the future of hinges on this...

Email: apu@bluestacks.com Twitter: @apu_kumar

http://www.bluestacks.com Mobile: +1 650.6199110

Apu Kumar Senior Vice President Chief Deal Hacker Game Console Designer BlueStacks & GamePop

PC Gaming

Summit

2013

MOBILE TH

E R

ISE

OF

The rise of smartphones and

tablets has caught the PC

world completely by surprise.

The PC ecosystem appears to

have a deer in headlight

reaction.

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2013 is on track for 1.4 Billion smartphones, with over 1 Billion smartphones powered by Android alone. These numbers are staggering and dwarf everything we’ve seen in the device space in the past 3 decades. This is total shock and awe!

MOBILE ENVY

Total Global Device Shipments in 2013 – IDF – August 2013

1400

Million Units

ARM ARM x86

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In stark contrast, PC shipments are probably going to stagnate around 315 million in 2013, down 9% year over year. While smartphones are on a tear, you will notice that tablets are continuing to grow just as fast as smartphones and could soon eclipse the PC.

TOP DOG

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Over the past 4 years, Windows is on a decline. Windows 8 did not live up to the hype. Android and iOS have captured the market and are sharing the spoils of a mobile-crazy world. Wintel stranglehold on personal computing devices is now shaky at best. This has opened the door for new players and new possibilities. The PC has failed to tame the beasts that are Android and iOS

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Yet another telling chart that clearly shows the changing of the guard. Windows has handed the baton to the mobile OSes. Google and Apple have a runaway lead and show no signs of slowing down. And the most amazing part is that it took just 4 years for the mobile OSes to knock down the incumbents. This is spectacular growth on an fantastic trajectory.

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The reversal in fortunes for the PC has resulted in declining shipments, disappearing profit margins and anemic earnings. This chart from IDC shows the worldwide PC shipments from 2011 through 2013. PC OEMs are struggling. Some of the largest brands have had to restructure. CEOs have resigned or have been replaced.

But it’s not all

DOOM & GLOOM

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But wait a minute. We are at the AMD summit focused on PCs. So why am I singing praises of smartphones and tablets? While PCs are on a decline, the situation is not all that bad

the PC is alive & well in and emerging

markets

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The reasons for this trend are not entirely clear, but it might have something to do with the fiscal situation that limits usage to 1 device per household in emerging markets, with multiple users in the household using the same device. Our own data from users of the BlueStacks App Player software clearly shows that the PC is the center of the household in China. Users there are heavily dependent on the PC to the point where they actually use the PC to download Android apps and then sync over to their smartphones via USB, as a workaround to reduce their mobile data costs.

BROWSE ON MOBILE

BUY ON PC

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In mature markets, the household comprises of many devices and many screens. Users are accustomed to playing games on multiple devices . I play Temple Run on my smartphone and my tablet and even on my PC. And the same holds true for content like movies and videos. Many of us watch Netflix and Hulu movies on our tablets, on our PCs and TVs. As for shopping, the trend is an interesting one. Consumers tend to search and browse products on phones and mobile devices, but when it comes to actual transactions, consumers prefer to use the PC for ecommerce. So the PC may not be the center of the universe in mature markets, but the PC has carved out its spot and is here to stay.

So how is the PC Ecosystem

RESPONDING ?!

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The PC ecosystem: x86 chipset designers, PC manufacturers, PC ODMs, PC software vendors, are acutely aware of the onslaught from smartphones and tablets. How are they responding? What do they foresee? What are they doing to improve their destiny?

PC Vendors and Chipset Makers

• Are busy with new PC designs Adding touch screens Increasing battery life Improving performance

• Ironically, every OEM is also adding Android tablets and phones to their existing PC portfolio !!

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Chipset vendors and PC OEMs are working feverishly to create ultra thin and light designs with touch screens. There is a manic focus on battery life to get to the magic 24 hour single-charge use. While touch, battery life and performance are the absolute right parameters to be focused on, this feels like an incremental approach and more of the same. Ironically, the very same PC OEMs are hedging their bets. While they are cranking out x86-based PCs, they are also investing in ARM-based smartphones and tablets running Android.

PC Vendors and Chipset Makers

• Are stuck between a rock and a hard place

Windows 8 has not been a great success

Windows 8.1 is just starting

Android tablets did not take off

Android smartphones are growing gangbusters

But not from the traditional PC brands

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Most PC OEMs that have ventured into Android smartphones are yet to make an impression, with the exception of Samsung, LG of course. So PC OEMs are now stuck between a rock and a hard place. Windows 8 did not work out as planned. Windows 8.1 provides marginal improvements but does not provide the warm fuzzies for the much needed turnaround. Growth in the PC business is as elusive as the Yeti.

But, what do consumers

REALLY WANT ?!

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Now that is the 100 Billion $ question : What do consumers really want? To fix the PC ecosystem, is important to truly get to know the consumer. So let’s try and understand the consumer.

Time Spent Online By Platform Smartphones and Tablets eclipse the PC

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Consumers spend an inordinate amount of time online. If you look at the devices used to get online and access the Internet, smartphones and tablets account for 82% of these devices. The PC is merely 18%. Online behaviors have dramatically shifted to mobile devices.

Apu Kumar | apu@bluestacks.com

Movies and video consumption accounts for the largest chunk of all online traffic. This behavior was predominantly a PC-based activity, but has now shifted to mobile devices - tablets, smartphones and game consoles. The PC is no longer the entertainment hub it once used to be.

Gaming, By Platform & Demographic Smartphones and Tablets eclipse the PC

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The world of gaming has gone through a complete change in the past 3 years. Gaming used to be the stronghold of the PC. Hardcore games were developed exclusively for powerful PC platforms. Stores like Steam thrived on sales of PC games. That is not true anymore. Today, very few game developers write games for PCs. Gaming has made a 180 degree shift to mobile. The most popular games are now on mobile first. Almost 80% of all age groups (18-24, 25-49, even 50+) are playing games on smartphones and tablets. The PC is down to 20% and dropping fast.

What Consumers Do • Consumers: Spend a lot more time on mobile devices Play games, casual and mid-core, on mobile Spend $$ in games and apps on mobile Use more apps than ever before Prefer apps over traditional web sites Consume media / video on mobile

But this mobile content is just

not available on PCs

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The answer is obvious

GREAT CONTENT

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So what do consumers really want? They want phenomenal content. They want useful apps. They want great games. And if we give this to them on their PCs, they will use the PC a lot more than they do today

25 BILLION

CONTENT & APPS

GR

OW

TH O

F M

OB

ILE

App Downloads

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The monetization of games and apps is driven by the laws of large numbers. The mobile app ecosystem has boomed from 100,000 to 250,000 to 1 Million apps in Google’s Play Store and in the Apple’s App Store. This growth in content has never been seen before. App developers and game developers gravitate towards demand and towards large installed bases. No one wants to write apps for platforms that are not selling.

2012

Embrace Mobile

Bridge the great divide

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The PC needs mobile content like a donut needs a hole, like the heart needs a beat, the ocean needs the tide and the body needs the soul. App developers will continue to write games and apps for mobile first. This is not going to change anytime soon. The mobile ecosystem will grown from 1 Million to 5 or 10 Million apps. The PC ecosystem can be smart about how we leverage this great content from mobile. We need to be able to embrace mobile content and bring it to the PC ecosystem.

THE PC 3 V

ECTO

RS

NEEDS TO EVOLVE ALONG

1

2 3

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Price is a very sensitive topic and affects the entire supply chain, from the chipset manufacturer, to the component suppliers and the branding companies. So I will stay out of this for now. Suffice it to say that there are smarter people out there who are trying to optimize the supply chain, price the PC correctly and make it more competitive at sub-$200 price points. But Content and Design are 2 topics that we would like to discuss and debate today.

CONTENT

2

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Many of the OEMs that I have met with over the past 2 years are acutely aware of the need for mobile content and mobile apps on PCs. They have spun up several projects in-house to understand mobile apps and to bring apps to PCs. Android has been the OS of choice because iOS is a closed ecosystem. The PC OEMs have primarily gone down 3 paths: (1) Android + Windows dual boot, (2) Android + Windows side by side and (3) Android apps embedded in Windows.

Bring Mobile Content to PC • The PC Ecosystem is actively trying to: Enable Android on PC

Bring mobile apps and content to PC

Bring mobile games to PC

• PC OEMs have gone down 3 paths: Android + Windows dual boot

Android + Windows side by side

Android apps embedded in Windows

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The End of Dual Boot How many personalities does a PC really need?

Win 8 Desktop Win 8 Modern

Dual Boot Android

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The End of Dual Boot How many personalities does a PC really need?

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Dual Boot is a simple solution with 2 operating systems on the same PC platform – in this case Windows 8 and Android. End users can select the OS to boot into when they turn on the PC. To switch to another OS, end users would need to reboot the PC and wait till the PC comes back up again – which could be several seconds or minutes even. This is a very painful process and a very jarring experience. To make things worse, dual boot creates 3 distinct personalities on the PC – the classic Windows 8 Desktop that we are all familiar with – the Windows 8 Modern or Metro UI that some of us are familiar with – and the classic Android UI from tablets and phones. And therein lies the problem. As the user of a dual boot PC, where should I go to find my apps? Will the apps I install in Android also show up on the classic desktop? Will I see modern tiles for Android apps? Can I set up my wireless in Windows and will Android pick up my wireless settings? Can I share files and photos between Android and Windows? The experience is all messed up. Consumers should not have to deal with all this.

At BlueStacks, we put on our thinking caps to solve these problems. Our solution is the BlueStacks App Player, a very unique technology to run Android and Windows side by side, i.e simultaneously on the PC. We allow users to create desktop shortcuts and modern tiles in Windows 8 for Android apps. We restrict wireless settings and other relevant settings to the host OS – namely Windows. We detect sensors like cameras, accelerometer, gyro, compass, and enable them for the Android apps the need sensors. We have smart key mappings that are useful for playing touch games on non-touch PCs. And we run Android games and app fast and full screen on the PC. The App Player won the Best of CES award. Some of the largest PC OEMs are shipping this product and many are planning to ship in the near future.

Android + Windows Side by Side

Apu Kumar | apu@bluestacks.com

Android Apps Embedded in Windows

Users just want their games, apps on PC. They want a seamless integrated experience with the same great content they already have on their mobile phones and tablets

Android games and apps in Windows 8 Modern UI with BlueStacks technology

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DESIGN

3

Design is paramount to creating a successful product. Design-centric thinking has made Apple what they are today. So what are our PC OEMs doing about designing great PCs today?

Convertibles. Off to the races…

Apu Kumar | apu@bluestacks.com

In the PC space, industrial design has progressed toward convertible form factors – also known as hybrid PCs or two in one PCs. This is an attempt to bring the goodness of mobile touch to the traditional laptop. By introducing touch screens and portable keyboards, the OEMs are hoping that consumers will see more value in PCs.

The Contorting Convertibles

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The PC OEMs are racing their convertibles trying to get ahead and one-up the other. We are starting to see all kinds of great designs and some very strange designs. Some OEMs have chosen to keep it simple and just peel away the laptop display from the keyboard. Others have chosen to research and invest in fancy hinge designs that will allow the screen to swivel or snap or contort till the PC turns into a tablet. It may be too early to tell what design approach will win, but it is refreshing to see the effort and focus on industrial design from the PC ecosystem.

The Next Great PC

• There is the need for phenomenal industrial design to create the perfect convertible or hybrid

• There is the need for all-day battery life combined with powerful processors and graphics, but this may not be enough

• There is the need for great content and great apps

• We truly need to think outside the proverbial box to design the next great PC

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So what is this mysterious device that consumers would adopt as a replacement for the traditional clamshell laptop? Is it the convertible? But industrial design is just the outer layer. Great design goes through all layers of the hardware and the software. And so we ask ourselves, will these convertibles really work? Just by adding a touch screen and a detachable keyboard, will users rush in drones to buy new PCs? Are convertibles the panacea for the PC industry?

Will you replace your laptop with a tablet?

When users were asked if a tablet could replace the laptop, 39% of users responded that tablets cannot replace laptops, they would expect to see another type of device to replace the laptop.

What if we started to tinker with

the 3-decade old PC architecture

What if we add an ARM chip to the x86 PC ?

What if we ran multiple OSes on the same PC and gave users all the apps and games they ever wanted?

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@b

luestacks.co

m

ARM SoC + x86 Platform

The ARM SoC would run Android apps to seamlessly merge the experience with the Windows OS on x86 PC

Will reveal at CES 2014

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So let’s think outside the box. Let’s revisit some of the core assumptions. Let’s try and do something crazy like adding an ARM core to the x86 chipset. ARM has been the bain of the existence of the x86 PC. ARM runs every smartphone and tablet – billions of devices globally. But what if ARM were not the enemy? What if we embraced ARM? What if we ran multiple OSes on the next great PC, with the most seamless experience, the very best performance, and the widest range of apps? We could easily bring a really simple and inexpensive ARM A9 SoC to the x86 PC. We could put this on the main board. Or it could be externally attached via USB. You will notice that the graphic to the left is blurred out. There is a reason for this. We are working very closely with AMD to build the next great PC and we want to show it off at CES 2014.

External USB with ARM core + Android

On-board USB with ARM core + Android

Best of Both Worlds

x86 PC, Windows 8

ARM SoC via USB

Embracing the ARM SoC and combining it with the traditional PC architecture would result in the most potent PC every designed

Apps would run natively on the ARM SoC. The visual experience would be seamlessly blended with Windows OS. App would show up as desktop icons or tiles in Metro

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Partnership with

AMD

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AMD named their annual summit after me !!

Apu Kumar | apu@bluestacks.com

To set the record straight, my name indeed is APU. This is not a marketing gimmick. My parents were not on the AMD founding team back in the day, even though some of my friends at AMD believe that I may have been conceived in one of their R&D labs. To that end, they ran a full ad campaign for me and they even named their annual event after me.

Totally awesome!

Be sure to stop by the AMD booth and BlueStacks booth at CES 2014

BlueStacks + AMD

• Well, turns out BlueStacks AMD as well

• We are collaborating with AMD at a strategic level to optimize the BlueStacks software for AMD’s next generation platforms and to create “Android-enabled” PCs with AMD

• The new version of BlueStacks for AMD platforms will be available in January 2014

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thank you danke ありがとうございました merci grazie 謝謝 gracias شکریہ감사합니다 תודהधन्यवाद

Apu Kumar Senior Vice President

Chief Deal Hacker Game Console Designer

BlueStacks

Email: apu@bluestacks.com Twitter: @apu_kumar

Website: http://www.bluestacks.com/ Mobile: +1 650.6199110