Lessons from the China Launch of Plants vs. Zombies 2

Leo Liu GM, EA Mobile/PopCap China The Biggest Mobile Market Opportunity is Asia

2014 2014 $3.9Bn $5.2Bn

2014 $12.6Bn By 2017 ASIA 56% WEST 44% Asia is # 1 Mobile game market

#1 #3 #2

#2 #4 China Market Size

$5,000 180.00% 160.87% $4,500 160.00% $4,000 140.00% $3,500 120.00% $3,000 104.20% 100.00% $2,500 80.00% $2,000 60.00% $1,500

42.96% 40.00% Millions of US$ of Millions

$1,000 Rate Growth YoY $500 20.00% $- 0.00% 2012 2013 2014e 2015e Mobile Games Revenues(US$m) YoY Growth Rate China Market Highlight

• China market is different.

• $3 Billion Dollar Market Still experiencing rapid growth.

• Local Companies and Games: Market dominated by TCG and ARPG games, developed by local companies.

• Android Users Generate Over 60% of Revenue. iOS users have higher ARPU and retention, but Android distribution channels are massive. Platform and Channel Segmentation

iOS Android ( Non WeChat ) WeChat

Others 10%

Carriers 7% 3% 360 Ucweb 37% Jail broken AppStore 3% iOS, 43% 41% 59% 3% Android, 57% Anzhi 4%

Wandoujia 91 5% 12% Baidu 16%

33% 43.8% 23.2%

PVZ 2 Timeline

Global iOS China iOS China Android Chinese Kung Soft Launch Launch Launch Fu World Launch 7/9/2013 8/1/2013 9/12/2013 1/23/2014 China Market Reaction

2 Hours First Pirate Version

24 Hours First Crack Version

ANZ version 5 Days 6,000,000+ Downloads Global iOS Soft Launch 7/9/2013 China Is the Brand’s Big Market But, China Users Are Monetized Differently

Discrepancy in Pay Rates

=1/87th Ex-China Users China Users Local Adaptation 3 Star Level higher difficulties with better rewards

Result Driven Unlock Plants by collecting piece

Fast Content Consumption Game Economy Loop hard currency

China Users 3 Stars Level Unlocking Plants Hard Currency Hard Currency

• Sun • Coins • Plant Pieces • Star Gates • Key Gates • Plant Food • Gestures China iOS Launch No. 1

Image Top Free needed Top Grossing

8/1/2013 But… The iOS rating Dropped from 5 to 2! Why? We were Late… Don’t upgrade or your will lose your cheating archive！ Rating attack Back to 4 Star Rating ! And… 1,000,000 installs PvZ 1 = 1 Year PvZ 2 iOS = 1 Day PvZ 2 Android China < 1 hour

China Android 9/12/2013 Launch Device Fragmentation

First launch 24 app stores on 9/12 600+APKs DeviceCompatibility Fragmentation & Adaptation Top10 Covers 18.9%

Xiaomi MI 2S Xiaomi 2013022 GT-I9300 samsung GT-N7100 Xiaomi MI 2SC samsung GT-I9500 Other Xiaomi MI 2A Devices Xiaomi MI 1S Others There are300 + third-party Android channels in China “AAA quality is meaningless if it can’t reach the players”

Install vs Download (Android, China)

50MB 80% Android APK size = 32MB 100MB 65% Running memory < 80MB 300MB 30% 500MB 15% Local Billing

• Uses SMS payments • No login needed Yar! Only 2 Clicks • No password needed Automated Build Process and QA Testing Kung Fu World Launch

Kung Fu World Launch

1/23/2014

Local Content Local Content

Local Content Local Content Local Content Games Played

Egypt Pirate Cowboy Kung Fu Actually… Millions of Lessons

Corporate Production How To Holidays Platforms Structure Structure Hire

Build Data Partner MTX Analytics Complexity Package Relations Design

Localization Merchandise Vs Security Patience Business Adaptation Skillsets Most Important

I don’t like questions. Thank you [email protected]