A short overview of the games industry. This will help you understand it, so that you can plan and monetize your game better.

1. Sell. More. GAMES INDUSTRY OVERVIEW January, 2011

3. EU Market – Top 5 Industry Specifics

5. EU Market – Top 5 Industry Specifics

6. 4 Online Game Segments Main Segments: Mobile Games, for example for mobile phone or PDA Online Games: Casual, Social, MMOs, Browser-Based (often considered MMOs) Console Games – distribution available both offline (DVD) or online (wi, PS, Xbox Live, etc) Standard PC Games – if purchased online fall under retail market

7. Business Models Pay-to-Play (client based) – customers have to pay an initial amount in order to start playing – Star Craft II, Diablo, Guild Wars, most Yahoo Games Customer in most cases have to download the game in order to play it This business model is slowly shifting towards Free-to-Play Some major MMOs are based on this business model 5

8. Business Models Free-to-Play – customer can play the game without paying anything. Virtual currencies are available to advance in the game – Mafia Wars, Farmville Customers most play such games in a web browser Most gaming developers and publishers are moving towards this business model 6

9. Business Models Play-to-Pay at “x” – Customers pay based on a certain criteria - level reached (every 5th level), special DLCs (unlocking special areas) In most cases, customer have to download the game in order to play it Sometimes this business model is coupled with a small initial amount One of the best ways to monetize games 7

10. Business Models Subscription based– Customers pay a small initial amount to have the game + monthly fee to play it – World of Warcraft, Conan In most cases, customer have to download the game in order to play it The best monetization business model but also the most difficult to achieve Only a few gaming companies have managed to use it successfully 8

12. EU Market – Top 5 Industry Specifics

13. Share of Games Wallet Across Platforms 10 Source: gamesindustry.com. Black Book 2011

14. MMO Revenue 2010 11 Source: gamesindustry.com. Black Book 2011

15. Playing vs Paying I MMOs 2010 12 Source: gamesindustry.com. Black Book 2011

16. Playing vs Paying I Game Portals 2010 13 Source: gamesindustry.com. Black Book 2011

18. EU Market – Top 5Industry Specifics

19. US Market – Survey 2010 15 Source: gamesindustry.com. Black Book 2011

20. US Market 2010 16 Source: gamesindustry.com. Black Book 2011

21. Social Games 2009 17 Source: gamesindustry.com. Black Book 2011

22. MMO Game Revenue 2009 18 Source: gamesindustry.com. Black Book 2011

24. EU Market – Top 5 Industry Specifics

25. 20 UK 2010 Source: gamesindustry.com. Black Book 2011

26. 21 Germany 2010 Source: gamesindustry.com. Black Book 2011

27. 22 France 2010 Source: gamesindustry.com. Black Book 2011

28. 23 Netherlands 2010 Source: gamesindustry.com. Black Book 2011

29. 24 Belgium 2010 Source: gamesindustry.com. Black Book 2011

31. EU Market – Top 5 Industry Specifics

32. 26 Industry Specific MMO games represent the largest portion of online games, followed by wireless games Wireless games are expected to grow by 14% on an annual basis reaching to up to $13 billion in 2013 The three largest game producers are – the US, Japan and the UK, followed by Germany and Australia Around 41% percent of gamers are women

33. 27 Industry Specific Predominant payment method used for game purchases – credit cards Larger MMOs depend heavily on alternative payment methods The industry is one with many chargebacks, especially in the Free-to-Play business model Games will shift towards the Free-to-Play business models in the next couple of years