Diamonst Augmented Reality RPG

A u g m e n t e d R e a l i t y R P GA u g m e n t e d R e a l i t y R P G

The Problem

Videogames are an amazing medium to convey emotions and they are able tomake you live marvelous adventures, but their experiences are confined in avirtual world and the players are left with a feeling of isolation from the realworld.Popular Augmented Reality games like Ingress or Pokémon GO lack of manyfeatures traditional games have, like a single player campaign or a competitiveplayer versus player mode, many are disappointed by the current offer andafter the huge initial success, many stopped playing.

An Unique Marvelous AR Adventure

We want to make you live a gaming adventure in the real world!Thanks to the modern Augmented Reality technologies, the feeling ofimmersion is unmatchable by any other game, creatures, human charactersand objects looks real because they appear in 3D in front of you.

The Business Model

Our business model follow the mobile games industry standards:

«Free-to-play»

Revenues are generated by in-app purchases and reward videos:- 2 main types of in-app purchases:

vanities (esthetic accessories and customization for the characters) time savers (help you reach a goal faster or easier)

- Reward videos give in game rewards (currency/items)

The stores keep their share (30%) and turn the remaining to us.

We get the revenues from the advertising videos.

Parternship with other companies for events or special monsters spawnlocations will be taken in consideration after launch.

Merchandising such as toys, plushy and clothing will be a complementarysource of revenues

The Competition

We are at the dawn of the Augmented Reality Games market and so in this field thereare few competitors, Diamonst has an unique positioning because it mix the traditionalRPG mechanics with the GPS and Augmented Reality features.

The previsouly mentioned Pokèmon Go, along with other minor games, share the GPSelements, but their core gameplay features are so different that set them apart if weconsider the traditional gaming segments.Other traditional RPG games lack the geolocalization and the Augmented Reality aspectsthat make Diamonst an unique experience.

Our competitive advantage reside in the depth of the gameplay mechanics and in theuse of the GPS features for narrative purposes (location-based story mode).

Target Market and go-to-market strategy 1/3

Mobile AR could become the primary driver of a 108$ billion AR/VR market by2021 (underperform $94 billion, outperform $122 billion) with AR taking thelion’s share of $83 billion and VR $ 25 billion (DigiCapital).

The consumer segment will be dominated by AR and VR games throughoutthe forecast, with total spending reaching $9,5 billion in 2021 (IDCC).

Target Market and go-to-market strategy 2/3

Our target segment:

- Teenagers and young adults 13-30

- Mainly male (70-80%)

- Mobile and console gamers, collectible card games players.

Already players of RPG games like Pokemon, Digimon, DragonQuest, Final Fantasy, card games like Yu-gi-oh, Hearstone, Magic,and location based games like Ingress and Pokemon GO.

According to the Pokemon GO downloads, the potential marketsize is higher than 500 million users.

Ingress, another location based game, reached the 14 milliondownloads in less than 3 years.

An average RPG mobile game can reach 1 milion downloads in itsfirst year.

Target Market and go-to-market strategy 3/3

Go-to-Market strategy:

The gaming industry is comparable to the movie industry when itcomes to the go-to-market strategy, a marketing campaign pre-launch is essential to gain traction for the «day one» (the first dayon the market) and to reach a mass effect in order to create a goodplayer base.

Trailers and teasers video of gameplay/combat/story sessionsalong with reviews from videogames journalists are the way to gofor the gaming market.

Gaming exhibitions and video from famous youtubers andinfluencers are others marketing tools that we are planning to use.

Merchandising & Toys

The videogame is just the first step of our project, we want to launch aninternational brand to sell toys, gadget, clothing and other merchandising toinvolve the players with the brand and generate customer loyalty to increaseour revenues.

Technology

We are currently building Diamonst using the game engine Unity3D along with the Augmented Reality plug in Vuforia, but we areupdating tha app with the new AR SDKs, ARKit for iOS and ARCorefor Android.

Unity is the most flexible and optimized engine on the market formobile games, it allows us to develop the game for all the currentmobile operative systems and future AR devices like the MicrosoftHololens, the Meta headset or any other that will come out in thefuture.

Financial Roadmap - Worst Case Scenario

Downloads and revenues for the Worst Case scenario are calculatedaccording to the data from Geomon, a location based game that sharedsome core features with DIAMONST and that passed the 1 miliondownloads threshold in 2013 before being retired from the stores (LokiStudio, the company that developed it, has been acquired by Yahoo).

Profitability Indicators Year 0 Year 1 Year 2 Year 3

Equity 1.500.000,00

Downloads 0,00 1.000.000,00 1.200.000,00 1.440.000,00

Revenues 0,00 1.242.786,89 3.970.032,79 7.242.727,87

Total Costs 721.111,00 1.357.825,57 1.839.096,07 2.648.620,66

EBITDA -721.111,00 -115.038,69 2.130.936,72 4.594.107,21

Taxes 0,00 0,00 658.459,45 1.419.579,13

Profit (Loss) -721.111,00 -115.038,69 1.472.477,27 3.174.528,08

ROS 0,00 -0,09 0,54 0,63

ROI -0,48 -0,08 1,42 3,06

ROE -0,48 -0,08 0,98 2,12

Global Performance -1,48 -1,56 -0,58 1,54

Financial Roadmap – Realistic Case Scenario

Downloads and revenues for the Realistic Case Scenario are calculatedaccording to the data from Ingress, another popular location based gamemade by Niantic Inc.

In this case we simulated a big growth in the second year and a decreaseof new downloads in the third.

Profitability Indicators Year 0 Year 1 Year 2 Year 3

Equity 1.500.000,00

Downloads 0,00 1.000.000,00 8.000.000,00 4.000.000,00

Revenues 0,00 1.242.786,89 13.456.065,57 31.825.901,64

Total Costs 721.111,00 1.357.825,57 8.736.882,95 13.450.817,38

EBITDA -721.111,00 -115.038,69 4.719.182,62 18.375.084,26

Taxes 0,00 0,00 1.458.227,43 5.677.901,04

Profit (Loss) -721.111,00 -115.038,69 3.260.955,19 12.697.183,23

ROS 0,00 -0,09 0,35 0,58

ROI -0,48 -0,08 3,15 12,25

ROE -0,48 -0,08 2,17 8,46

Global Performance -1,48 -1,56 0,62 9,08

Financial Roadmap – Best Case Scenario

Downloads and revenues for the Best Case Scenario are calculated according to thedownloads data of Pokèmon GO 10 months after the initial craze that followed thelaunch when the download numbers stabilized.

This case should be taken in consideration for a succesful situation and it’s realisticin the mobile game market.

We like to dream big and we are sure Diamonst can reach these numbers with thedue funds and efforts (please note that the investment in this case is higher).

Profitability Indicators Year 0 Year 1 Year 2 Year 3

Equity 5.000.000,00

Downloads 0,00 10.800.000,00 12.960.000,00 15.552.000,00

Revenues 0,00 13.347.737,70 46.368.826,23 91.171.617,05

Total Costs 721.111,00 7.952.571,48 15.361.709,18 28.513.416,72

EBITDA -721.111,00 5.395.166,23 31.007.117,05 62.658.200,33

Taxes 0,00 1.667.106,36 9.581.199,17 19.361.383,90

Profit (Loss) -721.111,00 3.728.059,86 21.425.917,88 43.296.816,43

ROS 0,00 0,40 0,67 0,69

ROI -0,14 1,08 6,20 12,53

ROE -0,14 0,75 4,29 8,66

Global Performance -1,14 -0,40 3,89 12,55

The Team

Alessandro Pedron – FT Project Manager – Founder 60%

Second level degree in Marketing & Comunication at Ca’ FoscariUniversity of Veniceù

Isabella Foffi – FT 3D modeler – Founder 5%

Master in computer graphic at Big Rock School

Andrea Bettin – FT 2D modeler – Founder 5%

Art school graduated, Master in Illustration at Comics School of Padua

Alessio Rizzi – FT 3D modeler – Founder 5%

Master in computer graphic at Big Rock School

Eggon s.r.l.s. – technical partner – 20%

Mobile app developer and cloud storage specialist

Current status

A first playable demo is already published on the Android store(http://bit.ly/2y41QJm) with a solid 4,1/5 rating and enthusiastic reviews.

We received many praises from those who tryed our game at the gamingexpos we partecipated (AWE US & EU, Gamescom, Milan Games Week)

We are upgrading the iOS version with ARKit and we will publish it soon.

Summary and call-to-action

We are currently promoting our app and looking for seed and Seria A investements to keep developing the game.

We are willing to sale up to 40% of our company shares depending on the ammount of the investments.

Funding goals:

- Minimum: 1.000.000€

- Ideal: 2.500.000€

- Optimal: 5.000.000€

Founds will be mailnly used to hire staff (programmers, 3D and 2D artists, designers, management) and use extra money on promotion and community building campaigns.

Watch the trailer

Click on the image or on the link: https://youtu.be/DfOer73w74E

Start up & contacts

www.zenkogames.com

info@zenkogames.com

Object of the business:

Augmented Reality Mobile Games & Apps

Our Mission:

Zenko Games delivers immersive Augmented Reality experiences for mobile platforms and headsets leveraging the power of storytelling, location-based services and the interactivity of videogames