Nutaku on adult games as a credible alternative for developers

[Music] hello everyone pleasure to be here today F Tremblay or Jean Francois I am the business development manager for a new taku we'll be talking about the adult gaming space as an alternative to putting your games out in a market that's that's untapped to be out you will look at some numbers look at some some past games past successes how can you take advantage of this new vertical within the space and how we do it and how we can be your partners and supporting you or dreams of being successful game developers so let us

start with a very very simple game definition by the ESRB adult games can be defined at explicit nudity or explicit sex scenes that's a period it's as simple as that from there it can take a thousand and one forms a thousand in one shapes but bottom line this is what an adult game is this a new thing is this a new thing in the market has sex for some strange reason appeared four years ago an otaku absolutely not let's go back in time for a bit choice of sex back in 1983 or somewhere like that a lot of you guys probably don't remember the existence of CDI or interactive CD made by a company well-known company called and they got into this space so it's not a new thing obviously can't go talking about the

history of sex and games without mentioning Leisure Suit Larry of course right we all know that guy a little more recent grand theft auto san andreas had a lot of adult content integrated into the game I think it was part of its success also because people are looking for it and even more recently The Witcher with very explicit sex content not as explicit as ours but for some mainstream content it was out there it was out there so it's not a new thing so let's talk about any of the market and how we kind of went from failures in the mainstream and unfortunately there's a lot more failures than successes in the mainstream world and in in the game development and game distribution less than 1% are actually financially successful or even viable and you probably know that better than anyone

being actors of this industry yourselves how do we so once again 1% successful 99% will fail we're at 100% now they're good once again let's go through that really fast so how do we how do we know that how he realized that so new taku was born super hippo a few a few years ago and we said hey this is a great space we want to make games there's there's a lot of successful game developers out there we are good developer of great ideas and of course we're going to develop a game that's going to revolutionize the gaming world and going to make us very successful publishers / developers so we invested a million dollar in development 11 pleat the game and we actually generated $400,000 of gross revenue we kind of

consider this as a fail so we said okay maybe we did a few things wrong we're gonna learn of course right because we're brilliant we're gonna learn about these form from these mistakes and we're gonna do it again so but we said a little you know we'll take smaller bites we went first six hundred thousand dollar development budget with an eight-month production timeline that one rated fifty thousand dollars in revenues we also consider this as a major fail so we said okay we it's hard to succeed in the mainstream we had an adult gaming or an adult entertainment background how about we create a platform dedicated to this type of content so how does it go along bottom line is whether you're in the mainstream world whether you're in there adults not because you put a sex scene in a game as a reward to the player that you're going

to be successful it starts with a great game first and foremost let's see how otaku were a four years later we'll see some numbers we'll give you some use cases we'll give you some examples of the games but globally speaking website traffic ranking by category in a global ranking of websites new Taku four years after its inception we Lonnie four years ago this February actually we will be celebrating our fourth year we're number 426 on the global rank 213 in u.s. number 34 in the adult space that's basilly tubes the the porn hubs youporn and other web sites of the nature and surprisingly enough we are number six in the gaming category so what does this tell us it definitely tells us that there's a there's adamant people are buying into it and we'll see some more numbers we are today very proud to say

that we are the largest adult free-to-play and premium game destined for adult obviously in the market or we believe we're a good alternative to the over over over could I add a few oversaturated market places whether it be a google play store whether it be steam with its thirty thousand titles whether it be Wes all the way are not present on iOS but bottom line is discoverability because it becomes the main issue for all you guys out there user acquisition budgets are skyrocketing cost of equity user acquisition is is is way too expensive for the type of revenues that most of the games can generate so it's a lose-lose situation you need massive cash flow to ensure user acquisition and discoverability but on the other hand your game is just one among hundreds of games out there

sorry so less than four years ago 1 million registered users July 2016 park emoji we tried our own crowdsourcing or crowdfunding platform it didn't work too well but hey we gave it a try December 2016 just a year later 5 million registered users not a bad growth huh just one year September 2017 we made an investment in Montreal so we are based in Montreal our headquarters are in Montreal we do have offices in Bucharest that handle all production localization keyless ting all that good stuff November 2017 10 million registered users we are happy to say this will be updated shortly the numbers the official numbers are coming out we are very very proud and excited - now you have a little over 20 million registered users as of December 2018 so

look at it this way November 2015 - no - December 2018 that's only a three year window we went from 1 million registered users to 20 million registered users where's that okay so what's that market like how do we monetize this is there money involved is there Revenue guys so currently we do 113 113 to 123 actually the official number for December is not 113 million visits but 123 million piece of information August 2018 we were hitting our first hundred million visitors so 25% of 23% growth in just under four months so it shows that there is a market out there our closest competitors when we can defy coup or DL cite DL SETI is probably the largest but it also offers other type of

of games or content fakku at 4.4 so basically we are Arch I think just our competition out there let's see how we compare to mainstream so still that 113 congregate has 22 point two million visits according to DL cite Miniclip is 21 million and going down your grounds at 16 ARMA games at 12 so once again we have 10 times the traffic of our games we have almost six times the traffic of congregate so yeah there's a market out there people want this type of content and okay how do we grow that's the timeline as far as our game offering so we're currently at 250 games which means that if you have a game on new taku whether you go through the publishing our murió tribution you are one of 250 not one of 30,000 so we

believe this resolves the discoverability issue with 20 million plus registered players visiting the site regularly on insists your game is has the chance to be on that on that top 10 leaderboard we're forecasting another 50 to 75 games in 2019 so how much did we invest we started by licensing out and just porting out Asian games it was the simplest way it was the fastest way to generate content and to populate the platform but for the last few years with Chrisman fund we've been very active on it I have a team of eight bizdev working with teams such as yours to identify great games that we can actually we can actually fund ensure distribution so we funded 32 games last year we're very

very proud to say that it's been keeping us busy right Tom and it's not over we're currently we're currently reviewing or having a discussion at various stages of these of these discussions a hundred and sixty-four projects in the in the books so we're confident that we're gonna reach that 50 to 75 additional games next year or this year leh we are in 2019 so what kind of games do we support platform wise everything goes free-to-play a premium and/or mobile as far as the publishing new Taku goes or an otaku publishing where the publishing opportunities go we want to focus on mainly free-to-play games 95% of our revenues are generated from our free-to-play games it's as simple as that we will Tim we will ensure distribution of premium games we probably will not be

funding premium games unless you've got the next we've got a next real real real super hit on the table but even to the premium space we're not so interested what we are interested on on the other hand is mobile currently our traffic shows and our revenues from the games show clearly that it's a roughly a 50/50 split between play browser pc and mobile I would say that right now mobile is the fastest growing revenue generation or revenue generator on on otaku on our platform we are also very excited to say that we're going to facilitate access to the mobile content through the launch in early q2 so we're currently in beta stage and soft testing and soft launching are our own new table basically facilitates access to the content for the users literally you'll

download the new Taku app hit the download button installs automatically your you have access to the game no more hoops no we're going around left and right to download the and install the game so we're very confident that this will have a very very high positive impact on traffic and revenue generation from the games that we we distribute so let's look at some numbers top grossing games in 2018 alone so coming heaney project grossed 4.2 million dollars so we're asking the question remember a few minutes ago where we were asking the question is there a market is there money in this space of course it's a vertical let's be honest it's a niche within a niche it doesn't compare to the vehemence and and the gigantic games out there but it's still 4.2 million dollars in a year which is not booty calls generated almost shy a few hundred

thousand shy of three three million dollars and chick Wars a 2.4 da use just to give you a heads up or an indicator on what kind it is what kind of engagement are we getting from this audience booty calls as an average da you for December of 25,000 that's not bad hentai heroes phat CEO with eighty two thousand da use if they've launched in August if I remember correctly that's just four months and they've been consistently present in the top ten on the top ten leaderboard of top grossing apps on new taku their launch I know rod is very happy very happy camper and we actually so we have we have a lot of opportunities also coming out of this because of our proximity to the largest adult entertainment group in the world eeeek we can also brand games so what we

did we took a game called faff CEO we took the game called fab CEO and we turned it we created a men version a gay version in collaboration with men calm men calm is the largest gay destination site in the world it's as simple as that and once again rod is very happy about that move so how do you guys how can you guys get access to to to to what we do to this distribution platform and to our funding opportunity so first and foremost place some of our top games Kaku net play those top tents identify what are the key components of each and every one of these games there are common threats we're it's it's very very clear what you can do and then present us with your game we have a team

once as I said of eight business developers out there who are eager and willing to a talk with you then identify a strategy to take your existing game and this is the premium model that we love you guys have games that have been in the marketplace for some time either with little or limited success if you're looking to generate additional revenues for these games you talk with our business development team we look at an adult efficacious strategy so what an adult vacation strategy looks like is a little more than just taking your game and slapping some nude or explicit content over and on top we are looking for content integration not just slapping pictures so the adult components of the game can be court or at least be properly integrated with the existing gameplay so once you've built

this this presentation package of the pitch we will review your game we will provide you with constructive feedback every step of the way whether it a one-pager format down to the full-blown presentation package for funding and then we will have we have a very simple gate review system based on two gates gate one is to give an indicator on what's our level of interest in this game how do we feel it's going to perform within the platform we're gonna build financial models around it for castings we're gonna have answer all that all the questions dot all the eyes and cross all that we'll put it in front of our eight people review committee and the decision will be taken to either fund or not your game it's very simple it's pretty fast the type of documentation that we ask is nothing that you don't already have we production milestones

global budgets GD DS TD DS all the good stuff that you guys already have to build your own game once the game is approved contract is signed we then assign a gated producer to your game get a dedicated game designer we have in-game economy specialists if you guys for instance don't have the talent in-house to develop or to produce the adult art we have worked with dozens of studios that can take that task off your hands and take ownership of that and it would and and and basically develop the art that you can then integrate and complete the your game development cycle development begins game is launched we every game that is funded through the new Taku publishing has insured featuring and in short marketing we have a team of six marketing we have a team of marketing of six people are actually investing a million dollars in marketing

budget this month alone so we're we're serious about this and I think the numbers the growth from one to twenty four and we're ten to twenty however you want to look at it on a larger scale or ashram is just proving that our marketing people know what they're doing as far as user acquisition is concerned and then it's in your hands to build a sticky engaging game that our users will buy into we have devote so what kind of people are we working with we are literally working with developing studios across the world we are around the road right Tom on the road once a month just from traveling the world whether it be in Asia or North America looking to put the message out there and meet with developers such as you so we'd love to see your country and or your city added as a dot on that worldwide map developers yeah we do have to in

Africa one in Congo and the other one is in Kenya I think right tom I think it's Kenya I think it is somewhere like that yeah so it's pretty exciting and that's it you have any questions please fire away that's what I'm here for yes great thanks good presentation I'm asking for a friend you mentioned that you are looking for mobile games is the store front the user like Apple on Google or are they running from this is the store front your platform somehow the story is our platform the store front ASL are quite well so they'll be able to access it

whether it be from Mount from the online from online or from the downloadable client which is basically a our own store so it's like Android only on a mobile or yes unfortunately the iOS world oh just some X through html5 we will tap into the iOS crowd but it's not our core focus our core focus is Android great thanks what is the store cut what is the what a cut of the revenues you take I don't see any I don't see any signs of slowing as far as gross revenues are concerned oh the ref sure cap oh sorry that that part I heard the cap of revenues are our basic model our starting position is 50/50 very very standard in the industry nope all in-app purchase one percent of those revenues

are in-app purchases [Music]