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Published byAaliyah Thorpe Modified over 11 years ago
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Future of Video Games September 2008 Shana Fisher sf@iac.com Senior Vice President, Mergers & Acquisitions, Strategy IAC/InterActiveCorp
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Confidential – For Discussion Purposes Only The Online Video Gaming Market 3 InstantAction is defining the $2B online core games market –InstantAction is completely focused on moving video games to the Web –Online core games is a sub-segment of the $34B video game market Global Online Core Games Revenues Source: Online Game Market, DFC June 2007 Note: Projection adjusted for IAC estimate of MMOG and casual revenue Global Video Games Revenues Source: Video Game Advertising, eMarketer April 2007
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Confidential – For Discussion Purposes Only Market Size $4B Competitors Distribution Online $150 / year Software $60 / game Competitors Market Size Distribution $7B Customer Cost of Ownership Hardware $400 Software $60 / game Online $50 / year ConsolePC Market Size $11B Distribution Competitors Market Size $3B Competitors Distribution Competitors Market Size $200M Distribution
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Confidential – For Discussion Purposes Only Traditional Games are Costly and Slow to Develop 5 Retail: $17.00 Royalty: $7.00 COGS: $3.50 Trade Marketing: $2.00 Freight: $1.50 2-3 Years of Dev Time Gamers pay $31 per game to get their games from distributors $31 var. cost / unit $3M Mrkting $15M Dev 650k units to breakeven Only 8% of console titles reached 650k units (breakeven on avg investment) Non-Hits
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Confidential – For Discussion Purposes Only New Gaming Category 6 Low cost and rapid development Entirely online distribution High engagement Free for basic access Traditional Video Games Costly and slow to develop Off-line distribution Expensive for users High engagement
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Confidential – For Discussion Purposes Only Introducing InstantAction The first web-based video game platform Funding and developing original IP Multi-player games Console-quality delivered in the browser & full-screen Built for global audience
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Confidential – For Discussion Purposes Only Current user stats : 6 months since open beta began ~ 700k registered users ~30 minutes average time on site Target demographic: Global audience of hardcore gamers Age range: 13-34 Beta Launched Late Spring 08 Over 127 Countries Site Traction 0 10 20 30 40 50 60 70 MayJuneJulyAugust Total Game Time (000 hrs) 0 50 100 150 200 250 300 350 400 Total Gamers (000s) Total Game Time Total Gamers
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Confidential – For Discussion Purposes Only Legions Trailer & Site Demo http://www.instantaction.com
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