This document discusses trends in the games industry and how consumer behavior is changing across different screens like mobile, PC, and console. It notes that (1) consumers are driving changes in business models, access to games, and value through free and paid options. (2) Big publishers are struggling to adapt to these changes where free-to-play has become a business approach rather than just a pricing model. (3) Community services and cross-platform play are becoming important for player engagement and monetization across devices.

1. Trends & Insights
Games vs Screens
Let’s lean back for a moment.
Peter Warman | CEO Newzoo | peter@newzoo.com
© 2012 Newzoo
Offenbach, November 2012
www.newzoo.com

3. Newzoo Company
All you need for your global business development.
B2B Marketing Tools
business decisions international partners

4. Newzoo | The Total Picture
Consumer, Transactional & Financial Data
Newzoo research portfolio
US EU* UK GER FR IT ES BE NL RU BR PL TR AUS JP CN
Several US
clients cannot be
disclosed.
© 2012 Newzoo 4

6. Dramatic Changes
The upside | What can happen in 6 months time
February 2012 November 2012

7. Dramatic Changes
The upside |SuperCell challenging EA for nr1 position
Based on total iOS (iPad/iPhone) revenues in the following countries © Newzoo/Distimo

8. Top 5 Games the Netherlands September 2012
Based on total iPad, iPhone and Google Play store revenues
Rank Game Last Month Publisher
1 Clash of Clans 2 Supercell
2 Ruzzle 4 MAG Interactive
3
Rage of Bahamut 3 Mobage, Inc.
4 Kingdoms of Camelot: Battle for the North 8 Kabam
5 Smurfs' Village
How many iOS games do1the Dutch Beeline Interactive, Inc.
download?
Rank Game Last Month Publisher
1
September 2012 | top 300 games
Clash of Clans 2 Supercell
2 Smurfs' Village 1 Beeline Interactive, Inc.
3
4
Hay Day
63,000 iPad Games a Day
Kingdoms of Camelot: Battle for the North
10
5
Supercell
Kabam
79,000 iPhone Games a Day
5 Tap Paradise Cove 4 Pocket Gems, Inc.
Rank Game Last Month Publisher
1 Rage of Bahamut 1 Mobage
2 Airport City 3 Game Insight International
3 Smurfs' Village 2 Beeline Interactive, Inc.
4 Blood Brothers (RPG) 45 Mobage
5 Ruzzle 4 MAG Interactive
© 2012 Newzoo 8

9. Dramatic Changes
The downside | What can happen in 6 months time

11. investors are lost
“social gaming is dead”
“social gaming was a bubble. Its gone now.”

12. game companies are extremly busy
“Which country? Which screen? Which business model?”
“How to market?”

13. Let’s lean back and…..
Try to understand change

14. consumers drive change

15. Consumers vs Screens
Newzoo Screen Segmentation Model TM
market growth

16. time payers
players money
© 2012 Newzoo 16

17. Key Growth Indicators | With Key Trends In Betweenpayers
time
2011-2012 2011-2012
+26% +36%
2011-2012 2011-2012
+8% +1%
players money
© 2012 Newzoo 17

18. Key Growth Indicators | With Key Trends In Betweenpayers
time
2011-2012 2011-2012 2011-2012 2011-2012
+18% +26% +17% +36%
2011-2012 2011-2012 2011-2012 2011-2012
+8% +8% +3% +1%
players money
© 2012 Newzoo 18

19. Key Growth Indicators | With Key Trends In Betweenpayers
time
2011-2012 2011-2012 2011-2012 2011-2012
+18% +5% +17% +14%
2011-2012 2011-2012 2011-2012 2011-2012
+8% +0% +3% +1%
players money
© 2012 Newzoo 19

20. Lean back and…..
Try to understand change

21. The 4 Key Trends
Key Growth Indicators | With Key Trends In Betweenpayers
time
bizz models
free
screens services
organisation
access
value
profit
players money

22. Key Take-Away
Why big publishers struggle amidst all the change
“free-to-play is not a
business model but a way
to run your business”
- Peter Warman, CEO Newzoo
22

23. F2P vs P2P on Mobile
Example: Infinity Blade I/II vs Kingdoms of Camelot
iOS Downloads iOS Revenues
US US
© 2012 Newzoo/Distimo
F2P: Downloads drop but revenues keep rising.
P2P: Price changes have big effect (April).
NB: iPad revenues overtake iPhone revenues for immersive mid-core games
23

24. Community Services Crucial to New Games
League of Legends | Competitions & Viewer Mode
24

25. Community Services Crucial to New Games
League of Legends | Competitions & Viewer Mode
8% growth in users
per month and even Watch Live Games
faster growth in
time per month
25

26. New Players with New Business Models
Dust 514 | CCP
CCP (Eve Online)
launches Free-to-
play PS3 game this
year.
One of the first
triple A Free-to-play
games on console
26

27. New Players with New Business Models
World of Tanks | Wargaming.net
Free-to-play MMO
surpasses $100M
revenues in 2012
Retail: Free-to-play
boxed MMOs
27

28. Cross-Screen Spending
Of (paying) players per IP US UK GER FR IT ES BE NL RU BR PL TR AUS
World of Tanks Bubble Shooter

29. Cross-Screen Spending
Of World of Tank players US UK GER FR IT ES BE NL RU BR PL TR AUS
4.1M WoT players also spend
money on games on their
>$100M 52% 49% phone or tablet
30%
7.9M WoT players spend money on
MMO games (WoT or any otherF2P
or P2P MMO).
MMO Spenders 7,900,000
Players 13,500,000

30. Key Take-Away
Paying players spend money across screens
“your paying players
spend a maximum of 30%
of their budget on your
single screen game”
- Peter Warman, CEO Newzoo
30

31. Lean back and…..
Think how we can predict, size and seize future
opportunities

32. Consumers vs Screens
Newzoo Screen Segmentation Model TM
All-Screen Gamers
21%
22%
14%
market growth

33. The Personal Screen | 2012
Newzoo Screen Segmentation Model TM
38.6M 3.97M
euro players
7% 50%
22% 13%
payers hrs/week
0.78M 8.80M

34. The Floating Screen | 2012
Newzoo Screen Segmentation Model TM
94.0M 2.64M
euro players
16% 33%
37% 10%
payers hrs/week
1.31M 6.65M

35. Lean back and…..
Think how we can help each other

36. We need each other
(to make sure these guys understand our stuff)

37. peter@newzoo.com

38. Trends & Insights
Games vs Screens
Let’s lean back for a moment.
Peter Warman | CEO Newzoo | peter@newzoo.com
© 2012 Newzoo
Offenbach, November 2012
www.newzoo.com