Digital Kids San Francisco Sept. 2015Michael Cai, Interpret LLC

Consumer Tracker Sampling Methodology

2

Respondent Requirements

Survey Modules

Survey Conducted February to March 2015

Respondents

Research Coverage

3

Download Portable Games

Connected Consoles

Online Casual

Gaming

DownloadPC Games

(Steam, etc.)

Social Network Gaming

Sub-based MMO

F2P MMO

VirtualWorlds

Smart Phone Apps

iPad andTablet

Gamer

Physical Media

Agenda

• Entertainment Wallet Share

• Device Timeshare

• Brand Mindshare

• Gaming Motivations

• Top Mobile Genres/Titles

• Mobile Gaming/Spending Behavior/Attitudes

• Console Gaming

4

Entertainment Walletshare

5S18a Please indicate how much money you spent for your children 6-12 on each of the following in the past 6 months.

$142.57

$97.57

$59.75

$43.52

$36.18

$34.00

$32.88

$13.38

Six Month Kids WalletshareN=400 Parents of Kid Gamers 6-12

Video games

Toys

Electronic entertainment devices

Movies in theaters

Books

Entertainment brandedmerch excluding toys or books

Movies/TV shows at home

Music

Total Average Spend On Entertainment In The Past Six

Months:

$460(recall period includes holiday season)

32% of parents spend an average of $34 on game-related merchandise.

Device Timeshare

6S5b And of the hours your children 6-12 spend playing videogames during a typical week on devices you own, how many hours are spent playing videogames on each of the game systems you own?

Average Weekly Gaming HoursN=400 Total Gamers 6-12

10.97

Timeshare Across DevicesN=400 Total Gamers 6-12

Top of Mind Play Brands And Games

7G0 When you think about playing in general, what three brands come to mind right away? G1 When you think about games you play online, what three games come to mind?

Play Brands N=400 Total Gamers 6-12(New question in Wave 4)

Games N=400 Total Gamers 6-12

Angry Birds Candy Crush MinecraftFarmvilleCall of Duty Bejeweled Club Penguin Mario

Blue Text= Wave 3 Data

Wave 4 Wave 4

Reasons to Play

8G13 Kids like video games for different reasons. Now please think about why you like video games and rate the importance of each of the following reasons to you.

2%

4%

5%

3%

6%

7%

7%

6%

7%

10%

7%

8%

1%

4%

4%

3%

5%

3%

3%

3%

6%

6%

6%

8%

Somewhat Unimportant

Not Important At All

Fun

Create things

Explore a new world

Improve at something

Play with my friends

Learn new things

Play as familiar characterfrom books and movies

Solve puzzles

Play games with my parents

Feel I’m part of a story

Compete with other players

Share things thatI created or earned with friends

19%

30%

31%

35%

27%

32%

27%

30%

27%

26%

25%

28%

70%

47%

44%

39%

45%

38%

41%

38%

37%

36%

37%

33%

Somewhat Important

Definitely Important

Reasons for Playing Video GamesN=400 Total Gamers 6-12

• Children 6-9 are more interested in creating things and playing with parents as reasons to play video games than their 10-12 counterparts.

• Children 10-12 are more likely to want to compete with other players and play with their friends than younger gamers.

• Boys are more likely to play games to create things, share with friends, and compete.

• Girl gamers are more interested in playing with their parents and to solve puzzles.

Top Mobile Genres

9ST3 What types of games do you play on a smartphone, iPod Touch or tablet? Pick all the ones you play on smartphone, iPod Touch or tablet.

42%40%

29%

22%19% 19% 18% 18% 17% 17%

Matchingpuzzle games

Physics puzzle games

Runner games

World-buildinggames

Farm/city management

games

Fashion/Dress-up/Makeover/Shopping

games

Life/petsimulation

games

Drawinggames

Educational games

Hiddenobject/mystery

games

% Playing Each Genre On Smartphone Or TabletN=338 Mobile Gamers 6-12

Boy gamers 10-12 are much less likely to play Runner games than boy gamers 6-9 and girl gamers 6-12

66%

52%

30% 29% 28%25% 24% 21% 21% 20%22%

17%12%

9% 7%

17%

5%11% 12%

8%

Angry Birds Candy Crush Saga Fruit Ninja Temple Run Angry BirdsStar Wars

Minecraft PocketEdition

Angry Birds Space Temple Run 2 Candy CrushSoda Saga

Cut the Rope

Top 10 Mobile Titles Ever and Currently PlayN=338 Mobile Gamers 6-12

Ever Played

Currently Playing

-20%-19%

-5%

-9%

+4%

-10%

Top 10 Mobile Titles – Play

10

St9a Which of the following mobile games have you ever played? ST9b Which of the following smartphone , iPod Touch, or tablet games are you currently playing? ST9b Which of the following mobile games are you currentlyplaying?

Since last wave, fewer gamers indicate that they are currently playing games from the Angry Birds franchise. Minecraft, however, has grown in engagement.

%/% = Major change in percentage from Wave 3 to Wave 4 Data

+6%

Minecraft Engagement

11G9m1 You mentioned being aware of the game Minecraft. Have you ever played Minecraft? G9m1a How many hours a week do you play Minecraft? G9m2 On which device(s) do you play Minecraft?

34%

9%

8%

49%

I play it now

I used to play it

I've never played it,but I've heard of it

Not aware of it

35%

30%

20%

19%

19%

13%

10%

10%

10%

6%

5%

Xbox 360

Desktop or Laptop PC

Android tablet

iPad

iPhone

PlayStation 3

Xbox One

Desktop or Laptop Mac

Android phone

PlayStation 4

PlayStation Vita

On Which Device(s) Do You Play Minecraft?N=172 Current or Recent Minecraft Gamers 6-12

Minecraft ExperienceN=400 Total Gamers

Minecraft Hours Per WeekN=136 Current Minecraft Gamers

4.9Among all gamers, 15% of the total gaming hours per week (1.66 of 10.97 hrs.)

is spent on Minecraft.

Awareness Sources of Mobile Game Apps

12

ST12 How do you hear about game apps to download onto a smartphone, iPod Touch, or tablet? ST12a What is the one main way you hear about games to download onto a smartphone, iPod Touch, or tablet? ST12a1 How often do you search for new games to play on your smartphone, iPod Touch, or tablet? Please select the answer that is closest to your actual habits.

27%

13%

15%

10%

7%

4%

9%

9%

Friends

Family

Ranked lists in the app store

Featured games in the app store

YouTube

Ads or commercials on TV

Reviews in the app store

App store search feature

Sources Of AwarenessN=338 Mobile Gamers 6-12

Main Source Used

14%

7%

19%

12%19%

9%

21% Several times a day

Once a day

Several times a week

Once a week

Several times a month

Once a month

Less than once a month

Searching FrequencyN=338 Mobile Gamers 6-12

13ST12_0 For the smartphone, iPod Touch, or tablet that you play games on, who picks the games that you play?

Who Select Mobile Games to Download

27%

29%

26%

11%

7%

I always pick out the games

I mostly pick out the games, but my parentspick out a few

My parents and I both pick out the gamesabout the same amount

My parents mostly pick out the games, but Ipick out a few

My parents always pick out the games

Who Picks The Mobile Games You Play?N=338 Mobile Gamers 6-12

30%

29%

19%

22%

Males 6-9

Males 10-12

Females 6-9

Females 10-12

Mobile Spending In Past Six Month

14S7 Now, please indicate whether or not you spent money on your children 6-12 on the following gaming activities in the past 6 months.

% Who Spent For Mobile In-game Purchases By Age And GenderN=91 Mobile In-game Spenders

23% spent for IAP in the past

six months

14%

14%

15%

15%

22%

22%

26%

26%

28%

37%

When I read/watch a good review about the game

When I can't beat other players

When the game's going too slowly

When I have to wait for a period of time before I can play again

When I hear other people are playing the game

When there's a sale

To customize my character

When I cannot pass a level

When I can't play the rest of the game unless I buy it

To get a special item

Mobile Item Purchase Drivers

15ST25 When do you usually ask your parents to spend money for a mobile game (e.g. new characters, skins/clothes, energy, new maps)?

I Ask My Parents To Spend On In-Game Items When…N=210 Mobile Gamers Who Requested Parents To Spend Money 6-12

% Asking for Mobile In-game Items PurchaseN=338 Mobile Gamers 6-12

38%

62%

I never ask my parents tobuy stuff for me for mobilegames

I ask my parents to spend onmobile games

68%

24%

8% 7% 5%

My child does not know mypassword/credit card info, and

has to ask me to make eachpurchase for them

My child uses a prepaidgift/gaming card to spend on

mobile games

My child knows mypassword/credit card info, andcan make individual purchases

without limit

My child knows mypassword/credit card info, buthas to ask me for permission

before each purchase

My child knows mypassword/credit card info, andcan make individual purchases

within a limit I give them

Password Policy For Kids Mobile GamesN=160 Parents of Mobile Game Spenders 6-12

16

ST18p1 For your kids’ mobile games (smartphone, iPod Touch, or tablet), how would you prefer to pay for these items? ST18p0 How are purchases made in your household for your child’s mobile games? G19Allowance Do you give your child a set weekly or monthly allowance specifically for video games? If so, please specify the total allowance you give them per month.

Parent Control of Mobile Game Spending

20%

80%

Gift card/spendingaccount

Authorize eachpurchase separately

Pay Preference For Kids Mobile GamesN=160 Parents of Mobile Game Spenders 6-12

17G19 Do you give your child a set weekly or monthly allowance specifically for video games? If so, please specify the total allowance you give them per month.

Gaming Allowance

14%

15%

71%

Yes, I give them an allowance specifically for video games, itamounts to this much per month

No, I give them a general-purpose allowance, it amounts tothis much per month

No, I don't give them any allowance

Average gaming allowance: $37.75

Average general allowance: $24.66

Average Monthly AllowanceN=400 Parents of All Gamers 6-12

(15% M /14% F)

(19% M /11% F)

$20.46

$52.50

$17.56

$46.74

$32.57

$22.64

$16.50

$25.92

Males 6-9 Males 10-12 Females 6-9 Females 10-12

Average Monthly Allowance By Age And GenderN= 50 Gaming Allowance Receivers, 60 General Allowance Receivers

Gaming Allowance General Allowance

Top 10 Console Games

18R9a1 Which of the following console games have you played in the last 6 months?

29%

17%16%

15%

13% 13% 12%

11% 10% 10%

Minecraft Call of Duty:Advanced Warfare

Call of Duty:Ghosts

Grand Theft AutoV

Mario Kart 8 Disney Infinity LEGO Star Wars Just Dance 2015 LEGO Batman 2:DC Super Heroes

LEGO Batman 3

Top 10 Home Console TitlesN=331 Console Gamers 6-12

+10%

-5%

%/% = Major change in percentage from Wave 3 to Wave 4 Data

Minecraft has not only gained mobile gamers, but grew in home console gamers as well, as indicated by the 10% increase in gamers.

Top Console Games by Demo

19R9a1 Which of the following console games have you played in the last 6 months? *-Caution: Low Base Size

29% 26% 30%36%

28% 29%34%

26%

44% 48%

32%46%

46%44%

28%

10%

29%

6%

21%21%

16%

11% 6% 2%

19%

36%

22%

17%

9% 3%

23%18% 19% 18%

26% 26%15%

51%

26% 27%

Minecraft Call of Duty:Advanced Warfare

Call of Duty:Ghosts

Grand Theft AutoV

Mario Kart 8* Disney Infinity* LEGO Star Wars* Just Dance 2015* LEGO Batman 2:DC Super Heroes*

LEGO Batman 3*

Top Home Console Games By Age-GenderN=Among Console Gamers Playing Each Game in Past 6 Months (Varying Base)

Males 6-9 Males 10-12 Females 6-9 Females 10-12

Questions?

20

Yuanzhe (Michael) Cai蔡元喆

SVP of Research, Games and TechnologyP: 310.981.4754F: 310.981.4771

www.interpretllc.comTwitter: @mycai | @InterpretLLC

michael.cai@interpretllc.com