It's trite to say that the Internet has transformed the world forever and it's also a very obvious statement. However, the ripples of the prolific Internet continue to have a tsunami like effect on all aspects of life and have indeed transformed the very nature by which society interacts. The Internet has evolved from the "Internet" as we knew it to a core and mission critical facet of global infrastructure. Its importance is no different nor less significant then the infrastructure of roads and highways that make modern day transportation possible and this social medium has become the backbone of human interaction around the world.
The modern population has become accustomed to instant access, on-demand, and interaction based on each individual's own terms. We are gravitating away from products sold in a traditional consumer packaged goods manner to instant digital delivery. Our consumption of media has been completely transformed, if not revolutionized. Young children today can't fathom the concept of a music CD and even most adults will admit to not having purchased music in a physical form in years.
Our digital evolution may have commenced with music but we have traveled a great distance since then and have progressed to consuming all forms of media digitally: music, television, movies, maps, photographs, and, of course, video games. The era of physical access to media is fading into history and is being displaced by our desire and need to access all of our media on-demand from any device at any time. As consumers, we want the media of our choice when we want it and where we want it.
We are also undergoing another incredible transformation: we are moving from the concept of the 'personal computer' to an era of 'personal computing'. We expect to be able to access information immediately, at our fingertips, on any device that has a screen and assume it is connected to the internet. We are stepping away from our computers more and more and utilize everything from smart phones to netbooks to tablets for our computing, information, and entertainment needs.
I find it ironic that one of the largest and most expensive screens in our lives doesn't provide the personal computing interactivity that we expect from all of our other interfaces. However, Intel is changing that through the Atom core based media processor. This media processor is a full system-on-a-chip and is powering the next generation of set-top boxes, televisions, blu-ray players, and other CE devices. With Intel, the average consumer electronics device now has a microprocessor in it and is always connected to the Internet thereby opening the door to a limitless world of possibilities, and changing the large screen television experience forever.
So, what does all of this mean for TransGaming? As a company in the digital media space, we live and breathe the digital universe and are also working to define some of the digital future. Our digital distribution segment, including our Mac games portal, GameTreeOnline, is becoming an increasingly important factor to our business. We are leveraging our digital distribution expertise, our enablement technologies, and our extensive relationships in the electronic entertainment industry to launch our newest initiative, GameTreeTV. We are working closely with Intel to revolutionize the digital home with GameTreeTV and this digital offering will deliver high value games, on-demand, to a global consumer electronics audience.
TransGaming is working closely with cable operators, managed service operators, OEMs, and CE device manufacturers to deliver modern-day gaming to platforms based on the Intel CE media processor and we are working hard to making video games ubiquitous. For the consumer, GameTreeTV provides access to an ever-growing library of rich electronic entertainment content. For content creators, these new channels generate new revenue streams by leveraging content developers' existing game assets through the GameTreeTV platform. For CE manufacturers and managed service operators, they get access to brand new revenue streams in the hottest leisure entertainment industry today.
The GameTreeTV opportunity itself is big. In fact, it's massive. On May 11th (2010) at the Intel Investor Meeting, Paul Otellini, Intel's CEO, predicted that Intel will be shipping a billion chips per year in 5 years. Of that, Intel expects to be shipping 250 million CE media processor chips per year, as referenced in Eric Kim's presentation (Senior Vice President and General Manager of Intel's Digital Home Group). The Intel CE media processor market represents our total addressable market so, with the massive size of this market, you can see why we're so excited. I would also go so far as to say that Intel is also excited about what TransGaming brings to the table since video games truly demonstrate the full power and capability of the Intel CE media processor. Both Paul Otellini and Eric Kim referenced TransGaming in their investor presentations. Take a look at both here:
The digital evolution converges with TransGaming's core competencies and where we believe consumer behavior will be in the near future. With 250 million Intel CE chips expected to be entering the market per year, within a few years, we expect that the transition to the digital home is going to represent a sweeping transformation and will have a revolutionary impact. TransGaming is playing the role of enabler and catalyst as we provide a comprehensive broadband based gaming platform for the next generation of digital home devices/electronics. GameTreeTV is expected to launch before the end of the year with rapid market penetration into 2011 and I, personally, can't wait to become a consumer of this incredible product offering.
Regards,
Vikas Gupta
CEO & President