Trip Hawkins Presentation


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Trip Hawkins Presentation

  1. 1. Social Games – <br />We’re Just <br />Getting Started<br />Trip HawkinsFounder and CEO, Digital Chocolate <br />
  2. 2. Digital ChocolateThe Next Big ThingIn Video Games<br />
  3. 3. Outline<br />DC Snapshot<br />Digital Disruption Galore<br />The Next Big Thing<br />Why<br />2011 Predictions<br />Confidential<br />3<br />
  4. 4. DC Snapshot<br />The Pixar of Mobile<br />Nearing 100 million App downloads<br />Fastest Growing on Facebook<br />5 Studios on 3 Continents<br />Confidential<br />4<br />
  5. 5. Millionaire City<br />5<br />
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  11. 11. Virtual Goods on Facebook<br /> 30 Day MAU Number of Number of<br />Company DAU(M) 2010 Trend VG Games Games Growing<br />Digital Chocolate 4 +6 11 6<br />Zynga 43 -18 11 1<br />EA 7 -3 8 1<br />Playdom 4 -5 13 1<br />Crowdstar 4 -8 6 1<br /> -34<br /> (source:, 11/21/2010)<br />Confidential<br />11<br />
  12. 12. Disruption Galore<br />ThenNow<br />Hardcore guy Everyone<br />$50 Free with Virtual Goods<br />Wal-Mart Digital<br />PlayStation Anything with a screen<br />Play with yourself Play with everyone<br />100M devices Billions of devices<br />U.S.A. World<br />Sony, EA Up for grabs<br />Confidential<br />12<br />
  13. 13. New Market Explosion<br />Total PC browser users trending towards 2 billion<br />Facebook trending from 600M members to 1 billion<br />Tipping point as 2 billion Western mobile phones “Get Smart” within 2-3 years<br />How long before 1 billion tablets?<br />The browser begins to invade 2 billion color TVs<br />$7 billion in Virtual Goods in China in 2009<br />DeNA and Gree both doing over $1 billion in Japan<br />Nexon just did $570 million in Korea<br />Zynga close to topping $1 billion<br />Confidential<br />13<br />
  14. 14. The Next Big Thing Has 7 Parts<br />Social Games<br />Virtual Goods<br />Free to Play<br />Cross-Platform<br />Interoperable<br />Cloud-Based<br />Cross-Region<br />Confidential<br />14<br />
  15. 15. Why Social Games?<br />Beyond subsistence, our biggest needs are social<br />Social capital has declined so we’re very needy (Bowling Alone)<br />Historically, social media monetize 10x better than other media<br />Games are “conversation starters” that enable social play<br />We all have an inner gamer (sports, Vegas, cards, trivia, play)<br />Everyone now has access to a “game platform”<br />Everyone has a mobile, “social computer”<br />Everyone is joining social networks or using a network browser<br />Even hardcore console gamers have gone social (Guitar Hero, Wii)<br />Social games are completely disrupting games and media sectors<br />Billions of people will be playing social games<br />Confidential<br />15<br />
  16. 16. Why Virtual Goods?<br />By far the most efficient business model for monetization<br />Allows perfect capture of spending appetite from $1 to $10,000<br />Stronger potential for emotional meaning and retention<br />“Investment” principles encourage unparalleled spending<br />Works on any platform and with any payment system<br />Was already $7 billion in China in 2009<br />Proven now in exery country in the world<br />Like SMS texting, has global potential greater than $100 billion<br />Confidential<br />16<br />
  17. 17. Why Free to Play?<br />Everyone is easily able to try it<br />Players want to introduce their friends to the “free benefit”<br />Viral funnel becomes enormous<br />Competition for social status spurs engagement<br />Free players convert and spend money to progress faster<br />Whales get to impress their friends<br />Everyone can keep playing and the cycle continues<br />Confidential<br />17<br />
  18. 18. Why Cross-Platform?<br />Social games are growing everywhere, but on different platforms<br />Japan is mobile<br />China requires a PC “heavy client” install<br />Korea is PC/mobile hybrid<br />U.S. is inside on PC<br />Germany is browser-based male vertical<br />Kids browser-based vertical came from Canada (Club Penguin)<br />Platforms are proliferating<br />“Point platform” hegemony is dying<br />Device populations are burgeoning<br />Everyone can play anywhere, anytime<br />Confidential<br />18<br />
  19. 19. Why Interoperable?<br />Everyone can play together<br />Everyone can find friends to play with<br />Because a single player now roams across multiple devices<br />Everyone knows how because it is uniform and consistent<br />Everyone can help their friends learn and succeed<br />All social media have exploded in size once they became interoperable<br />Fantasy Sports is mass market “existence proof”<br />Confidential<br />19<br />
  20. 20. Why Cloud-Based?<br />Because the browser is going to win<br />Cost-efficient and elegant<br />Easy to update versions<br />Customers can play from machines they don’t own<br />Customers can always get to their stuff<br />Confidential<br />20<br />
  21. 21. Why Cross-Region?<br />Global industry and marketplace<br />Global rollouts of platforms like Facebook, Apple, Android<br />Scale cost advantages<br />Major regional competitors are ready to cross regions<br />Customers enjoy playing and meeting global players<br />Confidential<br />21<br />
  22. 22. Predictions for 2011<br />Facebook becomes a game platform<br />Growth returns to Facebook game ecosystem<br />Rival social game platforms emerge<br />Bazillions of social devices are sold<br />Mobile struggles to become a social network<br />Interoperable games become relevant<br />NanoStars demonstrate an even better form of virtual goods monetization<br />Confidential<br />22<br />
  23. 23. The NanoStars Platform<br />Confidential<br />23<br />
  24. 24. NerdBurger /Brotherhood<br />136<br />Tech (Black) | Human-Male<br />✔<br />+4 to all your cards that are 8 or less. <br />24<br />
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  26. 26. Robin Hood /Foreign Trade<br />Wild (Green) | Human-Male<br />96<br />✔<br />Swap one of your cards with one opponent face-up card.<br />26<br />
  27. 27. Octomaid /Crazy Eights<br />Tech (Black) | Female<br />61<br />✔<br />✔<br />All cards become Eights.Knock restricted. <br />27<br />
  28. 28. Jim/Cult<br />28<br />Spirit (White) | Male<br />✔<br />Kill all your own cards. <br />28<br />
  29. 29. The Next Big Thing is:<br />Social Games<br />Virtual Goods<br />Free to Play<br />Cross-Platform<br />Interoperable<br />Cloud-Based<br />Cross-Region<br />Confidential<br />29<br />