Phantom Game Service, Inc.

The Phantom Game System™ began In development in 2002. It was created to be the ultimate gaming experience offering the first end‐to‐end, on‐demand game distribution service and coined the phrase “Any Game, Any Time™ ” Phantom Game System™
From 2002 to 2005, Phantom was hailed by video game magazines and websites as the most anticipated hardware for PC gamers and most significant innovation in years. Phantom Gaming Service™ was originally developed exclusively for use with the Phantom Game System™. It was created to be the first end‐to‐end, on‐demand gaming service with hundreds of games to choose from and the ability to try any game before you buy.
Phantom Gaming Service™ had the ability to quick play streaming games which allowed you to play in less time than it takes to install from CDs or download from a website. The Phantom Game System™ was led by an exceptional group of executives from companies such as Microsoft, Yahoo! And NBC.
• Tim Roberts: Co‐Founder of Savvis
Communications (NASD: SVVS) and Intira Corporation
• Kevin Bachus: Creator of Microsoft Xbox
•
•
•
•
•
Bret Brase: Broadcast.com and Yahoo!
Ty Graham: Microsoft and WildSeed
Andrew Schneider: NBC and Sony Pictures
Kathy Schoback: Eidos and Sega, IGDA Chairperson
Rich Skoba: Hewlett Packard Services
Out of 42 employees, 50% were in engineering and product development.
Phantom Gaming Service™ had an extensive library of over 500 games with 22 content providers representing over 30% of the PC games market including 4 of the top 10 PC publishers.
A few of the games included:
Baldur’s Gate 2
Barbie
Bloodrayne
Dark Age of Camelot
Empire Earth
Icewind Dale
Lord of the Rings
Silent Hill 3
The Hulk
Centipede
Civilization 3
Deer Hunter
Monopoly
Neverwinter Nights
Scrabble
Total Annihilation
Trivial Pursuit
Phantom Gaming Service™ contracted / invested over $1,000,000 in advance royalty credits that were unused and are still available for use. The Phantom Game System™
had everyone talking.
140 Million Unique
Visitors to Phantom.net
Key Video Interviews @ E3 2004
NBC, CBS, Fox News/LA, UPN Channel 13/LA, CNN affiliates in 10 markets, WB Houston Affiliate, Multiple European and Asian shows, G4/TechTV, Gamer TV (London)
Key Radio Interviews @ E3 2004
FINALIST
NPR
"Into Tomorrow" syndicated tech show: more than 100 radio stations across the country, including Sirius and XM Radio
The Phantom Game System™ had
a huge presence in 2004 at the largest
video game trade show in the world, E3.
Overview
Total traffic through Infinium Labs booth
43,000
T-shirts given away after scanning card
12,000
Private Meetings
350
Press Meetings
500+
Video Interviews
25
Public Demonstrations
4,800+
Press Kits
700 kits handed out
FINALIST
FINALIST
FINALIST
FINALIST
The Public Loved It
Game Execs Loved It
• Mark Rein from Epic Games – Creator of UNREAL said, after playing our system, “This is the coolest system I have ever seen. Put us in front of the press. We want to endorse this service!”
Critics Loved It
A former critic from an online game news site said, “Wow. I really wish this wasn’t so awesome. I’m going to have a lot of explaining to do…”
And then we had some challenges…
Phantom Entertainment
closes Seattle engineering
office, secures and
moves all assets to Florida
Phantom was pigeon holed by the Seattle based engineering team. They were contract based and knew that when the product shipped they would no longer be needed. This created a strong conflict of interest that resulted in the engineering team strong arming Phantom by causing significant delays.
Phantom had a challenge trying to figure out how to secure the company’s Intellectual Property which resulted in a huge drain on cash reserves.
Despite the praise by the media and gaming community, The Phantom Game System™ launch
was canceled due to the company hitting a brick wall as a result of previous funding rounds. The previous rounds diluted the company’s public valuation to a level where it was impossible to raise the little remaining cash needed to complete the Game Service.
New Beginning
What Phantom
Entertainment is
Doing Now.
Phantom Entertainment Inc. (OTCBB:PHEI) is focused solely on the distribution and sale of the Phantom®
Lapboard.
The Phantom® Lapboard has 3k orders logged and waiting and is planning on shipping 500 units a month and ramping up starting in October/November of this year.
Phantom Entertainment will help promote
Phantom Game Service by having a link to our website and by embedding our software on a chip inside the Phantom ® Lapboard.
Phantom® Lapboard
PRNEWSWIRE – August 18th 2008
“Phantom ® Game Service, Inc. Signs
Asset Purchase Agreement with
Phantom Entertainment, Inc.”
Deal Terms
Phantom Spent over
70mm dollars on the
development of these
assets and traded
over 200mm in stock.
Phantom Game Service, Inc. shall pay a total of $165,000 to Phantom Entertainment, Inc. and 49% stock in Phantom Game Service, Inc. Along with 7% of gross annual revenues.
$65,000 is to be paid within 4 months. $100,000 is to be paid in 3 years.
Phantom Game Service, Inc. acquires all assets
associated with Phantom Gaming Service™.
Summary of Assets
¾Software (encoding engine, client, streaming server, billing systems, user interfaces, web pages, videos, SQL databases, Oracle accounting system, designs, architectures and topologies, and more)
¾Phantom Game Service™ Trademark
¾“Any Game, Any Time” Trademark
¾Phantom Game Service Patents
¾Publisher Agreements
¾Marketing, Collateral & Legal Contracts
¾Operating Plans
¾Market Research – Gartner, Yankee Group, Penn Sholeon and Berland, DTI for Pricing, Elasticity, Branding and Marketing studies
¾Phantom Game Receiver with associated patents, engineering documents and diagrams.
¾Domains: phantomgameservice.com, phantom‐gs.com, phantom‐gs.net and phantomgamingservice.net . Same technology,
New methodology
• Phantom Game Service changes business model entirely by taking advantage of streaming technology already developed and becoming a video game digital distribution service provider. • Eliminating the Phantom Game Receiver allows the company to significantly reduce costs and focus on content instead of manufacturing hardware.
Mission Statement
Phantom Game Service is a business to business (B2B) provider creating revenue sharing opportunities for cable companies, ISPs, retailers, e‐tailers, traffic intensive websites and social networks. We enable our partners all over the world to stream games online without worrying about the how with the broadest and best catalog of games and grab a piece of the revenues.
We are the how.
Phantom Game Service™ assembles new executive
and engineering team in Tampa.
Tim Roberts ‐ CEO & President
Rich Krueger – SVP Content Acquisition & PR
Nathan Lands – VP Sales & Business Development
Rick Johnn ‐ Lead Programmer
Billy Buckles – Project Manager
Chris Faulhaber – Solutions Architect Mackenzie Straight – Software Developer Executive Bios
Tim Roberts
Founder of Phantom Entertainment (OTCBB: PHEI)
Co‐Founder of Savvis Communications (NASD: SVVS) and Intira Corporation
(now Data Return). Tim has over two decades in technology, business and finance with startups.
Rich Krueger
Richard Krueger has two decades of experience in marketing and business
development on behalf of leading interactive entertainment companies. He presently serves as CEO of AboutFaceDigital, a Facebook application development and social media marketing agency, based in Manhattan.
Nathan Lands
Created first video game e‐commerce business at the age of 15. Started several start‐up ventures in technology & advertising . Lived in Taiwan for 2 years and learned to speak Mandarin Chinese and acted in several TV commercials while traveling through Hong Kong, China, Japan and Thailand.
Engineering & Project Management Bios
Rick Johnn
Rick previously served as Director of Software Development/CTO for Medcere, LLC, a healthcare services company. Back in the beginning of the dotcom boom, Rick served as one of the lead developers on the creation of the FindWhat.com PPC marketing/search engine, which served as a backbone for both Lycos and Verizon’s SuperPages.com. Billy Buckles
Billy Buckles has served multiple companies by managing the development, implementation and support of multi‐million dollar projects; most recently an Electronic Medical Record application built from the ground up using the latest Microsoft .NET technologies. Chris Faulhaber
Chris Faulhaber has served as a solution architect and framework lead for multiple healthcare software companies. Before serving as a solution architect, Chris worked on a mission critical financial system for Virtual Bank, as well as a Principal Consultant for PCM Networking.
Mackenzie Straight
Mack has experience across all major platforms which gives him the ability to solve problems regardless of the operating system or language(C# (.NET), C++, C, Ruby, Python, oCaml, Common Lisp, Tcl, K, Perl) the application was developed in.
SOFTWARE
Code was written by original developers of Real Networks, Wild Tangent, Microsoft, Yahoo and Sony Online.
Our engineering team reviewed the code and graded it as A++, very well written and documented and the streaming encoder and streaming server are finished.
Timeline for launch of Beta 1 live to public:120 days from funding.
Content Delivery Network
Phantom Game Service’s content will be delivered with the help of SAVVIS, Inc. (NASD: SVVS) and their CDN(Content Delivery Network).
SAVVIS is the ideal CDN partner for the Phantom Game Service. Using the slogan “The Network that Powers Wall Street” SAVVIS now serves more than 4,700 financial institutions, including 75 of the top 100 banks and 45 of the top 50 brokerage firms worldwide. Still, 70 percent of SAVVIS's customer base is comprised of non‐financial enterprises. SAVVIS currently serves more than 400 customers in the retail industry worldwide. Many of SAVVIS’s clients are potential partners for Phantom Game Service and could benefit from new sources of revenue.
SAVVIS’s Clients (short list… )
Market Landscape
Main Competition
Exent
Digital distribution solutions provider for companies such as Verizon FIOS and Gametap. Streaming & Download.
Trymedia
Digital distribution solutions provider and the world’s largest B2C marketplace for downloadable games. Download ONLY.
Both companies are only involved in 2nd
release window games which they get after the games are no longer available at retail.
Market Shifting to Streaming
A recent report by Ars Technica stated that:
“with the rise of Hulu, YouTube, Veoh and many more, it's streaming traffic that now generates concern for ISPs, even as P2P drops off in some cases. The shift, should it become a permanent trend, is good for everyone. ”
Ars Technica reports that with the availability of streaming technologies being made more accessible and user friendly the public is beginning to lower their usage of P2P and illegal file sharing in favor of using easy to use legal alternatives such as streaming video, music and games. The market is shifting to streaming at a rapid pace as broadband internet becomes widely available and offered at higher speeds and users become accustomed to using services such as YouTube where they can watch what they want On‐Demand without having to take up space on their PC.
Game Developer Speaks
(Sept. 10th 2008 Article)
As a response to the CEO of GameStop’s remarks against digital distribution, the CCO of Acclaim Entertainment had this to say:
“He says we are 12‐17 years away from downloading games digitally? I know he's got to pretend that digital distribution isn't relevant (or any kind of threat) to protect his stock price, but I guess Steve Jobs is miles off course then (100,000,000 digital downloads in the first 60 days of opening Apple's 'Digitally Distributed' App Store.) Or that iTunes is now the biggest music retailer in the world.”
“What is the Amazon strategy? What is the Netflix strategy? To distribute entertainment digitally.”
Game Developer Speaks
(Sept. 10th 2008 Article) Continued
“Finally, he made some crazy reference that "Publishers are afraid to death of piracy." Yet, as we know, piracy can be tamed by server authentication. China is the living proof of this, where they have a non‐existent console media business, and a thriving digitally downloaded industry. A digital distribution industry which grew 69.5% last year.”
“I personally feel GameStop is just blindly putting their foot on the gas pedal to speed up digital distribution (thanks to their policies); if
they are smart they will be investing very, very heavily in digital distribution if they want their company to still exist in 12‐17 years.”
Competitive Advantages
UNIQUE APPROACH
The current “competition” is focused entirely on 2nd window release content which they only get AFTER the games are no longer sold in retail. Also, they have a gigantic library of lackluster titles that don’t sell and cause harm to the overall user experience.
CONTENT, CONTENT, CONTENT
Phantom Game Service will have the best catalog of games by solving the problem of securing NEW RELEASE 1st window. We will focus on quality of content over quantity, unlike our competition, and aim to have only the top selling casual and hardcore games to maximize our return on investment and to provide less clutter and better experience for our users.
Competitive Advantages(continued)
NETWORK PERFORMANCE: We have aligned with the FASTEST network in the world carrying 30% of the internet’s traffic and are utilizing their performance based edge hosting.
SOFTWARE: Our software was built by some of the greatest minds in the streaming world and is an intelligent technology that is a BRAIN and continuously adapts and learns how to increase game performance every time a game is played.
Strategic Partners
Phantom Game Service will form strategic partnerships in several vertical markets including the following industries: Cable Companies, Phone Companies, Movie Rentals, Hotels, Retailers and Social Networking Sites. Short list of companies we are pursuing:
Savvis, Best Buy, Circuit City, Radio Shack, Facebook, MySpace, AOL, Google and Blockbuster.
We have worked for over 6 years on indentifying the issues between retailers and publishers to acquire AAA new release content to be delivered over the internet through the PGS streaming platform and have solved the problem. Benefit to Partners
Phantom Game Service Partners:
Cable Companies, ISPs, Last Mile Providers, E‐tailers, Retailers, Publishers whom WHITE LABEL the Phantom Game Service portal will receive the following:
10% of NET SALES from:
ALL GAME SALES
ALL SUBSCRIPTION REVENUES
ALL ADVERTISING REVENUES
AAA and New Release content will receive special incentives which are confidential.
Phantom Game Service, Inc. has budgeted over 2mm dollars for royalty advances for 1st window content and also another 600k for exclusive casual titles to the PGS.
Content Acquisition Plan
AAA Content Strategy
• Share our revenues with Big Box Retailers in exchange for co‐marketing support. This allows them a reoccurring revenue stream and doesn’t take any of their shelf‐space.
• Go after AAA games which have been blocked
by Game Publishers due to the fear of losing their retail partners.
Low-Cost Marketing Strategy
Phantom Gaming Service will initially take advantage of Phantom Gaming System’s brand awareness and comeback story to keep marketing costs low and easily get the media’s attention and have the whole internet talking.
“Did you hear Phantom is back?!”
We have developed an automated online co‐op marketing portal which allows website owners to automatically receive commissions
from sales revenue generated by the customers they send to us. We are positioning ourselves with FaceBook and other Social Media and Web 2.0 sites for co‐op marketing opportunities.
Game Industry Report
08/19/08
Forecast
Video game industry will grow by 10.2 percent per year,
eventually generating $63.2 billion in revenue by 2013.
Analysis
Video game industry is “somewhat recession-proof” and is
expected to grow 9.5 percent this year, bringing in $38.9
billion, despite flagging consumer sentiment.
PCGA Horizons Report
08/22/08
PC gaming was a $10.7 billion industry in 2007, with sales from digital distribution nearing $2 billion and advertising revenues from websites, portals, and in‐game ads accounted for $800 million. Online PC gaming brought in $4.8 billion, almost double that of retail PC sales.
“Our analysis clearly shows incredible growth in online PC gaming, proof that this industry is far stronger than anyone has reported. Today’s consumers shop where they live ‐ online.”
PCGA Horizons Report
08/22/08
Broadband‐connected PCs are the key driver of growth for PC gaming.
By the end of 2007 less than one‐third of households in the top 20 markets for games had a high‐speed Internet connection. That clearly indicates that there is still plenty of growth to come.
What 1% of the Games‐on‐Demand
market looks like today…
PC Gaming
Games‐on‐Demand
1% Market Share
What 5% of the market looks like in 2013…
The immensely popular PC Game World of
Warcraft has over 10 Million Subscribers
who pay $15 a month and paid on average
$40 to originally purchase the game.
The game’s first
expansion “The
Burning Crusade”
sold nearly 2.4
million copies in the
first 24 hours of
availability for
$39.99 each, a total
of $96 million in
24 hours.
1% of WoW sales would have made
Phantom Game Service
$5,000,000
in profit.
Big Fish Games – B2C Game Portal
•
•
•
•
•
•
•
•
Game Download (no streaming)
B2C portal – No white label program
No AAA content – Casual games only
Annual Revenue Growth of 200%
Generated 24.1mm in sales in 2006
Generated 50.6mm in sales in 2007
310 employees / 500 game developers
1 MILLION GAMES TO CONSUMERS PER DAY
Phantom Game Service is
ready and the hard work is
done!
Phantom Game Service is a clean company with no debt or liabilities. It has many assets to work with and little cash needed to launch and be profitable. A sliver of the market share makes this an enormous company run with little overhead.
Phantom Gaming Service™ is
positioned to seize a large share of
the Games-on-Demand market
and become one of the largest
video game streaming service
providers in the world.
Phantom is Back …
2009 Projections
Overview
Total Games Sold: 226,500
Total Income: $8,667,500
Total Expense: $7,405,433
Net Profit: $1,261,067
*Full Operating Plan Attached*
Delaware C Corporation
1000 Authorized Shares
Outstanding:
510 Shares CEOSAVVY, LLC
490 Shares Phantom Entertainment, Inc.
Board of Directors: Timothy Roberts
CEO: Timothy Roberts
Office:
We have negotiated a lease for a built out 7k square foot
office in Channelside’s Grand Central in downtown Tampa,
Florida. Home of the 2009 SuperBowl XLII!
The building owner has agreed to give us the first year free
on a 5 year lease. We will start the contract and move in
upon closing of funding. Full CAD/CAM and already built
out and ready to move in for little expense.
Patents & Trademarks
Phantom Game Service Trademark
Certification of Registration No. 2,961,733, issued on
June 14th, 2005.
Any Game, Any Time Trademark
Trademark Docket No. 556292401300 filed March
2004.
We have a patent
attorney in New York
who will be working on
all patents that were
filed to ensure they are
maintained through
prosecution.
Phantom Game Service Patents
Streaming technology – Method for automatic
patching of a sparsely streamed application.
USPA: 20060069796
Kind Code: A1 / Date: March 2003, 2006
Other Trademarks
Black Knight – July 7th, 2003
BlackNight – August 13th, 2003
Pay Per Play – August 13th, 2003
Virtual Private Game Network – August 13th, 2003
VPGN – August 13th, 2003
Built By Gamers, For Gamers – August 13th, 2003
INVESTMENT TERMS
Convertible Debt
Minimum Raise Maximum Raise -
300k
1mm
• Convertible at a 5mm dollar valuation / 5 year conversion
term
• Interest Rate: 10% APR
• Kicker: 1% of Net Profits for first 2 years
10% warrant coverage at a 50mm valuation - 10
year term
• Loan Term: 2 Years
• Security: Senior Secured with a UCC1 Perfected
SAFE HARBOR STATEMENT
Certain statements included in this presentation may constitute forward‐looking statements. Actual results could differ materially from such statements expressed or implied herein as a result of a variety of factors including, but not limited to: the development of Phantom Gaming Service technology, the successful marketing of Phantom‐GS.com, acceptance by the market of Phantom Gaming Service, products and technology, competition and timing of projects and trends in the gaming industry, as well as other factors. The forward looking statements contained herein are made only as of the date of this presentation, and Phantom Gaming Service undertakes no obligation to publicly update such forward looking statements to reflect subsequent events or circumstances.