Bigpoint is a leading online games developer with over 250 million registered users across 70 games. In recent years, social gaming on Facebook has dominated the market, led by companies like Zynga. However, the market is becoming saturated on Facebook. New opportunities exist on platforms like Google+ and beyond social networks on broader online and mobile platforms. To succeed beyond Facebook, companies need to leverage diverse distribution channels, offer a variety of game genres on multiple platforms, and perfect the free-to-play business model to extend the lifecycle of individual games and maximize revenue.
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Growth Opportunities for Online Games Beyond Facebook and Google
1. Growth Opportunities for
Online Games Beyond
Facebook
Philip Reisberger
Chief Revenue Officer
Social Gaming Summit
Berlin May 2012
2. Bigpoint at a Glance
The Company The Figures
Founded 2002 70 active games, 35 languages
Number of Employees 900 More than 250+ million users
Over 1 billion daily transactions
Key Titles
Battlestar Galactica
Online, Drakensang Industry Accolades
Online, DarkOrbit, Farmerama Deutscher Computerspielepreis 2012
European Business Awards 2011
Unity Awards 2011
Locations Investor Allstars Awards 2011
Hamburg (GER), Berlin (GER) Startup of the Century Award 2011
San Francisco (USA) European Games Awards 2011
Malta, Sao Paulo (BRA) Browser Game of the Year 2011
Paris (FRA), London (UK), Rome Mashable Best Online Game 2010
(ITA), Madrid (ESP) International Business Award 2010
2
5. Social Games Explosion
Top 10 Facebook Games of 2011
1. GARDENS OF TIME
(PLAYDOM)
2. THE SIMS SOCIAL
(EA)
3. CITYVILLE
(ZYNGA)
4. DOUBLEDOWN CASINO
(DOUBLEDOWN ENTERTAINMENT)
5. INDIANA JONES ADVENTURE WORLD
(ZYNGA)
6. WORDS WITH FRIENDS
(ZYNGA)
7. BINGO BLITZ
(BUFFALO STUDIOS)
8. EMPIRES & ALLIES
(ZYNGA)
9. SLOTOMANIA-SLOT MACHINES
(PLAYTIKA)
10. DIAMOND DASH
(WOOGA)
Source: Mashable 5
6. Typical social game product lifecycle UPDATE
CityVille (Zynga), FarmVille (Zynga), The Sims Social (EA)
FarmVille Cityville Sims Social Empires & Allies Gardens of Time
98.4 98.8
89.6 88.7 89.9 87.6
80.1 78.9
75.9
MAU in millions
74.6
66.5
57.60
53.20
50.50 50.1 49.7
47.00 46.90 45.2
44.50 44.7 42.4
39.00 30.80
34.90 35.70 35.40 30.90
30.9 30.4
24.6 28
15.9 17.2 20 18.2
12.7 14.2 14.6
10.8 9.7
4
Jan-11 Apr-11 Jul-11 Oct-11
Timeline
6
7. In Europe, Facebook is building a dedicated gaming team…
Goal to replicate US gaming ecosystem
More then 500 million downloads of Angry Birds across all platforms
Angry Birds Rio won "Best Mobile App for Consumers" at Global Mobile
Awards, "Best Mobile Game" at the Mobile Excellence Awards and
"Best Mobile Game" at the Golden Joystick Awards.
185% User Growth in 2011 – Berlin Start Up #3 on Facebook
14 million (01/11) => 40 million MAU (01/12).
Diamond Dash & Magic Land launched on Facebook & synchronized
mobile versions (connect across platforms)
Finnish game developer
The company is focused on making games that are bigger in scope than
most social games but are less involved than massively multiplayer
online games or console games
7
8. Developers continue to seek opportunities outside of
Facebook
Social connectivity as integral: casual
games can be very successful
• Decrease in diversity of games
• Re-skinning of games
Easy cross-promotion for Zynga
• Recycling/overlapping users
Competition for new entrants /
saturation
• High new user acquisition costs
9. New Google+ Platform
Growth Potential
• Launched in August 2011
• Rapid growth rate: 625k registration/day
• Estimated 300-400 million users by the
end of 2012
• Integrates Google services
• Unsaturated green field for game
developers
Source: Business Insider 9
10. User Demographics
Facebook and Google+
FACEBOOK GOOGLE+
71%
43%
57% 29%
Managers, Servers, Students, Homemakers, Software
Sales Associates, Interns, etc. Engineers, Consultants, Developers, Design
ers, Writers, Web
Developers, Programmers, etc.
CASUAL CORE
Source: All Facebook, PlusDemographics 10
11. Game Development
FACEBOOK GOOGLE+
Strong Integrates Google
infrastructure, Advanced/exten ecosystem, Simplified APIs
sive APIs Lightweight social network
High social connectivity Genres: flexible, core games
Genres: casual games Open game technology
Simple game technology 5% commission to Google for
30% commission to FB for in- in-game purchases
game purchases On- and Off-canvas
On-canvas Wide audience
Built-in audience
11
14. Success can be achieved off of Facebook
Average time played per day (minutes)
291
248 236 235 240
160
40
14
15. Success off Facebook/G+ driven by…
… fast game development & a relentless focus on the tools that turn games
into successes:
1 2 3
DISTRIBUTION DIVERSITY F2P BUSINESS
NETWORK OF GAMES MODEL
MARKETING DIVERSE PORTFOLIO SPEED UP GAME SUCCESS
HIGH PROFESSIONAL LEVEL (Core, Triple A and Casual Games) ROUSE CONSUMER NEEDS
(SEO, SEM, DRTV) DIVERSE PLATFORMS CREATE DEMAND
GROWING MEDIA PARTNERS (social, mobile, browser) HIGH CONVERSION
CUSTOMER LIFE CYCLE
EXTENDED MATURITY
EFFECTIVE STRATEGIES
PRODUCT LIFE CYCLE
Attractive content, successful monetization
& high-profile distribution network
15
16. Global network
800.000.000 monthly eyeballs
30.000 affiliate partners
1000 media partners
150 payment systems
30 languages
250.000
registrations / day
250 million registered users
16
17. TV can serve as a huge asset for Internet marketers
TV is one of the best tools for
• Driving traffic to websites
o Loyal group of TV viewers
o Huge customer base
o TV marketing
• Branding effect
for the product
Up to 40% of Bigpoint registrations
come in via the partner network
17
18. Extend IP: Online & Offline
Make it convenient for the customer
Make your product to a service
18
23. $8 BILLION IN REVENUES IN 2011
EXPECTED
GROWTH
TO REACH
$11.4 BILLION
BY 2014
23
24. Mobile Social Gaming Networks
Combine Social User Hooks
Social Network Mobile
Which of your friends Mobile Social What are the user
play? Gaming ratings?
Network
24
25. Industry Moves
Traditional companies are actively realigning their
strategies for digital and mobile opportunities
25
26. Hybrid Models Evolve
• About Game
• Videos
• Screenshots
• Account Registration
• Set within EVE Online
universe
• Virtual good purchases
• Fan-made iOS apps
26
27. Call of Duty Elite – the social network for shooters
1.5 million paid subscribers; more than seven million total
• Lifetime statistics & profile
• Social-networking options
• Mobile app
• Facebook integration
• HD video sharing
• Player perks and advantages
27
29. Free-To-Play will become the norm
European microtransactions and virtual goods market to triple by 2014
US virtual goods market to hit $2.9 billion in 2012
Source: Marketwire, TechCrunch 29
30. The Industry Embraces F2P
DC UNIVERSE ONLINE
• Subscription based -> F2P in January 2011
• Since going F2P: gained 1 million new players in just ONE WEEK, a 1000% playerbase
growth
LORD OF THE RINGS ONLINE
• F2P since Sept. 2010 / Before F2P: 210k subscriptions
• Since going F2P: revenues tripled
AGE OF CONAN
• Originally, subscription based / Since Jun. 2011 F2P version ( limited access)
• Gained 300k new players in one month after F2P Switch
“server activity quadrupled” and game revenues “more than double”
30
31. Viral is a Myth – you must earn your players
• Build a FOUNDATION
staff, capital, and a diversified
portfolio
• Performance based MARKETING
to ensure roi
• Build a DISTRIBUTION network
• Integrate global PAYMENT
solutions
• Keeping up with
new TECHNOLOGIES
(Unity, Flash 3d, html5, etc.)
31
33. Contact us
Bigpoint GmbH Bigpoint Inc. Bigpoint Distribuição de
Entretenimento Online Ltda.
Philip Reisberger
Chief Revenue Officer 500 Howard Street Av. Brig. Faria Lima
Suite 300 3729 cj. 528
Drehbahn 47-48 San Francisco, CA 94105 04538-905 São Paulo
20354 Hamburg Brazil
Germany
Tel +49 40.88 14 13- 0 Bigpoint GmbH Bigpoint International Services
Fax +49 40.88 14 13- 11 Limited
Alexanderstraße 5 1 Villa Zimmermann
info@bigpoint.net 10178 Berlin Ta’Xbiex Terrace
www.bigpoint.net Germany XBX 1035 Ta’Xbiex
Malta
Find us on
33
Notas del editor
You can see the massive growth of Facebook from 2007-2011http://news.cnet.com/8301-1023_3-57360925-93/internet-now-active-with-2.1-billion-users/
It appears that this list is not strictly based on number of users. According to Facebook: "This list was compiled by looking at the top games on Facebook with more than 100,000 monthly active users and giving priority to those games with the highest user satisfaction scores. The result is a list of the games that received the most user recommendations in 2011."Nearly half (40%) of the top 10 games on the Facebook platform are by ZyngaFacebook-Zynga relationship: 800+ million active users,50% of FB users play games Over 25% of FB users play Zynga gamesZynga Earned $1.14 billion in revenues – 93% of business tied to FB Accounted for 12% of all FB’s revenues Unveiled Zynga Direct – “Project Z”
Facebook is creating a dedicated gaming team in Europe, matching the one it has in the US, to work more closely with social games developers across Europe.The move is the result of the recent success for several European social games companies on FacebookOur position:“At Bigpoint, we welcome the news that Facebook are creating a dedicated gaming team in Europe. We’ve always maintained that Europe is one of the most exciting areas of development for the gaming industry at the moment, and this move by Facebook further confirms this opinion. It’s great to see that as well as companies like us expanding into the US, US companies see Europe as a must-be-in market. In particular, European companies have pioneered the high-growth area of casual and mobile gaming, with huge take-up by consumers worldwide. For example, our casual gaming title Farmerama has over 37 million registered users.Facebook’s entry into Europe can only be viewed positively for the European games industry. However, we would counsel the industry to not become blinkered by this move by Facebook, and decide that Facebook is the only platform to develop for. Although Facebook is a fantastic platform, at Bigpoint we believe that it should only be considered as one route to market. As Facebook themselves say, as a gaming platform they are only getting started, and so we would advise all European games developers to investigate multiple routes and platforms to give their game the best chance of success.”
The networks have a very different user baseGoogle has a more techy/geeky than audience FB users, platform is more technological than social
Heiko thoughts: Google+ is NOT a direct competitor to Facebook, but still a very interesting channel for growthG+ is an opportunity to approach differently – and approach users from a different angle. The potential is there.Google more suited for more different types of games/core games and offers their great services in addition to games
PLEASE NOTE: This is a rough estimation of Bigpoint figures from a Raptr report on Zynga. We tracked the data internally among our active community
EA has taken “The Sims” franchise which started as a PC title and into traditional consoles -> now there is a mobile game and Facebook game, and continues to expand
Kabam is exploring new publishing opportunities on Kongregate, Google+, Pokki on the Windows PC, and its Kabam.com web site.The goal for the user experience is to allow players on various networks and devices to play together connect all its games in a synchronous environment.
(Other forms of successful distribution as exemplified by other developers)
Mobile Social Networks are emerging in Asian and North American markets: combine the most prominent social features like:Invites, friend lists, social rankings, messaging, gifting, etc.
We see the shift from traditional game companies adopting, but it’s not limited to our industry – Hollywood, book publishing, music, etc.http://www.usatoday.com/life/books/news/2011-02-09-ebooks09_ST_N.htmYou may not know her name, but Amanda Hocking and others like her are riding the comet of digital publishing.Fed up with attempts to find a traditional publisher for her young-adult paranormal novels, Hocking self-published began selling her novels on online bookstores like Amazon and Barnesandnoble.com.By May she was selling hundreds; by June, thousands. She sold 164,000 books in 2010. Most were low-priced (99 cents to $2.99) digital downloads.More astounding: In January 2011she sold more than 450,000 copies of her nine titles. More than 99% were e-books.Hocking credits her success to aggressive self-promotion on her blog, Facebook andTwitter, word of mouth and writing in a popular genre — her books star trolls, vampires and zombies.And she's making money."To me, that was a price point that made sense for what I would be willing to spend on an e-book," says Hocking, who sets her own prices. "I use iTunes a lot, and it's 99 cents and $1.29 a song."For every $2.99 book she sells, she keeps 70%, with the rest going to the online bookseller. For every 99-cent book she sells, she keeps 30%A recent survey shows 20 million people read e-books last year, and more self-published authors are taking advantage of the trend.Netflix Makes Deal With The Weinstein Company To Stream Movies Before They Go To Pay TVhttp://www.cinemablend.com/new/Netflix-Makes-Deal-With-Weinstein-Company-Stream-Movies-They-Go-Pay-TV-29565.htmlThe Weinstein Company has completed a deal with Netflix that will give the online streaming network first dibs on all of the studio's upcoming releases. The contract is described as a multiyear deal, but it doesn't say just how long it will last. One of the elements that makes this such a notable story is that one of the films included in the deal is Michel Hazanavicius's The Artist, which is currently considered this year's frontrunner in multiple Academy Award categories, including Best Picture and Best Director. This news couldn't have come at a better time for the company. Next week the internet service will be losing a large chunk of their content as their three-year deal with Starz Entertainment is set to expire.
New Hybrid modelsWorld of Tanks (Wargaming.net) – launched a mobile app to help players stay connected to the RTS on-the-go. You can see player stats, global rankings, personal stats, etc. the instant ability to compare records and results with the enemy!Dust 514 (CPP Games) – creating a hybrid for players of EVE ONLINE to connect in the Playstation Network – exploring different types of business models
Even one of the most successful console games and developer – Activision/Call of Duty – understands the significance of the social layer..They’ve created their own network where players can interact with these social features
Analysis data on newest studies and forecast to virtual goods markethttp://www.marketwire.com/press-release/study-gamescom-european-market-for-virtual-goods-in-games-is-growing-rapidly-1552148.htm
We see more and more traditional retail publishers adopting the F2P model.. And more being added to the list by the month and year..DC Universe OnlineSubscription based -> F2P in January 2011Since going F2P: gained 1 million new players in just ONE WEEK, a 1000% playerbase growthLORD OF THE RINGS ONLINEF2P since Sept. 2010 / Before F2P: 210k subscriptionsSince going F2P: revenues tripledAGE OF CONANOriginally, subscription based / Since Jun. 2011 F2P version ( limited access)Gained 300k new players after in one month F2P Switch, “server activity quadrupled” and game revenues “more than double”
Thinking that you just put a game on Facebook and it will spread and be played by millions of players and emerge into a big hit is naive. You have to buy advertising from Facebook, put in a lot of money to increase awareness. Outside of Facebook it is the process of pre-launch product marketing, PR, and CRM, SoMe, and media partners as well as performance marketing that increase awareness and push / attract new users into the game.Game content =King