Five app stores under the microscope Stuart Dredge

Who am I? UK journalist covering mobile, games and digital entertainment Mobile Entertainment / Music Ally Pocket Gamer / Recombu / What Mobile iPhone Games Bulletin First job in games – Official Dreamcast Magazine I wouldn’t get a job as a motivational speaker

UK journalist covering mobile, games and digital entertainment

Mobile Entertainment / Music Ally

Pocket Gamer / Recombu / What Mobile

iPhone Games Bulletin

First job in games – Official Dreamcast Magazine

I wouldn’t get a job as a motivational speaker

Key ideas for today Is there life beyond iPhone and its App Store? Two contenders: Android and BlackBerry Old handheld dogs learning new digital tricks PSP Minis and DSiWare The new breed of digital games developers Cross-platform, independent, own-IP...

Is there life beyond iPhone and its App Store?

Two contenders: Android and BlackBerry

Old handheld dogs learning new digital tricks

PSP Minis and DSiWare

The new breed of digital games developers

Cross-platform, independent, own-IP...

App Store – Key figures Addressable base of 50 million 100k apps available (20k games) More than 2bn downloads so far iPhone games market worth $2.8bn by 2014 (DFC) Avg user has spent $80 on 65 apps (AppsFire) Avg user downloads 10/18 apps a month (AdMob) 90% browse and download on the device (AdMob) 30-day retention rate for games – 72% (Flurry) But 90-day retention rate is 16%

Addressable base of 50 million

100k apps available (20k games)

More than 2bn downloads so far

iPhone games market worth $2.8bn by 2014 (DFC)

Avg user has spent $80 on 65 apps (AppsFire)

Avg user downloads 10/18 apps a month (AdMob)

90% browse and download on the device (AdMob)

30-day retention rate for games – 72% (Flurry)

But 90-day retention rate is 16%

App Store Games genre mix Source: Mobclix (Oct 2009)

App Store Top 100 Paid Games analysis (2-Nov-09) Own-IP is popular – 58% of Top 100 Paid chart Pricing pressure – Avg price in Top 100 is $2.89 But avg price in Top 10 is $2.09 (and $1.21 without Rock Band) 45 games cost $0.99 Rapid churn – 59% of Top 100 released since August Level playing field – 47% indie, 38% publishers EA has 13 titles in Top 100, Gameloft has 12 Glu, DChoc, Tapulous have 3 apiece

Own-IP is popular – 58% of Top 100 Paid chart

Pricing pressure – Avg price in Top 100 is $2.89

But avg price in Top 10 is $2.09 (and $1.21 without Rock Band)

45 games cost $0.99

Rapid churn – 59% of Top 100 released since August

Level playing field – 47% indie, 38% publishers

EA has 13 titles in Top 100, Gameloft has 12

Glu, DChoc, Tapulous have 3 apiece

App Store Top 100 Paid Games - Brand

App Store Top 100 Paid Games - Price

App Store Top 100 Paid Games - Source

App Store – Key trends Move to freemium model – free plus in-app payments Social media marketing increasingly important Plethora of social/community platforms Fear of piracy – up to 95% first-week piracy rates March of the clones and copyright disputes New recommendation tools and services Return of the publisher model Advergames making a comeback with big brands

Move to freemium model – free plus in-app payments

Social media marketing increasingly important

Plethora of social/community platforms

Fear of piracy – up to 95% first-week piracy rates

March of the clones and copyright disputes

New recommendation tools and services

Return of the publisher model

Advergames making a comeback with big brands

Android Market– Key figures 12+ Android phones available 12k apps in Android Market $5m of app revenues a month (AdMob) HTC, Motorola, Sony Ericsson... Avg user has downloaded 40 apps (Sep 09) 80% of users download at least one app a week Predicted 8m phones in 2009 (Strategy Analytics) Currently 3.5% share of global smartphones (Canalys) By 2012 – 76m phones and 14.5% share (Gartner)

12+ Android phones available

12k apps in Android Market

$5m of app revenues a month (AdMob)

HTC, Motorola, Sony Ericsson...

Avg user has downloaded 40 apps (Sep 09)

80% of users download at least one app a week

Predicted 8m phones in 2009 (Strategy Analytics)

Currently 3.5% share of global smartphones (Canalys)

By 2012 – 76m phones and 14.5% share (Gartner)

Android Market – Genre mix (Oct 09) Source: AndroLib

Android Market Top 100 Paid Games analysis (2-Nov-09) Note – based on HTC Hero, which is quite new Own-IP dominant – 95% of Top 100 Paid chart Cheaper than iPhone – Avg price in Top 100 is $2.67 But avg price in Top 10 is $3.42 20 games cost $0.99 – much more even spread 86% indie, 14% publisher 12 of the Top 100 are by named individuals Gameloft 2, Glu 2, EA 0 Four of the top 20 are retro console emulators!

Note – based on HTC Hero, which is quite new

Own-IP dominant – 95% of Top 100 Paid chart

Cheaper than iPhone – Avg price in Top 100 is $2.67

But avg price in Top 10 is $3.42

20 games cost $0.99 – much more even spread

86% indie, 14% publisher

12 of the Top 100 are by named individuals

Gameloft 2, Glu 2, EA 0

Four of the top 20 are retro console emulators!

Android MarketTop 100 Paid Games - Brand

Android Market Top 100 Paid Games - Price

Android Market– Key trends Developer unrest over dominance of free apps Android 1.6 separated out paid games – reports of 50% uplift Still concerns over short descriptions / technical gremlins Huge excitement from handset firms and operators BUT Huge excitement = huge fragmentation? Google: “Developers don’t care...” Native Android games yet to take off Middleware helping bridge the gap – e.g. Airplay 4.0 Role of the operators remains to be seen

Developer unrest over dominance of free apps

Android 1.6 separated out paid games – reports of 50% uplift

Still concerns over short descriptions / technical gremlins

Huge excitement from handset firms and operators

BUT Huge excitement = huge fragmentation?

Google: “Developers don’t care...”

Native Android games yet to take off

Middleware helping bridge the gap – e.g. Airplay 4.0

Role of the operators remains to be seen

BlackBerry App World Key figures 32m BlackBerry subscribers (Sep 09) Sold 8.3m devices in its last financial quarter 20.6% smartphone market share in Q3 09 (Canalys) More than 80% of its new users were consumers More than 3,100 apps now available More than 900 games – 29.3% of the catalogue

32m BlackBerry subscribers (Sep 09)

Sold 8.3m devices in its last financial quarter

20.6% smartphone market share in Q3 09 (Canalys)

More than 80% of its new users were consumers

More than 3,100 apps now available

More than 900 games – 29.3% of the catalogue

BlackBerry App World – Genre mix (Nov-09) Source: BlackBerry App World webstore

BlackBerry App World Top 100 Paid Games analysis (2-Nov-09) Own-IP big again – 62% of the chart Average price in Top 100 is $4.77 – more than rivals RIM’s $2.99 basement price is partly the reason 51% of the games cost $4.99 54% indie, 43% publisher – a more even split Gameloft (14), EA (8), DChoc (6), Glu (5) But also Concrete Software (9), Magmic (6) Very casual towards the top of the chart – time killers

Own-IP big again – 62% of the chart

Average price in Top 100 is $4.77 – more than rivals

RIM’s $2.99 basement price is partly the reason

51% of the games cost $4.99

54% indie, 43% publisher – a more even split

Gameloft (14), EA (8), DChoc (6), Glu (5)

But also Concrete Software (9), Magmic (6)

Very casual towards the top of the chart – time killers

App World Top 100 Paid Games - Brand

App World Top 100 Paid Games - Price

App World Top 100 Paid Games - Source

BlackBerry App World – Key trends So far – port J2ME games and charge a premium RIM’s focus has been more on music and social apps Not much talk about native / 3D BlackBerry gaming BUT – very big in the North American market RIM keen to get apps to use more platform features Push in particular – see U2 Mobile Album

So far – port J2ME games and charge a premium

RIM’s focus has been more on music and social apps

Not much talk about native / 3D BlackBerry gaming

BUT – very big in the North American market

RIM keen to get apps to use more platform features

Push in particular – see U2 Mobile Album

Top 10s – iPhone v Android v BlackBerry Date: 2 November 2009

PSP Minis – Key Facts Launched in October alongside PSPgo Also available for older PSPs though – 50m install base 19 games available so far on the UK store All titles under 100MB in file size and under $9.99 Publishers set their own pricing Sony promising 3-5 days QA / approval No ability for multiplayer, DLC or updates “ It’s something we will consider in the future” Being presented explicitly as response to iPhone

Launched in October alongside PSPgo

Also available for older PSPs though – 50m install base

19 games available so far on the UK store

All titles under 100MB in file size and under $9.99

Publishers set their own pricing

Sony promising 3-5 days QA / approval

No ability for multiplayer, DLC or updates

“ It’s something we will consider in the future”

Being presented explicitly as response to iPhone

PSP Minis –Analysis / Trends Average price in UK: £3.49 ($5.79-ish) Indie developers, mobile firms and... EA Gameloft, Hands-On, Subatomic Studios Other console firms not there at launch 16 of the 19 games are own-IP Sony reported massive week-one downloads spike Pricing has been compared negatively to iPhone...

Average price in UK: £3.49 ($5.79-ish)

Indie developers, mobile firms and... EA

Gameloft, Hands-On, Subatomic Studios

Other console firms not there at launch

16 of the 19 games are own-IP

Sony reported massive week-one downloads spike

Pricing has been compared negatively to iPhone...

Comparative Pricing: iPhone v PSP Minis

DSiWare – Key Facts Launched alongside DSi in April 2009 (Europe / US) Unlike PSP Minis, not available to older DS handhelds Estimated install base of over 10 million devices 49 games/apps available in the UK right now Uses DSi Points to buy games – 1,000pts for £9

Launched alongside DSi in April 2009 (Europe / US)

Unlike PSP Minis, not available to older DS handhelds

Estimated install base of over 10 million devices

49 games/apps available in the UK right now

Uses DSi Points to buy games – 1,000pts for £9

DSiWare – Analysis / Trends Games priced at 200, 500 and 800 points Equivalent to £1.80, £4.50 and £7.20 33 of the 49 titles are from Nintendo Spin-offs from existing brands – Kawashima, Animal Crossing... Not always games – e.g. Mario Clock Gameloft has five titles, Firemint bringing Flight Control How does pricing compare to iPhone?...

Games priced at 200, 500 and 800 points

Equivalent to £1.80, £4.50 and £7.20

33 of the 49 titles are from Nintendo

Spin-offs from existing brands – Kawashima, Animal Crossing...

Not always games – e.g. Mario Clock

Gameloft has five titles, Firemint bringing Flight Control

How does pricing compare to iPhone?...

Comparative Pricing: iPhone v DSiWare

What does it all mean? iPhone has huge momentum with developers BUT: downward pricing pressure BUT: ferocious competition Android and BlackBerry increasingly appealing Big install bases and promotion from mobile operators Less competition on their App Stores, and higher prices Courting iPhone developers like billy-o BUT: handset fragmentation rearing its head BUT: not as powerful as iPhone... Yet BUT: Less chance to benefit from social media buzz

iPhone has huge momentum with developers

BUT: downward pricing pressure

BUT: ferocious competition

Android and BlackBerry increasingly appealing

Big install bases and promotion from mobile operators

Less competition on their App Stores, and higher prices

Courting iPhone developers like billy-o

BUT: handset fragmentation rearing its head

BUT: not as powerful as iPhone... Yet

BUT: Less chance to benefit from social media buzz

What does it all mean? PSP Minis and DSiWare offer route into handheld Sony and Nintendo courting iPhone developers (sort of) Ability to reuse assets – not a huge leap visually Higher prices – and gamers who may be happy to pay them BUT: not as easy as just porting games across Don’t forget there are other app stores too Ovi Store (Nokia) Windows Marketplace for Mobile (Microsoft) Palm App Catalog Vodafone 360, Orange Application Store...

PSP Minis and DSiWare offer route into handheld

Sony and Nintendo courting iPhone developers (sort of)

Ability to reuse assets – not a huge leap visually

Higher prices – and gamers who may be happy to pay them

BUT: not as easy as just porting games across

Don’t forget there are other app stores too

Ovi Store (Nokia)

Windows Marketplace for Mobile (Microsoft)

Palm App Catalog

Vodafone 360, Orange Application Store...

The Big Picture Rise of the cross-platform digital games developer (or publisher, obviously) Mobile + handheld + web/Facebook + console Example: Connect2Media and Go Go Rescue Squad Example: Digital Chocolate and Tower Bloxx Example: Subatomic Studios and Fieldrunners Example: Firemint and Flight Control Example: Gameloft and Brain Challenge iPhone and Facebook emerging as hit creation platforms

Rise of the cross-platform digital games developer

(or publisher, obviously)

Mobile + handheld + web/Facebook + console

Example: Connect2Media and Go Go Rescue Squad

Example: Digital Chocolate and Tower Bloxx

Example: Subatomic Studios and Fieldrunners

Example: Firemint and Flight Control

Example: Gameloft and Brain Challenge

iPhone and Facebook emerging as hit creation platforms

Thanks! Contact me: [email_address] iPhone Games Bulletin: www.iphonegamesbulletin.com This presentation will be online later today at www.mobile-ent.biz

Contact me: [email_address]

iPhone Games Bulletin: www.iphonegamesbulletin.com

This presentation will be online later today at www.mobile-ent.biz