newzoo mobile trend report march 2012

Newzoo Trend Report | Mobile Games | March 2012

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games market research © 2012 Newzoo

Mobile Games Trend Report Why smartphone and tablet gaming is relevant for every game company.

console retail

console digital

pc/mac digital

casual websites

social networks

mobile devices

mmo games

pc/mac retail

version 1.0

connected TV

Newzoo Trend Report | Mobile Games | March 2012 © 2012 Newzoo | www.newzoo.com | 2

Mobile Games. Why smartphone and tablet gaming is relevant for every game company.

games market research

About this Newzoo Trend Report Mobile gaming is on everyone’s agenda. There are many reasons why... This report shows that the total number of Americans that play games on their smartphone, tablet or iPod Touch has now surpassed the 100 million mark, a year-on-year increase of 35%. Europe shows a growth of 15%, totaling 70 million gamers for seven key territories. Men slightly outnumber women in the US (52%) as well as in key European countries (55%). Growth rate in terms of time and money spent is significantly higher. In addition to the growing installed base of smartphones and tablets, three key drivers are accelerating growth of this games market segment: uptake of in-game purchases in free games, tablets and smartphones each creating their own market and the popularity of “mid-core” games. In 2011, mobile gaming took 13% of all time spent on games worldwide, totaling more than 130 million hours a day, and 9% of total money spent on games, grossing $5.8bn. Please check out our work in progress on an alternative way to segment the market on the next page. On the new iPad: The recent launch of the new iPad did not bring us the edgeless display and other innovations we were hoping for, but… the two main upgrades, processing power and resolution, dramatically improve the immersive experience of “core” games on that platform. Immersive experience and casual gameplay combined is what “mid-core” gaming is about. An effort to size this market is included in this report.

US UK Germany France Spain Netherlands Belgium Italy Brazil Mexico Russia China Korea

new in 2012

Poland Turkey

2011 portfolio

Peter Warman CEO Newzoo,

[email protected] +31 (0)20 6635816

linkedin.com/in/warman

New: Newzoo Mobile App All Black Books, Keynotes, Trend Reports Plus news from gamesindustry.com/blog

Our clients receive access to a complete batch of fresh consumer data on the 10th of April. If you also want to be the first to benefit, or have any other questions or remarks, feel free to contact me. In April also, we will be the first to have month by month PlayStore data.

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Alternative Market Segmentation From a consumers’ perspective

High-level split per screen: Demographics Age/gender Home/work situation Media consumption

Genre Casual Mid-core Core

Business Model Game fee Subscription Add-on content Virtual items Enhanced functionality Access Skillgaming/Casino

Distribution Physical Download Cloud

Payment method PayPal, CreditCard, Pre-

Paid, E-banking etc

Social Networks Casual websites MMOs PC/Mac Boxed PC/Mac Downloads Console Boxed

Console DLC TV Apps / Cloud

Handheld consoles

Tablets Smartphones (incl. iPod Touch)

© 2012 Newzoo | www.newzoo.com | 3

© Newzoo 2012

see Newzoo’s GDC keynote for more detail: www.newzoo.com/keynotes

http://www.newzoo.com/keynotes


Key Take-Aways. Number of US Mobile Gamers Jumps 35% and Passes 100 Million.



Key Take-Aways Fresh 2012 data

Number of Mobile Gamers jumps 35% in US year-on-year totaling 100 million The US counts 21 million tablet gamers Growth in EU, based on five countries is lower: 15% or 70 million mobile gamers Share of in-game spending continues to rise: 90% in US, 79% in Europe for both iPhone and iPad. 4.2 million iOS games are downloaded per day in the US. 2.4 million in key EU territories.

Review 2011 data Share of mobile gamers that spends money is highest in Asia (47%) followed by the US (36%). Europe and Emerging markets show lower “conversion” at 26%. A slight majority of paying mobile gamers is male. 58% in US, 65% in EU. 22% of American mobile gamers use mobile games as extension of a game played on a different platform.

Gamers on mobile phones, tablets or iPod Touch.

Mobile Gamers United States

Mobile Gamers Europe (UK, GER, FR, NL, BE)

100M March 2012

+35% YoY

Gamers on mobile phones, tablets or iPod Touch.

70M March 2012

+15% YoY

19M

69M

21M 18M

18M

48M

11M 8M


Mobile gamers: players & payers. As much as 47% of the Asian mobile gamers are payers (2011). games market research


US UK Germany France Spain Netherlands Belgium Italy Brazil Mexico Russia China Korea

US Europe* Emerging* Asia*

52%

75m

61% 72% 87%

80m 65m 140m

36%

27m | $2bn

26% 26% 47%

20m | €1.3bn 17m | $0.5bn 66m | $1.3bn

Players % of gamers

and absolute

Payers % of players

and absolute and spend

* As aggregate of the 7 EU countries mentioned


Key Demographics. 83% of American Paying Mobile Gamers are 10 to 35 years old (2011) .



US

Payers

Gender

Payers

Gender

Payers

Gender

Payers

Gender Emerging

Asia** Europe*


iOS Downloads & Revenues | Feb. 2012 In-game purchases take 90% of revenues in the US.



Downloads for top 300 free & paid games for iPod/iPhone and iPad

4,200,000 downloads per day

2,400,000 downloads per day

revenue share revenue share

iPad iPhone/iPod iPad iPhone/iPod

Source: Newzoo/Distimo Monthly Download & Revenue Data on top 300 free and paid games | www.iosdata.com | www.playstoredata.com

http://www.iosdata.com/

http://www.playstoredata.com/


Top Grossing on iPhone/iPod | Feb. 2012 Free, free, free! It’s free games that dominate the top 5.


1.DragonVale (Free) Backflip Studios

2.Temple Run (Free) Imangi Studios, Llc

3.Poker by Zynga (Free)

Zynga 4.Slotomania (Free)

Playtika Ltd

5.Where’s my water NimbleBit Llc

1.Poker by Zynga (Free) Zynga

2.Texas Poker (Free) KAMAGAMES Ltd.

3.Smurfs’ Village (Free)

Beeline Interactive, Inc.

4.DragonVale (Free)

Backflip Studios

5.Lords & Knights (Free) XYRALITY GmbH

Top Grossing iPhone/iPod Games February 2012 - US

Top Grossing iPhone/iPod Games February 2012 - Europe

2

MoM

1

3

8

9

1

MoM

2

4

3

8






Top Grossing on iPad | Feb. 2012 Europeans take traditional games to their iPads.


2.Slotomania HD (Free) Playtika, Ltd.

3.Mystery Manor (Free)

Game Insight, LLC 4.Modern War (Free)

Funzio, Inc.

5.Smurfs’ Village (Free) Beeline Interactive, Inc.

1.Smurfs’ Village (Free) Beeline Interactive, Inc.


3.Texas Poker (Free)

KAMAGAMES Ltd 4.Poker by Zynga (Free)

Zynga

5.The Sims FreePlay (Free) EA Swiss Sarl

Top Grossing iPad Games February 2012 - US

Top Grossing iPad Games February 2011 - Europe

1

6

8

4

7

2

4

3

6

1






Top Grossing in Mac AppStore | Feb. 2012 Aspyr & Feral dominate as publishers. Lots of big titles missing.

1.Civilization V: Campaign Ed.

Aspyr Media, Inc.

2.Tropico 3: Gold Edition Feral Interactive, Ltd.

2.Star Wars: KOTOR

Aspyr Media, Inc. 4.RAGE: Campaign Editor

Aspyr Media, Inc.

5.Call of Duty 4: MW Aspyr Media, Inc.

1.Tropico 3: Gold Edition Feral Interactive, Ltd.

2.Call of Duty 4: MW Aspyr Media, Inc.

3.RAGE: Campaign Editor

Aspyr Media, Inc.

5.Rome Total War Gold Ed. Feral Interactive, Ltd

Top Grossing MacGames February 2012 - US

Top Grossing MacGames February 2012 - Europe


1

13

2

-

3

18

1

-

9

4.Civilization V: Camp. Ed. Aspyr Media, Inc. 3





Consumers view on Role Mobile Games. 33% of US mobile gamers see mobile as a subsitute (2011).



Annelies in 't Veld Senior Manager Foreign Investments

City of Amsterdam | Economic Affairs [email protected], +31 (0)20 552 3204

Amsterdam, the perfect city for your game company

Four reasons why game companies such as PerfectWorld, Gamania and DeNA have chosen the Amsterdam Metropolitan Area for their European office. ■ Central location in Europe The Netherlands sits nicely and independently in between Europe’s largest markets: the UK, Germany and France and is known to be a perfect test market for new digital media products. ■ Excellent Infrastructure Amsterdam is home to the Amsterdam Internet Exchange, the world’s largest internet hub in terms of both traffic and members ■ Multilingual Workforce Amsterdam has always been very international in terms of people, languages and business. It is also easy to attract talent from other parts of Europe to spend some years in Amsterdam. ■ Financial Framework Many international companies, such as IKEA have set up their financial HQ in the Netherlands Please contact me to see what advantages apply to your specific situation.

Source: 2011 Newzoo Consumer Research | Newzoo Data Explorer


Reasons to download mobile games. Russians rely on friends, Americans go for price (2011).



Source: 2011 Newzoo Consumer Research | Newzoo Data Explorer

Gamesindustry.com/blog Aggregated market data

& investment news Smartly tagged

Gamesindustry.com B2B market place >400 companies Free to list your company

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The Mid-Core Market. Sizing and profiling the opportunity.



$21.5bn 2011E

€16.5bn 2011E

Mid-core market1)

$1.2bn €1.1bn

Total Market

21.6M 24.0M

13.1M 15.7M

Mid-core opportunity2)

$280M €260M

13.3M 10.2M

3.2M 3.6M

Spend

Players

Spenders

Spend

Players

Spenders

5.5%

23% growth

6.7%

24% growth

US Europe

Share of total market Share of total market

What is mid-core gaming? At Casual Connect Europe, Newzoo gave a keynote on mid-core gaming including an estimate of the size of this “opportunity” that combines an immersive experience and casual gameplay. These game are expected to particularly appeal to the older male demographic between 30 and 50 whose time becomes scarce. 1) The current size of the mid-core market is based on an analysis of people spending money on core genre games on PC/Console AND on casual, social or mobile games. 2) The growth potential is based on the assumption that mid-core games can limit the drop (e.g. 43% in Europe) in number of core gamers that occurs in the age group 30-50 compared to 10-20 year olds. The full keynote presentation can be found on www.newzoo.com/keynotes

newzoo mobile trend report march 2012

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