© 2014 Newzoo

The Global Games Market: Trends, Market Data and Opportunities

Peter Warman | CEO & Co-Founder | NewzooPeterWarman10 September 2015

The Global Games Market: Trends, Market Data and Opportunities

Peter Warman | CEO & Co-Founder | NewzooPeterWarman

The Global Games Market: Trends, Market Data and Opportunities

Peter Warman | CEO & Co-Founder | Newzoo

What’s Special?

$1.2M Per Player is the same as the2014 World Cup

3rd Place PrizeMoney.

What’s Special?

$16M Was CrowdFunded by $2.50 of every $10.00 donation, making Valve $54M

$18MPrize Pool

$6MWinning Team

New Direct Esports-Related Revenue Streams

NEW METRICSNEEDED?

NEW RULESFOR SUCCESS

NEW CONSUMERSARE PRODUCERS

TAKE A STEP BACK FROM THE BIG DATA ANALYTICS SOUP NOW AND AGAIN……

NEWWHO?

Newzoo. The Experts On All Things Games.Newzoo is an innovative global market research firm with a

primary focus on games. We provide our clients with a mix of consumer research, transactional data and financial analysis across all continents, screens and business models. We aim

to be ahead the curve when it comes to global and local trends and always put hard data into a broader perspective.

SAN FRANCISCO AMSTERDAM SHANGHAI

MARKET TRENDS | CONSUMER INSIGHTS | DATA MODELING | PREDICTIVE ANALYTICS

THESE COMPANIES CURRENTLY SUBSCRIBE TO NEWZOO’S SERVICES

MOBILE MARKET INTELLIGENCE

HISTORICTRENDING

MARKETTRENDS

MARKETSIZING

CONSUMERINSIGHTS

PLATFORMDATA

GAME/APPMETRICS

PREDICTIVEANALYTICS

JOINT AMBITIONthe full suite, on a global scale

BY NEWZOO & TALKINGDATA

Esports Economy Growth

TAKEN FROM NEWZOO’S 2015 GLOBAL GROWTH OF ESPORTS REPORT

MODELING & QUANTIFYING TRENDS

ESPORT ECONOMY MATURING

GLOBAL NUMBER OF CONSUMER ENGAGED BY ESPORTS | 2015 & GROWTH TOWARDS 2017

© 2015 Newzoo | Source: Global Growth of Esports Report Premium

© 2015 Newzoo

37% 34%GLOBAL

$252M+30% YoY

NAM

$93.2M+32% YoY

APAC

$85.2M+28% YoY

Revenues 2015 | Esports| Global, NAM , APAC

29%

TOTAL ESPORTSREVENUES

Esports Growth ScenariosBased On Annual Revenue per Enthusiast

$1Bn

Report Scenario

AlternativeOptimisticScenario

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

$2$3

$2

$3

$5$7

$15

$1.1Bn

$0.5Bn

$1.0Bn

$3.0Bn

$56

$20

AllSports

IndividualSports

2014 Revenues/FanGlobal Revenues Divided by Fans

$2Esports

AVERAGE REVENUE PER ENTHUSIAST

© 2

01

5 N

ew

zoo

/ R

ep

uco

m

© 2015 Newzoo / Repucom

TOWARDS A $1BN ESPORTS ECONOMY

REVENUES PER ESPORTS FAN COMPARED TO THOSE OF SPORTS SHOWS POTENTIAL

© 2015 Newzoo | Source: Global Growth of Esports Report Premium

CONFIDENTIAL | LIMELIGHT BREAKFAST AUGUST 6TH 2015

Monitoring Global Growth

TAKEN FROM NEWZOO’S 2015 GLOBAL GAMES MARKET REPORT

A MACRO VIEW

2015 GAME REVENUES PER REGION

CHINA AND THE US NECK-AND-NECK

© 2015 Newzoo

2015 GAME REVENUES PER SCREEN / SEGMENT

TOP COUNTRIES BY MOBILE REVENUE 2015

Source: Newzoo Global Games Market Report 2015

Rank Country Revenues

1 China $6,500,940,064

2 Japan $6,183,574,320

3 USA $6,015,517,552

4 South Korea $1,849,657,577

5 United Kingdom $1,008,778,581

6 Germany $819,296,319

7 France $519,746,699

8 Australia $517,988,650

9 Canada $507,126,131

10 Taiwan $412,829,571

11 Russia $336,402,000

12 Brazil $318,936,912

13 Mexico $298,498,290

14 Italy $298,265,226

15 Spain $228,657,173

16 India $227,456,546

17 Turkey $205,203,435

18 Thailand $172,011,071

19 Indonesia $167,899,403

20 Hong Kong $160,117,567

Top 3 Fastest Growing Countries: India Indonesia Philippines

+75% CAGR +72% CAGR +63% CAGR

THE STANDARD FOR GAMES MARKET SIZING

Newzoo’s Global Games Market Report

Free Riders versus Big Spenders

TAKEN FROM NEWZOO’S 2015 COUNTRY CONSUMER INSIGHTS

SPOTTING THE SPENDERS

DOES TIME SPEND DEFINE A POWER USER?

© 2015 Newzoo

SINGLE COUNTRY SCOPE: US

MOBILE GAME SPENDERS AND NON-SPENDERS VS TIME SPEND

© 2014 Newzoo | Source: Newzoo Data Explorer

Time Spend Clearly Correlates with Share of Spenders. Still There Are

4.7MFree Riders That Play A Lot But Never Spend

TIME SPEND

< 3HRS / WEEK

3 – 10 HRS / WEEK

> 10 HRS / WEEK

119.9M

76.9M

31.4M

11.7M

51.9M

27.7M

17.2M

7.0M

43.2%

36.0%

54.8%

59.8%

68.0M

49.2M

14.2M

4.7M

AllMobile Gamers

Share ThatSpendsMoney Spenders

Non-Spenders

4.7M “Free Riders” A Potential Marketing Target Group?

ALL

CONFIDENTIAL | GLOBAL TOP ROUND EVENT 2015

DOES MONEY SPEND DEFINE A POWER USER?

© 2015 Newzoo

SINGLE COUNTRY SCOPE: US

LEVEL OF MOBILE GAME SPENDING VS TIME SPEND

© 2014 Newzoo | Source: Newzoo Data Explorer

In the US, There Are

4.2MBig Spenders That Spend A Lot of Money But Not All Spend A Lot Of Time.

MONEY SPEND

< 3HRS / WEEK

3 – 10 HRS / WEEK

> 10 HRS / WEEK

51.9M

27.7M

17.2M

7.0M

16.4M

5.6M

7.8M

2.9M

31.2M

20.9M

8.5M

1.9M

4.2M

1.2M

0.8M

2.2M

AllSpenders

MinorSpenders

AverageSpenders

BigSpenders

4.2M “Big Spenders” The Prime Sales Target Group?

ALL

CONFIDENTIAL | GLOBAL TOP ROUND EVENT 2015

DOES MONEY SPEND DEFINE A POWER USER?

© 2015 Newzoo

SINGLE COUNTRY SCOPE: US

LEVEL OF MOBILE GAME SPENDING VS TIME SPEND

© 2014 Newzoo | Source: Newzoo Data Explorer

MONEY SPEND

< 3HRS / WEEK

3 – 10 HRS / WEEK

> 10 HRS / WEEK

51.9M

27.7M

17.2M

7.0M

16.4M

5.6M

7.8M

2.9M

31.2M

20.9M

8.5M

1.9M

4.2M

1.2M

0.8M

2.2M

AllSpenders

MinorSpenders

AverageSpenders

BigSpenders

4.2M “Big Spenders” The Prime Sales Target Group?

ALL

The Big Spenders, 3.5% of All Mobile Gamers, Generated at Least $1.7Bn in 2014, or

33%of All Revenues

CONFIDENTIAL | GLOBAL TOP ROUND EVENT 2015

WHO ARE THESE POWER USERS?

SINGLE COUNTRY SCOPE: US

TIME VERSUS MONEY SPEND ANALYSIS OF MOBILE GAMERS IN THE US

© 2014 Newzoo | Source: Newzoo Data Explorer

© 2015 Newzoo

Of US Big Spenders, A Dominant

30%Is Male Between 21 and 35 (Typical Game Enthusiasts) vs 12% for the Free Riders.

Big SpendersFree Riders

4.7M 4.2M

FEMALE

65%MALE

35%FEMALE

38%MALE

62%

MALE 21-35

12%MALE 21-35

30%

CONFIDENTIAL | GLOBAL TOP ROUND EVENT 2015

THE BIG SPENDER IS A FAMILY MAN

© 2015 Newzoo

SINGLE COUNTRY SCOPE: US

HOME SITUATION: FREE RIDING VERSUS BIG SPENDING POWER USERS

© 2014 Newzoo | Source: Newzoo Data Explorer

52%

Of All Mobile Big Spenders in the US,

Have Children at Home versus 34% for Free Riders.

Big SpendersFree RidersNON-FAMILY

43%FAMILY

57%NON-FAMILY

33%FAMILY

67%

PARENTS

34%PARENTS

52%4.7M 4.2M

CONFIDENTIAL | GLOBAL TOP ROUND EVENT 2015

THE BIG SPENDER HAS A FULL-TIME JOB

© 2015 Newzoo

SINGLE COUNTRY SCOPE: US

FREE RIDING VERSUS BIG SPENDING POWER USERS

© 2014 Newzoo | Source: Newzoo Data Explorer

61%

Of All Mobile Big Spenders in the US,

Have a Full-Time Job versus 26% for Free Riders

Big SpendersFree RidersNON-WORKING

60%WORKING

40%NON-WORKING

29%WORKING

71%

4.7M 4.2M

FULLTIME JOB

26%FULLTIME JOB

61%

CONFIDENTIAL | GLOBAL TOP ROUND EVENT 2015

THE BIG SPENDER SPENDS ON ALL SCREENS

© 2015 Newzoo

SINGLE COUNTRY SCOPE: US

FREE RIDING VERSUS BIG SPENDING POWER USERS

© 2014 Newzoo | Source: Newzoo Data Explorer

73%

Of All Mobile Big Spenders in the US,

Also is a Big Spender on PC Gaming. 74% Also on Consoles. Total Wallet Could Be $4bn.

TV (CONSOLE)BIG SPENDER

74%

PC / WEBBIG SPENDER

73%

MOBILEBIG SPENDER

4.2M

Monitoring the Diverse Ecosystem

TAKEN FROM NEWZOO’S MONTHLYCHINA MOBILE GAMES MONITOR

TRACKING MOBILE IN CHINA

PLATFORM TRACKING DATA

IOS GAME REVENUES IN 50 COUNTRIES

TRACKING OF 10M PC GAMERS

YOUTUBE & TWITCH VIEWING DATA

IOS & GOOGLEPLAY DOWNLOADS

DATA ON A BILLION+ SMART DEVICES IN CHINA

THE CHINESE MOBILE ECOSYTEM

Apple Is China’s #1 Technology Brand by 2014 RevenuesHistoric performance of Western company in China revealed

2014 CALENDAR YEAR REVENUES AND PROFIT IN CHINA FOR KEY TECH BRANDS

All numbers related to calendar year 2014. Revenues and profits of companies with a different fiscal year have been calculated based on quarterly reports to ensure comparability.Apple numbers are based on reporting segment Greater China (incl. HongKong and Taiwan).Samsung numbers are based on reporting on segment “China”.Huawei numbers are based on articles in Forbes on March 31, 2015 and Wall Street Journal on January 13, 2015. Operating profit is assumed to be equal across all regions.Lenovo numbers are based on reporting segment “China”. Tencent numbers are based on reporting segment Mainland China. Operating profit is assumed to be equal across all regions.Xiaomi numbers are based on article in Wall Street Journal on November 5, 2014 and are total company revenues and operating profits (across all regions as segmentation is not public).Baidu numbers are total revenues and operating profits (across all regions as segmentation is not public).Except for Lenovo, USD amounts are calculated using exchange rates as per 31 December 2014.

2014 Revenues in ChinaFull Calendar Year

2014 Profit in ChinaFull Calendar Year

© 2015Newzoo

www.newzoo.com

KEY FACTS

year-on-yearRevenue Growth

+32.3% for Applein China

year-on-yearProfit Growth

+54.1% for Applein China

Source: Newzoo’s Global Games Market Report Premium & Free China Report Update | April 2015

NOTES

© 2015 Newzoo

Ranking Change App Store (English)

App Store (Chinese)

# of Installs (M) Installs

(Growth)MAU(M)

MAU (Growth)

Activity Index

1 +1 360 Mobile Assistant 360手机助手 142.0 2.1% 112.1 3.4% 79%

2 -1 Myapp (Tencent) 腾讯应用宝 138.1 -1.8% 101.0 -3.6% 73%

3 +1 MIUI app store (Xiaomi) 小米应用商店4 -1 Baidu Mobile Assistant 百度手机助手5 +2 Huawei App Store 华为应用市场6 -1 HiMarket 安卓市场7 +3 Vivo 步步高应用商店8 - Google Play 谷歌9 +2 Oppo Store 可可软件商店

10 -4 Wandoujia 豌豆荚11 -2 Anzhi Market 安智市场12 +3 Meizu 魅族应用商店13 -1 91 Mobile Assistant 91助手14 - China Unicom WoStore 中国联通沃商店15 +1 Lenovo Store 联想乐商店16 +1 Coolpad Store 宇龙酷派应用商店17 +1 Sogou Mobile Assistant 搜狗手机助手18 +4 Zhuoyi Market 卓易市场19 +4 Gionee Anzhuoapk 金立应用商店20 -1 China Telecom Tianyi Store 中国电信天翼空间

ANDROID STORE PERFORMANCE

REACH OF ANDROID STORES IN CHINA | JUNE 2015

CONFIDENTIALThis data is part of the Newzoo/TalkingData monthly China

Mobile Games Monitor. More info:www.newzoo.com/chinamobile

梦幻西游-2015国民手游 人人都玩 不玩才怪(Fantasy Westward Journey)

全民突击-全球第一真人实时对战FPS枪战手游(WeFire)

开心消消乐(Anipop)

神武(Shen Wu)

天天爱消除(Craz3 Match)

全民飞机大战(WeFly)

部落冲突(Clash of Clans)

欢乐斗地主(QQ游戏官方版)(Happy Lord QQ Official)

少年三国志（7天送赵云，两周送红将！）(Junior Three Kingdoms)

海岛奇兵（Boom Beach）

1

2

3

4

5

6

7

8

9

10

Netease

Tencent

Happy Elements

Hero Network

Tencent

Tencent

Supercell

Tencent

Youzu

Supercell

-

-

3

1

3

2

6

1

new

-

www.newzoo.com

1

2

3

4

5

6

7

8

9

10

Xia Zhang

Happy Elements

PopCap

Tencent

Tencent

Gameloft

Tencent

Netease

Tencent

Netmarble

new

3

4

-

new

7

new

7

7

1

GAME TITLE PUBLISHERRANK CHANGEGAME TITLE PUBLISHER CHANGERANK

花千骨 正版手游(The Journey of Flower)

开心消消乐(Anipop)

植物大战僵尸2(Plants vs. Zombies 2: It’s About Time)

欢乐斗地主(QQ游戏官方版)(Happy Lord QQ Official)

拳皇98终极之战OL(The King of Fighters 98)

狂野飙车8：极速凌云(Asphalt 8: Airborne)

九龙战-腾讯第一动作竞技手游(Kowloon War)

猫和老鼠官方手游-开放新关卡，登录送火腿(Tom and Jerry)

全民突击-全球第一真人实时对战FPS枪战手游(WeFire)

漫威 : 未来之战(MARVEL Future Fight)

Top iOS Games| July 2015 | China

By Revenues By Downloadspowered by powered by

Find the Top 20 iOS Games every month at:

http://www.newzoo.com/free/rankings/iOSrankings

powered by

has 2 titles in the

Top 10 games by revenues

The Journey of Flower debuts as

#1 downloaded game

Finding An Alliance of Partners & Clients

WILLING AND ABLE TO SHARE DATAAND DEVELOP NEW METRICS

GAME METRICS

GAME METRICS & PARTNERS

© 2015 Newzoo

AndroidCasual Puzzle Role play Action Strategy Simulation Casino Cards

休闲游戏 智力游戏 角色扮演 动作游戏 策略游戏 模拟类 棋牌游戏 卡牌游戏

Payment Rate 2.7% 1.9%

Average sessions per user 3.53 4.22

iOSCasual Puzzle Role play Action Strategy Simulation Casino Cards

休闲游戏 智力游戏 角色扮演 动作游戏 策略游戏 模拟类 棋牌游戏 卡牌游戏

Payment Rate 3.2% 3.2%

Average sessions per user 3.73 3.79

PAYMENT (CONVERSION) RATE PER GENRE FOR IOS AND ANDROID GAMES IN CHINA | JUNE 2015

CONFIDENTIALThis data is part of the Newzoo/TalkingData monthly China

Mobile Games Monitor. More info:www.newzoo.com/chinamobile

GAME METRICS IN ACTION

EXAMPLES HOW GAME METRIC ANALYSIS IMPROVE MONETIZATION | AMAZON ANALYSIS OF GOOD & LESS {ERFORMING GAMES

Games that providing a post-purchasing tutorial generated

65% more repeat orders than

the market average.

Not too much variety in price Ease of purchase at time of need Help people to spend credits

source: Amazon keynote at Casual Connect SF

TAKE A STEP BACK FROM THE BIG DATA ANALYTICS SOUP NOW AND AGAIN……

MOBILE MARKET INTELLIGENCE

HISTORICTRENDING

MARKETTRENDS

MARKETSIZING

CONSUMERINSIGHTS

PLATFORMDATA

GAME/APPMETRICS

PREDICTIVEANALYTICS

JOINT AMBITIONthe full suite, on a global scale

BY NEWZOO & TALKINGDATA

The Global Games Market: Trends, Market Data and Opportunities

Peter Warman | CEO & Co-Founder | NewzooPeterWarman