1. November 16-18 2006CGA Europe: East 2006 The Value Chain Portal: Dan Prigg Manager of Developer Relations, RealNetworks Publisher: David Nixon Studio Director, Oberon Games Sergei Avetikov IT-Territory Legal Support Moderator & Introduction: Gabe Zichermann CMO, Boonty Games

2. November 16-18 2006CGA Europe: East 2006 2 The American Value Chain DeveloperPublisher Distributor Portal Technology Provider

3. November 16-18 2006CGA Europe: East 2006 3 The American Value Chain Developer Publisher Distributor Portal Technology Provider

4. November 16-18 2006CGA Europe: East 2006 4 The Developer Makes Games: –Original Ideas –Work-for-Hire (someone else’s idea) Organizes all aspects of game development Usually absorbs development risk Examples: PopCap, Sandlot Studios, 20% $ Share

5. November 16-18 2006CGA Europe: East 2006 5 The American Value Chain Developer Publisher Distributor Portal Technology Provider

6. November 16-18 2006CGA Europe: East 2006 6 The Publisher Funds Games: –Original Ideas –Submissions from Developers Distributes & Markets Games –Pays for placement/arranges placement May also develop its own games Usually absorbs marketing risk Examples: Playfirst, Iwin, Oberon 15% $ Share

7. November 16-18 2006CGA Europe: East 2006 7 The American Value Chain DeveloperPublisher Distributor Portal Technology Provider

8. November 16-18 2006CGA Europe: East 2006 8 Distributors and Technology Provides Technologies: –DRM, E-Commerce, Tracking –Sometimes Development Technologies Provides second-tier distribution –Aggregating smaller websites together –Sometimes first-tier –Manage financial and customer support Often combined into one entity Usually absorbs bandwidth/commerce risk Examples: Macrovision, Boonty, Digital River 15% $ Share

9. November 16-18 2006CGA Europe: East 2006 9 Portals Deliver Customers –Traffic aggregation, targeting, development Manage Customer Service and Commerce –Take transaction, disburse payments –Coordinate customer service Direct to Consumer Marketing Programs Usually absorbs consumer risk Examples: Real, Yahoo!, MSN, Shockwave 50% $ Share

10. November 16-18 2006CGA Europe: East 2006 10 Changes/Trends Developers  Publishing Publishers  Direct to Consumer Publishers  Growing by Acquisition Distribution & Technology  Together Portals  Developing In-House Portals  Combining for Greater Revenue

11. November 16-18 2006CGA Europe: East 2006 11 Opportunities for You Self-Publish –Most control, Own IP –Portal Relationships are challenging Work for Hire –Leverage Publishers for Immediate Revenue –Least Creative Input Develop Direct to Consumer Offerings –Control and Revenues –Costly to start

12. November 16-18 2006CGA Europe: East 2006 12 The American Value Chain - Discussion DeveloperPublisher Distributor Portal Technology Provider

13. November 16-18 2006CGA Europe: East 2006 Thank You! Portal: Dan Prigg Manager of Developer Relations, RealNetworks Publisher: David Nixon Studio Director, Oberon Games Sergei Avetikov IT-Territory Legal Support Moderator & Introduction: Gabe Zichermann CMO, Boonty Games