Social Gaming:Evolution of Technology and

Monetization Platforms

Peter RelanFounder and Chairman, YouWeb

December 8, 2009

US/English Speaking Social Gaming Business Model - Evolution from Asian Gaming Market

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ASIAN F2P MODEL SNS F2P MODEL WEB and iPhone F2P MODEL

ASIAN F2P MODEL

T E M L E N T

YouWebSocial Gaming Companies Incubated

#2 Social Game Developer on Facebook75M MAU’s

#1 Social Game Network on iPhone500 Live Titles, 5M Users

Social Gaming in the US – Tremendous Scale and Potential

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U . S . v i r t u a l g o o d s s p e n d i n g t o r i s e f r o m ~ $ 6 0 0 m m i n 2 0 0 9 t o

~ $ 2 . 5 b n i n 2 0 1 3 ( P i p e r J a f f r a y )

U . S . s o c i a l g a m i n g m a r k e t t o g r o w f r o m ~ $ 7 0 0 m m ( p r e s e n t a n n u a l

r u n - r a t e ) t o ~ $ 2 . 2 b n i n 2 0 1 2 ( T h i n k E q u i t y )

U . S . v i r t u a l g o o d s s p e n d i n g t o e x c e e d $ 1 b n i n 2 0 0 9 a n d $ 1 . 6 b n i n

2 0 1 0 ( I n s i d e V i r t u a l G o o d s )

U n i t e d S t a t e s : M a s s i v e M a r k e t P o t e n t i a l

A g g r e g a t e U . S .I n s t a l l e d B a s e : 1 1 2 m m

U . S . A u d i e n c e : ~ 6 0 m m ( ~ 1 1 5 m m D A U s )

A g g r e g a t e M o n t h l yU n i q u e s : 4 6 m m

U . S . A u d i e n c e : ~ 1 0 0 m m ( ~ 2 5 0 m m D A U s )

Evolution of Facebook Platformand Crowdstar

T r u t h B o x s o l d t oR o c k Y o u

S u r e n M a r k o s i a n ' sQ u i z z e s d e b u t s o nF a c e b o o k

S u r e n M a r k o s i a n ' sK i s s M e a n d T r u t h B o xa c h i e v e # 1 o n B e b o

W o r l d W a r I I r e l e a s e d o nF a c e b o o k ( m o n e t i z a t i o nm o d e l i n t r o d u c e d )

H e i s t r e l e a s e do n F a c e b o o k

K n o w I t A l l d e b u t s o nF a c e b o o k ( g r o w t hm o d e l i n t r o d u c e d )

C r o w d S t a rl a u n c h e d

Q 4 ’ 0 7 Q 1 ’ 0 8 Q 2 ’ 0 8 Q 3 ’ 0 8 Q 4 ’ 0 8 Q 1 ’ 0 9 Q 2 ’ 0 9

Q u i z z e s l a u n c h e so n M y S p a c e a n dr e a c h e s # 1

J e f f r e y T s e n gj o i n s C r o w d S t a r

S a v e t h e R e e f r e l e a s e d o nF a c e b o o k ( f i r s t V G - b a s e de x p e r i m e n t a l f l a s h g a m e )

Mary Meeker, Morgan Stanley

OpenFeint: Fb App Platform + XBLA

• Social Networking Services

• Leaderboards - Global with your rank, and friends views

• Achievements -

Compare progress with friends

• Social Challenges • Multi-Player

Evolution of the iPhone SDKand OpenFeint

• Q1 2008– iPhone SDK starts to look real by Q2

• Q2 2008– iPhone SDK V1.0 available to some developers– Aurora Feint game commissioned

• July 11, 2008– App Store opens; Aurora Feint: The Beginning launches

• Q4 2008– iPhone SDK 2.X: No social features– Aurora Feint: The Arena launches with Leaderboards, Muti-

Player, Achievements, Profiles, Newsfeeds, Chat… Social features soon become as popular as the game

2009• Q1 2009

– OpenFeint conceived: FB App Platform + XBOX live game services– March: OpenFeint announced: 100 developers sign up on first day

• Q2 2009– Apple announces Push Notifications and in App Purchases in SDK 3.0:

First features that create opportunity for F2P Social Gaming – OpenFeint announces support for Push Notifications

• Q3 2009– OpenFeint 2.X ships with numerous social features and “Social Discovery”

cross promotion system– 1M users crossed in OpenFeint, 100+ live titles

• Q4 2009– Apple announces free apps can have in-app purchase: enabling F2P model– OpenFeint: 500+ live titles, 5M users crossed, Multi-Player games enabled

CONVERGENCE

User wants to playANYWHERE, ANYTIME, ANY CHANNEL

IN THE SAME SOCIAL CONTEXT

ASIAN F2P MODEL SNS F2P MODEL WEB and iPhone F2P MODEL

ASIAN F2P MODEL

T E M L E N T

Sibblingz Social Gaming Framework

Demo

AvatarCustomizer

2.5DSpaces

RoomCustomizer

Store& Virtual Goods

Nurture Monetization

Server Farm

Comprehensive Set of Services For Creating a Social Game

Sibblingz Social Gaming Framework