Mobile Games?

2010

2009

2008

2006

2005

2004

2007

2014

2012

2011

The History -- Mobile Games10 Years

2004•Jamdat files IPO

2005 ** avg price $2.99 -$9.99•Jamdat acquired by EA

2006 2007 ** iPhone launches, avg price drops to $.99

•GLU Mobile files IPO

2009

2011

2008

2010• Ngmoco acquired by DeNA

• Hands on Mobile closes

2014

• King files IPO March 2014

2012** Avg price FREE

$2.4B sales / $681M profits

$46.2M sales / $12.4M losses

$28M sales / $3M profits

July 2014 – Alibaba invests $120M in Kabam, giving Kabam a valuation of $1B

March 2014 – Rovio cancels planned IPO

Jan 2014 – Kabam announces $360M in sales for 2013

$46.2M sales / $12.4M losses

2014 – COA $2.73, ARPU $ 1.96

Drowning in Apps

Freemium Dominates

Mobile Cost Per Install

Houston we have a problem . . .

Top Grossing Games by Platform 8/14/2014

iOS Top GrossingGoogle Play Top Grossing

AppAnnie

King Digital Entertainment and Supercell Dominate Mobile

• King Digital: – Tent pole property: “Candy Crush Saga”, Candy

Crush accounts for 78 % of King's sales & 86% of mobile bookings.

– IPO March 2014– Revenue $2.42B, Net Income $681M

• Supercell:• Tent pole property: “Clash of Clans”• Estimated 2013 sales of $800M

The King Secret Sauce

• Discovery solved . . . huge investments in analytics and marketing drive purchase behavior.

• Cost of acquisition . . . driven down through cross selling portfolio across 100+ titles.

Key Take Aways• OPPORTUNITIES & CHALLENGES: As King, Supercell, and

Kabam clearly demonstrate, there is tremendous opportunity for those who solve the challenges of Discovery, the Business Model & the Cost of Acquisition.

• PRODUCTION: In the Production Process, focus on the end state, and build an achievable, realizable plan to achieve that end state, taking into consideration the impact of both external and internal development on your time lines.

• REVIEW SUCCESSES AND FAILURES: Beware of the “Survival Bias”, look not just at those who have succeeded, but those who have failed and understand why.

• CONTENT IS STILL KING: Focus on high quality content that fills a niche currently not being served.

Links• King F-1 http://

www.sec.gov/Archives/edgar/data/1580732/000119312514056089/d564433df1.htm

• JAMDAT S-1 http://www.nasdaq.com/markets/ipos/filing.ashx?filingid=2998464

• GLU S-1 http://www.nasdaq.com/markets/ipos/filing.ashx?filingid=4784230

• AppAnnie https://www.appannie.com/intelligence/• Kardashian Ranking http://

www.distimo.com/iq/app/apple-app-store/glu-games-inc/kim-kardashian-hollywood

• Developer Economics: http://www.developereconomics.com/reports/q1-2014/

Mobile Games!