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#SOCIALGAMING
TOO BIG TO IGNORE
Wei Chee
ZA Solutions
What is Social Gaming?

“Casual games designed to be played with friends
on online social platforms”
                      - Justin Smith, Inside Facebook


“Casual Gaming is the Arcade Business rising from
the ashes of the 1980s”
                - Nicholas Carlson, Business Insider
What is Social Gaming?
Social Gaming Statistics
 ¼ of “consumers” play social game

 The average social gamer is a 43 year old lady

 Female driven industry, 38% play several times
 a day

 1 in 10 social gamers’ session last >3 hours

 83% play on Facebook
The Rise of Social Gaming
The Rise of Social Gaming
The Rise of Social Gaming
        World of Warcraft
        1,500,000 total users


       Xbox live
       20,000,000 total users



       ~ 207,000,000 Social Gamers
       Monthly active Users
The Rise of Social Gaming


             Zynga
             360,000,000
             Monthly active Users
The Rise of Social Gaming
The Rise of Social Gaming

  The opening of social network platforms for
  3rd Party developers

  The rise of smart mobile devices

  The rise of internet penetration, billing
  infrastructure
Social Gaming Designs
3 Key Stages of                      Enthusiast
Player Life cycle                     Mastery

                     Regular
                    Habit-Building
Newbie
Onboarding
Social Gaming Designs
Social Gaming Designs


       Visible Progress                       Positive Emotion
  Stats / Challenges / Awards / Messages   Fun / Delight / Trust / Pride / Curious




  Player (re)Engagement                    (social) Call to Action
    Task / Mission / Game / Quiz / Gift     Customize / Share / Help / Compete




                                                                  Newbie
                                                                 Onboarding



 Engagement Loop
Social Gaming Life Cycle

     Monetization    Iteration


                    Iteration
Social Gaming Dynamics
  Focus on social emotions – friendship, love,
  pride, envy, anger

  Social first, fun second

  No brainer, easy pick-me-up

  Target (niche) users

  Easy payment methods
Social Gaming Trend
                               Social     Activity
                              Analytics   Streams
               Group Buying
                                                     Virtual Worlds


          Gamification
                                                                  Location-
                                                                 Aware Apps


 Internet of
   Things




     Social TV




Gartner’s Hype Cycle
Social Gaming Trend

 Mobile Devices: The Shiny New Toy

 Location Based Game

 Virtual Social World

 Asia Market
Social Gaming Cost

 1)Development Cost = $100k ~ $300k

 2) Initial Marketing Cost = $50k ~ $200k

 3) Live Operation = $12.5k ~ $22.5k

 Cost of One game launch = $175.5k ~ $522.5k
Social Gaming Cost
 Market Assumptions:
 • Number of games: 4
 • Average DAU for each successful game in a year: 400k
 • Number of successful games: 1~2
 • Assumed monetization: $45/1000 DAU
 • Facebook cut: 30%
Total cost of 4 games     Yearly Revenue       Yearly Revenue
        launch          (25% success rate)   (50% success rate)
      $1.96 mil          $770k ~ $12.3mil    $1.54mil ~ $24.5mil
Social Gaming Cost
Case Study:
              • Rovio 34th game
              • Initial dev cost of €100k++
              • Current revenue USD $1mil/month

              • OMGPop 36th game
              • Initial dev cost USD$250k???
              • Current revenue USD $250k/day
GAMIFICATION
Zanadu
Who are We:
Specialize in multi-user virtual world platform solution

Team:
8+ developer, artist, designer, social media manager

Location:
- Upstairs
- Chiang Mai
Thank you!
weichee.lee@zanadu.com.my
fb.com/leeweichee

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The Rise of Social Gaming: How Casual Games on Social Platforms Became a Billion Dollar Industry

  • 3. What is Social Gaming? “Casual games designed to be played with friends on online social platforms” - Justin Smith, Inside Facebook “Casual Gaming is the Arcade Business rising from the ashes of the 1980s” - Nicholas Carlson, Business Insider
  • 4. What is Social Gaming?
  • 5. Social Gaming Statistics ¼ of “consumers” play social game The average social gamer is a 43 year old lady Female driven industry, 38% play several times a day 1 in 10 social gamers’ session last >3 hours 83% play on Facebook
  • 6. The Rise of Social Gaming
  • 7. The Rise of Social Gaming
  • 8. The Rise of Social Gaming World of Warcraft 1,500,000 total users Xbox live 20,000,000 total users ~ 207,000,000 Social Gamers Monthly active Users
  • 9. The Rise of Social Gaming Zynga 360,000,000 Monthly active Users
  • 10. The Rise of Social Gaming
  • 11. The Rise of Social Gaming The opening of social network platforms for 3rd Party developers The rise of smart mobile devices The rise of internet penetration, billing infrastructure
  • 12. Social Gaming Designs 3 Key Stages of Enthusiast Player Life cycle Mastery Regular Habit-Building Newbie Onboarding
  • 14. Social Gaming Designs Visible Progress Positive Emotion Stats / Challenges / Awards / Messages Fun / Delight / Trust / Pride / Curious Player (re)Engagement (social) Call to Action Task / Mission / Game / Quiz / Gift Customize / Share / Help / Compete Newbie Onboarding Engagement Loop
  • 15. Social Gaming Life Cycle Monetization Iteration Iteration
  • 16. Social Gaming Dynamics Focus on social emotions – friendship, love, pride, envy, anger Social first, fun second No brainer, easy pick-me-up Target (niche) users Easy payment methods
  • 17. Social Gaming Trend Social Activity Analytics Streams Group Buying Virtual Worlds Gamification Location- Aware Apps Internet of Things Social TV Gartner’s Hype Cycle
  • 18. Social Gaming Trend Mobile Devices: The Shiny New Toy Location Based Game Virtual Social World Asia Market
  • 19. Social Gaming Cost 1)Development Cost = $100k ~ $300k 2) Initial Marketing Cost = $50k ~ $200k 3) Live Operation = $12.5k ~ $22.5k Cost of One game launch = $175.5k ~ $522.5k
  • 20. Social Gaming Cost Market Assumptions: • Number of games: 4 • Average DAU for each successful game in a year: 400k • Number of successful games: 1~2 • Assumed monetization: $45/1000 DAU • Facebook cut: 30% Total cost of 4 games Yearly Revenue Yearly Revenue launch (25% success rate) (50% success rate) $1.96 mil $770k ~ $12.3mil $1.54mil ~ $24.5mil
  • 21. Social Gaming Cost Case Study: • Rovio 34th game • Initial dev cost of €100k++ • Current revenue USD $1mil/month • OMGPop 36th game • Initial dev cost USD$250k??? • Current revenue USD $250k/day
  • 23.
  • 24. Zanadu Who are We: Specialize in multi-user virtual world platform solution Team: 8+ developer, artist, designer, social media manager Location: - Upstairs - Chiang Mai
  • 25.
  • 26.