STATE OF GAMINGPeer Schneider, Chief Content Officer

GAMING HAS GROWN UP.BEHOLD THE BATTLE OF HOTH IN 1981…

==

…AND 34 YEARS LATER.

GLOBAL GAMES MARKET$152.1 BILLION

1.2B PC Players2B Mobile Players 500MM Console Players

$68.5 Billion $35.7 Billion $47.9 Billion

GAMES SOFTWARE MARKETTotal: $152.1 ($36.9 Billion US)

Source: Newzoo, 2019

PlayStation 4 100MM (2013)

Nintendo Switch 37MM (2017)

Xbox One 41MM (2013)*

CONSOLESA Brief History: 150+ Machines and Proprietary Formats Later :

Sources: NPD/*IGN estimate

S11. How much time do you typically spend playing games on each system that you own and use in a typical week?

Console usage has again caught up to PC play timeSource: IGN Segmentation Study, 2019

S2. What is your gender?  S1. What is your date of birth?  S4. Please enter your 5-digit zip code.

Gamers are diverseSource: IGN Segmentation Study, 2019

E4: Please choose your top 3 most important types of entertainment. You may choose less than 3, but not more.

Gamers pursue a wide range of hobbies

TOP FORMS OF ENTERTAINMENT

1. Playing Video Games

2. Streaming Movies or TV

3. Watching Shortform & Streams

4. Hanging Out with Friends

5. Social Networks

6. Going to the Movies

7. Watching Sports

8. Reading 9. Dating / Time with your

Significant Other

10. Exercise / Working Out

Source: IGN Segmentation Study, 2019

S12. How much money would you say your household spends in a typical MONTH on the following?

P U R C H A S E D I N T H E P A S T W E E KSPENDING BY CATEGORY

Gamers are heavy spenders

Gaming Dining Out Travel TV Movies Music Sports Toys

$4$15$14

$26

$73$71

$103

$24$14

$33$35

$64

$119$120$131

$139

GAMERS NON-GAMERS

+54%MORE THAN NON-GAMERS

6x 2x 2x 2x 3x

Source: IGN Segmentation Study, 2019

E5. Which of the following categories have you given a recommendation for or had conversations about (either in-person or online) in the past MONTH?

Video Games Movies TV shows Food Music Restaurants Mobile games QSR Gadgets Books/Comics Sports apparel

8%

15%11%

18%

10%

36%35%

44%39%39%

10% 12%

19%20%23%

32%34%

43%45%48%

51%53%

MADE A RECOMMENDATION ONI N P A S T M O N T H

GAMERS NON-GAMERS

5x 3x 2x

Gamers are influentialSource: IGN Segmentation Study, 2019

ATTITUDES TOWARDS MOBILE GAMING

Computer Smartphone TV Tablet

5%

22%

36%36%

5%

13%

31%

52%

2016 2018

C H A N G E O F P E R S P E C T I V E

• 56% of gamers say playing mobile games can be as much fun as playing console or PC games (+10%)

• 67% say it’s a fun way to play when no console or PC is available

E11. If you had to make a choice, which of the following “screens” is the one that you could not live without? VB5.Which best describes how you play games? Source: IGN Segmentation Study, 2019

ESPORTS ATTITUDESC H A N G E O F P E R S P E C T I V E

• A quarter of gamers are invested in esports.

• 41% watched someone else stream a game

Gamers who enjoy watching esports

Watched an esports tournament in person

Watched an esports tournament online22%

9%

40%

22%

6%

37%

2016 2018

VA2. How much do you agree or disagree with each of the following statements? VB3. Which of the following have you done in the past YEAR? Source: IGN Segmentation Study, 2019

Core Casual

Sizes of circles represent % of total gamers

GAMER SEGMENTS2007

Source: IGN Segmentation Study, 2007

I N 2 0 0 7 , G A M E R S W E R E E I T H E R H A R D C O R E O R C A S U A L

&

Core Casual

2010

Source: IGN Segmentation Study, 2010

T W O D I S R U P T O R S S H A P E D T H E I N D U S T R Y :

Universal Dedicated

Trending

Calculated Hybrid Fringe

Core Casual

TODAY

Source: IGN Segmentation Study, 2019

W E N O W T R A C K S I X V E R Y D I F F E R E N T G A M E R S E G M E N T S

These segments differ significantly — here’s a top-level summary.

FRINGE

HYBRID

CALCULATED

TRENDING

DEDICATED

UNIVERSAL

Does not identify as a gamer. Prefers mobile & free-to-play games.

Gaming is one of many hobbies. Buys the biggest games on sale.

PC focused. Has a negative attitude towards mobile gaming.

Views gaming as a way to connect. Is looking to join in on latest trends.

Gaming is life. Prioritizes their spending towards gaming.

Trend setter. Will always be the first to buy and play new games.

Here’s an internal IGN matrix on how and where we reach the Top 5.

HYBRID

CALCULATED

TRENDING

DEDICATED

UNIVERSAL

Does not identify as a gamer. Prefers mobile & free-to-play games.

Gaming is one of many hobbies. Buys the biggest games on sale.

PC focused. Has a negative attitude towards mobile gaming.

Views gaming as a way to connect. Is looking to join in on latest trends.

Gaming is life. Prioritizes their spending towards gaming.

Trend setter. Will always be the first to buy and play new games.

FRINGE

Where We’re Going

GAMES ARE ABOUT TO TAKE ANOTHER LEAP…UNIVERSAL STUDIOS: MUSHROOM KINGDOM

Past experiments with licensed games caused credibility issues. But gamers are forgiving.

THE ONE THAT BROKE THE CURSE

Great developer + no simultaneous release

Gamers are eager for more games like 1997’s GoldenEye — even if they don’t align with movie/TV release timing.

Blair Witch Marvel’s Ultimate Alliance 3

Marvel’s Avengers Stranger Things 3: The Game

John Wick Hex The Dark Crystal: Resistance Tactics

Dragon Ball Z: Kakarot LEGO Star Wars: The Skywalker SAGA

Star Wars Fallen Order Gears 5: Terminator Dark Fate Content Pack

Ghost Recon Breakpoint Terminator DLC Many promising licensed games were announced at E3 — from big name developers, and also smarter, smaller-sized DLC/crossover integrations to capitalize on upcoming movie openings.

ANOTHER ONE THAT BROKE THE CURSE

Conversely, we’re also seeing much renewed interest in games-to-film/TV adaptations

STREAM TV SHOWS ONLINE

PP11. How often do you stream shows online? E9. How much do you agree or disagree with each of the following statements? E2. Which of the following services do you currently have an account with and use?

- TOTAL GAMERS - NON-GAMERS

Once a day or more

A few times a week23%

22%

27%

35%

TV ATTITUDES TOP 2 BOX AGREEMENT

I regularly watch TV shows the day/date the episode is released

I will stream an entire series online as soon as it’s available

TOP STREAMING PROVIDERS

74% 74% 49% 39%

61%G A M E R S

37%N O N - G A M E R S

55%G A M E R S

34%N O N - G A M E R S

Gamers stream shows more frequently and are more likely to binge

“Gamers are ready and waiting for good and accurate adaptations of the franchises they love! And gamers are super-consumers! Check these stats from our new Segmentation Study.” - Peer

A new start for video game adaptions?

All eyes are on Netflix to prove that games can be done justice on TV.

…look for more show announcements soon!

200620052004200320022001200019991998

WiiPS3

Xbox 360

GameCube

XboxPS2

Dreamcast

5 Years 6 Years

6 Years5 Years

4 Years

3 Years

Gen6 Gen7

GENERATION 9

The gap between each new generation of consoles has been steadily getting longer. While gamers waited 5 years between PlayStation and PlayStation 2, and…

The next console generation is officially coming.

Xbox One

PS4Wii U

201520142013201220112010200920082007

6 Years

7 Years

8 Years

Gen8

…Xbox fans had to hold out eight years to get their hands on Xbox one

We now know when Generation 9 will get here…

202120202019201820172016201520142013

…iPhone 7/SE iPhone 8/X iPhone XS/XR …iPhone 6/+ iPhone 6S/+

Xbox One

PS4Switch4 1/2 Years

7 Years

7 Years

Gen9

PS5Scarlett

iPhone 5S/C …

NEXT-GEN CONSOLESSony and Microsoft took a page out of Apple’s playbook and have been iterating on their hardware with half-step releases, such as PS4 Pro and Xbox One X. But the next, full generation of traditional, not-exclusively-streaming boxes will arrive holiday 2020

2020: Generation 9

XBOX 4 = SCARLETTMicrosoft made it official at E3 in June.

Scarlett is a codename. The console’s final name has yet to be revealed.

Sony

Microsoft

Nintendo

Google 4.4

14.2

28.5

52.8

Which company do you want a next-gen console from the most?

40,000 respondents, IGN homepage

Xbox has some ground to make up. PlayStation’s brand and install base are big. We asked 40,000 gamers before E3:

]

Which is why Xbox rolled out the Big Gun: Halo Infinite will be a Scarlett launch title.

One thing is clear: the next generation of consoles will not be streaming-only.

SUBSCRIBE FOR GAMES

We may see a shift from purchase to subscription in the next console gen.

“SGOD” SERVICES EXPANDEA, Xbox, and PlayStation already offer expanded game download (and limited streaming) services. Sony’s is focused on older games (for a discounted $70 per year right now), Microsoft’s charges $9.99 a month for new games, and EA provides access to its catalog for just $4.99.

At E3, Ubi announced Uplay+. 100+ PC games, $14.99 a month.

And Ubisoft’s service even works on Stadia!

…but there’s more.

Gamers can get iOS-exclusive games for just $4.99 per month.

…and Apple got in on subscription gaming.

Xbox Game Pass Ultimate: $14.99 for 100+ Xbox, 100+ PC games.

…and one more (of many to come):

THE STREAM CLUBBut it’s not just about subscription. Some services fundamentally change the delivery method: streaming. Are gamers ready?

CONSOLE WARS: EPISODE IXT U N E I N F O R T H E N E X T C H A P T E R I N 2 0 2 0

Thank you! Peer Schneider, IGN Chief Content Officer, peer@ign.com