An Analysis of Mobile Gaming Market Trends and Top Titles in the US

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Table of Contents

03 - Market Overview: Worldwide 15 - Market Overview: United States 21 - Market Overview: Europe 32 - Market Overview: Asia 43 - Market Forecast 49 - Game Genre Trends 57 - Monetization Trends 64 - Advertising Trends 73 - Conclusion Market Overview: Worldwide — An Overview of Mobile Gaming Worldwide © 2021 Sensor Tower Inc. - All Rights Reserved

Global Game Revenue Surged During the Pandemic Worldwide quarterly consumer spending in mobile games on the App Store and Google Play

App Store Google Play $25B Mobile game revenue spiked during the start of the COVID-19 pandemic, seeing its largest year- +25% over-year growth in Q2 2020 at 33 percent. Games earned more than $20 billion globally for $20B the first time that quarter. +18% $9.2B $8.4B $8.6B $8.1B Strong revenue growth continued in the +16% $15B following quarters. The 25 percent Y/Y growth in $7.0B Q1 2021 easily outpaced the growth during the $6.5B $6.5B $6.0B $6.1B prior two years. $5.7B $5.4B $5.2B $5.3B $10B

$13.0B $12.1B $12.4B $12.4B $10.8B $5B $10.0B $9.9B $9.0B $9.1B $7.9B $7.8B $8.2B $8.4B

Note: $0 Revenue figures are gross revenue (including the cut taken by Apple or Google).

Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

Genshin Impact Shakes Up the Global Revenue Ranking and Eyes Tencent’s Top Titles Top mobile games by worldwide revenue on the App Store and Google Play

2018 2019 2020 1Q21

Honor of Kings Honor of Kings PUBG Mobile +1 PUBG Mobile 1 Tencent 1 Tencent - 1 Tencent 1 Tencent -

Monster Strike PUBG Mobile NEW Honor of Kings -1 Honor of Kings 2 Mixi 2 Tencent 2 Tencent 2 Tencent -

Fate/Grand Order Fate/Grand Order - Pokémon GO +3 Genshin Impact NEW 3 Sony 3 Sony 3 Niantic 3 miHoYo

Candy Crush Saga Candy Crush Saga - Coin Master NEW Pokémon GO 4 King 4 King 4 Moon Active 4 Niantic -1

LineageM Monster Strike -3 Roblox NEW Roblox - 5 NCSOFT 5 Mixi 5 Roblox 5 Roblox

Pokémon GO Pokémon GO - Candy Crush Saga -2 Coin Master -2 6 Niantic 6 Niantic 6 King 6 Moon Active

Fantasy WW Journey Fantasy WW Journey - Monster Strike -2 Candy Crush Saga -1 7 NetEase 7 NetEase 7 Mixi 7 King

DBZ Dokkan Battle LineageM -3 Rise of Kingdoms NEW Garena Free Fire NEW 8 BANDAI NAMCO 8 NCSOFT 8 Lilith Games 8 Garena

Clash of Clans Clash of Clans - Gardenscapes NEW Fate/Grand Order +1 9 Supercell 9 Supercell 9 Playrix 9 Sony

Clash Royale Homescapes NEW Fate/Grand Order -7 Rise of Kingdoms -2 10 Supercell 10 Playrix 10 Sony 10 Lilith Games

The U.S. Remains the Top Market for Mobile Game Spending Top countries by mobile game spending, App Store and Google Play

The U.S. remains the top market for mobile U.S. Japan China South Korea Taiwan games having outpaced Japan in Q2 2019, and $7B surpassed $6 billion in revenue during Q1 2021.

U.S. COVID-19 boosted player spending 35 percent Q/Q $6B +34% Y/Y in Q2 2020. Although revenue fell slightly over the next two quarters, growth picked back up again in Japan $5B +35% Y/Y Q1 2021.

Japan and China were the next largest markets, $4B China +6% Y/Y well ahead of any other countries. Japan’s revenue climbed 35 percent Y/Y in Q1 2021, while $3B China’s total in particularly impressive considering Google Play is not available in the country.

$2B South Korea +16% Y/Y $1B Taiwan +23% Y/Y Note: Revenue figures are gross revenue (including the cut taken by $0 Apple or Google). China numbers only include the App Store as Google Play is not available there. Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

The U.S. is Also Gaining Market Share for Revenue Market share for top countries by mobile game spending, App Store and Google Play

U.S. Japan China South Korea Taiwan Other The U.S. passed Japan to become the largest mobile games market in 2019. Its market share has continued to grow since, reaching 28 percent 23% 26% 21% 7% 2% 21% 2017 in 2020.

Countries outside of the top five have also slowly gained market share, suggesting that mobile

24% 26% 19% 6% 3% 22% game publishers have turned to less-tapped 2018 markets with higher growth potential.

26% 23% 20% 6% 3% 22% 2019

28% 22% 18% 7% 3% 23% Note: 2020 Revenue figures are gross revenue (including the cut taken by Apple or Google). China numbers only include the App Store as Google Play is not available there. 0% 25% 50% 75% 100%

Spending Grew by More than $1 Billion in the U.S. and Japan Top countries by Y/Y mobile game spending growth in Q1 2021, App Store and Google Play

Q1 2020 Q1 2021 $7B Consumer spending in mobile games in the U.S. Note: grew by more than $1.5 billion Y/Y in Q1 2021. +34% Top growing countries are determined This growth was more than all but Japan and $6B and sorted by the difference in gross revenue in Q1 2021 vs. Q1 2020, not China earned in total during the quarter. +35% percentage growth. $5B The top countries by growth included four of the top five countries by overall revenue. The one exception was Germany, the top country in +6% $4B Europe, with 33 percent Y/Y growth to nearly $600 million.

$3B $6.1B $5.2B $4.6B $2B $3.9B $3.8B $3.6B +16%

$1B +33% $1.3B $1.5B Note: $445M $593M $0 Revenue figures are gross revenue (including the cut taken by Apple or Google). China numbers only include the App Store as Google Play is not available there. U.S. Japan China South Korea Germany

Mobile Game Adoption Soared 39% Amid the Pandemic Worldwide quarterly downloads of mobile games on the App Store and Google Play

App Store Google Play 16B The surge in mobile game downloads preceded

+5% that for revenue, with big gains starting in Q1 14B 2020 right at the beginning of the pandemic. Consumers turned to mobile games for +39% entertainment during office and school closures. 12B

+1% Although mobile game adoption has slowed 10B since the peak in Q2 2020, it remained well 12.4B above pre-pandemic levels. This suggests that 10.4B 11.8B 11.8B 8B 11.5B some of the gains may persist even as countries begin to re-open in 2021. 8.7B 8.8B 8.2B 6B 7.1B 7.8B 7.5B 7.2B 7.2B

2B 3.0B 2.7B 2.4B 2.1B 2.3B 2.1B 2.2B 2.2B 2.4B 2.3B 2.3B 2.1B 2.3B

Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

Hypercasual and Shooter Titles Frequent the Top 10 for Downloads

Top mobile games by worldwide downloads on the App Store and Google Play Hypercasual Shooter

2018 2019 2020 1Q21

Helix Jump PUBG Mobile Among Us NEW Join Clash 3D NEW 1 Voodoo 1 Tencent +1 1 InnerSloth 1 Supersonic Studios

PUBG Mobile Garena Free Fire NEW Garena Free Fire - Among Us 2 Tencent 2 Garena 2 Garena 2 InnerSloth -1

Subway Surfers Subway Surfers - Subway Surfers - DOP 2 NEW 3 Sybo Games 3 Sybo Games 3 Sybo Games 3 SayGames

Garena Free Fire Fun Race 3D NEW PUBG Mobile -3 Phone Case DIY NEW 4 Garena 4 Good Job Games 4 Tencent 4 Crazy Labs

Rise Up Color Bump 3D NEW Hunter Assassin NEW Garena Free Fire -3 5 Serkan Ozyilmaz 5 Good Job Games 5 Ruby Game Studio 5 Garena

Love Balls Call of Duty: Mobile NEW Gardenscapes NEW High Heels NEW 6 Lion Studios 6 Activision Blizzard 6 Playrix 6 Zynga

Candy Crush Saga My Talking Tom 2 NEW Brain Out NEW Subway Surfers -4 7 King 7 Outfit7 7 Focus Apps 7 Sybo Games

Sniper 3D Run Race 3D NEW Ludo King NEW Water Sort Puzzle NEW 8 Wildlife Studios 8 Good Job Games 8 Gametion 8 Ice Global

Kick the Buddy Sand Balls NEW Tiles Hop NEW Project Makeover NEW 9 Playgendary 9 SayGames 9 Amanotes 9 Magic Tavern

My Talking Tom Homescapes NEW Homescapes - Giant Rush NEW 10 Outfit7 10 Playrix 10 Playrix 10 Tapnation

India’s Mobile Games Market Pulled Away from the Pack Top countries by mobile game downloads, App Store and Google Play

As smartphone penetration in India increased in India U.S. Brazil Indonesia Russia recent years, it has become the largest market 3B for mobile game downloads. COVID-19 boosted game adoption in the market by 64 percent from 1.7 billion in Q1 2020 to 2.9 billion in Q3 2020.

India +28% Y/Y Emerging markets such as India, Brazil, and 2B Russia achieved double-digit year-over-year download growth in Q1 2021. Meanwhile, relatively mature mobile markets like the U.S. had lower growth. U.S. -7% Y/Y Brazil +10% Y/Y 1B Indonesia +6% Y/Y Russia +16% Y/Y

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

India Accounted for 12 Percent of Game Downloads in 2020 Market share for top countries by mobile game downloads, App Store and Google Play

India U.S. Brazil Indonesia Russia Other India became the only country to gain more than 10 percent of the global game install market since 2017 in 2020, reaching 12 percent of 8% 9% 6% 3% 4% 70% 2017 downloads. The U.S. was next with 7 percent, followed by Brazil at 6 percent.

While 77 percent of mobile game revenue in 2020

9% 8% 5% 3% 4% 70% was concentrated among the five largest 2018 markets, the top five countries by downloads combined for only 32 percent of the installs. This demonstrates how getting users to spend in mobile games remains more challenging than 9% 8% 5% 3% 4% 71% new user adoption in most markets. 2019

12% 7% 6% 4% 4% 68% 2020

0% 25% 50% 75% 100%

Google Play Drove Download Growth in Top Markets Top countries by Y/Y mobile game download growth in Q1 2021, App Store and Google Play

Q1 2020 Q1 2021 2.5B Game downloads in India climbed by nearly half +28% Note: a billion year-over-year in Q1 2021. Indonesia, Top growing countries are determined and sorted by the difference in Mexico, and Brazil also saw downloads grow by downloads in Q1 2021 vs. Q1 2020, not more than 100 million. 2.0B percentage growth. Each of the top five countries by download growth had at least 90 percent of their installs 1.5B from Google Play, with less than 10 percent from the App Store. This reflected the trends on each +10% platform, as Google Play installs climbed 66 2.2B percent between Q1 2018 and Q1 2021, while App 1.0B Store download growth was flat over this period. 1.7B +26%

+23% 1.2B 500M 1.1B +31% 790M 628M 604M 493M 351M 269M 0

India Indonesia Mexico Brazil Philippines

Key Takeaways: Worldwide

1. The mobile games market is booming, as game revenue growth accelerated during the pandemic. Consumer spending surpassed $22 billion in Q1 2021, representing an all-time high and 25 percent year-over-year growth.

2. Mobile game downloads also surged during the pandemic. This was primarily led by developing markets like India and Brazil.

3. While more than two-thirds of mobile game revenue comes from just three countries (the U.S., Japan, and China), growth in some smaller markets in Europe and Southeast Asia have exceeded that in these largest markets. It is unlikely that any other country will compete with the top three anytime soon. However, these fast-growing alternatives will provide opportunities for game developers looking to expand to new regions.

U.S. Game Revenue Growth Outpaced the Global Rate U.S. quarterly gross revenue from mobile games on the App Store and Google Play

App Store Google Play $7B U.S. mobile game consumer spending surpassed $6 billion for only the second time in +34% Q1 2021, just below the $6.1 billion spent in Q2 $6B 2020. There was a notable increase at the start of the pandemic that persisted into 2021. $5B $2.6B +22% $2.8B The U.S. is still the top market for mobile $2.6B $2.6B gaming. Its revenue has more than doubled $4B +28% since the start of 2018, higher growth than the $1.9B $1.9B worldwide rate. $1.8B $1.8B $3B $1.7B $1.6B $1.4B $1.3B $1.2B $2B $3.5B $3.3B $3.2B $3.3B $2.6B $2.4B $2.2B $2.3B $1B $1.9B $2.0B $2.1B $1.7B $1.8B

Note: $0 Revenue figures are gross revenue (including the cut taken by Apple or Google).

Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

Roblox Became the Top Grossing Mobile Game in the U.S. in 2020 Top mobile games by U.S. revenue on the App Store and Google Play

2018 2019 2020 1Q21

Candy Crush Saga Candy Crush Saga Roblox +1 Roblox 1 King 1 King - 1 Roblox 1 Roblox -

Fortnite Roblox +5 Candy Crush Saga -1 Candy Crush Saga 2 Epic Games 2 Roblox 2 King 2 King -

Pokémon GO Clash of Clans +1 Coin Master +2 Coin Master 3 Niantic 3 Supercell 3 Moon Active 3 Moon Active -

Clash of Clans Pokémon GO -1 Pokémon GO - Lords Mobile NEW 4 Supercell 4 Niantic 4 Niantic 4 IGG

Slotomania Coin Master NEW Gardenscapes NEW Pokémon GO -1 5 Playtika 5 Moon Active 5 Playrix 5 Niantic

Candy Crush Soda Saga Homescapes +4 Homescapes - Homescapes - 6 King 6 Playrix 6 Playrix 6 Playrix

Roblox Slotomania -2 Clash of Clans -4 Garena Free Fire NEW 7 Roblox 7 Playtika 7 Supercell 7 Garena

Toon Blast PUBG Mobile NEW Slotomania -1 Genshin Impact NEW 8 Peak Games 8 Tencent 8 Playtika 8 miHoYo

Final Fantasy XV Fortnite -7 PUBG Mobile -1 Gardenscapes -4 9 Epic Action 9 Epic Games 9 Tencent 9 Playrix

Homescapes Toon Blast -2 Call of Duty: Mobile NEW State of Survival NEW 10 Playrix 10 Peak Games 10 Activision Blizzard 10 FunPlus

U.S. Game Installs Fell Slightly From a Mid-Pandemic Peak U.S. quarterly downloads from mobile games on the App Store and Google Play

App Store Google Play 1.5B While U.S. mobile game revenue remained high -7% +25% each quarter during the pandemic, downloads fell off from their peak in the first few quarters

-2% of the pandemic. Q1 2021 downloads were still slightly higher than the pre-pandemic quarters. 682M 645M 1.0B 628M 596M 640M Download growth had started to pick up in 601M 623M 560M 2019 even before the spread of COVID-19. 544M 606M 560M Quarter-over-quarter growth in Q1 2021 also 588M 546M shows promise for the upcoming quarters.

500M

756M 761M 674M 698M 629M 650M 647M 665M 576M 535M 510M 522M 548M

Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

Top Apps by U.S. Downloads Included Many New Launches Top mobile games by U.S. downloads on the App Store and Google Play

2018 2019 2020 1Q21

Helix Jump Call of Duty: Mobile NEW Among Us NEW Project Makeover NEW 1 Voodoo 1 Activision Blizzard 1 InnerSloth 1 Magic Tavern

Fortnite Color Bump 3D NEW Roblox +3 High Heels NEW 2 Epic Games 2 Good Job Games 2 Roblox 2 Zynga

PUBG Mobile Aquapark.io NEW Call of Duty: Mobile -2 Among Us 3 Tencent 3 Voodoo 3 Activision Blizzard 3 InnerSloth -2

Rise Up Mario Kart Tour NEW Subway Surfers NEW Roblox 4 Serkan Ozyilmaz 4 Nintendo 4 Sybo Games 4 Roblox -2

Hole.io Roblox +1 Brain Test NEW Crash Bandicoot: OTR NEW 5 Voodoo 5 Roblox 5 Unico Studios 5 King

Roblox Wordscapes NEW Coin Master NEW Blob Runner 3D NEW 6 Roblox 6 PeopleFun 6 Moon Active 6 Zynga

Love Balls Fun Race 3D NEW Magic Tiles 3 NEW Giant Rush NEW 7 Lion Studios 7 Good Job Games 7 Amanotes 7 Tapnation

Happy Glass Run Race 3D NEW Fishdom NEW Sushi Roll 3D NEW 8 Lion Studios 8 Good Job Games 8 Playrix 8 SayGames

Granny Mr Bullet NEW Woodturning NEW Oh God NEW 9 DVloper 9 Lion Studios 9 Voodoo 9 Alictus

Hello Stars Polysphere NEW Tangle Master 3D NEW Call of Duty: Mobile -7 10 Fastone Games 10 Playgendary 10 Zynga 10 Activision Blizzard

Key Takeaways: U.S.

1. The U.S. was already the largest market for mobile games revenue and looks to likely hold this position for the foreseeable future. U.S. game revenue growth has exceeded the worldwide rate for each of the past three years, reaching 34 percent Y/Y growth in Q1 2021.

2. While game revenue continues to climb, expect more modest growth for U.S. mobile game adoption. U.S. game installs have mostly fallen off from the spike seen early in the pandemic. However, steady growth in 2019 plus a strong Q1 2021 suggests that the market may still see steady growth in the coming quarters.

3. The COVID-19 pandemic revealed how games can benefit from having a strong social component. Many multiplayer games like Roblox and Among Us had a breakthrough year in 2020.

The Pandemic Accelerated Europe’s Game Revenue Growth Europe quarterly gross revenue from mobile games on the App Store and Google Play

App Store Google Play $3B Mobile game consumer spending in Europe reached $2.7 billion in Q1 2021, an all-time +27% high and up 27 percent year-over-year. Revenue was boosted during the pandemic, though to a lesser extent than in the U.S. +21%

$2B $1.5B Growth was similar on both platforms, with +11% $1.5B $1.4B App Store revenue up 28 percent Y/Y in Q1 2021 $1.4B compared to 27 percent Y/Y growth on Google $1.2B $1.1B Play. Google Play still took the majority of $1.1B $1.0B spending between the two platforms. $961M $991M $931M $875M $869M $1B

$1.1B $1.2B $1.1B $1.0B $891M $905M $785M $845M $696M $704M $732M $757M $754M Note: $0 Revenue figures are gross revenue (including the cut taken by Apple or Google).

Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

Coin Master Led All Mobile Games In Europe Top mobile games by Europe revenue on the App Store and Google Play

2018 2019 2020 1Q21

Candy Crush Saga Coin Master NEW Coin Master - Coin Master 1 King 1 Moon Active 1 Moon Active 1 Moon Active -

Clash Royale Candy Crush Saga -1 Brawl Stars +2 PUBG Mobile 2 Supercell 2 King 2 Supercell 2 Tencent +1

Gardenscapes Clash of Clans +2 PUBG Mobile NEW Roblox 3 Playrix 3 Supercell 3 Tencent 3 Roblox +3

Pokémon GO Brawl Stars NEW Gardenscapes +1 State of Survival 4 Niantic 4 Supercell 4 Playrix 4 FunPlus +6

Clash of Clans Gardenscapes -2 Pokémon GO +2 Brawl Stars -3 5 Supercell 5 Playrix 5 Niantic 5 Supercell

Lords Mobile Homescapes +1 Roblox NEW Gardenscapes -2 6 IGG 6 Playrix 6 Roblox 6 Playrix

Homescapes Pokémon GO -3 Candy Crush Saga -5 Homescapes +1 7 Playrix 7 Niantic 7 King 7 Playrix

Empires & Puzzles Empires & Puzzles - Homescapes -2 Pokémon GO -3 8 Small Giant Games 8 Small Giant Games 8 Playrix 8 Niantic

Candy Crush Soda Saga Guns of Glory +1 Clash of Clans -6 Candy Crush Saga -2 9 King 9 FunPlus 9 Supercell 9 King

Guns of Glory Clash Royale -8 State of Survival NEW Lords Mobile NEW 10 FunPlus 10 Supercell 10 FunPlus 10 IGG

Germany Led Strong Revenue Growth in Europe Top European countries by mobile game revenue, App Store and Google Play

The mobile games market in Germany is Germany U.K. France Russia Italy booming, with user spending climbing from less $600M Germany +33% Y/Y than $250 million in Q1 2017 to nearly $600 million in Q1 2021. It had a compound annual growth rate (CAGR) of 25 percent over that period, $500M U.K. +32% Y/Y higher growth than any of the other top countries in Europe. $400M The spikes in revenue during early lockdowns in response to COVID-19 were particularly evident $300M France +21% Y/Y in the U.K., France, and Italy. All three of these markets saw revenue dip after a strong Q2 2020 before climbing again in Q3. $200M Russia +13% Y/Y Italy +24% Y/Y $100M

Note: Revenue figures are gross revenue (including the cut taken by $0 Apple or Google).

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

Germany and the U.K. Saw Substantial Y/Y Revenue Growth Top European countries by Y/Y game revenue growth in Q1 2021, App Store and Google Play

+33% Q1 2020 Q1 2021 $600M Germany’s mobile game revenue grew by nearly Note: $150 million Y/Y in Q1 2021, followed by the U.K. Top growing countries are determined and sorted by the difference in gross at $118 million and France at $51 million. No $500M +32% revenue in Q1 2021 vs. Q1 2020, not other country in Europe had Y/Y/ growth of more percentage growth. than $40 million.

$400M Switzerland, a smaller market in Europe, was among the top five by revenue growth with 38 percent Y/Y growth. Netherlands just missed the +21% $300M $593M top five with revenue climbing by $26 million Y/Y, or 39 percent. $482M $445M $200M $364M +24% $297M +38% $246M $100M $147M $133M $118M $96M Note: $0 Revenue figures are gross revenue (including the cut taken by « Apple or Google).

Germany United Kingdom France Switzerland Italy

Top Publishers by European Revenue are Based in the Region Top games publishers by European revenue in 2020 on the App Store and Google Play

2019 2020 $700M Two Europe-based publishers had the most revenue in Europe in 2020, with the popular +39% puzzle and decorate developer Playrix and $600M +8% strategy game publisher Supercell leading the way. There were also two Israel-based publishers $500M among the top 10. +7% +8%

+86% Outside of Europe, publishers from the U.S. and +68% $400M China found the most success. Tencent and Roblox revenue in the region each grew by more

$300M $605M than 100 percent. $571M +118% $530M

$463M +21% +31% $435M $432M $447M +128% $413M $200M $398M $387M

$264M $231M $100M $214M $209M $209M $204M $174M $159M $121M $89M Note: $0 Revenue figures are gross revenue (including the cut taken by Apple or Google).

Playrix Supercell Activision Zynga Moon Active FunPlus Tencent Playtika Niantic Roblox Blizzard

European Game Installs Approached the Early Pandemic Peak European quarterly downloads from mobile games on the App Store and Google Play

App Store Google Play 4B Q1 2021 mobile game installs in Europe were down just one percent from their peak in Q1

-1% 2020 at the start of the coronavirus pandemic. Downloads were above the pre-pandemic high +28% for the past five quarters, suggesting that a 3B portion of the pandemic boost will likely persist. +3% The majority of game installs in Europe were from Google Play. Mobile game adoption on 2B 2.6B Google Play reached a new high in Q1 2021, 2.6B 2.7B 2.5B while App Store downloads fell 17 percent Y/Y. 2.2B 2.3B 2.1B 2.0B 1.9B 1.9B 1.9B 1.8B 1.8B

603M 673M 616M 547M 492M 520M 531M 539M 531M 575M 536M 545M 556M

Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

Many Hypercasual and Puzzle Titles Were Among the Top Games in Europe Top mobile games by Europe downloads on the App Store and Google Play

2018 2019 2020 1Q21

Helix Jump Brawl Stars NEW Among Us NEW DOP 2 NEW 1 Voodoo 1 Supercell 1 InnerSloth 1 SayGames

Subway Surfers Color Bump 3D NEW Brawl Stars -1 Among Us 2 Sybo Games 2 Good Job Games 2 Supercell 2 InnerSloth -1

Love Balls Fun Race 3D NEW Gardenscapes NEW Phone Case DIY NEW 3 Lion Studios 3 Good Job Games 3 Playrix 3 Crazy Labs

Rise Up Call of Duty: Mobile NEW Brain Test NEW Join Clash 3D NEW 4 Serkan Ozyilmaz 4 Activision Blizzard 4 Unico Studios 4 Supersonic Studios

PUBG Mobile Homescapes NEW Subway Surfers +5 Project Makeover NEW 5 Tencent 5 Playrix 5 Sybo Games 5 Magic Tavern

Paper.io 2 Run Race 3D NEW Roblox NEW Water Sort Puzzle NEW 6 Voodoo 6 Good Job Games 6 Roblox 6 Ice Global

Knife Hit Sand Balls NEW PUBG Mobile +2 Giant Rush NEW 7 Ubisof 7 SayGames 7 Tencent 7 Tapnation

Kick the Buddy Aquapark.io NEW Brain Out NEW Homescapes +5 8 Playgendary 8 Voodoo 8 Focus Apps 8 Playrix

Happy Glass PUBG Mobile -4 Woodturning NEW Brawl Stars -7 9 Lion Studios 9 Tencent 9 Voodoo 9 Supercell

Granny Subway Surfers -8 Tiles Hop NEW Stacky Dash NEW 10 DVloper 10 Sybo Games 10 Amanotes 10 Supersonic Studios

Russia and Turkey Drove European Game Downloads Top European countries by mobile game downloads, App Store and Google Play

Russia was the top European market in Q1 2021 Russia Turkey U.K. Germany France with 758 million downloads, followed by Turkey 800M Russia at 537 million installs. This was more than double -1% Y/Y the No. 3 market, the U.K., which had 248 million 700M downloads in the quarter.

600M Many of the top countries in Europe saw Turkey downloads decline year-over-year from the early +17% Y/Y 500M pandemic highs in Q1 2020. Turkey was a notable exception with 17 percent Y/Y growth, and 400M Germany also managed to experience slightly positive growth. United Kingdom 300M -7% Y/Y Germany +0.1% Y/Y 200M France -11% Y/Y

100M

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

Turkey Led Download Growth in Europe Top European countries by Y/Y game download growth in 1Q21, App Store and Google Play

Q1 2020 Q1 2021 600M As overall downloads in Europe decreased one Note: +17% percent year-over-year in Q1 2021, most countries Top growing countries are determined and sorted by the difference in saw little to no growth. Turkey was the exception, 500M downloads in Q1 2021 vs. Q1 2020, not with downloads up by nearly 80 million. percentage growth. The rest of the top countries by growth were 400M smaller markets such as Ukraine, Portugal, and Ireland. Only eight countries in Europe had positive Y/Y growth in Q1 2021. 300M 537M

458M +1% 200M

100M 196M 198M +5% +7% +1% 15M 16M 41M 43M 15M 16M 32M 33M 0

Turkey Ukraine Portugal Ireland Greece

Key Takeaways: Europe

1. Mobile game revenue also accelerated in Europe in 2020, reaching a record $2.7 billion in Q1 2021 with 27 percent year-over-year growth. While this Y/Y growth was lower than in the U.S. (which saw a particularly pronounced boost from COVID-19), it was still slightly higher than the global growth rate.

2. Germany, the top European country by mobile game revenue, reached nearly $600 million in consumer spending in Q1 2021. Revenue growth was strong across top European markets, with the U.K., France, and Italy joining Germany with more than 20 percent Y/Y revenue growth in Q1 2021.

3. Mobile game installs in Q1 2021 were just 1 percent lower than their peak from Q1 2020. However, most countries have seen installs decline from this pandemic- fueled peak, with Turkey as a notable exception.

Asia’s Game Revenue Growth is Picking Up Asia’s quarterly gross revenue from mobile games on the App Store and Google Play

App Store Google Play $15B Asia’s mobile game revenue surpassed $12 billion for the first time in Q1 2021, up 21 percent year-over-year Growth has only +21% accelerated in recent years.

+15% Mobile game revenue growth in Asia lagged $10B $4.3B behind that seen in the U.S. and Europe. Still, it +11% $3.9B $4.0B remains by far the largest region for mobile $3.3B $3.5B game revenue, led by China and Japan. $3.1B $3.1B $2.9B $2.8B $2.7B $2.6B $2.7B $2.7B

$5B

$7.8B $7.4B $7.3B $6.7B $6.7B $6.2B $5.7B $5.6B $6.0B $5.1B $4.8B $5.1B $5.2B

Note: $0 Revenue figures are gross revenue (including the cut taken by Apple or Google).

Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

Genshin Impact Emerged as a Top Game in Asia with a Strong Q1 2021 Top mobile games by Asia revenue on the App Store and Google Play

2018 2019 2020 1Q21

Honor of Kings Honor of Kings Honor of Kings - Honor of Kings 1 Tencent 1 Tencent - 1 Tencent 1 Tencent -

Monster Strike Fate/Grand Order +1 PUBG Mobile +1 PUBG Mobile 2 Mixi 2 Sony 2 Tencent 2 Tencent -

Fate/Grand Order PUBG Mobile NEW Monster Strike +1 Genshin Impact NEW 3 Sony 3 Tencent 3 Mixi 3 miHoYo

LineageM Monster Strike -2 Fate/Grand Order -2 LineageM 4 NCSOFT 4 Mixi 4 Sony 4 NCSOFT +2

Fantasy WW Journey Fantasy WW Journey - 3 Kingdoms Tactics NEW Fate/Grand Order -1 5 NetEase 5 NetEase 5 Alibaba 5 Sony

Puzzle & Dragons LineageM -2 LineageM - Monster Strike -3 6 GungHo 6 NCSOFT 6 NCSOFT 6 Mixi

Knives Out Puzzle & Dragons -1 Lineage2M NEW 3 Kingdoms Tactics -2 7 NetEase 7 GungHo 7 NCSOFT 7 Alibaba

QQ Speed Perfect World NEW Fantasy WW Journey -3 Pro Baseball Spirts A NEW 8 Tencent 8 Tencent 8 NetEase 8 Konami

Lineage2 Revolution Knives Out -2 Knives Out - Puzzle & Dragons +4 9 Netmarble 9 NetEase 9 NetEase 9 GungHo

DBZ Dokkan Battle DBZ Dokkan Battle - AFK Arena NEW Fantasy WW Journey -2 10 Bandai Namco 10 Bandai Namco 10 Lilith Games 10 NetEase

Japan’s Game Revenue Surpassed $5 Billion in Q1 2021 Top Asian countries by mobile game revenue, App Store and Google Play

Four of the top five countries globally by mobile Japan China South Korea Taiwan Hong Kong game revenue are in Asia, with the U.S. as the only $6B exception. Japan surpassed $5 billion in Q1 2021, followed by China at $3.9 billion and South Japan $5B +35% Y/Y Korea at $1.5 billion.

While China’s mobile game adoption has

$4B China decreased in recent years, revenue has +6% Y/Y continued to grow. Note that China’s revenue also only includes the App Store, as Google Play is not $3B available in the country.

$2B

South Korea +16% Y/Y $1B Taiwan +23% Y/Y Hong Kong Note: +23% Y/Y Revenue figures are gross revenue (including the cut taken by $0 Apple or Google). China numbers only include the App Store as Google Play is not available there. Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

Japan Saw 35 Percent Y/Y Revenue Growth in Q1 2021 Top Asian countries by Y/Y game revenue growth in Q1 2021, App Store and Google Play

Q1 2020 Q1 2021 $6B Japan’s game revenue increased by more than Note: $1.3 billion in Q1 2021 vs. Q1 2020, an increase of +35% Top growing countries are determined and sorted by the difference in gross 35 percent. China, the No. 2 country by growth, $5B revenue in Q1 2021 vs. Q1 2020, not was well behind with year-over-year growth of percentage growth. $236 million.

+6% $4B Thailand was the No. 5 country in Asia by growth, with user spending up nearly 50 percent Y/Y. Spending surpassed $200 million in the $3B country for the first time, more than double the

$5.2B total from just two years prior in Q1 2019.

$2B $3.8B $3.9B $3.6B +16%

$1B +23% $1.5B $1.3B +49% $511M $630M $137M $137M $204M $0

Japan China South Korea Taiwan Thailand

Half of the Top SEA Publishers are Based in China Top games publishers by SEA revenue in 2020 on the App Store and Google Play

2019 2020 $350M Singapore-based Garena remained the dominant

+37% publisher in Southeast Asia (SEA) with more than double the revenue of the next closest publisher $300M (Moonton). It had strong revenue growth at 37 percent year-over-year. $250M China represented half of the top 10 publishers by revenue in SEA in 2020. Interestingly, half of $200M the top 10 publishers in SEA were also among the top 10 in Europe: Tencent, Moon Active, FunPlus, $314M $150M +40% Playrix, and Supercell.

$229M +99% $100M +36%

$143M +103% +765% +155% +48% +440% $102M +1% $50M $97M $89M $66M $59M $49M $56M $54M $48M $47M $40M $41M $29M $6M $33M $9M Note: $6M $21M $9M $0 Revenue figures are gross revenue (including the cut taken by Apple or Google).

Garena Moonton Lilith Games Tencent Netmarble Moon Active FunPlus Playrix miHoYo Supercell

Asia’s Mobile Game Adoption Surged in 2020 Asia’s quarterly downloads from mobile games on the App Store and Google Play

App Store Google Play 7B Quarterly mobile game downloads in Asia

+7% surpassed 5 billion for the first time in Q1 2020, and then climbed to 6.3 billion in Q2 2020. 6B Although installs dropped off a bit from this peak, they still surpassed 5.5 billion for each of 5B +46% the next three quarters.

-4% The vast majority of game installs in Asia came 4B from Google Play, driven largely by countries 5.4B 5.3B like India and Indonesia where Android phones 4.1B 4.9B 3B 4.9B are much more popular than iPhones. About 86 percent of the downloads in Q1 2021 were from 3.4B 3.3B 3.4B 3.5B 2.6B 2.8B Google Play, up from 71 percent in Q1 2018. 2.7B 2.8B 2B

1.1B 1.2B 866M 954M 822M 893M 904M 755M 790M 746M 745M 613M 762M 0

Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

Top Battle Royale Games Were Popular in Asia Top mobile games by Asia downloads on the App Store and Google Play

2018 2019 2020 1Q21

PUBG Mobile PUBG Mobile Ludo King +2 Join Clash 3D NEW 1 Tencent 1 Tencent - 1 Gametion 1 Supersonic Studios

Ludo King Garena Free Fire +3 Garena Free Fire - Ludo King 2 Gametion 2 Garena 2 Garena 2 Gametion -1

Subway Surfers Ludo King -1 PUBG Mobile -2 Garena Free Fire 3 Sybo Games 3 Gametion 3 Tencent 3 Garena -1

Helix Jump Subway Surfers -1 Hunter Assassin NEW Bubble Shooter NEW 4 Voodoo 4 Sybo Games 4 Ruby Games 4 Miniclip

Mobile Legends: Bang Bang Garena Free Fire +1 Subway Surfers -1 Subway Princess Runner NEW 5 Garena 5 Moonton 5 Sybo Games 5 Ivy

Mobile Legends: Bang Bang Fun Race 3D NEW Brain Out NEW Subway Surfers -1 6 Moonton 6 Good Job Games 6 Focus Apps 6 Sybo Games

Temple Run 2 My Talking Tom 2 NEW Worms Zone.io NEW Worms Zone.io - 7 Imangi Studios 7 Outfit7 7 Azur Interactive 7 Azur Interactive

Candy Crush Saga Temple Run 2 -1 Carrom Pool +1 Candy Crush Saga +4 8 King 8 Imangi Studios 8 Miniclip 8 King

Honor of Kings Carrom Pool NEW Gardenscapes NEW Phone Case DIY NEW 9 Tencent 9 Miniclip 9 Playrix 9 Crazy Labs

My Talking Tom Candy Crush Saga -2 Among Us NEW PUBG Mobile -7 10 Outfit7 10 King 10 InnerSloth 10 Tencent

India’s Game Installs Dwarfed All Other Markets Top Asian countries by mobile game downloads, App Store and Google Play

India is the largest mobile games market by India Indonesia China Vietnam Philippines downloads in the world. It has seen rapid growth 3B since the start of 2019, climbing from 1.2 billion in Q1 2019 to nearly 2.9 billion in Q3 2020.

Indonesia has also experienced strong growth of India +28% Y/Y 26 percent year-over-year in Q1 2021. China’s 2B installs have declined since 2017, with a surge at the start of COVID-19 in Q1 2020 as an exception. However, China’s mobile game user spending has continued to climb despite its decline in adoption.

1B Indonesia +26% Y/Y China -44% Y/Y Vietnam -21% Y/Y Philippines Note: +31% Y/Y China numbers only include the App Store as Google Play is not 0 available there.

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

India and Indonesia Top Install Growth in Asia Top Asian countries by Y/Y game download growth in Q1 2021, App Store and Google Play

Q1 2020 Q1 2021 2.5B Mobile game installs in India have grown by +28% Note: roughly half a billion year-over-year in Q1 2021. Top growing countries are determined and sorted by the difference in Indonesia was the only other country with growth downloads in Q1 2021 vs. Q1 2020, not of more than 100 million downloads. 2.0B percentage growth. Pakistan, the No. 7 country in Asia by downloads in Q1 2021, was No. 4 by Y/Y growth that quarter. 1.5B Kazakhstan, the 10th largest market in Asia by downloads, was another notable country with strong Y/Y growth. 2.2B 1.0B 1.7B +26%

500M +31% 790M 628M +41% +26% 351M 269M 232M 164M 114M 144M 0

India Indonesia Philippines Pakistan Kazakhstan

Key Takeaways: Asia

1. Asia is the top region for mobile games. Mobile game consumer spending surpassed $12 billion there for the first time in Q1 2021, an increase of 21 percent year-over-year. Asia’s mobile game revenue growth accelerated during COVID-19, similar to the pattern seen in other regions.

2. Four of the top five countries by mobile game revenue are in Asia, including Japan, China, and South Korea. Japan has seen particularly strong growth in recent quarters, as its revenue has climbed 35 percent Y/Y in Q1 2021.

3. India is the primary driver of mobile game download trends in Asia, reaching nearly 3 billion installs in Q3 2020. Some other countries including Indonesia, Philippines, and Pakistan have also seen really strong download growth.

Consumer Spending in Mobile Games Will Reach $117 Billion by 2023 Three-year consumer spending forecast for the Games category on the App Store and Google Play

Worldwide App Store and Worldwide App Store Worldwide Google Play Google Play Spending Spending Spending

$125B +13.5% CAGR $125B $125B

$100B $100B $100B

$75B $75B +12.3% CAGR $75B

$117B $106B +15.9% CAGR $50B $95B $50B $50B $80B $63B $67B $55B $62B $25B $25B $48B $25B $50B $40B $44B $38B $32B $25B $0 $0 $0 2019 2020 2021F 2022F 2023F 2019 2020 2021F 2022F 2023F 2019 2020 2021F 2022F 2023F $117 Billion $67 Billion $50 Billion App Store + Google Play Revenue App Store Revenue Google Play Revenue By 2023 By 2023 By 2023

Note: Revenue figures are gross revenue (including the cut taken by Apple or Google).

Mobile Game Installs are Projected to Rise Steadily to 67.2 Billion by 2023 Three-year download forecast for the Games category on the App Store and Google Play

Worldwide App Store and Worldwide App Store Worldwide Google Play Google Play Downloads Downloads Downloads

80B 80B 80B

70B +6.1% CAGR 70B 70B

60B 60B 60B +6.2% CAGR

50B 50B 50B

40B 40B 40B 67.2B 61.8B 30B 57.5B 56.3B 30B 30B 55.3B 50.4B 42.7B 46.2B 47.0B 20B 20B +5.7% CAGR 20B 33.5B 10B 10B 10B 9.2B 10.1B 10.5B 11.4B 11.9B 0 0 0 2019 2020 2021F 2022F 2023F 2019 2020 2021F 2022F 2023F 2019 2020 2021F 2022F 2023F 67.2 Billion 11.9 Billion 55.3 Billion App Store + Google Play Downloads App Store Downloads Google Play Downloads By 2023 By 2023 By 2023

European and Asian Markets Projected for Strong Growth Top 10 countries by projected market share growth between 2020 - 2023

2020 2023F Germany is projected to gain the most market Germany . +18.0% CAGR share for mobile game revenue by 2023 with annual growth of 18 percent. Four other Canada . +19.4% CAGR European countries will join Germany among the top 10, including the U.K., France, Netherlands, United Kingdom . +18.5% CAGR and Italy.

Malaysia . +30.7% CAGR Southeast Asia has three countries among the top 10 by market share growth. Malaysia and Thailand . +23.9% CAGR Philippines are projected for a compound annual Philippines . +30.0% CAGR growth rate (CAGR) of 30 percent or higher, while Thailand is projected for a CAGR of 24 percent. France . +18.3% CAGR

Netherlands . +27.3% CAGR

Italy . +21.6% CAGR

Australia . Note: +17.3% CAGR Revenue figures are gross revenue (including the cut taken by Apple or Google). $0 $500M $1.0B $1.5B $2.0B $2.5B $3.0B $3.5B

Southeast Asia Game Revenue to Rise 90% by 2023 Revenue growth by region, App Store and Google Play

Worldwide Southeast Asia Europe North America Rest of Asia 90% Southeast Asia When looking at projected mobile game revenue growth by region, Southeast Asia and Europe are 80% expected to far exceed the worldwide rate. Europe Southeast Asia revenue will grow by 88 percent 70% between 2020 and 2023, while Europe is projected for 76 percent growth over the same period. 60% North America revenue growth will be similar to

50% Worldwide the worldwide rate. Meanwhile, slower growth in North America mature gaming markets like China and Japan will 40% result in a slightly lower growth rate in the rest of Rest of Asia Asia (excluding Southeast Asia). 30%

20%

10%

0% 2020 2021F 2022F 2023F

Key Takeaways: Market Forecast

1. Mobile game revenue will reach $117 billion by 2023, a CAGR of 13.5 percent. The App Store will contribute $67 billion with a 12.3 percent CAGR, while Google Play will reach $50 billion with a 15.9 percent CAGR.

2. Mobile game downloads will surpass 67 billion by 2023, or an annual growth rate of 6.1 percent. More than 55 billion of these installs will be from Google Play, with the App Store contributing around 12 billion.

3. Europe and Southeast Asia are key markets for mobile game developers, as revenue growth in these regions are expected to easily outpace the worldwide rate over the next three years. Currently, Europe-based publishers have found the most success in Europe, while some top China-based publishers have emerged as key players in Southeast Asia.

RPG Was the Top Game Genre by Revenue in 2020 Top 10 game genres by worldwide gross revenue, App Store and Google Play

2019 2020 Top Sub-Genre: Top Country: Top Game: RPG led all genres by mobile game revenue in $18.3B RPG MMORPG 34% Monster Strike $21.9B +19% 2020, followed by Strategy and Puzzle. RPG revenue grew by $3.6B year-over-year, while $11.7B Strategy 4X Strategy 30% Honor of Kings $15.1B +30% Strategy was close behind with growth of $3.4B. $7.0B Puzzle Puzzle & Decorate 52% Candy Crush Saga $8.5B +23% Among top genres, Simulation led the way by Y/Y $4.9B growth at 53 percent, followed by Shooter with Casino Slots 64% Coin Master $7.2B +46% 50 percent and Casino at 46 percent. Each of $3.8B these genres had one of the top five games by Shooter Battle Royale 32% PUBG Mobile $5.7B +50% revenue in 2020, with PUBG Mobile (Shooter), $2.7B$2.7B Coin Master (Casino), and Roblox (Simulation). Simulation Sandbox 50% Roblox $4.1B +53% $2.2B$2.2B Disney: Lifestyle Music / Band 48% $3.0B$3.0B +33% Twisted-Wonderland $2.1B$2.1B Sports Realistic Sports 47% Pro Baseball Spirits A $2.9B$2.9B +36% $1.7B$1.7B Action Fighting 39% Genshin Impact $2.2B$2.2B +39% Note: $1.3B$1.3B Revenue figures are gross revenue (including the cut taken by Geolocation AR Geolocation AR 52% Pokémon GO $1.9B$1.9B +44% Apple or Google).

$0 $5B $10B $15B $20B $25B

Strategy’s Growth Has Kept Pace with RPG Since 2018 Worldwide revenue by game genre, App Store and Google Play

RPG Strategy Puzzle Casino Shooter Simulation $7B Strategy has been able to stay within $1.4 billion of RPG gross revenue each quarter since 2018. RPG Strategy has a CAGR of 25 percent since Q1 2018 $6B +17% Y/Y vs. RPG’s CAGR of 15 percent.

$5B Casino and Simulation benefited from a few hit titles gaining traction during the pandemic. Coin Strategy Master contributed to much of Casino’s revenue +27% Y/Y $4B gains in 2020, while Roblox was responsible for a large portion of Simulation’s growth.

$3B Puzzle +24% Y/Y Casino $2B +32% Y/Y Shooter +14% Y/Y Simulation $1B +38% Y/Y

Note: $0 Revenue figures are gross revenue (including the cut taken by Apple or Google).

Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

4X Strategy is the Fastest Growing Sub-Genre Top 10 game sub-genres by year-over-year revenue growth in Q1 2021

Strategy Action RPG Puzzle Casino Simulation Geolocation AR Lifestyle

4X Strategy 4X Strategy is the fastest growing sub-genre by 4X Strategy (Strategy) revenue, followed by Open World Adventure. Six Open World Adventure different 4X Strategy games earned at least $100 Open World Adventure (Action) million in Q1 2021, while Open World Adventure Squad RPG was boosted by the hugely successful launch of Squad RPG (RPG) Genshin Impact. MMORPG MMORPG (RPG) Top growing sub-genres were spread across Puzzle & Decorate Puzzle & Decorate many different genres. Sub-genres from eight (Puzzle) different genres were among the top 10 by MOBA MOBA growth, with Strategy and RPG as the only two (Strategy) genres with multiple sub-genres. Slots Slots (Casino) Sandbox Sandbox (Simulation) Geolocation AR Geolocation AR (Geolocation AR) Music / Band Music / Band Note: (Lifestyle) Revenue figures are gross revenue (including the cut taken by Apple or Google). $0 $100M $200M $300M $400M $500M $600M $700M

The Assent of Hypercasual Continued in 2020 Top 10 game genres by worldwide downloads, App Store and Google Play

2019 2020 Top Sub-Genre: Top Country: Top Game: Hypercasual install growth continued in 2020, 7.5B Hypercasual Puzzle 14% Tiles Hop 3D 12.0B +60% rising 60 percent year-over-year. Most of the growth occurred early in 2020 as downloads rose 4.2B Puzzle Other Puzzle 16% Gardenscapes 5.5B +31% 35 percent between Q4 2019 and Q1 2020. 4.4B Arcade Platformer / Runner 20% Among Us 5.2B +20% Other top growing genres included Simulation

3.0B Driving / and Lifestyle with 57 percent and 52 percent Y/Y Simulation 18% Roblox 4.7B +57% Flight Simulator growth, respectively. India was the top country 2.6B by downloads for both of these genres, followed Lifestyle Lifestyle Simulator 15% My Talking Tom 2 3.9B +52% by Brazil and the U.S. 2.2B Shooter FPS / 3PS 26% Garena Free Fire 2.8B +24% 1.6B1.6B Tabletop Board 31% Ludo King 2.1B +32% 1.6B 1.6B Racing Realistic Racing 28% Hill Climb Racing 1.9B +23% 1.5B1.5B Sports Realistic Sports 18% 8 Ball Pool 1.6B 1.6B +7% 1.4B1.4B Strategy 4X Strategy 9% Brawl Stars 1.6B 1.6B +12%

0 2B 4B 6B 8B 10B 12B 14B

Hypercasual Has Seen Staggering Growth Since 2018 Worldwide download growth by game genre, App Store and Google Play

Hypercasual Puzzle Arcade Simulation Lifestyle Shooter 4B Hypercasual installs have skyrocketed, climbing from 757 million in Q1 2018 to more than 3.4 Hypercasual billion in Q1 2021. The genre was responsible for +17% Y/Y 31 percent of downloads in Q1 2021; no other genre had more than 12 percent. 3B

Other genres like Puzzle, Arcade, and Shooter saw downloads dip compared to the highs seen during the start of the pandemic. Most genres 2B still saw solid growth compared to 2019 totals.

Puzzle -7% Y/Y Arcade -2% Y/Y Simulation 1B +9% Y/Y Lifestyle +19% Y/Y Shooter -17% Y/Y

Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

Hypercasual Sub-Genres Drove Adoption Growth Top 10 game sub-genres by year-over-year download growth in Q1 2021

Hypercasual Lifestyle Simulation Arcade

Traversal Five of the top 10 fastest growing sub-genres by Traversal (Hypercasual) Y/Y growth in Q1 2021 were in the Hypercasual Action genre, including the top two. Simulation and Action (Hypercasual) Arcade each had two sub-genres represented. Lifestyle Simulator Lifestyle Simulator (Lifestyle) The top game in Q1 2021 was Join Clash 3D from Simulation Simulation Supersonic Studios with more than 81 million (Hypercasual) downloads, representing the Hypercasual - Simulator Simulator Traversal sub-genre. Among Us drove nearly all of (Simulation) the growth for the Arcade - Social Party sub-genre. Social Party Social Party (Arcade) Puzzle Puzzle (Hypercasual) Driving / Flight Simulator Driving / Flight Simulator (Simulation) Arcade Driving Arcade Driving (Arcade) Arcade Arcade (Hypercasual)

0 50M 100M 150M 200M 250M 300M

Key Takeaways: Game Genre Trends

1. RPG and Strategy were the top two genres by revenue in 2020 at $21.9 billion and $15.1 billion, respectively. No other genre had more than $10 billion in revenue that year.

2. Revenue growth was strong across top genres in 2020, with Simulation (53 percent year-over-year growth), Shooter (50 percent), and Casino (46 percent) leading the way. Eight different genres had one of the top 10 sub-genres by revenue growth in Q1 2021.

3. When it comes to mobile games installs, hypercasual has seen staggering growth in recent years. While hypercasual game download growth slowed after a large spike in Q1 2020, downloads still reached a record high 3.4 billion in Q1 2021, up 17 percent from a year prior. More than 30 percent of game installs in Q1 2021 were from hypercasual games.

Monetization Trends: Mobile Monetization Strategies

Early on, mobile games primarily monetized by offering a fixed price for full access. Monetization strategies have evolved since, with many top mobile games utilizing different in-app purchase (IAP) and advertising strategies to boost revenue far beyond the levels reached by premium (paid) games at the launch of the app stores. This section explores current strategies used by the leaders in mobile gaming.

1 Free Games 2 Free Games 3 Paid Games With IAPs With Ads

PUBG Mobile Roblox Tie Dye Tiles Hop Minecraft Heads Up!

Pokémon GO Join Clash 3D Bloons TD 6

Freemium Has Edged Out Premium in Mobile Gaming Paid game shares relative to free games on the App Store

% of Available Games % of Newly Released Games % of App Store Revenue Since the start of 2014, paid (or premium) games Paid Free Paid Free Paid Free 100% 100% 100% have continued to lose market share to free games. By Q4 2020, only five percent of newly 90% 90% 90% released games were paid games, and the share of paid games on the App Store had fallen to 12 80% 80% 80% percent (down from 43 percent in Q1 2014).

70% 70% 70% Freemium games have held an edge in 60% 60% 60% monetizing since 2014, explaining the transition away from the premium model. Paid games only 50% 50% 50% accounted for eight percent of mobile game revenue on the App Store at the start of 2014. By 40% 40% 40% Q4 2020 this share had fallen to one percent.

30% 30% 30%

20% 20% 20%

10% 10% 10%

0% 0% 0%

Q1 2014Q1 2015Q1 2016Q1 2017Q1 2018Q1 2019Q1 2020 Q1 2014Q1 2015Q1 2016Q1 2017Q1 2018Q1 2019Q1 2020 Q1 2014Q1 2015Q1 2016Q1 2017Q1 2018Q1 2019Q1 2020

Subscription Model is On the Rise Share of the top 100 games by U.S. App Store revenue in 2020 that have a subscription

Subscription No Subscription 100% By 2020, 29 percent of the top games by U.S. revenue on the App Store had a subscription. This number has climbed steadily, up from just 9 percent in 2017. 80%

More games have begun to adopt the subscription model, including some top titles 73% 71% like Roblox, Clash of Clans, and PUBG Mobile. 60% 83% 91% While the subscription is no the top in-app purchase for most of these games, it does provide a boost to the freemium model when 40% implemented correctly.

20%

27% 29% 17% 9% 0%

2017 2018 2019 2020

Most Mobile Games Don’t Rely on Subscriptions Top in-app purchases (IAPs) for games with subscriptions

Roblox Clash of Clans Roblox Supercell Even games that have successfully implemented the subscription model tend to get the bulk of their revenue from one-time purchases. Roblox is an exception, with monthly recurring subscription as its top three IAPs. Roblox also give subscribers a discount on additional Robux, the in game currency, as an extra incentive to subscribe.

Other top games like Clash of Clans, PUBG Mobile, and Rise of Kingdoms have their PUBG Mobile Rise of Kingdoms subscription among the top 10 IAPs but outside Tencent Lilith Games the top three spots. The subscriptions contribute to these games’ success but are not the only monetization strategy they use.

Note: In-app purchase rankings are as of the end of Q1 2021

More Than 50 Hypercasual Titles Crossed 50M Installs in 2020 Number of Hypercasual games reaching 50 million worldwide downloads by year

150M+ 100MM-150M 50M-100M The rise of Hypercasual games illustrates how more and more developers are monetizing primarily through ads. 56 different Hypercasual

3 2 9 games surpassed 50 million downloads in 2020, 2018 up from just 14 Hypercasual games that reached that threshold in 2018.

It is yet to be seen what the impact of IDFA will be on the Hypercasual games space, and mobile games advertising more broadly. 6 6 24 2019

3 12 41 2020

0 10 20 30 40 50 60

Key Takeaways: Monetization Trends

1. The vast majority of mobile games utilize the freemium model over the premium model. By Q4 2020, freemium games earned 99 percent of the revenue on the App Store compared to just one percent from premium games.

2. Some top games have found success using the subscription model, with examples including Roblox, PUBG Mobile, Clash of Clans, and Mario Kart Tour. While a subscription can help boost the revenue for games when it fits into the overall monetization strategy, most still rely on one time in-app purchases.

3. More and more games are monetizing through ads, with 56 different Hypercasual games adding at least 50 million users in 2020. The impact of IDFA on this strategy is yet to be seen.

Advertising: Definitions

Ad Publisher Shortcut Run Stack Ball The app monetizing its Voodoo Azur Interactive platform by displaying ads to its users

Advertiser Apps that are running mobile ad campaigns

Game Developer Developer that publishes the Snake.io High Heels advertising app Kooapps Zynga

Hypercasual and Puzzle Genres Rely on Ads the Most 2020 U.S. share of voice by game genre of the ad publishers on iOS

Hypercasual 38% Puzzle 22% Puzzle 20% Hypercasual 18% Puzzle was the top genre by ad publishing share Sports 13% Tabletop 10% Simulation 10% Arcade 8% of voice on five of the eight ad networks studies, AdColony AdMob Casino 5%5% Sports 8% and Hypercasual had the highest share of voice on the remaining three. Hypercasual games in particular monetize through showing ads, so it is Hypercasual 28% Puzzle 31% Arcade 14% Hypercasual 23% not surprising that this genre publishes a high A Puzzle 13% Tabletop 15% percentage of ads in mobile games. Tabletop 11% Action 9% AppLovin Simulation 7% Facebook Sports 3%3% Tabletop was the No. 2 genre by ad publishing share of voice on MoPub, and it ranked third on Puzzle 19% Puzzle 28% AdMob, Facebook, ironSource, and Vungle. Hypercasual 18% Tabletop 28% Arcade also ranked among the top five on six of Tabletop 16% Hypercasual 24% Simulation 8% Action 7% the eight networks. ironSource Arcade 7% MoPub Arcade 4%4%

Hypercasual 22% Puzzle 30% Puzzle 22% Hypercasual 24% Simulation 10% Tabletop 12% Note: Arcade 9% Simulation 9% Share of voice is calculated among game ad publishers only. Unity Tabletop 8% Vungle Arcade 9% Non-game ad publishers are excluded.

Puzzle Advertises the Most Across the Majority of Networks 2020 U.S. share of voice by game genre of the advertiser on iOS

Puzzle 28% Puzzle 34% Casino 24% Strategy 14% Tabletop 14% Hypercasual 10% When it comes to advertising, Puzzle games Simulation 13% RPG 8% advertise frequently on mobile to drive AdColony Shooter 4%4% AdMob Tabletop 7% adoption. Puzzle games were responsible for

Hypercasual 37% Puzzle 23% more than 30 percent of the mobile game Puzzle 31% Strategy 13% advertising share of voice (SOV) on six of the 10 ad A Simulation 6% Hypercasual 11% Casino 6%6% Casino 9% networks studied, including 42 percent on MoPub Facebook AppLovin Arcade 5%5% RPG 8% and 36 percent on ironSource.

Puzzle 20% Puzzle 36% Strategy and Hypercasual game genres also Strategy 12% Hypercasual 15% Casino 11% Casino 10% advertise considerably. Hypercasual was the top Simulation 11% Arcade 7% genre by SOV on AppLovin and it ranked among Instagram RPG 8% ironSource Tabletop 7% the top three genres on six other networks. Meanwhile, Strategy was the top genre on Puzzle 42% Puzzle 35% Strategy 12% Hypercasual 22% YouTube and was the No. 2 genre on four other ad Hypercasual 10% Strategy 9% networks. Casino 6%6% Tabletop 7% MoPub Tabletop 5%5% Unity Casino 6%

Note: Puzzle 35% Strategy 23% Hypercasual 19% RPG 15% Share of voice is calculated among game advertisers only. Non- Lifestyle 8% Action 10% game advertisers are excluded. Strategy 6% Shooter 9% Vungle Shooter 6% YouTube Simulation 8%

AppLovin and Activision Blizzard Are Among the Top Ad Publishing Developers Top ad publishing developers by U.S. advertising share of voice on iOS

AdColony AdMob AppLovin Facebook

1 Ninja Kiwi 1 Electronic Arts 1 AppLovin 1 Activision Blizzard 2 Miniclip 2 AppLovin 2 RobTop Games 2 Habby 3 Take-Two Interactive 3 Activision Blizzard 3 Ubisof 3 Zynga 4 Ubisof 4 zplay 4 Playgendary 4 Voodoo 5 Sybo Games 5 InnerSloth 5 Elokence 5 Miniclip

MoPub Unity Vungle ironSource

1 X-Flow 1 AppLovin 1 X-Flow 1 Activision Blizzard 2 Zynga 2 Voodoo 2 Easybrain 2 Miniclip 3 Habby 3 Zynga 3 Voodoo 3 Jam City 4 Voodoo 4 InnerSloth 4 Zynga 4 MobilityWare 5 Easybrain 5 Stillfront Group 5 AppLovin 5 Take-Two Interactive

Zynga Was a Top Advertiser Following Its Rollic Games Acquisition Top game developers by U.S. advertising share of voice on iOS

AdColony AdMob AppLovin Facebook

1 Playrix 1 Playrix 1 AppLovin 1 Zynga 2 Stillfront Group 2 Zynga 2 Voodoo 2 AppLovin 3 Nordcurrent 3 Easybrain 3 Easybrain 3 Voodoo 4 Big Run Studios 4 AppLovin 4 SayGames 4 Habby 5 Tether Studios 5 Activision Blizzard 5 Good Job Games 5 Topwar Studio

MoPub Unity Vungle YouTube

1 Playrix 1 Zynga 1 Playrix 1 Activision Blizzard 2 Zynga 2 Playrix 2 Activision Blizzard 2 miHoYo 3 Activision Blizzard 3 Easybrain 3 Voodoo 3 Lilith Games 4 AppLovin 4 Playgendary 4 Zynga 4 Aristocrat Technologies 5 Easybrain 5 BitMango 5 Crazy Labs 5 Moon Active

Homescapes Saw Steady Advertising Across Many Networks Top apps by U.S. advertising share of voice on iOS

AdColony AdMob AppLovin Facebook

1 Homescapes 1 Homescapes Wordscapes 1 Archero Playrix Playrix 1 PeopleFun Habby BitLife Toon Blast Brain Test Top War 2 Candywriter 2 Peak Games 2 Unico Studios 2 Topwar Studio Gardenscapes Double Down Ink Inc Toon Blast 3 Playrix 3 Double Down 3 Lion Studios 3 Peak Games Blackout Bingo Happy Color Save the Girl CSR 2 4 Big Run Studios 4 X-Flow 4 Lion Studios 4 NaturalMotion Marvel Contest of Champions Gardenscapes Cooking Fever Wordscapes 5 Kabam 5 Playrix 5 NordCurrent 5 PeopleFun

MoPub Unity Vungle YouTube

Homescapes Homescapes Homescapes Call of Duty: Mobile 1 Playrix 1 Playrix 1 Playrix 1 Activision Blizzard Fishdom Gardenscapes Call of Duty: Mobile Genshin Impact 2 Playrix 2 Playrix 2 Activision Blizzard 2 miHoYo Call of Duty: Mobile Happy Color Fishdom RAID: Shadow Legends 3 Activision Blizzard 3 X-Flow 3 Playrix 3 Plarium Township Word Collect Episode Coin Master 4 Playrix 4 Super Lucky Games 4 Episode Interactive 4 Moon Active Gardenscapes Pokémon GO State of Survival Rise of Kingdoms 5 Playrix 5 Niantic 5 FunPlus 5 Lilith Games

Zynga Advertising Increased After Hypercasual Acquisition Zynga’s U.S. share of voice by ad network

Ad Network Share of Voice Average Share of Voice Across Ad Networks

AdMob AppLovin Facebook Zynga’s advertising surged in Q4 2020 along with 20% 20% 20% its acquisition of hypercasual games publisher

15% 15% 15% Rollic Games. While its share of voice dipped somewhat in Q1 2021, it was still higher than it 10% 10% 10% had been in Q1 2019 through Q3 2020.

5% 5% 5% Zynga’s ad push in Q4 2020 was most

0% 0% 0% pronounced on networks including AdMob, AppLovin, Facebook, and YouTube.

Q1 2019Q2 2019Q3 2019Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020Q1 2021 Q1 2019Q2 2019Q3 2019Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020Q1 2021 Q1 2019Q2 2019Q3 2019Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020Q1 2021

MoPub Unity YouTube 20% 20% 20%

15% 15% 15%

10% 10% 10%

5% 5% 5% Note: Share of voice includes advertising from all games currently owned by Zynga, even if it was prior to the acquisition. Average 0% 0% 0% share of voice takes the mean across 10 ad networks (AdMob, AppLovin, Chartboost, Facebook, Instagram, ironSource, Q1 2019Q2 2019Q3 2019Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020Q1 2021 Q1 2019Q2 2019Q3 2019Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020Q1 2021 Q1 2019Q2 2019Q3 2019Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020Q1 2021 MoPub, Unity, Vungle, and YouTube).

Key Takeaways: Advertising Trends

1. Hypercasual and Puzzle games published the most ads across ad networks. Meanwhile, Puzzle games had the highest share of voice among game advertisers, suggested that these games are particularly reliant on advertising for user acquisition. Strategy and Hypercasual games also had a large portion of the share of voice on a few networks.

2. Playrix continued to be one of the top advertisers in the U.S., with the highest share of voice on Adcolony, AdMob, and Vungle networks. Its puzzle and decorate game Homescapes was the top advertising game on each of these networks, and it also advertised heavily for Gardenscapes and Fishdom.

3. Zynga’s acquisition of Hypercasual games publisher Rollic Games suggests that it still believes in the value of the genre despite the concerns around IDFA. Zynga’s share of voice surged following this acquisition.

Conclusion

● The mobile games market was larger than ever in 2020 and shows no signs of slowing down. In fact, revenue growth only accelerated during the COVID-19 pandemic and users spent more than $22 billion in mobile games in Q1 2021.

● The U.S. continues to be the top market for mobile game spending. Mobile game revenue in the country surged at the start of the pandemic, and the U.S. accounted for 28 percent of global game revenue in 2020. Meanwhile, Europe and Southeast Asia are also projected for strong growth over the next several years and are key regions for game developers to expand.

● Mobile game monetization has trended away from premium apps and towards the freemium and ad models in recent years. Some top games have had success with subscriptions, demonstrating how being creative with monetization strategies can give game developers an edge in such a competitive space. It will also be important to monitor how IDFA impacts mobile game advertising and genres such as Hypercasual and Puzzle that rely heavily on ads.

Conclusion 74 Sensor Tower Solutions

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