Jon Peddie Research The Jon PeddieThe Research Market Gaming PressConference . All GamingHardware

Jon Peddie Research The Gaming Hardware MarketThe GamingHardware From handhelds to simulators to handhelds From

Jon Peddie Research Jon Peddie Research Conferences Product benchmarking and testing Bi andmarketresearch Consulting reality Visualization,of Graphics, emphasis and onFocus and forms - weekly report

, various Digital Technologyvarious Digital Market Studies Chasing Pixels, Finding Visual Magic Visual Finding Pixels, Chasing -

Advisor to industry investors and industry leaders to Advisor

Jon Peddie Research Semiconductor Fabrication

Processor Image sensor Image

Processor Front Receiver(s - end )

& peripheral &peripheral services Communications System Memory Application Processor Input Standards Drivers DVD CPU OS

Processor Processor Audio Video

Local Memory Local

Processor Graphics

“Whatever influences a pixel” a influences “Whatever

gathering,limitedand tracking General interest,General information Jon PeddieJon Research expertise, and trackingexpertise, Display Primaryinterest,

Jon Peddie Research . . . . . Introduceforpointsdiscussion talking Q&A and Thoughts speculationson the future Market and size growth The gamingplatforms computerofhistory graphics Brief

Agenda –

Why are we here?

Jon Peddie Research . . . loose confederation of hardware confederationloosehardware of and software companies Actually Depending on whoyou ask, 1999. 1997 to started? When do you thinkthegame developer conference

it was was 1993 itand was How long? the

GamePC

Consortium, a a Consortium,

Jon Peddie Research second, on a second, 100,000 triangles,100,000 30a times In 1996 the best the industry the industry In 1996the best could do was couldwas doan imageof Lora Croft from 1996Croft from 640480 x Look HowFar We Have Come screen ,screen

By 100million 2013 it was possible to generate over a possible2013 was toover generateit second on screens greater than than greater secondscreens HD on Lora polygons Croft fromCroft at 60 to 120a to 60 timesat 2013

Jon Peddie Research History of Computer It wasn’tIt path asmooth Graphics

1950 2000 1990 1980 1970 s s to 1960 s s s s s 3 D on Mobile Mobile D on Phones Phones Tablets Introduction of the the of Introduction & 3 VGA to VGA GPUs DVGA PC Introduction of of Introduction games on the PC the on games Developments in in Conics Developments ( Ray Surface patches Surface Modeling Developments in Rendering and and in Rendering Developments - Tracing Photorealism 3 D 3 , D in the movies the D in The SAGE terminal SAGE The Finite Element Modeling Element Finite Photorealism , Texture Mapping Texture , NURBS , Physics , Bezier curves Bezier , Simulators and early animation animation early and Simulators lines , AI , , Voxels Solid Solid , 3 D on Min Computer Computer Min D on Handheld Handheld consoles 3 D on mainframes on D Wireframe CAD Wireframe CAD Wireframe 3 Workstations D on D on & 3 D on game consoles game D on 2 3 8 nd gen gen nd rd gen gen rd th gen gen th consoles consoles consoles 3 3 3 D game D game D game D game D game game D Jon Peddie Research How

did

we get here?

Jon Peddie Research From From this 1945 ~

Jon Peddie Research And this

Jon Peddie Research 1945

Jon Peddie Research Which Which would becarriedby this…

Jon Peddie Research First Sovietintercontinental bomber –

TU85 1949

Jon Peddie Research Led to this

Jon Peddie Research First computer graphic terminal for 1955 ~ SAGE for terminal graphic computer First

Jon Peddie Research Which created the foundations forthis

Jon Peddie Research 2013

Jon Peddie Research Jon Peddie Research game a Kathleen2007.Maher it make of to technology, out a tries have you someone as soon As

–

VR VR 1960 1936 2000 1980 1970 1940 VR 2 Personal Computers Personal Mobile Computers Mobile Microcomputers Minicomputers Relay mainframes Computers - based based Nukem Nukem Integrated Integrated Test Drive Test Transistors ( Vacuum Vacuum Adventure Adventure Circuits 3 processors ( Tubes Zuse Z Zuse 1982 D ( Micro 1977 ) Duke Duke ( 1996 ) ) - 1 ) Tic Tac Toe Toe Tac Tic NIM ( program chess Computer SpaceWar SpaceWar 1947 Tetris Tetris EvolutionComputer of game Arcade Machines Arcade Handheld Game Game Handheld Game Consoles Game ( 1951 ) Consoles ( 1994 ) ( 1962 ( 1952 ) machines ) ) Atari Atari Mattel Mattel Casino Poker Casino Fairchild Channel F F Channel Fairchild - Odyssey

Computer Space Space Computer – Football

( Football Football 1976 , and Pro and ) , Space Space ( 1976 - ( 1971 ) ) Jon Peddie Research

GPU GFLOPS 100000 10000 1000 100 0.1 10 1 2001

2002 Mobile Console PCGPU OGL ES ES OGL 1.0 2003 OGL ES ES OGL 1.1

2004 Are mobileAre catching devicesconsoles andPCs? up to

2005

2006 PS4 OGL ES ES OGL 2.0

2007

2008 GPU GPU GFLOPS 2009 2010 Only software holdsOnlysoftware usback serves allplatformslaw Moore’s such Thereis no thing up ascatching 2011 OGL ES ES OGL 3.0

2012

2013 PS4 OGL ES ES OGL 3.1

2014 2015

2016

2017

2018

Jon Peddie Research (except maybe arcade) maybe (except n if most, have Gamers not eitherThese are ot all theseof ot machines - or.

Handhelds 3%

2014 Gaming Market Gaming 2014 Hardware Location Location based 6% Tablets 11%

Smart Smart Phones

23%

Peripherals

8% Consoles Android Android 0.07%

Consoles

16%

33% PC

$67Billion GamingHardware Market2014

Jon Peddie Research

High

NB NB 5% - end

dGPU dGPU NB Mainsream

PC Units Market PC Units 2014 Share 8% $22Billion, 5%CAGR

iGPU Mainstream iGPU Mainstream NB

iGPU Mainstream Mainstream DT iGPU 42% 34%

Mainstream

dGPU dGPU DT

7%

Enthusiast Enthusiast DT Performance Performance DT 1%

3%

Jon Peddie Research Gaming Software Market $26 Billion

Jon Peddie Research PeripheralGaming PC Market $6b Speaker Speaker Systems 22% Keyboards

19%

25% Mice Wired Headsets Wired

19%

Wireless Headsets Wireless Motion Motion tracking Head Tracking / Driving Driving Controllers Gamepad/Arcade Gamepad/Arcade 1% 6% Controllers

Flight Controllers Flight

3% 3%

1.5% CAGR

2%

Jon Peddie Research Traditional TV - based Console basedConsole Gaming Machines Console Console Units Market 2014 Share Microsoft 38% Nintendo

15%

47% Sony

-

$11B 3% CAGR $11B

Jon Peddie Research Traditional Handheld Gaming Consoles $2b Handheld Units Handheld Market 2014 Share Nintendo 67%

33% Sony

- 2%CAGR

Jon Peddie Research Powered by Android by Powered New Gaming Hardware Devices

Jon Peddie Research New Handheld Gaming New 50% CAGR Handheld Machines m $33 $50 $60 $70 $80 $90 $10 $20 $30 $40 $0 2013 2014 Market value ($M) 2015 2016

2017 2018

Jon Peddie Research The Shield We define Android Android designedTV’s.to play as anyon devicegamesconsoles micro is really maker. apath - consoles will havetheir

niche, larger Android Android Consoles opportunityis on large screens usinglarge agamepadto play.

Jon Peddie Research Android Android Consoles Shield ConsoleShield TabletShield +Controller Shield Razer MadCatz plus Android TV controller Gamestick Gamepop Controller TV + Fire Amazon

ForgeTV Portable

Mojo

Jon Peddie Research Check your pocket pocket your Check Machines Other Handheld Gaming –

you have one have you

Jon Peddie Research 84.9% of 700 the grossing top were games ( were Media Research)Media apps

AveHorizons) 50% games(Mediaplay phone users

Jon Peddie Research 43% increase over mobile game revenues recorded for 2013.for recorded revenues mobile game over increase 43% $21.7totalis from billion billion.new to $25 Thea forecast global revenueits 2014 thattablets andsmartphones time much so spending are Consumers Mobile Games Newzoo , a video game research firm, has had to firm, hashadraise researchgame a video , — and money

— playing games games on playing

Jon Peddie Research . . . . Smartphone gaming market $15 CAGR billion5% worth Assume game the purchases playinginfluencedof 5% smartphones1 billion shipped in 2014 The Assumptionson Gaming Market Value average average pricesellinga smartphone of

is $297 is

Jon Peddie Research . . . . Tablet Assume game playing Tablets 260 million The average pricesellinga of Assumptionson GamingMarket Value gaming marketworth shipped 2014 in influenced 10% $7.6 billion CAGR CAGR 4% $7.6 billion tablet is$294 tablet

of the of

purchased

Jon Peddie Research . 16.5% in 2015, 16.5% in2015, Surpassing $3 to According eMarketer Mobile Games , MobileGame Revenues, toGrow Billion.

Jon Peddie Research Lisberger about worrywhether video games are forus,” Steve good dirty air,dirty water, and 9,000 nuclear warheads, but they oldergeneration has no qualms about “The leaving uswith and early 1980s inA boom theBayarea and elsewherein thelate1970s

( Tron

director) –

and and then banned. Game Arcades

Jon Peddie Research Location Based Does not includeDoes CAGR 2% CAGR $4billion G amingCafes

Jon Peddie Research Apple, Apple, and above Hulu, Facebook, and Amazon. Internettraffic forTwitchexample, 1.8 peak forpercent of accounted U.S. huge fora Webamount of In theweek traffic.ending 3, Feb. per visitorshas and than 100 monthmore millionaccounts In August, Amazone –

ranking fourth after Netflix, Google and Googleand after ranking Netflix, fourth

acquired Twitchacquired $970Millionfor Twitch

-

CASH

Jon Peddie Research . . . . . Moore’s law servesall platforms Games willbe cross New platformsadd new will players Gamingsoftware market $26 Billion morethan Syria’s GNP, and countries other75 The gaminghardware markethuge is Summary - platform -

So What?

-

$67 $67 Billion

-

Jon Peddie Research Be seeing seeing Be you Chasing pixels –

finding finding

Visual Magic Visual

[email protected] [email protected] [email protected]

Jon Peddie Research Time Time to raffle offsome prizes Sponsors