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Ray Flame Introduction 2009

Ray Flame Entertainment is a U.S.-based publisher of massively multiplayer online games (MMOs), primarily focusing on bringing high-quality Asian and European titles to the North American market. The company emphasizes cultural localization and understanding in its competitive positioning and aims to capitalize on virtual economies while maintaining partnerships with various game developers. Their marketing strategies include community building, media partnerships, and a robust billing system to attract and retain gamers.

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WWW.WEBMMO.COM A Company Introduction for Ray Flame Entertainment. Oct. 2009 1
Content ‐ Who Are We ‐ Our Games ‐C Company Positioning & Competitive Advantages  P iti i  & C titi  Ad t ‐ Marketing Plan & Gamers Retention Plan ‐ Billing & Payment System ‐ We Can Make A Difference 2
Who Are We? Ray Flame Entertainment was  y Online Game Publishing founded in Nov. 2007, a U.S. based  Massively Multiplayer Online Games  (MMOG s) publisher focused on  (MMOG’s) publisher focused on  Virtual Economy bringing high quality Asian and  European game titles (MMORPG /  Casual / Browser) to the North  In Game Advertising American Market. We have  subsidiary office in Beijing, China. Consulting Services 3
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Our Games ‐Current ‐ Upcoming p g ‐ On the Pipeline p ‐ LOE Facebook                             HC iPhone                             CS MMORPG Game 5
Our Major Game Licensing Partners ‐Shanda Interactive Entertainment ‐Snail Game ‐Shanghai Chenlu g ‐U i Unique Games  G ‐ BigPoint  g 6
Game Title: Lords of Evil / Award: IGN/Fileplanet.com Editor’s Pick Website: http://lord.webmmo.com Category: Fantasy Target Audience: Age 15‐34 online gamers. Revenue Model: Free to play, Micro‐transaction. p y, Features: Guild System, Stronghold Battle, Unique Building and Army Development  7
Game Title: The Legacy of Holy Castle Website: http://holy.webmmo.com Category: Medieval Target Audience: Age 15‐34 online gamers. Revenue Model: Free to play, Micro‐transaction. p y, Features: Special Heroes, Building Development, 2D Map, Battle Formations 8
Game Title: Heroes of Gaia Website: http://hog.webmmo.com Category: Middle Earth Fantasy Target Audience: Age 15‐34 online gamers. Revenue Model: Free to play, Micro‐transaction. Features: Animation Battles, Tasks for Heroes, unique level‐up system. 9
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Why Us?  Publishing a game title in China /  Korea is totally different from  Culture Differences publishing the game in the U.S. Distribution  A successful game in China / Korea Channels ≠ It will succeed in the North  American Market Marketing Channels ? What about the billing system,  payment solutions and charge back  problems  11
Company Positioning ‐Be a leading game licenser/publisher/operator for Asian / European games in  gg /p / p / p g the U.S. and other overseas markets. ‐Help Asian games, especially games in China and Korea, on globalization,  localization, market entry and market campaign with a focus on U.S. market. ‐Capitalize on virtual economy and virtual item secondary markets. ‐Synergize in game activities/advertising with traditional industries. ‐Bridge big budget gaming companies and studios with low cost  development centers in Asia. d l 12
Competitive Advantages Comparing to US Game Companies US Companies US C i Ray Flame Entertainment R  Fl  E t t i t Traditional Model Free to Play Model Monthly Fee ($15‐20/month) High Cost in Dev. & Operation  (15M R&D, 10M Promotion & Operation) Low Cost License & Operation Language &  Cross Border Synergy Cultural Barriers Big Players Slower  Time to Market to Market 13
Competitive Advantages Comparing to Korean/Chinese Companies Korean/Chinese  Companies Ray Flame Entertainment R  Fl  E t t i t Lack of Access and understanding  Bi-lingual,, Access to both of both markets  booming markets Cross cultural, Superior Sloppy Translation or Localization Localization Strategies Limited local presence or channel  Marketing, Distribution and partnership Media partnerships Superior Game Selection & Strong Negotiation Mediocre Games Selection Capabilities 14
Key Success Factors Five Keys to Succeed • Team members with combined 10+ years online game operating/publishing experience  from China, Korea and U.S.  • Developed 300,000 registered gamers in 4 months  • Access to database of over 6 million US gamers • Access to multiple games from China, Korea and Germany, solid game selection and  negotiation techniques . Partners with Shanda Interactive Entertainment now. • Extensive experiences with PR, marketing, distribution and media relations • Extensive working experiences/relationships with billing system providers  payment  Extensive working experiences/relationships with billing system providers, payment  solution vendors and anti‐fraud system providers 15
Previous Success Case : MMO‐ Previous Success Case : MMO‐Client Webmmo.com is focusing on MMO browser games but Ray Flame  Entertainment s founding partners actually launched the another  Entertainment’s founding partners actually launched the another  Chinese MMORPG game – World of Kung Fu successfully in 2008.  16
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Marketing Plan ‐ Ad Purchasing (Media Partners, Google Adwords, and etc.) ‐Co publishing with other world famous online publishers Co‐publishing with other world‐famous online publishers ‐Partnership with game portals, download sites, etc ‐Partnership with media companies ‐Creative PR exposures: press releases, PR campaigns & events ‐Utilize gamers community, social networking sites  ‐Gamers reviews, bulletin board, forums Gamers reviews  bulletin board  forums ‐Contests, events, promotions ‐Search engine optimization ‐Campus campaigns, retail channels ‐1 Million gamer database ‐ Others 18
U.S. Media Partner (General Community) 19
U.S. Media Partners (Chinese Community) • Chinese American TV Stations • Chinese American Radio Stations • Chinese American Newspapers • Online Media, Websites, Portals that target Chinese Community • Chinese Language Schools • Chinese Art Design / Music Schools • Chinese American Organizations / Associations • Chinese American Event Management Companies 20
Community Building and Gamer Retention Plan ‐Refer a friend program ‐ Competition Events ‐ Seasonal Events  ‐ Weekly Newsletter ‐ Forum ‐ Blogging  ‐ Player Ranking ‐ Contest 21
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Billing System / Payment Solutions – Billing System / Payment Solutions – We Know Them All! ‐Gamers need to have an account ‐Credit Card ‐Pre paid Card Pre‐paid Card ‐Free‐to‐Gamer (CPA model) ‐Anti – Fraud System ‐Others 23
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Marketing and Branding ‐ All Marketing campaigns, Advertisings, Events management during  All Marketing campaigns  Advertisings  Events management during  CB, OB and Official launch Service Offering Search Engine  Campaign  Database  Press Release Game Reviews Optimization Management Marketing Forum  F   Marketing  Community  Media Buy Offline Events Promotion Intelligence Building Confidential Information 2009/11/4 25
Localization Methodology USA / Korea / Japan ‐ Looking for seed funding of $1.5M Korea USA Japan ‐ Willing to give up 15‐20% shares Power Distance 60 40 54 Individualism 18 91 46 Masculinity (Function Based) 39 62 95 Uncertainty Avoidance (Rule) 85 46 92 By Geert Hofstede, PhD High Low Masculinity Limited number of selection Various selection Goal-oriented navigation Relation-oriented navigation Functional images Decorative images Uncertainty Limited amount of contents per Page with long scroll Avoidance page Abstract images Everyday and concrete image Repetitive expression R titi i 26
Localization Process • Early stage user and context research Select games and developers ‐ Looking for seed funding of $1.5M • Game acceptance research • Competitive game test ‐ Willing to give up 15‐20% shares • UI Inspection Define localization issues • Game test & observation • In depth interviews In‐depth interviews Decide the level of localization Develop localized version Closed  Open   Official  Billing Beta Beta Launch • Continuous UI enhancement • Website IA • Billing process implementation Q.A. Testing Q A  Testing 27
Translation Improvement ‐ In‐game translation ‐ Storyline mock‐up ‐ Gamer’s guild / FAQ improvement ‐ Language – errors inside the code Language  ‐ Chatting room filtering system ‐ Others 28
Others ‐ Other Marketing Campaigns / Promotions ‐ Payment Solutions Selection / Comparison / Introduction  ‐ Billing System Integrations ‐ Media Partner Connection ‐ Anti‐Fraud Issues ‐ Trademark Registration ‐ Legal Issues ‐ Customer Services ‐ Etc. 29
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