Keys to the European Market Thomas BIDAUX CEO, ICO Partners

Introduction ● Speaker ● Europe

Quick market overview ● Disclaimer ● All numbers are estimates ● Estimates are from November 2011 (source ICO Partners)

Germany Population - 82M Home PC equipment 84% of the households Broadband Connections 65% of the households TitlePublisherEst MAU 1FarmeramaBigpoint1.2M 2Comunio 450k 3HabboSulake400k TitlePublisherEst MAU 1League of Legends Riot Games500k 2WoWBlizzard400k 3Runes of MagicFrogster130k Client Browser

France Population - 63M Home PC equipment 69% of the households Broadband connections 58% of the households TitlePublisherEst MAU 1HabboSulake900k 2EquideowOwlient/Ubisoft350k 3TravianTraviangames340k TitlePublisherEst MAU 1DofusAnkama1.8 M 2World of WarcraftBlizzard180k 3League of LegendsRiot Games160k Client Browser

United Kingdom Population - 62M Home PC equipment 81% of the households Broadband connections 70% of the households TitlePublisherEst MAU 1Moshi Monsters Mind Candy1.5 M 2Club PenguinDisney900k 3Bin Weevils 800k TitlePublisherEst MAU 1World of Warcraft Blizzard170k 2League of Legends Riot Games120k 3World of tanksWargaming90k Client Browser

Italy Population - 60M Home PC equipment 61% of the households Broadband connections 39% of the households TitlePublisherEst MAU 1TravianTraviangames250k 2FarmeramaBigpoint170k 3Hattrick 150k TitlePublisherEst MAU 1League of LegendsRiot Games40k 2World of WarcraftBlizzard30k 3Combat ArmsNexon20k Client Browser

Spain Population - 46M Home PC equipment 66% of the households Broadband connections 51% of the households TitlePublisherEst MAU 1Comunio 600k 2HabboSulake400k 3Club PenguinDisney300k TitlePublisherEst MAU 1DofusAnkama600k 2League of LegendsRiot Games150k 3World of WarcraftBlizzard70k Client Browser

Poland Population - 38M Home PC equipment 66% of the households Broadband connections 51% of the households TitlePublisherEst MAU 1FarmeramaBigpoint750k 2Stardoll 400k 3Moviestar Planet350k TitlePublisherEst MAU 1League of LegendsRiot Games270k 2Metin2Gameforge100k 3World of TanksWargaming70k Client Browser

Online game companies Europe revenues - million €

Market trends ● Free to Play ● New genres ● Social games beyond Facebook ● New growing markets

Market potential ● Actors concentrating ● Critical mass harder to achieve due to fragmentation ● Critical mass easier to maintain ● Average service quality

Market challenges ● Languages ● Marketing channels ● Monetisation ● Cultural differences ● Critical mass ● Competition

Ways to approach the market ● Self-publishing – global service ● Self-publishing – local service ● Channelling partner ● Third party publishing – licensing

Self-Publishing Public Relations Marketing Distribution Moderation Community QA Payment Solutions Localisation Back-end Account Management Customer Support Customer Ownership

Channelling partner - A Public Relations Marketing Distribution Moderation Community QA Payment Solutions Localisation Back-end Account Management Customer Support Customer Ownership

Channelling partner – B Public Relations Marketing Distribution Moderation Community QA Payment Solutions Localisation Back-end Account Management Customer Support Customer Ownership

Licensing partner Public Relations Marketing Distribution Moderation Community QA Payment Solutions Localisation Back-end Account Management Customer Support Customer Ownership

Define a strategy ● Why do you want to go there? ● Expansion ● Landgrab ● Revenues ● What are your means? ● Connections ● Existing user base ● Budget ● Resources

Define a strategy ● What are you weak points? ● Specific discipline ● Reach in the market ● Product profile  Drive different discussion

Choosing a partner ● Affinity ● Current port-folio ● Long term strategy ● Business terms  Align long term interest  You will need to care

Case studies ● Runewakers ● Taiwanese studio – couldn’t find publishers for their title ● Signed with Frogster and entered extensive collaboration for a successful release in Europe  Success with a local actor through close partnership

Case studies ● Riot Games ● Initially licensed to a local operator (GOA.com) ● Took back game and opened local office  Success through self-publishing and local operations

Case studies ● Perfect World ● First licensed to a newly established local publisher ● Created brand confusion ● Opened local office  Re-established brand after hurdles. Significantly more successful

Case studies ● SOE ● Mostly self-published from the US ● New port-folio wide agreement with ProSieben (very unpopular with the community)  Jury is still out. Seem to still struggle to find its path to entry to the market.

Conclusion ● Many opportunities ● Many ways to take advantage of them ● You always need to care!

Contacting the speaker icotom