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