Global Monetization of Games: Emerging Markets as Drivers of Growth

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www.newzoo.com www.newzoo.com Peter Warman CEO at Newzoo London, 14 May 2013 © 2013 Newzoo

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Newzoo's CEO Peter Warman gave a key note at the Games Monetization Europe Summit in London. The presentation is entitled "Global Monetization of Games: Emerging Markets as Drivers of Growth".

Transcript of Global Monetization of Games: Emerging Markets as Drivers of Growth

Page 1: Global Monetization of Games: Emerging Markets as Drivers of Growth

www.newzoo.com www.newzoo.com

Peter Warman CEO at Newzoo London, 14 May 2013

© 2013 Newzoo

Page 2: Global Monetization of Games: Emerging Markets as Drivers of Growth

www.newzoo.com

Peter Warman CEO at Newzoo London, 14 May 2013

www.newzoo.com © 2013 Newzoo

Page 3: Global Monetization of Games: Emerging Markets as Drivers of Growth

Newzoo, Focused & Forward Looking

Clients

“We work with Newzoo because of their innovative insight of the entire gaming marketplace, including free-to-play, across all platforms”

Corey Rosemond, Plantronics, Business Development Director – Gaming

several key clients cannot be disclosed

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Additional Services Communication & Consultancy Ensuring outsiders maximize potential.

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Core Business Subscription-based online access to data. 80% do it yourself, 20% custom analysis. Entry level static PDF reports.

US UK GER FR IT ES BE NL RU BR PL TR AUS CHN KOR TW JP

NEW: Mobile Games Data Report: €749,- Global Games Market Report: €1,490,-

Newzoo, Global Picture, Local Insights

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Annual subscriptions at €4k per country

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Exploring | Franchise Popularity

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26% of 6.0M Polish MMO Gamers play World of Tanks: 1.6M People.

Graph exported directly from the Newzoo Data Explorer | Data of March 2013

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Exploring | Marketing Channels

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14% of 4.8M British F2P MMO Gamers that spend money on F2P MMOs, like Shooters and play on game websites, frequently visit Games.co.uk: 670,000 Brits

Graph exported directly from the Newzoo Data Explorer | Data of March 2013

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Clash of Clans vs Candy Crush | Core, Casual, Mid-Core Gamers

42% of Clash of Clans players consider themselves “Core gamers”

45% of Candy Crush players consider themselves “Casual

gamers”

Graph exported directly from the Newzoo Data Explorer | Data of March 2013

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Clash of Clans vs Candy Crush | Use of General Web Destinations

67% of US Candy Crush players frequently visits Amazon.com (vs 58% for CoC players)

Graph exported directly from the Newzoo Data Explorer | Data of March 2013

32% of US Clash of Clans players frequently visits ESPN.com (vs 17% for CC players)

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Mobile Downloads vs Revenues Candy Crush (YTD till March 21, for a “large” number of countries)

Downloads Revenues

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Local differences can be huge Two neighbouring EU countries with different profiles

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The Global Games Market | 2013E

Per Region Based on financial company data, primary consumer research and actual transactions.

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Source: 2013 Global Games Market Report Out June 6 (€1,490) Webinars on 4 & 5 June

www.globalgamesmarket.com

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The Global Games Market | 2013E

Per Segment Based on financial company data, primary consumer research and actual transactions.

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Source: 2013 Global Games Market Report Out June 6 (€1,490) Webinars on 4 & 5 June

www.globalgamesmarket.com

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traditional new

ENTERTAINMENT SCREEN

COMPUTER SCREEN

FLOATING SCREEN

PERSONAL SCREEN

MMO’S MOBILE

CONSOLE PC/MAC

SOCIAL/CASUAL

CONSUMER CONSUMER

1. Screen Segmentation, No Jargon

Future proof To understand the changes in the games market and identify future growth opportunities, monitoring only revenues and using traditional segmentation does not suffice. Too much jargon. Too tech-driven.

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Newzoo Screen Segmentation ModelTM

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The Global Games Market | 2013E

Per Screen Based on financial company data, primary consumer research and actual transactions.

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Source: 2013 Global Games Market Report Out June 6 (€1,490) Webinars on 4 & 5 June

www.globalgamesmarket.com

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ENTERTAINMENT SCREEN

COMPUTER SCREEN

FLOATING SCREEN

PERSONAL SCREEN

CONSUMER

Screens

Connectors

SOCIAL NETWORKS

THE CLOUD

THE REAL WORLD

PLAYERS MONEY TIME PAYERS

Growth KPIs

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2. Growth KPIs, More than Money

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Growth KPIs, UK 2013, YoY

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ENTERTAINMENT SCREEN

COMPUTER SCREEN

FLOATING SCREEN

PERSONAL SCREEN

CONSUMER

Screens

© Newzoo

PLAYERS PAYERS PLAYERS PAYERS PLAYERS PAYERS

34.7M 21.3M +3% YoY +0% YoY

ALL SCREENS 9.5M / 27%

+8%

24.6M / 74% 30.8M / 89%

13.5M / 39% 25.6M / 74%

63%

63%

49%

40%

PUBLIC VERSION LIMITED DATA

PUBLIC VERSION LIMITED DATA

PUBLIC VERSION LIMITED DATA

PUBLIC VERSION LIMITED DATA

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United States

Japan

China

United Kingdom

Australia

Canada

France

Germany

Korea

Taiwan

Italy

Switzerland

Russia

Singapore

Sweden

Hong Kong

Brazil

Netherlands

Spain

Thailand

RANK COUNTRY TOP GAME

United States

United Kingdom

China

Australia

Canada

Russia

Germany

France

Japan

Italy

Netherlands

Korea

Brazil

Mexico

Switzerland

Spain

Taiwan

Norway

Denmark

Sweden

COUNTRY TOP GAME

Korea

Japan

United States

United Kingdom

Germany

Australia

France

Russia

Canada

Spain

Singapore

Hong Kong

Italy

Brazil

Sweden

Norway

Thailand

Switzerland

Netherlands

Denmark

COUNTRY TOP GAME

iPhone AppStore

iPad AppStore

Google Play Store

these rankings are published monthly on www.newzoo.com/free/rankings

Top Countries per AppStore| March

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Emerging? E.g. Russia is not an Emerging market but an explosive growth market surpassing Germany in iPad game spending.

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1. Room for Growth | 2013E

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32.4% 23.2%

16.3% of all people 73.5% of money

Source: 2013 Global Games Market Report www.globalgamesmarket.com

Online Population >20% growth YoY

PUBLIC VERSION LIMITED DATA

PUBLIC VERSION LIMITED DATA

PUBLIC VERSION LIMITED DATA

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2. Accelerating Growth | 2013E

Global GDP Countries with the lowest share in the games market have the highest growth in online population as well as in GDP.

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Source: 2013 Global Games Market Report www.globalgamesmarket.com

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>38% of Console Gamers never spend

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26% of 13.8M British MMO Gamers spends €5 or more per month. 41% of 25.6M Console Gamers. 9% of 27.7M Mobile Gamers

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Conversion is key, Payment Methods

Source: GlobalCollect Whitepaper: The Shifting Video Games Landscape

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Changing to Services can be Evil Forces of Change

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Organisational Impact Games as a Service New competences required and …

what is the role of the publisher?

• Creative led-design team

• Art and production pipelines

• Client-side Engineering

• Production management

• Quality Assurance

Traditional studio fundamentals

User Acquisition, Distribution, Community

Live Ops Content build, Monitoring, Deployment, Cloud Mngmt

Big Data, Business Intelligence, Product Strategy

GaaS Technology Scalability, Security, Efficiency, Content Management

New competences required to run

GaaS

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Source: Keynote Dave Bailey, Mediatonic at 2013 Azure Gaming Summit

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Organisational Change Is the key challenge of today Game

Monetisation Europe

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Responsibilities 3 yrs ago

User-data

Product Strategy

User Acquisition

Distribution

Creative

Post Launch (DLC)

Build

Localisation

Community

IP/Legal

Content

Developer Publisher

Funding

Platform

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QA

Source: Keynote Dave Bailey, Mediatonic at 2013 Azure Gaming Summit

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Understand & Size Change And you will own an Island Game

Monetisation Europe

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Peter Warman, [email protected] CEO at Newzoo London, 14 May 2013

© 2013 Newzoo