The Business of Video Games. Table of Contents
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1 The Business of Video Games Comprehensive Market Overview April 2016
2 Contents Table of Contents CONDITIONS OF PURCHASE... 2 ABOUT THIS REPORT... 3 TABLE OF CONTENTS... 4 INDEX OF TABLES... 7 I. OVERVIEW... 9 A. VIDEO GAME MARKET SIZE... 9 B. SOFTWARE PUBLISHING VALUE CHAIN OVERVIEW II. HISTORY A. OVERVIEW B. ARCADE ERA C. RISE OF NINTENDO D. CONSOLE COMPETITION E. MULTIMEDIA AND PC GAMES PHASE ONE: RISE AND COLLAPSE F. RISE OF SONY G. STEADY RISE OF PC ONLINE GAMES H. GROWTH IN ASIA I. THE MMOG ERA J. THE WII CONSUMER AND RISE OF MICROSOFT K. GROWTH OF SOCIAL AND BROWSER GAMES L. GROWTH OF MOBILE GAMES M. NEW CONSOLE SYSTEMS AND DECLINE OF NINTENDO N. DIGITAL DISTRIBUTION, INDIE DEVELOPERS, VIRTUAL REALITY & ESPORTS III. GAME INDUSTRY FOOD CHAIN AND BUSINESS MODELS A. HIGH-END GAME FOOD CHAIN High-End Business Model Developers Publisher Developer/Publisher Straight Developer Publishers Affiliate Label Developers Publisher/Distributors Retailer Online Distribution Console Manufacturers Content Providers PC Titles: Revenue Breakdown Console Titles: Revenue Breakdown B. GAMES AS A SERVICE/FREEMIUM/F2P BUSINESS MODEL Overview GAS/Freemium Revenue Side Analysis Published by DFC Intelligence
3 Revenue Model 1: Modest Success Freemium Game /Optional Subscription Revenue Model 2: Solid Hit Freemium Game /Optional Subscription Revenue Model 3: Slow Build Big Hit Freemium Game /Optional Subscription Revenue Model 4: Major Hit Freemium Game/Optional Subscription Revenue Model 5: Solid Hit Pure Virtual Goods Model Revenue Model 6: Major Hit Pure Virtual Goods Model Simplified Freemium Revenue Business Models Freemium Cost Side Analysis Overview Development Cost Marketing and User Acquisition Cost Client Delivery Costs Payment Methods and Financial Infrastructure Costs Ongoing Costs Freemium Cost Model C. SUBSCRIPTION MODELS/STREAMING GAME SERVICES IV. GAME INDUSTRY MARKET LEADERS A. MARKET LEADERS IN GAME HARDWARE AND DISTRIBUTION Alphabet Inc/Google Amazon Apple Electronic Arts/Activision Blizzard Facebook GameFly GameStop Gree/DeNA Microsoft Nintendo NVIDIA Razer Sony Samsung Tencent Valve B. MARKET LEADERS IN GAME PUBLISHING AND DEVELOPMENT Leading Diversified Game Companies Activision Blizzard Electronic Arts Tencent Leading Premium Game Publishers Japanese Publishers: Capcom/Square Enix/Konami/Sega Sammy Take-Two Interactive Time Warner Ubisoft Valve ZeniMax Media Leading Mobile Game Companies EA Mobile/Jamdat Published by DFC Intelligence
4 Gameloft Glu Mobile GungHo Kabam King Digital Entertainment Machine Zone SoftBank/Supercell Walt Disney Company Leading PC Game Companies Big Fish Games/Churchill Downs Bigpoint Gameforge Goodgame Studios National Geographic Animal Jam NCSoft Netease Netmarble/CJ Games Nexon Riot Games Valve Wargaming.net WildTangent Zynga V. GAME CONSUMER AND GAME GENRES A. OVERVIEW Published by DFC Intelligence
5 Index of Tables Table 1 Global Video Game Software Revenue: Physical versus Digital Table 2 Global Game Software Revenue by Major Platform Type: Table 3 Video Game Console Hardware Unit Sales by Generation: Table 4 Global Console Video Game Software Physical vs. Digital: Table 5 Worldwide PC Game Revenue by Source: Table 6 Worldwide PC Game Revenue by Region: Table 7 Worldwide Console Physical Game Revenue by Region: Table 8 Worldwide Smartphone and Tablet Revenue by Region: Table 9 Worldwide Mobile and PC Gamers by Region Table 10 PC Game Digital Distributors Table 11 Console Game Digital Distributors Table 12 Mobile Game Digital Distributors Table 13 Key Game Industry Sub-Segments Table 14 Traditional Publishing Revenue Split Table 15 Traditional Console Publishing Revenue Splits Table 16 Modest Success Scenario for a Freemium Game with Optional Subscription Table 17 Five Year Cumulative Revenue for Modest Success Scenario for a Freemium Game with Optional Subscription Table 18 Solid Hit Scenario for a Freemium Game with an Optional Subscription Table 19 Five Year Cumulative Revenue for Solid Hit Scenario for a Freemium Game with Optional Subscription Table 20 Slow Build Big-Hit Scenario for a Freemium Game with an Optional Subscription Table 21 Five Year Cumulative Revenue for Slow Build Big Hit Scenario Freemium Game with Optional Subscription Table 22 Major Hit Scenario for a Freemium Game with an Optional Subscription Table 23 Five Year Cumulative Revenue for Major Hit Scenario Freemium Game with Optional Subscription Table 24 Solid Hit Scenario for a Freemium Game with a Pure Virtual Goods Model Table 25 Five Year Cumulative Revenue for Solid Hit Scenario Freemium Game with Pure Virtual Goods Model Table 26 Major Hit Scenario for a Freemium Game with a Pure Virtual Goods Model Table 27 Five Year Cumulative Revenue for Major Hit Scenario Freemium with Pure Virtual Goods Model Table 28 Basic Revenue Model at 2% Conversion Rate Table 29 Basic Revenue Model at 5% Conversion Rate Table 30 Basic Revenue Model at 10% Conversion Rate Table 31 Basic Revenue Model at 15% Conversion Rate Table 32 Freemium Game Marketing Funnel Table 33 Standard Transaction Fee Comparison between U.S. and Korea Table 34 Client-Based Freemium Customer Acquisition Cost Model Table 35 Client-Based Freemium First-Year Profit/Loss Analysis Table 36 Examples of Online Game Subscription Services Circa Table 37 Examples of Game Streaming and Subscription Services Table 38 DFC Intelligence Top 10 Market Leaders in the Video Game Industry: Table 39 DFC Intelligence Video Game Market Leader Ranking Metrics Table 40 Global Game Industry Software Market Leaders by Segment Table 41 Worldwide Video Game Consumers by Region Published by DFC Intelligence
6 Table 42 Global Video Game Consumers by Region Table 43 DFC Intelligence Game Type Classification Categories Table 44 Example of Leading Cross Category Games Table 45 Top Games by Category Published by DFC Intelligence
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