2. Browser vs. Client-based Freetoplay MMOs Jonah Hong (Symbeyond) and Frank Cartwright (GamersFirst)

3. Jonah Hong

4. Frank Cartwright  VP, Product, Platform Development and Digital Marketing at Gamersfirst.  VP Online Entertainment at GSN Television Network  VP, Product Development and Engineering at Global Gaming League (GGL)  VP, Production for SkillJam Technologies (Liberty Media Company)  Disney Internet Group (DIG) - Created Disney’s online, multi-player gaming platform along with dozens of games.  Began 15 year career in gaming in 1995 on PC CD-Rom game developed for Turner Interactive called DINOTOPIA.

5. Overview  Based on a panel from GDC Europe where participants included  Kevin Xu (IGG Inc.)  Rob Ollett (Bigpoint International)  Patrick Streppel (gamigo AG)  Markus Buchtmann (SevenOne Intermedia)  Frank Cartwright (K2 Network GamersFirst)

6. Portfolio Trends  GamersFirst –  Current - 12 games (9 client, 3 browser)  Last Year - Added browser in last year  Going Forward - 50/50  IGG  Current - 25 games (12 client, 5 browser 8 Social)  Last Year - Browser and Social games  Going Forward - Same percentage

7. Portfolio Trends  Proseiben/SevenGames  Current - 28 Games(20 browser / 8 client)  Last Year – 2 nd year of Browser Games  Going Forward – More focused on browser  Gamigo  Current - 15 Client Games  Last Year - Moving towards browser  Going Forward – 75/25 Browser

8. Portfolio Trends  Bigpoint  Current - 5 client the rest Browser  Last Year – Started Client  Going Forward - Primarily Browser

9. Why Browser?  Greater Accessibility  Smaller Download  Less funnel friction  No native installation  Lower Development Cost (Godswar only $800k USD)  Quicker ROI

10. Why Client?  Higher Quality  Longer Tail  Proven Monetization  Higher ARPU  $40 for client vs <$10 for browser

11. User Acquisition / Conversion to Pay  All agree that funnel is better browser games.  Client 2-6% conversion to paying users (IGG/GamersFirst)

12. Download Size  Client games currently 500MB – >10GB  Max Size Depends on Demographic and Location  US/EU Core Games < 2GB  US/EU Casual Games < 1GB (pref. < 500MB)

13. Quality  Browser  Has improved at greater rate than client games over the last 2 years.  Better fit for casual and social games  Will continue to close the gap.  Client  Still better especially for core games  Engines like Unreal 3 continue to break new ground.

14. Browser Platforms  Flash – Will continue to lose marketshare  Unity – Emerging as the clear leader and best technology  Trinigy – Good technology but may not be able catch up with Unity

15. Publisher/Developer Integration  Browser games much easier  Browser game developers usually much more familiar with web technologies and therefore the integration with publisher.  Less risk and barriers to easily makes enhancements and changes.

16. Multiplatform  Browser games have clear edge.  Client games are very customized  A big contributor to the strength of Unity is the cross-platform support including iPhone.  Mitigates risk by not forcing a choice of type of platform to target.

17. Fraud, Hacking and Trust  Users feel much more comfortable with browser games since they are not installing native code  Equal opportunity for fraud and hacking.  Less control with browser games if exploit leverages browser layer.

18. Hybrid  New opportunity  Start on browser  Committed players move to larger client-based version

19. Conclusion  Trend is moving towards browser  Client not going away  There is much browser games can learn from client monetization  Huge opportunity for disruptive hybrid model.

20. Contact  Jonah Hong  Frank Cartwright  frank@gamersfirst.com frank@gamersfirst.com  310-902-6613

21. Thank You GDC China