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Page 1: John Smedley Presentation

GDC 2010How Games-as-a-Service & Virtual Items Have

Changed the Playbook Forever

John SmedleyPresident, Sony Online Entertainment

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EverQuest and EverQuest II In-game Marketplace and Virtual

Item Sales added to SOE’s Top Two MMOs in December 2008• Over 60% of EQ & EQ II subscribers have purchased

virtual items from the in-game Marketplace

• Over 325 unique items available for purchase

• Over 560,000 virtual items purchased LTD

• Additional dedicated development resources support evolving business model

• Items & Character Services improve player experience

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EverQuest Marketplace

Dedicated Marketplace Tab on Welcome Screen

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EverQuest MarketplaceItem preview with description and all details

Marketplace look and feel consistent with traditional EQ UI

Add funds to your Wallet directly in-game

Search Functionality & Item Categories

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EverQuest II Marketplace

Dedicated placement in Welcome Screen with current Wallet Balance

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EverQuest II Marketplace

Item preview includes item description and all details

Items organized/catalogued by category and type

Marketplace look and feel consistent with traditional EQ II UI

Add funds to your Wallet directly in-game

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Free Realms Free-2-Play 3D Virtual World

Launched in April 2009 for Kids and Tweens • 9 million registered users in less than a year

• Over 1,000 unique items available for purchase

• Hybrid business model includes Membership, Virtual Item Commerce, and Advertising

• Over 3 million virtual items purchased LTD

• Robust cross-functional commerce team manages day-to-day item commerce, membership & game offerings

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Free Realms MarketplaceWebsite gateway to game world

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Free Realms MarketplaceCustomized pre-game loading screens feature rotating content offers, promotions & advertisements

POSA retail cards available at top retailers

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Free Realms MarketplaceFeature all-new virtual item content with dedicated loading screens

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Free Realms MarketplaceNew player splash screen with 250 SC bonus

Membership upgrade button

Players introduced to virtual item categories upon entry

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Free Realms Marketplace

Membership splash screen upon entry

Game content, items and discounts promote Membership benefits

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Free Realms Marketplace

Detailed daily Welcome Screen features:

- What’s New- Friends- New Content- Virtual Items- Activities- Daily spin rewards- Add SC funds option

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Free Realms Marketplace

Marketplace integrated into UI (seamlessly)

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Free Realms Marketplace

Additional commerce UI built into game content

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Free Realms MarketplaceItem of the Day Feature

All commerce points lead to main Marketplace Storefront

Membership up-sell

Top Sellers

Item organization by categories

Redeem game codes and retail POSA cards directly in-game

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Free Realms MarketplaceActive SC Marketplace

Funding directly in-game

Search functionality

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Free Realms MarketplaceSix funding options to purchase SC

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Free Realms Marketplace

Simple credit card account form with secure authentication

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Free Realms MarketplaceEasy to understand code redemption

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Free Realms Marketplace

Membership option available directly in-game

Use Credit Card or SC for Membership purchase

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Free Realms MarketplaceHighly detailed virtual item listings

Wallet balance, Add funds

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Free Realms MarketplaceRobust item preview feature…

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Free Realms Marketplace

…showcases item directly on character in-game

Commerce window stays active for instant point-of-sale

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Free Realms Marketplace

SC icons denote virtual items for purchase

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Free Realms Marketplace

Virtual item commerce presented by NPCs

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Free Realms Marketplace

SC icon with NPC merchant opens Marketplace

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Free Realms Marketplace

Merchant takes you directly to specific virtual item for purchase

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Free Realms Marketplace

Web-based functionality includes:-Redeem-A-Code- Where to buy game cards- Fund Wallet option

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Free Realms Marketplace

Purchase SC via secure website or redeem retail POSA card

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Pox Nora Multiplayer Online Game That

Combines a CCG With Turn-based Strategy in a Fantasy Setting• Pox Nora added to SOE’s suite of games in January

2009

• Live Gamer Marketplace integrated in February 2010

• Over 55 unique items for purchase including Packs, Avatars, Campaigns and Game Tokens

• Station Cash and your Universal SOE Wallet can be used for all applicable SOE games (EQ, EQ II, FR, and Pox Nora)

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POX NORA Marketplace

Web-based Marketplace for the purchase of virtual items

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POX NORA Marketplace

Main Marketplace Page Features:- Universal Wallet balance- Add funds option- Item categories- Detailed item offerings

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POX NORA Marketplace

Pop up window details item, description, price and affordability

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POX NORA Marketplace

Multiple funding options include Credit Card, Retail SC Cards and PayPal

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POX NORA Marketplace

Seamless integration with PayPal payment provider

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POX NORA Marketplace

Station Cash secure funding purchase via PayPal in under 30 seconds

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POX NORA Marketplace

Credit Card purchase method with stored payment option and simplified account form

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POX NORA Marketplace

Multiple Credit Cards can be stored for future payment purchases

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POX NORA Marketplace

Click to buy items using Station Cash in your Wallet

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POX NORA MarketplaceVirtual item purchased in less than 5 seconds