1@markval @playfabnetwork

CROSS-CONTINENT PERSPECTIVE ON THE TRULY GLOBAL MARKET

Mark Val

2@markval @playfabnetwork

Mark ValGM Europe, PlayFab

18 years of online experience

3@markval @playfabnetwork

WHATHAPPENED GLOBALLY

GLOBALPERSPECTIVE

STRATEGY

4@markval @playfabnetwork

5@markval @playfabnetwork

2009 2016

1425% increase in 7 years

YoY 26%+

61% made with Unity

+-450 6866

6@markval @playfabnetwork

375.7%

2,1M

400K

GLOBAL

25% are games

2,94M

GLOBAL

7@markval @playfabnetwork

10,279 titles+- 350 per month

0.06% F2P

+-30% of TOP 100 are F2P

0

500

1000

1500

2000

2500

3000

3500

All 2005 All 2006 All 2007 All 2008 All 2009 All 2010 All 2011 All 2012 All 2013 All 2014 All 2015 All 2016

8@markval @playfabnetwork

PS4

848 titles

4% F2P

Xbox One

498 titles

2% F2P

+ 100 OLD TITLES…

9@markval @playfabnetwork

10@markval @playfabnetwork

19M

498

36M

848

34,5M

9,053

4,7B

11@markval @playfabnetwork

12@markval @playfabnetwork

GAMES WIN IT ALL

13@markval @playfabnetwork

Everyone is going

Free to Play Free to Start

14@markval @playfabnetwork

15@markval @playfabnetwork

0

10000000

20000000

30000000

40000000

50000000

60000000

1 7

13

19

25

31

37

43

49

55

61

67

73

79

85

91

97

10

3

10

9

11

5

12

1

12

7

13

3

13

9

14

5

15

1

15

7

16

3

16

9

17

5

18

1

18

7

19

3

19

9

52% $$$ TOP15

TOP 10

LAST

6 MONTHS

80%

16@markval @playfabnetwork

TOP 10

LAST

6 MONTHS

80%

17@markval @playfabnetwork

18@markval @playfabnetwork

Wow effect is gone

19@markval @playfabnetwork

EVERYONE CAN BUILD

A QUALITY GAME?

20@markval @playfabnetwork

BUILD

55%

GAMES AS A BUSINESS

ONLY BUYS IN NATIVE

LANGUAGE

85%

CREATE

EXPERIENCE

SHAREECONOMY

ACCOUNTS

CONTENT MANAGEMENT

SERVER LOGIC

MULTIPLAYER

21@markval @playfabnetwork

BUILD

ANALYTIC

MARKETING

LIVE DEVELOPMENT

DEV OPSBIZ DEV

CUSTOMER SUPPORT

COMMUNITY

MANAGEMENT

LIVE OPERATIONS

22@markval @playfabnetwork

BUILD

AUDIENCE

MONETIZATION

THEME

MECHANICS

GAME DESIGN

23@markval @playfabnetwork

BUILD

DIFFERENT PERSONA = DIFFERENT MECHANICS & ITEMS

EXPLORER

SOCIALIZER

ACHIEVERKILLER

• 7 SINS

• DISCOVER NEW

CONTENT IN

PROGRESSION

TIERS

• +20% in revenue

24@markval @playfabnetwork

BUILD

KILLER / EXPERIENTIALISTAction, vertigo, tool-use, vehicle

use, horror, gambling, speedruns,

exploits,

Wants to be the most powerfull

ACHIEVER / GAMISTCompetition, collections,

manufacturing, high scores,

levels, clear all objectives,

Showoff to guild

EXPLORER / SIMULATIONISTPuzzles, creative building, world-lore,

systems analysis, theorizing, surprise,

Talk about findings that are hard to

complete

SOCIALIZER / IDEALISTChatting, roleplaying, storytelling,

cooperation, decorating, pets,

social events

Unique chat features and stays

with “friends”

PROGRESS + POWER FASTER RETENTION

25@markval @playfabnetwork

BUILD

DESIRE FOR HARM

DESIRE FOR THINGS

DESIRE FOR PLEASURE

DESIRE FOR MORE

DESIRE FOR ATTENTION

DESIRE FOR REST

DESIRE FOR OTHER PEOPLE THINGS

26@markval @playfabnetwork

BUILD

DIFFERENT PERSONA = DIFFERENT MECHANICS & ITEMS

traditionalist adventurer

27@markval @playfabnetwork

BUILD

USERS BONDS WITH

ITEMS & MECHANICS

MAKE A GOOD UX

HAPPY ACTIONS

ONLY

SAME PRICE FOR ALL

META GAMES

PROGRESSION

SYSTEM

REWARD GAMEPLAY

MAKE ENERGY A

RESSOURCE

TIME = MONEY

28@markval @playfabnetwork

02. PRICING 01. ITEMS PROGRESSIONIN TIERS

BUILD

03. GAMEPLAY FRICTION

SHORT AND PREDICTABLE

AVERAGE SESSION TIME

IS 252 SEC ON MOBILE

29@markval @playfabnetwork

WHATHAPPENED GLOBALLY

GLOBALPERSPECTIVE

30@markval @playfabnetwork

31@markval @playfabnetwork

32@markval @playfabnetwork

33@markval @playfabnetwork

BIWEEKLY TIME IN HOURS IN GAMES WITH VR SUPPORT

04/15 04/16

TODAY 09/16 270 VR GAMES

34@markval @playfabnetwork

35@markval @playfabnetwork

THE MOBILE INDUSTRY IS MATURING

… evolving ...

36@markval @playfabnetwork

37@markval @playfabnetwork

38@markval @playfabnetwork

WHERE TO GROW?AND HOW?

39@markval @playfabnetwork

COMPOUND ANNUAL GROWTH RATE

40@markval @playfabnetwork

#250 USD$ 1,8k

#1 USD$ 110k

#250 USD$ 57k

#1 USD$ 7,2M

41@markval @playfabnetwork

330+

60% 3RD PARTY

22% SMARTPHONE VENDORS

18% OPERATING VENDORS

= BANNED IN CHINA

42@markval @playfabnetwork

ASIA ISNT MOBILE 1ST, ITS POST MOBILE

43@markval @playfabnetwork

Africa is coming!

44@markval @playfabnetwork

45@markval @playfabnetwork

WHATHAPPENED GLOBALLY

GLOBALPERSPECTIVE

STRATEGY

46@markval @playfabnetwork

02. TWO

CPI AND CPA

LOL!!!

04. FOUR

GET FEATURED

OR BACKOFF

01. ONE

PLAN LAUNCH

BEFORE GAME

IS FINISHED.

03. THREE

BUILD A CROSS

PROMO

NETWORK

LAUNCH ON MOBILE

47@markval @playfabnetwork

LAUNCH

40 DAYS PRIORGeographic Launch version Submission

Date

14 DAYS PRIORLaunch Candidate

Submission Date

Geographic Launch

version Approved

28 DAYS PRIOR

Give Giveaways

LAUNCH DATE

(ASO) SEARCHMAN.COM REVIEWFORDEV.CO

M

AUSTRALIA + 1 EUROPEAN

BASIC PLANNING

48@markval @playfabnetwork

GAME AS A SPECTATOR

GAME AS A CREATOR

GAME AS A SHARER

Twitch, YouTube, Vine

+ 75% on launch

LAUNCH

49@markval @playfabnetwork

LAUNCH

50@markval @playfabnetwork

COMMUNITY MANAGEMENT & SUPPORT

Increase Loyalty and got direct impact on revenue: +20%

Communication is key

LAUNCH

51@markval @playfabnetwork

LAUNCH

LOCALIZED AND

TRANSACTIONAL

ANALYTIC & SEGMENTS

SOFT LAUNCH /

GLOBAL EVENTS

CONTENT MANAGEMENT

CUSTOMER

SERVICES

> 10 HRS

60%

3 – 10 HRS

55%

< 3 HRS

36%

HOURS PER WEEK

2.8% SPENDERS

AIM 5%+

LIVE GAME OPERATIONS

52@markval @playfabnetwork

REVENUE PER MONTH = % CONVERSION X ARPPU X ACTIVE USERS

LTV > CPI

# invites * conversion

K-factor = i * c

ARPDAU or Retention

LTV = (A(month) – COST) * R(month)

GROW

53@markval @playfabnetwork

GROW

RUN SALES ON CURRENCIES, NOT ITEMS. PUT A

COUNTDOWN.

ENGAGEMENT AND CONVERSION

1, 7, 28 DAYS – 50% LEFT AT EACH STEPS

REWARD ON VIDEO ADS IS FINE

54@markval @playfabnetwork

60% OF REVENUE COMES FROM MULTIPLAYER GAMES

ALL SUCCESSFUL GAMES DOES LIVE GAME OPERATIONS

Deep linking

World coverage

Cross platform

85%

55@markval @playfabnetwork

THERE IS A LOTS OF SPACE FOR INNOVATION

REMEMBER!

56@markval @playfabnetwork

LUCK COMES TO THE WELL PREPARED!LIVE OPERATIONS IS KEY!

REMEMBER!

57@markval @playfabnetwork

IDENTIFY PERSONA

DESIGN WITH MONETIZATION

GAMEPLAY FRICTION

PREDICTABLE

TEST YOUR 3 KPI

FAIL FAST

58@markval @playfabnetwork

QUESTIONS ?PLEASE DON’T HESITATE.