[Inside Social Apps 2010 - San Francisco ] Hello everyone, my name is Sebastien de Halleux and what I’ll talk about over the next 30 minutes or so is about The Evolution of Games, and specifically lessons from gaming platforms past.. Most of today is about social games and the future of the game industry, so I wanted to take a step back and hypothesise what the past can potentially teach us about the future.

1. Games (r)evolution
Lessons from gaming platforms past
Sebastien de Halleux
Playfish Co-Founder / VP BD EAi

2. Playfish creates social games
part of the family
2

3. Physical  Digital
Products  Services
Solitary  Social
$$ upfront  $$ ongoing
3

4. Before talking about the future
Let’s rewind.
4

5. Games have grown through
new platforms and hit titles
$ (Bn) US Games Revenue (NPD)
25
20
15
10
5
0
1995 2000 2005
5

6. Another way to tell the story
access
barriers Lower cost
PS3
More social
Xbox More immediate
360
More real
Wii
iPhone / mobile
Free-to-play / online / social
0 10m 50m 100m 500m 1Bn audience

7. “Moore’s law” of games industry
access audience
barriers
0 0
time time
Video…

8. As platforms evolve, games surface
snake
java
apps
8

9. As games evolve, brands surface
9

10. a short
story
10

11. Top paid app in July 2008
iBeer by Hottrix Ent.
11

12. Top paid app of 2008
Koi Pond by The Blimp Pilots
12

13. Top grossing app of 2009 ?
13

14. 14

15. top 10 apps: 8 games, 7 brands

16. Friend-centric platforms
16

17. Internet : 16m to 1.8 Bn in 15 years
17

18. Online video: 0 to 150m (US) in 3y
18

19. Social Games: 0 to 200m in 2 years
19

20. Driven by social interaction
20

21. Reaching friends, not gamers
21
Photo credit: jay1441

22. More fun with friends

23. Social design online
23

24. Reaching users everywhere
24

25. Accelerating generations
17 yrs, 21 gens 1.5 yrs, 100+ gens
1993 2010 2008 2010

26. strong franchises
large audience
real friends
fast iterations
26

27. Where next?
27

28. Thousands of small developers

29. Consolidate into a handful of leaders
29

30. Rise of the billion $ franchise
GTA WoW Game X OR Game Y
15 12 100 200
million million million million
boxes subs MAUs MAUs
@ @ @ @
$60 $12 ¢80 ¢40
per per ARPU ARPU
box month
30

31. 1.8 billion web users
100m
MAUs
game
200m 400m
400m
monthly Facebook
MAUs
players MAUs
Facebook
Audience (r)evolution

32. Social: joining the magic circle?
Avatar Modern Warfare
32

33. The demand curve again…
access
barriers
PS3
Xbox3
60
Wii
iPhone / mobile
Free-to-play / online / social
0 10m 50m 100m 500m 1Bn audience

34. Likely industry trends
access
barriers 1. Brands on social networks
2. ‘Social games’ consolidation
3. No more ‘social games’
4. Innovation & growth
0 10m 50m 100m 500m 1Bn audience

35. Thank you!
Sebastien de Halleux
Playfish Co-Founder / VP BD EAi