Gaming Spotlight, 1H15: How Online Multiplayer … Spotlight, 1H15: How Online Multiplayer Is a Game Changer June 2015 ©"2015"App"Annie"&"IDC"|"Do"Not"Distribute" 2" Why$You$Should$Care$About$Mobile$Gaming$

©"2015"App"Annie"&"IDC"|"Do"Not"Distribute"

Gaming Spotlight, 1H15: How Online Multiplayer Is a Game Changer June 2015


2"

Why$You$Should$Care$About$Mobile$Gaming$

•  Consumer"spending"on"mobile"gaming"is"experiencing"significant"growth""

•  Online"mulCplayer"gaming"is"on"the"rise"in"parCcular,"both"in"terms"of"

Cme"spent"and"consumer"spending"

•  Nintendo,"which"has"long"dominated"handheld"game"consoles,"

announced"a"partnership"with"DeNA"in"March"2015"to"coHdevelop"

mulCple"games"for"smartphones"and"tablets"

•  Nintendo’s"roster"of"iconic"characters,"including"Mario,"Zelda"and"

Pokémon,"will"surely"give"its"new"mobile"iniCaCve"a"shot"in"the"arm"


3"

1 2 3

Online Multiplayer Gaming in Context Multiplayer on Mobile & Handheld Devices Key Themes & Takeaways

USE$RESTRICTIONS:""The"informaCon,"materials,"data,"images,"graphics,"and"other"components"of"this"report"("Report")"are"copyrighted"and"owned"or"controlled"by"App"

Annie"or"IDC"unless"otherwise"noted."Unauthorized"use"of"the"Report"may"violate"copyright,"trademark"and/or"other"intellectual"property"rights"of"App"Annie"or"IDC"and"may"

give"rise"to"a"claim"for"damages"and/or"be"a"criminal"offense."The"Report"may"not"be"modified,"copied,"distributed,"republished,"uploaded,"posted,"decompiled,"or"transmiZed"

in"any"way,"without"the"prior"wriZen"consent"of"App"Annie"and"IDC.""


4"

Worldwide$Digital$Gamer$Addressable$Market$by$Major$Hardware$PlaGorm,$1Q15$

"H""

"200""

"400""

"600""

"800""

"1,000""

"1,200""

Portable" PC"&"Mac" Game"Console"

Unique$Quarterly$Digital$Gamers$

•  Totals represent gamers that used an applicable Web-connected device to buy or play games, and thus could potentially access online multiplayer

•  Portable category spans smartphone, tablet and handheld game console gamers •  Totals cannot be summed since many gamers play on multiple platforms

Millions"

Source:"IDC"


5"

Worldwide$Smartphones$&$Tablets$Used$for$Gaming$Installed$Base$Shares$by$OS,$1Q14$&$1Q15

0%"

20%"

40%"

60%"

80%"

Android" iOS" All"Others"

"1Q14"

"1Q15"

+4.3"pts" H2.3"pts"

Source:"IDC"

H2.0"pts"

•  The installed base for smartphones and tablets used for gaming exceeded 1.1B in 1Q15

•  Android’s share of the total installed base closed in on 75% •  “All Others” is largely Windows, BlackBerry and Symbian devices


0%"

25%"

50%"

75%"

100%"

iOS"App"Store" Google"Play"

0%"

25%"

50%"

75%"

100%"

iOS"App"Store"" Google"Play""

1Q14"

1Q15"

6"

•  Games were ~30% of downloads on iOS and ~40% on Google Play in 1Q15 •  The share of consumer spending on games for Google Play grew incrementally

from 1Q14 to 1Q15; it was effectively flat on iOS •  Results span applicable smartphones and tablets (plus iPod Touch)

Worldwide$Share$of$iOS$&$Google$Play$Downloads$&$Consumer$Spending$ARributable$to$Games,$1Q14$&$1Q15

Games:$Share$of$App$Store$Downloads$

Games:$Share$of$App$Store$Consumer$Spending$

Source:"

App"Annie"


7"

Worldwide$Mobile$&$Handheld$Game$Console$Consumer$Spending$on$Games,$1Q14$&$1Q15

0"

50"

100"

150"

200"

iOS"App"Store" Google"Play" Handheld"Game"

Consoles"

Indexed$Consumer$

Spending$on$Games$

$(iOS$1Q14$Indexed$to$100)$

1Q14" 1Q15"

•  Handheld game

console revenue includes packaged and digital

•  All ad revenue excluded

Source:"

App"Annie"&"IDC"

•  iOS App Store game consumer spending grew ~30% and Google Play game spending grew ~50% from 1Q14 to 1Q15

•  Handheld game console software spending was basically flat year-over-year


8"

0%"

25%"

50%"

75%"

100%"

1Q14" 1Q15" """ 1Q14"""""1Q15"""" """"" 1Q14"" 1Q15""

North"America"

Western"Europe"

AsiaHPacific"

Rest"of"World"

+2.3"pts"

iOS"App"Store"

Games"

Google"Play"

Games"

Handheld"Game"

Consoles"

Worldwide$Mobile$&$Handheld$Game$Console$Consumer$Spending$Shares$on$Games,$by$Region,$1Q14$&$1Q15

•  Asia-Pacific gained in share of consumer spending on games on the iOS App Store, while North America outpaced the market on Google Play

•  On handheld game consoles, Asia-Pacific had the largest regional market share gain

Source:"

App"Annie"&"IDC"

+1.2"pts"

+7.4"pts"


9"

•  Online&mul)player&defini)on:&Any&game&that&includes&features&by&which&a&player’s&gameplay&materially&and&directly&affects&the&gameplay&and&in=game&outcomes&of&another&player&

•  This"definiCon"encompasses"realHCme"and"turnHbased/

asynchronous"gameplay;"a"game"that"supports"both"singleHplayer"

(story)"and"online"mulCplayer"modes"is"considered"a"mulCplayer"

Ctle"

•  Games"in"which"the"interacCon"among"players"is"limited"to"

leaderboards,"virtual"item"sharing/gijing"and"similarly"tangenCal"

social"interacCons"are"excluded"

Online$MulWplayer$Extends$&$Deepens$Engagement$


Worldwide$Share$of$the$Top$50$Most$Popular$Steam$(PC)$Games$by$Gameplay$Mode,$May$2015$

•  As measured by peak daily concurrent gamers, online multiplayer (OMP) titles dominated: only about one in eight Steam gamers (~12%) played one or more single-player titles in May 2015

•  Among the most popular 50 Steam games, 30% were single-player (15 titles) and 70% supported OMP (35 titles)

•  The base was average peak daily concurrent gamers on Steam that played one or more of the Top 50 most popular titles in May 2015 (avg. daily n = 2.36M) 10"

88%"

12%"

"Online"MulCplayer"Gamers"

"SingleHPlayer"Gamers"

Share$of$$Peak$Daily$$

Concurrent$Gamers$

Source:"IDC"analysis"of""

Valve’s"Steam"&"Game"Stats"data"


11"

Rank$ App$Name$ Publisher$ Share$of$Top$10$Games**$ Release$Quarter$

1 Dota 2 Valve 46% 3Q13

2 Counter-Strike: Global Offensive Valve 29% 3Q12

3 Grand Theft Auto V Rockstar Games 5% 2Q15

4 The Witcher 3: Wild Hunt CD PROJEKT RED 4% 2Q15

5 Team Fortress 2 Valve 4% 2Q08

6 Football Manager 2015 SEGA 3% 4Q14

7 Clicker Heroes Playsaurus 3% 2Q15

8 Sid Meier's Civilization V 2K Games / Aspyr 2% 3Q10

9 The Elder Scrolls V: Skyrim Bethesda Softworks 2% 4Q11

10 Garry's Mod Valve 2% 4Q06

Worldwide$Top$10$Steam$(PC)$Titles$by$Peak$Daily$Concurrent$Gamers,$May$2015$

Source:"IDC"analysis"of""

Valve’s"Steam"&"Game"Stats"data"

Games that support online multiplayer are shown in blue; eSports titles also bolded and italicized

**"Share"of"peak"daily"concurrent"

gamers"who"played"a"Top"10"Ctle"


U.S.$Console$Gamer$Time$Commitment$Upli\$for$Online$MulWplayer$Gamers,$2Q13^2Q15E$

•  The online multiplayer (OMP) console gamer base appears to be on track to average an extra ~105 minutes of gameplay per week in the 12 months ending June 2015 compared to the average of all console gamers

•  Highly-popular OMP console titles since 4Q14 include Call of Duty: Advanced Warfare, Destiny, Grand Theft Auto V, FIFA 15 and Super Smash Bros. for Wii U

•  Time commitment results are based on 2Q13 and 2Q14 surveys; 2Q15 is estimated

0"

2"

4"

6"

8"

10"

12"

14"

2Q13" 2Q14" 2Q15E*"

"Online"MulCplayer"

Console"Gamers"

"All"Console"Gamers"

Typical$H

ours$of$Weekly$

Gameplay$Per$User$

12"

Source:"IDC"Gamer"Surveys"

"(2Q13"n"="1,451;"2Q14"n"="2,146)"

*"2Q15"is"esCmated"


13"

1 2 3



U.S.$Portable$Gamer$Time$Commitment$Upli\$for$Online$MulWplayer$Gamers,$2Q13^2Q15E$

•  The online multiplayer (OMP) portable gamer base appears to be on track to average an extra ~35 minutes of gameplay per week in the 12 months ending June 2015 compared to the average of all portable gamers

•  The portable time uplift is narrower than for traditional video game consoles – but both averages are rising, unlike on traditional consoles

•  Portable category includes smartphone, tablet and handheld game console gamers •  Time commitment results are based on 2Q13 and 2Q14 surveys; 2Q15 is estimated

0"

2"

4"

6"

8"

10"

12"

2Q13" 2Q14" 2Q15E*"

Online"MulCplayer"

Portable"Gamers"

"All"Portable"Gamers"

Typical$H

ours$of$Weekly$

Gameplay$Per$User$

14"

Source:"IDC"Gamer"Surveys"

"(2Q13"n"="1,149;"2Q14"n"="828)"

*"2Q15"is"esCmated"


15"

U.S.$Portable$Game$Genre$PenetraWon$Rate$DisWncWons$for$Online$MulWplayer$Gamers,$2Q14

0%"

10%"

20%"

30%"

40%"

50%"

AcWon$&$Adventure$

Casino$(Card,$Dice$

&$Slots)$

Puzzle$ Word$&$Trivia$

Strategy$&$TacWcs$

Board$ EducaWonal$&$Brain$

Training$

Shooter$

Online"MulCplayer"Portable"Gamers" "All"Portable"Gamers"

•  Online multiplayer (OMP) portable gamers lean toward different genres compared to the average portable gamer; for example OMP portable gamers were 24% more likely to play Action & Adventure titles and 12% less likely to play Casino games in 2Q14

•  Rates shown are for the Top 8 most popular genres among OMP portable gamers; respondents reported playing one or more titles in the genres indicated in 2Q14

•  Portable category includes smartphone, tablet and handheld game console gamers

Source:"""

IDC"Gamer"Survey""

(2Q14"n"="828)"


0%"

25%"

50%"

75%"

100%"

iOS"&"Google"Play"Combined"

0%"

25%"

50%"

75%"

100%"

iOS"&"Google"Play"Combined""

1Q14"

1Q15"

•  Among the Top 50 mobile games, multiplayer games accounted for ~60% of consumer spending despite only contributing ~30% of downloads in 1Q15

•  Among the Top 50 mobile games, consumer spending growth for multiplayer titles outpaced download growth from 1Q14 to 1Q15

•  Results span applicable smartphones and tablets (plus iPod Touch)

Worldwide$Share$of$Downloads$&$Consumer$Spending$of$Top$50$Mobile$Games$ARributable$to$MulWplayer$Games,$1Q15

Share$of$Consumer$Spending$From$MulWplayer$Games*$

Source:"

App"Annie"

Share$of$Downloads$From$MulWplayer$Games*$

16"

*"Among"Top"50"games"


17"

Downloads$ Consumer$Spending$

Rank$ App$Name$ Publisher$ App$Name$ Publisher$

1 Candy Crush Soda Saga King Clash of Clans Supercell

2 Subway Surfers Kiloo Puzzle & Dragons GungHo Online

3 Candy Crush Saga King Monster Strike Mixi

4 Crossy Road HIPSTER WHALE/Yodo1 Game of War - Fire Age Machine Zone

5 Trivia Crack Etermax Candy Crush Saga King

6 Clash of Clans Supercell Candy Crush Soda Saga King

7 My Talking Angela Outfit7 Boom Beach Supercell

8 My Talking Tom Outfit7 Disney Tsum Tsum LINE

9 Temple Run 2 Imangi Studios Hay Day Supercell

10 Despicable Me Gameloft Everybody's Marble Netmarble/LINE/Tencent

Top$10$Mobile$Games$Worldwide$by$iOS$&$Google$Play$Combined,$1Q15$

Source:"App"Annie"

Games with multiplayer features shown in blue


18"

•  2"of"the"Top"10"mobile"games"by"downloads"and"6"of"the"Top"10"by"

revenue"in"1Q15"supported"mulCplayer"

•  Supercell"excelled"with"3"mulCplayer"Ctles"in"the"worldwide"mobile"Top"

10"games"by"revenue"in"1Q15"

•  CityHbuilding/resource"management"and"tower"defense"games"like!Clash!of!Clans,!Game!of!War!–!Fire!Age,!Boom!Beach!and!Hay!Day!have"been"able"to"moneCze"mulCplayer"gamers"especially"well"in"recent"quarters"

•  Many"top"mobile"mulCplayer"games"can"be"played"asynchronously,"but"

they"impose"Cme"limits"to"keep"gameplay"moving"and"players"engaged"

•  Except"for"Trivia!Crack,"the"other"mulCplayer"games"in"the"Top"10"in"

1Q15"allow"players"to"form"teams;"teamHbased"play"builds"social"

cohesion"and"generally"makes"Ctles"sCckier"

MulWplayer$Highlights$for$the$Top$10$Mobile$Games$


19"

1 2 3



20"

•  When"done"right,"online"mulCplayer"(OMP)"has"the"potenCal"to"greatly"

extend"a"game’s"lifespan"

•  Two"of"the"Top"10"most"popular"games"on"Steam"in"May"2015"were"OMP"

Ctles"that"were"released"over!7!years!ago!

•  OMP"features"are"challenging"to"build"and"operate,"but"can"power"“legs”"

that"drive"up"the"lifeCme"value"(LTV)"of"gamers,"not"just"their"Cme"

commitments"

•  OMP"features"have"moved"from"a"novel"game"feature"10"years"ago"to"the"

dominant"mode"of"many"of"today’s"most"profitable"franchises"

•  TeamHbased"eSports"Ctles"are"emblemaCc"of"a"deeper"industry"shij"

•  Some"genres"perform"well"despite"having"a"strong"singleHplayer"

orientaCon,"most"notably"simulaCons"and"roleHplaying"games"

Broader$Online$MulWplayer$Upli\$Takeaways$


21"

• Consumer"spending"on"games"increased"notably"from"1Q14"to"1Q15;"

iOS"App"Store"spending"grew"~30%"worldwide,"while"Google"Play"

spending"grew"~50%"

• Among"the"Top"50"mobile"games,"mulCplayer"games"accounted"for"

~60%"of"consumer"spending"despite"only"contribuCng"~30%"of"game"

downloads"in"1Q15"

• The"same"trend"is"reflected"in"the"Top"10"mobile"games,"with"6"of"the"Top"

10"by"revenue"in"1Q15"supporCng"mulCplayer"

• Many"top"mobile"mulCplayer"games"allow"players"to"form"teams;"teamH

based"play"builds"social"cohesion"and"generally"makes"Ctles"sCckier"

Broader$Mobile$Gaming$Takeaways$$

Report methodology and updates are available here

http://go.appannie.com/app-annie-idc-gaming-report-2015-h1-e3-edition-methodology


@LewisAWard @AppAnnie

[email protected] [email protected]

Documents

Gaming Spotlight, 1H15: How Online Multiplayer … Spotlight, 1H15: How Online Multiplayer Is a Game Changer June 2015 ©"2015"App"Annie"&"IDC"|"Do"Not"Distribute" 2" Why$You$Should$Care$About$Mobile$Gaming$