After a thorough review process, Digital Angel’s management team, Board of Directors and advisors determined that the new strategic direction offers the most viable opportunity to build a sustainable business around the Company’s current operations and maximize shareholder value.
Our goal will be to develop and publish consumer applications and mobile games designed for tablets, smartphones and other mobile devices.
In the short-term, our goals will be to establish a new operational platform for the business and build a foundation for our brand. In the coming weeks and months, we will be taking small steps to properly position the company for what we believe is a big opportunity.
We anticipate the new Digital Angel website will become the centerpiece for our brand and a community center for our customers. We will establish a social media presence and use this as a channel to be in constant contact with the video gaming market, our customers, as well as our investors.
These are low CapEx investments that will be extremely valuable in our long-term strategy.
As we define and then achieve short-term milestones, we will use that momentum to reach our longer term goals. While we expect to design and launch our first mobile apps within a relatively short six-month window, we will begin looking to leverage the best benefits of being a public company and take advantage of the fragmented mobile apps market to begin our future.
There are hundreds of thousands of apps out there, but we will be able to differentiate ourselves through technical superiority and innovative game designs. Global gaming revenue in 2011 has exceeded $60 billion and within the gaming software market, mobile gaming is experiencing the largest growth opportunity and will represent a $7.5 billion worldwide market by 2015, tripling from $2.7 billion today.
We will leverage existing relationships and overtime establish ourselves as a top tier publisher in the mobile app space. The barriers to entry in this market are still small enough that we can enter with a very minimal cost of capital. The Company can utilize specific relationships and networks from prior positions to work with top independent development studios across the world.