games

22 Luxor and Other Great Casual Games are Leading the Way

23 Device fragmentation But, 2 Big Issues Off-deck/D2C is a ball-buster

24 EMERGE -- Our Solution to Fragmentation Panasonic X60Nokia 3200 From a single code base, EMERGE supports Over 300 handsets (BREW and J2ME) More than 100 carriers 11 languages Some features filtered out to find the optimized balance for each handset to create as rich a user experience as possible SonyEricsson F5001

25 How EMERGE Can Work For You EMERGE dramatically reduces porting costs 1/3 or less compared to other porting methods Currently partnering with game developers: For More Information:

26 Nintendo on DS/Train your Brain is Capitalizing on the Health and Education Benefits of Casual Games Current research opens even more markets and opportunities – games are good for your health! Research has shown that gaming activity that uses problem solving skills will slow age-related declines in mental ability. Gaming has also been shown to help with pain management and education

27 XBOX 360 Live Arcade Bringing the casual download model to the console It’s early, but conversion to purchase is encouraging Xbox is bringing a new demographic to casual games The hardened gamer stops slaying dragons to play a game of Uno? Yes…

28 Casual Games & Community What is it? Shared high scores IM and chat around or during game User generated content Message boards Ratings Multiplayer games Competitive Collaborative Different users have different goals and desires Key is to offer a wide range of choices Now is the time to experiment

29 Learning From Around the World

30 Model is to Pay for Items & Social Status, Not Basic Game-play

31 Casual Games: Ready for Prime-time Together, we’ve built a very successful PC games business Major growth opportunities in many dimensions: PC ad-supported Casual Games done right Mobile and Next Gen Handhelds & Consoles New underlying models around community & social status Worldwide Growth While there are challenges, if we work together the future opportunity is limitless!