2. There are only 3 business models in the world
Sell
Rent/Lease
Give Away

3. Casual Games Were Born in the Recession

4. December, 2001 Ad market collapsed Tech economy in recession
No funding
Try Before You Buy
Casual Game Industry Takes Off

5. Why recession + TBYB? Like Google AdWords: Risk-sharing
Portal
Customer
Strength: higher share
Weakness: less predictability, poor conversion (1%)

6. Then, the market improved
Advertising resurgence
Other models explored
Mostly to recoup 99% of TBYB “waste”

7. Korea/China: Freemium
Combine free & sell
Give away the basic app
Sell to engaged/power users
Sell customization
When you think about it: a lot like try before you buy…differently packaged

8. Expanded on by a lesson from core games
Sell the app and sell premiums

9. Feel inferior? Subscriptions = great recurring revenue Chugging along
Bad comparison:
Cost of acquisition = high
Critical mass required

10. THEN
CAME
STEVE

11. Rules Changing Again: Microsales are real
iPhone and other mobile platforms mean microtx are upon us
Great opportunity for game devs
Shape the dialogue – get involved
Mobile phones may be payment mechanism, platform or both

12. However: no ad oppty

13. Unless you’re top ten

14. What hasn’t worked (for revenue)?
Charge by minute
Casual game rentals (true sense)
Facebook/Soc Net games for most developers
Non-smartphone mobile for indie developers
Fully ad-supported large-scale casual

15. The magic numbers
60/40 (70/30)