Understanding Tomorrow’s Gamers, Today!

Michael CaiSVP of Research

Interpret LLC

3

Consumer Tracker Sampling Methodology

Respondent Requirements

Survey Modules

Survey Conducted February to March 2015

Respondents

4

Research Coverage

Download Portable Games

Connected Consoles

Online Casual Gaming

Download PC Games

(Steam, etc.)Social

Network Gaming

Sub-based MMO

F2P MMO

Virtual Worlds

Smart Phone Apps

iPad and Tablet

Gamer

Physical Media

5

Agenda

• Entertainment Wallet Share

• Device Timeshare

• Brand Mindshare

• Gaming Motivations

• Top Mobile Genres/Titles

• Mobile Gaming/Spending Behavior/Attitudes

• Console Gaming

6S18a Please indicate how much money you spent for your children 6-12 on each of the following in the past 6 months.

Entertainment Walletshare

$142.57

$97.57

$59.75

$43.52

$36.18

$34.00

$32.88

$13.38

Six Month Kids Walletshare N=400 Parents of Kid Gamers 6-12

Video games

Toys

Electronic entertainment devices

Movies in theaters

Books

Entertainment brandedmerch excluding toys or books

Movies/TV shows at home

Music

Total Average Spend On Entertainment In The Past Six

Months:

$460(recall period includes holiday season)

32% of parents spend an average of $34 on game-related merchandise.

7

Device Timeshare

S5b And of the hours your children 6-12 spend playing videogames during a typical week on devices you own, how many hours are spent playing videogames on each of the game systems you own?

Average Weekly Gaming HoursN=400 Total Gamers 6-12

10.97

Timeshare Across DevicesN=400 Total Gamers 6-12

• Tablet “Favorite” gaming device in the US, UK, Germany, and Australia (in France, it’s No. 2 behind 3DS).

• In Asian countries, smartphones and computers trump tablets.

8

Top of Mind Play Brands And Games

G0 When you think about playing in general, what three brands come to mind right away? G1 When you think about games you play online, what three games come to mind?

Play Brands N=400 Total Gamers 6-12(New question in Wave 4)

Games N=400 Total Gamers 6-12

Angry Birds Candy Crush Minecraft Farmville Call of Duty Bejeweled Club Penguin Mario

Blue Text= Wave 3 Data

Wave 4 Wave 4

9

Top of Mind Games

G1 When you think about games you play online, what three games come to mind?

Most-Named Games (Unaided)N=400 Total Gamers 6-12

Blue Text= Wave 3 Data

Wave 4 Wave 4

Wave 4 Wave 3

Minecraft World of TanksWorld of Tanks Minecraft

Angry Birds Angry BirdsWoW WoWFarm FarmSims SimsDotA CounterStrikeGTA GTA

Wave 4 Wave 3

Puzzle & Dragons Puzzle & DragonsTsumtsum Dragon Quest

Mario MarioDragon Quest Monster Hunter

Monster Hunter LINECandy Crush Pokemon

LINE Final FantasyYo-Kai Watch Animal Crossing

Wave 4 Wave 3

Minecraft Angry BirdsFIFA MinecraftGTA SimsLoL WoW

Angry Birds Candy CrushCandy Crush FIFA

WoW Call of DutyCall of Duty FarmVille

Wave 4 Wave 3

Anipang AnipangStarcraft StarcraftLineage Lineage

Cookie Run MapleStoryFIFA Angry Birds

Minecraft Cookie RunClash of Clans WoWCandy Crush FIFA

Wave 4 Wave 3

Angry Birds Angry BirdsPlants v Zombies Plants v Zombies.

WoW WoWLoL LoL

CounterStrike Happy FarmCool Running CrossFire

Landlords Defense RadishCrossFire Landlords

New to #1 spot

New to top 8

Fell off top 8

10

Reasons to Play

G13 Kids like video games for different reasons. Now please think about why you like video games and rate the importance of each of the following reasons to you.

2%

4%

5%

3%

6%

7%

7%

6%

7%

10%

7%

8%

1%

4%

4%

3%

5%

3%

3%

3%

6%

6%

6%

8%Somewhat UnimportantNot Important At All

Fun

Create things

Explore a new world

Improve at something

Play with my friends

Learn new things

Play as familiar characterfrom books and movies

Solve puzzles

Play games with my parents

Feel I’m part of a story

Compete with other players

Share things thatI created or earned with friends

19%

30%

31%

35%

27%

32%

27%

30%

27%

26%

25%

28%

70%

47%

44%

39%

45%

38%

41%

38%

37%

36%

37%

33%Somewhat Important Definitely Important

Reasons for Playing Video GamesN=400 Total Gamers 6-12

• Children 6-9 are more interested in creating things and playing with parents as reasons to play video games than their 10-12 counterparts.

• Children 10-12 are more likely to want to compete with other players and play with their friends than younger gamers.

• Boys are more likely to play games to create things, share with friends, and compete.

• Girl gamers are more interested in playing with their parents and to solve puzzles.

Exploration and creating things ranked lower in Asia

11

Top Mobile Genres

ST3 What types of games do you play on a smartphone, iPod Touch or tablet? Pick all the ones you play on smartphone, iPod Touch or tablet.

Matching puzzle games

Physics puzzle games

Runner games

World-building

games

Farm/city management

games

Fashion/Dress-up/

Makeover/Shopping

games

Life/pet simulation

games

Drawing games

Educational games

Hidden object/mystery

games

42% 40%

29%

22%19% 19% 18% 18% 17% 17%

% Playing Each Genre On Smartphone Or Tablet N=338 Mobile Gamers 6-12

Boy gamers 10-12 are much less likely to play Runner games than boy gamers 6-9 and girl gamers 6-12

All Western markets rank these two as top two;

Asian countries are different.

12

Angry Birds Candy Crush Saga Fruit Ninja Temple Run Angry Birds Star Wars

Minecraft Pocket Edition

Angry Birds Space

Temple Run 2 Candy Crush Soda Saga

Cut the Rope

66%

52%

30% 29% 28% 25% 24% 21% 21% 20%22%17%

12% 9% 7%

17%

5%11% 12% 8%

Top 10 Mobile Titles Ever and Currently PlayN=338 Mobile Gamers 6-12

Ever Played Currently Playing

-20%-19%

-5%

-9%

+4%

-10%

Top 10 Mobile Titles – Play

St9a Which of the following mobile games have you ever played? ST9b Which of the following smartphone , iPod Touch, or tablet games are you currently playing? ST9b Which of the following mobile games are you currently playing?

Since last wave, fewer gamers indicate that they are currently playing games from the Angry Birds franchise. Minecraft, however, has grown in engagement.

%/% = Major change in percentage from Wave 3 to Wave 4 Data

+6%

13

Minecraft Engagement

G9m1 You mentioned being aware of the game Minecraft. Have you ever played Minecraft? G9m1a How many hours a week do you play Minecraft? G9m2 On which device(s) do you play Minecraft?

34%

9%8%

49%

I play it now

I used to play it

I've never played it, but I've heard of it

Not aware of it

Xbox 360

Desktop or Laptop PC

Android tablet

iPad

iPhone

PlayStation 3

Xbox One

Desktop or Laptop Mac

Android phone

PlayStation 4

PlayStation Vita

35%

30%

20%

19%

19%

13%

10%

10%

10%

6%

5%

On Which Device(s) Do You Play Minecraft?N=172 Current or Recent Minecraft Gamers 6-12

Minecraft ExperienceN=400 Total Gamers

Minecraft Hours Per WeekN=136 Current Minecraft Gamers

4.9Among all gamers, 15% of the total gaming hours per week (1.66 of 10.97 hrs.)

is spent on Minecraft.

14

Awareness Sources of Mobile Game Apps

ST12 How do you hear about game apps to download onto a smartphone, iPod Touch, or tablet? ST12a What is the one main way you hear about games to download onto a smartphone, iPod Touch, or tablet? ST12a1 How often do you search for new games to play on your smartphone, iPod Touch, or tablet? Please select the answer that is closest to your actual habits.

Friends

Family

Ranked lists in the app store

Featured games in the app store

YouTube

Ads or commercials on TV

Reviews in the app store

App store search feature

27%

13%

15%

10%

7%

4%

9%

9%

Sources Of AwarenessN=338 Mobile Gamers 6-12

Main Source Used

14%

7%

19%

12%19%

9%

21%Several times a day Once a day

Several times a week Once a week

Several times a month Once a month

Less than once a month

Searching FrequencyN=338 Mobile Gamers 6-12

15ST12_0 For the smartphone, iPod Touch, or tablet that you play games on, who picks the games that you play?

Who Select Mobile Games to Download

27%

29%

26%

11%

7%

I always pick out the games

I mostly pick out the games, but my parents pick out a few

My parents and I both pick out the games about the same amount

My parents mostly pick out the games, but I pick out a few

My parents always pick out the games

Who Picks The Mobile Games You Play?N=338 Mobile Gamers 6-12

16

30%

29%

19%

22%

Males 6-9

Males 10-12

Females 6-9

Females 10-12

Mobile Spending In Past Six Month

S7 Now, please indicate whether or not you spent money on your children 6-12 on the following gaming activities in the past 6 months.

% Who Spent For Mobile In-game Purchases By Age And GenderN=91 Mobile In-game Spenders

23% spent for IAP in the past

six months

17

When I read/watch a good review about the game

When I can't beat other players

When the game's going too slowly

When I have to wait for a period of time before I can play again

When I hear other people are playing the game

When there's a sale

To customize my character

When I cannot pass a level

When I can't play the rest of the game unless I buy it

To get a special item

14%

14%

15%

15%

22%

22%

26%

26%

28%

37%

Mobile Item Purchase Drivers

ST25 When do you usually ask your parents to spend money for a mobile game (e.g. new characters, skins/clothes, energy, new maps)?

I Ask My Parents To Spend On In-Game Items When…N=210 Mobile Gamers Who Requested Parents To Spend Money 6-12

% Asking for Mobile In-game Items PurchaseN=338 Mobile Gamers 6-12

38%62%

I never ask my parents to buy stuff for me for mobile games

I ask my parents to spend on mobile games

18

68%

24%

8% 7% 5%

Password Policy For Kids Mobile GamesN=160 Parents of Mobile Game Spenders 6-12

ST18p1 For your kids’ mobile games (smartphone, iPod Touch, or tablet), how would you prefer to pay for these items? ST18p0 How are purchases made in your household for your child’s mobile games? G19Allowance Do you give your child a set weekly or monthly allowance specifically for video games? If so, please specify the total allowance you give them per month.

Parent Control of Mobile Game Spending

20%

80%

Gift card/spending account

Authorize each purchase sepa-rately

Pay Preference For Kids Mobile GamesN=160 Parents of Mobile Game Spenders 6-12

19G19 Do you give your child a set weekly or monthly allowance specifically for video games? If so, please specify the total allowance you give them per month.

Gaming Allowance

14%

15%

71%

Yes, I give them an allowance specifically for video games, it amounts to this much per month

No, I give them a general-purpose allowance, it amounts to this much per month

No, I don't give them any allowance

Average gaming allowance: $37.75

Average general allowance: $24.66

Average Monthly AllowanceN=400 Parents of All Gamers 6-12

(15% M / 14% F)

(19% M / 11% F)

Males 6-9 Males 10-12 Females 6-9 Females 10-12

$20.46

$52.50

$17.56

$46.74

$32.57

$22.64 $16.50

$25.92

Average Monthly Allowance By Age And Gender N= 50 Gaming Allowance Receivers, 60 General Allowance

Receivers

Gaming Allowance General Allowance

China leads in percentage of kids receiving allowances, with average amount similar to that in the US.

20

Top 10 Console Games

R9a1 Which of the following console games have you played in the last 6 months?

Minecra

ft

Call

of Duty:

Advance

d Warf

are

Call

of Duty:

Ghosts

Gran

d Theft Auto V

Mario

Kart 8

Disn

ey Infinity

LEGO St

ar W

ars

Just

Dance

2015

LEGO Batm

an 2: D

C Super Heroes

LEGO Batm

an 3

29%

17% 16% 15%13% 13% 12%

11% 10% 10%

Top 10 Home Console TitlesN=331 Console Gamers 6-12

+10%

-5%

%/% = Major change in percentage from Wave 3 to Wave 4 Data

Minecraft has not only gained mobile gamers, but grew in home console gamers as well, as indicated by the 10% increase in gamers.

21

Top Console Games by Demo

R9a1 Which of the following console games have you played in the last 6 months? *-Caution: Low Base Size

Minecra

ft

Call

of Duty:

Advance

d Warf

are

Call

of Duty:

Ghosts

Gran

d Theft Auto V

Mario

Kart 8*

Disn

ey Infinity

*

LEGO St

ar W

ars*

Just

Dance

2015*

LEGO Batm

an 2: D

C Super Heroes*

LEGO Batm

an 3*

29% 26% 30% 36% 28% 29% 34% 26%44% 48%

32% 46% 46%44%

28%10%

29%

6%

21%21%

16%11% 6% 2%

19%36%

22%

17%

9% 3%

23% 18% 19% 18% 26% 26%15%

51%

26% 27%

Top Home Console Games By Age-GenderN=Among Console Gamers Playing Each Game in Past 6 Months (Varying Base)

Males 6-9 Males 10-12 Females 6-9 Females 10-12

22

Questions?

Yuanzhe (Michael) Cai蔡元喆SVP of Research, Games and Technology

P: 310.981.4754F: 310.981.4771

www.interpretllc.comTwitter: @mycai | @InterpretLLC

michael.cai@interpretllc.com