Modern Gaming

Modern Gaming Every 9 Seconds a Game is Sold Size of the Prize Over 65% of HH’s Play Video Games Average Age - 35 40% are Female 17% Annual Growth

Every 9 Seconds a Game is Sold

Size of the Prize

Modern Gaming 217 M Online Gamers Worldwide Size of the Prize 36% Play Games on Wireless Devices Over 1B App Store Downloads (in 9 mos.) Over 80M Game Downloads in 2008

217 M Online Gamers Worldwide

Size of the Prize

Modern Gaming Size of the Prize Bold Projection Gaming Industry to become Twice as Large as the Music Industry by 2012

Size of the Prize

Modern Gaming 5 Trends

1. Battle for the Digital Living Room Microsoft Partners with NetFlix Direct competition with Cable, Satellite and TelCo’s HH’s Investing more in Home Entertainment than ever before. Double Digit Increases Technology has become more integrated. Still lacks stardardization

Microsoft Partners with NetFlix

Direct competition with Cable, Satellite and TelCo’s

HH’s Investing more in Home Entertainment than ever before.

Double Digit Increases

Technology has become more integrated.

Still lacks stardardization

2. Hollywood & Games Gaming Companies Getting Into Act No longer licensing characters from studios Their developing their own narratives; such as HALO and GTA Music licensing being brought In-House EA’s ArtWek Music Group Studios are Responding Continuing to develop their own gaming groups ‘ Game Convergence’ The Dark Knight

Gaming Companies Getting Into Act

No longer licensing characters from studios

Their developing their own narratives; such as HALO and GTA

Music licensing being brought In-House

EA’s ArtWek Music Group

Studios are Responding

Continuing to develop their own gaming groups

‘ Game Convergence’

The Dark Knight

3. Madison Avenue & Games Ad Agencies see a new medium to exploit… Over $1B by 2014? Is Gaming Recession Proof?

Ad Agencies see a new medium to exploit…

Over $1B by 2014?

Is Gaming Recession Proof?

3. Madison Avenue & Games…cont. Budweiser and Tapper start it all…

Budweiser and Tapper start it all…

3. Madison Avenue & Games…cont. Burger King releases stand alone games for Xbox. Over 2M sold in less than 4 weeks

Burger King releases stand alone games for Xbox.

Over 2M sold in less than 4 weeks

3. Madison Avenue & Games…cont. Virtual World….Second Life Contributing to one of the most successful political campaigns in our history.

Virtual World….Second Life

Contributing to one of the most successful political campaigns in our history.

3. Madison Avenue & Games…cont. There are essentially 4 ways to leverage the gaming industry for a brand…. Avergames Stand-alone games with brand messages Few create tie-ins to direct consumer action Product Placement We are even seeing avatars now wearing the latest fashions

There are essentially 4 ways to leverage the gaming industry for a brand….

Avergames

Stand-alone games with brand messages

Few create tie-ins to direct consumer action

Product Placement

We are even seeing avatars now wearing the latest fashions

3. Madison Avenue & Games…cont. There are essentially 4 ways to leverage the gaming industry for a brand….cont. 3. Real-world Analogs Ad placement within games such as billboards and stadium signs 4. Cross-promotion In video game promotions such as Capcom’s tie-in with Diesel and Devil May Cry franchise.

There are essentially 4 ways to leverage the gaming industry for a brand….cont.

3. Real-world Analogs

Ad placement within games such as billboards and stadium signs

4. Cross-promotion

In video game promotions such as Capcom’s tie-in with Diesel and Devil May Cry franchise.

3. Madison Avenue & Games…cont Key to Branded Gaming Integration Consumer Relevancy Seamless integration between brand and game platform. Consumer/Brand connection.

Key to Branded Gaming Integration

Consumer Relevancy

Seamless integration between brand and game platform.

Consumer/Brand connection.

3. Madison Avenue & Games…cont. Sticking Points Ethics and Truth in Advertising The fine print… Effectiveness Still unknown Saturation Point Unknown

Sticking Points

Ethics and Truth in Advertising

The fine print…

Effectiveness

Still unknown

Saturation Point Unknown

4. Power of the Third Screen More Cell Phones than TV’s and Consoles Combined Undeniably a huge opportunity Game Changer iPhone Is it considered a hand-held competing with DS and PSP? One might argue… Other’s following suit… Android

More Cell Phones than TV’s and Consoles Combined

Undeniably a huge opportunity

Game Changer

iPhone

Is it considered a hand-held competing with DS and PSP? One might argue…

Other’s following suit…

Android

Games of Tomorrow: Next Generation MMOGs and Virtual Worlds MMOG Massively Multi-Player Online Game $2B+ in 2008 WoW (World of Warcraft) has over 12M monthly subscibers EA getting in the game Increasingly growing phenomenon Korea and China leading charge in MMOG

MMOG

Massively Multi-Player Online Game

$2B+ in 2008

WoW (World of Warcraft) has over 12M monthly subscibers

EA getting in the game

Increasingly growing phenomenon

Korea and China leading charge in MMOG

Growth Projections

Q&A ?

Q&A