Games Going Forward

  Free to play games  Social gamingtoday Speakers   Cross-platform gamingGlobal and local opportunities

Despite the fact thatMore time is spent on games due tonew interfaces, game locations

And despite the fact thatGames have become a more social affair due to online connectivity, casual gaming

And despite the fact thatGames are now played by everyone due to free games, mobile screens

Issue: Total Consumer Spend is Flat US Total Consumer Spend 2009-2012 Total and by ‘platform’ in billion US dollars 2011 Estimate: $21.6bn Including pre-owned, DLC online, mobile Source: Newzoo Infographics

Opportunity: New market segments US Total Consumer Spend 2009-2012 Total and by ‘platform’ in billion US dollars Online Mobile DLC 2011 Estimate: $21.6bn Including pre-owned, DLC online, mobile Source: Newzoo Infographics

Challenge: Very comeptitive markets US Total Consumer Spend 2009-2012 Total and by ‘platform’ in billion US dollars Online Mobile DLC 2011 Estimate: $21.6bn Including pre-owned, DLC online, mobile Source: Newzoo Infographics

So, What is Free to Play?‘Giving a consumer the chance to experience agame before he can decide to spend money onmaximizing his experience or community status.’Therefore: Every game platform is Free toPlay. Yes… also consoles.Only 44% of all US console gamers ever spendsmoney on console games

Share of paying players per ‘platform’ US: No “platform” scores above 45% Consoles show the same characteristic as F2P platforms50% 44% 45%45% 43%40% 36% 37%35% 30% 25%25% 22%20% 15% 10% 5% 0% Casual sites Social Mobile MMO Console PC/Mac Boxed PC/Mac Download 25m 19m 27m 22m 36m 32m 27m Source: 2011 Newzoo Data Explorer

Share of paying players per ‘platform’ EU*: No “platform” scores above 49% F2P games show lower share of payers than US60% 48% 49%50% 40% 35% 32%30% 26%20% 18% 16%10% 0% Casual sites Social Mobile MMO Console PC/Mac Boxed PC/Mac Download 13m 9m 17m 13m 39m 35m 20m * Aggregate for UK, GER, FR, SP, IT, NL, BE Source: 2011 Newzoo Data Explorer

Share of paying players per ‘platform’ Brazil: No “platform” scores above 40% F2P shows comparable share of payers but for 46m of 200m45% 40%40% 34% 35%35% 32%30% 28% 27% 27%25% 20% 15% 10% 5% 0% Casual sites Social Mobile MMO Console PC/Mac Boxed PC/Mac Download Source: 2011 Newzoo Data Explorer

Share of paying players per ‘platform’ South-Korea: No “platform” scores above 39% F2P games show higher share of payers than US45% 38% 39%40% 36%35% 32% 32% 31%30% 28%25% 20% 15% 10% 5% 0% Casual sites Social Mobile MMO Console PC/Mac Boxed PC/Mac Download Source: 2011 Newzoo Data Explorer

So, what is the problem? 2011 vs. 2010 2011 vs. 2010 2011 vs. 2010 revenues revenues revenues $ 2,571,000,000 +3% € 473,000,000 +13% $ 270,000,000 P2P F2P P2P F2P P2P F2P 53% 47% 42% 58% 39% 61% players players players 39,400,000 +3% 8,700,000 +11% 23,400,000 payers payers payers Source: 2011 MMO Games Market 22,300,000 +6% 4,500,000 +13% only shown live during webinar 9,200,000 Report $ / month € / month www.newzoo.com/report € / month $ 9.61 -‐3% € 8.76 +1% $ 2.45 2011 vs 2010 2011 vs 2010 Share F2P Share F2P 2011 vs 2010 39% > 47% 54% > 58% Growth in number of MMOs F2P spending F2P spending +50% +24% +14% Average revenue per game

Potential of Emerging Markets Brazilian Total Consumer Spend 2011 (est.) Total and by ‘platform’ in billion US dollars Source: Newzoo Infographics

Potential of Emerging Markets Russian Total Consumer Spend 2011 (est.) Total and by ‘platform’ in billion US dollars Source: Newzoo Infographics

Sizing global and local opportunitiesSizing The Total Market on Players or Revenues is not enoughIdeal: Players, Payers, Revenues by MMO Type/Genre and Business ModelStep 1 16% of 8.8m acave MMO gamers like United States Russia shooters: 1.4m Germans Germany Source: 2011 Newzoo Data Explorer, 2011 MMO Games Market Report

Sizing global and local opportunitiesSizing The Total Market on Players or Revenues is not enoughIdeal: Players, Payers, Revenues by MMO Type/Genre and Business ModelStep 2 Russia 32% of 2.6M acave MMO gamers that spend United States money in F2P MMOs like shooters: 830,000 Germany Germans (9% of all acave MMO gamers) Step 3Relate number of payers to money: approx. €55m annual marketSource: 2011 Newzoo Data Explorer, 2011 MMO Games Market Report

Sizing global and local opportunities Know your competitors and learn from their sucess Ideal: Monthly insight in the movers and shakers Fastest growing* F2P games September – October 2011 US Europe (incl. Russia) Latin America1.  League of Legends 1.  World Of Tanks 1.  Shaiya Riot Games Wargaming.net Aeria Games2.  Wizard101 2.  Grand Fantasia 2.  Priston Tale Kingsisle Aeria Games Hazit Online Games3.  Age of Conan Unchained 3.  League of Legends 3.  World of Tanks Funcom Riot Games Wargaming.net *Highest Player Acquisi3on Growth Rates within IQU’s 80M player proﬁle dBase.

Is Free-To-Play The End of Retail Sales?

Free to play boxed game.Koch Media

Gaming on Social NetworksSocial networks as gaming destination show limited growthBut social features are part of every game now Total: $1.8bn Total: €200m 2011 estimate 2011 estimate Source: Newzoo 2011 Games Market Revenue Report

Segmentation of game ‘platforms’Newzoo work in progress based on 200 variables of 20,000 gamers Factor Analysis: VisualisaRon plaSorms & size across 200+ topics 1 0.8 Social Casual 0.6 Factor1 0.4 Mobile MMOs 0.2 PC Download Consoles 0 PC Boxed -‐0.2 0 0.2 0.4 0.6 0.8 1 -‐0.2 Factor2

Mobile is relevant for everyoneNewzoo work in progress based on 200 variables of 20,000 gamers Factor Analysis: VisualisaRon plaSorms & size across 200+ topics 1 0.8 Social Casual 0.6 Factor1 0.4 Mobile MMOs 0.2 PC Download Consoles 0 PC Boxed -‐0.2 0 0.2 0.4 0.6 0.8 1 -‐0.2 Factor2

And opens up big screen opportunitiesNewzoo work in progress based on 200 variables of 20,000 gamers Factor Analysis: VisualisaRon plaSorms & size across 200+ topics 1 0.8 Social Casual online 0.6 TV Factor1 0.4 Mobile apps MMOs 0.2 PC Download cloud Consoles 0 PC Boxed -‐0.2 0 0.2 0.4 0.6 0.8 1 -‐0.2 Factor2

Sizing & Seizing the opportunityCross-platform potential | Players Relative 78% of all MMO gamers plays mobile games Players DE 36.300.000 Overlap with -‐-‐> Pladorm Portals Social Mobile MMOs Consoles Boxed Downloaded Portals 26.300.000 52% 66% 42% 70% 74% 61% Social 16.500.000 83% 74% 52% 80% 78% 65% Mobile 22.200.000 78% 55% 46% 78% 76% 63% MMOs 13.200.000 only shown live during webinar 77% only shown live 64% 83% 78% 85% 89% Consoles 24.600.000 75% 54% 70% 45% 79% 58% during webinar Boxed 26.000.000 75% 49% 65% 45% 75% 67% Downloaded 20.000.000 81% 54% 70% 51% 72% 87%

Sizing & Seizing the opportunityCross-platform potential | Players Absolute 10.2m MMO gamers that also play on mobile Players DE 36.300.000 Overlap with -‐-‐> Pladorm Portals Social Mobile MMOs Consoles Boxed Downloaded Portals 26.300.000 13.800.000 17.200.000 10.900.000 18.400.000 19.500.000 16.100.000 Social 16.500.000 13.800.000 12.200.000 8.500.000 13.200.000 12.800.000 10.700.000 Mobile 22.200.000 17.200.000 12.200.000 10.200.000 17.300.000 17.000.000 13.900.000 MMOs 13.200.000 11.000.000 8.500.000 10.200.000 only shown live during w ebinar 11.200.000 11.800.000 10.200.000 only shown live Consoles 24.600.000 18.400.000 13.200.000 17.300.000 11.200.000 19.400.000 14.300.000 during webinar Boxed 26.000.000 19.500.000 12.800.000 16.900.000 11.800.000 19.400.000 17.300.000 Downloaded 20.000.000 16.100.000 10.700.000 13.900.000 10.200.000 14.300.000 17.400.000

Sizing & Seizing the opportunityCross-platform potential | Payers 3.4m MMO gamers that also play on mobile Payers and spend money on both DE 24.000.000 Overlap with -‐-‐> Pladorm Portals Social Mobile MMOs Consoles Boxed Downloaded Portals 4.600.000 3.600.000 3.300.000 3.900.000 3.800.000 3.800.000 3.700.000 Social 3.100.000 2.400.000 2.500.000 2.600.000 2.800.000 2.700.000 2.600.000 Mobile 5.500.000 2.900.000 3.800.000 4.200.000 4.800.000 4.800.000 4.200.000 only shown live during webinar MMOs 4.500.000 2.800.000 3.200.000 3.400.000 3.800.000 3.800.000 3.600.000 only shown live during Consoles 14.200.000 3.900.000 5.100.000 5.700.000 7.100.000 12.300.000 7.700.000 webinar Boxed 17.000.000 3.800.000 5.200.000 6.200.000 7.900.000 14.100.000 9.100.000 Downloaded 7.500.000 3.300.000 4.200.000 4.400.000 4.900.000 6.400.000 6.900.000

Contact Reinout: reinout.te.brake@iqu.comContact Menno: menno.van.der.bil@iqu.comContact Peter: peter@newzoo.com

This might beyour lucky day.Two randomly selected participants receivethe 2011 Newzoo Games Market Report(value $1.350)

Thank You!Join us for quarterly key market update webinars! See you soon.

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Games Going Forward

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