marketing computer games that run over the internet jon monsarrat
TRANSCRIPT
Marketing
Computer Games
that run over the Internet
Jon Monsarrat
Company Background
• High-Tech Internet Company• Founded in 1994• Entertainment Software• Specialty: Communities of
100,000+• 55 Employees in the Boston Area• First Product: A Hit Game• Springboarding to New Markets
The Broad Market• Content• Graphics Tech• Hit-Based
Electronic Entertainment
A More Focused Market• Content• Graphics Tech• Hit-Based
Electronic Entertainment
Internet Games
• Interactivity• Network Tech• First-mover
Our Market: MMP Games• Content• Graphics Tech• Hit-Based
Electronic Entertainment
Internet Games
• Interactivity• Network Tech• First-mover
Massively Multiplayer
• Community• Ongoing Revenue• Content Tools
Online Game Growth
The total online gaming market is expected to reach $4.9b by 2004
0
1
2
3
4
5
6
1999 2000 2001 2002 2003 2004
Ma
rke
t re
ve
nu
es
in
$ b
illi
on
WesternEurope
U.S.
Source: Datamonitor
CAGR: 127%
$82M$250M
$880M
$1.8B
$3.4B
$4.9B
MMP: An Online Country Club
• Community• Individuality & Status• Something to Do
• Limited Interactivity• Faceless Opponents• Something to Do
Other Internet Games MMP Entertainment
Vertical ChainRetail Sale
$$$
Web Ads$$$
Monthly Fee to Play
$$$
Turbine
GameTech
Internet
Tech
Community
Tech
Content
Content
Tools
Game Developer
Up-front Cash
RetailDistributio
n
Manufacturing
Distribution
Promotion
MicrosoftWeb Site
DevelopmentWeb
Marketing
Portal
Customer Mgmt Ongoin
gContent
ServerMgmt
Ongoing Support
Community
Mgmt
Ongoing RevenueRetail Sales
Sources: PC Data, ZDNN
$30 Once
UltimaOnline
225K
Diablo
1.2M
Command& Conquer
730K
DeerHunter
945K
EverQuest
225K
1200
900
600
300
0
Sale
s
(th
ou
san
ds)
50
30
20
10
0
Reven
ue (
US
$m
)
Retail sales Online fees
$43.1M$29.1M $28.2M
$17.3M$17.8M
40Revenues $10
Monthly
First Product: Asheron’s Call
• retail release November 1999• #1 best-selling game of
November 1999 (Chips & Bits)
18 Awards for Asheron’s Call CNET’s
RPG Gameof the Year
Game of the Year
Outstanding TechnicalAchievement of the Year
What Makes a Hot Startup?
Product Issues• Market position• Expected growth • Minimize content risk• Recurring revenue• Revenue multiples• Scalable business model• Strong partners• Customer relationships• Broader technology base
Non-Product Issues• Media attention• Management team• Strong investors