Game Creation for Everyone.
Overview
Shameless Plug - GameSalad
Industry Overview
Quick History of Video Games
Austin Game Industry
Industry Upheaval
...
GameSalad

3
GameSalad: A Professional Tool for Everyone!
GameSalad allows developers to quickly create successful games for
iOS, Andro...
Industry Overview

5
Global Games Market Today
Video game
revenues will grow
to $70.4 billion
worldwide this year,
representing a  6%
year-on-y...
Video Game Market per Region

GameSalad

7
Market Segment

GameSalad

8
Global Player Base

GameSalad

9
Quick History of Video Games

10
1970s
1st video game launched in 1971
Atari released Pong in 1972
Space Invaders (1978) - 360,000 cabinets and $2B
Atari 2...
1980s
“Golden Age” of video arcades
Arcades $8B revenue 1982 (more than pop music & film combined)
Pac Man - $1B in 1980 (...
1990s
New tech - CDs, 3D graphics, new CPUs
1998 Revenues - $30B worldwide
Start of mobile gaming
Emergence of internet an...
2000s
XBox 360 & Playstation 3
iPhone and Android
Facebook & browser based gaming
Asia

GameSalad

14
Almost Forgot: Handheld Gaming

GameSalad

15
Austin Game Industry

16
Austin Game Industry

GameSalad

17
Austin Game Industry

GameSalad

18
Captivate!

GameSalad

19
Austin Companies

GameSalad

20
Education in Gaming

GameSalad

21
Game Industry Upheaval

22
Game Industry Upheaval
Social Gaming (Facebook)
Mobile Gaming (Smart Phones)
Rise of Free to Play & Virtual Goods
In Game ...
Traditional Publishing Flow
Game Developers

Game Publishers

Game Players
Game Retailers

GameSalad

24
Social Gaming

New gamers and mechanics
Easy to play * no winner/loser
Viral elements (play with your friends)
Free to pla...
Adoption of Smartphones

GameSalad

26
Growth of Smartphone Usage

GameSalad

27
Mobile Gaming Growth

GameSalad

28
Mobile Games and Purchasers

GameSalad

29
Free to Play - In App Purchase

GameSalad

30
Free to Play - Growth of Model

GameSalad

31
In Game Advertising

GameSalad

32
Digital Distribution

GameSalad

33
Gaming as a Service

Device and Platform Agnostic
Increase Engagement and Stickiness
Improve Monetization
EA Origin & Valv...
Data Driven Design

GameSalad

35
New Console Generation

GameSalad

36
Opportunity

37
Big $$$ for the Top Games

GameSalad

38
Mobile Gaming

GameSalad

39
Mobile Gaming Growth

GameSalad

40
Video Game Dev Costs

GameSalad

41
But Lots of Competition
Over 800,000 Apps in the iOS Store

GameSalad

42
Investment

43
Kickstarter

Pre-sales reduce risk
3/4 of video game Kickstarters fail
Most video game fundraising is in 10s of thousands
...
Gaming is (Still) a Great Bet!
Virtually unopposed growth opportunity
** Big publishers are distracted by new consoles
Ple...
Investment Considerations
Passion: business or gaming or both?
Team
Game - Hit Driven Industry
Monetization
Kickstarter
Da...
Thanks!

GameSalad

47
Game Creation for Everyone
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Background to Investing in Video Games. Presented to the Austin Open Angel Network.

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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.

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Background to Investing in Video Games. Presented to the Austin Open Angel Network.

  1. 1. Game Creation for Everyone.
  2. 2. Overview Shameless Plug - GameSalad Industry Overview Quick History of Video Games Austin Game Industry Industry Upheaval Opportunity Investment Considerations GameSalad 2
  3. 3. GameSalad 3
  4. 4. GameSalad: A Professional Tool for Everyone! GameSalad allows developers to quickly create successful games for iOS, Android & HTML5 without having to write a single line of code. World’s Fastest App Creation Engine No Coding Required! Drag & Drop Interface Powerful, Professional Tool Multi platform: iOS, Android, Web & Win8 500,000 65 Top 100 developers games in the US App Store GameSalad 4 11,000 100,000 iOS games total games
  5. 5. Industry Overview 5
  6. 6. Global Games Market Today 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 6
  7. 7. Video Game Market per Region GameSalad 7
  8. 8. Market Segment GameSalad 8
  9. 9. Global Player Base GameSalad 9
  10. 10. Quick History of Video Games 10
  11. 11. 1970s 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 11
  12. 12. 1980s “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 12
  13. 13. 1990s New tech - CDs, 3D graphics, new CPUs 1998 Revenues - $30B worldwide Start of mobile gaming Emergence of internet and competitive gaming GameSalad 13
  14. 14. 2000s XBox 360 & Playstation 3 iPhone and Android Facebook & browser based gaming Asia GameSalad 14
  15. 15. Almost Forgot: Handheld Gaming GameSalad 15
  16. 16. Austin Game Industry 16
  17. 17. Austin Game Industry GameSalad 17
  18. 18. Austin Game Industry GameSalad 18
  19. 19. Captivate! GameSalad 19
  20. 20. Austin Companies GameSalad 20
  21. 21. Education in Gaming GameSalad 21
  22. 22. Game Industry Upheaval 22
  23. 23. Game Industry Upheaval 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 23
  24. 24. Traditional Publishing Flow Game Developers Game Publishers Game Players Game Retailers GameSalad 24
  25. 25. Social Gaming 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 25
  26. 26. Adoption of Smartphones GameSalad 26
  27. 27. Growth of Smartphone Usage GameSalad 27
  28. 28. Mobile Gaming Growth GameSalad 28
  29. 29. Mobile Games and Purchasers GameSalad 29
  30. 30. Free to Play - In App Purchase GameSalad 30
  31. 31. Free to Play - Growth of Model GameSalad 31
  32. 32. In Game Advertising GameSalad 32
  33. 33. Digital Distribution GameSalad 33
  34. 34. Gaming as a Service Device and Platform Agnostic Increase Engagement and Stickiness Improve Monetization EA Origin & Valve’s “STEAM” MMOs Downloadable Content GameSalad 34
  35. 35. Data Driven Design GameSalad 35
  36. 36. New Console Generation GameSalad 36
  37. 37. Opportunity 37
  38. 38. Big $$$ for the Top Games GameSalad 38
  39. 39. Mobile Gaming GameSalad 39
  40. 40. Mobile Gaming Growth GameSalad 40
  41. 41. Video Game Dev Costs GameSalad 41
  42. 42. But Lots of Competition Over 800,000 Apps in the iOS Store GameSalad 42
  43. 43. Investment 43
  44. 44. Kickstarter Pre-sales reduce risk 3/4 of video game Kickstarters fail Most video game fundraising is in 10s of thousands GameSalad 44
  45. 45. Gaming is (Still) a Great Bet! 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 45
  46. 46. Investment Considerations Passion: business or gaming or both? Team Game - Hit Driven Industry Monetization Kickstarter Data / Live Game Management Distribution Localization Revenue Source Company GameSalad 46
  47. 47. Thanks! GameSalad 47
  48. 48. Game Creation for Everyone

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