SAN FRANCISCO, 2012 REPORT FROM @JMARCHADIER

DAY 1September 11th

DIGITAL DISTRIBUTION POISED TO OVERTAKE PHYSICAL SALES

9:00 - 9:30

• Social games, mobile games are big business. Smartphones and tablets have proliferated. Multiplayer and f2p are the norm. Packaged good sales are collapsing.

• Social is the new arcade-style training wheels.

• Old singleplayer game costs 2$/hour. Multiplayer 0.15$/hour

• 2013-20120: content anywhere, packaged good still exists, consoles becomes multipurpose devices, f2p might go away, gamesbecomes services = growing audience

HOW DIGITAL DISTRIBUTION WILL CHANGE THE CONTENT, ECONOMICS

AND ECOSYSTEM OF GAMING 9:30 - 10:10

• EA invests 80$M on new platform developments, R&D

• Where ever you play, EA will be there. No magic behind multi devices experiences, focus on player habits

• Origin has been designed to push content to any device

• F2p will continue as a unique model to boost wider audience

• EA believes in cloud computing to stream tailored contents

• Acceleration of shifting star wars MMO to f2p

IS CLOUD GAMING AT AN INFLECTION POINT?

11:00 - 11:40

• Platform companies multiple consumer devices: fragmentation

• Ideal solution: one game, developed once, run as service from one place, btw you don't want piracy

• True GPU clouds are mandatory

• From 3 consoles and PC to tablets, tvs, stbs, ios, win8, android

BUILDING A SOLID CLOUD GAMING MIDDLEWARE PLATFORM

11:40 - 12:10

• 22% of Americans knows what cloud services are doing

• Current competitors offers including gaikai and onlive: lack of focus, OTT delivery, poor virtualization, expensive, inflexible business model.

• Ciinow focuses on software, not on services (+++value chain)

• Cross-provider multiplayer and interactive spectating support

MORE THAN SAVES: CLOUD SERVICES CHANGING THE WAY GAMES ARE MADE AND PLAYED

13:45 - 14:25

• Start in the cloud: player service. Then game and configuration saves. Framework custom publish (screenshots). Workshop

• Building games as frameworks (portal 2): lvl/coop in the cloud

• Frameworks for community to emerge. And for game dev between players and devs. Steam Greenlight. Support ideas.

• Founded to help any game genre and mechanics, as expected

THE BUSINESS OF CLOUD GAMING: ALL-YOU-CAN-EAT OR MICRO-TRANSACTIONS

14:25 - 15:25

• Xbox live is cloud: deliver social/content online capabilities. Customers wants all entertainment feeds at the same place

• Cloud is only a channel: players expects new tech features

• Gameforge focuses on web browser exp and then companion

• No hard answer on companion, but it drives engagement/sales

• Companion fills a gap only because the full promise of cloud gaming is not possible during those days

• 1st the game must be good THEN at mid-dev include business model, not before

FIXING CLOUD GAMING 16:15 - 16:45

• Cloud gaming 1.0 is pixel streaming, and it cannot scale

• Cloud paging (gaming 2.0 ): transmit virtualized code locally like drop box

• Managing software behavior for better network performance

• Using pc as the local proxy gpu at home for multiple devices

BUILDING A CROSS-PLATFORM CLOUD ECOSYSTEM AND ENGAGING PLAYERS WITH NEW, UNIQUE

EXPERIENCES 16:45 - 17:15

• The Cloud technology revolution is similar in many respects to the Cable TV revolution. Cable was used primarily as a way to distribute existing content.

• EVE has been designed as a sandbox, and this is why the community is still growing.

• Dust 514 - take people and bring them into the same sandbox, and connect the 2 games in Carbon : our cloud.

DAY 2September 12th

CHRONICLING THE EXPANSION IN CLOUD GAMING

9:00 - 9:40

• G-cluster is a pioneer in cloud techs, before onlive. Scalable for interactive services: japan, finland and france. Ready for US

• Partner with Orange, 226 millions of customers (net and tv)

• Game on demand with SFR: monthly subscriptions from 4.99 to 14.99 euros, but also short and long rentals. Billing supports

• 9 euros ARPU, and 10% conversion from f2p to subscription

FAIR & PARTLY CLOUDY 9:40 - 10:20

• Need for the creators: a full support for built-in billing solution

• With the cloud promise, game designers won't have to worry on leaving gamers behind, because everything is connected

• Think game as something bigger, not only running locally

• Beware of customer acquisition policy from publishers, there is a huge risk to split communities as no links are permitted between those systems (ps, xbox, apple)

PUBLISHER PERSPECTIVES ON CLOUD GAMING

11:10 - 12:10

• Cloud is the remote execution of games (companion/service)

• AAA is sexy, but cloud should be also for family and kids

• Should be a bridge tech, and deliver smartly content to players

• Publishers a now reactively retrofitting, we need to pro-actively make games with cloud in mind

• The games are now not only an experience, but a platform

HOW ARE NETWORKS EVOLVING TO MAKE CLOUD GAMING EXPONENTIALLY MORE ACCESSIBLE?

12:10 - 12:50

• Leveraging the video stream is the easy part. Biggest challenge will be on IPtv because of huge latency issues

• Cloud services is the perfect application in design, thanks to low cost and unique exchanges between gamers

• Client acquisition costs and operations costs are not accessible for the moment. Focus first on value proposition to optimize your ROI calculation.

CLOUD GAMING IN CHINA 12:50 - 13:05

• Market: 380M mobile, 400M tablets and 20M iptv

• Could Union is the largest service in the country. Multiple terminal and OS support

• Pricing: from free to single games, with 70% to publisher. We are running full games not demos. Including BI, smart bit rate.

• Virtualization OS manages multiple game instances on a single machine. VOS tech does video/audio and inputs

BUILDING A STRONG BRAND IMAGE IN CLOUD GAMING

14:40 - 15:10

• Returning churn by taking action: Medio predictive analytics

• Personalized experience drives lifts in usage and engagement

• Plan: data+, acquire better users, be data-driven

RAPID EXPANSION OF CLOUD GAMING: WHO ARE THE NEW PLAYERS?

15:10 - 15:30

• This is dangerous to lower the quality of the game to be able to go through the cloud streaming service. For the moment, publishers focuses on new content delivery

• Hybrid technologies is a good compromise, between cloud downloads and local game installs

• The availability of high-speed internet is not good enough to switch fully from local to cloud pixel streaming games

TECHNOLOGICAL ADVANCES IN CLOUD GAMING

15:30 - 16:00

• Ray tracing: algorithm to create images, physically based on light rays, programming easier. Cloud gaming since 2004

• Intel xeon phi prototype for ray traced (reference quake3 and Wolfenstein. Cloud setup, support for up to 8 cards / machine

• Scaling to thin clients, linear dependent on screen resolution, and linear dependent on frames per second.

• Voxel rendering: research from sven woop, millions of trees, billions of grass and plants. Photo realistic rendering.

THANK YOU!Questions: @jmarchadier