Our CEO, Peter Warman, delivered Gameforum's keynote in January 2018 in London. Gaming has entered a new phase of accelerated growth from both a consumer and an industry perspective. Its “new” form is accelerating the convergence of the mobile, sports, media, and entertainment industries. What opportunities do these new dimensions of gaming provide anyone with a stake or interest in the games market and industry?

1. CHANGING BUSINESSES FOR GOOD
THE NEW DIMENSIONS
OF GAMING
JANUARY 2018
TREND SESSION
PETER WARMAN
CEO & CO-FOUNDER

2. 2
“I'll be in London to attend #Gamesforum this week.
Really looking forward to a number of interesting
talks and speakers:
The one and only Peter Warman from Newzoo will
present his vision on what the future has in store
(spoiler: bigger, better, bananas).
- Ralph Urmel, Digital Communications Manager, Belgian Lottery

3. 3
GAMING
IS ABOUT
GOING BANANAS

4. LET’S GO BANANAS
AND THINK BIG
1

5. GAMING
IS ALL ABOUT
MEDIA & TECH

6. GAMES DRIVE CHANGE
6
WE ARE AT THE NEXUS OF CHANGE
OTHERS
GAME COMPANIES INVOLVED IN THE
REVOLUTION OF AUTOMOTIVE.
ASIAN TECH FIRMS REGAIN
CONFIDENCE TO CONQUER THE
WEST AND INVEST HEAVILY IN
SILICON VALLEY.

7. GAMES DRIVE CHANGE
7
WE ARE THE NEXUS OF CHANGE
“THE FIRST ESPORTS AND GAMING
RECRUITMENT AND MANAGEMENT
PLATFORM THAT USES BLOCKCHAIN
& SMART CONTRACTS TO UNLOCK A
MULTI-BILLION DOLLAR ECONOMY
BASED ON DREAMTEAM TOKENS”
OTHERS

8. GAMES DRIVE CHANGE
8
WE ARE THE NEXUS OF CHANGE
OTHER BRANDS
MACHINEZONE BRINGS THE UNIQUE
ANALYTICS CAPABILITIES BEHIND
WORLD’S MOST SUCCESFUL MOBILE
GAMES TO OTHER INDUSTRUES

9. GAMING
IS ALL ABOUT
MEDIA & TECH

10. GAMES DRIVE CHANGE IN MEDIA & TECH
IMPACTING ALL INDUSTRIES

11. THE NEW DIMENSIONS
THE SLIGHTLY LESS BIGGER PICTURE
2

12. THE GAMING EXPERIENCE EVOLVED
INTO THE MOST EMPOWERING FORM OF ENTERTAINMENT
Razer announces IPO
and the launch of
their smartphone
Intel sponsors the
Olympics and
announces esports at
Tokyo 2020
Esports team Fnatic
offers branded
peripherals and
opens physical store
THE EVOLUTION AND CONVERGENCE OF GAMING FROM A CONSUMER PERSPECTIVE
TOOLS
COMMUNITIES
“creating”
“sharing”
GAME
ESPORTS
“playing”
VIDEO
STREAMING
“viewing”
HARDWARE
“owning”
GEAR
© Copyright Newzoo 2017
Source: Newzoo Global Games, Esports, & Mobile Market Reports
www.newzoo.com/solutions

13. GAMING
IS ALL ABOUT
EMPOWERING PEOPLE

14. THE GAMES INDUSTRY EVOLVED
TRADITIONAL TERMINOLOGY NO LONGER APPLIES | WAVE OF M&A JUST STARTED
Through its investment in Bamtech, Disney owns
streaming rights to sports and League of Legends
THE EVOLUTION AND CONVERGENCE OF GAMING FROM AN INDUSTRY PERSPECTIVE
© Copyright Newzoo 2017
Source: Newzoo Global Games, Esports, & Mobile Market Reports
www.newzoo.com/solutions
Swedish broadcaster owns the world’s biggest
esports organizers as well as game companies
The envisaged acquisition of Time Warner makes
AT&T a main player in game and esports content
CONVERGENCE
“world’s #1 pastime”“community entertainment”
GAMER
“playing”
DEVELOPER
“making”
“games as a service”
PUBLISHER
“selling”
GAME
OPERATOR
ENTERTAINMENT
COMPANY
GAME
ENTHUSIAST
SPORTSMEDIAMOBILE

15. A NEW WAVE OF IPO’S AND ACQUISITIONS
15
CENTERED AROUND GAMES AND THEIR IMPACT ON TECH & MEDIA
© copyright Newzoo
http://www.hkexnews.hk/APP/SEHK/2017/2017062803/Documents/SEHK201706290041.pdf
SUPPORTED BY SUPPORTED BY
https://www.sec.gov/Archives/edgar/data/1703399/000119312517291352/d363501df1.htm

16. PUSHING THE BOUNDARIES OF TECH
GAMES DEMAND THE MOST
3

17. IMMERSIVE AND COMPETITIVE CONVERGE
CREATING A NEW GENRE ON ITS PATH
#1viewed game on
Twitch in August with
74M hours. First time
in 34 months that LoL
is not on top.
>$1BN revenues.

18. A “NEW” GENRE IS BORN
18
% OF CORE PC PLAYERS THAT PLAYS BATTLE ROYALE GAMES | 36 COUNTRY AGGREGATE
0%
5%
10%
15%
20%
25%
January February March April May June July August September October November
ARK: Survival Evolved DayZ Fortnite H1Z1: King of the Kill PLAYERUNKNOWN'S BATTLEGROUNDS Battle Royal
While 15% of core PC Gamers play PUBG,
other older titles in the genre have seen
limited growth. Coming from their success
on console, Fortnite saw an immediate
uptake, boosting the popularity of the
overall genre.
Battle royale genre is represented by the five biggest battle royale games: PUBG, Fortnite, H1Z1: King of the Kill, Ark: Survival Evolved, and Dayz.
Souce: Newzoo PC Game Tracker
IN COOPERATION WITH
TOTAL PLAYERS
OF THE
BATTLE ROYALE
GENRE

19. >10% OF PLAYERS PLAY PUBG BELOW MIN SPECS
19
SHARE OF DESKTOP PUBG PLAYERS* | UNDER VS. ABOVE MINIMUM SPECS | OCTOBER 2017 | US VS. RU
© copyright Newzoo 2017
PLAYERS*
ON DESKTOP PC
22%
10%
48%
44%
30%
46%
NON-PLAYERS*
ON DESKTOP PC
44%
23%
39%
44%
16%
34%
© copyright Newzoo 2017 | Newzoo PC Gaming Hardware Tracker
newzoo.com/pc-gaming-hardware-tracker
TOP 5 COUNTRIES
BY SHARE OF PUBG
PLAYERS, PLAYING BELOW
MINIMUM SPECS
22.6%
RUSSIA
22.3%
BRAZIL
21.7%
MEXICO
19.9%
CZECH REPUBLIC
16.4%
SPAIN
RUSSIA
U.S.
MININMUM NVIDIA GPU SPECS
GEFORCE GTX 660 2GB
RECOMMENDED NVIDIA GPU SPECS
GEFORCE GTX 1060 6GB
< Minimum Specs > Recommended SpecsMinimum > Recommended Specs
*Gamers tracked: >12
million PC gamers that
use Overwolf software

20. 4%
6%
8%
10%
12%
14%
16%
July August September October
4%
6%
8%
10%
12%
14%
16%
July August September October
-6.3%
+15.7%
+4.8%
-7.1%
+14.0%
-11.9%
+18.1%
+2.7%
-10.9%
+10.7%
ALL GAMERS*
ON DESKTOP PC
JUL-OCT
GROWTH
RATES
GAMERS UPGRADE THEIR TECH
AS PUBG COMBINES IMMERSIVE AND COMPETITIVE
MARKET
SHARE
MARKET
SHARE
JUL-OCT
GROWTH
RATES
0% 0%
PUBG GAMERS*
ON DESKTOP PC
* Gamers: >12 million PC gamers that use
Overwolf software
GTX 970
GTX 960
GTX 1070
GTX 1060
GTX 1080
GTX 970
GTX 960
GTX 1070
GTX 1060
GTX 1080
© copyright Newzoo 2017 | Newzoo PC Gaming Hardware Tracker
newzoo.com/pc-gaming-hardware-tracker

21. MOBILE TECH SPECS DRIVEN BY GAMING
21
RAZER LAUNCHES ITS FIRST SMARTPHONE

22. SEGMENTING THE SMARTPHONE MARKET
22
ALL LARGE (>=5.7’’) DEVICES
SCREEN SIZE
5.7”+
560M
DEVICES
© copyright Newzoo 2017 | Newzoo Smartphone & Tablet Tracker

23. SEGMENTING THE SMARTPHONE MARKET
23
ALL LARGE (>=5.7’’) DEVICES WITH AT LEAST 6GB OF RAM
RAM
6GB+
13.4M
DEVICES
© copyright Newzoo 2017 | Newzoo Smartphone & Tablet Tracker

24. SEGMENTING THE SMARTPHONE MARKET
24
ALL LARGE (>=5.7’’) DEVICES WITH AT LEAST 6GB OF RAM & OCTA CORE
CPU CORES
8+
12.6M
DEVICES
© copyright Newzoo 2017 | Newzoo Smartphone & Tablet Tracker

25. +114M
+99M
+42M
+36M +33M
+15M +12M
-2M -4M
-19M
-47M
YOY GROWTH OF SMARTPHONE USE BY BRAND
25
ABSOLUTE NUMBERS OF ACTIVELY USED SMARTPHONES YEAR ON YEAR | OCT. 2016 VS. OCT. 2017 | GLOBAL
KEY FACT
Brands saw an
increase of
+277M
active smartphones
globally
Other
+288M +277M
Total All
Brands
Major
Chinese
Brands*
© copyright Newzoo 2017 | Newzoo Smartphone & Tablet Tracker
59%
OF GROWTH OF
CHINESE BRANDS IS
OUTSIDE OF CHINA

26. PUSHING THE BOUNDARIES OF MEDIA
GAMES BECOME ALLROUND ENTERTAINMENT
4

28. GAMES DRIVEN BY VIEWER EXPERIENCE
28
INTEGRATING MEDIA AND GAME FORMATS
© copyright Newzoo

29. COUNTER-STRIKE: GLOBAL OFFENSIVE
THE MAINSTREAM TV TITLE
COUNTER-STRIKE: GLOBAL OFFENSIVE
PLATFORMS: PC
LAUNCH DATE: AUGUST 2012
PUBLISHER: VALVE
HQ: BELLEVUE, USA
CS:GO is one of the most popular esports titles in the world,
consistently ranking in top three game on Twitch by hours
watched. It attracts an older audience than other titles and
is easy to follow as a viewer. The U.S. has seen very heavy
investments in CS:GO, such as the prestigious ELEAGUE run
by Turner Broadcasting on TV. Of the five esports titles,
CS:GO has the highest “only viewing” share.
#5
Franchise on
Twitch by total
Viewing Hours
In May
9.6%
of Game Enthusiasts
REACH* PC GAME RANK**
#4
in Europe and U.S. in May
TWITCH RANK
#3
esports hours in May
Source: © Copyright Newzoo 2017 | Esports Consumer Insights
**Based on Newzoo’s Most Watcehd
Core PC Game Ranking | May 2017
PLAYERS VIEWERS
COUNTRY SCOPE
US, CA, UK, DE, FR, IT, ES, SE, NL, BE
*among consumers aged 10-65
who have played a game on
mobile, console, or PC, and/or
watched esports content in the
past three months.
47%
ONLY PLAYING
23%
PLAYING & VIEWING
30%
ONLY VIEWING

30. THE CS:GO ESPORTS VIEWER
DEMOGRAPHICS, MEDIA BEHAVIOR, AND BRAND PREFERENCE
42%of CS:GO
esports viewers
mainly use
Apple vs. 35% of
gamers
85%of CS:GO esports
viewers have a
positive attitude
about Coca Cola vs.
74% of gamers
35%of CS:GO esports viewers
also watch Overwatch
esports content
81%
of CS:GO esports
viewers use
Instagram vs. 54%
of all gamers
40%
of CS:GO esports
viewers have a Apple
Music subscription vs.
17% of all gamers
20%
37%
17%
7%
13%
5% M10-20
M21-35
M36-50
M51-65
F10-20
F21-35
F36-50
F51-65
MEDIA PREFERENCES
VIEWERS
AGE/GENDER
BRAND
PREFERENCE
OVERLAP
IN ESPORTS VIEWING
Source: © Copyright Newzoo 2017 | Esports Consumer Insights | Online Population Age 10-65 | April 2017
COUNTRY SCOPE
US
1%
50%
Millennials

31. MONETIZATION STRATEGIES WILL CHANGE
FROM PLAYER TO COMMUNITY MONETIZATION
DIRECT SPENDING
BOX / DIGITAL GAME SALES -
SUBSCRIPTION -
IN-GAME MONETIZATION –
OPTIMIZE DIRECT SPENDING
- IN STREAM TARGETED OFFERS
- RE-ENGAGEMENT OFFERS
- CROSS PLATFORM ANALYTICS
INDIRECT REVENUES
- ADVERTISING
- BRAND PARTNERSHIPS
- MEDIA RIGHTS
DIRECT SPENDING
- MERCH & TICKETS
- DONATIONS
- VIEWER OPTIONS
PLAYERS VIEWERS

32. 32

33. GLOBAL CONSUMER BRANDS GO IN BIG
33
AND IT ARE NOT ALWAYS THE OBVIOUS ONES…

34. CHANGES LEAD TO NEW GROWTH
THE GLOBAL GAMES MARKET
5

35. 29%
34% 36% 39% 41%
10%
10%
10%
10%
10%
31%
29%
27%
26%
26%
5%
4%
4%
3%
3%
25%
23%
22%
22%
21%
$104,8Bn
$116,0Bn
$125,4Bn
$134,5Bn
$143,5Bn
2016 2017 2018 2019 2020
2016-2020 GLOBAL GAMES MARKET
FORECAST PER SEGMENT TOWARD 2020
TabletConsoleBrowser PCBoxed/Downloaded PC Smartphone
MOBILE
$40.9
Bn
TOTAL MARKET
+8.2%
CAGR 2016-2020
MOBILE
$50.4
Bn
MOBILE
$57.9
Bn
MOBILE
$65.2
Bn
MOBILE
$72.3
Bn
©2017 Newzoo
Source: ©Newzoo | Q4 2017 Update | Global Games Market Report
newzoo.com/globalgamesreport
2016-2020 CAGR

36. 50%
23%
4%
23%
2017 GLOBAL GAMES MARKET
PER REGION WITH YEAR-ON-YEAR GROWTH RATES
In 2017,
50%
of all consumer spend
on games will come
from the APAC region
ASIA-PACIFIC
EUROPE,
MIDDLE-EAST & AFRICA
$57.8Bn
+14.6% YoY
$26.4Bn
+8.2% YoY
NORTH AMERICA
LATIN AMERICA
$27.4Bn
+5.1% YoY
$4.4Bn
+13.4% YoY
US TOTAL
$25.4Bn
CHINA TOTAL
$32.5Bn
Source: ©Newzoo | Q4 2017 Update | Global Games Market Report
newzoo.com/globalgamesreport
2017 TOTAL
$116.0Bn
+10.7%
YoY
©2017 Newzoo

37. 17%
33%
50%
0,0Bn
2,0Bn
4,0Bn
6,0Bn
8,0Bn
10,0Bn
12,0Bn
14,0Bn
16,0Bn
2013 2014 2015 2016 2017 2018 2019 2020
THE CONSOLE COMEBACK
REVENUE PROJECTIONS 2013-2020 IN NORTH AMERICA
PC REVENUES CONSOLE REVENUES MOBILE REVENUES
Source: @ Copyright Newzoo 2017 | Global Games Market Report Premium
2020 REVENUES PER SEGMENT
SHARE AND IN $Bn 2020
PC
MOBILE
$28.9Bn
TOTAL GAME
REVENUES
$9.6Bn
$4.9Bn
CONSOLE
$14.4Bn
COUNTRY SCOPE

38. THE CONSOLE COMEBACK
MOVING FROM A FRAGMENTED PLAYER BASE TO A COMPETITIVE COMMUNITY
ENGAGED COMMUNITYIN-GAME MONETIZATION
(BI-) YEARLY RELEASES
SINGLE VERSION
REVENUES GAME LIFECYCLE COMPETITIVE COMMUNITY
BOXED / DIGITAL GAME
SALES
FRAGMENTED PLAYER
BASE
ROCKET LEAGUE TO SWITCH SUCCESFUL F2P ON CONSOLE FIFA UT HITS $800M IN-GAME
vs vs vs

39. MOBILE GAMING POWERING ON
LEAD BY THE ASIAN MARKET AND INDUSTRY
6

40. 17%
25%
34%
46%
54%
58%
60%
62%
83%
75%
66%
54%
46%
42%
40%
38%
$13,8Bn
$18,1Bn
$21,8Bn
$27,1Bn
$32,5Bn
$36,3Bn
$39,5Bn
$42,0Bn
2013-2020 CHINESE GAMES MARKET
REVENUES PER SEGMENT 2013-2020
2015 2016 2017 2018 201920142013
MOBILE
$2.3
Bn
MOBILE
$4.5
Bn
MOBILE
$7.4
Bn
MOBILE
$12.4
Bn
MOBILE
$17.6
Bn
MOBILE
$20.8
Bn
MOBILE
$23.7
Bn
TOTAL MARKET
+17.2%
CAGR 2013-2020
©2017 Newzoo
2020
MOBILE
$25.9
Bn
OtherMobile
Source: ©Newzoo | Q4 2017 Update | Global Games Market Report
newzoo.com/globalgamesreport

41. HOW WILL THE MOBILE MOBA GENRE EVOLVE?
WILL MOBILE ESPORTS ACTIVITIES FOLLOW?

42. HOW WILL THE MOBILE SHOOTER GENRE EVOLVE?
FOLLOWING THE SUCCESS OF PUBG

43. HOW WILL MOBILE ESPORTS EVOLVE?
WILL THE WEST EMBRACE IT AS THE EAST HAS DONE?

44. MOBILE ESPORTS MIGHT TAKE A DIFFERENT PATH
44
MOBILE COMPETITIVE TITLES SURGE BUT ESPORTS ECOSYSTEM COULD PROVE DIFFERENT
Analysis of Mobile Esports Opportunity
MOBILE GAMES CAN BE EQUALLY COMPETITIVE
MOMENTS TO SHARE DETERMINE CONTENT CREATION
WHAT THESE MOMENTS ARE DETERMINE IF IT IS ESPORTS
DO THE MOMENTS HAVE TO DO WITH SKILL? OR FUN OR
VISUAL? ESPORTS REQUIRE SKILL-BASED MOMENTS.
TRADITIONAL ESPORTS IS VIEWED MOST ON MOBILE WHERE
THERE IS NO OPTION TO PLAY. ON MOBILE FANS CAN
CHOOSE TO PLAY
PERFORMANCE ON TWITCH IS A CLEAR INDICATION OF
ESPORTS POTENTIAL. MOBILE SCORES LOW.
FACILTATING & STIMULATING THE CREATION OF LEAGUES
AND COMPETITION BETWEEN FRIENDS IS KEY TO BOTH
MOBILE AND PC COMPETITIVE GAMES.
THERE ARE NO VIEWER-ONLY ENTHUSIASTS ON MOBILE
CONSUMERS AND SMALL ORGANIZATIONS SET UP EVENTS
AT PHYSICAL LOCATIONS. FUN COMMUNITY COMPETITIONS.
FOR MOBILE THIS CAN BE EVERYWHERE. PC NOT
IN ASIA YES, IN THE WEST NOT SO MUCH. IN ASIA ESPORST AROUND
MOBILE GAMES ARE MORE SIMILAR TO PC. ESPECIALLY IN SEA.
SINGLE PLAYER NOT ENOUGH FOR ESPORTS ENTERTAINMENT
F2P BUSINESS MODEL DOMINANT ON BOTH
MOBILE AS PC. MASS AUDIENCE REQUIRED FOR
COMPETITIVE MATCHING IS THERE ON MOBILE.
Case: Arena of Valor
Already an esports success in China
Tencet pushing localized versions in
the West and SEA

45. MOBILE ESPORTS IN THE WEST
45
COMING YOUR WAY IN 2018
© copyright Newzoo

46. MOBILE ESPORTS IN THE EAST
46
ALREADY HUGE IN 2017
25M DAU

47. THE LONG TAIL OF MOBILE GAMING
47
TOP 10 COMPANY MOBILE GAME REVENUES VERSUS THE REST
2015 2016 2017
52% 51% 56%TOP 10 TOP 10 TOP 10
$16.4Bn $20.8Bn $28.2Bn
COMPANIES WITH NET CONSUMER REVENUES OF $1M+/YR
>>800 >>900 >>1,000
IN COOPERATION WITH

48. HOW TO SURVIVE IN MOBILE GAMING?
48
OUTSMARTING COMPETITION USING NEW COMBINATIONS OF METRICS
IN COOPERATION WITH
© copyright Newzoo 2017 | Newzoo Mobile Metrics Tracker

49. 49
GAMING
IS ABOUT
GOING BANANAS

50. GAMING
IS ALL ABOUT
MEDIA & TECH

51. GAMING
IS ALL ABOUT
EMPOWERING PEOPLE
PETER WARMAN
CEO & CO-FOUNDER
PETER@NEWZOO.COM