Peter Warman, Newzoo, Games and Screens, IBC

1. 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

2. Breaking News….Breaking news…

3. Games fastest growing video content ….
72,500,000 videos
1,500,000 videos
Games #1 category Games #1 category
100% growth YoY

5. Newzoo. NewWho? Clients….
Our Key Clients
Newzoo 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

6. www.newzoo.com
18 KEY
COUNTRIES
Newzoo. NewWho? Core Services….

7. Newzoo. NewWho? Additional Services….
Communication & Consultancy
Ensuring outsiders maximize potential.

9. 2013 Global Games Market | Per Region
Based on financial
company data, primary
consumer research and
actual transactions.
Source: Newzoo Global
Games Market Report

10. 2013 Global Games Market | Per Segment
Based on financial
company data, primary
consumer research and
actual transactions.
Source: Newzoo Global
Games Market Report

11. 1
Growth: 2012-2016 Global Games Market
Based on financial
company data, primary
consumer research and
actual transactions.
Source: Newzoo Global
Games Market Report

12. 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
ENTERTAINMENT
SCREEN
COMPUTER
SCREEN
FLOATING
SCREEN
PERSONAL
SCREEN
MMO’S MOBILE
CONSOLEPC/MAC
SOCIAL/CASUAL
CONSUMER CONSUMER

13. Games Industry using Screen Segmentation
25%
of EU & US
Gamers plays on
all four screens

14. 2013 Global Games Market | Per Screen
Based on financial
company data, primary
consumer research and
actual transactions.
Source: Newzoo Global
Games Market Report

16. Five key trends driving change and growth
1. More screens
Only 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 free
Consumers 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 services
As 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 models
New 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 marketplace
The 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.

17. 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.
CONSUMER
PERSPECTIVE
INDUSTRY
PERSPECTIVE
Changes for consumers and industry
global
choice

18. PLAYERS
TIME PAYERS
MONEY
access
screens
free
bizzmodels
organisation
services
value
profit
+8%
+26% +33%
+1%
CONSUMER
PERSPECTIVE
INDUSTRY
PERSPECTIVE
MARKET
GROWTH
Change creates new growth potential
+17%
+8%
+18%
+3%
Growth starts
with consumers
playing more….
2013 vs 2012
YoY growth KPIs
Source: 2013 Newzoo

19. 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.

20. www.newzoo.com
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21. www.newzoo.com
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22. Newcomers are masters of Free-to-Play
Services
New companies set
up to manage games
as a service on a
global scale currently
benefit most from the
(r)evolution.
DATA Q4 2012

23. Watch live games of gamers that are (slightly) better than you.
Prize money season 2: $5,000,000
Video
Spectator Modes, Video Content

24. Flexibility is Key, Mobile Server Side Updates
Source: Dave Bailey, Mediatonic
Level & Quest EditingItem Management

25. www.newzoo.com
Organizational Impact
Of F2P Games as a Service

26. Organisational Impact of Change
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
Source: Keynote Dave Bailey, Mediatonic at 2013 Azure Gaming Summit

27. www.newzoo.com
=

28. www.newzoo.com
Key Trend. Globalization.
Emerging Markets as Drivers of Growth

29. Global Population vs Gamers
Per region for the top 110 countries, 2013E
“MATURE” MARKETS REPRESENT
14.9% of people
31.5% of online people
37.1% of gamers
37.8% of paying gamers
73.6% 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 >

30. 1
2
3
4
5
6
7
8
9
10
11
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
iPhone
AppStore
iPad
AppStore
Google Play
Store
these rankings are published monthly on www.newzoo.com/free/rankings
Top Countries per AppStore| March 2013
Emerging?
No. Rather explosive growth
markets.

31. © 2013 Newzoo/Distimo Monthly Global AppStore Report
Top Grossing iOS Games Russia | June 2013

32. =

33. Peter Warman, CEO Newzoo
peter@newzoo.com