webinar on digital gaming market & investment trend with insight alpha
DESCRIPTION
Webinar on Digital Gaming Market & Investment Trend With Insight AlphaCompleted webinar url: http://mergeralpha.com/webinar_details.php?id=MzA=TRANSCRIPT
WELCOME TO WEBINARON
DIGITAL GAMING MARKET & INVESTMENT TREND
Breaking New Ground: How Innovation in Digital Gaming Market will Drive the Next Wave of Growth
http://mergeralpha.com/webinar_details.php?id=MzA=
KABIR AHMAD
Research, Consultancy, and Training Professional
•Digital Gaming•Gamificaiton•Wearable Technology•Cloud Technology •Big Data•Digital Business •Mobile OTT Business
WEBINAR AGENDA
Digital Gaming Market Overview: Technology, Platform, Market Value, Business Model
Industry Transition: Middleware, Wearable
Investment Trend in Gaming: Deal, VC, M&A,
Value vs. Volume Region and Investment Consideration
Opportunity Sectors in Gaming and Key Investment Consideration
ARCADE GAME
80 & 90’s Decade
COMPUTER GAME
FEATURE PHONE GAME
CONSOLE GAME
Game is Alive It’s Just the Platform, Technology and
Consumption PatternNew Era of Digital Gaming
SMARTPHONE
TABLET
ONLINE
SOCIAL AND LOCATION
SOCIAL CASINO
USER GENERATED CONTENT
CONVERGENCE AND CLOUD
GAMIFICATION
WEARABLE
DIGITAL GAME
A digital game is an interactive program for one or more players, meant to provide entertainment at the least, and quite possibly more. An adaptation of traditional game systems,with rules, player representation, and environment managed through electronic
means
TREND
PLATFORM / TECHNOLOGY CONSUMPTION / MONETIZATION
o Virtual Reality o Augmented Realityo Gamificationo Multiplayer
Online/Social & Localo UGC o Cloud & HTML 5o Mobile Messaging
Platform
o Freemiumo Free to Play & In-game
Microtransaction o In-game Advertisingo Advergaming
COMMUNAL GAME PLAY TREND & OTT DELIVERY
2014 + • Paying user 1.07%• ARPU 13 times• ARPPU 10 times
DIGITAL GAME MARKET VALUE
o 60% Software Market o 40% Hardware Market
Geography:o Asia – 65%o Europe - 15%o US – 12%o ROW – 8%
Emerging Marketo Latin America o South East Asia o Middle East
2014 2015 20170
20
40
60
80
100
120
$ Billion
23.6% CAGR
PLATFORM REVENUE SOURCE
o Mobile (including Tablet) – 60%
o PC – 24%o Console – 12%o Wearable – 4%
o In-Game Transaction – 40-50%
o Download – 20 – 30% o Adverts – 10 – 20%o Data Transmission – 2-
5%
GAME SECTOR
DEAL & VALUE
VIDEO GAME M&A
IPO BY COUNTRY
SECTOR WISE M&A TREND
VC TREND
OPPORTUNITY CHART
VALUE VS. VOLUME REGION
VALUE VS. VOLUME REGION
Value Driven Volume DrivenNature Large Long Term
NicheMass Market Growth
Platform Niche Console, MMO Online
Mobile, Social and Middleware
Users thousands to tens of millions
thousands to hundreds of millions
ARPU $-$$$ (High) ¢ - $$ (Low)Costs $ millions to tens of
millions$ tens of thousands to millions
Operating profit negative to 20%+ negative to 70%+Growth rates negative to <10% negative to 100%+Business model unit sales,
subscriptions, virtual goods
unit sales, free, virtual goods, ads
KEY CONSIDERATION
• Portfolio company M&A to major games
consolidators
• Early to late stage with focus on cross-platform
• Investment in social/casual strategic roll-ups
• Follow-on investments in portfolio companies
pivoting from mobile to cross-platform mobile-social
to middleware and wearable
• Selective growth equity investment in online/mobile
tech and gamification strategic roll-ups
SELECTING PROFITABLE SECTOR
o Multiscreen endeavor especially covering mobile, tablet & social platform, and wearable. o It is not the console; it’s mobile that will dominate living roomo The middleware technology market will grow rapidly in coming years including consumer adoption. Most likely gamification and game technology software business will end up as B2B SaaS model generating volume driven business. It’s the perfect time of investing out in such endeavoro Wearable gaming like VR will boom but need to be careful
o Real money gaming such as social casino gaming is a growing trend in terms of consumer adoption. Considering the legality of particular market, the sector is good for short term investment under portfolio strategyo Investors need to consider value vs. volume driven market. Value driven market will be better for small term investment expecting better return in shorter timeframe whereas large investment should pour into volume driven emerging markets like Brazil, Russia, China, and some sectors for Korea & Japan.o Investors need to consider the revenue generating business models such as freemium and free-to-play with virtual goods.
