1. Shifting Gears: The Growing Importance of Mid Core Gamers.

2. Kabam | Who am I Keith Kawahata Vice President, Kabam Studios
Revenue Group, Kabam Studios
RPG Genre, NA Studio
>5 years F2P operations and development experience

3. Kabam | What we do Top 10 mobile gaming company by revenue
16 languages and played in 150+ countries
#1 grossing iOS application in 2012
#1 top grossing iOS game in over 50 countries
2 games in the iOS Top 10 monthly grossing

4. Kabam | Who we are $180M+ gross revenues in 2012 70% Y/Y growth
$50M cash in bank
Profitable and on track to grow revenues by more than 65% this year to $300M
Seven titles that gross more than $1 million per month

5. (Luxembourg, Berlin, London)
Kabam | Where we are
Vancouver, BC
San Francisco, CA
Headquarters
Austin, TX
Europe
(Luxembourg, Berlin, London)
Asia
(Beijing, Seoul)
700 employees globally

6. Follow-up Andrew Sheppard Casual Connect Hamburg
Available on Youtube & CasualConnect.org

7. Market Update

8. Market Update | Worldwide
$77B in 2017
Tablet = fastest growing market
Smartphone = biggest opportunity
Asia > U.S. > Europe
ROW = fastest growth
Total Market
Digital gaming market growing at 11% CAGR to $77B in 2017
Tablet growth at 43% represents the fastest growing market in the category
Smartphone represent the biggest opportunity in overall dollars growing at 16% CAGR
Territories
Asia is the biggest market for digital, followed by U.S. and Europe
Rest of world has the fastest growth rate at 20%
*Source: IDG May 2013

9. Market Update | Misc Social networks = Connected consoles =
Social Network market overall is declining with Facebook declining at 6%
Connected Consoles (
Virtual goods represents the largest opportunity on connected console services
U.S. and Europe make up the largest share of console services
Majority of revenue is attributed to packaged goods virtual goods revenue but will evolve to more of a free-to-play model over time
*Source: IDG May 2013

10. Market Update | Key Takeaways
Mobile <> Tablet <> Social <> Connected Console
Smartphone and tablet opportunity is MASSIVE
Asia <> Europe <> US <> ROW
Global execution opportunity is MASSIVE
Know your platforms
Opportunities are different
Biz model opportunities are converging on F2P
$77B is a massive opportunity
Know your geographies
Significant differences within regions as well

11. Who is your audience and what does he do?

12. Audience | Population Sizes By Gamer Type*
Core:
FPS/RPG/Fighting/MMORPG/MOBA
Midcore:
Action-adv/Puzzle RPG/BCG/ CCG/ Sports/Racing/Empire/ Tower Defense/ Movie-based/ World-building
Casual:
Puzzle/Hidden Obj/Word/IQ/Board/ Casino/Farm/City/Restaurant/ Business Mgmt/ Platform/Pet/Educational/Party/ Music/Arcade/Fashion/ Drawing/Fishing
Core: Plays 1+
Midcore: Plays 1+ AND is not Core
Casual: Plays 1+ AND is not Midcore or Core
Worldwide: Core = Midcore both > casual
EU and US ~50% casual vs Asia 22%
*-ages 18 to 65; among mobile gamers only

13. Audience | Demographics and Engagement
What age difference?
Battle of the sexes
Engagement
Midcore FTW
more time
Less time
Midcore Segment
Demographics
Age differences are minimal across geos and gamer segments
Sex differs across geos and gamer segments
Ex: significant difference between core and casual in US and between core in US and Asia
Engagement
Smartphone/tablet midcore has the largest increase and least decrease compared to other segments
Smartphone/tablet above all other platforms

14. Audience | Monetization
Conversion Rates
Audience | Monetization
Conversion Rate
Know your regions
ARPU
Opportunity for core business models and systems in midcore and casual games
ARPU
Conversion Rate: Midcore shows the highest regional variability
CORE: 61% of ARPU driven by IAP
<30% of ARPU driven by IAP for midcore and casual
Opportunity

15. Bringing it all together

16. Opportunities Summary
Opportunities are MASSIVE
Mobile/tablet platform FTW
Asia is required for global maxima
Midcore is the hottest target segment with growing engagement, spend and audiance.
Arbitrage will shrink as budgets, build times and team capabilities increase relative to the market opportunity

17. How do you target mid core?
Know your demographics
>40% female across all geos
Know your attiudinal drivers
>30% of mid core gamers play because of friends both RL and virtual
Know your awareness drivers
<10% of mid core gamers find games from mobile/social ads
Quality matters
>40% of mid core gamers find games from personal recommendations (ie word of mouth)

18. Q&A?