© 2010 playphone inc. product and company names mentioned herein may be a trademark or trade names...

© 2010 PlayPhone Inc. Product and company names mentioned herein may be a trademark or trade names of their respective owners. Artist names and images are for identification purposes only. All Rights Reserved.

CASUAL CONNECTHamburg 2011

“New Mobile Social Game Platforms for the Mass-market Audience”

Anders EvjuSVP & General Manager

PlayPhone Social

PLAYPHONE INC.


Social Gaming for Mobile is here!


Mobile Social Gaming Opportunity

• Freemium Mobile game Revenues to reach $14Bn in 2014: Juniper Research• DeNA generated $700m from Freemium games in 2010• Gree announces Q3’10 Mobile Social gaming revenues of $105m• PopCap announced 25% of its revenues came from in game mobile transactions in 2010• China’s TenCent announces that its 41% growth in VAS revenues in H1 2010 are due to Mobile Social

Games• Glu moves to Freemium Gaming & announces Facebook version of mobile version• 65% of all iPhone/iPod games in H2 2010 were Freemium with in App Monetisation• In App Purchases growing dramatically accounted for 80% of all freemium iOS Revenues in September

2010 (see Below)

Feverish deal making!• DeNA buys Ngmoco• EA buys Playfish • Disney buys Playdom• Much VC activity and M&A

discussions


But…It all starts in Japan…..!

Japan has been always ahead of the West by 3 to 5 years in mobile

• 1999: NTT DoCoMo blew our doors off when they launched i-Mode, they started what we all wanted to copy; a full content store on a mobile device

• 2000/2001: Color phones and camera features appeared already in 2000 on the Japanese Operators followed by color video functionality in 2001

• 2008: Gaming was a dominant entertainment already in the early 2000’s, and Social Gaming on Mobile appeared already in 2008

• 2009/2010 mobile social games sales: Japan huge momentum with companies going public and generating millions of dollars per month, versus the West where mobile social games was an infant stage with basically no revenue.

• 2009/2010 mobile carrier transaction fees: Japan mobile carriers charge below 10% for mobile payment transactions, versus the West carriers that charge in average over 40% for the same mobile transactions.


Tanaka Yoshikazu

DeNA

Mark Zuckerberg

heard of these companies…?


They are creating a new world…

Interesting Comparison..Electronic Arts current

valuation $5.5B…

DeNA valuation US$3.9B +

GREE valuation US$4.0B +


1

2

What is driving this success?


The Western World…

…..the opportunity is here now


How about MOBILE social gaming market growth? 2009 = almost nothing2012 = US$3.0B ++ ??I believe this is possible!

Social Games

US$3.0B


All the signs are here

This WILL happen……


• Gaming on Social Networks has created a new industry• Huge valuations• ZYNGA: estimated valuation = $1B, $2B, name your price?• PlayFish: Acquired by EA for as much as $600 mil • Playdom: Acquired by Disney for as much as $763mil

• It is estimated that 10% of all Americans have played Farmville…!

All signals are here…….


Are we ready for mobile social games? All signals are here…

• Smartphones are taking over. 70% of Mobile subscribers are projected to have a Smartphone by end of 2015

• Apple users download over 10 apps each • Smartphones are now a Mobile Multimedia Device

with power and graphics and connectivity of a PC• The Mobile Audience/Demographics are similar to

facebook audience • Virtual Goods adaptation is growing rapidly• Mobile payments are quick and easy• No apparent winners in the Western Markets at

present but space is receiving much attention

• Japanese companies are quickly entering the Western markets validating the opportunity……


Introducing PlayPhone Social


But first, Who is PlayPhone?


PlayPhone Introduction

• True global direct to consumer mobile entertainment company. Reaching 1B mobile users

• Well known for delivering quality mobile entertainment content. 200,000 titles (Games, Social Games, Music, Ringtones, Images, Video, Text and Applications)

• Headquartered in Silicon Valley with w/offices in London - São Paulo – Tokyo - Beijing - Buenos Aires. 150 employees

• Groundbreaking platform focus on “freemium” model called PlayPhone Social

• Funded by 4 top US Venture Capital firms with over US$5 Billion under management

Net Revenues have grown over 200% per year since 2005

US$48 Million in 2008 US$95 Million in 2009


Best Premium Mobile Assets

Ringtones (music tones)Games

Wallpapers Videos


In-store signage

Wal-Mart Mobile Channels

18


Internet Ads


TV Ads:• Over 40 unique TV advertisements created in the last 12

months• Over 2,000 TV Advertisements per month on major networks

worldwide

Real Life Examples:• http://www.youtube.com/user/Playphonebrasil#p/u/8/_UfS67xTUvs• http://www.youtube.com/user/Playphonebrasil#p/u/1/hwMLfKhmTyQ• http://www.youtube.com/watch?v=3ckx6OI9zDM

Reaching the Consumer

PlayPhone has a massive ability to reach consumers

http://www.youtube.com/user/Playphonebrasil#p/u/8/_UfS67xTUvs

http://www.youtube.com/user/Playphonebrasil

http://www.youtube.com/watch?v=3ckx6OI9zDM


Why PlayPhone Social?

Providing Global Smartphone Distribution for Mobile Game Developers

• Monetization Mechanisms– Virtual Currency & Goods, Micro transactions– App Store, Android Market, PSMS, Subscription billing, PayPal, Credit Cards

• Social Graph– Friends

• Community Features– Loyalty Programs– Prizes

• Extensive support through PlayPhone’s Marketing Machine• Extensive Distribution….just about everywhere…• Seamless integration of Ad Partners (TapJoy, etc)

• Easy SDK Tools– Native iOS & Android– Web Browser (HTML5) for iOS and Android


PlayPhone Social Ecosystem

SDK for Android,

iPhone and Mobile Web

games


PlayPhone Social: Key Features Introduction

• Multi-Payment Support

• Achievements

• Leaderboards

• Ad Platform

• Friends

• Multiplayer

• Cross-Compatible

• Virtual Currency & Goods


Easy Game Sign-Up

PlayPhone Social Platform


Easy To Invite Friends

PlayPhone Social Platform


PlayPhone Social

Promoting the Best Content through The Store Front


Community

Import your Social Graph

known Social Networks API’s

Simple and intuitive


• Reward users for multiple friend

referrals• Reward for repeat engagement with

games• Frequent events and promotions

encourage retention• Prizes & Tournaments• Convert early adopters to

evangelists• Real-time dialog via forums, SMS

and email builds trust and solicits feedback

• Comprehensive Avatar builder with more than 10k virtual items (coming Q2’11)

Community


PlayPhone Social

Billboard example on driving users to PlayPhone Social Using existing PlayPhone Marketing Techniques!


The BIG question..

Are you making money today in mobile social games… If not, talk to me!

Thank You!

Anders Evju

© 2010 playphone inc. product and company names mentioned herein may be a trademark or trade names...

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