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Glu Mobile: Highlights from Q3 2011 conference call

There were a couple of things I would like to highlight from yesterday’s Glu Mobile Q3 2011 conference call due to their general implications for the mobile gaming industry and our top-pick G5 Entertainment.

Question: On Android, can you talk a little bit about monetization of Android and how that compares with monetization on iOS?

Glu Mobile CEO, Niccolo de Masi:  Some of the principal differences of core are that incented advertising is all alive and well on Android, whereas there are limitations to it on iOS. Google is in the process of adding carrier billing to Google Checkout globally. And so you will see an expansion of really reduced friction on the Google Checkout I think over the next year. And that’s only, only good news for us. I think it’s fair to say that the average consumer on iOS is still out indexing the average consumer on Android. However, that gap is closing. I think 6, 12 months ago, you saw that it would take many more users on Android to make same dollar amount of revenue as it in iOS. But this gap is narrowing to a factor of two or less as the Android marketplace continues to mature and continues to innovate frankly in what it allows on the advertising side.

Q: On your pipeline slate for Q4: Can you talk about the rationale behind picking this launch window in mid to early December versus picking the date where you could capture some of the holiday sales of phones?

CEO: Actually what happens, is a lot of people upgrade their handsets literally between Christmas and New Year, it’s a popular business present. So if you think about the timing when some will actually look to fill their devices with new content, it tends to be after Christmas because you tend to start downloading, so they actually think it’s pretty proven to be a successful strategy to aimed have titles live, call at mid-December onwards, and if you look at Gun Bros last year and our Q4 2010 in Q1’11 results you’ll see good amount of that bearing out actually historically.

Q:  I wonder, if you talk a little bit about the new Nokia and Windows Mobile platforms coming out, and kind of how you are thinking about those for next year in particular?

CEO: Sure, we were a launch partner with Windows Phone 7, I think we had three of the first 10 games that were live earlier this year, actually late last year. So Glu has been predict just supporter of any offering system restore front or any handset which we believe will have long-term global success. That’s why we were there for Amazon to the start, that’s why we were there actually Windows Phone 7 and Windows Phone 6 for that matter. We’re extremely bullish on the long-term prospects of actually Windows phone 8, they’re moving the developing language away from C sharp, which is what harmonized Windows phone7 with X Play. But Windows Phone 8 using C++, which means that is lot easier for developer like us, it’s already building for iPhone and Android, decoder for Windows phone 8. So all signs are that on the head to head basis, the ecosystem that Microsoft is building, is interesting in compiling for a lot of uses. It’s going to build the head of the enterprise market with the office compatibility, it can build a head up, head up gamer market with, X Play and Xbox connection in ecosystem Erratic. And so really comes down to how quickly you think that you’re going to ship devices, Nokia has 1,2,3 devices, they’re trying to get out just in time for Christmas, forecast for 2012 I think it certainly, it going to be nowhere near IOS and Android, but in the 2012, but as we’ve said on previous calls, we do think to Windows Phone 8, Windows phone 7, Nokia alliance stands a very good chance of being the strongest most viable third-party platform or third-place platform rather after IOS and Android.

Source of the Glu Mobile Q3 2011 conference call transcript is


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