Casual Games Sector Report: Mobile GamingDocument Transcript
Mobile Gaming 2012C A SUAL G AME S SEC TOR REP OR T
What aremobile games? Games that run on a mobile device such as a mobile phone,What makes mobile games special? smartphone or1. 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.
Keep in mind smartphone penetrationSmartphones don’t rule the world… Global 15% MOBILEyet. As smartphone penetration feature phone penetrationincreases, 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.comDevice FragmentationLots of different phones, meansvarying gaming capabilities,operating systems, processingpower, 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 BelleiOS dominates mobile gaming Revenue by smartphone OSbut 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 itspayment process. Mobile Gaming Report 2012 CA S UA L G A M E S A S S O C I AT I O N
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
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% 100.0Revenue Models: 2012E 2013E Revenue Models % of MarketmodelsModels % of Market 2013E 201 2012E revenue Revenue % of market 2014E 2012E 2013E 2014E 2015E 2012E 2013E 2014E 2015E1. 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
Notable ContentProvidersEA Mobilewww.eamobile.comEA has been very vocal about their aggressive Roviomobile gaming strategy. And their www.rovio.comaggressiveness 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 Birds19% 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 statesGameloft that a new non-Angry Birds game will bewww.gameloft.com released in 2012.Gameloft primarily develops for mobileplatforms. They recently reported a 18% YoYsales increase (2010 to 2011). Currently, NexonGameloft is developing games for GREE, as the www.nexon.netmobile 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 aZynga 20% stake in a mobile gaming company. Nexoncompany.zynga.com/games/mobile-games plans to launch more than 10 smartphoneIndustry insiders speculate that mobile is games this year.Zynga’s weak spot since Facebook doesn’tdominate and competitors are already gainingmarket share. As of January, Zynga reached 15 NOTABLE PLATFORMSmillion daily active mobile gamers and haveplans to roll out more mobile than Facebook GREE gree-corp.comgames 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.
$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 $0.30he 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
Key TerminologyARPPU Average Revenue Per Paying User. FREEMIUM Offering a game, product or service free of charge (such asARPU Average Revenue Per User. software, web services or other) while charging a premium for advanced features, functionality, or related productsCOST PER ACQUISITION (CPA)/ and services.CUSTOMER ACQUISITION COSTCost 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 particularapplication installs attributable to that campaign. game during his or her lifetime with the game.DAILY ACTIVE USERS (DAU) MICROTRANSACTIONSThe 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 applicationDownloadable Content. at least once over the course of a month.eCPM SMARTPHONEEffective Cost per Thousand Impressions is a measure of Mobile phone with computer enabled features, such as datatotal revenue (or cost) per impression. eCPM is calculated storage, high speed internet access, media players andby dividing total earnings (or total costs) by total number e-mail capability. Smartphones also support third partyof impressions. application integration.FEATURE PHONE VIRTUAL GOODSCategory between mobile phone and smartphone. These In-game items or game-related services, such as virtualdevices 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 smartphonesand have limited third party application support andintegration. ABOUT THE CASUAL GAMES ASSOCIATION For press inquiries, please email firstname.lastname@example.org 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 Learn more about the mobile games portion of the success of your company and the industry as a whole. It industry with the best speakers, means that you and your team have access to cutting edge educational networking, lectures and data to help you resources and are connected to thousands of other game industry succeed in a crowded market at professionals, members of the press and service providers around the globe. Casual Connect Asia: May 22-24 and Learn more at http://www.casualgamesassociation.org/ Casual Connect Seattle: July 24-26.