FEBRUARY 2017 ESSENTIAL NEWS

MARKET - CONSUMPTION - USE

sell.fr

Julie Chalmette Chairwoman

Emmanuel Martin General Delegate [email protected]

Anne-Sophie Montadier Communication and Marketing Manager [email protected]

FEBRUARY 2017 ESSENTIAL VIDEO GAME NEWS

MARKET - CONSUMPTION - USE A word from the chairwoman

Editorial ELL, which has been owes its success to the developers, representing and providing manufacturers, publishers and structure to video game accessory manufacturers who Spublishers in France for over twenty combine their talents and expertise years, aims to deliver the keys to offer gamers a multitude of to understanding the market, its experiences that are ceaselessly function and its developments, at a renewed and revised. A genuine mass time when gaming and distribution leisure industry, gaming has risen to modes are rapidly changing. the position of 2nd cultural industry in France with the objective of quickly With Essential Video Game News, becoming the leading market. This the objective is to draw up a complete pop culture sees its icons go beyond inventory of the sector, presenting a the realm of video gaming. Cinema, report of the French market in 2016, cartoons or even derivative products... the trends which drive the gamers and the richness of this industry is its ability also the perspectives for development to renew itself and deliver dreams to in the coming year. gamers. Whether on a console, PC or Video gaming represents the handheld device, the playing fields are successful digital transformation continuously growing and meeting. of entertainment industries. Solidly rooted in artistic creativity and In 2016, the video game market technological innovation, gaming reached its highest level since the

4 “In 2016, the video game market reached its highest level since the peak of generation 7.” peak of generation 7 in 2008. All strongest ever growth and testify to ecosystems combined (console, PC the opportunities in developing modes and handheld), the industry translates of consumption and use. its dynamic energy into 4% growth In 2016, PC gaming witnessed an and sales of 3.46 billion euros. exceptional year with 20% growth The console ecosystem was stable buoyed by PC sales, a market where in 2016 and is still generating the equipment had been completely major share of the industry’s global overhauled thanks to the arrival of value (63%). For sales of hardware, new brands in the most dynamic software or accessories, the market segment of the PC market. This has definitively embraced the 8th ecosystem represents 29% of the generation and continues to grow. global value of the gaming industry Note that the sales of hardware are and now exceeds one billion euros. slightly down and generation 7 is Mobile gaming, which generates 8% no longer generating value after the of video gaming value in France, initial peak in 2015 for generation 8 continues to grow after a year marked consoles. But 2017 is looking very by great popular success stories. dynamic for this segment with the rise in strength of new versions 2017 is looking to be an historic year launched in 2016, the arrival of new thanks to growth supported by all Hardware: console consoles and also the installation gaming ecosystems. Exciting new Software: game of virtual reality which arrived on products are expected on the different Console scope: the market at the end of the year. segments. Different uses and ways hardware + software of gaming continue to spread, meet + accessories, Overall, console software is posting and complement each other, offering physical + virtual 4% growth buoyed by the vitality of the unequally gaming possibilities. PC gaming scope: virtual market and 20% of generation Gamers will never have experienced a hardware + software 8 sales. Accessories are permanently better time to play and share. + accessories, broadening their ranges and continue physical + virtual to move forward with 6% growth. Handheld scope: Prepaid cards, a great example of Julie Chalmette handheld video digital at retail, are enjoying their SELL Chairwoman games

5 Contents

Contents Chapter 1 The French video game market 7 Chapter 2 Consumption and use 31 Chapter 3 A responsible industry 37 Chapter 4 The video game industry 48 Chapter 5 SELL 51

Essential Video Game News is produced by the Union of Video Game Publishers (SELL). It reflects the market, consumption and use of the French video gaming industry.

NOTE: 2015 had 53 weeks of sales, unlike 2016: - 2015 goes from week 01-2015 to week 53-2015 - 2016 goes from week 01-2016 to week 52-2016 Sales data in this report includes physical sales and also estimations for the virtual share. 6 Chapter 1 The French video game

market

7 The French video game market

2016 MARKET REPORT Sales from the French video game market

3.46 billion +4% MARKET euros GROWTH HARDWARE MARKET + SOFTWARE (PHYSICAL AND VIRTUAL) + ACCESSORIES + HANDHELD

63% 29% 8%

Console PC Gaming* Ecosystem Ecosystem Hardware, software Hardware, software and accessories and accessories

handheld Ecosystem

*Hardware (sales of PCs fitted with high-performance graphics cards), software (physical, virtual) and accessories (mouse, keyboard, screen) for PC gaming

8 Source: SELL estimation, using GfK panel data at end 2016 Close-up ON market segments 1,692 1,593

Breakdown of turnover in 1,067 1,058 euro millions

+6%

-1% 406 435

260 280 +7% +8%

2015 2016 2015 2016 2015 2016 2015 2016 Hardware software handheld Accessories (PC Gaming (PC Gaming (PC Gaming + Console) + Console) + Console)

Physical + virtual +4% Turnover for global market CONSOLES + PC GAMING + HANDHELD (PHYSICAL AND VIRTUAL MARKET)

Source: SELL estimation, using GfK panel data at end 2016 9 The French video game market

Close-up ON market segments 8% Handheld 3% software 17% PC Console accessories hardware 12% Virtual PC software 1% Physical PC 3.46 software billion 22% Physical euros console 13% software PC gaming hardware

9% Console accessories 14% Virtual console software

SOFTWARE SOFTWARE SALES DETAIL (IN VALUE) (IN VALUE) by platform physical and virtual 64% 14% 40% 46% Console Handheld Physical PC Virtual PC + 22% + Console 14% Console PC Handheld

10 Source: SELL estimation, using GfK panel data at end 2016 Development in sales

TOTAL ECOSYSTEM* HISTORIC IN 3.46 MILLION EUROS BILLION EUROS +4 %

2010 2011 2012 2013 2014 2015 2016

*Console ecosystem + PC + handheld, physical + virtual

Source: SELL estimation, using GfK panel data at end 2016 11 The French video game market

CONSOLE ECOSYSTEM

Breakdown of 2016 turnover in euro millions

28% 58% 600 million 1,253 million CONSOLE Console HARDWARE Software PHYSICAL + VIRTUAL 15% 324 million CONSOLE ACCESSORIES

12 Source: SELL estimation, using GfK panel data at end 2016 Console scope HARDWARE Established console base 7th and 8th generation at end 2016 39,487,000

home consoles handheld consoles

7TH GENERATION GENERATION 8 7TH GENERATION GENERATION 8 ESTABLISHED BASE ESTABLISHED BASE ESTABLISHED BASE ESTABLISHED BASE 14,951,000 5,078,000 14,170,000 5,288,000 OF 24,500 WHICH OF 1,468,000 WHICH OF 7,200 WHICH OF 725,000 WHICH WERE SOLD IN 2016 WERE SOLD IN 2016 WERE SOLD IN 2016 WERE SOLD IN 2016

ESTABLISHED BASE ESTABLISHED BASE OF RETROGAMING CONSOLES OF OTHER MEDIA 117,000 13,300

OF WHICH 111,000 WERE SOLD IN 2016 OF WHICH 7,800 WERE SOLD IN 2016

IN 2016, FRANCE HAD 28,015,423 HOMES. 52% OF THEM HAVE A GAMES CONSOLE.

Number of French households with generation 8 consoles 2013 2014 2015 2016 HOME CONSOLES 2.30% 7.10% 12.60% 18% HANDHELD DEVICES 6.50% 8.30% 9.90% 11%

Source: SELL estimation, using GfK panel data at end 2016 13 The French video game market

Console software

Turnover 2016

Console Console Software Software Generation 8 Physical + virtual Physical + virtual +4% +20% 1,253 million euros 1,140 million euros

14 Source: SELL estimation, using GfK panel data at end 2016 Console Accessories

Turnover 2016

CONSOLE ACCESSORIES +6% 324 million euros

TOP 5 Segments

01 02 03 04 05

CONTROLLER PREPAID HEADSET GAMING VIRTUAL CARD TOY REALITY

Source: SELL estimation, using GfK panel data at end 2016 15 The French video game market

A look back at the generations of consoles

DATE OF RELEASE IN EUROPE

5th generation

Atari Amiga 3DO Sega PlayStation Game Boy Jaguar CD32 Saturn 64 Color September 1994 8th July 9th September 1st March 23rd November 1993 1993 1995 1995 1997 1998

6th generation

Sega PlayStation Game Boy GameCube Game Boy SP Nokia Game Boy 2 Advance Advance N-Gage Micro 14th October 24th November 22nd March 14th March 28th March 1st October 4th November 3rd May 2002 1999 2000 2001 2002 2003 2003 2005

7th generation

Nintendo DS Sony PSP Nintendo PlayStation 3 11th March 1st September 2nd December 8th December 23rd March 2005 2005 2005 2006 2007

8th generation

Nintendo 3DS PS Vita Nintendo PlayStation 4 25th March 25th February 30th November 22nd November 29th November 2011 2012 2012 2013 2013

16 PC GAMING ECOSYSTEM

Breakdown of 2016 turnover in euro millions

45% 44% 458 million 439 million PC GAMING PC Software PHYSICAL + VIRTUAL 11% 111 million PC accessories

Source: SELL estimation, using GfK panel data at end 2016 17 The French video game market

PC gaming hardware

Turnover 2016

PC Gaming Hardware 458 office million handheld PC Euros PC 105 353 million million Euros Euros

18 Source: SELL estimation, using GfK panel data at end 2016 PC GAming accessories

Turnover 2016

PC Accessories 111 million Euros

TOP 3 Segments

01 02 03

GAMER SCREEN GAMER MOUSE GAMER KEYBOARD

Source: SELL estimation, using GfK panel data at end 2016 19 The French video game market

Top 20 games in 2016 All platforms in volume*

FIFA 17 POKEMON SUN BATTLEFIELD 1 01 02 AND MOON 03 Electronic Arts 1,426,209 Nintendo 509,845 805,390

04CALL OF DUTY: 10 FIFA 16 16 JUST DANCE 2017 INFINITE WARFARE Electronic Arts Activision Blizzard 295,772 216,176 465,816 2 MAFIA III 11 Ubisoft 17 Take-Two Interactive 05GTA V Take-Two Interactive 268,067 170,109 452,636 12 FAR CRY: 18 RAINBOW 06UNCHARTED 4: PRIMAL SIX SIEGE A THIEF’S END Ubisoft Ubisoft Sony 246,442 166,576 360,833 FINAL FANTASY XV FARMING 13 Square Enix 19 07MINECRAFT SIMULATOR 17 Microsoft 235,822 Focus Home Interactive 321,357 159,161 14 OVERWATCH 08THE DIVISION ORIGINS 20LEGO MARVEL’S Ubisoft Activision Blizzard AVENGERS 310,386 234,755 Warner Bros. Interactive Entertainment 09CALL OF DUTY: 15 YO-KAI WATCH 154,311 BLACK OPS III Nintendo Activision Blizzard 222,218 301,069

*Physical market excluding hard bundle sales Source: GfK 2016 panel data

20 Top 20 games for 2016 all platforms in value*

FIFA 17 POKEMON SUN BATTLEFIELD 1 01 Electronic Arts 02 AND MOON 03 Electronic Arts 83,972,806 Nintendo 29,814,388 31,283,621

04CALL OF DUTY: 10 FIFA 16 16 JUST DANCE 2017 INFINITE WARFARE Electronic Arts Ubisoft Activision Blizzard 14,399,081 8,049,967 29,457,792 FAR CRY: YO-KAI WATCH 11 17 Nintendo 05UNCHARTED 4: PRIMAL A THIEF’S END Ubisoft 8,047,249 Sony 14,108,779 MINECRAFT 22,960,502 18 Microsoft 12 OVERWATCH GTA V ORIGINS 7,979,579 06Take-Two Interactive Activision Blizzard 22,831,351 13,910,870 19 NARUTO SHIPPŪDEN : 07THE DIVISION 13 FINAL FANTASY XV ULTIMATE Ubisoft Square Enix NINJA STORM 4 18,968,971 13,865,625 Bandai Namco Games 7,584,588 WATCH DOGS 2 MAFIA III 08 Ubisoft 14 Take-Two Interactive 20NBA 2K17 15,274,249 9,561,731 Take-Two Interactive 7,409,454 09CALL OF DUTY: 15 RAINBOW BLACK OPS III SIX SIEGE Activision Blizzard Ubisoft 15,115,335 8,278,714

*Physical market Source: GfK 2016 panel data

21 The French video game market

Top 20 games for 2016 by platform in volume*

1 2 3 FIFA 17 POKEMON BATTLEFIELD 1 PS4 / Electronic Arts SUN PS4 / Electronic Arts 971,583 3DS / Nintendo 363,839 398,792

4 UNCHARTED 4: 10 CALL OF DUTY: 16 FIFA 17 A THIEF’S END INFINITE PS4 / Electronic Arts PS4 / Sony WARFARE 156,343 LEGACY EDITION 345,501 PS4 / Activision Blizzard 176,502 5 POKEMON 11 CALL OF DUTY: 17 FIFA 16 MOON INFINITE PS4 / Electronic Arts 3DS / Nintendo WARFARE 151,117 330,874 PS4 / Activision Blizzard 174,474

6 GTA V 12 FAR CRY: 18 OVERWATCH: PS4 / Take-Two PRIMAL ORIGINS EDITION Interactive PS4 / Ubisoft PS4 / Activision Blizzard 294,433 171,560 140,871

7 THE DIVISION 13 CALL OF DUTY: 19 JUST PS4 / Ubisoft BLACK OPS III DANCE 2017 209,391 PS4 / Activision Blizzard Wii / Ubisoft 170,893 132,905

8 WATCH DOGS 2 14 FIFA 17 20 MAFIA III PS4 / Ubisoft Xbox One / PS4 / Take-Two 206,533 Electronic Arts Interactive 169,087 129,242

9 YO-KAI WATCH 15 FINAL 3DS / Nintendo FANTASY XV 177,087 PS4 / Square Enix 167,774 *Physical market

22 Source: GfK 2016 panel data Top 20 games for 2016 by platform in value*

1 2 3 FIFA 17 BATTLEFIELD 1 UNCHARTED PS4 / Electronic Arts PS4 / Electronic Arts 4: A THIEF’S 57,225,303 21,568,531 END PS4 / Sony 21,487,918

4 GTA V 10 FIFA 17 16 OVERWATCH: PS4 / Take-Two Xbox One / ORIGINS EDITION Interactive Electronic Arts PS4 / Activision Blizzard 16,300,054 9,995,736 8,385,048

5 POKEMON SUN 11 FAR CRY 4: 17 FIFA 16 3DS / Nintendo PRIMAL PS4 / Electronic Arts 15,327,646 PS4 / Ubisoft 8,012,981 9,789,623

6 POKEMON 12 CALL OF DUTY: 18 MAFIA III MOON BLACK OPS III PS4 / Take-Two 3DS / Nintendo PS4 / Activision Blizzard Interactive 12,593,970 9,509,028 7,182,326

7 CALL OF DUTY: 13 FINAL 19 YO-KAI WATCH INFINITE FANTASY XV 3DS / Nintendo WARFARE PS4 / Square Enix 6,488,558 LEGACY EDITION PS4 / Activision Blizzard 9,221,075 12,514,385 8 THE DIVISION 14 FIFA 17 20 BATTLEFIELD 1 PS4 / Ubisoft PS4 / Electronic Arts Xbox One / 12,470,837 8,914,589 Electronic Arts 6,360,991

9 WATCH DOGS 2 15 CALL OF DUTY: PS4 / Ubisoft INFINITE 11,344,210 WARFARE PS4 / Activision Blizzard 8,537,860 *Physical market

Source: GfK 2016 panel data 23 The French video game market

Top 10 types of video games bought in 2016 in volume*

ACTION / ADVENTURE 4,865,263 FPS / SHOOTING GAME 3,186,627 ROLE-PLAYING 2,972,501 SPORTS 2,679,827 RACING 1,052,099 MULTIMEDIA 991,518 MUSICAL GAMES 831,710 STRATEGY 830,246 COMBAT 618,777 MULTIPLAYER 390,028

*Physical market 24 Source: GfK 2016 panel data Top 20 developers in 2016 in volume NINTENDO ELECTRONIC ARTS UBISOFT ACTIVISION BLIZZARD SONY KOCH MEDIA TAKE-TWO INTERACTIVE WARNER INTERACTIVE BANDAI NAMCO ENTERTAINMENT JUST FOR GAMES BETHESDA MICROSOFT FOCUS HOME INTERACTIVE BIGBEN INTERACTIVE KONAMI CAPCOM 505 GAMES DISNEY INTERACTIVE MICRO APPLICATION AVANQUEST

in value ELECTRONIC ARTS NINTENDO UBISOFT ACTIVISION BLIZZARD KOCH MEDIA TAKE-TWO INTERACTIVE SONY BANDAI NAMCO ENTERTAINMENT WARNER INTERACTIVE MICROSOFT BETHESDA FOCUS HOME INTERACTIVE JUST FOR GAMES BIGBEN INTERACTIVE KONAMI CAPCOM 505 GAMES DISNEY INTERACTIVE MICRO APPLICATION MADCATZ *Physical market Source: GfK 2016 panel data 25 The French video game market

Summary of 2016

GROWTH 4%(GLOBAL VIDEO GAMING MARKET)

BUOYED BY 3 ECOSYSTEMS

PC gaming console handheld

The PC Gaming market The console ecosystem generates Handheld gaming achieved an historic grew by comeback in 2016 and now exceeds 63% one billion euros. value for the video game industry 8%

Sales of PC Gaming The console market has definitively In 2016, the handheld enjoyed growth of embraced the 8th generation: market was marked by 2016 marked the arrival of new versions the success of major of generation 8 consoles which will, licenses. 30% over the coming months, gain in strength. Sales of generation 8 games are growing by 20%. Accessories are experiencing their third consecutive year of growth and benefited from the arrival of virtual reality on the market.

26 perspectives 2017 AN HISTORIC YEAR FOR VIDEO GAMING IN FRANCE!

The video game market continues to develop and enrich the gamer experience.

The dynamic of the three ecosystems which make up the video game industry in France offers very positive perspectives for 2017 with strong growth expected. New gaming modes are now available on the market and new consoles are announced for the coming months. This richness and vitality create a virtuous circle for hardware, software and accessories for consoles, PC gaming and handheld devices. The unequalled offer for gamers and the development of different gaming modes are slowly making the boundaries between gaming practices disappear; this marks the opening of a new era in video gaming.

27 The French video game market

Improving recognition of eSports in France

Key dates March 2016: Rudy Salles and Jérôme Durain officially submitted their interim report to Axelle SEPTEMBER 2015: SELL proposed an amendment Lemaire for the Law to be examined by the Senate. to the framework of the draft Law on the digital re- public proposed by Axelle Lemaire and intended to May 2016: the Senate officially recognised eSport give electronic sports a safe legal framework which and professional gamers. can promote growth in the sector. With over 4,000 votes in favour, this amendment went to the head June 2016: A joint Senate / National Assembly of the queue. meeting was held to finalise the framework of the text of the digital Law. January 2016: During debates at the National Assembly, Prime Minister Manuel Vallls launched July 2016: The National Assembly adopted the a parliamentary mission under the auspices of the law. UDI Deputy Rudy Salles and the PS senator Jérôme Durain, intended to promote the development of SEPTEMBER 2016: The Senate unanimously ap- video gaming competitions in France. proved the law on the Digital Republic.

28 Photo: Nicolas Gavet

Creation of the “France eSports” association: the first step towards a federation of eSport amateurs and professionals

The main historical actors in eSport came together to create “France eSports”, a non-profit association under Law 1901 which was officially launched on 27th April 2016 by Axelle Lemaire at the Ministry for the Economy. The purpose of the association is to represent the common interests of the businesses, professionals and amateurs in the sector and to promote its development in a context of professionalism and structuring of the practices used in electronic sports.

The 10 founding members include: Association Futurolan, LDLC Event, ESL, Lyon e-Sport, Malorian, O’Gaming TV, OXENT, SELL, SNJV and Webedia. The Association is chaired by Matthieu Dallon (ESWC) and the General Secretary is Stéphan Euthine (LDLC).

29 The French video game market

Trends and innovations A market in perpetual change

gaming experience

virtual multiscreen reality

tablet

Virtual reality

social interaction

generation

voice Online and motion immersion 8 control

e-sport box streaming cloud gaming

30 Chapter 2 Consumption and use

31 Consumption and use

Video gaming: a leisure activity for everyone The history of video gaming in France dates back to the 1980s. The last twenty years have seen the industry and how it is used change dramatically. Today it is the 2nd largest cultural industry behind books. Gaming has slowly become generalised, entering every French home.

OF REGULAR OF REGULAR 200529% GAMERS 201652% GAMERS

French habits (hours per week)

In the early 2000s, only 20% of the French population said they played video games, a large proportion being men with an average age of 21. Sixteen years later and one out of every two French people now say they play video games with almost equal sexual parity and an average age that extends way beyond 30.

Source: GfK 2005 Gamers Study and GfK/Sell Study, October 2016 32 French people French habits Gamer habits (hours per week) and their habits (hours per week)

SURF THE WEB 28.1 + 0.2 hours 28.3

WATCH TELEVISION 21.4 - 3.3 hours 18.1

LISTEN TO THE RADIO 9.1 + 0.7 hours 8.4

LISTEN TO MUSIC 7.5 + 1.5 hours 9

WATCH VIDEOS (DVD, BR, VOD, STREAMING) 4.3 + 1.1 hours 5.5

READ BOOKS 3.8 + 0.2 hours 3.6

PLAY ON THE SMARTPHONE AND TABLET 3.7 + 1.4 hours 5.1

PLAY ON THE CONSOLE AND PC 3.5 + 1.5 hours 5

READ NEWSPAPERS AND JOURNALS 2.6 + 0 hours 2.6

GO TO THE CINEMA 1.1 + 0.2 hours 1.3 Source: SELL / GFK "The French and Video gaming" survey Based on 1,002 people aged between 10 and 65, October 2016 33 Consumption and use

Video gaming: a leisure activity for everyone

OF FRENCH PEOPLE PLAY 52% REGULARLY

OF FRENCH PEOPLE PLAY 70% AT LEAST OCCASIONALLY 54% OF MEN 46% OF WOMEN

AVERAGE years old AGE OF A 34 VIDEO GAMER 35 FOR MEN 32 FOR WOMEN

PERCENTAGE OF GAMERS BY AGE GROUP

95% 91% 88% 79% 78%

55% 38%

10-14 15-18 19-24 25-34 35-44 45-54 55+

Source: SELL / GFK "The French and Video gaming" survey Based on 1,002 people aged between 10 and 65, October 2016 34 HOW PEOPLE PLAY

BREAKDOWN OF GAMERS BY 61% 59% PLATFORM 50%

34% 27%

8% Online Home PC Smartphone Tablet Handheld broadband consoles devices or cable

28% 25% EVERY DAY PLAY REGULARLY OR NEARLY (at least twice a EVERY DAY week)

GAMING FREQUENCY

28% 21% PLAY FROM TIME OCCASIONALLY TO TIME (2 to 3 times a year) (2 to 3 times a month)

Source: SELL / GFK "The French and Video gaming" survey Based on 1,002 people aged between 10 and 65, October 2016 35 Consumption and use

French people and video games

OF FRENCH PEOPLE 56% THINK THAT VIDEO GAMES ENCOURAGE CHILDREN’S DEVELOPMENT

OF FRENCH PEOPLE CONSIDER 62% VIDEO GAMING A POSITIVE ACTIVITY

OF FRENCH PEOPLE 76% CONSIDER VIDEO GAMING A LEISURE ACTIVITY FOR THE WHOLE FAMILY

out of 2 SEE French people GAMING 1 AS A CULTURAL ACTIVITY

Source: SELL / GFK "The French and Video gaming" survey Based on 1,002 people aged between 10 and 65, October 2016 36 Chapter 3 A responsible industry

37 A responsible industry

CREATED PRESENT OVER 25,000 FEDERATING IN IN APPROVED 1,300 2003 38 COUNTRIES GAMES COMPANIES

Pan European Game PEGI Information Since 17th December 2015, the PEGI system has been accredited by the French Home Secretary. The government has made the age and risk rating system mandatory for the video gaming sector.

The PEGI age rating system (Pan European countries. The system enjoys the European Game Information) gives parents support of the leading console manufacturers, throughout Europe the opportunity to make including Sony, Microsoft and Nintendo, enlightened decisions before purchasing a and also interactive game publishers and video game. developers throughout Europe. From this year, it is also applied to all new apps Launched in spring 2003, it has replaced a available from Google Play. The age rating certain number of national age ratings through system was created by the ISFE - the a unique system that is now used in most Interactive Software Federation of Europe.

38 PEGI labels

the labels

This game This game contains bad contains violent language. scenes.

This game contains images This game may which may encourage frighten young discrimination. children.

This game This game refers to the use of drugs encourages and/or (including tobacco and alcohol). teaches gambling.

This game shows nudity and/ This game allows online or sexual behaviour or makes gaming and may therefore allow sexual references. inappropriate content.

What do the labels mean? difficulty of the game or the skills required to The PEGI labels appear on the front and back play it. The labels above appear on the back of the cover, indicating one of the following of the cover, indicating the main reasons why age ratings: 3, 7, 12, 16 and 18. They provide a game has a specific age rating. a reliable indication of the suitability of the game's content with regard to the protection of minors.

The age rating does not take into account the

39 A responsible industry

There is an age for everything. There is a video game for every age.

For twenty years, SELL (the Union of Video PEGI rating system, since 2008 SELL has Game Publishers) has been working with been supporting and contributing to the gamers and parents on more responsible PédaGoJeux collective, responsible for video gaming practices. From 2003 and providing better explanations to parents, under the impetus of the Interactive Software gamers and educators about video games. Federation of Europe, SELL developed a rating system for video game content: the On the initiative of all its members, SELL PEGI system. Managed by an independent launched a huge national awareness organisation, the system guarantees and information campaign about the comprehensible and precise information, standardised PEGI rating system for regardless of how much consumers know video games created in 2003. about video gaming. Recognised as a general interest venture A public interest service recognised by by the French government’s Information the European Commission in 2007 and by Department, this campaign demonstrates the French government in 2014. A decision the commitment and values of the video which formalised ten years of constructive game industry, whose first priority work to offer gamers clear information. As remains responsibility and information for well as the institution and promotion of the consumers and gamers.

40 Parent behaviour towards video games

OF PARENTS ARE CAREFUL ABOUT 88% THEIR CHILD’S GAMING

OF FRENCH PEOPLE PLAY 65% VIDEO GAMES WITH THEIR CHILDREN

why do they game with them? 48% 11% 38% 59% 19% 39% because the because they for fun to share an to check game because they children ask want to activity content like to game them to

GAMING FREQUENCY of parents with their children 17% 9% 39% 19% 16% regularly frequently occasionally Rarely Never

Source: SELL / GFK "The French and Video gaming" survey Based on 1,002 people aged between 10 and 65, October 2016 41 A responsible industry

PEGI analysis of the 2016 offer

69%OF GAMES RATED PEGI 12 AND BELOW

50%OF GAMES RATED PEGI 7 AND BELOW

31%OF GAMES RATED PEGI 16 AND 18

*Physical market 42 Source: GfK 2016 panel data PEGI sales analysis* MARKET SHARE IN 2016

35% 30% IN VOLUME

14% 11% 9%

12% 12% 10%

IN VALUE 34% 33%

*Physical market Source: GfK 2016 panel data 43 Essential Video Game News Find it on the SELL website: sell.fr

Essential Video Game News - special issue A responsible industry

PedaGoJeux.fr The website for information and raising awareness about video games

The PédaGoJeux website guides parents and educators through the complex world of video gaming. On pedagojeux.fr, parents can find all the best practices and keys to understanding how to best support their children in this leisure activity.

uestions about gaming time, sleep, age game design app for 9-14 year-olds. It encourages and game content are major concerns for them to move from consumer to designer and Qadults today. PédaGoJeux believes it is gives them the resources to take a step back essential that parents know and understand the and view the game itself more critically in terms PEGI labels so they can select games suitable of how they game themselves. With GameCode, to their child's age and sensitivity and children will see behind the scenes of adapted to their family values. In the how a video game is made and discover opinion of PédaGoJeux, talking to their programming, developing their digital children about their gaming experiences knowledge and culture. and gaming together as a family are also essential. PédaGoJeux is a collective created in 2008 by people from public bodies, the To extend its scope, PédaGoJeux gaming industry and associations. has been developing a network of educational mediators since 2014, the The current active members of the PédaGoJeux Ambassadors, who are PédaGoJeux collective are: the National for the most part state or charity entities Union of Family Associations (UNAF), working in the fields of family awareness Tralalere (Internet Sans Crainte), the and information. In 2014, this programme Ministry for Family Affairs, Union of received the "Défenseur des droits" label Video Game Publishers (SELL), Bayard at a celebration of the 25th anniversary of Jeunesse and JeuxOnLine. The multi- the Convention on the Rights of the Child. representational organisation of PédaGoJeux ensures a balanced approach to video gaming. In 2015, PédaGoJeux focused more specifically Without demonising or venerating gaming, our on younger gamers and created PédaGoJeux objective is to present the benefits and advantages Junior, a space with content dedicated to 6-12 year of video games and the points of concern. olds. With Tralalere (Internet Sans Crainte) and SELL, two of its founding members, PédaGoJeux is involved in the launch of GameCode, a video 46 47 Chapter 4 the video game industry

48 The video game ecosystem

Designers Publishers Video gaming

Studios Distributors

49 the video game industry

Business models The 3 business models of video gaming 2

Creation + Studio

Publishing + Distribution 1 Creation 3 Design + Studio + Studio Publishing + + Aggregators Distribution

Public

50 Chapter 5 SELL The Union of Video Game Publishers

51 SELL

The missions of SELL

he Union of Video Game (Director of the Retail Sales and Marketing Publishers (SELL) was founded in Division for Microsoft France) and Emmanuel 1995 by key players on the video Martin (SELL General Delegate), in 2015 this Tgame market. To support the growing video commitment to society became concrete with game industry and its accessibility, video game the PEGI system’s approval from the French professionals (console manufacturers, game Home Secretary as the rating system for video developers, accessory manufacturers, etc.) games in France. needed to speak with the same voice. Following the example of the Interactive Software SELL’s main objective is to promote video Federation of Europe (ISFE) which defends games and gaming with the general public, the interests of the video gaming sector on a national and European stakeholders and European level, SELL immediately became the the authorities. For this, SELL organises two primary contact for French public institutions, shows every year, the Interactive & Digital the media and different associations. Entertainment Festival (IDEF) and Paris Games Week (PGW), federating the main In twenty years, SELL has taken many operators in the video game sector. decisive actions to ensure video gaming is recognised as one of France’s favourite IDEF is a trade fair. Ever year, all of the video leisure activities. This success is not solely game industry comes together there. Over down to the quality of games sold by SELL three days, they present industry buyers with members. Aware of their responsibilities to gaming trends and new products and services gamers and their friends and families, in which will create a buzz for the Christmas 2003 SELL members implemented a simple, season. Furthermore, panels, conferences complete and independent video game and round tables introduce and explain new rating system: PEGI (Pan European Game usages and new technologies which will move Information). SELL expressed the industry’s the video game industry forward, an industry desire to be responsible through the PEGI which is enjoying constant growth. rating system and through an information resource for parents (PédaGoJeux). Under the presidency of Jean-Claude Ghinozzi 52 PUBLIC PEGI PÉDAGOJEUX

Fighting piracy Photo: Nicolas Gavet

Paris Games Professionals GAMERS largest video Studies PARIS GAMES WEEK game show Week is a Information Info general public Public relations News couldn’t forget Prevention show. Over five IDEF the professionals! days, hundreds Game Connection of thousands of Public is a space where gamers, their families and friends authorities industry professionals can meet and Government will play and discover the latest Institutions discover creations and offers which titles, technologies and peripherals for European Union will hit the headlines in the coming the Christmas season. Even though it months and years. is open to all and has events suitable for every audience, Paris Games Week has an area SELL also has a vocation to defend the interests specially designed for younger gamers: Junior of its members and, more generally, all of PGW. There, children and parents can discover the video game sector. This includes software games, accessories and activities designed for a developers, console manufacturers, accessory younger audience. PGW is also an opportunity to manufacturers and also development studios and meet some of the colleges offering courses in video colleges offering video game courses. gaming and digital design. Finally, the world’s third 53 SELL

The Board of Directors

Michaël Sportouch Hugues Ouvrard Activision Blizzard Microsoft

Arnaud Muller Philippe Lavoué Bandai Namco Nintendo Entertainment Philippe Cardon Julie Chalmette Sony Interactive Bethesda Entertainment

Jérôme Le Grand Florent Moreau Disney Interactive Square Enix

Dominique Cor Patrick Bellaiche Electronic Arts & Michel Magne Take-Two Interactive John Bert Focus Home John Parkes Interactive Ubisoft

54 The members of SELL

Activision Blizzard Koch Media Bandai Namco Konami Entertainment Microsoft Bethesda Nintendo Bigben Interactive Orange Capcom PDP Disney Interactive Sega Electronic Arts Sony Interactive Focus Home Interactive Entertainment Game One Square Enix Gravity Europe Take-Two Interactive Innelec Multimedia Ubisoft Just For Games Warner Bros Interactive

55 FEBRUARY 2017 ESSENTIAL VIDEO GAME NEWS

MARKET - CONSUMPTION - USE

sell.fr

Julie Chalmette Chairwoman

Emmanuel Martin General Delegate [email protected]

Anne-Sophie Montadier Communication and Marketing Manager [email protected]