Game Business Orientation
Pisal Setthawong
Presentation for
June 23, 2014
Outline of Talk 1/3
• About the Speaker
• Why Games?
• Overview of the Game Industry in Thailand
– Timeline
– Actors/Stake...
Outline of Talk 2/3
• Game Business Overview
– Fundamentals/Product Life Cycle
– Classification of the Game Market
• Game ...
Outline of Talk 3/3
• Let’s Guess the Future!
• Game Developer Survival Tips
• Q&A/Discussions
Pisal Setthawong (2014) 4
About the Speaker
Pisal Setthawong
• Award Winning and Early
Pioneer in the Thai Game
Industry
• Committees at various
Gam...
GAMES are probably the most
Important form of Digital Media
Pisal Setthawong (2014) 6
Global Game Market Value
Pisal Setthawong (2014) 7
RW Baird and Co - 2012
Global Games Market (Region)
Pisal Setthawong (2014) 8
Pisal Setthawong (2014) 9
TIMELINE
Overview of the Game Industry in Thailand
Maturity
Trials
Early
Pisal Setthawong (2014) 10
Pisal Setthawong (2014) 11
Major Period Classifications in
the Thai Game Development Industry (1/2)
PC
• Start of Industry
• 2000
PC
Mobile
PDA
• Ris...
Major Period Classifications in
the Thai Game Industry (2/2)
MMOG
Console
PC Casual
• Transition Phase
• 2005-2008
FB
Mobi...
View the Timeline
• View the timeline at:
http://www.tiki-toki.com/
timeline/imagemode/291692/
Thai-Game-Industry-Timeline...
ACTORS/STAKEHOLDERS
Overview of the Game Industry in Thailand
Pisal Setthawong (2014) 15
Actors/Stakeholders
Pisal Setthawong (2014) 16
Developers (Overview)
• Industry started in 2000
• Virtually all of the Early Game Development Studios
were self-funded
• ...
Developers
• Industry started in 2000
• Virtually all of the Early Game Development
Studios were self-funded
• Huge Expans...
Developers
• Currently most Studios are small in size (less
than 10 people) and focused on creating
original IPs on Mobile...
Developers
• Thai Developer have a good record in developing hits
and original IPs over the years
– Juice Cubes
– Unblock ...
Publishers
• Traditionally focus on MMOGs
– Ragnarok Online was first major hit
– Influx of imported games (mainly Korean)...
Publishers
• Currently publishers are entering the Mobile
Publishing sphere
– Many different publishing models are offered...
Investors
• Investment in the game development sector is
minimal until about 2010 (Coincide with
Global Game/Startup Cultu...
Investors
• Local Publishers/Investors/Banks have
improved perception of the Game Industry
• Investment from Thai investor...
Government
• ICT Ministry and SIPA supports Thai Game
Development
– Thailand Ministry of ICT Awards with Categories in
Ent...
Associations
Game & Interactive Digital
Entertainment Association
Thai Game Software Industry Association
Thai Digital Ent...
Developer Community
• TGDC is the Largest Thai Game Developer
Community (on FB)
• https://www.facebook.com/groups/thaigame...
Academic
• Most Major Universities offer Major/Minor in
Game Development
• Game Developers/Association have contacts with
...
Media
• Traditional Strong in Print Media
• Online Media surpassing Print Media in
Popularity
• Word of Mouth via social n...
GAME MARKET
Overview of the Game Industry in Thailand
Pisal Setthawong (2014) 30
Quick Statistics
• Population: 65,479,453 (2010 Census)
• Major Language: Thai
• Major Consumer of Media, Games, and
Mobil...
Quick Statistics
Pisal Setthawong (2014) 32
Niko Research - 2012
Thailand Mobile Overview
Post-Paid 6,481,372 7,050,943 7,256,473 7,938,934 9,782,683 10,740,629
Pre-Paid 55,355,792 58,901...
Thailand Internet Usage
Overview
• 60% of Mobile Users Access Internet through Mobile
Device
• 72% of People Under 24 have...
Thailand App Market Analysis
App Annie Intelligence - Jul 2013
Pisal Setthawong © 2014 35
Revenue 2M USD 1M USD 3M USD
Dow...
Thai Gamer Quirks
• Typically avoid paying for Premium games
• Less resistant to paying Games as a Service
• High tendency...
Thai Gamer Quirks
• Social Media is very popular
– Line (22 Million Accts) 1
– FB (18 Million Accts) 2
• Social Media User...
FUTURE OPPORTUNITIES AND
CHALLENGES OF THE INDUSTRY
Overview of the Game Industry in Thailand
Pisal Setthawong (2014) 38
Opportunities
• The Whole ecosystem in Thailand is Now Finally
Complete
– Support from all relevant agencies and units can...
Challenges
• Local Investors and Publishers are relatively
new to the Mobile Ecosystem
• Thai personnel can be very indivi...
GAME BUSINESS OVERVIEW
Fundamentals/Product Life Cycle
Pisal Setthawong (2014) 41
Life is the most Difficult EXAM
Pisal Setthawong (2014) 42
Product Lifecycle
Pisal Setthawong (2014) 43
Product Lifecycle - Extension Strategy
Pisal Setthawong (2014) 44
Peaks
Pisal Setthawong (2014) 45
2012
Follow the Money Trail
Pisal Setthawong (2014) 46
Red Ocean/Blue Ocean
Pisal Setthawong (2014) 47
or
?
GAME BUSINESS OVERVIEW
Classification of the Game Market
Pisal Setthawong (2014) 48
In-Between the Lines?
Pisal Setthawong (2014) 49
In-Between the Lines?
Pisal Setthawong (2014) 50
GAME BUSINESS OVERVIEW
Game Player Demographics
Pisal Setthawong (2014) 51
Game Controllers as a Guide
Pisal Setthawong (2014) 52
Hardcore Gamer
Casual Gamer
Global Demographics
Age Group Male Ratio Tally Ratio
0-9 646,550,548 9.01% Male 3,613,262,318 50.35%
10-19 616,990,606 8.6...
The Hard Core Gamer
Hardcore
Gamer
15%
Remaining
85%
Potential Hardcore Gamers
Pisal Setthawong (2014) 54
Male (18-35)
Casual Gamer v1
The Soccer Mom
Pisal Setthawong (2014) 55
17%
83%
Potential Soccer Mom Demographics
SoccerMom
Remaining
Fe...
The Mobile Generation
Pisal Setthawong (2014) 56
58%
42%
Potential Mobile Generation Demographics
Mobile Generation
Remain...
World Internet Users
WORLD INTERNET USAGE AND POPULATION STATISTICS
June 30, 2012
World Regions
Population
( 2012 Est.)
In...
World Internet Penetration Rates
Pisal Setthawong (2014) 58
GAME BUSINESS OVERVIEW
Ambiguity in Classification
Pisal Setthawong (2014) 59
Ambiguity in Classification
Pisal Setthawong (2014) 60
GENRE
PLATFORM
or
SCREEN TYPE?
Segmentation of Gaming Devices
Pisal Setthawong (2014) 61
Mobile
Home
Ambiguity in Classification
Pisal Setthawong (2014) 62
Migration
Potential
Migration???
Competing
OVER
LAPPING
GENRE in
Ev...
Drilling Down
Pisal Setthawong (2014) 63
AAA
MMOG
ETC.
Casual
Niche/Indie
[%?]
[%?]
[%?]
[%?]
[%?]
Puzzle
One
Click
CardEt...
Game Types by Age and Gender
Pisal Setthawong (2014) 64
Game Type by Usage and Retention
Pisal Setthawong (2014) 65
Global Games Market (Region)
Pisal Setthawong (2014) 66
Global Games Market (Region) v2
Pisal Setthawong (2014) 67
Region/Country Specific Tastes
Pisal Setthawong (2014) 68
Western Eastern
App Intelligence and Analytics
Pisal Setthawong (2014) 69
Targeting the Wrong Segment?
Pisal Setthawong (2014) 70
GAME BUSINESS OVERVIEW
Current Install Base
Pisal Setthawong (2014) 71
Smart Phone Install Base
Pisal Setthawong (2014) 72
RW Baird and Co - 2013
Tablet Installed Base
Pisal Setthawong (2014) 73
RW Baird and Co - 2013
Tablet Ownership
Pisal Setthawong (2014) 74
RW Baird and Co - 2012
PC Install Base
Pisal Setthawong (2014) 75
Strategic Investment Report 2014
Console Install Base
Mobile Console Home Console
Microsoft 0 83.7
Nintendo 153.99 101.06
Sony 80 80
0
50
100
150
200
250
3...
Smart TV Install Base
Pisal Setthawong (2014) 77
Smart TV
33%
Normal TV
67%
• Rise of New Platform
• 76 million units in 2...
Cloud Gaming?
Pisal Setthawong (2014) 78
Private Beta
- US 2014
Volume = Value?
Pisal Setthawong (2014) 792012
GAME BUSINESS OVERVIEW
App Store and Other Digital Store Fundamentals
Pisal Setthawong (2014) 80
App Store Overview
Pisal Setthawong (2014) 81Forbes Magazine 2013
Revenue
Pisal Setthawong (2014) 82
Vision Mobile 2013
Distribution of Income in App Store
Pisal Setthawong (2014) 83
Dabble 2012
Developer Mindshare
Pisal Setthawong (2014) 84
Vision Mobile 2013
App Store
Pisal Setthawong (2014) 85
Discovery / Attractiveness
Pisal Setthawong (2014) 86
Discoverability Attractiveness
Top Charts Customer Ratings
Customer ...
App Store Mentality
Pisal Setthawong (2014) 87
Buying Apps
Pisal Setthawong (2014) 88
Price of Apps
Pisal Setthawong (2014) 89
Flurry - 2013
Freemium vs Premium
Pisal Setthawong (2014) 90
Distimo 2013
Distimo - Jan-Nov 2013
Free Content
• “Generally people want free content more
than they want to avoid ads or to pay for the
absolute highest qua...
Freemium Fundamentals
• Choose the right market
• Distinguish between free and paid content in a
way users care about
• Tr...
Looking at Freemium Consumers
• Only 1.5% of total install made in-app
purchase within a month
• 50% of revenue is derived...
PR and Reviews
• The Typical User
– does not buy apps from PR and Reviews
– rely on Information from the App Storefront
• ...
Case Study
Pisal Setthawong (2014) 95
Targeting Niche (Hardcore Indie)
• Find a Niche
• Build Communities
• Build a Track Record
• Market Specifically to Target...
Targeting Niche (Mobile)
• The download market on Mobile is larger,
but it is chart-based
• Difficult to get Niche games t...
Publishers
Pros (In Theory)
• Skilled Producers
• Knowledge of the Market
• Detailed Metrics
• Media Contacts /Advertising...
Self Publishing
Pisal Setthawong (2014) 99
GAME BUSINESS OVERVIEW
Let’s Guess the Future!
Pisal Setthawong (2014) 100
Mobile is King
Pisal Setthawong (2014) 101
Maturity of Tablets as Gaming Devices
Pisal Setthawong (2014) 102
Smart TV the Future?
Pisal Setthawong (2014) 103
Mid Core Games Segment Widening
Pisal Setthawong (2014) 104
Hard Core Games will Not Die!
Pisal Setthawong (2014) 105
Cloud Based Gaming Services?
Pisal Setthawong (2014) 106
Cloud Gaming Impacting Traditional Platforms?
Pisal Setthawong (2014) 107
???
Subscription Model?
Pisal Setthawong (2014) 108
F2P Backlash?
Pisal Setthawong (2014) 109
F2P
Gambling Apps
Pisal Setthawong (2014) 110
GAME DEVELOPER
SURVIVAL TIPS
Pisal Setthawong (2014) 111
What is Your Motivation?
• Get Rich?
• For Self-Ego?
• Being Ordered?
• For Fun?
• For the Challenge?
• For My Boss?
Pisal...
Find Funding
Pisal Setthawong (2014) 113
Self Funded?
Investor?
Publisher?
Crowd Sourcing?
Pick the Right Fight
Pisal Setthawong (2014) 114
Lesson of AAAAAA
• Ambition
• Absolutely No Idea What I Was Doing
• All Those Graphics
• Aging
• Always Sticking to the Pl...
Save Money on Things that Don’t
Count
Pisal Setthawong (2014) 116
Fancy Office? How about No?
Pisal Setthawong (2014) 117
Virtual Office
Pisal Setthawong (2014) 118
Underestimating Production Cost?
Pisal Setthawong (2014) 119
Perceived Cost
Actual
Cost
Time Between Investment and
Income?
Pisal Setthawong (2014) 120
Production starts
Game submitted to Nintendo
Game approved...
Overestimating Your Income
Pisal Setthawong (2014) 121
INCOME EXPENSES
Accounting/Budgeting
Pisal Setthawong (2014) 122
Plan How to Monetize Your Games!
Pisal Setthawong (2014) 123
Keep Going!
Pisal Setthawong (2014) 124
Meet People
Pisal Setthawong (2014) 125
Attend Game Developer Meetings
Pisal Setthawong (2014) 126
Indie Game Developers and Development Meetup Group
[http://www....
Keep Contact with Schools
Pisal Setthawong (2014) 127
Join Industry Contests
Pisal Setthawong (2014) 128
Enjoy What You Are Doing!
Pisal Setthawong (2014) 129
FAILURE
OR
NEW IDEA/GOAL
Q&A AND
ADDITIONAL DISCUSSION
Pisal Setthawong (2014) 130
Yes!
No!
Ok!
Thank You!
• For additional queries, feel free
to drop me an e-mail at:
pisal@pigsssgames.com
• I can also be contacted vi...
Upcoming SlideShare
Loading in...5
×

Game Business Overview Talk - A Presentation at the MSeed Accelerator Program

586

Published on

A small invited talk session given at the MSeed Accelerator Program. A quick overview of the Thai Game Industry was given before going into little tids and bits about the Game Industry that would be interesting ranging from the Targeting Segments, App Stores, to Survival Guides based on aggregate ideas from many sources.

This talk is geared towards newer game developers just breaking into the business.

0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
586
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
1
Comments
0
Likes
3
Embeds 0
No embeds

No notes for slide
  • Aggregate at 31.56M or 978.36M THB 1.84 M App Store 0.79 M GooglePlay
  • Game Business Overview Talk - A Presentation at the MSeed Accelerator Program

    1. 1. Game Business Orientation Pisal Setthawong Presentation for June 23, 2014
    2. 2. Outline of Talk 1/3 • About the Speaker • Why Games? • Overview of the Game Industry in Thailand – Timeline – Actors/Stakeholders in Thailand – Game Market – Future Opportunities Pisal Setthawong (2014) 2
    3. 3. Outline of Talk 2/3 • Game Business Overview – Fundamentals/Product Life Cycle – Classification of the Game Market • Game Player Demographics • Ambiguity in Classification • Looking In Between the Lines – Current Install Base – App Store and Other Digital Store Fundamentals • App Store • A Look at Freemium • Publishers Pisal Setthawong (2014) 3
    4. 4. Outline of Talk 3/3 • Let’s Guess the Future! • Game Developer Survival Tips • Q&A/Discussions Pisal Setthawong (2014) 4
    5. 5. About the Speaker Pisal Setthawong • Award Winning and Early Pioneer in the Thai Game Industry • Committees at various Game Events /Organizations • Developer Community Volunteer/Organizer • Well-travelled Game Educator Pisal Setthawong (2014) 5
    6. 6. GAMES are probably the most Important form of Digital Media Pisal Setthawong (2014) 6
    7. 7. Global Game Market Value Pisal Setthawong (2014) 7 RW Baird and Co - 2012
    8. 8. Global Games Market (Region) Pisal Setthawong (2014) 8
    9. 9. Pisal Setthawong (2014) 9
    10. 10. TIMELINE Overview of the Game Industry in Thailand Maturity Trials Early Pisal Setthawong (2014) 10
    11. 11. Pisal Setthawong (2014) 11
    12. 12. Major Period Classifications in the Thai Game Development Industry (1/2) PC • Start of Industry • 2000 PC Mobile PDA • Rise of Mobile • 2002-2005 ??? • Mobile Market Crash • 2005 Maturity Trials Early Pisal Setthawong (2014) 12
    13. 13. Major Period Classifications in the Thai Game Industry (2/2) MMOG Console PC Casual • Transition Phase • 2005-2008 FB Mobile • The Rise of Facebook and the App Store • 2009-2011 • Increasing Maturity • 2011-Present Maturity Trials Early Pisal Setthawong (2014) 13
    14. 14. View the Timeline • View the timeline at: http://www.tiki-toki.com/ timeline/imagemode/291692/ Thai-Game-Industry-Timeline/ http://tinyurl.com/pnz3wn6 Maturity Trials Early Pisal Setthawong (2014) 14
    15. 15. ACTORS/STAKEHOLDERS Overview of the Game Industry in Thailand Pisal Setthawong (2014) 15
    16. 16. Actors/Stakeholders Pisal Setthawong (2014) 16
    17. 17. Developers (Overview) • Industry started in 2000 • Virtually all of the Early Game Development Studios were self-funded • Huge Expansion during 2011-Present – Open Publishing Platforms – Lower Cost of Entry – Seed Funding/Incubators/Investors – Foreign Investment – Increased Acceptance by Society • Most Studios are small in size (less than 10 people) focused on creating original IPs on Mobile Platform Pisal Setthawong (2014) 17
    18. 18. Developers • Industry started in 2000 • Virtually all of the Early Game Development Studios were self-funded • Huge Expansion during 2011-Present – Open Publishing Platforms – Lower Cost of Entry – Seed Funding/Incubators/Investors – Foreign Investment – Expanding Game Market – Increased Acceptance by Society Pisal Setthawong (2014) 18
    19. 19. Developers • Currently most Studios are small in size (less than 10 people) and focused on creating original IPs on Mobile Platform • Different Developers have different focus, leading to products on different platforms and services provided • Strong entrepreneur spirit, more experienced developers have a tendency to start their own company Pisal Setthawong (2014) 19
    20. 20. Developers • Thai Developer have a good record in developing hits and original IPs over the years – Juice Cubes – Unblock Me – Candy Meleon – Jigsaw Mansion – Glow Hockey – Etc. Pisal Setthawong (2014) 20
    21. 21. Publishers • Traditionally focus on MMOGs – Ragnarok Online was first major hit – Influx of imported games (mainly Korean) • Some Local Publishers Publish Local Developed MMOGs Games Pisal Setthawong (2014) 21
    22. 22. Publishers • Currently publishers are entering the Mobile Publishing sphere – Many different publishing models are offered • Microinvestment in Projects – Some Provide Development/Publishing Platforms – Publishing process, guidelines, best practices are still being ironed out • Potential for increasing collaboration with local developers Pisal Setthawong (2014) 22
    23. 23. Investors • Investment in the game development sector is minimal until about 2010 (Coincide with Global Game/Startup Culture Boom) • Foreign and Local Investments in Game Development Studios is becoming common Pisal Setthawong (2014) 23
    24. 24. Investors • Local Publishers/Investors/Banks have improved perception of the Game Industry • Investment from Thai investors comes in many flavors: – Seed Funding – Support Funding – Investment – Grants – Competition Grants Pisal Setthawong (2014) 24
    25. 25. Government • ICT Ministry and SIPA supports Thai Game Development – Thailand Ministry of ICT Awards with Categories in Entertainment – Periodical Contests for Seed Funding – Funding to join Overseas Events (e.g. Games Connection, GDC, Tokyo Game Show, etc.) – Business Matching Events – Funding for Trade Association Events • Other Notable Agencies – DEP (Department of Export Promotion), Software Park, TK Park • Board of Investment (BOI) Incentives available Pisal Setthawong (2014) 25
    26. 26. Associations Game & Interactive Digital Entertainment Association Thai Game Software Industry Association Thai Digital Entertainment Content Federation Thai Animation and Computer Graphic Association Software Association of Thailand Pisal Setthawong (2014) 26
    27. 27. Developer Community • TGDC is the Largest Thai Game Developer Community (on FB) • https://www.facebook.com/groups/thaigamepad • Most discussions in the Local Game Developer Community are done in Thai • However, most developers are Bilingual (Thai/English) Pisal Setthawong (2014) 27
    28. 28. Academic • Most Major Universities offer Major/Minor in Game Development • Game Developers/Association have contacts with many Universities • Challenges – Effectiveness hampered by University Regulations – Coursework needs realignment with Industry Needs – Potential for too much dependency on Tools – Student Attitudes Pisal Setthawong (2014) 28
    29. 29. Media • Traditional Strong in Print Media • Online Media surpassing Print Media in Popularity • Word of Mouth via social network is an important Media • E-Sports is increasing in popularity • G-Square is Thailand’s dedicated gaming channel (Sadly Closed 2013) Pisal Setthawong (2014) 29
    30. 30. GAME MARKET Overview of the Game Industry in Thailand Pisal Setthawong (2014) 30
    31. 31. Quick Statistics • Population: 65,479,453 (2010 Census) • Major Language: Thai • Major Consumer of Media, Games, and Mobile Pisal Setthawong (2014) 31
    32. 32. Quick Statistics Pisal Setthawong (2014) 32 Niko Research - 2012
    33. 33. Thailand Mobile Overview Post-Paid 6,481,372 7,050,943 7,256,473 7,938,934 9,782,683 10,740,629 Pre-Paid 55,355,792 58,901,370 64,469,827 69,510,532 75,229,728 79,244,232 Total 61,837,164 65,952,313 71,726,300 77,449,466 85,012,411 89,984,861 0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 90,000,000 100,000,000 2008 2009 2010 2011 2012 2013 NBTC, Thailand, June 25, 2013 Mobile Penetration (131%) (2013 Q2) 85% of Mobile Phones Sold in 2013 are Smart Phones GfK Retail and Technology Asia 2013 Pisal Setthawong (2014) 33
    34. 34. Thailand Internet Usage Overview • 60% of Mobile Users Access Internet through Mobile Device • 72% of People Under 24 have access to the Internet • Out of ~22 mil households, only about 1 mil household have wired Internet – Internet Cafes traditionally provide Internet connectivity to the masses but decreasing in significance due to mobile Internet connectivity National Statistic Office 2012 Pisal Setthawong (2014) 34
    35. 35. Thailand App Market Analysis App Annie Intelligence - Jul 2013 Pisal Setthawong © 2014 35 Revenue 2M USD 1M USD 3M USD Download 25M 50M 75M ARPDL ~0.09 USD ~0.02 USD ~0.04 USD Monthly Statistics of Thailand App Market (July 2013) ARPDL - Average Revenue Per Download Top 400 Games 92% of Google Play’s revenue 79% for Apple’s App Store Distimo - Sept 2013
    36. 36. Thai Gamer Quirks • Typically avoid paying for Premium games • Less resistant to paying Games as a Service • High tendency of migration between F2P games • Female Gamers usually pay than Male Gamers • Vibrant Item Auction Community • Mobile is the gaming device of choice Pisal Setthawong (2014) 36
    37. 37. Thai Gamer Quirks • Social Media is very popular – Line (22 Million Accts) 1 – FB (18 Million Accts) 2 • Social Media Users are also heavy consumers of digital media and games Pisal Setthawong (2014) 37 1. Line 2014 2. Zocial Inc 2013
    38. 38. FUTURE OPPORTUNITIES AND CHALLENGES OF THE INDUSTRY Overview of the Game Industry in Thailand Pisal Setthawong (2014) 38
    39. 39. Opportunities • The Whole ecosystem in Thailand is Now Finally Complete – Support from all relevant agencies and units can help push forward the Industry • Increased investment both local and abroad • Increasing maturity of the academic sector in the production of personnel to the market • Increasing experience of newly founded Game Development Studios • Thais are known to be very creative and artistic Pisal Setthawong (2014) 39
    40. 40. Challenges • Local Investors and Publishers are relatively new to the Mobile Ecosystem • Thai personnel can be very individualized • Academic may not be supplying the right type of developer to the gaming industry • Making the local market more sustainable for a wider genre/platforms by changing consumer attitudes • Increasing Cost Pisal Setthawong (2014) 40
    41. 41. GAME BUSINESS OVERVIEW Fundamentals/Product Life Cycle Pisal Setthawong (2014) 41
    42. 42. Life is the most Difficult EXAM Pisal Setthawong (2014) 42
    43. 43. Product Lifecycle Pisal Setthawong (2014) 43
    44. 44. Product Lifecycle - Extension Strategy Pisal Setthawong (2014) 44
    45. 45. Peaks Pisal Setthawong (2014) 45 2012
    46. 46. Follow the Money Trail Pisal Setthawong (2014) 46
    47. 47. Red Ocean/Blue Ocean Pisal Setthawong (2014) 47 or ?
    48. 48. GAME BUSINESS OVERVIEW Classification of the Game Market Pisal Setthawong (2014) 48
    49. 49. In-Between the Lines? Pisal Setthawong (2014) 49
    50. 50. In-Between the Lines? Pisal Setthawong (2014) 50
    51. 51. GAME BUSINESS OVERVIEW Game Player Demographics Pisal Setthawong (2014) 51
    52. 52. Game Controllers as a Guide Pisal Setthawong (2014) 52 Hardcore Gamer Casual Gamer
    53. 53. Global Demographics Age Group Male Ratio Tally Ratio 0-9 646,550,548 9.01% Male 3,613,262,318 50.35% 10-19 616,990,606 8.60% Female 3,562,760,737 49.65% 20-29 604,531,452 8.42% Total 7,176,023,055 100% 30-39 522,738,915 7.28% 40-49 468,630,544 6.53% 50-59 353,658,579 4.93% 60+ 400,161,674 5.58% Age Group Female Ratio 0-9 604,935,074 8.43% 10-19 576,088,296 8.03% 20-29 576,824,052 8.04% 30-39 507,294,288 7.07% 40-49 461,051,859 6.42% 50-59 362,431,963 5.05% 60+ 474,135,205 6.61% Pisal Setthawong (2014) 53 US World Census 2014
    54. 54. The Hard Core Gamer Hardcore Gamer 15% Remaining 85% Potential Hardcore Gamers Pisal Setthawong (2014) 54 Male (18-35)
    55. 55. Casual Gamer v1 The Soccer Mom Pisal Setthawong (2014) 55 17% 83% Potential Soccer Mom Demographics SoccerMom Remaining Female (35-65) Soccer Mom Remaining
    56. 56. The Mobile Generation Pisal Setthawong (2014) 56 58% 42% Potential Mobile Generation Demographics Mobile Generation Remaining Male/Female (20-65) Mobile Generation Remaining NOT MUTUALLY EXCLUSIVE WITH
    57. 57. World Internet Users WORLD INTERNET USAGE AND POPULATION STATISTICS June 30, 2012 World Regions Population ( 2012 Est.) Internet Users Dec. 31, 2000 Internet Users Latest Data Penetration (% Population) Growth 2000-2012 Users % of Table Africa 1,073,380,925 4,514,400 167,335,676 15.6 % 3,606.7 % 7.0 % Asia 3,922,066,987 114,304,000 1,076,681,059 27.5 % 841.9 % 44.8 % Europe 820,918,446 105,096,093 518,512,109 63.2 % 393.4 % 21.5 % Middle East 223,608,203 3,284,800 90,000,455 40.2 % 2,639.9 % 3.7 % North America 348,280,154 108,096,800 273,785,413 78.6 % 153.3 % 11.4 % Latin America / Caribbean 593,688,638 18,068,919 254,915,745 42.9 % 1,310.8 % 10.6 % Oceania / Australia 35,903,569 7,620,480 24,287,919 67.6 % 218.7 % 1.0 % WORLD TOTAL 7,017,846,922 360,985,492 2,405,518,376 34.3 % 566.4 % 100.0 Pisal Setthawong (2014) 57 Internet World Stats 2013
    58. 58. World Internet Penetration Rates Pisal Setthawong (2014) 58
    59. 59. GAME BUSINESS OVERVIEW Ambiguity in Classification Pisal Setthawong (2014) 59
    60. 60. Ambiguity in Classification Pisal Setthawong (2014) 60 GENRE PLATFORM or SCREEN TYPE?
    61. 61. Segmentation of Gaming Devices Pisal Setthawong (2014) 61 Mobile Home
    62. 62. Ambiguity in Classification Pisal Setthawong (2014) 62 Migration Potential Migration??? Competing OVER LAPPING GENRE in Every Platform!!! Phablet?Linux?
    63. 63. Drilling Down Pisal Setthawong (2014) 63 AAA MMOG ETC. Casual Niche/Indie [%?] [%?] [%?] [%?] [%?] Puzzle One Click CardEtc. Puzzle Hidden Object [%?] [%?] [%?][%?] [%?] [%?] Platform Drilling Down to Genre Genre Drilling Down to Sub Genre
    64. 64. Game Types by Age and Gender Pisal Setthawong (2014) 64
    65. 65. Game Type by Usage and Retention Pisal Setthawong (2014) 65
    66. 66. Global Games Market (Region) Pisal Setthawong (2014) 66
    67. 67. Global Games Market (Region) v2 Pisal Setthawong (2014) 67
    68. 68. Region/Country Specific Tastes Pisal Setthawong (2014) 68 Western Eastern
    69. 69. App Intelligence and Analytics Pisal Setthawong (2014) 69
    70. 70. Targeting the Wrong Segment? Pisal Setthawong (2014) 70
    71. 71. GAME BUSINESS OVERVIEW Current Install Base Pisal Setthawong (2014) 71
    72. 72. Smart Phone Install Base Pisal Setthawong (2014) 72 RW Baird and Co - 2013
    73. 73. Tablet Installed Base Pisal Setthawong (2014) 73 RW Baird and Co - 2013
    74. 74. Tablet Ownership Pisal Setthawong (2014) 74 RW Baird and Co - 2012
    75. 75. PC Install Base Pisal Setthawong (2014) 75 Strategic Investment Report 2014
    76. 76. Console Install Base Mobile Console Home Console Microsoft 0 83.7 Nintendo 153.99 101.06 Sony 80 80 0 50 100 150 200 250 300 InstallBaseInMillions Last Generation Console Install Base (DS) (PSP) (PS3) (XBOX360) (WII) Pisal Setthawong (2014) 76 Aggregate Data 2014
    77. 77. Smart TV Install Base Pisal Setthawong (2014) 77 Smart TV 33% Normal TV 67% • Rise of New Platform • 76 million units in 2013 (33% of Total Sales) • Internet Connectivity to All Mid-High End TV by 2017 (73% of total TV sales) • Continuous Growth (55% in 2013 and increasing) Global TV Sales in 2013 Normal 152 Smart TV 76 0 50 100 150 200 250 SalesinMillions Global TV Sales 2013 M M Strategic Investment Report 2014
    78. 78. Cloud Gaming? Pisal Setthawong (2014) 78 Private Beta - US 2014
    79. 79. Volume = Value? Pisal Setthawong (2014) 792012
    80. 80. GAME BUSINESS OVERVIEW App Store and Other Digital Store Fundamentals Pisal Setthawong (2014) 80
    81. 81. App Store Overview Pisal Setthawong (2014) 81Forbes Magazine 2013
    82. 82. Revenue Pisal Setthawong (2014) 82 Vision Mobile 2013
    83. 83. Distribution of Income in App Store Pisal Setthawong (2014) 83 Dabble 2012
    84. 84. Developer Mindshare Pisal Setthawong (2014) 84 Vision Mobile 2013
    85. 85. App Store Pisal Setthawong (2014) 85
    86. 86. Discovery / Attractiveness Pisal Setthawong (2014) 86 Discoverability Attractiveness Top Charts Customer Ratings Customer Also Bought Customer Comments Apple - New and Noteworthy - Staff Pick’s - What’s Hot - Apple Feature In-Store Appearance - Icons -Screenshots - Description Cross Promotion Number of Ratings/Comments Free Apps/Discounts Regular Updates Ad Networks Popular Developer
    87. 87. App Store Mentality Pisal Setthawong (2014) 87
    88. 88. Buying Apps Pisal Setthawong (2014) 88
    89. 89. Price of Apps Pisal Setthawong (2014) 89 Flurry - 2013
    90. 90. Freemium vs Premium Pisal Setthawong (2014) 90 Distimo 2013 Distimo - Jan-Nov 2013
    91. 91. Free Content • “Generally people want free content more than they want to avoid ads or to pay for the absolute highest quality content possible" - Flurry Pisal Setthawong (2014) 91
    92. 92. Freemium Fundamentals • Choose the right market • Distinguish between free and paid content in a way users care about • Track the metrics that matter • Create clear “paths” for promising prospects • Free is no longer a differentiating strategy Pisal Setthawong (2014) 92
    93. 93. Looking at Freemium Consumers • Only 1.5% of total install made in-app purchase within a month • 50% of revenue is derived from the top 10% of those players who do make purchases (0.15%) • 49% of all payers make only a single purchase per calendar month • Only 13% of paying players make five or more purchases • The average time to first purchase is just under 24 hours • For second purchase, the average time lapse between first and second purchase is a mere 1 hour 40 minutes • 53% of players who make a purchase go on to make a repeat purchase within 14 days, while 47% do not. • 13.7% of new players accrue more than four purchases in their first 14 days. • Of revenue accrued within the first 14 days of a player’s life, over 60% is accrued on the first day of life. • The average value of an in-app purchase is $5.94 • Purchases between $1 and $5 (67%) contribute only 27% of total revenues • Purchases of over $50 consist of 0.7% of all purchases and contribute 9% of all revenues • Is this sustainable? Pisal Setthawong (2014) 93 Swerve 2014
    94. 94. PR and Reviews • The Typical User – does not buy apps from PR and Reviews – rely on Information from the App Storefront • Mobile Sales are not usually impacted by Good Review in External Media Sites • Mobile Review Sites May Charge to Review your Games Pisal Setthawong (2014) 94
    95. 95. Case Study Pisal Setthawong (2014) 95
    96. 96. Targeting Niche (Hardcore Indie) • Find a Niche • Build Communities • Build a Track Record • Market Specifically to Target Audience • Tailor Distribution Method • Target Specific Niches Neglected by Mainstream Developers Pisal Setthawong (2014) 96
    97. 97. Targeting Niche (Mobile) • The download market on Mobile is larger, but it is chart-based • Difficult to get Niche games to Top Chart to drive sales!!! Pisal Setthawong (2014) 97
    98. 98. Publishers Pros (In Theory) • Skilled Producers • Knowledge of the Market • Detailed Metrics • Media Contacts /Advertising • Distribution Channels • Contacts • Potential Funding Cons • Revenue Share with Digital Distributor + Publisher • Additional Work/Investment Required • One of Many Games, not Likely to be main focus of Publisher Pisal Setthawong (2014) 98
    99. 99. Self Publishing Pisal Setthawong (2014) 99
    100. 100. GAME BUSINESS OVERVIEW Let’s Guess the Future! Pisal Setthawong (2014) 100
    101. 101. Mobile is King Pisal Setthawong (2014) 101
    102. 102. Maturity of Tablets as Gaming Devices Pisal Setthawong (2014) 102
    103. 103. Smart TV the Future? Pisal Setthawong (2014) 103
    104. 104. Mid Core Games Segment Widening Pisal Setthawong (2014) 104
    105. 105. Hard Core Games will Not Die! Pisal Setthawong (2014) 105
    106. 106. Cloud Based Gaming Services? Pisal Setthawong (2014) 106
    107. 107. Cloud Gaming Impacting Traditional Platforms? Pisal Setthawong (2014) 107 ???
    108. 108. Subscription Model? Pisal Setthawong (2014) 108
    109. 109. F2P Backlash? Pisal Setthawong (2014) 109 F2P
    110. 110. Gambling Apps Pisal Setthawong (2014) 110
    111. 111. GAME DEVELOPER SURVIVAL TIPS Pisal Setthawong (2014) 111
    112. 112. What is Your Motivation? • Get Rich? • For Self-Ego? • Being Ordered? • For Fun? • For the Challenge? • For My Boss? Pisal Setthawong (2014) 112 Know Yourself Before Starting!!
    113. 113. Find Funding Pisal Setthawong (2014) 113 Self Funded? Investor? Publisher? Crowd Sourcing?
    114. 114. Pick the Right Fight Pisal Setthawong (2014) 114
    115. 115. Lesson of AAAAAA • Ambition • Absolutely No Idea What I Was Doing • All Those Graphics • Aging • Always Sticking to the Plan • Albatross Pisal Setthawong (2014) 115 Adam Butcher http://www.youtube.com/watch?v=2b0tSu0QDQ0
    116. 116. Save Money on Things that Don’t Count Pisal Setthawong (2014) 116
    117. 117. Fancy Office? How about No? Pisal Setthawong (2014) 117
    118. 118. Virtual Office Pisal Setthawong (2014) 118
    119. 119. Underestimating Production Cost? Pisal Setthawong (2014) 119 Perceived Cost Actual Cost
    120. 120. Time Between Investment and Income? Pisal Setthawong (2014) 120 Production starts Game submitted to Nintendo Game approved by Nintendo Game on sale 1st royalty payment May 10 Jun 10 Jul 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11 Oct 11 18 months! 1st threshold reached Case Study - “Spot The Differences!” on Wii – Sanuk Games
    121. 121. Overestimating Your Income Pisal Setthawong (2014) 121 INCOME EXPENSES
    122. 122. Accounting/Budgeting Pisal Setthawong (2014) 122
    123. 123. Plan How to Monetize Your Games! Pisal Setthawong (2014) 123
    124. 124. Keep Going! Pisal Setthawong (2014) 124
    125. 125. Meet People Pisal Setthawong (2014) 125
    126. 126. Attend Game Developer Meetings Pisal Setthawong (2014) 126 Indie Game Developers and Development Meetup Group [http://www.meetup.com/Indie-game-developers-and-development/]
    127. 127. Keep Contact with Schools Pisal Setthawong (2014) 127
    128. 128. Join Industry Contests Pisal Setthawong (2014) 128
    129. 129. Enjoy What You Are Doing! Pisal Setthawong (2014) 129 FAILURE OR NEW IDEA/GOAL
    130. 130. Q&A AND ADDITIONAL DISCUSSION Pisal Setthawong (2014) 130 Yes! No! Ok!
    131. 131. Thank You! • For additional queries, feel free to drop me an e-mail at: pisal@pigsssgames.com • I can also be contacted via my personal page at FB: https://www.facebook.com/pisal.setthawong • Discuss with us at TGDC: https://www.facebook.com/groups/thaigamepad/ Pisal Setthawong © 2014 131

    ×