Game Co. 2.

0:
The International Gameplay
- A D e t a i l e d P r o p o s a l

S i d d h a n t h B a g a r i a
I I M B a n g a l o r e
 Understanding the Global & Indian Mobile Gaming Market: Key
Trends, Success Factors and Value Chain
Worldwide Consumer Spending on Games by Major Device Group 4 Key Emerging Trends 3D consideration for guaranteed Success
$136B Familiar content along with Genre
140 Spend visual and voice features
23% CAGR Device Group
$ Billions

2022 (F)
100 Influencer driven user Higher multiplayer In-App Purchases more
Mobile Gaming $136B generated content, interaction in action & viable in complicated
60 livestream driving adoption strategy type games action/strategy type games
Global Mobile gaming spend Home Consoles $42B
20
PC / Mac Gaming $40B One stop shop gaming
platforms emerging
Handheld consoles $4B Engagement Monetization
Investors showing active
interest (1/3 of all gaming 2x – 3x more spending
Indian Mobile Gaming: $5 Bn Market by 2025 funding in India in Q1 2021) on multiplayer games

Understanding the ‘Indian Skill-Gamer’

20% Gainful Entertainment

Reasons 36% Connection

GROWTH AVAILABILITY ADOPTION MONETIZATION*
to
Reasons: Preference: Dominance:
38% CAGR 46% population 22% Mobile Gamers $3-$10 avg. annual Engage 34% Relief
Social Mobile Gamers
2017-2020 internet penetrated as a % of population mobile gamer spend
interaction & phones as from South
Stress relief the medium India 10% Dominance
~86% of Total Indian Gaming Revenue in 2021 comes from Mobile Gaming Segment

MOBILE GAMING VALUE CHAIN

Enablers Content Development Marketing Distribution Consumption Interfaces

Source: Gaming Spotlight 2022; data.ai; IDC; Mobile Gaming Report, BCG & Sequoia 2021; Gamesindustry.biz
 Next Phase of Growth for Game Co.: International Expansion in
Emerging Economies with Similar Customer Behaviour
Game Co. 2.0: exploring opportunities Factors affecting market entry decision:
Market Growth

International Expansion Regulations & Internet Monetization

Legality Penetration Potential
Existing restrictions / licensing Potential TAM to look forward to Nature of customers in gaming spend

Size & Projected Competitive Mode of Entry –

Growth Intensity self vs collaborative
Headroom to capture mkt share Presence of peers & their power Best way to establish presence

CADE Framework for evaluating ‘best fit’ market to enter

Time duration
Market Cultural Fit Administrative Fit Demographic Fit Economic Fit

Nature of Market / Economy HIGH LOW HIGH HIGH

Behavioural & social Not encouraged, Mobile gamers ~60% of adults engage
Mature Emerging Pakistan similarities Licensing exists spend >4 hrs/day in mobile gaming
Customer behaviour compared to

HIGH MEDIUM HIGH HIGH

Japan Pakistan Language & habits Regulated, not ~79% recreational ~2.5B active mobile
South Korea
Similar

Bangladesh overlap restricted screen time / day players (2020)

Bangladesh
Indonesia Nepal
HIGH MEDIUM MEDIUM LOW
Russia China Sri Lanka
UAE WTP and persona Regulated, ~20% of mobile time Undeveloped market,
match Licensing exists spent on gaming 50% internet access
India

Sri Lanka

LOW HIGH LOW MEDIUM

United
Dis-similar

Canada Chile ~14 hrs per week Relaxed regulations ~14 hrs per week ~500+M smartphone
States Brazil
playing games comparatively playing games users by 2025
UAE
Germany Mexico
France United HIGH MEDIUM LOW LOW
Kingdom Argentina Language & social Regulated, neutral Small market size Gaming penetration
Colombia similarities stance with ~10M youth ~21% by 2022
Nepal

Source: Gaming Spotlight 2022; data.ai; IDC; Mobile Gaming Report, BCG & Sequoia 2021; Gamesindustry.biz
 Game Co.’s International Stint: Bangladesh, Sri Lanka and
Pakistan emerge as top choices
Regulations Competitive Landscape (Direct) Market Nuances

❑ Regulated by the Public Gambling Act of ❑ Expected revenue of ~$500 Bn by 2025

1857 – “Games of mere skill exempted” ❑ Currently has ~2.5 Bn active players
❑ The exemption (Section 11A) was inserted ❑ Game developers like Hamba Games,
by the Bengal Public Gambling (Amendment) Game Changer RiseUp Labs, Ulka Games gaining visibility
Marfian Games 10CR mBank
Bangladesh Act, 1913 BD ❑ Recent hike in gamer fests & events

❑ Government passed gambling taxation ❑ Expected revenue of ~$50 Bn by 2025

regulations a few years ago ❑ Expected user penetration ~4 Mn by 2024
❑ Recently approved issuance of casino ❑ Gamers are generally highly loyal demanding
licenses to four entities complex & challenging games
❑ No restrictions on Games of mere skill Upcoming cloud Irstha The Software ❑ eSports has seen significant thrust since 2019
Sri Lanka gaming platform Practice

❑ Regulated by the Public Gambling Act of ❑ Expected revenue of ~$45 Bn by 2025

1857 – exempting Games of mere skill from ❑ Expected user penetration ~36 Mn by 2024
the operation of the Act ❑ Prefer Sports, Action/Adventure and Puzzles
❑ The exemption was added by the Punjab ❑ 37% of second screen activity is gaming while
Sweet Maker Mini Gamers Digital
Act 1 of 1929 watching TV
Pakistan Shop Club Dividend

Source: Gaming Spotlight 2022; data.ai; IDC; Mobile Gaming Report, BCG & Sequoia 2021; Gamesindustry.biz; https://timesofindia.indiatimes.com/gadgets-news; https://tracxn.com; www.thedailystar.net; Colombotelegraph.com; Statista.com
 Market Entry in Identified Markets – Evaluating Feasibility and
Assessing Potential Challenges
Feasibility Assessment Benefits vs Effort Map Priority Order for entry - RICE
Product Market Reach Impact Confidence Effort Score
5
4

Business Impact
3 Pakistan 6.5 3
Customer 2 Market
1
0 Bangladesh 9 1

Commitment & Efforts Sri Lanka 7.5 2

Financial Operational

GTM Strategy (next 2-3 years outlook) Risks & Challenges going International:

Risk of regulatory changes

PRODUCT PRICE or sanctions on current
Risk of political tensions
❑ Customize UI/UX and language ❑ Consistent pricing at game level with concerned country mode of operation
as per new target market across geographies hampering business Risk of newer & disruptive
❑ Utilize cross country sentiment ❑ Use penetration pricing by offering 04 technology to gain inroads
to organize tournaments, etc. free trial games for faster adoption to market
❑ Explore alternatives to games on ❑ Incentivize local game developers 03
Risk of economic failure or 05
platform like NFTs by higher margin sharing crisis reducing customers’ Risk of negative
willingness to pay network effects with
game developers
PLACE PROMOTION 02 06 shifting to other
platforms
❑ Explore local app stores in new ❑ Channel through localized social Risk of mindset
markets that might exist media content creators shift of customers Challenge of
❑ Account for platform and ❑ Do not spend heavy on brand towards overcoming
technology deviations (if any) ambassadors (CAC in check) homegrown inherent bias in
❑ Use ads & social media to reach ❑ Continue referral marketing &
01 07
platforms / apps customer mind
potential audience directly adoption incentives for first timers

Source: Gaming Spotlight 2022; data.ai; IDC; Mobile Gaming Report, BCG & Sequoia 2021; Gamesindustry.biz
 Identifying the Different Customer Personas, their Respective
Needs and Potential to Serve
Customer Segmentation of Active Mobile Gamers (behavioural basis)
HARD CORE GAMER
Hoc
Ad

OCCASSIONAL VISITOR
❑ NEED: Competitive spirit, Feel energized ❑ % of Total Spend: 14%
Occasion

FREE TIME PLAYER LONE ENGAGER ❑ GAME: Action, Adventure, Sports, Strategy ❑ % of Paid Users: 47%
Proactive

❑ Avg. Hrs / Week: 21 ❑ Avg. Spend/ User: $6-6.5

SOCIAL GAMER PRIZE MONEY CHASER HARD CORE GAMER
LOYALTY: WILLINGNESS TO PAY:
Low Medium High Low High
Category Involvement

PRIZE MONEY CHASER

LONE ENGAGER
❑ NEED: Make money ❑ % of Total Spend: 40%

❑ % of Total Spend: 5% ❑ GAME: Casino, Fantasy, Sports, Casual ❑ % of Paid Users: 68%
❑ NEED: Self indulgence, Quick break
❑ % of Paid Users: 31% ❑ Avg. Hrs / Week: 19 ❑ Avg. Spend/ User: $10-11
❑ GAME: Action, Adventure, Casual
❑ Avg. Hrs / Week: 14 ❑ Avg. Spend/ User: $1.5-2
LOYALTY: WILLINGNESS TO PAY:
Low High
LOYALTY WILLINGNESS TO PAY:
Low High

SOCIAL GAMER
FREE TIME PLAYER OCCASSIONAL VISITOR
❑ NEED: Bond & connect with groups ❑ % of Total Spend: 16%
❑ NEED: Passing time ❑ NEED: Avoid boredom
❑ GAME: Action, Board, Strategy ❑ % of Paid Users: 44%
❑ GAME: Adventure, Casual ❑ GAME: Board, Casual
❑ Avg. Hrs / Week: 17 ❑ Avg. Spend/ User: $3-3.5
❑ Avg. Hrs / Week: 16 ❑ Avg. Hrs / Week: 12

LOYALTY: LOYALTY: LOYALTY: WILLINGNESS TO PAY:

Low High Low High Low High

Source: Gaming Spotlight 2022; data.ai; IDC; Mobile Gaming Report, BCG & Sequoia 2021; Gamesindustry.biz
 Introducing New Features to the Product: Country Level
Tournaments and Game Co. Olympics
Country Level Games / Tournaments to establish deeper connect using Patriotism

❑ Multiple combination of Countries paired up with each other

❑ No option to choose opponent – only opponent’s home country Evaluation
❑ In-Game chat feature can be introduced metrics:
❑ Basic abuse expected and hence monitoring suggested ❑ Daily Active Users
❑ HEART metrics
Feature Nuances: ❑ Avg. games played / user
vs ❑ Forex arbitrage eliminated by playing in common
IND BAN
currency- “ZO Coins” Feature Nuances:
❑ Leader board is maintained by country & also ❑ Incentive to visit app everyday to continue
at overall level playing till event ends
❑ Game Matchmaking to take care of player ❑ After every major stage, a bonus game is activated
levels to ensure ~50% win probability ❑ Users can collect bonus ZO coins in their wallet & win big P1

Evaluation metrics: ❑ Bonus game can be used as a promotional tool on social P2 P1

media to appeal to a wider audience
P3
❑ Daily Active Users P3

❑ HEART metrics P4

❑ Avg. games ❑ Fixed duration events for game genres (similar games in 1 event)
P5
played / user ❑ Knock-out based format for one grand winner
P6
❑ Fixed entry fee for all final prize high value item like Car
❑ Entry closes as the first match starts to maintain exclusivity

Game Co. Olympics: Duration based tournaments for grand prizes

Note: HEART metrics refer to Happiness, Engagement, Adoption, Retention and Task Success
Source: Gaming Spotlight 2022; data.ai; IDC; Mobile Gaming Report, BCG & Sequoia 2021; Gamesindustry.biz
 Visualizing the Feature, Chalking out Customer Journey and
Determining an Evaluation methodology
Customer journey – Olympics feature Success evaluation of new feature

User lands on app – goes to Option of registering for / Rolling out feature to select
Olympics section resume playing Olympics user pool

Dropped

Selecting comparable
Olympics events listed by How to Play, Leader board,
samples
game genres & duration Offers section visible on top

Modified feature rollout to new

sample (increase %)
Evaluating the performance
User chooses Olympics Knockout chart visible – metric for both sample sets
event and enters current stage highlighted

Dropped
Assessing impact on core
feature set and usage
User starts playing game – Play button open at a point
advances rounds of time / for 24 hrs duration

Dropped
Calculating the delta
ZO coins get accumulated; Ultimate Winner announced:
event ends on fixed date Grand Prize awarded
Taking feedback &
User exits app or goes to incorporate modifications
other Olympics event /game
Decision
points
Source: Gaming Spotlight 2022; data.ai; IDC; Mobile Gaming Report, BCG & Sequoia 2021; Gamesindustry.biz
 Broader Focus Going Forward: New Games, and Other content
Catering to Next Generation of Users
Modifications to the Platform Potential Additions to Game Portfolio Newer Content and Way Forward

Onboarding multiple languages Enter NFTs, collectibles Market

Tap into high value low volume market of
❑ Leverage Android RTL feature to build capabilities of RACING NFTs – tie up with
onboarding local languages in the future
Blockchain / Web3 offerings
❑ Urdu can be first in order of priority for inclusion – will have
Leverage recent acquisitions to enter
the maximum impact on target markets
SPORTS emerging segments of future market

Improve Accessibility features Identify new complementor industries

Explore possibilities of combined offerings
with luxury, music, etc.
❑ Accessibility measures using TalkBack from Android can BOARD
be improved for promoting inclusivity
Target Gen Z / Gen Alpha
❑ Can be positioned as a Socially responsible and Diversity Shift customer focus to new generation to
& Inclusion focused initiative gathering market visibility build a sustaining user base for next 15-20
CARD & CASINO years

Market Impact Customized Ads

New Segment Existing Expansion Deploy AI and ML tech to customize ads at
BREAK- game & region level without being obtrusive
Disruptive New Market CASUAL
THROUGH Entry Customers share
Product Changes

growth Interactive experiences

PLATFORM
Try games with different paths based on user
ACTION & choices at key junctures
New Core ADVENTURE

Next Gen
India Launch Pioneer hosting tech
DERIVATIVES
Minimize app crashes & bugs to deliver
Additions & International seamless experience
Enhancements Expansion STRATEGY

Source: Gaming Spotlight 2022; data.ai; IDC; Mobile Gaming Report, BCG & Sequoia 2021; Gamesindustry.biz