DECONSTRUCTING MOBILE & TABLET GAMING 2015 EEDAR 2015 SYNDICATED REPORT - FREE VERSION CONTACT For full report pricing and more information contact Cooper Waddell at [email protected] or visit http://www.eedar.com/Contact.aspx TERMS OF USE THIS REPORT IS PROVIDED ON AN “AS IS” BASIS WITHOUT WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OTHER THAN THOSE WARRANTIES WHICH ARE IMPLIED BY AND INCAPABLE OF EXCLUSION, RESTRICTION OR MODIFICATION UNDER THE LAWS APPLICABLE TO THE MASTER AGREEMENT FOR SERVICES. 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PROPRIETARY AND CONFIDENTIAL. 2 TABLE OF CONTENTS REPORT OVERVIEW 5 TOP GENRES PLAYED 40 TERMINOLOGY 7 GENRE SUMMARIES 41 MOBILE GAMING GENRES 8 PUZZLE GENRES 42 MOBILE GAMING MARKET OVERVIEW 10 ARCADE GENRES 43 2015 MOBILE GAMING MARKET 11 SIMULATION GENRES 44 WHO IS PLAYING? 12 SKILL & CHANCE GENRES 45 WHAT ARE THEY PLAYING ON? 13 STRATEGY GENRES 46 WHAT IS THEIR PRIMARY OS? 14 RPG GENRES 47 HOW DO THEY USE THEIR DEVICES? 15 ACTION GENRES 48 WHERE DO THEY PLAY GAMES? 17 OTHER GENRES 49 HOW DO THEY PLAY? 19 (REGION)* - MARKET OVERVIEW 50 HOW DO THEY SPEND? 20 MARKET SIZING & SEGMENTATION 51 WHAT IS THEIR OVERALL INVESTMENT? 21 DEVICE OS MARKET SIZING 52 WHY DO THEY PLAY MOBILE GAMES? 22 MOBILE GAMING REVENUE 53 MOBILE GAMING FUNNEL 23 DEMOGRAPHICS 54 DISCOVERY 24 MOBILE GAMING SPEND 55 ENGAGEMENT 26 MOBILE GAMING TIME 57 VIRALITY 31 MOBILE GAMING INVESTMENT 59 MONETIZATION 33 DEVICE USAGE 60 CHURN 36 MOBILE GAMING LOCATIONS 61 MOBILE GENRE OVERVIEW 38 MOTIVATIONS FOR MOBILE GAMING 62 MOBILE GENRE SYSTEM 39 * Highlighted sections are available in full report. Regions include North America, Japan, South Korea, and China. Regions can be purchased separately. © COPYRIGHT 2015 ELECTRONIC ENTERTAINMENT DESIGN AND RESEARCH. PROPRIETARY AND CONFIDENTIAL. 3 TABLE OF CONTENTS (REGION)* - MOBILE GAMING FUNNEL 63 SEGMENTED BRAND ENGAGEMENT 109 DISCOVERY 64 SEGMENTED SHARING ACTIVITIES 114 ENGAGEMENT 66 SEGMENTED IAP MOTIVATIONS 119 VIRALITY 71 SEGMENTED IAP PURCHASES 124 MONETIZATION 73 SEGMENTED REASONS FOR CHURN 129 CHURN 76 METHODOLOGY 134 MOBILE GENRE ANALYSIS 78 ABOUT EEDAR 134 MOBILE GENRE SIZING 79 MOBILE GENRE OVERLAP 80 PUZZLE GENRES 81 ARCADE GENRES 83 SKILL & CHANCE GENRES 85 SIMULATION GENRES 87 RPG & STRATEGY GENRES 89 ACTION, SPORTS & RACING GENRES 91 SEGMENTED RESPONSE DATA 93 SEGMENTED MOTIVATIONS 94 SEGMENTED DISCOVERY SOURCE 99 SEGMENTED INITIAL ENGAGMENT 104 * Highlighted sections are available in full report. Regions include North America, Japan, South Korea, and China. Regions can be purchased separately. © COPYRIGHT 2015 ELECTRONIC ENTERTAINMENT DESIGN AND RESEARCH. PROPRIETARY AND CONFIDENTIAL. 4 REPORT OVERVIEW 2015 REPORT OVERVIEW METHODOLOGY The EEDAR 2015 Deconstructing Mobile & Tablet Gaming Reports focus on the Data in the 2015 Deconstructing Mobile & Tablet Gaming Report is from a consumer gaming habits of smartphone and tablet gamers in 4 key regions: North America, survey measuring the attitudes and behaviors of a representative sample of three Japan, China, and South Korea. For each regional market, a detailed profile is thousand North American (USA and CA), one thousand Japanese, one thousand presented around 4 themes: Chinese and one thousand South Korean active adult mobile gamers that played one or more mobile game within the past 6 months on their smartphone or tablet. I. Market Sizing & Segmentation EEDAR conducted a consumer survey in July 2015, measuring the attitudes and behaviors on over 250 variables related to smartphone games, tablet games, and II. Market Demographics & Behavior general gaming behavior. III. Mobile Gaming Funnel Analysis IV. Mobile Genre Analysis This first series of analyses determines the number of mobile gamers and segments this market into distinct groups based on mobile spend. The second section focuses on gamer activity, demographics, and reasons for mobile gaming. The third section analyzes the mobile gaming funnel, from engagement through monetization. The fourth section analyzes the market size, player base demographics, and overlap of the established mobile game genres. © COPYRIGHT 2015 ELECTRONIC ENTERTAINMENT DESIGN AND RESEARCH. PROPRIETARY AND CONFIDENTIAL. 5 TERMINOLOGY SMARTPHONE GAMERS FREE-TO–PLAY APPS (F2P) Smartphone owners that have played a game on their smartphone in the past 6 Game is initially free to download from the App marketplace. months. • A smartphone is a cellular telephone that can support and run third-party IN-APP PURCHASES (IAP) applications and has internet access. An iPod Touch is also considered a smartphone. F2P and Paid Apps have additional content that can be purchased from within the game, including both consumable purchases (e.g. currency, boosts, energy, etc.) and permanent content purchases (e.g. level packs, aesthetic items, characters/ TABLET GAMERS heroes, etc.). Tablet owners that have played a game on their tablet in the past 6 months. MOBILE GAMER SPEND SEGMENT • A mobile tablet is a wireless, portable computer with a touchscreen interface that is capable of running applications and accessing the internet. Categories of mobile gamers based on total spend in the past year on mobile games. This reflects total spend across all relevant titles in the given year, not spend on a specific title. MOBILE GAMERS • Mobile Gamer Spend Segments are ranked from light spending to heavy Active smartphone and/or tablet gamers, past 6 months. spending: Non-Payer (spent $0 on mobile games in the past year), Moderate Payer (spent $0.99 - $99.99 in the past year), and Heavy Payer (Whale; spent over $100 in the past year). OS • For regions utilizing currencies other than USD, the values have been The operating system being run by the smartphone or tablet. The major gaming converted to roughly equivalent ranges based on similarly meaningful OS on smartphone and tablets are Apple iOS, Google Android, and Other currency buckets. (including Windows, Blackberry, etc.). Each OS typically has a proprietary app store, with Android tending to be more fragmented (especially in China). MOBILE GAMER PLAY SEGMENT PREMIUM GAMES Categories of mobile gamers based on their average weekly play time of mobile games. This reflects total play time across all relevant titles, not play of a specific Games purchased through the App marketplace. Prices range from $0.99 to title. $19.99 and higher. • Mobile Gamer Play Segments are ranked from light play to heavy play: Light Players (play less than 1 hour per week), Moderate Player (play 1 hour – 5 hours per week), and Heavy Player (play greater than 5 hours per week). © COPYRIGHT 2015 ELECTRONIC ENTERTAINMENT DESIGN AND RESEARCH. PROPRIETARY AND CONFIDENTIAL. 6 TERMINOLOGY INVESTMENT INDEX MINIMAL INVESTORS (previously Casual Gamers) In addition to separately segmenting mobile gamers on the basis of money and The least invested gamers in mobile gaming, playing very little (in infrequent, time spent on mobile games, EEDAR combines these independent measures of short bursts), and paying nothing for their games (Non-Payers / Light Players). gamer investment into the Investment Index. • This index features 9 potential pairings of pay and play patterns that represent LOW INVESTORS (previously Semi-Casual Gamers) 5 distinctive types of player experiences that range from Minimal Investment (i.e. those who do not pay, and play very little), to Extreme Investment (i.e. are Gamers that combine a mixture of low investment and moderate investment heavy spenders and players). across their spend and play segmentations (including Non-Payers / Moderate Players, and Moderate Payers / Light Players). NON-PAYER MODERATE PAYER HEAVY PAYER ($0 / YEAR) ($0.99-$100 / YEAR) (< $100 / YEAR) MODERATE INVESTORS (previously