Preferred Stock Offering - Planet Digital Partners
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Preferred Stock
Offering
1
Summary & Contents
Planet Digital Partners is an already established games publisher, lead by an all-star group of video game
industry experts, that will bring blockchain to games on all platforms. PDP aims to publish 10 games in
the next 4 years, each with unique gameplay and title support enabled by blockchain. To fund these
efforts, PDP is raising $38mm with a Preferred Stock Offering.
Planet
Digital PDP
Partners Game Blockchain in Games
Portfolio
Preferred
Use of Funds
Stock
Offering
Planet Digital Partners
Planet Digital Partners (PDP) represents an all-star team of video game industry leaders including the
former PlayStation Europe President, the Founder of Take 2/Grand Theft Auto, and the CEO of Guitar
Hero.
•
Planet Digital Partners Inc. (PDP) is one of 15 licensed publishers of video games for PlayStation 4, Xbox
One, Nintendo Switch, PC and Mobile platforms.
Development, marketing, and manufacturing will be funded by a Private Placement Rule 506(c) for
accredited investors and Regulation S for non-U.S. persons.
Games developed by Planet Digital Partners (PDP) will capitalize on an under-utilized sector of the $135
BB video game market.
Planet Digital Partners will capitalize on global partnerships with Solutions 2 Go, Natsume, Konami, and
other video game industry leaders.
3
PDP Management Team
The leadership of Planet Digital Partners (PDP) has an incredible track record in the video game industry,
having successfully engineered and orchestrated some of the greatest product success stories in the
industry.
•The following team of Executives will be instrumental in guiding and leading the development,
production, and retail sales of the PDP library of content.
Steve Grossman Michael Stiegelmeyer Kelly Sumner David Rosenbaum
CEO EVP Fin/Ops Lead Board Advisor EVP Sales/Marketing
Marketing guru for Founder of The 1441 Take Two/Rockstar Founder and CEO of Jack
Nintendo, Michael Group/ZAGS founder and CEO of Red of All Games $500MM
Jackson, Bass Pro Shops Octane (Guitar Hero annual sales
4
PDP Advisory Board
•
Chris Deering Edward Williams Jeff Hilbert Matthew Karch
Board Advisor Board Advisor Board Advisor Creative Director
Former PlayStation Europe Managing Partner & Founder of Internationally recognized as CEO of Saber Interactive,
president, the “Father of Sisbee Partners, LLC Former BMO one of the top business developer of Halo, Quake, and
PlayStation” Lead Analyst, Digital executives in the video game NBA Playgrounds
Entertainment industry, featured on the cover
of Business Week
Patrick Baron Michael Maloney Andrey Iones
Board Advisor Board Advisor Creative Director
CEO of Blockchain Consulting Group Blockchain Futurist, Former Galaxy COO of Saber Interactive,
and previously President of Ambisafe Digital, Former E&Y Developer of Halo, Quake, and
and Orderbook.io NBA Playgrounds
5
Today’s Video Game Market
The video game industry is booming. Worldwide, console-based, PC and mobile video games represent a
$135 BB business.
Opportunities for monetization are growing constantly within the market. Public Game Company Stocks-
such as Take Two (TTWO) are experiencing record highs and dividends to shareholders.
•
6
Game Market Segments
•
Newzoo, a leading market consulting firm, projects the global games market for all platforms to
grow at a CAGR of +11%.
Newzoo projects global video game revenues to exceed $180 BB by 2021
7
$135 Billion Ice Berg
Gaming revenues exceed those of music, movies, and television.
•
Large Studios
Electronic Arts, Activision, and Tencent are all focusing on
the tip of the iceberg – big highly-visible. Game
development is at least $100MM in that market segment.
Majority of the Industry
Mobile gaming and streaming contribute to the larger,
less visible sector of the gaming industry. Sales of
$50MM+ are possible with a budget of $10MM or less.
P l a n et D i g i ta l Pa r t n e rs i s fo c u s i n g
o n t h e l a rge r p a r t o f t h e I c e B e rg
8
PDP Differentiators
F o c u s e d o n t h e “ S w e e t S p o t ” o f g a m e s ’ publishing
Planet Digital Partners will focus on games with projected sales of $50 million+, with costs of $10 million
or less. While many publishers focus on games selling over $250 million, the costs of producing these
games has ballooned – and eaten into profits.
•
B e st in B re e d G a m e D eve l o p e rs
Planet Digital Partners have developed games that have sold $100’s of Millions, including Halo,
Cooking Mama, Quake, Cabelas The Hunt, and NBA Playgrounds. PDP has attracted successful
studios within our target demographic by offering a greater degree of equity in the products without
sacrificing margin.
Private O f f e r i n g s o f G a m e s S e r i e s o n M u l t i p l e P l a t fo r m s
Planet Digital Partners will publish a potentially perpetual library of games, to be sold on up to 5
game platforms. Investors retain stake in all titles, and see our games on major consoles and
distribution platforms.
Blo c kc h ai n A p p l i cati o n s i n G ame s
PDP will directly implement blockchain technology into the games included in its library. These
applications will create unique user experiences and showcase the power of blockchain across all
platforms.
9
An Emerging ‘Sweet Spot’
Market consolidation has forced major publishers to ignore $50MM-$150MM sales
opportunities to focus on larger scale projects.
This vacuum represents a huge, untapped opportunity ‘Sweet Spot’ in a thriving market.
•
By aggregating multiple games from proven hit-makers, Planet Digital Partners (PDP) will create a
catalog of best in class, innovative gaming experiences, capturing a segment of the video game
market that is currently ignored yet highly profitable.
Success stories within this ‘Sweet Spot’ are $50+ MM hits such as Rocket League, Mudrunner,
NBA Playgrounds, and Minecraft.
10Investment Opportunity
PDP Investors will have the option to choose between Class A and Class B Preferred Stock shares. All Preferred Stock shares –
Class A and Class B – will be sold at a cost of $1 USD/share. In total, 38 million Preferred Stock shares will be available, with a
maximum of 20 million Class B shares available to be sold.
Class A subscribers will be issued shares via Digital Security Tokens available to trade on the seriesOne platform, per the Reg
D/Reg S guidelines. Class A Preferred Stock will be solely dividend-based and will require a minimum investment of $25,000 USD.
• Class B subscribers will be issued traditional certificates via Series One. Class B Preferred Stock will be both dividend and equity
based. Class B shareholders will have the option to convert their shares to Common Stock at a ratio of 8:1. Class B subscription
will require a minimum investment of $100,000 USD.
Holders of all PDP Preferred Stock – Class A and Class B – will receive 80% of net profits of each game sale. This allocation will
continue until shareholders have recouped 100% of their investment. Subsequently, shareholders will receive 40% of the net
profits of all games moving forward.
When profit is deposited (quarterly) into the contract, those funds will be distributed pro rata into the shareholders wallet or
account.
A nationally known auditor, KPMG, will manage calculation of profit. KPMG will be one of two signers along with PDP on the
dividend payment transaction to confirm the dividend amount being distributed is accurate according to the distribution formula
outlined in the PPM.
11Use of Funds
The following figures represent a structure for how Planet Digital Partners (PDP) plans to use the funds
generated through the PDP Preferred Stock Offering.
Planet Digital Partners (PDP) will direct funding to projects based on a priority schedule that
considers speed to market, ROI, and potential Total Available Market (TAM).
•
An estimated 80% of funds will go directly into game development, marketing, and production.
SG+A
20%
MANUFACTURING
5% GAME
D E V E LO P M E N T
60%
MARKETING 15%
12How a Game is Developed
CONCEPT
DEVELOPMENT
DESIGN IMPLEMENTATION TESTING DEPLOYMENT
PRE-PRODUCTION PRODUCTION POST-PRODUCTION RELEASE
GameDesigners Artists Programmers Prof.Testers Sales
Subject Matter Expert TechnicalDirectors BetaTesters Marketing
InstructionalDesigner EducationalTesting
STAGE NAME DURATION WHAT HAPPENS
1 Prototype 1-2 Months Pre-production version to test core concept
A pre-alpha version that's still missing key pieces, but is
2 First Playable 3-6 Months basically playable; mainly for the sake of demos to
prospective investors.
While still lacking some features, provides a full taste of the
3 Vertical Slice 3-8 Months game, and o f e r s a complete understanding of how the game
works
Contains all the game's features; time to clear all major and
4 Final Build 6-18 Months minor issues discovered by testers
This is when the games Publisher gather gather audience,
5 Release Open-ended raise visibility, and generate hype; remember, pressing the
release button isn't enough if no one's there to play!
13PDP Roadmap
Planet Digital Partners (PDP) will release games along a roadmap in multiple "waves" moving through
development, manufacturing, and market sales cycles concurrently starting in 2019-2022.
Q1 2 0 1 9 Preferred Stock Offering
• P D P Wave 1 Games Initiate Development
YEAR 1
Q 2 2019
Q 3 2019 P D P Wave 2 Games Initiate Development
Q 4 2019 Wave 1 Games Finalize Development and Hit Market
Q1 2 0 2 0 Wave 3 Games Initiate Development
YEAR 2
Q2 2020 Wave 1 Games Recognize Revenue- Investor Returns (Life CycleOngoing)
Q3 2020 Wave 2 Games Finalize Development and Hit Market
Q4 2020 Wa v e 3 Games Initiate Development
Q1 2021 Wave 2 Games Recognize Revenue – Investor Returns (Life CycleOngoing)
Wave 3 Games Finalize Development and Hit Market
YEAR 3
Q 3 2021 Wave 3 Games Recognize Revenue – Investor Returns (Life CycleOngoing)
Q 4 2021 Wave 4 Games Finalize Development and Hit Market
Q2 2022 Wave 4 Games Recognize Revenue – Investor Returns (Life CycleOngoing)
14Game Sectors
•
CONSOL P MOBIL S T EA M
E C E
S TA D I C LO U D ST R EA M I N NETW OR
A G K
15Mobile Games
Fastest Growing Segment
Mobile games are the fastest growing segment in the industry representing over $65b or 46% of sales.
PDP plans to publish the majority of its console games on mobile to maximize sales.
•
Financial Model
Unlike console games that are generally sold at a fixed price with additional upsells of added content,
mobile games are generally free to play with upsells being purchased by approximately 5% of players
at costs ranging from $1-10.
Cross Platform Play
The biggest new gaming initiative is cross platform play where mobile, console and PC players can
play the same game which each other. This breakthrough is destined to have a dramatic effect on
publishers bottom lines as the social aspect of gaming accelerates sales as a result of the shared
experience amongst gamers. It is also expected the Xbox and Nintendo Switch games will be offered
in their eShops and be playable on their devices. This will significantly increase revenues to PDP as a
result of an expanded installed hardware base.
e Store s
Players acquire mobile games via the Apple or Android app stores. These eShops charge a fee of
approximately 30% of every transaction. They do not charge for free downloads or for placement in
their eShops.
16Blockchain in the Games
Embracing Blockchain
PDP Games will adopt blockchain in many areas to enhance our titles. By working with game and protocol
developers and our players, PDP will provide support and expand the possibilities of blockchain within
games.
•
Customization and Community
Create, trade, and take digital control of provably rare digital items and characters. Players are provided
real ownership over their characters, items, and in-game properties.
Gameplay Mechanics
Provably unique gameplay expression implemented through their digital copy. By altering game values
with digital keys, subtle changes in gameplay have a big effect on the personal gaming experience – and
lead to infinite variety of gameplay when used on-line in multiplayer.
Competitive Advancements
Expand player experience beyond PvP: Players will compete publicly, with permanent consequence to
their characters. Viewers will be able to do more than merely comment and “tip” other players. Creators
will create custom maps and register them via blockchain to make them available for players to explore
and compete.
17Games First, Blockchain Second
If the game isn’t good, no one will play it – therefore, our number one priority is to make great games
that will perform in the market. Blockchain mechanics will be implemented only where appropriate, and
will build upon the success of earlier established titles.
1
•
Make GREAT
Games
18Cooking Mama
•
Cooking Mama: Coming Home to Mama is the latest release in the record
setting franchise with over 20MM units sold world wide
Addictive and family friendly cooking simulation game with opportunities to
share recipes and fun within the community
Brand new “Vegetarian Mode” allows players to cook creative and alternate
meatless recipes
Available on Nintendo Switch and Sony PlayStation 4, Q4 2019
19Cooking Mama
Blockchain based Private- Unique expressions in the
Keys will change the Recipe Creator system will
expression algorithms for provide one-of-a-kind
• ingredients, and
characters, outcomes from the
cooking methods – giving cooking experience which
every player subtle can be traded and shared
differences in how they play. in the community.
Digital Assets, such as Cooking Competitions
unique Private-Key driven through social networks and
character skins, will be supported by the
stored through the blockchain will give the
blockchain securing, audience the ability to
everyone’s unique affect the competition.
Cooking Mama
experience.
20Horde Mode
•
A brand new, 4-player, co-op shooter from Saber Interactive
Proprietary engine technology and content toolset powered by an advanced
movement system. Move. Kill. Survive. Win.
Saber Interactive, developers of World War Z (500K+), Quake Champions
(1.2MM), Halo MCC (3.4MM), and NBA Playgrounds (2.5MM)
21Horde Mode
User created maps, Audience members,
powered by the blockchain, through Twitch or other
create endless
• opportunities social media, can throw
for new games – and open bonus items and traps
up a new class of players during competitions.
striving to become Game These can be unlocked in-
Masters game, or purchased in
packs with other digital
goods.
Characters, items, and Challenges, oaths, and
skins can be stored on the titles are recorded on
blockchain – creating blockchain – alerting the
unique items and upping world to the player’s epic
the stakes for individual victories and brutal
experience and defeats.
expression.
22Playgrounds
Futbol Playgrounds
Football
•
Licensed release in the industry’s largest sports segment (FIFA 19 – $1.5BB+)
Ground-breaking, easy to master 3-on-3 arcade futbol
Expected year 1 revenue to exceed $40MM+
Release on all major consoles, platforms, and mobile devices
Global, multi-channel marketing campaign with media, fan experience, and
prize-driven verticals
23Futbol Playgrounds
Trade players, manage
attributes, and earn new
kits, through the blockchain. ?
Simple integration expands
•
player opportunities to have
their dream team!
User created characters Unlock new pitches, special
start with basic skills, and events, and special moves – all
level up with competition. recorded as assets on the
Train your player to blockchain - to create a one-of-a-
eventually compete online kind team and experience.
and take home prizes and
trophies
24Bass Pro / Cabela’s
•
Biggest hunting and fishing franchises in video game history, with 10MM+ units
sold LTD
#1 outdoor retailer in North America, with $7BB in annual sales
10 unique lakes, 111 official Bass Pro lures, enhanced GPS, and Bass Pro Shops
interface
10 legendary hunting regions, realistic animal encounters, tournament formats,
and authentic licensed hunting gear
25Bass Pro / Cabela’s
Private-Keys managed Terrain and environment
through the blockchain variations driven by
allow for unique user private-keys will create
• and the
experiences diverse user experiences
creation of fungible digital
assets within each copy of
the game.
Expressions driven by Tournaments and prize-
these private-keys can driven competitions can
manifest as species types, be governed through the
interactions, or behaviors blockchain providing the
that become the assets to most secure and reliable
be shared and traded platform.
between users.
26Sample Revenue Projections
2020 2021 2022 2023
Expect Exceed Expect Exceed Expect Exceed Expect Exceed
Gross
• $112M $120M $124M $130M
Revenu $52MM $75MM $81MM $82MM
M M M M
e
Total
($31M ($67M ($34M ($54M ($36M ($55M ($37M ($59M
Expense
M) M) M) M) M) M) M) M)
s
NET
$21MM $45MM $41MM $66MM $45MM $69MM $45MM $71MM
Profit
Key Assumptions Break-Even Analysis
• Wave releases by calendar year: • $150MM+ expected / $20 margin = 7.5MM+ units
• 2020 – 3 games, Wave 1 • 10 titles = 750K units / 5 platforms = 150K units per
• 2021 – 3 games, Wave 2 platform
• 2022 – 3 games, Wave 3 • 3 market regions = 50K / title per region
• Retail $39.99 - $49.99 (North America/Europe/Asia)
• Physical distribution expense + 15% in 2020
27Sample Investment Model
$1MM Investment $2MM Investment $3MM Investment
Expect Exceed Expect Exceed Expect Exceed
2020
•
$432K $947K $864K $1.89MM $1.3MM $2.84MM
2021 $657K $1.04MM $1.3MM $2.08MM $1.9MM $3.12MM
2022 $463K $726K $927K $1.45MM $1.4MM $2.18MM
2023 $470K $747K $939K $1.49MM $1.4MM $2.24MM
TOTALS $2.02MM $3.46MM $4.03MM $6.92MM $6MM $10.38MM
Key Assumptions
• Distribution of NET profit to Pref. Share at 80% until ROI, then 40%
• Expected ROI achieved mid-year 2021
28Disclaimer This presentation does not constitute an ofer to sell or a solicitation of an offer to buy any of the securities described herein. The securities referenced in this presentation are being ofered by Planet Digital Partners, Inc. (the “Company”( pursuant to the exemption from registration with the United States Securities and Exchange Commission (the “Commission”) contained in Section 4(a)(2) of the Securities Act of 1933, Rule 506 of Regulation D promulgated thereunder and Regulation S promulgated •thereunder. No registration statement or application to register these securities has been or will be filed with the Commission or any state securities commission. These securities have not been approved or disapproved by the Commission nor has the Commission or any state securities commission passed upon the accuracy or adequacy of this document. Any representation to the contrary is a criminal ofense. An investor must read this presentation in conjunction with the Confidential Private Placement Memorandum for Accredit Investors and Non-U.S. Persons and the Subscription Agreement attached thereto and the terms, conditions and risks contained therein, and may only subscribe to acquire such securities as set forth therein. Certain statements contained in this presentation constitute forward-looking information under applicable securities law. These statements relate to future events or future performance, including statements as to the Company’s intention to complete the ofering and the private placement and the use of proceeds of the rights ofering and the private placement. Such statements are not guarantees of future performance and actual results or developments may difer materially from those expressed in, or implied by, this forward-looking information. Factors that could cause actual results to difer materially from those in forward-looking statements include such matters as the availability and cost of funds, the closing of the ofering and the private placement and other risks related to the business of the Company. Any forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and subject to change after that date and the Company does not undertake any obligation to update publicly or to revise any of the forward- looking statements, whether as a result of new information, future events or otherwise, except as may
Thank you! w w w. p la n etdigita l. io
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