High Quality Content for a Mass Market

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High Quality Content for a Mass Market KIEV
22nd January 2007
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GAMELOFT COMPANY UPDATE

• Latest figures
• N 1 Hot Growth company in Europe!!
  (BusinessWeek)
• 2 500 employees now, of which almost 2 000
  dedicated to production
• 25 Gameloft titles eclipsing one million units
  sold each

• Latest Awards
• Mission Impossible III wins What Mobiles Game
  of the Year 2006
• Best Mobile Game Studio Award at Develop
  Industry Excellence Awards

• New Games, New Licenses
• 47 new games in 2006
• 2007 20 3D Games already planned!
• New Licenses Shrek the third, LOST, Desperate
  Housewives
• Videogames licenses Splinter Cell Double Agent,
  Rayman 4

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INTRODUCTION

• VAS MARKET in UKRAINE
• Is booming

• Potential Threat
• Is the natural growth of the market, which can
  hide the bad experience user.

• So taking into account Ukrainian market
  specificities,
• Its a good opportunuity to pick-up some best
  practices of every market.

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FACTS

• Why do you get a mobile?
• To make calls

• Why do you take one specific handset?
• Listen music,
• Or take pictures,
• Or send emails

• Still, you might be disappointing not having all
  other features
• In fact, the market is more more segmented.

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MARKET FACTS

• Exactly the same for VAS!
• There are Nice to have services not a must
  have
• If end-users are disappointed about a service
  they wont come back for a while!

• Our objective is to generate more ARPU
• How? thanks to High quality products services.

• Conclusion
• Bring the best to end-user, enhance their
  experience make them coming back
• Recruiting new users

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What does High Quality means? On a Game
Perspective 1/ The product 2/ Products
choice 3/ Nice Shop 4/ Easy to Buy 5/ At a
good price 6/ To a Mass Market
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THE PRODUCT ITSELF

• Strong licenses?
• Yes in some cases brands doesnt make all
• Quality is key

• A good gaming experience
• Quality of the Graphic
• Easy to play,
• Easy training,
• Short numerous level,
• Ending games

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Quality in term of Products Diversity

• Users have different tastes in terms of gameplay
  
• Action
• Sports
• Puzzle / Cards
• Arcade / Classics
• Brain games
• Simulation
• Sexy
• It is key for you to have games for all these
  segments to address your mass market audience
• Of course those segments have different sizes so
  games have different performances depending on
  the respective sizes

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Diversity doesnt mean huge catalogue

• A selected number of products
• having 40 games in the racing category does not
  make sense the user is just lost!
• You need to offer a selection of the 3-4 best
  games in each genre to your consumers

• Western Europe US operators trend are
• to rely on a limited number of publisher
• Games portfolio are usually between 150 300
  games

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Leveraging the Portal Experience

• Your wap portal is a shop
• Each click divides the penetration rate
• Easy buying process a short buying process 2-3
  steps.
• Building promotions on the home page is very
  successful
• Ensure the product is similar to the screenshot
  sales pitch

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Maximize the 1st Experience

• Time to Market
• 82 of all content sold in the lifetime of a
  phone is sold in the first 3 months of the
  handset life
• It is crucial to have content online day 1 when
  the handsets come out

• Massive Handset Coverage
• Huge Handset Compatibility
• Porting quality is not always good, its crucial
  to test a specific product on many handsets

• Both are a prerequisite to attract a wide
  audience

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UK carrier Samsung D500
23,069 net revenuefor the carrier
18,000
16,000
15,295
14,000
12,000
10,000
9,663
Downloads
Number of SKUs live
8,845
8,000
6,903
6,000
5,236
5,075
4,000
2,000
139
1,013
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3
5
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0
5
Dec-04
Jan-05
Feb-05
Mar-05
Apr-05
May-05
Jun-05
Jul-05
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How to make them come back
Sell more after the end of this  honey moon 
between the user and his new phone

• An idea base on other entertainment experiences
• A user is hot when he just bought some content
• Logos and ringtones experts have seen the impact
  of a targeted SMS right after the first purchase

• On the Mobile Game Market
• Most of repeat purchases are done in the two
  monthes after the first purchase
• The better the experience is, the higher the
  click rates are.
• 30 of the 2006 Real Football players bought a
  second game within a month !!!

Our goal is to keep on getting to know the
consumer and optimize the repeat purchases
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Presentation of In Game Promotion
Simple click in the main menu to enter IGP menu
Intuitive and quick navigation through the  5
magic button 
End user is taken to the buying page of the game
on the Online Operator Portal
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THE HOT TOPIC OF PRICE

• PRICE IS a Barrier for the growth of the market
• MMetrics study from Q2 2006 says that price is
  one of the 3 main reasons not to buy mobile games

• Benchmark Korea
• GNP / habitant 20,000 in 2003 (Spain is
  23,000)
• Price of mobile games
• 2,500 KRW for 2D games 2
• 3,500 KRW for 3D games 2.8
• Traffic 1,500 KRW for 300 KB 1.2
• Many unlimited data plan from 5,000 KRW per
  month

• Penetration of mobile games 12
• A good selling java game sells 80K a month for a
  20 million customer operator
• Price elasticity is even bigger when the
  customer bases are mainly prepaid users

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QA