alright next up is consolidation is the new black
what's next for the mobile game industry
we have shown bonham his senior managing director for upside
so consolidation is the new black House on Obama's you know and I'm based in
operations and strategy for upside so what is consolidation
is the new black really mean well you block is simple back is flexible
you know works in numerous situations within a minimal tweaking in change
in israel even be minted news/talk which is consolidation simplification in the
both in the publisher and developer communities but also in the middle where
so your movie to appear to increase consolidation
right now and again you know as we move into this phase it's really important to
identify the key component to the business
back scale just love like you know that perfect black jacket and a black dress
for you can wear clubbing you can wear to a wedding
no figure out we are core component your text back our
what the core components new businesses and then you can really scale them
as you go about your business across multiple dev team's was you work as a
single public developer with multiple publishers
the theme for this topic author came
with many in the 100 developers that we work with upside worldwide
they themselves are still struggling to figure out you know how do
scale the business come across many regions across many development
so our quick question have you heard above the company upside
fewer people great may be breaking news but
December last year playing in a contagion combined together
and energy see margin this year we announce the birth
upside which is the combination the staff and the technologies available to
so the goal of this was really too to create a really comprehensive solution
where you know we can both understand uses deeply to contagious analytics
then reach out to them in a targeted way new planes and push
marketing as well as in app in at marketing campaigns
nothing I can really talk much about this in detail but i wanna give you
through we ourselves are also working a consolidation of the company's well
so back to storage consolidation before you go on a shared an interesting story
upside with you I think maybe so you're working on international marketing
when we announce the combination of flavin a contagion upside marketing team
saying you will hear these two companies are just like peanut butter and
they go great together right well I think the abundance of integrated
by whoop you realize outside the US no one else thinks that so I recommend
very active think about how you treat weakness but just let me keep in mind 0
I V I think this is really going to be a year when we see
am in a ethnic salary a lot as a continuing trend
so the end in 2013 and Shiraz live you know we saw combinational gung-ho
and not bank pick up 51 percent stake in super cell
earlier this year obviously zinger by natural motion blue play for his
knows there's not a partner in going on right now in the Middle Earth space as
obviously we just talked about play have been a contagion combining to form
for unity is that have been on a spending spree also popping up every
which company specializing in Houston replays
and game sharing and law game politics
is a few large examples arm with these are also part of a much larger
trend in the industry as well according to do Capital Research
I'm in a new gaming space was up 29 percent in 2013 to record 5.6 billion
and the 5.6 billion mobile gaming specifically to go almost 70 percent
the average deal size also increased around
23 percent year-over-year 63.9
not a trend which is expected to continue in 2014
so then why is there so much consolidation happening
so I think it's really express well from a quote from mom rhamat leveraging them
re Chinese might recognize this the coupon from billion
to go something like this will be fun funds will be home
so busy with that as in anything which is divided for too long
anything which is together for too long have to divide anything which is divided
have to come back together again the opening line from
management reading them sensitive part in a politics in ancient China
by the equally applies so the tax base that we're in right now
especially mobilize new business models new devices new technologies come out
you know established companies are really not able to the agile
enough to deal with them so uses plethora of some startup companies burst
two years especially 2014 as we are now three-play business model
marketing strategies are better understood and a larger companies are
actually better able to realize economies of scale
in the game development and also do more comprehensive marketing spends to push
the movie games the things come back together again
comfort dig down deeper into wise with this consolidation is happening on the
know obviously competition for growth is intensifying doing very difficult for
indie developers too soon break above the crowd on the Apple or Google Play
Store is without working with publishers
and some time model publishers you know for multiple reasons
from publisher site obviously they're working with more and more developers
and in order to guarantee that revenue stream there
you think ima more seriously not actually purchasing some these
developers in creating their own
inside large developers as well like said loser cabana losing in the world
you know looking to serve versa by revenue streams
I think any investment portfolio manager will tell you having just one stop no
you know is not a great diversification strategy losing more and more games
making hundreds millions and billions of dollars a year
however losses the animal was business Eagles only sell
you play free to play game obviously the user feels that been invested money in
overtime and going to seek was not simply no spending on a fifty dollars by
actually starting from scratch again having to reinvest all this money
so segal not gonna sell we have a single IP generating ninety percent of our
nothin recipe for trouble and so i think you see a lot of companies especially in
trying their best buy them what volume business streams agreed
next looking with that iris occasion
and consolidation in the middle space
so obvious leading he goes nothing you know
premium is a winning business model is already one in the US
around a.m. in ninety-three plus percent games news from your business model and
how those ninety-three percent
already present use virtual currency
as the main driver in app purchases
and the packaged abortion apartments in grain these premium
so what does this mean for Miller obviously
you know traditionally ian miller to develop
again but now one more you also need he's been away every single day just to
to love you keep your eyes because keep your eyes
to constantly engage with new users via you nap
which invocations in at marketing new events for the game
number a middleware will text back actually operate effectively
afternoon games becoming more and more complicated
the right now said with love all love from the middleware
data solutions currently available in the IT space luminol for gaining
but even if we just the beginning ones business the hundreds of marketing
Alex platforms which platforms available and trying to put together all these
is is a daunting task most developers
no significant break things down a limit to the gaming space
and the you probably any view here we'll see now we have a dozen
up services which you currently use so
having around you know five or six maybe even more STD's
is possibly viable if you're small developer
and you're happy with you know combining all the pipes between these two
system yourselves managing SDK updates and bug fixes
but going back to the trend of consolidation this becomes a real
developer working with iris 6 publishers bubbly
and you to explain to them you know how your complicated 67 SDK text back works
nor if you're a job with model development studios in a single
essential texting you can imagine the difficulty in trying to piece all these
so would you like to see a lot more
consolidation and simplification in the Middle Earth space
and I think from developers was active like really looking people you text back
and figure out how you can simplify it is going to be a key to success
arm and his upside know we call this luv complete path from
data analysis to use the segmentation you finally reaching out
those reviews and segments mom you Bush
an app marketing actionable analytics
so this is an example love you know the single unified in a path that we use
you know we're going as the one min away you decide to use
on you being able to intelligently being
about how you can minimize number middleware pieces
and make all those pieces really work effectively together
you can better understand our user base is going to be huge win
no more specifically as idea actionable analytics
is really gonna make a decision process decision-making process be much more
the right now you may have and middleware
marketing you looking at LTV different user channels
made another LTV for use in game magic's
you looking at what your tutorial completion reviews
how after leveling up work on things popular you have another middleware
you push campaigns me figure out how effectively to those places like but
they probably don't really popular very well
you have to you you can see got him Aires dashboards barriers website
reupload them somewhere else but you imagine if all these pieces
talk to each other knows that you can look at how the effective
which campaign is resulting in people buying
tonight how is that purchasing a certain item and affecting how fast level up to
and retention rates other miss you can really see Alice in holistic
use really gotten from efficiency
request hopping creation as well me moving into
a period when medgar games are becoming much more popular
concentration marci you even creating detailed 3d models
in isn't particularly cheap news really think about who is the user base lamp
with this content creation who is this new avatar
police that you really going to appeal to you who is this new weapon going to
and understand that before you actually win work order to create
total comprehensive text back and analytics
marketing which platform is gonna really allowed in final user experience becomes
you mean by that the users gonna feel
you actually understand them to an example
you know if you can understand from you and will accept that
a certain user music group even Gordon Highland
they don't buy many power-ups they don't by lightning weapons
but they always buy the latest avatar
you have a new version putting him out greatest thing I've those users
than a push notification I send them special offer fifty percent of
especially if they see that they got an offer and their friends didn't
the fuel you actually understand them is the user and the do much more loyal to
your game and their attention as well
so you know what next obviously you know
up at noon is you know you really have a crystal ball but I think definitely
internationalization games meaning that from all regions
large developers and small developers like a national figure out how they can
and a partner with publishers with %um in a
author you know I think wearables poised to become interesting thing at the next
to me i'll be sitting here listening to a number of talks about
new business models in new technologies from wearable games
but you're going with the body which lines you break into new markets
were you trying to making understand reagan new technologies
think you really gonna be served well by having them consolidated
a simplified text back you the end the day I me knowing your metrics
understanding your users gonna allow you to quickly generate
realize you understand what is defective the result to that
and then pump that back into knowledge said so
by doing that you can generate in reiterated Giovanni the top