STATE OF GAMING Peer Schneider, Chief Content Officer GAMING HAS GROWN UP. BEHOLD THE BATTLE OF HOTH IN 1981… = =

…AND 34 YEARS LATER. GLOBAL GAMES MARKET $152.1 BILLION GAMESTotal: $152.1 ($36.9 Billion US)SOFTWARE MARKET $68.5 Billion $35.7 Billion $47.9 Billion

2B Mobile Players 1.2B PC Players 500MM Console Players

Source: Newzoo, 2019 CONSOLESA Brief History: 150+ Machines and Proprietary Formats Later:

PlayStation 4 Xbox One Nintendo Switch 100MM (2013) 41MM (2013)* 37MM (2017)

Sources: NPD/*IGN estimate Console usage has again caught up to PC play time

S11. How much time do you typically spend playing games on each system that you own and use in a typical week? Source: IGN Segmentation Study, 2019 Gamers are diverse

S2. What is your gender? S1. What is your date of birth? S4. Please enter your 5-digit zip code. Source: IGN Segmentation Study, 2019 TOP FORMS OF ENTERTAINMENT

1. Playing Video 2. Streaming 3. Watching Games Movies or TV Shortform & Streams

4. Hanging Out 5. Social 6. Going to 7. Watching 8. Reading 9. Dating / Time 10. Exercise / with Friends Networks the Movies Sports with your Working Out Significant Other

Gamers pursue a wide range of hobbies

E4: Please choose your top 3 most important types of entertainment. You may choose less than 3, but not more. Source: IGN Segmentation Study, 2019 SPENDING BY CATEGORY $139 PURCHASED IN THE PAST WEEK $131 $120 $119 $103 +54%MORE THAN NON-GAMERS

$71 $73 $64

$35 $33 $24 $26 $14 $15 $14 $4

Gaming Dining Out Travel TV Movies Music Sports Toys 6x 2x 2x 2x 3x

GAMERS NON-GAMERS

Gamers are heavy spenders

Source: IGN Segmentation Study, 2019 S12. How much money would you say your household spends in a typical MONTH on the following? MADE A RECOMMENDATION ON IN PAST MONTH

53% 51% 48% 45% 44% 43% 39% 39% 35% 34% 36% 32% 23% 18% 20% 19% 15% 11% 12% 10% 10% 8%

Video Games Movies TV shows Food Music Restaurants Mobile games QSR Gadgets Books/Comics Sports apparel 5x 3x 2x

GAMERS NON-GAMERS

Gamers are influential

Source: IGN Segmentation Study, 2019 E5. Which of the following categories have you given a recommendation for or had conversations about (either in-person or online) in the past MONTH? ATTITUDES TOWARDS MOBILE GAMING CHANGE OF PERSPECTIVE 2016 2018

52%

36% 36% 31%

22%

13% • 56% of gamers say playing mobile 5% 5% games can be as much fun as playing console or PC games (+10%) Computer Smartphone TV Tablet

• 67% say it’s a fun way to play when no console or PC is available

E11. If you had to make a choice, which of the following “screens” is the one that you could not live without? VB5.Which best describes how you play games? Source: IGN Segmentation Study, 2019 ESPORTS ATTITUDES CHANGE OF PERSPECTIVE

2016 2018

37% Gamers who enjoy watching esports 40%

6% Watched an esports tournament in person 9%

• A quarter of gamers are 22% invested in esports. Watched an esports tournament online 22% • 41% watched someone else stream a game

VA2. How much do you agree or disagree with each of the following statements? VB3. Which of the following have you done in the past YEAR? Source: IGN Segmentation Study, 2019 2007 GAMER SEGMENTS IN 2007, GAMERS WERE EITHER HARDCORE OR CASUAL

Core Casual

Sizes of circles represent % of total gamers Source: IGN Segmentation Study, 2007 2010

TWO DISRUPTORS SHAPED THE INDUSTRY: &

Core Casual

Source: IGN Segmentation Study, 2010 TODAY

WE NOW TRACK SIX VERY DIFFERENT GAMER SEGMENTS

Universal Dedicated Calculated Hybrid Fringe

Trending

Core Casual

Source: IGN Segmentation Study, 2019 FRINGE Does not identify as a gamer. Prefers mobile & free-to-play games.

HYBRID Gaming is one of many hobbies. Buys the biggest games on sale.

CALCULATED PC focused. Has a negative attitude towards mobile gaming.

TRENDING Views gaming as a way to connect. Is looking to join in on latest trends.

DEDICATED Gaming is life. Prioritizes their spending towards gaming.

UNIVERSAL Trend setter. Will always be the first to buy and play new games.

These segments differ significantly — here’s a top-level summary. FRINGE Does not identify as a gamer. Prefers mobile & free-to-play games.

HYBRID Gaming is one of many hobbies. Buys the biggest games on sale.

CALCULATED PC focused. Has a negative attitude towards mobile gaming.

TRENDING Views gaming as a way to connect. Is looking to join in on latest trends.

DEDICATED Gaming is life. Prioritizes their spending towards gaming.

UNIVERSAL Trend setter. Will always be the first to buy and play new games.

Here’s an internal IGN matrix on how and where we reach the Top 5. GAMES ARE ABOUT TO TAKE ANOTHER LEAP…

UNIVERSAL STUDIOS: MUSHROOM KINGDOM

Where We’re Going Past experiments with licensed games caused credibility issues. But gamers are forgiving. Gamers are eager for more games like 1997’s GoldenEye — even if they don’t align with movie/TV release timing.

THE ONE THAT BROKE THE CURSE

Great developer + no simultaneous release Blair Witch Marvel’s Ultimate Alliance 3 Marvel’s Avengers Stranger Things 3: The Game John Wick Hex The Dark Crystal: Resistance Tactics Dragon Ball Z: Kakarot LEGO Star Wars: The Skywalker SAGA Star Wars Fallen Order Gears 5: Terminator Dark Fate Content Pack Ghost Recon Breakpoint Terminator DLC Many promising licensed games were announced at E3 — from big name developers, and also smarter, smaller-sized DLC/crossover integrations to capitalize on upcoming movie openings. ANOTHER ONE THAT BROKE THE CURSE

Conversely, we’re also seeing much renewed interest in games-to-film/ TV adaptations “Gamers are ready and waiting for good and accurate adaptations of STREAM TV SHOWS ONLINE the franchises they love! And gamers are super-consumers! Check these stats from our new Segmentation Study.” - Peer 35% Once a day or more 22% TV ATTITUDES 27% TOP 2 BOX AGREEMENT A few times a week 23% I will stream an entire series - TOTAL GAMERS - NON-GAMERS 61% 37% online as soon as GAMERS NON-GAMERS it’s available TOP STREAMING PROVIDERS I regularly watch TV shows the day/ 55% 34% date the episode GAMERS NON-GAMERS 74% 74% 49% 39% is released

Gamers stream shows more frequently and are more likely to binge

PP11. How often do you stream shows online? E9. How much do you agree or disagree with each of the following statements? E2. Which of the following services do you currently have an account with and use? All eyes are on Netflix to prove that games can be done justice on TV.

A new start for video game adaptions?

…look for more show announcements soon! GENERATIONThe next console generation is officially coming. 9

The gap between each new generation of consoles has been steadily getting longer. While gamers waited 5 years between PlayStation and PlayStation 2, and…

Gen6 Gen7 1998 1999 2000 2001 2002 2003 2004 2005 2006

5 Years GameCube 6 Years Wii 5 Years PS2 6 Years PS3 Xbox 4 Years Xbox 360 3 Years Dreamcast …Xbox fans had to hold out eight years to get their hands on Xbox one

Gen8 2007 2008 2009 2010 2011 2012 2013 2014 2015

6 Years Wii U 7 Years PS4 8 Years Xbox One

We now know when Generation 9 will get here… NEXT-GEN CONSOLES Sony and Microsoft took a page out of Apple’s playbook and have been iterating on their hardware with half-step releases, such as PS4 Pro and Xbox One X. But the next, full generation of traditional, not-exclusively-streaming boxes will arrive holiday 2020 Gen9 2013 2014 2015 2016 2017 2018 2019 2020 2021

4 1/2 Years Switch PS4 7 Years PS5 Xbox One 7 Years Scarlett iPhone 5S/C iPhone 6/+ iPhone 6S/+ iPhone 7/SE iPhone 8/X iPhone XS/XR … … …

2020: Generation 9 XBOXMicrosoft made it official 4 at= E3 in SCARLETTJune.

Scarlett is a codename. The console’s final name has yet to be revealed. Xbox has some ground to make up. PlayStation’s brand and install base are big. We asked 40,000 gamers before E3: Which company do you want a next-gen console from the most?

Sony 52.8

Microsoft 28.5

Nintendo 14.2

Google 4.4

40,000 respondents, IGN homepage Which is why Xbox rolled out the Big Gun: Halo Infinite will be a Scarlett launch title.

]

One thing is clear: the next generation of consoles will not be streaming-only. SUBSCRIBE FOR GAMES

We may see a shift from purchase to subscription in the next console gen. “SGOD” SERVICES EXPAND EA, Xbox, and PlayStation already offer expanded game download (and limited streaming) services. Sony’s is focused on older games (for a discounted $70 per year right now), Microsoft’s charges $9.99 a month for new games, and EA provides access to its catalog for just $4.99. …but there’s more.

At E3, Ubi announced Uplay+. 100+ PC games, $14.99 a month.

And Ubisoft’s service even works on Stadia! …and Apple got in on subscription gaming.

Gamers can get iOS-exclusive games for just $4.99 per month. …and one more (of many to come):

Xbox Game Pass Ultimate: $14.99 for 100+ Xbox, 100+ PC games. THE STREAM CLUB But it’s not just about subscription. Some services fundamentally change the delivery method: streaming. Are gamers ready? CONSOLE WARS: EPISODE IX TUNE IN FOR THE NEXT CHAPTER IN 2020 Thank you! Peer Schneider, IGN Chief Content Officer, peer@ign.com