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Gamesmondo Affiliation and Monetisation Ecosystem

Periodic Reporting for period 1 - Gamesmondo (Gamesmondo Affiliation and Monetisation Ecosystem)

Reporting period: 2015-05-01 to 2015-08-31

The Android operating system is open. Hundreds of potential distribution channels exist and new entrants want to get involved in games distribution. In theory this means a fully open and competitive market for Android games. In practice Android is currently dominated by one store. This is due to Google’s dominant position and the ‘freemium effect’. Freemium games are dependent on features provided by the distribution channel. This creates technical and commercial fragmentation. Supporting multiple channels means developers need to create and maintain multiple builds and relationships. Opportunity cost means that individual companies do not invest to create the open market. This means that:
• Developers are locked in to Google Play which is overcrowded, with limited discovery forcing them to spend heavily on advertising
• Remaining distribution channels suffer due to a lack of content
• Developers’ payment monetization is limited to what Google’s payments can support
• Traditional players, like leading European operators and service providers, are being crowded out
An open market, where developers can distribute and monetize games in any channel (including Google Play) would drive overall industry growth and reduce issues for developers. Gamesmondo combines enabling technology, commercial relationships, monetization and service management to create an aggregated network of games, distribution channels and users. This overcomes fragmentation and opens up the market without opportunity cost for developers or distributors. Developers get routes to users otherwise unreachable. Distribution channels get access to games and revenue otherwise unavailable and new players can enter the market.

The coming build and roll-out of Gamesmondo has been aided by Flexion’s Phase 1 project, which served to:
1. Validate market opportunity, developer needs and distribution channels
2. Initiate creation of a network of distribution channels
3. Undertake IP and freedom to operate analyses and explore additional patentable features
4. Expand on business and execution plans
Project outcome was positive and it, together with associated pilots, has validated the opportunity. It has furthered Flexion’s understanding of developer and distribution channel needs and market evolution. The work undertaken confirms that the core business model is sound. No commercial or intellectual property barriers exist. The results from the feasibility study have been used to determine an effective build strategy.