[2012] CGA - Mobile Games - Mobile Sector 2012
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[2012] CGA - Mobile Games - Mobile Sector 2012

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+ Info: http://www.casualgamesassociation.org/

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  • 1. Mobile Gaming 2012 C A SUAL G AME S SEC TOR REP OR T
  • 2. What are mobile games? What makes mobile games special? 1.  obile games can integrate GPS, M camera, microphone, position sensors and video. 2.  obile devices are always on M and always within arms reach. 3.  otential audience is enormous P with nearly one mobile device per person. Games that run on a mobile device such as a mobile phone, smartphone or tablet computer. Devices such as iPhone, Playbook, Galaxy Tab, Windows Phone and Android devices.
  • 3. Keep in mind Smartphones don’t rule the world… yet. As smartphone penetration increases, so will the potential audience for high value games. smartphone penetration Global 15% feature phone penetration Global 85% MOBILE GAMES smartphone penetration China (urban) 35% smartphone penetration U.S. 31% smartphone penetration Russia 25% smartphone penetration India (urban) 23% smartphone penetration Turkey 14% source: ourmobileplanet.com Device Fragmentation Lots of different phones, means varying gaming capabilities, operating systems, processing power, screen sizes and graphics. IPHONE 4S 3.5” screen OS: iOS 5 XIAOMI M1 4” screen OS: Andriod OS 2.3 SAMSUNG WAVE Y 3.2” screen OS: Bada 2.0 OS NOKIA 3.2” screen OS: Symbian Belle KINDLE FIRE 7” screen OS: Andriod OS 2.3 iOS dominates mobile gaming but Android will claim the top spot in the near future as developers embrace Android and Google continues to iron out its payment process. Revenue by smartphone OS iOS 50% Android 30% others 20% Mobile Gaming Report 2012  CA S UA L G A M E S A S S O C I AT I O N
  • 4. The Players 25-34 USA eCPM = $12.92 Male ages eCPM source Flurry Female ages mobile games - avg. player 25-34 USA eCPM = $7.80 mobile gaming audience - size and projections (millions) Russia Brazil 250 U.S. 200 150 100 50 0 2011 2012e 2013e 2014e 2015e eCPM source Flurry mobile social games - avg. player
  • 5. The Payers MOBILE GAMES Revenue Models % of Market Revenue Models % of Market 2012E 2013E 2014E 2015E 2012E 2013E 2014E 2015E Freemium 55.0% 59.0% 63.0% Freemium 55.0% 59.0% 63.0% 62.0% Ad 13.0% 14.0% Ad Supported Games 6.0% 10.0% Supported Games 6.0% 10.0% DLC 37.0% 27.0% 19.0% 17.0% DLC 37.0% 27.0% 19.0% 17.0% Other (ex. 5.0% 7.0% 2.0% Other (ex. Subscription) 2.0% 4.0% Subscription) TOTAL 100.0% 100.0% 100.0% TOTAL 100.0% 100.0% 100.0% How Mobile Games are Monetized Revenue Models: 1.  d supported. A Example: Angry Birds on Android devices. Reported $1 to 6 million per month in revenue. 2012E 2013E Revenue Models % of MarketmodelsModels % of Market 2012E revenue Revenue % of market 2012E 2013E 2014E 2015E 2012E 2013E 2014E 2015E Freemium 55.0% 59.0% 63.0% 62.0% 55.0% 59.0% 63.0% Freemium Ad Supported Games 6.0% 10.0% 13.0% 14.0% 6.0% 10.0% Ad Supported Games 2012e DLC 37.0% 27.0% 19.0% 17.0% 37.0% 27.0% 19.0% 17.0% DLC 2% 2.0% 4.0% Subscription) Other (ex. Subscription) Other (ex. 5.0% 7.0% 2.0% TOTAL 100.0% 100.0% TOTAL 100.0% 100.0% 100.0% 100.0% 2. Microtransactions & Virtual Goods. 2012E 2012E 2013E Example: Tiny Tower. Reported $3 million in first year from in-app purchases of ingame currency. 37% 2013E 2014E 201 5% 4.0% 5.0% 7.0% 100.0% 100.0% 19% 55% 63% 13% 2014E 2015E 2013e 2015e 4% 7% 17% 3. Paid download. Example: Fruit Ninja in Apple App Store for 99¢. Reported 200,000 sales in first month of release. 27% 4. Subscription. Example: Gameloft Subscription. In the U.S., $7/month for two games per month, in the U.K., £.99/week for one game per week. Microtransactions & Virtual Goods Ad Supported Paid Download Other (ex. subscription) 5. Hybrids. Example: Infinity Blade. Paymium: paid download and microtransactions. In Apple App Store for $5.99 and players can make in-app purchases such as a Bag of 150K Gold Coins for $4.99. Reported revenue of $23 million within first year of release. 4.0% 100.0 62.0% 13.0% 2014e 14.0% 2013E2014E 6% 62.0% 13.0% 59% 14% 10% 62% Between 3.5% and 10% of a Mobile Free-to-Play game audience will convert to paying users. Most users spend between $8 and $15 per month. Mobile Gaming Report 2012  CA S UA L G A M E S A S S O C I AT I O N 2015
  • 6. Notable Content Providers EA Mobile www.eamobile.com EA has been very vocal about their aggressive mobile gaming strategy. And their aggressiveness is paying off. They recently reported that mobile gaming revenues are up 19% from 2010 to 2011. Gameloft www.gameloft.com Gameloft primarily develops for mobile platforms. They recently reported a 18% YoY sales increase (2010 to 2011). Currently, Gameloft is developing games for GREE, as the mobile gaming network moves west. Zynga company.zynga.com/games/mobile-games Industry insiders speculate that mobile is Zynga’s weak spot since Facebook doesn’t dominate and competitors are already gaining market share. As of January, Zynga reached 15 million daily active mobile gamers and have plans to roll out more mobile than Facebook games this year. To help with that effort, they acquired four mobile gaming companies. Rovio www.rovio.com Rovio’s success with Angry Birds is phenomenal. They continue to release new Angry Birds installments and now their game comes preinstalled on the Nokia C7 and LG Optimus. But it looks like it’s time to diversify. Rovio states that a new non-Angry Birds game will be released in 2012. Nexon www.nexon.net Nexon is also gearing up for the mobile gaming battle. They recently merged with Nexon Mobile in order to streamline operations and bought a 20% stake in a mobile gaming company. Nexon plans to launch more than 10 smartphone games this year. NOTABLE PLATFORMS GREE gree-corp.com DeNA (ngmoco) dena.jp/intl and blog.ngmoco.com Right now there is an intense race to become the top mobile gaming platform. DeNA and GREE are two of the biggest contenders. Both companies originated in Japan and have upwards of 30 million subscribers to their mobile gaming networks. They also both opened global offices in North America and Singapore.
  • 7. he World World $2.5 $2.0 Revenue $1.5 MOBILE SOCIAL GAMES $1.0 $0.5 0.0 Europe revenues by Asia individual market (billions)North America Latin Am $2.5 revenues - worldwide (billions) Revenues - Worldwide Revenues - Worldwide $1.83 $2.72 $7.50 $4.55 $6.62 $5.54 $2.0 Revenues Revenues Revenues - Worldwide 2010E 2011 Revenues - Worldwide 2012E 2013E 2014E 2015E TOTAL $1.832011 2012E 2013E 2014E 2015E 2010E $2.72 $4.55 $5.54 $6.62 $7.50 TOTAL $1.83 $2.72 $4.55 $5.54 $6.62 $7.50 Revenues - By Region ($, billions) 2010E Revenues - By Region 2011 2012E 2013E 2014E 2015E Asia $1.01 $1.47 $2.27 $2.66 $2.98 $3.23 ($, billions) 2010E 2011 2012E 2013E 2014E 2015E Europe $0.27 $0.41 $0.63 $0.89 $1.13 $1.31 Asia $1.01 $1.47 $2.27 $2.66 $2.98 $3.23 North America $0.49 $0.76 $1.16 $1.72 Europe $0.27 $0.41 $0.63 $0.89 $1.13 $1.31 $2.12 $2.48 Latin America $0.05 $0.10 $0.17 $0.22 $0.30 North America $0.04 $0.49 $0.76 $1.16 $1.72 $2.12 $2.48 Rest of World $0.02 $0.03 $0.05 $0.09 $0.13 $0.19 Latin America $0.04 $0.05 $0.10 $0.17 $0.22 $0.30 TOTAL $1.83 $2.72 $4.55 $5.54 $6.62 $7.50 Rest of World $0.02 $0.03 $0.05 $0.09 $0.13 $0.19 TOTAL $1.83 $2.72 $4.55 $5.54 $6.62 $7.50 $1.5 $1.0 revenues - mobile social (billions) Revenues - Mobile Social Revenues - Mobile Social $0.55 Revenues - Individual Markets ($, billions) 2010E 2011 Revenues - Individual Markets 2012E 2013E 2014E 2015E US $0.44 $0.68 $1.04 $1.55 $1.91 $2.23 ($, billions) 2010E 2011 2012E 2013E 2014E 2015E China $0.44 $0.68 $1.04 $1.55 $1.91 $2.23 $0.277 $0.073 $0.122 $0.227 US Japan $0.64 $1.73 $2.05 China $0.073 $0.95 $0.122 $1.77 $0.227 $2.25 $0.277 Japan $0.64 $0.95 $1.73 $1.77 $2.05 $2.25 $0.364 $0.364 $0.413 $0.413 $1.09 $3.37 $2.05 $0.5 Revenues - Mobile Social ($, billions) 2010 2011 2012E 2013E 2014E Revenues - Mobile Social TOTAL $0.55 $1.09 $2.05 $2.77 $3.37 ($, billions) 2010 2011 2012E 2013E 2014E TOTAL $0.55 $1.09 $2.05 $2.77 $3.37 0.0 $2.77 US China Japan revenues by region (billions) $3.5 2010 2011 2012e 2013e 2014e 2015e $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 0.0 $2.5 Asia Europe North America Latin America Rest of the World Mobile Gaming Report 2012  CA S UA L G A M E S A S S O C I AT I O N
  • 8. Key Terminology ARPPU Average Revenue Per Paying User. ARPU Average Revenue Per User. COST PER ACQUISITION (CPA)/ CUSTOMER ACQUISITION COST FREEMIUM Offering a game, product or service free of charge (such as software, web services or other) while charging a premium for advanced features, functionality, or related products and services. Cost of acquiring leads or customers. CPA is calculated by dividing the cost of a campaign by the number of new application installs attributable to that campaign. LIFETIME VALUE (LTV) DAILY ACTIVE USERS (DAU) MICROTRANSACTIONS The number of unique users that have used an application at least once over the course of a day. DLC Total amount that a player will spend with a particular game during his or her lifetime with the game. Low value transactions at a high volume. MONTHLY ACTIVE USERS (MAU) Downloadable Content. The number of unique users that have used an application at least once over the course of a month. eCPM SMARTPHONE Effective Cost per Thousand Impressions is a measure of total revenue (or cost) per impression. eCPM is calculated by dividing total earnings (or total costs) by total number of impressions. FEATURE PHONE Category between mobile phone and smartphone. These devices have more features than a standard call and text capable mobile but less features than a smartphone. Feature phones tend to be less expensive than smartphones and have limited third party application support and integration. Mobile phone with computer enabled features, such as data storage, high speed internet access, media players and e-mail capability. Smartphones also support third party application integration. VIRTUAL GOODS In-game items or game-related services, such as virtual currency, premium content, or a temporary subscription, that enable or enhance game play. ABOUT THE CASUAL GAMES ASSOCIATION When it comes to the health of your business, the more things that work together, the better. Which is why the Casual Games Association is a critical portion of the success of your company and the industry as a whole. It means that you and your team have access to cutting edge educational resources and are connected to thousands of other game industry professionals, members of the press and service providers around the globe. Learn more at http://www.casualgamesassociation.org/ For press inquiries, please email jessica@casualconnect.org Learn more about the mobile games industry with the best speakers, networking, lectures and data to help you succeed in a crowded market at Casual Connect Asia: May 22-24 and Casual Connect Seattle: July 24-26.