Delivered at Casual Connect Europe 2016 With eCPI on the rise, what can studios do to still be profitable? MegaZebra shares their approach to maximizing LTV by focusing on the “life-time” aspect of the equation. Find out how they have created evergreen titles and what they are working on next.

1. Putting “life-time” back
into LTV

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Profitable and growing gaming studio from Munich,
Germany
We develop evergreen F2P game titles
Our highly synergistic code-base allows us to bring up
games faster and operate them very cost-efficiently
We built two successful game franchises with repeat hits
A focus on analytics permeates all company functions
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STRICTLY CONFIDENTIAL - ©2016 MegaZebra GmbH
heroes & entertainment

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Games
We are a makers of evergreen franchises
Trails Franchise Suburbia Franchise
Trails franchise integrates
progression game mechanics with
the most popular games titles
Unannounced title
Suburbia franchise integrates life
simulation mechanics with episodic
TV-style story lines
Unannounced title
Unannounced title
STRICTLY CONFIDENTIAL - ©2016 MegaZebra GmbH

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Evergreen
Great boots, but with a huge difference
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Evergreen
Great cars, but with a huge difference
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Shark Finning
Marketing
Push at
Launch
People and
Marketing is
shifted to new
games
» Game Team starts game from
scratch
» When ready, marketing
releases fire power
» After 6-24 months, team is
shifted to a new game
» Marketing is reduced
» New game is started from
scratch
STRICTLY CONFIDENTIAL - ©2016 MegaZebra GmbH

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The other path
The overlooked component to profitability
V: Some influence via CRM, good
balancing and new content
eCPI: Some influence via virality,
smart campaigns, ASO, getting
featured
LT: This you can influence a lot and
it is (totally) up to you
LTV > eCPI
STRICTLY CONFIDENTIAL - ©2016 MegaZebra GmbH

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Revenue
Mahjong Trails
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Revenue per User
Mahjong Trails
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DAU/MAU
Mahjong Trails
0%
5%
10%
15%
20%
25%
30%
35%
40%
Dec-12
Mar-13
Jun-13
Sep-13
Dec-13
Mar-14
Jun-14
Sep-14
Dec-14
Mar-15
Jun-15
Sep-15
Dec-15
STRICTLY CONFIDENTIAL - ©2016 MegaZebra GmbH

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» Extending the LT is
something that sometimes
can be done post-launch
» Ideally, however, you plan
for it beforehand
» It has implications on these
factors:
› Team
› Genre / Game Design
› Demographics / Audience
› Technology
› Platform
STRICTLY CONFIDENTIAL - ©2016 MegaZebra GmbH
Chosing new Titles
The basics

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» At MegaZebra, the team
developing the game is the
same that works on it post-
launch
» During the course of the
years, there will be some
changes in the team
» However, people will be
working on it for longer
than in other setups
» Ensure enough personal
progression to account for
this
» Never lose focus and
commitment
STRICTLY CONFIDENTIAL - ©2016 MegaZebra GmbH
Team
Setting up teams for long-term projects

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» Don’t go for short-term
trends
» Pick genres with ever-
green potential
» Watch out for content war
» Create endless game
design loops
» Develop prototypes for the
end game as well
STRICTLY CONFIDENTIAL - ©2016 MegaZebra GmbH
The Game
Game Play and Genre Decisions

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» Avoid audiences that
change rapidly
» Kids / teenagers force you
to constantly acquire new
users as they get older
» Go mass-market
» Go for broad appeal to
ensure a big enough target
audience
STRICTLY CONFIDENTIAL - ©2016 MegaZebra GmbH
The Players
Demographics and Audience

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» Pick technologies that
don’t change too rapidly or
are currently declining
» Use technology that will be
mass-market for years to
come
» Avoid declining platforms
like browser-based games
» Avoid niche technologies
and brand new tech that
appeals only to early
adopters
» Avoid unproven
technologies / platforms
» Build tools to efficiently
add content and features
STRICTLY CONFIDENTIAL - ©2016 MegaZebra GmbH
Development
What Technology and Platform to us

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» Extending the life-time
might be the biggest lever
to reach profitability
» Chose carefully before you
start development
» Build modern classics that
define a category
» Become profitable
STRICTLY CONFIDENTIAL - ©2016 MegaZebra GmbH

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Thank You!
STRICTLY CONFIDENTIAL - ©2016 MegaZebra GmbH