GAMING
TRENDS

DEMOGRAPHIC
SHIFTS

WHO PLAYS COMPUTER AND VIDEO
GAMES? 65% OF AMERICAN HOUSEHOLDS PLAY COMPUTER VIDEO GAMES Source: ESA “Essential Facts”, 2008 3 | 57

COMING UP NEXT A society
born in gaming Image: PlayStation 2 “Baby” 4 | 57

SHIFT IN AGES: FROM THE
1970s TO THE MID-1990s Tweens & Teenagers reigning supreme Image: PlayStation 3 “God” 5 | 57

SHIFT IN AGES: THE EMERGENCE
OF THE PLAYSTATION Change of focus: 18-35 years old core male gamers Image: PSP “Blind” 6 | 57

SHIFT IN AGES: TODAY Age
of U.S. game players Today, the average game player age is 32 25% under 18 years 49% 18-49 years 26% over 50 years Source: ESA, 2008 + IGN’s “Are You Game” from November 2008 7 | 57

SHIFT IN AGES: TODAY Age
of U.S. game players Today, the average game player age is 32 20% 45-54 years 17% 45-54 years 20% 35-44 years 20% 35-44 years 22% 25-34 years 27% 25-34 years 19% 18-24 years 16% 18-24 years 17% 12-17 years 22% 12-17 years New gamers Established gamers (<2 years) (>2 years) Source: IGN’s “Are You Game” from November 2008 8 | 57

SHIFT IN GENDER: THE GIRL
POWER Gender of U.S. game players 40% Female 60% Male Source: ESA “Essential Facts”, 2008 | Image: Nintendo DS Lite “Woman” 9 | 57

SHIFT IN BEHAVIOR The way
we consume video games today has changed. People don’t spend hours playing video games anymore. Image: Lego “PlayStation” 10 | 57

SHIFT IN BEHAVIOR WHAT DOES
Wii’S SUCCESS TEACH US? Create devotees out of people who didn’t consider themselves as gamers (and who, often, still don’t) 11 | 57

SHIFT IN BEHAVIOR WHAT DOES
Wii’S SUCCESS TEACH US? A strategy of “and” Hard core & Casual 12 | 57

SHIFT IN BEHAVIOR MAINSTREAM GAMES
EVOLVING TO SEDUCE CASUALS 13 | 57

SHIFT IN BEHAVIOR THE EMERGENCE
OF SOCIAL GAMING 59% OF GAMERS PLAY WITH OTHER GAMERS IN PERSON. Source: ESA “Essential Facts”, 2008 | Visual: PlayStation 2 “Mould” 14 | 57

GAMING
UBIQUITY

GAMES ARE ENJOYED ON AN
INCREASINGLY DIVERSE ARRAY OF SCREENS 16 | 57

GAME & WATCH: CONSOLES OR
MEDIA HUBS?

GAMING IS PROGRESSIVELY MOVING FROM
THE BEDROOM TO THE LIVING ROOM 18 | 57

FROM GAMING CONSOLES TO SCHIZOPHRENIC
ENTERTAINMENT HUBS Gaming hardware Technology toy Music platform TV/Set-top box Blu-Ray player Online video Photo album Web browsing 19 | 57

THE CONVERGENCE OF ENTERTAINMENT Media
initiatives Xbox Video Marketplace Netflix partnership BBC iPlayer PS3 PlayTV etc. 20 | 57

CONNECTED
GAMING

NEXT GENERATION IS NOT DEFINED
BY TECHNOLOGY BUT CONNECTIVITY/COMMUNITY 76%ARE OF USERS ONLINE GAMERS 70%ARE 40% LIVE OF USERS HAVE AN XBOX ONLINE GAMERS GOLD ACCOUNT (VS. 10% ON XBOX 1) 70%ARE OF USERS ONLINE GAMERS Sources: NPD Study, October 2007 | ESA, 2008 22 | 57

THE NEW GENERATION OF CONSOLES
IS NOT DEFINED BY TECHNOLOGY BUT BY CONNECTIVITY/COMMUNITY 49% OF GAMERS PLAY GAMES ONLINE AT LEAST ONE HOUR PER WEEK Source: NPD Study, October 2007 | ESA, 2008 23 | 57

MOST RECENT GAMES ARE ONLINE-ENABLED
Image: Grand Theft Auto 4 24 | 57

THE ADVENT OF MMOGs MMOG
Active Subscriptions (in millions, for games with 200,000+) 10M World of Warcraft Lineage 9M Everquest 8M Dark Age of Camelot RuneScape 7M Final Fantasy XI Dofus 6M Everquest II Lineage II 5M Ultima Online 4M 3M 2M 1M 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: MMOG Charts, April 2008 25 | 57

TALES OF A USER-GENERATION Communities
are increasingly involved in the expansion of the experience Image: Try“Lubricant Gel” 26 | 57

HALO 3 30% more uploads
of user-generated content (machinima, maps, etc.) than YouTube videos during the first month Source: Microsoft keynote, GDC 2008 | Image: Halo 3 27 | 57

LITTLE BIG PLANET’S CREATION TOOLS
Create your levels/share them/monetize them? The first gaming economy? Source: Press conference with David Reeves, President SCEE | Image: Little Big Planet 28 | 57

GUITAR HERO: WORLD TOUR MUSIC
CREATOR Create your songs Share them Image: Guitar Hero World Tour 29 | 57

SPORE’S CREATURE GENERATOR 2 million
creatures created and shared in a month Images: Spore 30 | 57

Spore: YouTube Integration Upload videos
of your creations on YouTube in 2 clicks Watch the Case Study 31 | XX

DIY (DEVELOP IT YOURSELF) INITIATIVES
Development & distribution tools for independent developers Image: David Perry’s Project Top Secret 32 | 57

PLAYSTATION HOME Image: PlayStation Home
33 | 57

KEY LEARNING Gamers cease to
be consumers and start to become contributors Image: PlayStation Home 34 | 57

DIRECT
DISTRIBUTION

DIGITAL DISTRIBUTION PUTTING THE SQUEEZE
ON TRADITIONAL RETAIL The end of the box? Gaming is embracing online as a potential distribution medium Image: Warhawk 36 | 57

DIGITAL DISTRIBUTION PUTTING THE SQUEEZE
ON TRADITIONAL RETAIL Entire game libraries online Steam, Metaboli, GameTap, etc. Image: Half Life 2 37 | 57

UNLOCKING NEW BUSINESS MODELS Pay-per-play
logic Monthly subscriptions Episodic distribution, etc. Image: World of Warcraft 38 | 57

VIDEO GAME
INDUSTRY
MATURING

GAMING IS NOW BIGGER THAN
DVDs, BOX OFFICE, MOVIE RENTALS, BOOKS OR MUSIC A $34 billion industry worldwide Asia: $11.5 billion Europe: $11.4 billion U.S.: $10.7 billion Sources: Wired, 2008 | GamesIndustry, 2008 | ESA “Essential Facts”, 2008 | NPD Group/Retail Tracking Service 40 | 57

THE CONNECTION BETWEEN GAMES AND
MOVIES IS NOW TIGHTER THAN EVER Tighter connection than ever between games and movies Image: Wall-e 41 | 57

THE NATURE OF GAMING/MOVIE’S LOVE
STORY HAS CHANGED High-profile brains coming from the movie industry to experiment Image: Prince of Persia 42 | 57

GAMING IS NOW POWERFUL ENOUGH
TO GENERATE MULTIMEDIA FRANCHISES Gaming now generates its own franchises Image: God of War 43 | 57

ADVERTISING
AND GAMING

VIDEOGAMES BECOMING AN ADVERTISING CHANNEL
Projected U.S. in-game video ad revenue $829 $665 $502 $346 2006 2007 2008 2009 Source: eMarketer, April 2007 / Advertising Age Fact Pack, 2008 45 | 57

Video Case Study BURGER KING
ADVERGAMES 3.22 million titles sold at $3.99 each Source: Microsoft official sales numbers, 2007 | Cannes Lions awards archive, 2008 46 | 57

IN-GAME ADVERTISING EXAMPLE: OBAMA CAMPAIGN
2008 In-game advertising specialists Massive IGA Worldwide Double Fusion GameCreative NeoEdge Jogo 47 | 57

PRODUCT PLACEMENT EXAMPLE: METAL GEAR
SOLID 4 Images: Metal Gear Solid 4 48 | 57

MARKETING PARTNERSHIPS NIVEA/SPLINTER CELL TIE-IN
Nivea For Men marketing site In-game advertising program in Splinter Cell IV Dedicated standalone game Images: RDA’s ad campaign for Nivea “The Good Side” and Splinter Cell 49 | 57

RADICAL EVOLUTION OF HOW VIDEO
GAMES ARE ADVERTISED

Video Case Study WHAT TO
LEARN FROM HALO 3? See the website THE EPITOME OF INTEGRATED COMMUNICATIONS Integrated Campaign: One unifying message 80 executions Credits: AKQA + McCann Erickson (advertising agencies) 51 | 57

See the website WHAT TO
LEARN FROM BIOSHOCK? INTEGRATED VIRAL CAMPAIGN “The Cult of Rapture” spread real-world evidence that this underwater utopia may have actually existed Newspaper clippings | Wikipedia definitions eBay auctions | Old radio recordings, etc. Credits: RDA International (ad agency) 52 | 57

FAN SERVICE: CREATE AND FOSTER
COMMUNITIES “The nature of community management is one which changes constantly. Currently it’s all about videos, blogs and being on social networking sites. Those things weren’t around back in 1999. Back then all you needed was a fan site, some basic HTML knowledge and you had a public platform!” San Van Tilburgh Lionhead Community liaison officer 53 | 57

THANK YOU FOR NOT BOOING
OR THROWING TOMATOES. Jérôme Sudan Account Planner www.advertisingpawn.com jeromesudan@yahoo.fr