The New Money: Emerging Revenue Channels for Online Games

The New Money: Emerging Revenue Channels for Online Games Ada Chen Mochi Media July 23, 2009 July 21-23 2009 Casual Connect Seattle 2009

About Mochi Media • World’s largest online games network – #1 in comScore for online games – 100 million+ unique users per month – 30,000+ publisher websites – 14,000+ games – 14,000+ developer partners • We offer developers – Ads – revenue share – Analytics – stats and viral tracking – Coins – micro-transactions – Distribution –30,000+ partner sites – Scores – high score boards – Secure Updates – encryption and live game updates Casual Connect Seattle 2009 July 21-23 2009 2

What Are Flash Games? • Accessible - Browser based, virally distributed games • Resources - an industry dominated by enthusiasts with a few professionals • Audience- reaching a massive global audience • Monetization - Free Flash games vs. Premium Flash games Casual Connect Seattle 2009 July 21-23 2009 3

The Flash Games Market Survey Take the Survey: www.tinyurl.com/flashsurvey (It’s anonymous, and all data goes back to the community!) Casual Connect Seattle 2009 July 21-23 2009 4

Flash Games Today are Powered by Ads Micro-transactions No Revenue Custom Development Licensing Ads on Site Sponsorships Ads in Game 0% 10% 20% 30% 40% 50% 60% 70% 80% Source: Flash Games Market Survey 2009 Casual Connect Seattle 2009 July 21-23 2009 5

Flash Games Moving into Mobile 100% 90% Yes, I currently develop on this platform No, and do not plan to in next year 80% No, but plan to in next year 70% 60% 50% 40% 30% 20% 10% 0% Flash Games Non-Flash Web Downloadable Console iPhone Other Mobile PC Source: Flash Games Market Survey 2009 Casual Connect Seattle 2009 July 21-23 2009 6

Flash Games Moving into iPhone • Bloons, Ninja Kiwi – 300,000+ units sold • The Moron Test, DistinctDev - #1 paid app • Balloon-Headed Boy, Gimme5games • Shift, Armor Games • AddictingGames iPhone App • Adobe Flash on mobile Casual Connect Seattle 2009 July 21-23 2009 7

Micro-transactions, the New New thing! • Fantastic Contraption – low six figures over just 4 months, selling at $10 • Now Boarding – Flash downloadable • Casual Collective – Diversification of revenue models and shift to virtual goods Casual Collective, last year Casual Collective, present Game Site Ads Ads Revenue Share Game & Subscription Site Ads Virtual Currency Casual Connect Seattle 2009 July 21-23 2009 8

Developer Barriers to Adoption • Micro-transactions Issues: – Small transaction sizes – Monetizing international gamers – Game state persistence and maintaining servers – Aligning Site Publisher Incentives – Updating distributed versions with new upgrades Casual Connect Seattle 2009 July 21-23 2009 9

Introducing Mochi Coins, launching this week Launching with 14 Premium Flash Games http://www.mochimedia.com/casualconnect Casual Connect Seattle 2009 July 21-23 2009 10

Transactions Across a Network of Games • Issues: – Small transaction sizes • SOLUTION: Universal login and wallet across games – Monetizing international gamers • SOLUTION: International payment partners – Game state persistence and maintaining servers • SOLUTION: User storage to save game state – Aligning Site Publisher Incentives • SOLUTION: Affiliate programs – Updating distributed versions with new upgrades • SOLUTION: Version control, analytics and testing tools Casual Connect Seattle 2009 July 21-23 2009 11

Case Study: SAS Zombie Assault 2 Casual Connect Seattle 2009 July 21-23 2009 12

Case Study: SAS Zombie Assault 2 • Launched June 15 • $7-10 revenue per thousand game plays (RPM) on the Ninja Kiwi site • $5 RPM after launch to distribution • Over 40,000 transactions • Full game gets users hooked to buy premium games One game is generating more revenue from micro-transactions than ads for 47 games Casual Connect Seattle 2009 July 21-23 2009 13

Parting Thoughts • Use multiple monetization methods, and focus on un- capped, recurring revenues • If you build a hit game, take advantage of your fan base – Sequels, upgrades, extensions • Non-Flash developers, games are crossing platforms • As games shift to direct user monetization, game quality is really starting to matter • It’s all about the hustle Casual Connect Seattle 2009 July 21-23 2009 14

Contact Info Ada Chen ada@mochimedia.com +1 415 683 6682 More about Mochi Coins: http://www.mochimedia.com/casualconnect Thank You Chris and Stephen Harris (Ninja Kiwi) David Scott and Paul Preece (Casual Collective) Casual Connect Seattle 2009 July 21-23 2009 15

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