Gaming World:

Board Update

Updating the Board on our partnership

strategy with Google
History

● Proud to be a gaming pioneer for 25 years

● We were able to expand to North East Cities like New
York, Boston in addition to South West Cities like Los
Angeles, San Francisco, Austin
● 5 years ago we began expanding into VR experience
○ Customers love it!
○ More VR investments!
Next Steps
● Our VR strategy: partner with a strong technology and
marketing platform
● Based on Google’s Earnings Call, we wish to partner with
Google because
○ They show a strong financial growth
○ They are willing to spend money to grow their platform
○ They are willing to invest in Research and Development
Google’s Financials:
● 2018 total revenues of $136.8B were up 23% since 2017, reflecting the benefit
of ongoing investments to deliver exceptional experiences for users and
compelling returns for advertisers, partners and enterprise customers

● Other revenues for Google were $6.5B, up 31%, fueled by Cloud – showing an
increasing interest for other companies’ shift to Cloud

● Operating expense were $13.2B, up 27% - driven by increased R&D,

marketing and advertising investments

● Google continues to see strong revenue growth in mobile search by enhancing

the experience for users and advertisers
Finances: Gaming World’s Expense Outlook:
● With a partnership with Google, we project our total
expense to increase from $20M to $51M over the next
4 years

● The largest portion of expenses will come from

modernizing our technology platform and utilizing
Google’s Cloud

● As Gaming World grows, we also expect

Administration expense to increase slightly due to
increased employees

Google Expense Table

Current Expense - $20M
Cloud - $18M
Marketing & Advertising - $9M
Google Suite - $3M
Admin Costs - $1M
________________________________________
Total New Expense - $51M
Finances: Gaming World’s Revenue Outlook:
● With the increase in marketing spend and utilizing
Google’s advertising & Cloud platform, our
outlook is a total revenue of $200M over the next
5 years, 300% above current revenues, driven by a
large increase in NEW customers

Entrance Price Increase

● With our newly enhanced and efficient VR gaming
experience, we plan to increase our entrance costs
by $10 (50% incr), which we believe our customers
are willing to pay for a unique gaming experience

New Revenue Streams

● Google’s Cloud will allow us to develop new games
that we can license to other arcades
● As our VR experience improves, we can become
the internet cafe into the Metaverse
 Technology - Transform Legacy to Cloud Services
Next-gen Content
Cloud gaming Google Cloud International
Gaming generation

Move our legacy in house proprietary games to

online

Leverage Google Cloud services such as G-Suite

Wider international reach through Alphabet’s

18 Google Cloud Region

Better performance due to Alphabet’s larger

CAPEX investment in data-centers and servers
 Technology - Transform Legacy to Cloud Services
Next-gen Content
Cloud gaming Google Cloud International
Gaming generation

Alphabet has repeatedly spoke about AI and Machine Learning among their many R&Ds

AI to help us understand user

behavior

Next innovate with their

Machine Learning to know
repeated use pattern
Technology - Transform Legacy to Cloud Services
Next-gen Content
Cloud gaming Google Cloud International
Gaming generation

Engage Google Assistant for multi language prompts

across 80 countries and 30 languages

Utilize YouTube content, Desktop and mobile search

Enhance user friendly features using

Android and Chrome capabilities

Google Home Hub will be installed at our gaming

parlors
Marketing:
Alphabet’s Google provides a unique advantage with its vast
opportunities when it comes to utilizing it as a significant tool in our
marketing strategy.
❖ Youtube premium and Youtube TV : this platform of Google allows VR
gaming to capture a wider audience share with the ability to market itself with
both audio and visual marketing campaign.
Marketing:

Visibility of marketing content is as much of an importance as the

content itself and Google again helps to bridge that void with its
search engine.
❖ When customers are looking for a new product or service they tend to rely on
search engines like Google to provide such information due to the
convenience and ease of having all the information at their fingertips. Google
provides that leverage when it comes to delivery and visibility of such
content via its widely used search engine that we as a company can take
advantage of.
Marketing:

Continuous investment in research and development are key drivers for any companies
success and Google strives to realize such with much of its operating expenses focused
on R&D.
❖ Customer demand and expectation of service changes constantly and not to
mention businesses are constantly rethinking their approach as to how to capture
greater market space, but are at times unable to act on those due to lack of
resources. It is therefore, imperative that we build a marketing strategy that can
provide us with the ability to effectively market our services, regardless of the
changing marketing infrastructure and resource constraints by leveraging
Google’s robust R&D capabilities.