The Power of GamesTrends in 2013

Wanda MeloniM2 Research

CES - Games SummitLas Vegas, January 10 2013

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The Trends in 2013

Mobile Markets

Monetization Mechanics

Engagement

3

Mobile

4© 2012 Newzoo 4Source: Newzoo Mobile Trend Report, October 2012

95M AmericansSmartphone, Tablet or Handheld Console Gamers

Growth of segmentsIn 6 months: March 2012 – September 2012

+9%

+23%

-8%

overlap

Tablets, Handhelds & Smartphones

Market Size = $9 BillionGrowth Rate = 34%

5

27M96M

Payi

ng G

amer

s

22M 21M 14M 2.0M 4.0M 11M 12M 26M79% 68% 62% 53% 62% 69% 77% 70% 71%

Source: Newzoo , September 2012 Consumer Research * Source: Newzoo, March/April 2012 Consumer Research Data

33%32M

15M* 7.5M*69% 68%

38%22M 30%

6.3M 23%3.2M

20%0.4M

22%0.8M

35%3.8M 31%

3.8M 25%6.4M

37%10M

69%

34%5.2M

Non

-Pay

ing

Mob

ile G

amer

s

# mobile gamersaged 10 - 50

share ofall gamers

35%2.5M

7.1M65%

28%2.1M

Phone & Tablet Gamers and Share of Paying Gamers (aged 10 to 50)

Mobile Gamers per Country

In growth markets such as Turkey the

share of male payers is highest: 70%

A small but growing share of mobile gamers spends money

BR TUR POLUS UK GER FR BE NL IT ES RU AUS

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Indie Development

Graphics – Confetti Games

Platforms - Supercell

Genres – Red Robot Labs

Accessible Tools

7

Markets

8

Games now reach more people regardless of age, demographics or geography

Games are Universal

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Kids and Games

Kids are quickly adopting mobile devices as a preferred game platform.

TABLETS: • 45% - kids have played games on a tablet• 79% - play on an iPad

MOBILE PHONES: • 64% - kids have mobile phones• Girls are playing more on mobile devices than boys

• Kids are engaging with multiple screens simultaneously• Not just at the PC, but on the living room couch as well• Mobile devices are changing the way kids engage with their games

Source: Kidsay, M2 Research

1. Kids influence over 75% of video game purchases2. Over 93% say they play games online

10Source: Kidsay

Boys: 12-15Boys: 8-11

Girls: 12-15Girls: 8-11

Kids and Games

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Women and Games

• More women playing games = 47% in US• They are playing on mobile devices = 60%

Sources: ESA, EEDAR, BigFish, Game Developer Magazine

As an industry – 1. Women currently comprise less than 15% of game development2. More opportunity to market and support them as consumers

Big Fish> Texas Hold’em Revenue – 65% women

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Monetization

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Monetizing Methods

• In game currency • Micro-transactions • Ad-based • Offer exchange• Subscriptions• Gamification style rewards

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November 2012iOS – 77% FreeAndroid – 91% Free

There are over 35 companies focused on monetization

14Source: Playnomics, Player Engagement Study, Q4 2012

Player Engagement By Country

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Trends and Future

• Benchmarking and Analytics more important for monetization:– A/B testing getting serious

• Getting it rights means big money

• More start-ups dedicated to either measuring or improving monetization

• Software providers getting in the act– DeNA MOBAGE, Unity Union, Activision (use of

swrve).

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Mechanics

Mechanics – Non Gaming

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GameplayTransparencyInfinityCompetition

CommunicationFeedbackSelf-Expression

RewardsScoresLeaderboardsPrizes

ViralitySharingSocial networkingReferrals

CreativityStrategySelf-EducationUGC

Gamification is more about user interface and engagement

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Gamification

Total Market in 2012 = $242 million • Up 150% from 2011

• Consumer market – 62%

• Enterprise market – 38%

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Industry Segmentation

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Engagement Loyalty Virality CommerceUnique Visits

100-150% Repeat Visits

150-200%

Social Interactions

250%+ Purchase 100-150%

Page Views 100-150% Referrals 250%+ Social Shares

250%+ Virtual Goods

100-150%

Time on Site

100-150% Recruits 250%+

Source: M2 Research - Gamification Metrics Survey, June 2012

What will resonates beyond the hype: 1. Dedicated budgets

2. Audience research and testing

3. Support engagement at the development level

4. An understanding of game design and theory

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Thank you!

wanda@m2research.com

Please email me for a copy of this presentation