Digital Interactive Symposium: Edinburgh
Business Models in Virtual Worlds
27 August 2010Andy Moseby, Corporate Partner
Recent activity
?
Lazard capital markets’ 2010 forecasts
Valuations
Valuation
Quantitative:
•Trading comparables
•Transaction comparables
•Discounted cashflow analysis
•LBO analysis
Qualitative:
•Proprietary technology
•Point of differentiation
•Breadth of service offering
•Market positioning
•Strength of management
Valuations: ability to monetise
Valuation
Quantitative:
•Trading comparables
•Transaction comparables
•Discounted cashflow analysis
•LBO analysis
Qualitative:
•Proprietary technology
•Point of differentiation
•Breadth of service offering
•Market positioning
•Strength of management
Evolution of revenue streams
Evolution of online revenue streams
Retail – “one off”•Boxed product•DLC•Digital distribution / Apps etc
Other•Data mining•Gambling
Back Offline•Merchandise•Associated products
Virtual Transactions•Virtual goods•P2P trading •UGC•Inviting Friends
Continued Payments•Subscription / VIP•“Lite” versions•Episodic gaming•PC baangs
Advertising•In-game•Around game•Sponsorship / games as ads
Evolution of online revenue streams
Retail – “one off”•Boxed product•DLC•Digital distribution / Apps etc
Other•Data mining•Gambling
Back Offline•Merchandise•Associated products
Virtual Transactions•Virtual goods•P2P trading •UGC•Inviting Friends
Continued Payments•Subscription / VIP•“Lite” versions•Episodic gaming•PC baangs
Advertising•In-game•Around game•Sponsorship / games as ads
Evolution of online revenue streams
Retail – “one off”•Boxed product•DLC•Digital distribution / Apps etc
Other•Data mining•Gambling
Back Offline•Merchandise•Associated products
Virtual Transactions•Virtual goods•P2P trading •UGC•Inviting Friends
Continued Payments•Subscription / VIP•“Lite” versions•Episodic gaming•PC baangs
Advertising•In-game•Around game•Sponsorship / games as ads
Evolution of online revenue streams
Retail – “one off”•Boxed product•DLC•Digital distribution / Apps etc
Other•Data mining•Gambling
Back Offline•Merchandise•Associated products
Virtual Transactions•Virtual goods•P2P trading •UGC•Inviting Friends
Continued Payments•Subscription / VIP•“Lite” versions•Episodic gaming•PC baangs
Advertising•In-game•Around game•Sponsorship / games as ads
Evolution of online revenue streams
Retail – “one off”•Boxed product•DLC•Digital distribution / Apps etc
Other•Data mining•Gambling
Back Offline•Merchandise•Associated products
Virtual Transactions•Virtual goods•P2P trading •UGC•Inviting Friends
Continued Payments•Subscription / VIP•“Lite” versions•Episodic gaming•PC baangs
Advertising•In-game•Around game•Sponsorship / games as ads
Lazard capital markets’ 2010 forecasts
Revenue model changes game design
Revenue model changes game design
Revenue model changes game design
Revenue model changes game design
All Image Credits: WikiMedia / Techcrunch / Wadsworth.com
Feel the width…
Activision
EA Nintendo
Sony THQ Take-Two
Console (retail)
Console (online)
PC (retail & digi)
Mobile
Hardcore MMOG
Casual MMOG/VW
Casual online
Social network
= Major investment = Some investment = Little/No investment
Source: Games Investor Consulting Limited
Feel the width…
Disney Viacom TimeWarner
News Corp NBCU Bertels
Console (retail)
Console (online)
PC (retail & digi)
Mobile
Hardcore MMOG
Casual MMOG/VW
Casual online
Social network
= Major investment = Some investment = Little/No investment
Source: Games Investor Consulting Limited
