This document discusses opportunities in the family-friendly gaming market segment. It notes that the global gaming industry is worth $137 billion and growing, with mobile gaming representing over half the market. Family gaming is an important segment as multi-generational gamers seek shared experiences, and gaming has become more socially acceptable. There are challenges around ethics and responsibility when targeting children, but also opportunities to create high-quality games families can enjoy together. Successful examples include Pokémon Go and Apple Arcade's curated selection. The document advocates for limiting violence, innovative monetization models, and harnessing technology to get kids active.

1. The business of
family-friendly gaming

2. What we’ll cover.
Why family-friendly is becoming an important market segment
What are the challenges (Ethics, Social Responsibility, Monetization, Competition)
What are the opportunities
Who’s doing it (well)
Wrap up and Q&A

3. Industry Overview
Part 1

4. 100$
Industry Size
$137 billion Global Games Industry in 2018
2.3 billion gamers
Mobile gaming represents 70B+ (51% of the market)
Mobile grew 13.3% ($16.2 billion from the year previous)
Mobile estimated to be $100 billion by 2021
Source : New Zoo

5. Another Big Stat
The video games market could become a
$300 billion industry by 2025.
Source : Global Data

6. The Audience
Hours spent per week
18-25 7.08
26-35 6.51
36-45 6.17
45-60 5.10
60+ 4.93
Avg 5.96
7.78
8.21
7.76
6.32
5.63
7.11
2018 2019
Source : Forbes / Limelight Networks

7. The Audience | Kids
66% of 8 - 12 play video games for an average of 2 hours per day (14hrs per week)
56% of teens 13 - 17 play video games for an average of 2.5 hours per day (17.5hrs per week)
Ages 2 - 4 play for 21 minutes per day (2.45hrs per week)
Ages 5 - 8 play for 42 minutes per day (4.9hrs per week)
Boys typically play video games more often than girls
Source : Center on Media and Child Health

8. Maturing Industry
A lot of consolidation by larger players
Top 25 companies are generating 80% of the
revenue*
Incumbents can spend more on innovation and
product development
Deep pockets marketing and UA (the real
battleground) not around quality of product

9. Still Vast
Opportunities
2.3 Billion potential customers (28% under 18)
The market changes, customer needs & behaviors
changes, technology changes.
New government regulations can change an entire
industry, open up new opportunities
The companies on top today are not guaranteed to
be on top tomorrow
But you can be sure people will still be playing games
(now and into the future)

10. External Factors
1) MULTI-GENERATIONAL GAMING
Previous generations of gamers (Gen X , Gen Y Gen Z) have children in their teens
and 20’s. All three of these generations have grown up playing video games.
Families and friend groups are seeking opportunities to engage with high-quality
mobile games that they can enjoy together and have shared experiences.
2) ACCEPTED FORM OF ENTERTAINMENT
Mobile gaming is becoming an accepted form of entertainment, sport and leisure.
Three generations of gamers
Social acceptance are popular gaming brands, growth of esports, college
scholarships for gaming, professional
Emerging entertainment channels dedicated to gaming (i.e Twitch and YouTube).
3) MASS ACCESSIBILITY
Everyone has a high-powered gaming device of their own.
2.3 Billion Gamers

11. Industry Trends
Parental Trends
92% of parents are letting kids play for 1hr per day
Found 94 percent of parents are concerned about risks
playing video game
More than 70 percent of parents are worried about
violence and sexual imagery
Source : MCaFee

12. What does it mean?
Mobile Gaming is becoming part of family-life
It’s acceptable form of fun and entertainment
Families want to find ways to have shared experiences
that are appropriate
Parents (moms) are becoming more involved in
monitoring and governing what games their kids are
playing

13. Social Responsibility
Part 2

14. Part of the market opportunity is to consider the social responsibility. There
are numerous studies now that discuss the positives and negative impacts
gaming has on children. Using this data in smart and innovative ways could
be both good for business and doing the right thing

15. New Study: Electronic Gaming and
Psychosocial Adjustment
Pediatrics: The Official Journal Of The American Academy of Pediatrics
K. Przybylski, (Prezbilski) Phd., conducted a study of “2436 male and 2463 female
young people, ranging in age from 10 to 15 years.
RESULTS:
Low Level of game engagement - 1hr or less = Positive. Associated with high levels
of life satisfaction, prosocial behavior and lower amounts of externalizing or
internalizing problems
Mid Level - 2hr = Neutral. No effects were observed for moderate players
compared to non-players
High Level - 3hr or more = Negative. Associated with low levels of life satisfaction,
prosocial behavior and higher amounts of depression & aggression

16. Positive
Problem Solving and Logic
Hand Eye Coordination (fine motor and spatial
skills)
Planning and Resource Management
Multitasking (many variables at once)
Quick thinking (analysis and decision making)
Strategic thinking
Perseverance
Pattern Recognition
Negative
Increased Aggressive Thoughts (too much
simulated violence)
Addiction
Harmful to the Brain (Study on Call of Duty It appears
that this causes an increase in the amount of gray
matter in their caudate nucleus, while it decreases in the
hippocampus. Reduced gray matter in the hippocampus
has previously been linked to higher risks of brain
illnesses, including depression, schizophrenia, PTSD, and
Alzheimer’s disease.)
Rewards wrong values
Decreased academic achievement
Decreased concentration
Positive & Negative Effects
Source : Article by Ronaldo Tumbokon, April 28, 2019

17. The Opportunities
Part 3

18. Create high-quality gaming content where families and (and friends)
can come together to have shared multi-generational, mobile gaming
experiences - Create games they can play together
Create games that gamers will love and parents will endorse.

19. Comparable
Industry: Film
One model to look at when it comes to mid-core,
family-friendly content is the film industry. The top
grossing 2018:
1) Black Panther
2) Avengers Infinity
3) Incredibles 2
4) Jurassic World FK
5) Deadpool 2
6) The Grinch
7) MI : Fallout
8) Ant-man and the Wasp
9) Solo - Star Wars
10) Venom

20. Top Family-Friendly
Multigenerational Mobile
Games?

21. PokeMon Go
● $2.5 Billion in revenue
● Audience is 53% Women
○ 13-17 - 22%
○ 18-29 - 46%
○ 30-50 - 25%
○ Over 50 - 6%
● A game everyone can play
● It encourages exercise
● It creates friendly competition
● Brings people together to have shared
experiences

22. Apple Arcade
● Subscription based platform
● 100 new games
● Play across iPhone, iPads, Mac and Apple TV
● Curated based on originality, quality, creativity,
● Games that appeal to players of all ages.
● No ads, no tracking or additional purchases

23. Guideposts to
Consider
• Innovate new monetization models
Retail purchases (less impulsive)
Subscription
Premium Packs
• Limit gameplay
• Cartoon Violence (no gun violence?)
• Innovative uses of technology (get kids out of the house)
These are just a few but I’m sure you will come up with
creative and innovative ideas

24. RED Games Co.
Two game launching in September on Apple
Arcade
LEGO Brawls – Battle Royal
Super Mega Mini Party – Hyper casual,
competitive multiplayer

25. RED Games Co.
Current Games
BeyBlades Burst – Hasbro
● Realtime Multi-user Battle
● InStore retail purchase
Crayola Create and Play - Crayola
● Developmental Play and Learning
● Subscription Platform

26. Wrapping Up | Q&A
Part 4