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2012 Country Summary Report

Featuring fresh research results on The US Games Market

US

Wybe Schutte | Manager New Business | wybe@newzoo.com Peter Warman | CEO Newzoo | peter@newzoo.com November 2012 2012 Newzoo | www.newzoo.com

US Summary Report

Fresh data on the gaming market in the US

About this US Summary Report This report gives a high-level overview of the US Games Market based on fresh research and analysis of Newzoo and partners. Find out where the growth will be in the US and how the games market develops. Most of the data is derived from our Newzoo Data Explorer that our clients use to crossanalyze over 200 topics across all business models and market segments. This document also includes data plotted on our new Screen Segmentation ModelTM comparing the US with Europe across the typical screens that consumers use to play games. Content of the report 1. Overview of the market 2. Key trends: EU vs US 3. Gamers vs Screens: EU vs US 4. Mobile gaming 5. All research topics 6. Subscription offer 7. Newzoo & Contact

Newzoo We combines Consumer, Transactional & Financial data to provide our clients with The Total Picture and Client-Specific Business Insights required to make smart strategio, development and commercial decisions. Find more info and free stuff on www.newzoo.com.

Peter Warman CEO Newzoo, peter@newzoo.com +31 (0)20 6635816 linkedin.com/in/warman

2012 Newzoo

High-level overview of players, time and money

1. US Games Market | 2012

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Casual game websites very popular

72% of 157M US Gamers

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Consoles attract most game time

40% of game time spent on Console & PC/Mac

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Mobile games spending continues to grow

Consoles take 1/3 of money incl. second-hand, import, DLC

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Monitoring & Understanding Change

2. Key Trends

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Monitoring Change | KPIs

To size and seize future growth opportunities

Most reports on the games market focus on number of players and/or money. To monitor and understand the changes in the games market this is not enough, especially now free-to-play business models are becoming so dominant. We always also report on Time and number of Paying Gamers (Payers) to provide more perspective.

Games Market Growth

time Key Growth Indicators | With Key Trends In Betweenpayers

2011-2012

2011-2012

2011-2012

2011-2012

+26%

+18%

+33%

+17%

2011-2012

2011-2012

2011-2012

2011-2012

+8%
players

+8%

+1%
money

+3%

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The 4 Key Trends

time Key Growth Indicators | With Key Trends In Betweenpayers bizz models

screens

free

services organisation

access

profit

value

players

money
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Luxembourg, here we are

This place is about more than money. Consumers want continuous access games that are, in principle, free. Ideally, their game continuously improves and expands, as a service. If the game gives them value, they are more than willing to spend money.

access

free bizz models

service
organisation

value profit

screens

Game companies need to make their games accessible via all screens as well as adapt their business models. The latter requires organisational change and a continuous balancing act between consumer value and company profit. Hard but it is the only way to remain profitable in this competitive market.

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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

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3. Gamers and their Screens

The US versus Europe

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Consumers vs Screens

Newzoo Screen Segmentation Model TM

21%
of EU gamers (2012) play on all four screens

22%
of US gamers (2012) play on all four screens All Screens Connected By: Social Networks The Cloud The Real World

market growth

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The Computer Screen | 2012

Newzoo Screen Segmentation Model TM

11.1B
us dollars

143M
players

51%

91%

61%
payers

hrs/week

61%

52.8M

1.15B

The Entertainment Screen | 2012

Newzoo Screen Segmentation Model TM

us dollars

6.4B

105M
players

29%

67%

69%
payers

hrs/week

17%

59.3M

324M

The Personal Screen | 2012

Newzoo Screen Segmentation Model TM

1.8B
euro

92.1M
players

8%

59%

38%
payers

hrs/week

13%

33.0M

254M

The Floating Screen | 2012

Newzoo Screen Segmentation Model TM

2.6B
euro

12%

48.4M players 31%

37%
payers

hrs/week

9%

31.7M

167M

Smartphones, Tablets & Handheld Consoles

4. Mobile Gaming

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Mobile Gaming | EU vs The U.S 2012

Work in Progress | Smartphones vs Tablets vs Handhelds
62.4M European* Gamers (47% of all gamers) |90.4M US Gamers (58%) Smartphone, Tablet or Handheld Console Gamers
* Aggregate of UK, GER, FR, NL, BE, IT

Smartphones Tablets

Smartphones Tablets

42%
26.4M

7%
4.1M

4%
2.4M

50%
45.3M

12% 7%
10.5M 6.2M

5%
3.2M

3%
1.9M

5%
4.1M

3%
2.4M

20%
12.3M

11%
10.3M

19%
12.1M
Handheld consoles
Source: Newzoo Mobile Trend Report, October 2012

13%
11.6M
Handheld consoles

Top 5 Games US September 2012

Rank Game 1 2 3 4 5 Kingdoms of Camelot: Battle for the North Rage of Bahamut Dragon Vale Clash of Clans Slotomania HD Last Month 2 1 3 17 4 Last Month 2 12 1 3 4 Last Month 1 2 3 5 4

Based on total iPad, iPhone and Google Play store revenues

Publisher Kabam Mobage Backflip Studios Supercell Playtika LTD Publisher BitRhymes Inc. Supercell Backflip Studios Kabam Playtika LTD Publisher Mobage Playtika LTD Ateam Inc. Zynga Dragon Play

Rank Game 1 2 3 4 5 Rank 1 2 3 4 5 Bingo Bash Clash of Clans Dragon Vale Kingdoms of Camelot: Battle for the North Slotomania HD Game Rage of Bahamut Slotomania- Slot machines Dark Summoner Zynga Poker Slot City- Slots Machines

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Available on the US games market

5. All Research Topics

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Newzoo Data Explorer Topics

Demographics Base: Total online population aged 10-65 Gender Age Education* Income Work situation Home situation Hobbies and general interests Media, Retail & Technology Base: Total online population Media usage (print, radio, TV, social networks, internet) Social network preference* Mobile phone brand & provider Tablet brands: e.g. iPad, Kindle Fire, Galaxy Tab Use of tablet TV connectivity Preferred TV channels* Preferred generic websites* Preferred retail chains* General use of prepaid cards / gift vouchers / promotional codes

Consumer Insights across all game business models

Play frequency per marketsegment Time spent playing per market segment Genre preferences per market segment Players of key franchises, including Minecraft, World of Warcraft, Assassins Creed, FarmVille, FIFA, Sims, Bejeweled, GTA, Call of Duty, BattleField, League of Legends, World of Tanks, Zynga Poker, Bubble Shotter, Tetris.

Game spending Base: All gamers Total number of (non-)paying gamers Paying players per market segment Average money spent per market segment Business model preference per market segment Preferred payment method per market segment
MMO-specific Base: MMO gamers Free-to-play (F2P) versus Pay-to-Play (P2P) In-game spending in F2P / P2P Browser versus Client Number of MMO games played Preferred MMO type: e.g. RTS, RPG, Shooter, Sports, Battle Arena, Resource/Casual Preferred MMO genre: e.g. Fantasy, Sci-Fi, Realism, Anime, History Preferred MMO graphic style: e.g.2D, 3D, Side-scrolling. Social/Casual-specific Base: All online casual or social gamers Preferred online game destinations* Choice of social networks* Social networks as game destination Share of time on socialnetworks spent on games Social franchises: e.g. Ravenwood, Words with Friends Brand awareness of social publishers: e.g. Zynga, Wooga Number of social games played/ tried

Game behaviour Base: Total online population / gamers Total number of (non-)gamers Players per market segment: Casual game websites: e.g. Pogo, MiniClip, King.com, Yahoo Social networks: global and local Mobile devices: smartphones and tablets MMO games: F2P/P2P, Browser/Client Consoles: including Vita and DS PC/Mac: downloaded or boxed
*Country-specific topics

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Newzoo Data Explorer Topics

Mobile-specific Base: All tablet and (smart)phone gamers Mobile device used to play: e.g. tablet, smartphone, iPod Share of spending on multiple devices Popularity of mobile browser games Popularity of pre-installed games Popularity of download / app store games Download source for smartphones and tablets App stores used Share of up-front payment versus in-game spending Reasons for chosing a mobile game Cross-screen gaming: role of mobile device Number of mobile games played PC/Mac and Console-specific Base: All PC/Mac and/or Console gamers Boxed vs. Downloaded PC/Mac games Share of Boxed games in total PC/Mac spend Console used & owned Own or play for key franchises: e.g. Skyrim, GTA, CoD Download source PC/Mac games: e.g. Steam, Origin, Filesharing Buying games abroad/ import Share of pre-owned in total spending Share of digital downloads in total spending Importance of game extensions as buying reason *Country-specific topics

Consumer Insights across all game business models

Fresh topics available from October 2012: Time spent on the internet divided over locations Time spent on the internet divided over screens Using/Subscription: Netflix/Digital TV/ Satellite TV/Pay TV/Spotify/Amazon Account Frequency watching TV and: read news paper or magazines, surf the web while TV is on, communicate online or via phone with friends, playing games Awareness new products: iPhone5, Windows 8 operating system, Small screen iPad, Google Nexus 7, Apple TV, Wii U, PlayStation 4, Microsoft Smart Glass, The new Microsoft Xbox, Ouyas Video Game Console Buying intention: iPhone5, Windows 8 operating system, Small screen iPad, Google Nexus 7, Apple TV, Wii U, PlayStation 4, Microsoft Smart Glass, The new Microsoft Xbox, Ouyas Video Game Console MMO portals visited past 6 months Populair MMO franchises played (e.g. WoW, LoL, Runescape, World of Tanks, Lineage) Statements about: Engagement Casual games versus TV Reasons to try a new social network game Social franchises played (e.g. FarmVille, CityVille, Words with Friends, MafiaWars, Ravenwood Fair) Brand awareness social game developers (e.g. Zynga, PopCap, Playfish, Wooga) Awareness brand or franchise (e.g. Chillingo, GREE, Mobage, Crime City, Rage of Bahamut, Wheres My Water?) General attitude towards brand or franchises (e.g. Chillingo, GREE, Mobage, Crime City, Rage of Bahamut, Wheres My Water?) Mobile franchises played (e.g. Angry Birds, Ice Age, Draw Something, Kingdoms of Camelot) Statements about: Opinion push notifications mobile games Statements about: Spending, timing and budget for mobile games Statements about: Preference of boxed vs. downloaded PC/Console games

Endless cross-analysis of all topics across 12+ countries in our Newzoo DataExplorer

US

EU*

UK

GER

FR

IT

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BE

NL

RU

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PL

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AUS

JP

CN

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Consumer Insights & Monthly Mobile Data

6. Subscription offers

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Consumer Research Data | Total Picture

Analyze, create/export graphs online, based on >200 topics
Select topics & variables Select or compare countries Filters to cross analyze

Export to powerpoint or excel

relative and absolute numbers

2012 Newzoo

One year subscription | Free analysis support All US Data

4,000

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Transactional Mobile Games Data

Top 200 grossing and top 300 downloaded games (monthly)
iPhone iPad PlayStore Amazon Windows 8

Stores:

Early 2013:

Over 30 datapoints per game.

Easily select the publisher and see their games in the top 200 gross ranking and top 300 free and paid ranking across all app stores.

Game by game revenues and downloads. Per country and per App store.

2012 Newzoo/Distimo

This monthly subscription will be upgraded to the Distimo AppIQ online dashboard early 2013. Excel product available now.

Contact us for the possibilities

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Research, Client Portfolio & Contact Details

7. Newzoo & Contact

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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.

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Newzoo Partners
Payments Intelligence,

Supporting your global business development

Amsterdam,
the perfect city for your game company
Four reasons why game companies such as PerfectWorld, Gamania and DeNA have chosen the Amsterdam Metropolitan Area for their European office. Central location in Europe The Netherlands sits nicely and independently in between Europes largest markets: the UK, Germany and France and is known to be a perfect test market for new digital media products. Excellent Infrastructure Amsterdam is home to the Amsterdam Internet Exchange, the worlds largest internet hub in terms of both traffic and members Multilingual Workforce Amsterdam has always been very international in terms of people, languages and business. It is also easy to attract talent from other parts of Europe to spend some years in Amsterdam. Financial Framework Many international companies, such as IKEA have set up their financial HQ in the Netherlands Please contact me to see what advantages apply to your specific situation. Annelies in 't Veld Senior Manager Foreign Investments City of Amsterdam | Economic Affairs veld@ez.amsterdam.nl, +31 (0)20 552 3204

the fastest way to increase your ROI

GlobalCollect is the worlds premier provider of local payment services. It processes payments across the globe for the majority of leading game publishers and distributors. > 15 million payments a month In July 2012 GlobalCollect processed over 15M gaming transactions globally. Gaming payments data and benchmarks are available to clients based on gaming platform, game type, monetization model and genre. Payment specific data includes global payment method popularity, average transaction values, fraud benchmarks, currency volume, transaction volume figures etc. GlobalCollect provides advice on paymentization practices including multi-acquirer management, automated re-routing capabilities and benchmarking for credit card processing to increase revenues.

Recent whitepaper Cross-Screen Monetization of Games http://info.globalcollect.com/monetization-of-games Nathan Salisbury Global Market Director - Gaming GlobalCollect nathan.salisbury@globalcollect.com, +31 (0)23 567 1500

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Contact us

Or buy directly online

Order subscriptions online on newzoo.com

Or contact us

Newzoo Wybe Schutte wybe@newzoo.com +31 20 6635816

2012 Newzoo

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