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Casual Games: Where It’s All Going. Rob Glaser Founder & CEO, RealNetworks. Where It All Started. Games For The Rest of Us. 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

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Casual Games: Where It’s All Going


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casual games where it s all going

Casual Games: Where It’s All Going

Rob Glaser

Founder & CEO, RealNetworks

1

why did it take so long
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

6

slide7

Broadband To The Rescue!US Households with Broadband

(millions)

Sources: Jupiter Internet Access Model, Updated 2005 (US Only)

7

great growth potential worldwide

Total Worldwide Internet Users 845M

Current Broadband Subscribers194M

Great Growth Potential Worldwide

Source: eMarketer, May 2005

8

where we are today
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

9

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

10

the 98 opportunity
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

12

the 98 solution advertising done right
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

13

slide14

Banner

Pre-roll

14

slide15

New

Banner

Reminder

15

slide16

Original

Banner

Leave

Behind

16

integrating ads into downloadable games
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

17

casual games new platforms
Casual Games & New Platforms
  • Mobile
  • Next generation handhelds
  • Next generation consoles

20

mobile is a great opportunity
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

21

emerge our solution to fragmentation
EMERGE -- Our Solution to Fragmentation
  • 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

Panasonic X60

Nokia 3200

SonyEricsson F5001

24

how emerge can work for you
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: http://mrgoodliving.com/emerge

25

slide26
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

26

xbox 360 live arcade
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…

27

casual games community
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

28

casual games ready for prime time
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!

31