T-Mobile
     Games




Mobile Gaming
5/9/2012
The Mobile Landscape
Industry Refresher
Feature Phones

The traditional carrier storefront existed on java phones. Despite a
strong user base for feature phones the markets are moving to smart
phones.

    – Global Feature Phone Penetration 85%
    – Users and developers are moving to smart phones
    – Content is still selling on these storefronts




4                               Proprietary and Confidential
Smart Phones
“iOS dominates mobile gaming but Android will claim the top spot in the
near future as developers embrace Android and Google continues to iron
out its payment process.” – 2012 Casual Games Sector Report

                              – Global Smartphone Penetration:      15%
                              – US Smartphone Penetration:          31%
                              – 80% of our contract customers are choosing
                                smart phones

                              – Revenue by smartphone OS
                                 • iOS:       50%
                                 • Android:   30%
                                 • Other:     20%
                                     – Windows
                                     – BlackBerry



5                            Proprietary and Confidential
Mobile Storefronts



         iOS                                                             Android
         App Store                                                       Google Play
         25 billion downloads                                            10 billion downloads
         550,000 apps                                                    400,000 apps


                                                         Carrier
                                                         T-Mobile Mall, AT&T App Center, Verizon
                                                         App Store…

         Other                                           3rd Party
         Windows Marketplace                             Amazon, GetJar, AndroidPit, Developer
         BlackBerry App World                            D2Cs, Game Hub, TegraZone, etc., etc.




6                               Proprietary and Confidential
Mobile Storefronts




7                    Proprietary and Confidential
Business Models

Mobile games are blazing trails on providing different ways to monetize.

    – Premium
        • Estimated 2012 revenue 2012: 37%
    – Advertising
        • Estimated 2012 revenue 2012: 6%
    – In-Ap Purchases (Paymium & Freemium)
        • Estimated 2012 revenue 2012: 55%
    – Other
        • Subscriptions
        • Rentals
        • Premium SMS




8                             Proprietary and Confidential
The Road Ahead
Where’s it Going? Who’s Playing?

Today there’s a big gap between traditional and casual gamers.

Casual Gamers (“I don’t play games”)
     – Social
     – Hidden Object, Ville’s, Puzzles, etc.


Traditional Gamers (“Why do you do this $@!& Leeroy!?!”)
     – MMOs
     – Console Quality




10                                  Proprietary and Confidential
Where’s it Going? Types of Games

Different games appeal to different audiences and platforms.

     –   Social
     –   Physics
     –   Villes
     –   Hidden Object
     –   Racing
     –   Cards & Casinos
     –   Puzzles
     –   Etc.




11                           Proprietary and Confidential
Where’s it Going? Platforms & Convergence

Mobile strategies are continuing to evolve and will greatly impact
our industry.

     –   Facebook
     –   Google +
     –   Sony Playstation
     –   Microsoft Xbox
     –   Online
     –   PC




12                            Proprietary and Confidential
Where’s it Going? Console & Handhelds

Mobile hardware is improving faster then consoles.
     –   “Console Killing”
     –   Accessories
     –   NUIs
     –   Multiplayer (Real time head to head play)
     –   In game Voice Chat


Dedicated gaming devices are losing ground.
     – Nintendo
     – Sony




13                                   Proprietary and Confidential
Where’s it Going? Cloud

Cloud services are providing new ways to play and promote games.

     – OnLive
     – GaiKai
     – iCloud




14                         Proprietary and Confidential
Where’s it Going? Game Networks

Game-specific social networks increase awareness and retention as
well as facilitate social gameplay.

     –   Gree / OpenFeint
     –   Mobage
     –   Papaya
     –   Playphone
     –   Heyzap
     –   Zynga
     –   EA




15                          Proprietary and Confidential
Where’s it Going? HTML5

There are a lot of challenges to solve before the promise of HTML5 can
be realized.

Challenges
     – App discovery
     – Browser fragmentation
     – Mobile payments


The buzz
     –   Cross-platform development
     –   Game engines
     –   Native applications
     –   Changing the storefront model




16                                  Proprietary and Confidential
Where’s it Going? Brands & Licensing

Brands
     –   Angry Birds
     –   Where’s My Water?
     –   FarmVille
     –   Etc.


More than games
     –   Apparel
     –   Candy
     –   Toys
     –   Videos, Movies
     –   Etc.




17                           Proprietary and Confidential
T-Mobile
About T-Mobile

In a world full of busy and fragmented lives, we at T-Mobile USA, Inc.,
have this idea that wireless communications can help. The value of our
plans, the breadth of our coverage, the reliability of our network, and
the quality of our service are meant to do one thing: help you stick
together with the people who make your life come alive. That’s why
we’re here.

     – TMO Customers – 33.2M
     – More customers are taking advantage of 4G speeds. Today, 80 percent of new
       contract customers are choosing smartphones. And nearly 60 percent of our
       contract customers now carry smartphones, which is well above the U.S. industry
       average of 50 percent according to Nielsen.
     – T-Mobile smartphone customers are consuming 760MB of data per month on
       average. That’s 30 times more vs. just three years ago.




19                                 Proprietary and Confidential
Brand Update




               T-MOBILE.COM/TESTDRIVE
               http://www.youtube.com/watch?v=5OIWfmjnJPs




20             Proprietary and Confidential
Our Customers Play Games

               Mobile Game Buyer Penetration by Carrier
                             Mobile Game Penetration of Buyers by Carrier
                                                     Q4 2010–Q4 2011




     Q4 2010 (n=55,655), Q1 2011 (n=55,302), Q2 2011 (n=56,289), Q3 2011 (n=55,641), Q4 2011 (n=57,870)




21                                            Proprietary and Confidential
Games Play Better on Great Hardware




22                 Proprietary and Confidential
Games + Hardware

T-Mobile is a tech leader with a long history of pushing the envelope.
And moving forward we’re working to provide “better-then-console”
hardware.

     – T-Mobile launched the T-Mobile G1, the world’s first Android smartphone –
       starting the Android revolution!
     – T-Mobile launched the world’s first Dual Core processor, the NVIDIA Tegra 2 in
       the G2x – a 4G device built for gaming.
     – T-Mobile has partnered and launched high-end technology devices like the
       Galaxy S2, HTC Sensation & HTC Amaze – all 4.3-4.5” screens with Dual Core
       processors and 4G speeds – arguably some of the best mobile devices to date
       for Gaming
     – T-Mobile has built great Accessories like the T-Mobile Micro HDMI Cable and the
       MHL Connection kit that help gamers take their experiences on the small screen
       to a full HDTV
     – T-Mobile continues to work with developers and partners large and small to
       deliver the best gaming experiences from casual to Console quality gaming.

23                                 Proprietary and Confidential
Game Base

Find and play the best in mobile gaming.
From hi-def racing action to challenging
puzzle and word games for you and your
friends.

     – Preloaded on Android Phones
     – Launched in March 2012
     – Major update in June 2012




24                              Proprietary and Confidential
T-Mobile Mall

Our storefront on Android and Java phones
offers games, apps, ringtones and wallpapers.

     – 4M installs on Android
     – 1.5M New App
     – 700K Users per week




25                              Proprietary and Confidential
T-Mobile Top Picks

Our section in Google Play to promote games
and applications.

     – Launched 12/2009 along with carrier billing
     – T-Mobile has 25 slots to highlight apps in a simple
       to view list




26                                  Proprietary and Confidential
T-Mobile Bonus Apps

Our section in Google Play to promote games
and applications.

     – Launched 12/2009 along with carrier billing
     – T-Mobile has 25 slots to highlight apps in a simple
       to view list




27                                  Proprietary and Confidential
T-Mobile’s Perspective
What we really want is… Great Games!

We’re looking to create a better user and gaming experience through a
combination of plans, hardware and content. Highlight the games our
customers are looking for and would like to play.

Games
     – Exclusives, New & Cool
     – Showcase titles (show off network and hardware)
     – Social, Freemium, etc.


Game Partners
     – Open dialog, Work together
     – Analytics
     – Learning and growing




29                                  Proprietary and Confidential

Mobile gaming sxsw

  • 1.
    T-Mobile Games Mobile Gaming 5/9/2012
  • 2.
  • 3.
    Feature Phones The traditionalcarrier storefront existed on java phones. Despite a strong user base for feature phones the markets are moving to smart phones. – Global Feature Phone Penetration 85% – Users and developers are moving to smart phones – Content is still selling on these storefronts 4 Proprietary and Confidential
  • 4.
    Smart Phones “iOS dominatesmobile gaming but Android will claim the top spot in the near future as developers embrace Android and Google continues to iron out its payment process.” – 2012 Casual Games Sector Report – Global Smartphone Penetration: 15% – US Smartphone Penetration: 31% – 80% of our contract customers are choosing smart phones – Revenue by smartphone OS • iOS: 50% • Android: 30% • Other: 20% – Windows – BlackBerry 5 Proprietary and Confidential
  • 5.
    Mobile Storefronts iOS Android App Store Google Play 25 billion downloads 10 billion downloads 550,000 apps 400,000 apps Carrier T-Mobile Mall, AT&T App Center, Verizon App Store… Other 3rd Party Windows Marketplace Amazon, GetJar, AndroidPit, Developer BlackBerry App World D2Cs, Game Hub, TegraZone, etc., etc. 6 Proprietary and Confidential
  • 6.
    Mobile Storefronts 7 Proprietary and Confidential
  • 7.
    Business Models Mobile gamesare blazing trails on providing different ways to monetize. – Premium • Estimated 2012 revenue 2012: 37% – Advertising • Estimated 2012 revenue 2012: 6% – In-Ap Purchases (Paymium & Freemium) • Estimated 2012 revenue 2012: 55% – Other • Subscriptions • Rentals • Premium SMS 8 Proprietary and Confidential
  • 8.
  • 9.
    Where’s it Going?Who’s Playing? Today there’s a big gap between traditional and casual gamers. Casual Gamers (“I don’t play games”) – Social – Hidden Object, Ville’s, Puzzles, etc. Traditional Gamers (“Why do you do this $@!& Leeroy!?!”) – MMOs – Console Quality 10 Proprietary and Confidential
  • 10.
    Where’s it Going?Types of Games Different games appeal to different audiences and platforms. – Social – Physics – Villes – Hidden Object – Racing – Cards & Casinos – Puzzles – Etc. 11 Proprietary and Confidential
  • 11.
    Where’s it Going?Platforms & Convergence Mobile strategies are continuing to evolve and will greatly impact our industry. – Facebook – Google + – Sony Playstation – Microsoft Xbox – Online – PC 12 Proprietary and Confidential
  • 12.
    Where’s it Going?Console & Handhelds Mobile hardware is improving faster then consoles. – “Console Killing” – Accessories – NUIs – Multiplayer (Real time head to head play) – In game Voice Chat Dedicated gaming devices are losing ground. – Nintendo – Sony 13 Proprietary and Confidential
  • 13.
    Where’s it Going?Cloud Cloud services are providing new ways to play and promote games. – OnLive – GaiKai – iCloud 14 Proprietary and Confidential
  • 14.
    Where’s it Going?Game Networks Game-specific social networks increase awareness and retention as well as facilitate social gameplay. – Gree / OpenFeint – Mobage – Papaya – Playphone – Heyzap – Zynga – EA 15 Proprietary and Confidential
  • 15.
    Where’s it Going?HTML5 There are a lot of challenges to solve before the promise of HTML5 can be realized. Challenges – App discovery – Browser fragmentation – Mobile payments The buzz – Cross-platform development – Game engines – Native applications – Changing the storefront model 16 Proprietary and Confidential
  • 16.
    Where’s it Going?Brands & Licensing Brands – Angry Birds – Where’s My Water? – FarmVille – Etc. More than games – Apparel – Candy – Toys – Videos, Movies – Etc. 17 Proprietary and Confidential
  • 17.
  • 18.
    About T-Mobile In aworld full of busy and fragmented lives, we at T-Mobile USA, Inc., have this idea that wireless communications can help. The value of our plans, the breadth of our coverage, the reliability of our network, and the quality of our service are meant to do one thing: help you stick together with the people who make your life come alive. That’s why we’re here. – TMO Customers – 33.2M – More customers are taking advantage of 4G speeds. Today, 80 percent of new contract customers are choosing smartphones. And nearly 60 percent of our contract customers now carry smartphones, which is well above the U.S. industry average of 50 percent according to Nielsen. – T-Mobile smartphone customers are consuming 760MB of data per month on average. That’s 30 times more vs. just three years ago. 19 Proprietary and Confidential
  • 19.
    Brand Update T-MOBILE.COM/TESTDRIVE http://www.youtube.com/watch?v=5OIWfmjnJPs 20 Proprietary and Confidential
  • 20.
    Our Customers PlayGames Mobile Game Buyer Penetration by Carrier Mobile Game Penetration of Buyers by Carrier Q4 2010–Q4 2011 Q4 2010 (n=55,655), Q1 2011 (n=55,302), Q2 2011 (n=56,289), Q3 2011 (n=55,641), Q4 2011 (n=57,870) 21 Proprietary and Confidential
  • 21.
    Games Play Betteron Great Hardware 22 Proprietary and Confidential
  • 22.
    Games + Hardware T-Mobileis a tech leader with a long history of pushing the envelope. And moving forward we’re working to provide “better-then-console” hardware. – T-Mobile launched the T-Mobile G1, the world’s first Android smartphone – starting the Android revolution! – T-Mobile launched the world’s first Dual Core processor, the NVIDIA Tegra 2 in the G2x – a 4G device built for gaming. – T-Mobile has partnered and launched high-end technology devices like the Galaxy S2, HTC Sensation & HTC Amaze – all 4.3-4.5” screens with Dual Core processors and 4G speeds – arguably some of the best mobile devices to date for Gaming – T-Mobile has built great Accessories like the T-Mobile Micro HDMI Cable and the MHL Connection kit that help gamers take their experiences on the small screen to a full HDTV – T-Mobile continues to work with developers and partners large and small to deliver the best gaming experiences from casual to Console quality gaming. 23 Proprietary and Confidential
  • 23.
    Game Base Find andplay the best in mobile gaming. From hi-def racing action to challenging puzzle and word games for you and your friends. – Preloaded on Android Phones – Launched in March 2012 – Major update in June 2012 24 Proprietary and Confidential
  • 24.
    T-Mobile Mall Our storefronton Android and Java phones offers games, apps, ringtones and wallpapers. – 4M installs on Android – 1.5M New App – 700K Users per week 25 Proprietary and Confidential
  • 25.
    T-Mobile Top Picks Oursection in Google Play to promote games and applications. – Launched 12/2009 along with carrier billing – T-Mobile has 25 slots to highlight apps in a simple to view list 26 Proprietary and Confidential
  • 26.
    T-Mobile Bonus Apps Oursection in Google Play to promote games and applications. – Launched 12/2009 along with carrier billing – T-Mobile has 25 slots to highlight apps in a simple to view list 27 Proprietary and Confidential
  • 27.
  • 28.
    What we reallywant is… Great Games! We’re looking to create a better user and gaming experience through a combination of plans, hardware and content. Highlight the games our customers are looking for and would like to play. Games – Exclusives, New & Cool – Showcase titles (show off network and hardware) – Social, Freemium, etc. Game Partners – Open dialog, Work together – Analytics – Learning and growing 29 Proprietary and Confidential