CONSOLE GAMES State of the Business and Opportunities in Advertising

1. CONSOLE GAMES
State of the Business and Opportunities in Advertising
David Merzel
Country Manager
Entertainment & Device
Microsoft BeLux
Blog : davidmerzel.wordpress.com

2. Consumer (R)evolution
Personalized
Anywhere,
Anytime
Pre-PC Era PC Era Internet Era Consumer
(1980) (1995) (2000) Era
(Today+) Informed
Choice
Connected

3. Facebook:
100M
9 months
iPod Interne TV Radio
3 years t 13 38 years
4 years years
50
45
40
MILLIONS OF USERS
35
30
25
20
15
10
5

4. Seismic Shift calling for New Marketing
Broadcast
> Interactive
Single platform
> Multiple Media Platforms
Publisher Timetable
> My Timetable
Passive
> Engaged
Mass
> Targeted
Interrupt
> Relevant
Advertiser Control
> Consumer Control
30 Seconds
> Extended time

10. Trends Evolution
Timeline 1960-2010
Van de sociale Door de Aan het sociaal
status individualisatie spel
1960 1970 1980 1990 2000 2010
Kerngezin Kerngezin / Actieve Erkenning van Het nieuw Open sociale
Mei 68 vrouwen/ de postmoderne samengesteld kring
Familles Nieuwe vaders familie gezin
Gezelschap- Gezelschapss Nintendo Internet Consoles next- 3D
sspellen pellen Actiefiguren Playstation gen Sociale netwerken
Spellen per Spellen per VHS PC Toegevoegde
genre genre Walkman Mobile phone realiteit
Play (Barbie) Scherm-
Televisie thuis generatie
Voorberei- Een Een uitlaatklep Een inwijdende Een middel tot Een manier van
ding op het weerspie- Een leefwereld zelfontwikkeling communiceren
volwassen geling aggressievere Een heel tot Een familiale
leven van het leefwereld mannelijke perfectionisering hobby
standpunt van leefwereld Een gemengde
de ouders leefwereld 10

11. Total Belgian Entertainment Market 2009
Consumer spending in million units: -2.1% (2009 vs. 2008)
Consumer spending in million value: -4.8% (2009 vs. 2008)
60 700
646
615
600
50 610
551
531 500
40
400
Vaule
Units
Units
30
Value
300
20
45 45 44
200
40 39
10
100
0 0
Bron: GfK / BEA
2005 2006 2007 2008 2009

12. Breakdown Belgian Entertainment Market 2009
Consumer spending in turnover %
700 Games
Music
600
Video
500
28 % 32 % 38 % 37 %
26 %
400
300 35 % 32 % 29 % 25 % 26 %
200
39 % 40 % 39 % 37 % 37 %
100
0
2005 2006 2007 2008 2009
Bron: GfK / BEA
Belgische entertainment 12

13. Gaming has evolved into a major entertainment player

14. Who’s playing - it’s just a niche group....right?

15. CHANGE THE WAY PEOPLE SEE
GAMING & ENTERTAINMENT

16. 16
CAPTURE A BROADER CASUAL GAMING
AUDIENCE

17. 17
WITHOUT LOSING OUR CORE

18. Fantastic opportunities for marketers
Great for An immersive, Social, Drive a
reaching engaging connected broad range
young males, medium entertainment of marketing
teens & females goals, from
awareness, to
trial and
purchase

19. Microsoft Interactive Entertainment
A broad commitment across the spectrum

20. Microsoft Interactive Entertainment
A broad commitment across the spectrum

21. Microsoft Interactive Entertainment
A broad commitment across the spectrum

22. Windows LIVE Messenger games
High
Over 16 million interactive High number of
Messenger Game click through game-plays for
unique users across rates on ads commercial games
EMEA and in-game

23. Coke plays the brand love game
Objective:
1. Determine your audience
• To build ‘brand love’ among
16-19 year olds e.g. scoring
an average of 7.5 out of
10 for statements inc. ‘Coke is
a brand I love’
Solution:
1. Determine your audience
• Teen consumers were invited to
Digital platforms drive Brand Love for 16-19s participate in the Happiness
Increased agreement with Brand Love statements
Factory through social media and
0.127 gaming– using branded Windows
Live Messenger Game and Xbox
Live Dashboard with downloads
Results:
1. Determine your audience
0.035 • Impact on ‘brand love’ over 7
0.024 times that of TV
0.017 0.012 • Over 915k game plays through
Radio
0.003 Promo Windows Live Messenger
Windows Outdoor Xbox TV Coke Cinema • Xbox Live delivered over
Live Live Zone
Messenger -0.004 3.6m impressions
Game

25. Interactive Entertainment
get your brand on the stage
Great for reaching young males, teens and females
An immersive, engaging medium
It’s social, connected entertainment
It has impact, and gives your brand cut-through

26. Pushing the boundaries of
interactive entertainment

27. Kinect changes the way we see entertainment & games
Games
Interface/Entertainment
Recognizes: Movements, voices, facial expressions
Communication

28. Kinect : Key Features
Kinect changes the way we use entertainment &
games: you become the controller
o Full body motion control. Get of the couch and
play with your body, hands and feet, with family and
friends!
o Multimedia experience. Watch movies on demand
with Zune, chat with friends & family with the Kinect
video service all without a controller.
o Personalization. Kinect recognizes your facial
expression and connects you to all content by a
wave of your hand.
o Compatible with all XBOX 360 consoles

29. Kinect : Transforms
Game Social Entertainment

30. Kinect : 1st Party Launch Games

31. Kinect: 3rd Party games for launch window
• Varity of genres
• Dance
• Sports
• Racing
• Fitness
• Family
• Party

33. Thank you for your time
• David Merzel, dmerzel@microsoft.com
David Merzel
Country Manager
Entertainment & Device
Microsoft BeLux
Blog : davidmerzel.wordpress.com