1. Art or Commerce Bruce Reilly President Mass Bay Marketing LLC

2. Art Or Commerce  Introduction  Review of Game Industry  The “Sales” Function  TerraGlyph Interactive Postmortem Or how to lose $30,000,000

3. Art Or Commerce  Development is compete  Now what?

4. Art or Commerce  How do we get to the consumer?  Who does that job…?

5. Who are you…?  Are you big? First Party – Hardware  Microsoft  Nintendo  Sony Third Party – Software Publisher  EA  Take Two

6. Who are you…?  Are you small…? Publisher Only Developer Only Contract Developer  Little room in the middle

7. Retail Channels  Top Five Accounts Wal-mart Best Buy Target Electronics Boutique Game Stop

8. Retail Channels  How much of the market do they control?

9. Top 5 Accounts  75% - 80% of total sales….

10. Art or Commerce  Before consumer ever sees the game these chain buyers are the gatekeepers…  Much more conservative now. Batman – Toys R US  Non risk takers

11. Art or Commerce  How are products selected? Reputation of Company  Only as good as last game Past Performance  Why sequels are king Expectation you can fix a problem  Price protection Marketing and Advertising funds

12. Art or Commerce  What doesn’t happen?  Buyers don’t play the games…often  Or have Spirited discussion of game play Care about the quality of graphics Story line Listen to the music

13. Art or Commerce  They must trust the person “selling” game Will ask your opinion…  Must believe “word of mouth” Can not be PR purchased  Must believe what they see E3 and Prototypes  Person who actually plays game

14. Art or Commerce  Why did I call this presentation Art or Commerce?  Aero The Acrobat Do I want to make money? Do I want to make art?  Must do both to survive and be successful!

15. Art or Commerce  TerraGlyph Interactive Postmortem $30,000,000 Loss  Lack of Time First 80% easy  Lack of Internal approval More like internal deception  Carnivale Beta

16. Art or Commerce  TerraGlyph Interactive Postmortem $30,000,000 Loss  Inadequate Content Pipeline  Large Team Problems  Crunch Time Absolutely Ruined families and friendships

17. Art or Commerce  TerraGlyph Interactive Postmortem $30,000,000 Loss  Technology / Performance “Thought I could do it…” Have to appreciate we tried…  Team Problems Who gets limited resources When technology waits for art  Quality/Bugs

18. Art or Commerce  TerraGlyph Interactive Postmortem $30,000,000 Loss  Publisher Interface “What does Disney know…” Contract versus reality  What does it all mean? How did your projects work…? Small versus large company

19. Art or Commerce  What does it mean to you…? Do it better Be smarter Take chances Don’t settle for the way it’s always been done…

20. Art or Commerce  For me…Solve this problem… The ability to allow customers and consumers to play the “game” in 30-45 days Cost no more than $100,000

21. Art or Commerce  Questions…