The Future of Mobile & Portable Gaming An E3 Panel June 12, 2013
1 2 3 Opening Themes All-Star Panel Conclusions and Q&A 2
Worldwide Installed Base Shares of Mobile & Portable Gaming Devices, 2012 & 2014 60% 40% 20% +10 pts +2 pts -1 pts -11 pts 0% Android ios All other smartphone & tablet OSs Source: IDC #240600. 2012 2014 Gaming-optimized handhelds The installed base of mobile/portable devices used for gaming should rise from nearly 800MM in 2012 to over 1.2B by 2014, up 55% Gaming-optimized handhelds are typified by Nintendo 3DS & Sony PlayStation Vita 3
Worldwide Mobile & Portable Game Software Revenue by Business Model, 2013 5% 2013 Revenue On Track To Top $12B 51% Share 44% Prepaid Microtransactions (IAP) Advertising Source: IDC #240600. Prepaid includes digital & packaged game revenue on all platforms Microtransactions / IAP was ~40% of total revenue in 2012 4
Worldwide Annualized Mobile & Portable Game Software ARPU, 2012-2014 $20 $15 $10 $5 $- 2012 2013 2014 Gaming-optimized handhelds Smartphone & tablet gamers Source: IDC #240600. Smartphone & tablet gamer ARPU includes ipod touch revenue and direct ad spending All pre-owned game software revenue is excluded 5
Worldwide Top 5 Grossing Gaming- Optimized Handheld Genres, 4Q12-1Q13 Rank Genre Sample Titles 1 Role Playing 2 Platformer 3 Simulation 4 Racing & Driving 5 Action-Adventure Pokémon Black / White Version 2 Persona 4: The Golden New Super Mario Bros. 2 LittleBigPlanet PS Vita Animal Crossing: New Leaf Ciel Nosurge Re:Incarnation Mario Kart 7 Need for Speed: Most Wanted Paper Mario: Sticker Star Assassin's Creed III: Liberation Source: IDC #239513 & #241099. 6
Worldwide Top 5 Countries For Gaming- Optimized Handheld Purchase Intent, 2013 10-Point Mean Purchase Intent Score 5 4 3 2 1 0 Indonesia India China Malaysia Japan & Mexico (tied) Q: How interested are you in purchasing the following devices in the next 12 months? (Handheld videogame player such as a 3DS, DSi, PSP or Vita) Source: IDC s ConsumerScape 360 Survey, 2Q13 (n = 41,000). This online survey spanned the top 25 countries by GDP 1 = Not at all interested, 10 = Extremely interested Results suggest that emerging markets are a significant growth opportunity for gaming-optimized handhelds in the coming year 7
Worldwide ios Top 5 Grossing Revenue by Game Genre, 4Q12-1Q13 Rank By Top Grossing Sample Titles 1 Role Playing 2 Simulation 3 Action 4 Strategy 5 Adventure Puzzle & Dragons DragonVale Hay Day Minecraft Pocket Edition Clash of Clans Subway Surfers Kingdoms of Camelot: Battle for the North The Hobbit: Kingdoms of Middle-earth The Simpsons : Tapped Out The Sims FreePlay Source: App Annie, 2012-2013. 8
Worldwide Google Play Top 5 Grossing Revenue by Game Genre, 4Q12-1Q13 Rank By Top Grossing Sample Titles 1 Arcade & Action 2 Casual 3 Brain & Puzzle 4 Cards & Casino 5 Sports Games Windrunner for Kakao Million Arthur Everybody Cha Cha Cha for Kakao Candy Crush Saga Puzzle & Dragons Anipang for Kakao Slotomania Slot Machines Zynga Poker Fish Island Professional Baseball PRIDE Source: App Annie, 2012-2013. 9
ios App Store and Google Play Game Revenue, 4Q12 vs. 1Q13 150 Indexed Revenue 100 50 0 ios App Store Google Play 4Q 2012 1Q 2013 Source: App Annie, 2012-2013 ios maintained strong lead in game revenue, earning 2.3x that of Google Play in Q1 2013 Google Play game revenue growing quickly, doubling from 4Q to 1Q 10
ios Top 5 Grossing Countries For Games, 4Q12-1Q13 150 Indexed Revenue 100 50 0 United States Japan United Kingdom China Australia 4Q 2012 1Q 2013 Source: App Annie, 2012-2013 The United States & Japan still drive the most ios gaming market revenue growth China also ramped up in gaming revenue from 4Q to 1Q 11
Google Play Top 5 Grossing Countries For Games, 4Q12-1Q13 300 250 Indexed Revenue 200 150 100 50 0 Japan South Korea United States United Kingdom Germany 4Q 2012 1Q 2013 Source: App Annie, 2012-2013 Japan, South Korea, & the United States drive Google Play game revenue Japan & South Korea show astonishing growth from 4Q to 1Q 12
Key Themes & Takeaways Mobile & portable gaming is likely to grow substantially in the next few years Freemium has become the dominant business model in the overall portable gaming space this year Gaming-optimized handhelds enjoy higher ARPUs, but the audience of paying gamers is already far larger on smartphones & tablets & is growing much faster Gaming genre preferences are similar across gamingoptimized handheld users & ios App Store users; RPGs appear to be monetizing particularly well today Emerging markets remain a key growth opportunity 13
Panel Q&A Lewis Ward, Gaming Research Manager, IDC Bertrand Schmitt, CEO, App Annie Sarah Thomson, Sr. Manager of PlayStation Mobile, SCEA Jason Paul, Product Marketing Director for Shield, NVIDIA Chris Early, VP of Digital Publishing, Ubisoft David Zemke, Director of Mobile Business, Sega of America Kelly Malone, Business Development Director, Windows Phone @lewisaward @AppAnnie @SarahLuvsVGames @NVIDIATegra @luckyearly @dzemke @windowsphone 14
Download the full report for free http://appannie.com/e3-2013 Mike Shirer PR Director IDC press@idc.com Marcos Sanchez VP Worldwide Corporate Communications App Annie press@appannie.com 15