Embed Size (px)
DESCRIPTION
An August 2013 presentation to the members of the Texas Open Angel Network. Key topics include the history of video games, the Austin game industry, recent changes to technology and markets resulting in industry upheaval (social and mobile gaming), the opportunity present in video game investing and various investment considerations (such as passion for games, team, monetization strategy, live game management, big data, distribution and localization). Additional topics covered include gaming as a service, free to play video games, and the use of Kickstarter to support game development.
Citation preview
Game Creation for Everyone.
GameSalad
Overview
2
Shameless Plug - GameSalad
Industry Overview
Quick History of Video Games
Austin Game Industry
Industry Upheaval
Opportunity
Investment Considerations
GameSalad
3
GameSalad
GameSalad: A Professional Tool for Everyone!
4
65 Top 100games in the US App Store
500,000developers
11,000iOS games
100,000total games
World’s Fastest App Creation Engine
No Coding Required! Drag & Drop Interface
Powerful, Professional Tool
Multi platform: iOS, Android, Web & Win8
GameSalad allows developers to quickly create successful games for iOS, Android & HTML5 without having to write a single line of code.
Industry Overview
5
GameSalad
Global Games Market Today
6
Video game
revenues will grow
to $70.4 billion
worldwide this year,
representing a 6%
year-on-year
increase.
The number of
gamers is expected
to surpass 1.2 billion
by the end of the
year.
GameSalad
Video Game Market per Region
7
GameSalad
Market Segment
8
GameSalad
Global Player Base
9
Quick History of Video Games
10
GameSalad
1970s
11
1st video game launched in 1971
Atari released Pong in 1972
Space Invaders (1978) - 360,000 cabinets and $2B
Atari 2600 (1977) - home video game market
GameSalad
1980s
12
“Golden Age” of video arcades
Arcades $8B revenue 1982 (more than pop music & film combined)
Pac Man - $1B in 1980 (350,000 cabinets)
The Crash - 1983
Nintendo Entertainment System
GameSalad
1990s
13
New tech - CDs, 3D graphics, new CPUs
1998 Revenues - $30B worldwide
Start of mobile gaming
Emergence of internet and competitive gaming
GameSalad
2000s
14
XBox 360 & Playstation 3
iPhone and Android
Facebook & browser based gaming
Asia
GameSalad
Almost Forgot: Handheld Gaming
15
Austin Game Industry
16
GameSalad
Austin Game Industry
17
GameSalad
Austin Game Industry
18
GameSalad
Captivate!
19
GameSalad
Austin Companies
20
GameSalad
Education in Gaming
21
Game Industry Upheaval
22
GameSalad
Game Industry Upheaval
23
Social Gaming (Facebook)
Mobile Gaming (Smart Phones)
Rise of Free to Play & Virtual Goods
In Game Advertising
Digital Distribution
Gaming as a Service
Data Driven Design
New Console Generation
GameSalad
Traditional Publishing Flow
24
Game Developers Game Publishers
Game Players
Game Retailers
GameSalad
Social Gaming
25
New gamers and mechanics
Easy to play * no winner/loser
Viral elements (play with your friends)
Free to play and virtual goods
New game platform
GameSalad
Adoption of Smartphones
26
GameSalad
Growth of Smartphone Usage
27
GameSalad
Mobile Gaming Growth
28
GameSalad
Mobile Games and Purchasers
29
GameSalad
Free to Play - In App Purchase
30
GameSalad
Free to Play - Growth of Model
31
GameSalad
In Game Advertising
32
GameSalad
Digital Distribution
33
GameSalad
Gaming as a Service
34
Device and Platform Agnostic
Increase Engagement and Stickiness
Improve Monetization
EA Origin & Valve’s “STEAM”
MMOs
Downloadable Content
GameSalad
Data Driven Design
35
GameSalad
New Console Generation
36
Opportunity
37
GameSalad
Big $$$ for the Top Games
38
GameSalad
Mobile Gaming
39
GameSalad
Mobile Gaming Growth
40
GameSalad
Video Game Dev Costs
41
GameSalad
But Lots of Competition
42
Over 800,000 Apps in the iOS Store
Investment
43
GameSalad
Kickstarter
44
Pre-sales reduce risk
3/4 of video game Kickstarters fail
Most video game fundraising is in 10s of thousands
GameSalad
Gaming is (Still) a Great Bet!
45
Virtually unopposed growth opportunity
** Big publishers are distracted by new consoles
Plenty of “Blue Water” opportunities
** Opportunity to define a genre
Chance to go global
** China, Japan and Korea - high Android adoption
Unprecedented Margins
** Low headcount - can get to profit quickly
M&A / IPO Markets
** While Zynga has slowed things down, it will be back
GameSalad
Investment Considerations
46
Passion: business or gaming or both?
Team
Game - Hit Driven Industry
Monetization
Kickstarter
Data / Live Game Management
Distribution
Localization
Revenue Source
Company
GameSalad
Thanks!
47
Game Creation for Everyone
