Results of a study that PlayFirst and Frank N. Magid Associates conducted that shows how tablet is emerging as a premium gaming platform. Visit PlayFirst's site at http://www.playfirst.com

1. Tablet And Smartphone Gaming Trends
CONFIDENTIAL AND PROPRIETARY © 2012 by Frank N. Magid Associates, Inc. Any
duplication, reproduction, or usage of this document or any portion thereof without the
written consent of the firm is prohibited.

2. Magid Media Futures™ Study Methodology
 Consulting service for Magid clients to help analyze, determine, and implement
product and marketing strategies
 Nationally representative online survey of 2,540 people, between the ages of 8
and 64. The sample is matched to the US Census. The study evaluates attitudes
and behaviors of media and entertainment consumers.
 Data was collected from March 19 through March 26, 2012.
 A high quality online research panel and data collection firm was used for recruitment
and data collection.
1 © 2012 Frank N. Magid Associates, Inc.

3. The Major Trends In Tablet And Smartphone Gaming 2012
 Tablet and games are made for each other: The average tablet gamer downloaded 20+ games last
year, paying for 7 of the games.
 Games are the top monetizable content on tablet: The tablet has become TV Jr. in the home and
games are at the center of the entertainment ecosystem on tablet.
 iOS remains premium platform for game audiences on tablet: iOS gamers on tablet and
smartphone are more likely to play games, purchase games and buy in-game virtual goods.
 In-game virtual good spending on tablet leads the way: The average in-game virtual good spender
on tablet spent $62 versus $25 from the average in-game virtual good spender on smartphone,
showing again the emergence of tablet as the premium game platform for monetization on mobile.
 Game downloads up 30%+ on smartphone from last year: Year-to-year trends show game
downloads increasing on smartphone platform, with free-to-play downloads increasing significantly.
 iOS leads in smartphone gaming: The iPhone user is most likely to play and pay for games on
smartphone.
 Tablet gaming with continue to grow among installed base year-to-year: A third of all tablet users
next year will likely be PAID tablet gamers, an enormous platform gone mainstream.
2 © 2012 Frank N. Magid Associates, Inc.

4. Tablet Gaming
3 © 2012 Frank N. Magid Associates, Inc.

5. Playing Games Is Now The #2 Most Popular Activity Done On
Tablets, Only Behind Accessing The Internet
Which of the following things do you do regularly (at least once per
week) on your wireless tablet? Select all that apply.
Access the Internet 67%
Play games 61%
Check personal email 60%
Watch video 54%
Use social networks 53%
Listen to music 51%
Get weather information 49%
Download and use apps 48%
Read books 42%
Get local news 41%
MMF 2012. Base: Those who own/use a tablet N=710
Q7.8 Which of the following things do you do regularly (at least once per week) on your wireless
4 tablet? Select all that apply. (RANDOMIZE 1-25) © 2012 Frank N. Magid Associates, Inc.

6. Games Are The Top Monetizable Content Category Found On Tablet
On Mobile Web In-App
25% Games
15%
Games
Music Music
Movies
Books
Books
10%
TV shows Movies
Video Magazines
Shopping TV shows
Magazines Video
Newspapers Sports
MMF 2012. Base: Those who own/use a tablet and access content N=692
5 Q7.10A What types of wireless tablet content have you paid for? Select all that apply. © 2012 Frank N. Magid Associates, Inc.

7. Average Tablet Gamer Downloaded 20+ Games In The Last Year
Free tablet games Paid tablet games
38%
Mean: 15 free tablet games download in the last year
Mean: 7 paid tablet games download in the last year
25%
21%
17%
15%
13%
12%12%
11%
8% 8%
7%
6%
4%
3%
2%
0 1-2 3-4 5-9 10-14 15-19 20-30 31+
MMF 2012. Base: Those who own/use a tablet and play games regularly N=378
Q7.16 How many free tablet games have you downloaded in the last year?
6 Q7.17 How many paid tablet games have you downloaded in the last year? © 2012 Frank N. Magid Associates, Inc.

8. iOS Tablet Users More Likely To Consume Paid Content
iOS tablet users Android tablet users
32%
iOS Paid Mean: 10 paid tablet games download in the last year
28% Android Paid Mean: 7 paid tablet games downloaded in the last year
23%
20%
14%
13%13% 13%
10%
9%
8%
7%
5%
3%
2%
1%
0 1-2 3-4 5-9 10-14 15-19 20-30 31+
MMF 2012. Base: Those who own/use a tablet and play games regularly iOS user N=174; Android user N=164
Q7.16 How many free tablet games have you downloaded in the last year?
7 Q7.17 How many paid tablet games have you downloaded in the last year? © 2012 Frank N. Magid Associates, Inc.

9. Demographic Breaks: Tablet Users And Paid Gamers Against
Total Internet Population In The United States 8-64
% Total Mention Paid download
Tablet users
(composition) tablet gamers
N-Size 2540 758 198
Male 49% 56% 57%
Female 51% 44% 43%
8-11 7% 6% 9%
12-17 10% 11% 11%
18-24 13% 15% 13%
25-34 18% 28% 29%
35-44 18% 21% 23%
45-54 19% 13% 11%
55-64 16% 7% 5%
iOS -- 52% 63%
Android -- 51% 57%
8 © 2012 Frank N. Magid Associates, Inc.

10. Future Of Paid Tablet Games
2012 tablet paid game downloaders: 26%
2013 projected tablet paid game downloaders: 31%
Do you intend to play games on your tablet in the Purchase tablet games in next 12 months?
next 12 months?
Yes No Maybe Not sure Yes No Don't know/not sure
6%
22% 34%
21%
48%
24%
45%
MMF 2012. Base: Those who have not played games on their tablet N=332
Those who did not pay for tablet games in the past year N=180
9 Q7.19 Do you intend to buy any tablet games in the next 12 months? © 2012 Frank N. Magid Associates, Inc.

11. 23% Of Tablet Gamers Are Paying For Virtual Goods Averaging
$62 Per Spender
% Who have bought digital/virtual goods for tablet
About how much did you spend in total on digital
or virtual goods in games on your tablet in the last
28% 26% 12 months
$0 6%
Yes No Don't know/not sure $1-$5 13%
Mean virtual good
spent on tablet: $62
$6-$10 6%
5%
$11-$20 13%
$21-$30 17%
23%
$31-$50 22%
$51-$100 8%
$101-$150 8%
72%
$151+ 8%
0% 20% 40% 60%
MMF 2012. Base: Those who own/use a tablet and play games regularly N=378
Q7.21 Have you ever bought digital or virtual goods in games on your tablet?
Q7.22 About how much did you spend in total on digital or virtual goods in games on your
10 tablet in the last 12 months?
© 2012 Frank N. Magid Associates, Inc.

12. Smartphone Gaming
11 © 2012 Frank N. Magid Associates, Inc.

13. Almost Half Of Smartphone Users Play Games Regularly On Their
Mobile Phone
Which of the following things do you do regularly (at least once per
week) on your wireless tablet? Select all that apply.
Access the Internet 59%
Check personal email 58%
Use social networks 48%
Get weather information 47%
Listen to music 46%
Play games 43%
Download and use apps 39%
Send instant messages 36%
Watch video 31% 52% iPhone
Get local news 29%
42% Android
MMF 2012. Base: Smartphone owner N=1107
Q169 Which of the following things do you do regularly (at least once a week) on your mobile phone?
12 Select all that apply. © 2012 Frank N. Magid Associates, Inc.

14. App Based Games Are Top Monetizable Content On Smartphones
On Mobile Web In-App
15% Games
Music
Music
5% Games
Movies TV shows
Video Video
Email Books
TV shows Weather
Books Maps
2%
MMF 2012. Base: Those who own/use a smartphone and access content N=992
13 Q188.5 What types of mobile content have you paid for? Select all that apply. © 2012 Frank N. Magid Associates, Inc.

15. Average Smartphone Gamer Downloaded 10+ Games Last Year
Free smartphone games Paid smartphone games
2012 Mean:11 free smartphone games download in the last year
58% 2012 Mean: 2 paid smartphone games download in the last year
14 free, 3 paid for iPhone gamers
10 free, 2 paid for Android gamers
21%
18% 19%
16%
14% 13%
7% 8% 8%
5% 5% 6%
1% 1% 1%
0 1-2 3-4 5-9 10-14 15-19 20-30 31+
MMF 2012. Base: Those who own a smartphone and play games regularly N=314
Q180 How many free smartphone games have you downloaded in the last year?
14 Q180.1 How many paid smartphone games have you downloaded in the last year? © 2012 Frank N. Magid Associates, Inc.

16. Smartphone Gamers Increase Downloads In Last 12 Months
Smartphone gamers
(% of Respondents)
2012: 13 Smartphone games
2011: 10 Smartphone games
Free Paid 11
7
3
2
2011 2012
MMF 2012. Base: Those who own a smartphone and play games regularly N=314
Q180 How many free smartphone games have you downloaded in the last year?
15 Q180.1 How many paid smartphone games have you downloaded in the last year? © 2012 Frank N. Magid Associates, Inc.

17. Demographic Breaks: Smartphone Users And Paid Gamers
Against Total Internet Population In The United States 8-64
% Total Mention Paid download
Smartphone users
(composition) smartphone gamers
N-Size 2540 1107 167
Male 49% 52% 52%
Female 51% 48% 48%
8-11 7% 4% 4%
12-17 10% 9% 14%
18-24 13% 18% 22%
25-34 18% 26% 27%
35-44 18% 21% 24%
45-54 19% 15% 6%
55-64 16% 8% 2%
iOS -- 35% 55%
Android -- 46% 35%
16 © 2012 Frank N. Magid Associates, Inc.

18. Future Of Paid Smartphone Games
2012 smartphone paid game downloaders: 15%
2013 projected smartphone paid game downloaders: 19%
Intentions of purchasing smartphone games Purchase smartphone games in next 12 months?
in the next 12 months
Yes No Don't know/not sure
54%
23%
10%
17% 17%
11%
More Less Same Not sure 67%
amount
MMF 2012. Base: Those who have downloaded paid games in the last year on their smartphone N=167
Q181 Do you intend to buy more, less or the same amount of smartphone games in the next 12 months?
Base: Those who have not downloaded paid games in the last year N=484
17 Q182 Do you intend to buy any smartphone games in the next 12 months? © 2012 Frank N. Magid Associates, Inc.

19. Half Of Non-Current Gamers On Smartphones Plan Or Are
Considering To Play Games In the Next 12 Months On Their Phones
Yes No Maybe Not sure
9%
28%
28%
35%
MMF 2012. Base: Those who have not played games on their smartphone N=290
Q183 Do you intend to play games on your smartphone in the next 12 months?
18 © 2012 Frank N. Magid Associates, Inc.

20. iPhone Non-Gamers Have a Greater Interest in Playing Games on
Smartphones in the Next 12 Months than Current Android Non-Gamers
Intent to Play Games on Smartphone in Next 12 Months
iOS Android
46%
37%
33%
28%
24%
18%
9%
6%
Yes No Maybe Not Sure
MMF 2012. Base: iPhone Users N=65; Android Users N=112
19 Q183 Do you intend to play games on your smartphone in the next 12 months? © 2012 Frank N. Magid Associates, Inc.

21. 14% Of Smartphone Gamers Are Paying For Virtual Goods
Averaging $25 Per Spender
% Who have bought digital/virtual goods for smartphone
About how much did you spend in total on digital
or virtual goods in games on your smartphone
in the last 12 months?
18% 11% $0 5%
$1-$5 27%
Yes No Don't know/not sure
4%
$6-$10 27%
Mean virtual
good spend on
$11-$20 14% smartphone:
14% $25
$21-$30 5%
$31-$50 11%
$51-$100 8%
$101+ 3%
82%
0% 20% 40% 60%
MMF 2012. Base: Those who own a smartphone and play games regularly N=314
Q184 Have you ever bought digital or virtual goods in games on your smartphone?
Q185 About how much did you spend in total on digital or virtual goods in games on your
20 smartphone in the last 12 months?
© 2012 Frank N. Magid Associates, Inc.

22. The Magid Pedigree
 Who We Are
Frank N. Magid Associates, Inc. is a leading research-based consulting firm with expertise in media, communications
and entertainment.
 Fifty Years and Counting: Since our first engagement with a local television station 50 years ago, we have been at the
forefront of innovation in the media, entertainment and communications industries.
 Coverage of Multiple Media Platforms: We boast robust practices across all media platforms including print,
broadcast and cable television, the Web, gaming and wireless.
 Exceptionally Qualified Team: Our team possesses PhDs and Master’s degrees in statistics, marketing, media,
engineering, journalism, anthropology, sociology, strategic communications and business, including analysts with
advanced capabilities in qualitative and quantitative research methodologies.
 Experienced Strategic Consultants: Our strategic consultants include past operators in the print, television, Web,
gaming and mobile industries.
 Global Coverage: Our team of 150 professionals operates out of offices in Minneapolis, Mumbai, New York, Los
Angeles, San Francisco, Chicago, Atlanta, Dallas and Cedar Rapids. Magid’s global network of partners extends across
44 countries to support our portfolio of international clients.
Mike Vorhaus
President, Magid Advisors
mvorhaus@magid.com
Andrew Hare
Senior Research Analyst
ahare@magid.com
21 © 2012 Frank N. Magid Associates, Inc.