KEY TRENDS AND GROWTH KPI’S     FUELING MARKET GROWTH     INTRODUCTION     Only five years ago consumers played games prim...
SMARTPHONE AND TABLET GAMINGTHE GLOBAL PICTUREKEY GLOBAL FACTSON SMARTPHONE AND TABLET GAMINGFueled by simultaneous uptake...
A NEW LOOK AT THE GAMES MARKET   CONSUMERS AND THEIR FOUR SCREENSNEWZOO SCREEN SEGMENTATION MODEL™The Newzoo Screen Segmen...
FREE TO PLAYTHE KING OF MOBILE GAMINGREVENUE AND DOWNLOAD DEVELOPMENT OVER TIMEDOWNLOADS                                  ...
APPLE VS GOOGLE PLAYCLOSING THE GAPSHARE OF REVENUES BY STORETOP 200 GROSSING GAMES,DECEMBER 2012Even as Google Play begin...
CROSS-SCREEN GAMINGFOLLOWING THE CONSUMERSCREEN MONETIZATIONSPLIT OF MONEY AND SHARE OF PAYINGGAMERS THAT PAY ON A SCREENC...
TOP MOBILE GAMES PUBLISHERSiOS VS PLAYSTORE (GROSSING)iOS PUBLISHERS - DECEMBER 2012                                      ...
TOP MOBILE GAMESiOS VS PLAYSTORE (GROSSING)iOS GAMES - DECEMBER 2012                                                      ...
KNOW YOUR GAMERCONSUMER INSIGHTSAND APP METRICSPROFILING THE PAYERNewzoo’s Data Explorer helpsour clients to develop marke...
NEWZOO PARTNERSSUPPORTING YOUR GLOBALBUSINESS DEVELOPMENTAmsterdam,the perfect city for your game companyFour reasons why ...
12Full EU/US mobile report available. Order at Newzoo.com
Newzoo Mobile Games Trend Report Free
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Newzoo Mobile Games Trend Report Free

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Placing smartphone and tablet gaming in perspective of the total games market.

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Newzoo Mobile Games Trend Report Free

  1. 1. KEY TRENDS AND GROWTH KPI’S FUELING MARKET GROWTH INTRODUCTION Only five years ago consumers played games primarily using the PC ABOUT NEWZOO and TV screen. The uptake of smartphones and tablets has since Newzoo is an international full service market research and consulting firm, doubled the number of screens used by consumers to engage with 100% focused on the games industry. We aim to provide the best and most entertaining content. Consumers are spreading their time and money actionable independent market data across all segments, business models accordingly, resulting in rising pressure on single-screen revenues. and continents. Our clients benefit from our unique mix of primary consumer At the same time, the use of jargon and hyped terminology within the research, transactional data and financial analysis. Using our extensive network and deep involvement in the industry, we aim to industry has confused external investors who sliced their investment stay ahead of the curve and at least two steps ahead of traditional research volume in half in 2012. companies. Misleading headlines by traditional press and research organizations about a games market in decline have exacerbated this problem that Our clients include Wizards of the Coast, Plantronics, Incomm, SEGA, ProSieben, we, as an industry, need to resolve. Konami, Blizzard, GlobalCollect, NamcoBandai, GameHouse, Microsoft, Valve, This has motivated Newzoo to consolidate our efforts further in pro- Coca-Cola and VISA. viding the total and global picture in 2013 and beyond. WWW.NEWZOO.COM Part of this effort is already reflected in this Mobile Games Trend Report. This includes our Screen Segmentation ModelTM that we use in parallel with the traditional segmentation, which will fade out over time. ure spot fut nge and reen data in a and cha ingle-sc underst ce s “ To truly ed to pla en perspective . tunitie s we ne lti-scre e driven by oppor nd mu global a ly, changes ar e trics” Ultimat ers and not me consum OO O NEWZ AN, CE WARM PETER THE 5 Key Trends leading change1. More Screens in the global games market Only five years ago, gamers played mainly on two screens: The TV and the PC. That number has since doubled giving room for more time and ultimately money spent on gaming. For now, gamers spread their budget across all screens.2. Free Games Consumers have gotten used to the idea of trying a game to the full before they decide to spend money. The days of low quality free games have passed as in- game spending business models have proven success- ful. Next stop: The TV screen...3. Games are Services As monetization now takes place within the game at a moment the consumer chooses, publishers and devel- opers are even more incentivized to keep their gamer engaged as long as possible. Beta periods are crucial involving the gamers in the final settings of the game.4. Business Model Balancing Act Now that games are services, the business model requires continuous balancing between value for the consumer and profit for the publisher. Monetization of the game should keep free gamers happy and provide room for spending by the “whales”. The launch of a game is just the start...5. Global Market Place The games market is now, per definition, a global playground. Online connectivity allows companies to localize and launch games anywhere on the planet. To © 2013 Newzoo secure growth, emerging markets are a necessary part of any game companies strategy. 2 Full EU/US mobile report available. Order at Newzoo.com
  2. 2. SMARTPHONE AND TABLET GAMINGTHE GLOBAL PICTUREKEY GLOBAL FACTSON SMARTPHONE AND TABLET GAMINGFueled by simultaneous uptakein Western, Emerging and Asianmarkets, mobile games show asubstantial growth compared toother games market segments.Most impressive are the figuresshown here on app downloadsand spending. One in three appdownloads are games and twothirds of all mobile appspending is on gaming.Examining the global figures wecan see there are more than 500million mobile gamers, with 35%of these (175 million) spendingmoney. © 2013 Newzoo / DistimoMobile (PAYING) GAMERS PER COUNTRYSHARE OF ALL (PAYING) GAMERS, AGE 10 TO 50 (2012)In all countries themajority of gamers playson their smartphone ortablet, ranging from 53%in Belgium to 79% in theUK. Spain has the secondlargest share of mobilegamers (77%), followedby Brazil (71%) and Russia(70%). As the share ofpaying gamers continuesto grow, the UK leads thefield with 38% of mobilegamers actually spendingmoney. Brazil, Australiaand Italy follow closelybehind, with at least 35%of their mobile gamerspaying to play. © 2013 Newzoo 3 Full EU/US mobile report available. Order at Newzoo.com
  3. 3. A NEW LOOK AT THE GAMES MARKET CONSUMERS AND THEIR FOUR SCREENSNEWZOO SCREEN SEGMENTATION MODEL™The Newzoo Screen Segmentation Model™ distinguishesbetween four types of screens: the Computer, Entertain-ment, Personal and Floating Screen.According to this new model, each of the four screens playsa different role, yet all of them are firmly present in consum-ers’ lives and therefore continuously used.To examine “mobile games”, we focus on the floating screenwhich accounts for the use of tablets as well as handheldconsoles and the personal screen which covers smart-phones. THREE REASONS WHY This New Segmentation is NEEDED 1 Investors are lost Our jargon and over-hyped terminology in com- bination with misinterpreted headlines (about the decline of traditional sales) is damaging our industry. We are confusing investors without giving them the total picture. Result: Investments from outside our industry have dropped by 50% compared to 2011. 2 Spread of budget Consumers are spreading their time and budget across double the number of screens than five years ago. Result: Game companies are forced to follow their consumers and take a multi-screen approach. 3 Single-screen marketing unaffordable Single-screen cost of acquisition has risen too high to secure lasting success through a pure (sin- gle-screen) metrics approach. Result: mobile game companies need to attract (paying) players across the other screens. © 2013 Newzoo YEAR-ON-YEAR-GROWTH US AND EU MOBILE GAMES MARKET (2012 vs 2011) FOUR GROWTH KPI’S Reports on the games market pre- dominantly focus on the number of players and/or money generated. To monitor and fully understand changes in the games market, these figures alone are not enough. This is especially true now that free-to-play is becoming the dominant business model. The growth in time spent gaming and number of paying gamers are key indicators of future growth. © 2013 Newzoo 4 Full EU/US mobile report available. Order at Newzoo.com
  4. 4. FREE TO PLAYTHE KING OF MOBILE GAMINGREVENUE AND DOWNLOAD DEVELOPMENT OVER TIMEDOWNLOADS REVENUES © 2013 Newzoo/DistimoMOBILE GAMES AS A SERVICEExamining F2P games, such as Kingdoms of Camelot by Kabam, we can see the revenues risealongside the downloads and continue to rise even as the download figures drop. Thus, F2Pgames generate steady and continuous revenues long after their downloads have slowed. Thisis not true for P2P games such as Infinity Blade, which see a direct linear relationship betweenrevenues and downloads. iOS REVENUES SPLIT BY BUSINESS MODELThe steadyrise of F2PFree-to-play has continued toprove the most profitable busi-ness model in the mobile sectorand has further increased itsdomination in 2012.Comparing iOS revenue splitsfrom December 2011 withDecember 2012, we see F2Pgames taking 70% of therevenue pie across the EUand the US. This is an averageincrease of 20% from the sameperiod in 2011. Paid games withan in-app business model areperforming slightly better inEurope than in the US. 5 © 2013 Newzoo/Distimo Full EU/US mobile report available. Order at Newzoo.com
  5. 5. APPLE VS GOOGLE PLAYCLOSING THE GAPSHARE OF REVENUES BY STORETOP 200 GROSSING GAMES,DECEMBER 2012Even as Google Play begins to take a larger slice ofmobile revenues, the iOS store continues to dom-inate in Europe and the U.S., taking 81% and 87%of revenues respectively. Interestingly, Japan sees amore even picture, with the Google Play Store taking35% of mobile revenues. This figure is due, in part, tothe under performance of the iPad in Japan. © 2013 Newzoo / Distimo PROFILING THE MOBILE GAMER WORK SITUATION AND INCOME Examining the demographics of iOS and Play Store gamers, we can better understand the above split in revenues. Almost half of IOS gamers are in full- time employment compared to 38% of Google Play gamers. iOS gamers also boast higher incomes, with 28% in the High Income category, compared to 17% of gamers who use Google © 2013 Newzoo Play.WOMAN PLAY, MEN PAYGENDER SPLIT FORPAYING MOBILE GAMERSIn recent years, we have seen anincrease in the number of femalegamers, to the extent that mostWestern countries now have a50/50 split, with some boastingmore female than male gamers.This split however, doesn’t holdwhen we examine paying gamers.Men are much more willing topay for their gaming experience,making up 61% of all payers inthe US. This trend is even moresalient in emerging markets suchas Turkey and Poland, where 70%of all paying gamers are male. © 2013 Newzoo 6 Full EU/US mobile report available. Order at Newzoo.com
  6. 6. CROSS-SCREEN GAMINGFOLLOWING THE CONSUMERSCREEN MONETIZATIONSPLIT OF MONEY AND SHARE OF PAYINGGAMERS THAT PAY ON A SCREENConsumers now play across four screens andspread their budget spread across the enter-tainment (29%), computer (50%), personal (7%)and floating (14%) screens. As we can see, of allthe paying gamers in the US, 32% of them spendmoney on the personal screen (mobile) and 37%spends money on the floating screen (tablet &handheld consoles). Although only 7% of moneygoes to mobile, we expect this figure to rise asthe number of mobile payers increases.A remarkable 21% (EU) / 22% (US) already playsgames on all four screens. © 2013 Newzoo OVERLAP AND GROWTH SMARTPHONES VS TABLETS VS HANDHELDS CONSOLES Of all smartphone, tablet or handheld gamers in the US, 50% play only on their smartphone, 12% use both a tablet and a smartphone and 11% use a smartphone and a handheld console. The greatest insights can be gleamed by looking at the changes in these figures between March and Sep- tember 2012. The number of people using both a tablet and a smartphone is up by an impressive 52%. Thus, personal and floating screens are complementary and developing games for both platforms is essential. © 2013 Newzoo 7 Full EU/US mobile report available. Order at Newzoo.com
  7. 7. TOP MOBILE GAMES PUBLISHERSiOS VS PLAYSTORE (GROSSING)iOS PUBLISHERS - DECEMBER 2012 © 2013 Newzoo / DistimoPLAYSTORE PUBLISHERS - DECEMBER 2012 © 2013 Newzoo / Distimo 8 Full EU/US mobile report available. Order at Newzoo.com
  8. 8. TOP MOBILE GAMESiOS VS PLAYSTORE (GROSSING)iOS GAMES - DECEMBER 2012 © 2013 Newzoo / DistimoPLAYSTORE GAMES - DECEMBER 2012 © 2013 Newzoo / Distimo 9 Full EU/US mobile report available. Order at Newzoo.com
  9. 9. KNOW YOUR GAMERCONSUMER INSIGHTSAND APP METRICSPROFILING THE PAYERNewzoo’s Data Explorer helpsour clients to develop marketingstrategies and effectively targetpaying gamers. The tool includes200 topics for 15 countries andallows for the sizing and com-parison of markets in terms ofplayers, payers and money.It makes it easy to profile payingvs. non-paying gamers andunderstand cross-platform orscreen potential. Subscription tothe data explorer allows accessto the market intelligenceneeded to support growth acrossall screens and segments. © 2013 NewzooMONITORING APPSTogether with our App Analyticspartner Distimo, we offer an on-line dashboard that allows youto analyze daily download andrevenue estimates for a selectionof iOS and PlayStore games.It provides insight into daily,weekly and monthly leader-boards of the top 44 countriesworldwide and enables theanalysis of any app in the market– whether it is a competitor, po-tential partner or an investmentopportunity. © 2013 Newzoo / Distimo BEST OF BOTH WORLDS Newzoo provides a unique subscription service combining both consumer and transactional data. Both are accessed and analyzed online. By providing the best app analytics in the world with the best games market research expertise, we can give you continuous insight that your competitors do not have. “Newzoo has been working with Distimo data for almosttwo years and knows this industry inside-out. We believethe strength of this partnership lies in the combination of Newzoo’s global games market expertise and our data, which delivers the best actionable insights for leading game companies.” -Vincent Hoogsteder - CEO DISTIMO More information on this subscription, a monthly summary report service and custom analysis possibilities can be found on Newzoo.com. 10 Full EU/US mobile report available. Order at Newzoo.com
  10. 10. NEWZOO PARTNERSSUPPORTING YOUR GLOBALBUSINESS DEVELOPMENTAmsterdam,the perfect city for your game companyFour reasons why game companies such as PerfectWorld, Gamania and DeNA havechosen the Amsterdam Metropolitan Area for their European office. Central location in Europe The Netherlands sits nicely and independently in between Europe’s largest markets: the UK, Germany and France and is known to be a perfect test market for new digital media products. Excellent Infrastructure Amsterdam is home to the Amsterdam Internet Exchange, the world’s largest internet hub in terms of both traffic and members. Multilingual Workforce Amsterdam has always been very international in terms of people, languages and business. It is also easy to attract talent from other parts of Europe to spend some years in Amsterdam. Financial Framework Many international companies, such as IKEA have set up their financial HQ in the Netherlands. Please contact me to see what advantages apply to your specific situation. Annelies in ‘t Veld Senior Manager Foreign Investments City of Amsterdam | Economic Affairs veld@ez.amsterdam.nl +31 (0)20 552 3204Payments Intelligence,the fastest way to increase revenuesGlobalCollect is the worlds’ premier provider of payment ser-vices. It processes payments across the globe for the majorityofleading game publishers and distributors.> 115 million gaming payments in 2012 In 2012 GlobalCollect processed over 115M video gaming transactions globally. Gaming payments data and benchmarks are available to clients based on gaming platform, game type, monetization model and genre. Payment specific data includes global payment method popularity, average trans- action values, fraud benchmarks, country specific volumes, transaction volume figures etc. GlobalCollect has deep gaming knowledge and provides advice to clients on paymentization practices including checkout flows, Nathan Salisbury multi-acquirer management, alternative payment method optimization, Global Market Director - Gaming localization best practices and benchmarking for credit card processing. GlobalCollect nathan.salisbury@globalcollect.com +31 (0)23 567 1500 11 Full EU/US mobile report available. Order at Newzoo.com
  11. 11. 12Full EU/US mobile report available. Order at Newzoo.com

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