Kids and Casual Gaming Around The World by Casual Connect

Kids and Casual Gaming Around the World

Objectives & Methods Platform

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Purchase Intent Co-Play

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Monetization

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Objectives & Methods

4 9

11 12 At the end of 2012, an online survey was conducted with an international sample of ‘casual gaming families’ — 1000 parents who have children ages 2 to 13 in the household who play casual games at least weekly.

New and emerging platforms are increasingly providing novel mediums for children around the world to play casual games. However, surprisingly little is known about kids and casual gaming, particularly from an international perspective. > Children game on computers more than any other device. > Platforms for play change by age. Younger kids lean toward tablet use, whereas older kids are more computer and gaming system oriented. > Across countries and among mobile devices, the iPad has the highest gaming “conversion” rate (when children have access to it!).

> Across markets, the computer or the laptop is the clear most common devices to play casual games on, followed by handheld game players and tablets. > 3⁄5 of casual gaming parents intended to purchase a new platform for their kids to game on this past holiday season.

Global Gaming Across Generations

>A lmost ¾ of parents who have access to a game console play on it with the kids, although Chinese parents prefer tablets to gaming systems. > Most parents prefer to let their kids try games out first with free version of games. > Half of casual gaming parents spend over $10/month purchasing kids games for a game console.

The following countries were included in the study: China Germany By casual gaming, we are referring to digital games that are fun and easy to play, for example a mobile app like Angry Birds or Monkey Preschool Lunchbox, playing Solitaire on the computer, an online Social Networking Game like Farmville, or an arcade game like Tetris played on a video game console. Casual games are different than complex games like World of War Craft, Grand Theft Auto, and Portal. 1: USA, Canada, Mexico, Brazil. 2: Japan, China, Australia, Korea. 3: Great Britain, France, Italy, Germany. 4: Russia, India, Spain, Netherlands.

Mexico 1: USA, Canada, Mexico, Brazil. 2: Japan, China, Australia, Korea. 3: Great Britain, France, Italy, Germany. 4: Russia, India, Spain, Netherlands.

U.S.

Global Gaming Across Generations 2013 Ca s ua l G a m e s A s s o c i at i o n 3

1: USA, Canada, Mexico, Brazil.

Access Supporting Data

Platform: Access Computers and game consoles reign in the land of kids & casual gaming; but mobile is catching up quickly! > Overall, children play casual games on computers more than any other device, with 81% of casual gaming parents saying that their children play games on a desktop or laptop. Game consoles follow behind, although not as closely as one might expect at 62% for consoles and 44% for handheld consoles. This is an issue of access. > Of kids who have access to the devices, they are most likely to game on computers, game consoles and handheld game consoles, with just over 80% of kids using those devices for gaming if they have access to them.

Global Gaming Across Generations

Which of the following devices, if any, do you have in your household?

> While not as many kids have access to iPads (39%), usage is high amongst the kids that do have access (72%). As access to iPads increases, they are likely to rise in importance in the kids gaming ecosystem. The same is true for iPhones, although to a lesser extent, with 39% of kids having access and 60% of kids with access using them for casual gaming. > In general for the other mobile devices — aka other tablets, smartphones, and iPod touches, about half of the kids who have access are likely to use the device for gaming — actually a surprisingly high number!

Which of the following devices does your child play casual games on?

Household Owns Kids Play Casual Games On

100%

80%

60%

40%

Casual Gaming Devices Used by 2-13 Year Olds Casual Games Played on iPad by 2-13 Year Olds

81%

China

computers

62%

U.S.

53%

26%

Germany

Mexico

11%

16%

20%

Computer

Game Console

Smartphone Handheld Game Player

iPad

iPhone

iPod Touch

E-reader

Tablet Device

game consoles

44%

handheld consoles

1: USA, Canada, Mexico, Brazil. 2: Japan, China, Australia, Korea. 3: Great Britain, France, Italy, Germany. 4: Russia, India, Spain, Netherlands.

Global Gaming Across Generations 2013 Ca s ua l G a m e s A s s o c i at i o n 5

Platform: Frequency

Frequency by Age

Platforms for Play Change Across Kids: 2-13 yo Assuming the child has access to the device, kids most often play casual games on a computer (31%), followed by a gaming console (19%), a handheld (13%) and then an iPad (11%).

Top devices kids play games most often on

31% 13% computers

handheld consoles

Younger kids play Casual Games more frequently on iPads! Which of the following devices does your child play casual games on most often?

19% 11% game consoles

Of kids who have access to the device, younger kids lean toward tablet use, whereas older kids are more computer and gaming system oriented. > 2–5 year olds game most often on an iPad (37%), followed by a computer (28%), followed by a smartphone (18%). > 6–9 years olds game most often on an iPad (39%), followed by a computer (29%) and game console (28%). > 10–13 year olds game most often on a computer (36%), followed by game consoles (31%) and handheld game players (29%).

ipad

2-5 year olds & 6-9 year olds game most often on an iPad 10-13 year olds game most often on a computer

Top 3 Devices for Casual Games by Age 2–5 Year Olds

37% 28% 18%

Computer

iPad

39%

Computer

31%

Game Console

19%

Handheld Game Player

13%

iPad

11%

29%

28%

Computer

Game Console

Smartphone

Learning Tablet

E-reader

iPhone

Tablet Device

10–13 Year Olds

iPod Touch

36%

Computer Computer

Computer

Game Console

Smartphone

6–9 Year Olds

Kid’s Device Preference for Casual Games

Computer 6

Global Gaming Across Generations

iPad

Computer

iPad

Game Console Game Console

iPad iPad

31%

29%

Game Console

Handheld Game Player

Game Console

Handheld Game Player

Global Gaming Across Generations 2013 Ca s ua l G a m e s A s s o c i at i o n 7

Platform: Frequency

Co-Play

Mobile is taking off globally

Families are playing together! Almost ¾ of parents who have access to a game console play on it with their kids.

> Across markets, the computer or the laptop is the clear most common device for kids to play casual games on, followed by handheld game players (for Mexico, US and Germany) and tablets.

A country snapshot:

> Family play is most common on game consoles, with 73% of parents who have access to a console saying they play together on it with their kids. Consoles are followed by computers (69%).

> It seems consoles are catching up on PCs and laptops in Germany and the US. iPads are really popular in China with 1/4 of our respondents choosing them as their child’s most used device for casual gaming.

1. Game consoles are the most used device for German, Mexican and U.S. parents to play with their children, while Chinese parents favour tablets.

> Not surprisingly, it is less common for families to play together on mobile devices, however over half of parents (53%) report playing on their iPads with their kids.

> Smartphones are most used in Mexico with 13% of our sample’s kids playing games on their phones most often than other devices.

1: USA, Canada, Mexico, Brazil. 2: Japan, China, Australia, Korea. 3: Great Britain, France, Italy, Germany. 4: Russia, India, Spain, Netherlands.

Devices Most Used By Kids 2-13 Years Old

Mexico

China

Global Gaming Across Generations

1: USA, Canada, Mexico, Brazil. 2: Japan, China, Australia, Korea. 3: Great Britain, France, Italy, Germany. 4: Russia, India, Spain, Netherlands.

2. The classic computer or laptop ranks #2 for co-play in all 4 markets. 3. Playing games on an iPhone or a smartphone also ranks high with parents and their children.

On which of the following devices do you play together with your kids? 1: USA, Canada, Mexico, Brazil. 2: Japan, China, Australia, Korea. 3: Great Britain, France, Italy, Germany. 4: Russia, India, Spain, Netherlands.

80%

Germany Mexico

25%

13%

ipad

smartphones

70% 60% 50% 40%

1: USA, Canada, Mexico, Brazil. 2: Japan, China, Australia, Korea. 3: Great Britain, France, Italy, Germany. 4: Russia, India, Spain, Netherlands.

co, Brazil. alia, Korea. e, Italy, Germany. , Netherlands.

U.S.

1: USA, Canada, Mexico, Brazil. 2: Japan, China, Australia, Korea. 3: Great Britain, France, Italy, Germany. 4: Russia, India, Spain, Netherlands.

30% 20%

computers are most common

1: USA, Canada, Mexico, Brazil. 2: Japan, China, Australia, Korea. 3: Great Britain, France, Italy, Germany. 4: Russia, India, Spain, Netherlands.

10% 0%

Game Console

Computer

iPad

Tablet Device

Handheld Learning Game Tablet Player

iPhone Smartphone E-reader

iPod Touch

Global Gaming Across Generations 2013 Ca s ua l G a m e s A s s o c i at i o n 9

co-play

Purchase InTENT Supporting Data

Global Gaming Across Generations

Purchase Intent

25% 20% 15%

Which platform(s) are you most 10% likely to purchase for your children? 5%

0% Global Devices X-BoxInterest Nintendo In WiiHandheld PlayStation Wii U PlayStation

Global Interest In Consoles

3Ds

25%

20%

15%

10%

X-Box

Nintendo 3Ds

Wii

PlayStation Vita

Wii U

PlayStation

Kinect

Vita

> Almost 60% of ‘casual gaming parents’ intend to purchase a new platform or device for their children to play casual games on this holiday season. A country snapshot:

> Purchase intent is about equal between mobile devices and traditional gaming platforms.

iPad

Learning Tablet

Tablet Smartphone iPhone Device

iPod Touch

25%

Platform Interest By Country

China Germany Mexico United States Total

20%

40% 15%

35% 10%

30%

T op of Chinese parents’ list are tablets (iPads – 40% and learning tablets – 34%).

> Of parents who do intend to purchase a new casual gaming device, the most popular devices are X-box (23%), iPad (22%), and kids learning tablet (21%).

Parent’s Purchase Intent

1: USA, Canada, Mexico, Brazil. 2: Japan, China, Australia, Korea. 3: Great Britain, France, Italy, Germany. 4: Russia, India, Spain, Netherlands.

In Germany, parents seem to be more inclined to buy gaming platforms for their children this year with the Nintendo 3DS being top of the list (27%). 1: USA, Canada, Mexico, Brazil. 2: Japan, China, Australia, Korea. 3: Great Britain, France, Italy, Germany. 4: Russia, India, Spain, Netherlands.

25% 20%

25% 0%

Kinect

3/5 of casual gaming parents intend to purchase a new platform for their kids to play games on when purchasing gifts.

iPad

Learning Tablet

Tablet Smartphone iPhone Device

The Nintendo 3DS is the #1 most wanted gaming platform in the US this holiday season (27%) but parents are also looking to buy learning tablets (23%)

15%

iPod Touch

20%

aming platforms are the most G desirable devices for Mexican parents, with the Xbox and Kinect sharing the top spots.

10% 5%

15%

10%

X-Box

iPad

kids learning tablet

1: USA, Canada, Mexico, Brazil. 2: Japan, China, Australia, Korea. 3: Great Britain, France, Italy, Germany. 4: Russia, India, Spain, Netherlands.

5% 0%

X-Box

iPad

Learning Tablet

Nintendo 3DS

Tablet Device

Wii

Global Gaming Across Generations 2013 Ca s ua l G a m e s A s s o c i at i o n 11

Global Gaming Across Generations

Monetization And the monetization winner is… Try it before buying it! When asked to rank their interest in different ways to purchase casual games for their children, parents prefer to let their kids “try it out” first with a free version.

The way to their wallet or Brieftasche or cartera or

Mean of Top Ranked Purchasing Preferences (per 10 responses)

Chinese and Mexican parents have similar interest in purchase options, and seem to be the most willing to pay for casual games. > About 2/3 are likely to get their child a free version and then upgrade later. > About 1/2 are likely to buy a full, ad-free version.

10 9 8

Subscriptions, which ironically have been a stalwart in the kid’s gaming space, are actually the least liked model by parents.

60%

50%

6 40%

5 4

30%

1: USA, Canada, Mexico, Brazil. 2: Japan, China, Australia, Korea. 3: Great Britain, France, Italy, Germany. 4: Russia, India, Spain, Netherlands.

20%

2 10%

1 0

A free Buy the Free version version with full version, then upgrade advertising advertising-free

Purchase a subscription

A free version with advertising

Chinese and U.S. parents are the most advertising accepting, with 2/5 of parents sayingathat they are likely Buy the Free version Purchase full version, then subscription to upgrade get (or allow) ad-supported games advertising-free for their kids.

1: USA, Canada, Mexico, Brazil. 2: Japan, China, Australia, Korea. 3: Great Britain, France, Italy, Germany. 4: Russia, India, Spain, Netherlands.

Purchasing Preferences in Top 3

9 8

60%

1: USA, Canada, Mexico, Brazil. 2: Japan, China, Australia, Korea. 3: Great Britain, France, Italy, Germany. 4: Russia, India, Spain, Netherlands.

NOTE: All %s are for Top 3 box on a 0-10 scale from “not at all likely” to “very likely”.

50%

The U.S. parents seem to mostly want to start with a free version, no matter what. > 1/2 start with a free version and then upgrade. > 2/5 are likely to have the free version that includes advertising.

German parents, overall, are less likely to want to pay for casual games and are the most advertising averse. > For those that will pay, they are most likely to buy the full version of the game without ads (45%). > A full ¼ of German parents are not interested in games with advertising for their children at all; and over ½ refuse to even consider a subscription.

40%

5 4

30%

20%

2 10%

1 0

A free Buy the Free version version with full version, then upgrade advertising advertising-free

Purchase a subscription

A free Buy the Free version version with full version, then upgrade advertising advertising-free

Purchase a subscription

Global Gaming Across Generations 2013 Ca s ua l G a m e s A s s o c i at i o n 13

Monetization

Monthly Spend

Half of casual gaming parents spend over $10/month purchasing kids games for a game console

Most Popular Device for Each Spend Category

gaming console

over $10 ipad

under $10 computer

zero 14

Global Gaming Across Generations

> Parents were by far the most likely to spend over $10 last month on game consoles (51%), followed by handheld game players and learning tablets. This is not surprising, as games for these devices are the most expensive. > 26% of parents spent over $10 last month purchasing games for an iPad, which is quite high considering the average price of a kids game is likely $2 or under. > Interestingly, of parents whose kids do play casual games, they are most likely to have spent $0 games for smartphones (58%) and computers (48%), indicating that kids may be playing more free games on these devices.

On average, how much did you spend last month purchasing games for your children for each of the following devices? Spending Patterns by Device

Zero

Under $10

Over $10

100% 80% 60% 40% 20% 0%

Game Console

Handheld Game Player

Learning Tablet

iPad

Computer

iPod Touch

Tablet Device

iPhone

E-reader Smartphone

Percentage of Kids Playing Who Do Not Spend Any Money On Games by Device Smartphone

58%

Computer

48%

Tablet Device

43%

iPod Touch

40%

iPhone

36%

Handheld Game Player

35%

Learning Tablet

34%

E-reader

31%

Game Console

24%

iPad

22%

Global Gaming Across Generations 2013â&#x20AC;&#x192; Ca s ua l G a m e s A s s o c i at i o n â&#x20AC;&#x192; 15

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