Bigwig Games PowerPoint February 2014


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The story of Bigwig Games, from Gary Hoover, Austin, TX.

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Bigwig Games PowerPoint February 2014

  2. 2. Contents 1. The Opportunity and Bigwig Games Idea 2. Executing the Bigwig Games Idea and Financial Projections 3. Our Team 4. Game Development & Screenshots
  3. 3. The Opportunity & the Bigwig Games Idea
  4. 4. Quotes “Looking for intersections means finding ways to combine two existing ideas.” -- Hoover’s Vision: Original Thinking for Business Success, by Gary Hoover, 2001 “Creativity is connecting things.” -- Steve Jobs “Innovators think differently, but as Steve Jobs put it, they really just think different by connecting the unconnected. Einstein once called creative thinking ‘combinatorial play.’” -- The Innovator’s DNA: Mastering the Five Skills of Disruptive Innovators, by Jeff Dyer, Hal Gregersen, and Clayton M. Christensen, 2011
  5. 5. Bigwig Defined Bigwig Games TM = Digital (PC, Video, Mobile) Simulation/Strategy Games + Business Simulations For the underserved market of adult gamers who love business
  6. 6. Bigwig Defined Bigwig Games TM = A system of games which model the entire economy Industry by industry Beginning in spring 2014 with Restaurant Bigwig for the iPad TM
  7. 7. iPad Cumulative Lifetime Units
  8. 8. PC & Tablet Unit Forecast, 2014 Research firm Canalys estimates that global tablet unit sales will at least equal laptop and desktop unit sales in 2014.
  9. 9. PC & Tablet Shipment Forecast, 2010-2017
  10. 10. Time Spent on Smartphones & Tablets Games are huge on tablets and smartphones
  11. 11. The Game Market The market for games is huge & diverse. 58% of Americans play video games, spending $20.8 billion in 2012, 40% of that on digital content and apps. 68% of gamers are 18 or over. The average gamer is 30 years old and the average age of frequent game purchasers is 35. 45% of gamers are women. Adult women are 31% of the market, almost twice the 19% represented by men 17 and younger.
  12. 12. History of Business Games Business games have a long history of popular success Monopoly is the top board game of all time, 250 million copies sold, ranked among the 10 most-played iPad games in 2012. Modern best-selling board games like Settlers of Catan have economics and trading components. 2+ million copies have been sold of railroad game Ticket to Ride. Millions have played Tycoon PC games and Capitalism. Russian Virtonomics browser game claims 900,000+ players. They are fun and engaging, but teach little or nothing about business, economics or the real world.
  13. 13. The Popularity of Business & Entrepreneurship Business and entrepreneurship are more popular than ever. Millions worldwide are reading about business: Over 8 million total subscribers to Forbes, Fortune, BusinessWeek, Wall Street Journal, INC, Fast Company, Entrepreneur, and the Economist. Over 3 million are enrolled in US undergraduate business and marketing programs. 258,000 business bachelors’ degrees (48.8% women) and 177,000 masters’ degrees (45.6% women) were granted in 2009-10. Over 11 million Americans hold business bachelors’ degrees. Universities use business simulations but they are usually boring and rarely teach anything about specific industries. Few if any take advantage of the latest digital platforms (tablets). Over 500,000 new businesses are started each month in the US.
  14. 14. Target Market Based on our research, input from the game industry experts on our advisory board, and our growing playtesting program, we believe our games will have a broad appeal to different ages and genders. But that our core market will be adults 18 and over, particularly in their late 20s 30s and 40s, and that half or more of our customers will be women.
  15. 15. Market for Management/SIM Games Primary Market Secondary Market Key market for management/sim games: women, average age 30
  16. 16. Market for Management/SIM Games Secondary Market Primary Market Strategy, management, and simulation games have high “Commitment” and “Infatuation”
  17. 17. What Makes Bigwig Different Custom-designed from the outset to use the unique features of tablets: photos, video, audio, touch, and swipe. A multitude of industry-specific games using real data from each industry (our “secret sauce”). We will develop a fully-integrated “Wigonomy” in which all games and players interact with each other, sharing resources. Ideal for advertising and sponsorship. Potential for corporate, training, and educational purposes.
  18. 18. Restaurant Industry Features We considered at least 90 industries for our first game and selected the restaurant industry because it is:  Enormous (US Revenue of $600 billion +).  A huge employer of people (13 million +).  Both local and global, combining chains and independents.  Immensely varied, from food trucks to fine dining.  Representative of our diverse ethnic cultures and nationalities.  A large consumer of training and education services.  Perhaps the most entrepreneurial industry in the USA.  Attracting more young managers and entrepreneurs every day.  Served by excellent, active trade associations and trade publications.  Served by a large array of local and global suppliers.  Increasingly visible in the media (Iron Chef, Food Channel, etc.).  Highly graphic and visual.  Part of our daily lives. And yet most people have no idea of how it works or makes money!
  19. 19. Wigonomy Map Wigonomy map showing potential games connected to the Restaurant Game Beer, Soft Drink And other Beverage Games Candy, Cereal And other Food Games UPS FedEx Airline Transportation Games Stock Market/ Finance Game Hotel Game Restaurant Game Retail Games Amusement Park Game Real Estate Development Game Architecture Design Game City History & Development Game Election Game Sports Stadium Game
  20. 20. Executing the Bigwig Games Idea & Financial Projections
  21. 21. Hallmarks of Companies Founded by Gary Hoover Seeing market opportunities where others do not (BOOKSTOP, Hoover’s). Flexibility, morphing to adapt to market needs. Obsession with customers and their experience. Great places to work which attract and retain the very best talent.
  22. 22. What Makes Our Game Company Different Our games will have broad appeal to casual and “mid-core” gamers, both genders and all ages, high school through seniors. Lower risk due to multiple potential revenue streams, including training and educational market potential. Lower cost of game development and more ability to introduce multiple games, because we do not use 3D or cinematic graphics, and our games re-use the same mathematical models. Integrated system of multiple games will keep players coming back. Additional industries will draw new enthusiasts. We are less dependent on a single hit in order to succeed.
  23. 23. Potential Revenue Streams  Purchases of game itself.  In-app purchases of upgrades, tools, skins, & special editions.  Advertising and sponsorship by industry players and suppliers, trade associations, and trade press.  Education and training editions for schools and industry.  Possible crowd-funding campaigns (e.g., Kickstarter) for future games.  Potential for custom game development for advertisers and companies. We selected the restaurant industry as our first industry because of its size and number of participants and workers, allowing maximum potential revenue streams and distribution and promotion.
  24. 24. Examples of Successful, Priced Games Many of the highest dollar revenue games are “Free to Play” (FTP) and make their money on in-app-purchases. It is increasingly common for games to instead be “priced.” According to, the founders of game company Vlambeer recently stated that their game Ridiculous Fishing sold 300,000 copies at $3 each. The website AppData contains the following estimates on priced game apps: - Final Fantasy Tactics: The War of the Lions, $600,000 annual sales run rate for a $15.99 game; - Civilization Revolution, $350,000 annual sales run rate for a $2.99 game; and - Sonic the Hedgehog, a well-known brand, $2.5 million annual run rate for a $2.99 game. Games converted from board games (which were our inspiration) are commonly priced: - Ticket to Ride, a top-selling board game, at $6.99, with expansion packs selling for up to $3.99 - Catan HD, another top-selling board game, $4.99 with two expansion packs at $4.99 each - Carcassonne $9.99 - Puerto Rico HD $6.99 - Monopoly for iPad $6.99 - Stone Age: The Board Game $6.99
  25. 25. Revenue Assumptions We presently anticipate selling the “Pro” version of our first game for $5.99, and likely a casual version for no more than $1.99. These prices allow introductory discounting or special pricing for restaurant industry employees and customers. This model still permits upside from selling additional products and new game versions and enhancements “inside the app.” Ultimately, the integrated Wigonomy may allow monthly and annual subscription pricing, providing a smooth revenue stream (like Hoover’s). (Hit game World of Warcraft charges $15 per month.) As well as other potential markets and revenue streams, including product placement, industry sponsorship, and training and educational markets.
  26. 26. Marketing Plan Publicity, publicity, publicity (earned media cheaper/stronger than paid media): Hoover international speaking schedule and track record of appearances in WSJ, NY Times, LA Times, Chicago Trib, INC, TIME, other newspapers, radio, & TV. Link to globally recognized Hoover’s business information brand. Highest quality search engine optimization and internet marketing: experts on our Boards. Leverage the restaurants, their suppliers, and associations for game distribution and promotion. Supporting website with videos, strategy tips, industry history, information and links.
  27. 27. Marketing Plan in Action We have retained San Francisco-based International Digital Entertainment Agency (IDEA), led by Sean Kauppinen, who has launched over 550 games over a 17 year period on all game platforms, to lead our publicity and promotion within the game industry campaigns. We have also added Dan Beaver, who runs the communities for NASCAR games, as our community manager, drawing together players and others, and maximizing the use of social media. We have retained Polycot Associates, experienced web designers and social media strategists, to design and develop our website which will be used to promote the game and share information with our community. Polycot is led by veterans Jon Lebkowsky and Robert Matney.
  28. 28. Capital Efficiency Maximum $100-150,000 per game development costs, far below typical 3D and action games. Many software engine modules will be reused for different industries. At 50,000 players per game and a $5.99 price, $200,000+ annual revenue per game after Apple’s 30% cut, from game sales alone. First game is under budget and ahead of schedule so far.
  29. 29. Timetable/Milestones Founded August 2012, raised $49,050. Between May and October 2013, raised another $107,500. Current offering has raised or commitments totaling $46,000, bringing the cumulative total to $202,550. 10+ games developed, most play-tested in card and spreadsheet form, restaurant game selected for first game & tested February 2013. Converted to iPad prototype game beginning May 2013. Expected public launch Spring 2014.
  30. 30. Detailed Projections Through 2015 2012 Revenue Net of Apple's 30% $ Gary Hoover compensation - 2013 2014 2015 $ - $ 329,469 $ 838,600 $ 25,000 $ 76,627 $ 158,093 $ 160,000 Developer compensation $ - $ 63,750 $ 90,000 $ 100,000 Other costs related to game development and maintenance $ - $ 10,700 $ 16,000 $ 35,000 Marketing and publicity $ - $ 2,500 $ 122,500 $ 60,000 All other expenses and costs, contingency $ 10,000 $ 3,787 $ 27,500 $ 175,000 Total Expenses and Costs $ 35,000 $ 157,364 $ 414,093 $ 530,000 Cash Flow/EBITDA $ (35,000) $ (157,364) $ (84,624) $ 308,600 Note that Gary Hoover is also our lead game designer, so part of that compensation goes toward developing the games. Marketing budgets will depend on the traction and word-ofmouth we achieve, and could be increased substantially by taking money from the contingency line. More details and assumptions are available upon request.
  31. 31. Summary Projections Through 2020 Game Revenue after Apple 30% Expenses Cash flow/EBITDA 2012 2013 2014 2015 2016 2017 2018 2019 2020 $ - $ - $ 329,469 $ 838,600 $ 1,886,850 $ 3,195,000 $ 5,187,500 $ 8,002,500 $ 11,865,000 $ 35,000 $ 157,364 $ 414,093 $ 530,000 $ 745,000 $ 1,278,000 $ 2,075,000 $ 3,201,000 $ 4,746,000 $ (35,000) $(157,364) $ (84,624) $ 308,600 $ 1,141,850 $ 1,917,000 $ 3,112,500 $ 4,801,500 $ 7,119,000 Expenses as % of Revenue Cash Flow/EBITDA as % of Revenue Number of Games Introduced Cumulative Games on the Market 125.7% -25.7% 1 1 63.2% 36.8% 39.5% 60.5% 40.0% 60.0% 40.0% 60.0% 40.0% 60.0% 40.0% 60.0% 1 2 2 4 4 8 5 13 6 19 7 26 8 34 Note that high margins are not uncommon in the game industry. Rovio, maker of the hit Angry Birds, reported that the company earned pre-tax income of $67.6 million on revenues of $106.3 million in 2011.
  32. 32. Investment Structure 39,000 shares remaining in this offering, offered at $5.00. Up to $24,000 total invested for 28.4% of company. $629,375 pre-money valuation. $879,375 post-money valuation. All common stock. (Details available in Private Placement Memorandum)
  33. 33. Capital Structure (All shares are common shares) Owner Price per Share Total Amount # Shares % of Issued & Paid Outstanding Shares Gary Hoover $.001 $ 50 50,000 28.4% Seed Round 2012 $1.00 $ 49,000 49,000 27.9% May-Oct 2013 Round $4.00 $107,500 26,875 15.3% $4-5.00 $200-250,000 50,000 28.4% $369,050 175,875 100.0% Current Offering Total all shares The company has also approved an incentive stock option plan, and has granted up to 40,000 options under this plan. Shareholders listed above also receive warrants to purchase an equal number of shares at $10.00 through December 14, 2020.
  34. 34. Our Team More detailed information on all these individuals is Contained in the Private Placement Memorandum.
  35. 35. Our Team Lean, mean core Gary Hoover, lead industry modeler Erwin Mazariegos, lead developer Board of Directors (Hoover plus:) Alan Chai, investor, oversaw over $10B in tech and emerging company stock distributions for institutional clients; former board member, BOOKSTOP and Hoover’s, Inc. Bill Leake, nationally-known online marketing expert and CEO, Apogee Results internet marketing consultancy
  36. 36. Our Team Advisory Board (Directors plus:) New Advisory Board Members Fall/Winter 2013: Brett Hurt, Investor, founder Coremetrics, co-founder and Vice-Chairman, Bazaarvoice, Inc. Gordon Logan, Investor, founder and CEO Sports Clips, third largest salon chain with over 1100 locations Preston Swincher, Millennial Generation consultant and speaker, strategy game player and analyst Jason Tiefenauer, Graphic designer and App designer
  37. 37. Our Team Jen Bullard, Senior Advisor, Experienced Game Executive, Producer, and Strategy Gamer Clark Aldrich, Leading “Serious Games” Author and Guru Harlan Tytus Beverly, Experienced Game Company Executive and Marketer Douglas Ferguson, Experienced CTO and Software Architect Michael Froehls, Experienced Executive and Consultant Thomas Helton, Experienced Systems Manager and Business Teacher Erwin Mazariegos, iOS Developer and Consultant Danny Mulligan, Experienced Technology Leader Kris Rao, Attorney, Former General Counsel, Hoover’s, Inc.
  38. 38. The Gary Hoover Story A lifelong pursuit of understanding industries and companies 1963-1969: Started reading business magazines and inventing business games when 12 years old. 1969-1981: Studied economics under Milton Friedman and friends, analyzed companies on Wall Street, then geographic, demographic, and financial analysis and strategic planning for big companies. 1982-2013: Founded and helped build two very successful companies (BOOKSTOP, Hoover’s) and served on Boards of Directors during two IPO’s (Whole Foods Market, Hoover’s). Also learned from failure. 1993-2013: Visited 45 countries as international speaker, author, and expert on business and entrepreneurship. Have met with and mentored thousands of businesspeople and entrepreneurs worldwide. 2012-2013: Finally has the expertise and knowledge to do those business games right – fun, engaging, full of industry insights and information, and built for the latest digital devices (starting with iPad under iOS 7).
  39. 39. The Gary Hoover Story In high school and college, Gary Hoover developed business and social science games including: Run a Movie Studio, Run a TV Station, Adam Smith: the Game of the Money Supply, Presidential Election Simulation, Run a chain of department stores (circa 1965). And many more, all based on real industry data and dynamics.
  40. 40. The Gary Hoover Story Subscribed to Fortune magazine at age 12 (1963). Now maintains almost complete collection 1930 to the present. Started keeping a list of business ideas at age 12, which now numbers over 200 ideas. Visited Chicago and New York corporate headquarters to collect annual reports, insights, and data, starting at age 15. Earned BA in economics under Milton Friedman and 2 other Nobel Prize winners at University of Chicago. First Entrepreneur-in-Residence, UT-Austin McCombs School of Business, 2009-10; Entrepreneur-in-Residence at UT-Austin School of Information, rated #6 in the nation, 2012-13. Globally recognized author, speaker and teacher of business dynamics, business history, and entrepreneurship.
  41. 41. The Gary Hoover Story 1982: founded the first book superstore chain BOOKSTOP, expanded from Texas to Florida to California, annual revenue $65MM, sold to Barnes & Noble in year 7 for $41.5 MM. Revenue per store over 4 times industry average. 1990: founded business information company Hoover’s, IPO in 1999, sold to Dun & Bradstreet in 2003 for $117 MM. Globally recognized brand for company profiles and contact information.
  42. 42. Game Development & Screenshots All screenshots are preliminary. Demonstration available upon request. Contact us if you would like to be a playtester!
  43. 43. Game Development We spent over 100 “man-hours” testing Restaurant Bigwig prior to porting to the iPad. Then thousands more hours playtesting the prototype iPad version of the game.
  44. 44. Game Development Ported to iPad beginning May 2013. This and following images are from the old prototype, prior to final design.
  45. 45. Game Development Easy to learn and begin to play: Many players will not even read the rules but will be guided by tips and tutorials.
  46. 46. Game Development New restaurant ready to launch:
  47. 47. Game Development Newspaper story on opening. Actual will look like real newspaper and include scoring, chance events, and awards.
  48. 48. Game Development Multiple restaurants in operation, more resources available.
  49. 49. Game Development Ledger will contain records for strategy & planning.
  50. 50. Game Development Preliminary draft of management planning calendar, FQ = Food Quality, SV = Service, etc.
  51. 51. Game Development Unlike most games, ours are ideal for product placement, sponsorship, and advertising. (We are not at this time talking with any of the companies illustrated here.)
  52. 52. Game Development We are now designing our final look and style. Here is the present draft of what the first screen of the game will look like:
  53. 53. Game Development Players have will have multiple options for their games, including Remote (Cloud Multiplayer through Apple Game Center), Passaround with one shared iPad, against the bots (computer), and locally against others with iPads.
  54. 54. Game Development The player’s main dashboard:
  55. 55. Game Development Players may have choices for their backgrounds:
  56. 56. Game Development Players will be able to study their business results at their preferred level of detail:
  57. 57. Game Development The newspaper which each turn announces and celebrates results, new openings, chance events good and bad, and selection of “Best Restaurant Awards.” Photos or avatars for the leaders will be the key pictures in the paper.
  58. 58. Conclusion This is only the Beginning… For further information, contact Gary Hoover or 512-656-5325