1. Kongregate Company Overview
Q2
2013

2. 2
GameStop Company Background
GameStop
Corp.
• Headquarters:
Grapevine,
TX
• Fortune
300
company
(NYSE:
GME).
World’s
largest
video
game
retailer
with
2011
revenues
of
about
$10
billion
• Recognized
as
a
top
35
digital
media
company
and
17th
most
powerful
brand
in
the
U.S.
• CompeTTve
differenTaTon
in
customer
connecTvity
and
service,
merchandise
mix;
material
advantages
in
used
games
• MulT-­‐channel
strategy
to
address
exisTng
and
new
forms
of
game
distribuTon
and
moneTzaTon

3. 3
GameStop’s Multi Channel Strategy
• 6,600+
stores
in
17
countries
with
over
500
million
visitors
per
year
• 35%
market
share
driven
by
knowledgeable
gaming
associates
and
“buy,
sell,
trade”
model
• World’s
largest
retailer
of
game
products
&
services
• Kongregate.com:
Largest
social
game
plaForm
for
core
gamers
• Impulse:
Digital
download
plaForm
for
core
PC
games
• Spawn
Labs:
Streaming
plaForm
for
AAA
games
• Detailed
purchase
informaLon
on
21
million+
PowerUp
Reward
members.
Members
consLtute
65%+
of
GameStop’s
U.S.
sales
• Largest
U.S.
video
game
magazine
–
Game
Informer
(4th
largest
U.S.
magazine
overall)
• 50
million+
monthly
uniques
across
the
GameStop
Digital
Network,
including
two
of
the
fastest
growing
video
game
websites
(GameStop.com,
GameInformer.com
and
Kongregate)
We
bring
together
an
unparalled
combina3on
of
retail
and
digital
assets
that
are
built
upon
a
founda3on
of
massive
reach
and
deep
loyalty
Retail
Footprint
Digital
Distribu3on
Reach
and
Loyalty

4. 4
GameStop’s Multi Channel Strategy
Leveraging
the
strength
of
GameStop’s
network
to
drive
traffic
&
engagement
Social
Media
GameStop.com
and
Kongregate.com
Email
In
Store
GameInformer
Employee
Engagement

5. 5
Kongregate Company Introduction
Kongregate
offers
turnkey
social
gaming
for
partners
and
core
gaming
audience:
• Community:
16M
monthly
uniques
with
high
engagement
and
Xbox-­‐style
achievements
(220M
earned
to
date)
• Content:
World’s
largest
collecLon
of
Flash
and
social
games
• CuraMon:
Address
discoverability
through
staff
experts,
social
integraLons,
raLngs
and
recommendaLon
engine
• MoneMzaMon:
PlaForm
level
virtual
currency
“Kreds”
with
global
payments
support.
Integrated
with
GameStop
PowerUp
Rewards
program
Unlike
Facebook,
there
are
no
out-­‐of-­‐pocket
customer
acquisi3on
expenses
for
games
on
Kongregate

6. 6
More about Kongregate…
Hardcore
gaming
audience
• 85%
Male,
Average
Age
21
• Index
very
high
for
console,
PC
Gaming
• 67%
of
users
play
daily
• Driven
by
achievements
(1M+
badges/wk)
• 85%+
of
users
already
have
Unity
installed
Game
discovery
• Tons
of
content,
raLngs
&
recommendaLons
to
surface
the
best
games
Deep
community
&
social
features:
• Profiles,
Points,
Levels,
Achievements,
• Friends,
Chat,
Comments,
Forums,
etc.
Time
Magazine
Top
50
Website
of
2010
Demographics
Why
Gamers
Love
Kongregate…

7. 7
The Opportunity with Kongregate
§
Reach
Millions
of
Core
Gamers
– Top
games
generate
40M+
game
plays
§ Superior
Mone3za3on
over
Facebook
– Kongregate
users
moneTze
at
rates
much
greater
than
FB,
generally
2-­‐3x
ARPU
– Some
cases
of
5-­‐7x
ARPU
on
Kongregate
vs
FB
§
No-­‐cost,
Turnkey
Promo3on
across
both
Kongregate
and
GameStop
– Developers
have
the
opportunity
to
leverage
the
full
promoTonal
and
discovery
resources
of
Kongregate
and
GameStop
with
no
out-­‐of-­‐pocket
expenses
– Combines
huge
scale
and
targeTng
with
both
online
and
offline
promoTon
§
Easy
Integra3on
–
2-­‐3
days
integraTon
work
for
exisTng
Facebook
games
“We have had our game on Addicting Games,
Spil Games, and BigPoint, amongst others, and
Kongregate’s revenue per user constantly
hammers them. It’s not even close.”
-- Derek Day, Developer, Sacred Seasons 2

8. 8
Some of Kongregate’s Existing Developer Partners

9. 9
Select Games

10. 10
Developer Testimonials
Pueng
our
games
on
Kongregate
has
been
one
of
the
best
decisions
we've
made
in
our
publishing
business.
With
Kong's
massive
user-­‐base
of
hardcore,
loyal
gamers,
we've
witnessed
retenTon
and
moneTzaTon
numbers
2-­‐3x
those
of
other
plagorms.
IntegraTon
is
quick
and
simple,
and
the
Kongregate
team
is
awesome
to
work
with.
-­‐
Jared
Psigoda,
CEO,
Reality
Squared
Games
(Crystal
Saga,
Wartune)
Kongregate
has
become
a
great
publishing
partner
with
IGG.
Kongregate.com's
great
adverLsing
flexibility
(no
cost,
no
obligaLon),
2x
ARPU
than
the
closest
compeLtor,
together
with
significant
amount
of
seasoned
players
make
the
PlaForm
a
stand-­‐out
from
the
cloud
for
publishing
top
quality
games!
An
experienced
Kongregate
team
also
makes
the
integraLon
seamless.
IGG
is
looking
forward
to
publishing
all
major
Ltles
on
Kongregate
in
the
near
future.
-­‐
Mark
Zhang,
CTO,
IGG
(Galaxy
Online
2,
Wings
of
DesMny,
Dawn
of
Darkness)
Working
with
Kongregate
to
bring
Outernauts
to
their
plagorm
has
been
a
fantasTc
experience
for
Insomniac.
Kongregate’s
community
is
passionate
and
a
pleasure
to
interact
with,
while
their
staff
has
demonstrated
experTse
and
provided
Tmely
recommendaTons
that
have
helped
us
constantly
improve
the
overall
game
experience.
Moreover,
Kongregate
brought
in
a
lot
of
players
at
no
cost
to
us
and
given
the
steep
cost
of
new
player
acquisiTon
for
other
plagorms
on
the
web,
this
has
been
a
criTcal
part
of
making
Outernauts
a
success.
-­‐
Ted
Price,
Founder
and
CEO,
Insomniac
Games
(Outernauts)
Through
Kongregate
we
were
able
to
connect
with
a
large
group
of
dedicated
players
that
we
wouldn't
have
been
able
to
reach
otherwise.
Kongregate
is
a
fantasTc
partner
and
does
an
amazing
job
supporTng
and
promoTng
games.”
-­‐
Aron
Koh,
Execu3ve
Producer
at
Nexon
(The
Grinns
Tale,
Cloudstone)

11. 11
Kongregate Standard Partner Program
§ At
a
70
/
30
revenue
share,
Kongregate
provides:
– IniTal
launch
promoTon
of
at
least
5M
spotlights
ads
on
site
– Front
page
promoTon
in
the
Hot
New
Games
secTon
(requires
a
3.75
avg.
game
raTng)
– ConsideraTon
for
permanent
site
badges
(requires
a
3.85
avg.
game
raTng)
§ Standard
Partner
Program
is
the
star3ng
point
for
all
developers
on
Kongregate

12. 12
Kongregate Premier Partner Program
§ If
a
game
is
performing
well,
the
developer
is
invited
to
join
Kongregate’s
Premier
Partner
Program
§ Substan3al
benefits
for
Developers
over
Kongregate
Standard
Program
– ConTnued
onsite
spotlight
ads
of
5M-­‐10M
impressions
each
month
– Homepage
features
for
major
expansions
(~every
6
weeks)
– Outbound
messages
(game
updates,
special
events)
to
exisTng
players
and
relapse
players
– Inclusion
in
Kongregate
weekly
newslemers
– Facebook
and
Twimer
posts
– Special
challenges
to
earn
exclusive
items
or
currency
– Paid
off-­‐site
adverTsing
to
drive
new
players
to
the
game
– PotenTal
access
to
GameStop
online
and
retail
markeTng
channels
§ Kongregate
covers
all
marke3ng-­‐related
hard
costs
as
well
as
the
considerable
sod
costs
of
GameStop
retail
promo3ons,
etc.
§ Under
Premier
Program,
revenue
share
adjusts
to
50
/
50
to
reflect
the
added
benefits
and
increased
costs
to
Kongregate

13. 13
Kongregate Premier Partner Program (cont)
§ Select
Premier
Partners
may
also
qualify
for
GameStop-­‐specific
marke3ng
opportuni3es
– Examples
include
in-­‐store
and
GameStop.com
promoTons,
email
and
FB
posts
In-­‐store
sweepstakes
and
other
promoLons
Emails
to
GameStop
database
(21M+
members)
Social
shares
(5.5M+
Facebook
fans
,
270k
Twiler
followers)
Features
on
GameStop.com
(21M+
monthly
uniques)
GameStop
TV
Features
Major
Game
Launch
Tie-­‐Ins

14. 14
Premier Program: GameStop Marketing Vehicles
Retail/In-­‐Store
GameStop.com
§ Placement:
POSA
card
rack,
POS
impulse
rack,
Shelnalkers,
Countercard
§ GameStop
TV:
Consumer-­‐facing
promo
segments
§ Associates:
Trial,
advocacy,
sales
incenTve
contests
§ Freq
/
Reach:
3
wk
Mktg.
kit,
10M+
customers
§ Online
promoTon
placement:
Home
page
rectangular
rotaTng
banner,
Landing
page
with
call-­‐out
banner
§ Frequency:
30-­‐day
placement
§ Reach:
17M+
monthly
uniques
PowerUp
§ Email
and
Direct
Mktg
Programs:
Weekly
ad
email
inclusion,
targeted
email,
e-­‐summary
banner
§ Site
placement:
Dashboard
msgs,
Carousel
banner
§ Reach:
5-­‐21M
targeted
customer
contacts
Social
Media
§ Facebook
messaging
§ Wall
Posts
§ Twimer
integraTon
§ Sponsored
tweets
§ Reach:
Over
5.5M
Facebook
fans;
over
270K
Twimer
followers

15. 15
Case Study – War Metal: Tyrant
§ Collec3ble
card
game
developed
by
Synapse
Games
– Launched
Feb
2011
34M+
plays
since
launch
– User
purchase
rate
of
over
2%
2x
ARPU
on
Kongregate
vs.
Facebook
§
Major
in-­‐store
GameStop
promo3on
August
2011
– Tyrant
featured
in
4,300
GameStop
stores
– Physical
cards
handed
out
to
customers,
$10,000
contest
to
encourage
gamers
to
try
Tyrant,
employee
incenTve
contest
to
inform
customers
about
Tyrant…
Kongregate
has
absolutely
become
a
central
part
of
our
social
gaming
strategy.
Their
extremely
loyal
userbase
combined
with
free
distribuTon
makes
an
incredible
combinaTon
for
developers,
and
drives
almost
twice
the
moneTzaTon
we
see
on
Facebook.
-- Alex Reeve, CEO, Synapse Games

16. 16
Case Study – Dream World
Turned-­‐based
MMO
developed
by
Playmage
Games
• Launched
Jan
2010
on
Kongregate
• 20M+
gameplays
and
conTnued
growth
(even
aner
2
years)
Higher
per-­‐user
mone3za3on
on
Kongregate
vs
Facebook
• 2x
ARPU
• 3x
ARPPU
User
and
Revenue
Growth
Kongregate
vs.
Facebook

17. 17
• Integrate
APIs
• ~2
days
of
eng.
work
Integra3on
• QA
TesTng
• Submit
game
Pre-­‐Launch
• Spotlight
ads
• Gather
performance
data
• Deliver
recommendaTons
to
maximize
raTng,
retenTon
and
moneTzaTon
Game
Launch
• Hot
New
Games
lisTng
• Featured
Games
promo
• Ongoing
opTmizaTon
Marke3ng
• Homepage
features
of
new
content
• Newslemer
• Media
Buys
• Badges/
Achievements
Ongoing
Kongregate
Promo3on
• Go
Big
Promo
Gamestop
Promo3on
Developer Engagement Process
Kongregate
works
closely
with
developers
throughout
the
en3re
process
to
maximize
user
engagement
and
mone3za3on
– Total
pre-­‐launch
development
Tme
typically
2-­‐3
days
of
one
engineer’s
Tme
Kongregate
Premier
Partner
Program
“Integrating Dream World with Kongregate’s
platform was very easy and took no more
than couple days of work.”
-- William Ren, CEO, Playmage Games

18. 18
Kongregate Developer and Integration Tools
• StaMsMcs:
A
simple
API
that
allows
submission
of
player
progress
and
high
scores.
On
site
leaderboards
enables
Kongregate
to
put
achievements
on
a
game
and
promote
it
• Kreds:
To
accept
payments
within
a
game,
Kongregate
has
an
API
that
enables
the
use
of
Kreds
for
purchases.
• AuthenMcaMon:
Allows
validaTon
of
a
logged-­‐in
Kongregate
user
(via
a
server-­‐side
call)
to
get
them
into
your
game
enTrely
behind
the
scenes.
• IntegraTng
a
game
from
Facebook
to
Kongregate
is
a
quick
and
simple
process
• Kongregate
maintains
KompaMble,
an
open
source
project
that
acts
as
an
abstracTon
layer
to
manage
a
single
code
base
for
a
game
on
Facebook
and
Kongregate
plagorms
• Kongregate
also
helps
developers
opTmize
social
differences
with
Facebook
• For
instance,
while
Kongregate
players
are
highly
social,
they
communicate
in
different
ways
(game-­‐
specific
chatrooms,
forums,
etc.)
from
Facebook.
A
few
of
Kongregate’s
APIs…
Integra3on
Learn
more
on
dev.kongregate.com

19. 19
Get Your Games on Kongregate
§ Reach
Millions
of
Core
Gamers
§ Easy
Integra3on
§ Earn
More
§ Contact:
david@kongregate.com