Company Presentation - dynamic world of mobile game business
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1 Company Presentation - dynamic world of mobile game business COO Juhana Hietala Mobile gaming The market of downloadable games expected to grow up to 7 billion by 2007 (IDC) Size of the market in 2004: Europe app. 250 million US 250 million USD Asia: billion business Fragmentation of the geographical market 2nd wave of mobile hype Technology push 3D Real-time multiplayer Communities Big players entering the market EA Mobile Square Enix (Final Fantasy) Activision Yahoo Amazon GDC 05 Copyright 2005 Rovio Mobile Page 2
2 Rovio s Mission Statement We provide unique and novel stories with innovative game-play to satisfy the growing demand of games designed for mobile. GDC 05 Copyright 2005 Rovio Mobile Page 3 In Brief Founded in 2004 Comprised of industry veterans from three mobile game companies Based in Helsinki, Finland 3 in-house game development teams and QA department Expertise in European markets Several titles developed for and published by Digital Chocolate Solid financing Privately held by employees GDC 05 Copyright 2005 Rovio Mobile Page 4
3 Reflection on the past 3 months December The idea of Rovio was ignited - feasibility study followed --> GO! Strategy formulation Talks with potential investors begun First actions to recruit talent was initiated Rovio headcount was 9 January Financial requirements became secured Securing critical mass of talented individuals was secured Rovio headcount was 15 Motto: selling CVs and recruiting headhuntees at Teatteri GDC 05 Copyright 2005 Rovio Mobile Page 5 Reflection continued February Rovio closed 1st round of investment, securing 1M Ownership agreements were signed with all employees First signals of existence were given to external parties Rovio headcounts was 18 March New office, infrastructure in place Most crucial processes are in place, development of second title has begun Rovio makes first major appearance at GDC and elsewhere Marketing, PR, and media activities have all started First title noticed in the German media ( Rovio headcount is 23 GDC 05 Copyright 2005 Rovio Mobile Page 6
4 An evolving value chain 1/2 Late Early 2004: A bi-polar world IP Development Publishing Distribution Hosting/ Management Transport Provisioning Client/ Billing Marketing Publishers Carriers GDC 05 Copyright 2005 Rovio Mobile Page 7 An evolving value chain 2/2 Today: A multi-polar world IP Development Publishing Distribution Hosting/ Management Transport Provisioning Client/ Billing Marketing Porting Specialists Super-Developers Distribution Agents Super-Publishers Outsourced Platform Services Specialists Pure Pipe Carriers Online portal & MVNOs Traditional Carriers GDC 05 Copyright 2005 Rovio Mobile Page 8
5 Game development process QA Pre-production Production Post-Production requirement definition project plan architecture Game development platform 3-5 reference handsets Porting to different handsets localizations channel customization 2-3 weeks 6-12 weeks 2-5 weeks GDC 05 Copyright 2005 Rovio Mobile Page 9 Why Rovio? Super Developer Premium quality, original J2ME mobile games with innovative stories and unique game-play Games designed exclusively for mobile Flexible partner in business Experience in co-marketing Professionalism GDC 05 Copyright 2005 Rovio Mobile Page 10
6 Game development milestones Phases of J2ME game production: Pre-production (planning, requirement gathering) Production (game development) Post-production (porting to different J2ME handsets) Maintenance (supporting the product) Rovio milestones: M0 = Pre-Production starts M0.5 = Check Point M1 = Green Light M1.5 = 1st playable ready M2 = 1st release ready M3 = Release candidate ready M4 = End of production M5 = Project complete M6 = End of product Production QA + bug fixing Maintenance Pre- Production QA + bug fixing Post- Production GDC 05 Copyright 2005 Rovio Mobile Page 11 How We Differentiate? We deliver games that others in this industry don t: No casual games No old and worn out ideas (e.g. NES) Our games dare to make a statement Our games do not need to appeal to everyone Our games use European heritage and culture GDC 05 Copyright 2005 Rovio Mobile Page 12
7 Value proposition in mobile games Extensive handset coverage allows our customers to fully exploit the games Games designed for European markets - no generic products Utilizing commercially validated technologies, we allow our customers to increase their revenue without delay Rovio is a professional partner that helps its customers to maximize their revenue GDC 05 Copyright 2005 Rovio Mobile Page 13 Product Area Focus Strategy/War Adventure/RPG Fierce Action Premium/Artistic Adult Rovio will launch a total of 6 games in 2005 First set of games will be launched early Q3/2005 GDC 05 Copyright 2005 Rovio Mobile Page 14
8 War Diary: Burma Burma, Occupied by Japanese, this tiny Far East kingdom has become one of the hot spots of World War II. War Diary : Burma is a mobile action-strategy game of the Allied commando raids deep into the jungles of Burma. As a young lieutenant you must handpick your squad for dangerous missions behind enemy lines. It takes good skills, clever tactics and a squad fit for the task to survive Burma Patrol. Wargame designed specifically for the mobile medium Easy controls have you fighting the enemy, not the handset Different missions call for different strategies and skills Five types of soldiers to choose from when picking your squad Dynamic battlefield with artillery, air strikes and ambushes Plot your route carefully. Solid plan is half the victory......but in a fire fight, every second you hesitate can cost lives Victory leads to medals, promotions and bigger squads Game modes Career Mode takes you to an epic campaign to liberate Burma Quick Missions offer instant action to gain combat experience Controls 1-4, 6-9 movement, 5 action, * map, # air strike mode, alternative control model for navi-key users. Key strengths Easy-to-play one-unit strategy war game based on real war and real heroes. GDC 05 Copyright 2005 Rovio Mobile Page 15 Platform licensing Leading-edge, modular J2ME mobile game development platform Interfaces for third party extensions, i.e. realtime multiplayer and global high score Enables rapid and cost-effective development Enables efficient porting to all J2ME handsets Extensive documentation, maintenance and support Late mover in the technology development (cumulative experience) but first mover in the commercialization GDC 05 Copyright 2005 Rovio Mobile Page 16
9 Our Platform Concept Consists of four modules: Mobile API Device Database Developing Environment Publishing Tools Implemented on Java MOBILE API DEVELOPING ENVIRONMENT R-TOOL DEVICE DATABASE PUBLISHING TOOLS GDC 05 Copyright 2005 Rovio Mobile Page 17 How to make money with platform 1. References 2. Gaining critical mass of users Network externalities Lock-in effect 3. Revenue sources (customer segments): Cumulative from developers (revenue sharing model) License fees from big players Acquisition of the technology (/and company) Platform licensing creates strong IP, which is a tangible asset Positive effect on the valuation of the company More input gathered for the future development GDC 05 Copyright 2005 Rovio Mobile Page 18
10 Rovio in the future & main challenges We have already positioned ourselves in the market, now it s time to deliver Brand negotiations with significant players are in progress There is great anticipation for our first games! Opening delivery channels and delivering products to the market Growth (Organic / throuch M&As) Managing the growth Renewing the organization Attracting talent Professionals New talents Maintaining the great spirit in the company Securing 2nd round of financing GDC 05 Copyright 2005 Rovio Mobile Page 19 SUMMARY: OUR STRENGHTS Business orientation Focus Quality Check out available jobs at THANK YOU! GDC 05 Copyright 2005 Rovio Mobile Page 20
11 Contact Information Juhana Hietala Chief Operating Officer mobile: Annankatu 31-33C FIN Helsinki Finland GDC 05 Copyright 2005 Rovio Mobile Page 21
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