Microsoft says three business models

• Topic: Diversity of Business Models: Success Strategies in Evolving Game Market

• Lecturer: Chris Lee-Microsoft Gaming Eco System Marketing Strategy Manager

• Field: Platform, Game Business Model

• Time: 2022.11.17 (Thu) 15:00 ~ 15:50

• Summary: Introducing Microsoft's Eco System, the performance trends, genres, and content categories of the game in three business models, free to play / subscription / premium game. See.

■ Our goal is -Take a success world and succeed worldwide.

Hello. I would like to say thank you for G-Star and the organizers who made it possible to talk to you today. It's great to come here. Over the past few years, it's a pandemic in a kind of digital isolation. I missed you coming to G-star. If you have one message you must know after my presentation is, we want to be a partner for more and more Korean gamers and developers. I'm here because we want to create more and better content.

I will introduce myself briefly. Furthermore, I am Chris Lee. Furthermore, I am the general manager of Microsoft Gaming Eco System Marketing Strategy. It looks a bit complicated, but observes third-party marketing and sees our game investment. We work with the Game Crater Team to attract more creators to our ecosystem. I enjoyed working in the global entertainment brand in the past. I worked at EA and worked with Korean game companies. In NC Soft and Craft T1. Perhaps because of the blood of Koreans in my blood vessels. I am sincerely passionate about helping your success, bringing your games to achieve global success.

And today I will guide you through the presentation. This is a bit of how we are working. It's a bit boring to talk about the figures related to the platform, but I'll try to make it fun.

Our goal today is that more Korean creators find success on our platform. It gives power to it. I will tell you a little about the platform. We experienced special things in the 2021 Holiday season. The Xbox Series X has become the next generation console. More than 1 billion endpoints of cloud connections and more than 1 billion endpoints of PCs are combined. And very active gamers joined the Xbox game pass. You are building something we think of as a really healthy ecosystem. I will share more information.

■ The ecosystem is growing -6 times more dogs, 16 times more games

We have six times more developers in our ecosystem compared to 2013 and 2022, developing and launching games. And the number of games released was increased 16 times. This ecosystem plays a role in helping players find their favorite games and the next game. And all of this is for developers who are already on the platform. And I will also tell you a little information for developers who want to use the platform.

First, multiple choice questions. First, it's about creating a platform where you can play games with people who want all the devices you want. Are you just approaching new fans by expanding to new markets and expanding access? Or? Is it a flexible partnership condition with the region and the global team? We just want to reverse the platform where people can play games on any device wherever they are with anyone.

We are very interested in expanding to new markets and increasing accessibility. So all gamers are welcome despite any constraints. We have a local team. We are connecting with what we are building and various communities around the world. A wonderful woman named Agnes Kim is leading the team. It is based on the United States, but I often go on a business trip. She is strongly supported by Microsoft employees with excellent talent.

We have some options to build our strategy. The first is to participate in game events such as G-Star Indie Game Festival and Play Expo. We are advertising a continuous gaming ecosystem about how to come to our platform.

The second is the game event we host. The Xbox Game Camp will be held in a few weeks, constructs E2E, game design patterns and reusable programs on basic game development, and shares the technology and outline information used in AAA Studios. There are also lectures on creating a game from a gamer's point of view, design principles, game development processes for X-cloud, and Unreal Engine. These are collaborated with various domestic game organizations. The Xbox Game Camp was with the Gyeonggi Content Agency.

There is a lot of interest in Neo wiz's P's lies. With the success of Elden Ring and Senior, Soul Like's game is now the main stream genre. He has won the most award in history, and he has highlighted the event. This was a lot of publicity at the Xbox booth. To this end, we have worked closely with Neo wiz. In addition to the event, I made a lot of effort. Support for game developers.

■ Three Business Models -Free to Play, Premium, Game Pass

Let's talk about the business model. The first is a free-to-play business model. The profit growth rate of the free-to-play model has increased seven times over five years. The number of users has doubled. Gamers with a lot of devotion to the game. These people spend a lot of time for the game. And we are trying to give developers as much as possible when we release these games.

There is an Xbox puck program. More than 50 million people who have received digital items with the Xbox puck program. We want to collaborate with developers to give more and more valuable items. If you're thinking about launching an Xbox game, please think about this program.

The second is a premium. The premium business model has grown 12% over the past two years. The content was of course great, but the platform was good. Developers can continue these profits through DLC, expansion packs, and add-ons. The premium model is so stable that I don't need any more explanation.

The third is the game pass model. We provide gamers with a catalog that is curated with the Xbox game pass. There are so many games, but if you are included in this catalog, you will be more noticeable. Subscribe models have realistic risks. In addition to the game, there are various entertainment. There are nine average of subscription services per general household. Perhaps half of here will not know what you subscribed to. 25 are connected per average of furniture. I think it's about $300 per household. There are about 10,000 new games a year, and 30 games are released every day. It is a very competitive market, and there are many alternatives.

In addition, the game pass can increase the reach rate that can reach your game. Especially if it's a new IP. Game pass players are willing to invest for new games. In other words, they are the most profitable opportunities. We take about 50% more for games, add-ons and items. It is likely to be profitable. It is very difficult to make people who are highly participating, but the subscribed model, the game pass, can be very effective. In addition, if there is a previous work in the game pass, 25%of them pre-book the sequel. Those who are willing to invest in experience. They also mean that they are likely to choose a premium edition, not standard editions.

We have a very high quality of this catalog. The game pass already has more than 60 GOT titles. I hope Korean developers will release more games on our platform. We hope that Korean games will appear more often on the screen called Got Game in the game pass. We want more power to developers. If you want to start cloud gaming there, I would like to introduce a program called@Azure. If you first create a cloud game, I recommend you to experience it. We have a supporter team, so we can help you. The content to be presented is here. I hope you will be able to have a deep relationship with Korean gamers and developers.