Gate2Shop Games Industry Overview.

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GAMES INDUSTRY OVERVIEW
January, 2011

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Agenda
Agenda
Segments and Business Models
The Market
US Market
EU Market – Top 5
Industry Specifics

4
Online Game Segments
Main Segments:
Mobile Games, for example for mobile phone or PDA
Online Games: Casual, Social, MMOs, Browser-Based (often considered MMOs)
Console Games – distribution available both offline (DVD) or online (wi, PS, Xbox Live, etc)
Standard PC Games – if purchased online fall under retail market

Business Models
Pay-to-Play (client based) – customers have to pay an initial amount in order to start playing – Star Craft II, Diablo, Guild Wars, most Yahoo Games
Customer in most cases have to download the game in order to play it
This business model is slowly shifting towards Free-to-Play
Some major MMOs are based on this business model
5

Business Models
Free-to-Play – customer can play the game without paying anything.
Virtual currencies are available to advance in the game – Mafia Wars, Farmville
Customers most play such games in a web browser
Most gaming developers and publishers are moving towards this business model
6

Business Models
Play-to-Pay at “x” – Customers pay based on a certain criteria - level reached (every 5th level), special DLCs (unlocking special areas)
In most cases, customer have to download the game in order to play it
Sometimes this business model is coupled with a small initial amount
One of the best ways to monetize games
7

Business Models
Subscription based– Customers pay a small initial amount to have the game + monthly fee to play it – World of Warcraft, Conan
In most cases, customer have to download the game in order to play it
The best monetization business model but also the most difficult to achieve
Only a few gaming companies have managed to use it successfully
8

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Agenda
Agenda
The Market
US Market
EU Market – Top 5
Industry Specifics

Share of Games Wallet Across Platforms
10
Source: gamesindustry.com. Black Book 2011

MMO Revenue 2010
11

Playing vs Paying I MMOs 2010
12

Playing vs Paying I Game Portals 2010
13

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Agenda
Agenda
The Market
US Market
EU Market – Top 5
Industry Specifics

US Market – Survey 2010
15

US Market 2010
16

Social Games 2009
17

MMO Game Revenue 2009
18

Sell. More.
Agenda
Agenda
The Market
US Market
EU Market – Top 5
Industry Specifics

20
UK 2010

21
Germany 2010

22
France 2010

23
Netherlands 2010

24
Belgium 2010

Sell. More.
Agenda
Agenda
The Market
US Market
EU Market – Top 5
Industry Specifics

26
Industry Specific
MMO games represent the largest portion of online games, followed by wireless games
Wireless games are expected to grow by 14% on an annual basis reaching to up to $13 billion in 2013
The three largest game producers are – the US, Japan and the UK, followed by Germany and Australia
Around 41% percent of gamers are women

27
Industry Specific
Predominant payment method used for game purchases – credit cards
Larger MMOs depend heavily on alternative payment methods
The industry is one with many chargebacks, especially in the Free-to-Play business model
Games will shift towards the Free-to-Play business models in the next couple of years

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Gate2Shop Games Industry Overview.

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