Casual Connect Europe Feb 2012

© 2012 appside, all rights reserved DISTRIBUTION The Digital Household Playing-field CONTENT OS HARDWARE 2

© 2012 appside, all rights reserved Revolution by Evolution…

© 2012 appside, all rights reserved Microsoft Kinect set a Guinness record The Fastest Selling CE device !

© 2012 appside, all rights reserved The Home Entertainment Opportunity Gesture-controlled Ux and apps, are going to be a major differentiating factor, in the evolution of the digital household entertainment market Home Entertainment Gesture Control Home Entertainment Gesture Control Today

© 2012 appside, all rights reserved Gesture-Control is going Mass Market Xbox, Windows 8 Apple TV -> gesture-controlled Gesture-control in 1 st gen. ultrabooks Gesture-controlled SmartTV launch in H2 6 Gesture-controlled SmartTV launch in Nov 2011 End-users trial Xtion launch in Feb 2012 Next Gen STBs SmartTVs All in One Low Cost Sensors

© 2012 appside, all rights reserved Market Opportunity  From $144B on "digital living room" devices in 2010 to $226B by 2015 (BCG)  155M SmartTVs in 2015 (NPD)  From 27%->54% of shipments  300M motion- controlled gaming devices in 2015 (IDC)  Kinect success and installed base – 18M – is only the beginning  2012 will be the roll-out year of the additional players 7

© 2012 appside, all rights reserved appside at a glance  World’s 1 st marketplace for gesture-controlled entertainment  An OpenNI founding member and outlet for the OpenNI developer community  Private-label service for CE hardware manufacturers and service providers; Pre-installed, on-device appstore  Ecosystem-in-a-box: Ux, game and app catalog, developer community, store management, appstore business platform etc. the gesture-controlled entertainment marketplace-of-choice 8

© 2012 appside, all rights reserved Gesture-control/Recognition Technology Providers Partner with Us Core Tech Providers

© 2012 appside, all rights reserved Publishers and developers partner with us Developers

© 2012 appside, all rights reserved Porting casual games to gesture-control 11 “Initially, we were unsure how well Luxor would port to the gesture- controlled world. When we first saw it, we were surprised how well the gesture controls work; Luxor with gesture-control on SmartTV introduces an innovative user-experience that is better than traditional motion-controlled gaming consoles”. Ron Diamant, Chairman of MumboJumbo Games

© 2012 appside, all rights reserved Our First Distribution Partner -- 12

© 2012 appside, all rights reserved 13

© 2012 appside, all rights reserved

15

© 2012 appside, all rights reserved Our Feb Launch  Asus Xtion world-wide roll-out  China, US, EU and Asia  Pre-installed, appside powered marketplace  games, apps; sports, action, casual, music, art  Jointly building the developer eco-system  Via a dev. community (MSA - Motion Sensing Alliance), Regional Developer Day etc. 16

© 2012 appside, all rights reserved Our Business Model  Direct-to-consumer sales  Per-download, per-play, session, packages, subscriptions, micro- transactions  Revenue share with developers and distribution partners  Users expected to spend an average of ~$30 year on games and apps 17

© 2012 appside, all rights reserved Beyond the Ux -- Gesture-control Potential – Examples  Understanding the player in a totally different level His whereabouts, his tone, his face, his dressing, his behavior etc.  Providing the machine “senses” and enabling a new kind of machine learning capabilities  More use of the actual playing environment  Living room, furniture, real objects in our world 18

© 2012 appside, all rights reserved Gesture-control Game Design – Lesson Learnt, Basic Guidelines Gesture is a new language  No control standards have emerged yet  Humanize, simplify, predict player behavior Plan ahead  What’s fun while playing with a joystick isn’t always fun with your body!  Focus on the fun gesture enables: empower the player -- faster, stronger Use real life gestures  Every movement that does not directly mimic a real life one, means teaching the player a new set of skills… Compensate for no physical feedback  Visual and sound feedback need to be clear and “exaggerated” Be aware of Gesture Limitations  “Multitasking” is very hard (e.g., walking, looking around and shooting in parallel)  Actions need to be automated Experiment  Your assumptions of what will work when designing controls and levels for gesture, will sometimes be wrong…   What you think should be easy/fun, turns out to be hard for players

© 2012 appside, all rights reserved Summary  SmartTVs are going mass market. So is the gesture-controlled living room  a reality already in 2012  Market potential is significant  A unique opportunity to become an early leader in an untapped market  Port/adapt your games to gesture-control  Developing/porting to gesture-control is easy but requires planning ahead, using lessons learnt and basic guidelines  To ensure a successful game which is both compelling and fun, we offer  Toolbox - Use cases, Success stories, technical/UI/Ux guidelines, best practices etc.  Porting partners - experienced studios who can port your games and you can leverage their own experience, knowledge etc. Partner with us !

Thank You ! Jonathan Yaari, founder and CEO