Peter Warman (Newzoo) @ Games and Screens, IBC
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The Global Games Market Understanding change and sizing opportunities across all four screens. Games & Screens Session at IBC 2013 16 September, 1330-1500 Peter Warman, CEO Newzoo
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Peter Warman, Newzoo, Games and Screens, IBC
Transcript of Peter Warman (Newzoo) @ Games and Screens, IBC
The Global Games MarketUnderstanding change and sizing opportunities across all four screens.
Games & Screens Session at IBC 2013
16 September, 1330-1500
Peter Warman, CEO Newzoo
Games fastest growing video content ….
72,500,000 videos
1,500,000 videos
Games #1 category Games #1 category
100% growth YoY
Newzoo. We work in and with the Global Games Industry.
Newzoo. NewWho? Clients….
Our Key ClientsNewzoo assists in decision making on a strategic, product or marketing level. We provide global overview and deep local insights. Our data is based on a mix of financial analysis of company revenues, primary consumer research and transaction data.
80% of our clients are global headquarters.
several key clients cannot be disclosed www.newzoo.com
www.newzoo.com
18 KEY COUNTRIES
Newzoo. NewWho? Core Services….
Newzoo. NewWho? Additional Services….
Communication & ConsultancyEnsuring outsiders maximize potential.
2013 Global Games Market | Per Region
Based on financial company data, primary consumer research and actual transactions.
Source: Newzoo GlobalGames Market Report
2013 Global Games Market | Per Segment
Based on financial company data, primary consumer research and actual transactions.
Source: Newzoo GlobalGames Market Report
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Growth: 2012-2016 Global Games Market
Based on financial company data, primary consumer research and actual transactions.
Source: Newzoo GlobalGames Market Report
Games Industry using Screen Segmentation
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.
Source: Newzoo Screen Segmentation ModelTM
traditional new
ENTERTAINMENTSCREEN
COMPUTERSCREEN
FLOATINGSCREEN
PERSONALSCREEN
MMO’S MOBILE
CONSOLEPC/MAC
SOCIAL/CASUAL
CONSUMER CONSUMER
Games Industry using Screen Segmentation
25%of EU & US
Gamers plays on all four screens
2013 Global Games Market | Per Screen
Based on financial company data, primary consumer research and actual transactions.
Source: Newzoo GlobalGames Market Report
Five key trends driving change and growth
1. More screensOnly 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. Gamers will still spread their budget across all screens.
2. Games are freeConsumers have gotten used to the idea of trying a game before they decide to spend money. The days of low quality free games have passed as in-game spending business models have proven successful. Next stop: The TV screen...
3. Games are servicesAs monetization now takes place within the game at a moment the consumer chooses, publishers and developers 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. Flexible business modelsNew Business models require 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 marketplaceThe games market is now, a global playground. Online connectivity allows companies to localize and launch games anywhere on the planet. To secure growth, emerging markets should be a part of any game company’s strategy.
screens
access
bizz models
free
organisation
service
profit
value
Consumers want continuous access games that are, in principle, free. Ideally, their game continuously improves and expands, as a service. If the game gives them value, they have no problem to spend money.
Game companies increasingly need to make their games accessible via all screens as well as adapt their business models. The continuous balancing act between value for consumers and profit requires organisational change. Hard, but it is the only way to maintain growth in this competitive and truly global marketplace.
CONSUMERPERSPECTIVE
INDUSTRYPERSPECTIVE
Changes for consumers and industry
global
choice
PLAYERS
TIME PAYERS
MONEY
access
screens
fre
e
biz
z m
od
els
organisation
services
valu
e
pro
fit
+8%
+26% +33%
+1%
CONSUMERPERSPECTIVE
INDUSTRYPERSPECTIVE
MARKETGROWTH
Change creates new growth potential
+17%
+8%
+18%
+3%
Growth starts with consumers playing more….
2013 vs 2012 YoY growth KPIs
Source: 2013 Newzoo
Games: 66% of Mobile Revenues
Smartphones and tablets have accelerated change within the games market and are expected to gross $24bn game revenues in 2016, or 28% of the total market.
www.newzoo.com
Key Trend: Games are free services“Free is not evil”
=39%
of console gamers in the US never
spends money on console games
55%of mobile gamers in the US never spends money on mobile games43% for MMOs
www.newzoo.com
“Time is Money”Advice to a Young Tradesman, Written by an Old OneBenjamin Franklin | 1705 -1790
=
Newcomers are masters of Free-to-Play
ServicesNew companies set up to manage games as a service on a global scale currently benefit most from the (r)evolution.
DATA Q4 2012
Watch live games of gamers that are (slightly) better than you.
Prize money season 2: $5,000,000Video
Spectator Modes, Video Content
Flexibility is Key, Mobile Server Side Updates
Source: Dave Bailey, Mediatonic
Level & Quest EditingItem Management
www.newzoo.com
Organizational ImpactOf F2P Games as a Service
Organisational Impact of Change
Games as a ServiceNew 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
Source: Keynote Dave Bailey, Mediatonic at 2013 Azure Gaming Summit
www.newzoo.com
Changing an organization takes time
=
www.newzoo.com
Key Trend. Globalization.Emerging Markets as Drivers of Growth
Global Population vs GamersPer region for the top 110 countries, 2013E
“MATURE” MARKETS REPRESENT14.9% of people31.5% of online people37.1% of gamers37.8% of paying gamers73.6% of money spent on games
17.9% 32.4% 23.2% 2.8% 4.3% 1.8% 15.2%0.7%2013 Global Games Market Report | www.globalgamesmarket.com
1.8%
1,600
MILLIONS
1,400
1,200
1,000
800
600
400
200
0
74% of game revenues is generated by 15% of the worlds’ population
< MATURE GROWTH >
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8
9
10
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12
13
14
15
16
17
18
19
20
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
iPhoneAppStore
iPadAppStore
Google PlayStore
these rankings are published monthly on www.newzoo.com/free/rankings
Top Countries per AppStore| March 2013
Emerging?No. Rather explosive growth markets.
© 2013 Newzoo/Distimo Monthly Global AppStore Report
Top Grossing iOS Games Russia | June 2013
PC Gaming. Power to the People.
=
You are Welcome.Peter Warman, CEO [email protected]
