Going on in Games by mbrojo

The gameâ&#x20AC;&#x2122;s just started

Sean Dromgoole

A little history... What games are The buttons games push Who they push them for A recent explosion... New markets by the sectors The opportunity An approach

Understand New Environment

Acquire new skills

Testing skills

Reward Complete

Surprise Discovery Challenge Progress Improvement Starting something new

Learning Preparation Being better

Understand

New Environment

Acquiring new skills

Testing skills

Reward

Celebration Proof of self worth Given something you want

Completion

Release Satisfaction Conquering

Proving Self Immersion Focus Proficiency

The Good

The Bad and the Ugly

Enlightenment

Anti-everything/ nihilism

Love

Hatred

Creativity

Destruction

Belonging

Isolation

Beauty/Culture

Philistinism

Wisdom/Knowledge

Idiocy

Power/control

Freedom from responsibility

Individuation

Conformity

Happiness

Depression / Escape

Proficiency

Inadequacy

Health

Illness / Death

Security

Risk

Victory

Defeat

Involvement / Excitement

Relaxation

Contentment

Anger / Fear

Food, water, sex, warmth

The Good

The Bad and the Ugly

Enlightenment

Anti-everything/ nihilism

Love

Hatred

Creativity

Destruction

Belonging

Isolation

Beauty/Culture

Philistinism

Wisdom/Knowledge

Idiocy

Power/control

Freedom from responsibility

Individuation

Conformity

Happiness

Depression / Escape

Proficiency

Inadequacy

Health

Illness / Death

Security

Risk

Victory

Defeat

Involvement / Excitement

Relaxation

Contentment

Anger / Fear

Food, water, sex, warmth

The Good

The Bad and the Ugly

Enlightenment

Anti-everything/ nihilism

Love

Hatred

Creativity

Destruction

Belonging

Isolation

Beauty/Culture

Philistinism

Wisdom/Knowledge

Idiocy

Power/control

Freedom from responsibility

Individuation

Conformity

Happiness

Depression / Escape

Proficiency

Inadequacy

Health

Illness / Death

Security

Risk

Victory

Defeat

Involvement / Excitement

Relaxation

Contentment

Anger / Fear

Food, water, sex, warmth

Have you played a video game in the last 6 months? UK

40%

We call this being an active gamer â&#x20AC;&#x201C; bought or had bought for your own use a big game. UK

35%

50,000,000

Males

45,000,000

Females

40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 Spring 2004

Spring 2005

Spring 2006

Spring Autum n Spring Autum n Spring 2007 2007 2008 2008 2009

45% 40% 35% Female Games

30% 25% 20% 15% 10% 5%

Xbox DS Lite Wii

0% Autumn Spring 2004 2005

Autumn Spring 2005 2006

PS3

Autumn Spring 2006 2007

Autumn Spring 2007 2008

Autumn Spring 2008 2009

76%

80%

75%

65%

70%

67%

60%

54%

50% 40%

46%

35%

30%

24%

60% 56% 44%

25%

33%

20%

40%

10% 0%

PS2

PS3

Xbox 360

Wii

Male Female PSP

Wii Sports Wii Fit Mario Kart Call of Duty Wii Play Super Mario Bros Grand Theft Auto Guitar Hero FIFA Brain Training

7,460,000 5,220,000 5,120,000 4,400,000 3,680,000 3,580,000 3,400,000 3,360,000 3,250,000 3,130,000 Copyright GameVision ÂŠ 2009

Call of Duty Wii Fit Pro Evolution Soccer Wii Sports FIFA Mario Kart Gears of War Halo Guitar Hero Grand Theft Auto Copyright GameVision ÂŠ 2009

73,900,000 31,000,000 30,500,000 30,300,000 26,600,000 20,900,000 17,400,000 16,800,000 14,600,000 13,900,000 16

Moved from geek to mass market

Recent growth has been in Female Older Casual

Most active 25%

Account for 77% of all spending

...and then it all went bang.

New ways of gaming

In the last 30 months there has been an explosion in the ways people play and pay for their games experience. Facebook achieves 100M active users iPhone 3G launched iPhone 3GS launched iPad launched Android best selling phone platform 101M smartphones sold worldwide inâ&#x20AC;Ś CityVille reaches 100M users in 43 days 20 million iPhones and 9.25 million iPads Top 7 grossing Apple apps are free, top 8 Android Facebook achieves 750M active users World of Warcraft goes freemium

Quarter 2 2008 Quarter 4 2008 Quarter 4 2009 Quarter 2 2010 Quarter 4 2010 Quarter 4 2010 Quarter 1 2011 Quarter 2 2011 Quarter 2 2011 Quarter 3 2011 Quarter 3 2011

All Active Gamers 88.6M 29.9% 6+population

All Active Classical Gamers 85.2M 28.8%

All New ways to play 16.4M 5.5%

Gamers Active in Both Sectors 13M 4.4%

How many? In Europe there are 6 million people playing subscription based massively multiplayer games Of these, 2 million have spent any money on those games in the last 12 months.

Who are they? MMOs are for boys with the notable exception of 15-19 year old girls 14% of 15-19 year old boys are playing subscription based MMOs

What else are they up to? More than a quarter have downloaded extra content in the last 3 months More than half have used free games websites and Social Network gaming 95% have not only used a subscription based game but paid for extra items in the game.

How many? 35 Million Europeans are gaming on social networking sites Of these only four million have spent any money on them in the last twelve months

Who are they? In this chart we have combined the spenders with the non spenders. We can see that the split is much closer to an even split between males and females Spending peaks older for females (20-24) than males 15-19) 40%

What else are they up to? Only 71% of Social Networking gamers are also Active Classical Gamers. Just less than half also play free games on websites There is a much lower crossover with other new ways to game

20%

40%

How many? There are 31 million people in Europe who have played games on free websites in the last 12 months Of these only 2 million have spent any money on them

Who are they? Here the split is more male It peaks at a younger age group 10-14 for both sexes. Maximum spend is older that the peak age group of usage.

40%

What else are they up to? Again only 72% of these gamers on free websites are Active Classical Gamers.

20%

40%

How many? Here we note much higher conversion rates 15 million have gamed on a portable device i.e. A smartphone or a tablet (Not a DS) Of these 8 million have spent money on gaming in the last twelve months.

Who are they? This is a very male activity with both a higher proportion of play and a much higher proportion of spending occurring with males.

20%

What else are they up to? 76% are Active Classical Gamers 37% donâ&#x20AC;&#x2122;t do any other form of New Ways of Gaming

10%

20%

These games are never launched as a finished product. They are Beta-ed to death. The style and audience expectation is one of constant change, re-evalutation and improvement.

The best products focus on building audience through retention and word of mouth. Partially because the games industry is good at “sticky” and partially because they have no money for marketing spend.

The big hits – Farmville, Angry Birds, Cut the Rope, Doodle Jump, Tap Zoo have no predecessors in other sectors (although these are beginning to emerge with Fifa All Stars, Sims Social) Copyright GameVision © 2009

An industry that creates sticky involving product that is reaching an increasing number of people The people who spend the most do everything The industry is currently in flux and the audience is up for new ideas The new stuff is happening in the new markets at increasing pace â&#x20AC;&#x201C; but the old market is still massive.