Games (r)evolution Lessons from gaming platforms past

Sebastien de Halleux Playfish Co-Founder / VP BD EAi

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Playfish creates social games

part of the family

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Solitary Social

Physical Digital

Products Services

$$ upfront $$ ongoing

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Before talking about the future Let’s rewind.

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0

5

10

15

20

25

1995 2000 2005

US Games Revenue (NPD) $ (Bn)

Games have grown through new platforms and hit titles

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Another way to tell the story access barriers

audience 50m 100m 1Bn 500m 10m

PS3

Xbox 360

Wii

iPhone / mobile Free-to-play / online / social

Lower cost

More real

More social

More immediate

“Moore’s law” of games industry

access barriers

0 time

audience

0 time

Video…

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As platforms evolve, games surface

snake java

apps

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As games evolve, brands surface

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a short story

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Top paid app in July 2008

iBeer by Hottrix Ent.

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Top paid app of 2008

Koi Pond by The Blimp Pilots

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Top grossing app of 2009 ?

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top 10 apps: 8 games, 7 brands

Friend-centric platforms

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Internet : 16m to 1.8 Bn in 15 years

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Online video: 0 to 150m (US) in 3y

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Social Games: 0 to 200m in 2 years

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Driven by social interaction

21 Photo credit: jay1441

Reaching friends, not gamers

More fun with friends

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Social design online

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Reaching users everywhere

Accelerating generations 17 yrs, 21 gens

1993 2010

1.5 yrs, 100+ gens

2008 2010

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strong franchises

large audience

real friends

fast iterations

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Where next?

Thousands of small developers

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Consolidate into a handful of leaders

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Rise of the billion $ franchise

15 million boxes

@ $60 per box

GTA

12 million

subs @

$12 per

month

WoW

100 million MAUs

@ ¢80

ARPU

200 million MAUs

@ ¢40

ARPU

Game X OR Game Y

1.8 billion web users

Audience (r)evolution

400m Facebook

MAUs

400m MAUs

Facebook

200m monthly players

100m MAUs game

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Social: joining the magic circle? Avatar Modern Warfare

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The demand curve again…

audience 50m 100m 1Bn 500m 10m

PS3

Xbox360

Wii

iPhone / mobile Free-to-play / online / social

access barriers

0 audience 50m 100m 1Bn 500m 10m

Likely industry trends

1. Brands on social networks

3. No more ‘social games’

2. ‘Social games’ consolidation

4. Innovation & growth

access barriers

Thank you! Sebastien de Halleux

Playfish Co-Founder / VP BD EAi