Here Be Dragons: Insights to Conquer Unknown Markets | Stephanie Llamas

Copyright © 2016 SuperData Research. All rights reserved. | www.superdataresearch.com

HERE BE DRAGONSUsing Market Insights to Conquer

Unknown Markets

http://www.superdataresearch.com

2Copyright © 2016 SuperData Research. All rights reserved. | www.superdataresearch.com

MARKET-LEVEL DATA 50 CONTRIBUTING PUBLISHERS

4 KEY METRICS

500+ UNIQUE TITLES

48MM UNIQUE PAYING USERS TRANSACTION-LEVEL 6 GAMING SEGMENTS

12 YEARS OF DATA




4 KEY METRICS

500+ UNIQUE TITLES


12 YEARS OF DATA

PLAYABLE MEDIA GAMING VIDEO CONTENTVIRTUAL REALITYESPORTS




4 KEY METRICS

500+ UNIQUE TITLES


12 YEARS OF DATA

PLAYABLE MEDIA GAMING VIDEO CONTENTVIRTUAL REALITYESPORTS

SUPERDATA ARCADE THE WORLD'S ONLY CROSS-PLATFORM BUSINESS INTELLIGENCE TOOL ON WORLDWIDE DIGITAL GAMES


| Playable media & games market research

5THE VIEW FROM BELOW | © 2015 SuperData Research | www.superdataresearch.com

STEPHANIE LLAMAS Director, Research and Insights @Stephinaners



6THE VIEW FROM BELOW | © 2015 SuperData Research | www.superdataresearch.com


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MARKET TRENDS

OPPORTUNITIESCopyright © 2016 SuperData Research. All rights reserved. | www.superdataresearch.com


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Mobile $30.1B

Retail $13.1B

PC DLC $5.3B Social

$8.4B

Free-to-play $14.0BGaming video

content $3.8B

Digital console $6.4B

Pay-to-play $2.6BeSports $748M

$85.1B Global games market,

2015

VR $661M


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$7.1

$31.2

$32.8

GLOBAL DIGITAL GAMES MARKET, 2016E $BILLIONS

PC

CONSOLE

MOBILE

PLATFORM 2015 2016E YOY INCREASE

Mobile $30.1 $32.8 9.0%

PC $30.3 $31.2 3.0%

Console $6.4 $7.1 10.9%

Total $36.7 $38.3 4.4%

*PC includes pay-to-play MMOs, free-to-play MMOs, PC DLC and Social games


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PLAYABLEDIGITALPHYSICAL

Total 2015 global revenues ($)

Late Early

Slowing

Accelerating

LIFECYCLE STAGES FOR KEY SEGMENTS IN INTERACTIVE ENTERTAINMENT, 2015

Mobile $30.1B

Retail $13.1B

PC DLC $5.3B

Social $8.4B Free-to-play

$14.0B

Gaming video content $3.8B

Digital console

$6.4B

Pay-to-play $2.6B

eSports $748M Virtual reality

$661M

INNOVATIVE MOM

ENTUM

LIFECYCLE


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Late Early

Slowing

Accelerating

Retail $13.1B

Pay-to-play $2.6B

INNOVATIVE MOM

ENTUM

LIFECYCLE



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Late Early

Slowing

Accelerating

Mobile $30.1B

Retail $13.1B

Social $8.4B

Pay-to-play $2.6B

INNOVATIVE MOM

ENTUM

LIFECYCLE

Free-to-play $14.0B

PC DLC $5.3B

Digital console

$6.4B



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In a place with a million and a half apps, tapping into

[something an audience loves] –

especially a long-running, beloved,

powerful IP – gives you access to an audience that would be very difficult to

get to otherwise.-Bill Mooney, EA Mobile Senior Vice President


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2014 2015 2016E 2017E 2018E

$10.3B$9.4B

$8.7B$7.9B

$6.1B

$8.7B China mobile games revenue, 2015E

29.%

11%8% 10%

Revenue change YoY


$962.5M Asia’s emerging mobile games market, 2015

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India

$415.8 million

Malaysia

$99.6 million

Indonesia

$258.1 million

Vietnam $63.9

million

Hong Kong

$83.6 million

Singapore $41.4

million



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Late Early

Slowing

Accelerating

Mobile $30.1B

Retail $13.1B

Social $8.4B

Pay-to-play $2.6B

INNOVATIVE MOM

ENTUM

LIFECYCLE

Free-to-play $14.0B

PC DLC $5.3B

Digital console

$6.4B


eSports $748M




“It’s not a search for legitimacy anymore. It’s a search for growth.” -Kevin Lin, Twitch COO



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5%2%

6%

43%36%

9%10%11%

53%

73%By viewing volumeBy revenue (advertising, donations and subscriptions)

GAMING VIDEO CONTENT GLOBAL MARKET SHARE, 2015E By platform


Gaming video content takes on an important gate-keeper function.

But can live streaming solve discovery issues in digital games market?



“eSports will rival the biggest traditional sports leagues in terms of future opportunities.”—Steve Bornstein, former CEO of ESPN and the NFL Network, current Chairman of Activision-Blizzard eSports Division




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2%2%

4%

7%7%

eSports betting & fantasy sites $55.8M

Prize pools $53.8M

Amateur & micro- tournaments $27.7M

Merchandise $17.0M

Ticket sales $15.9M

eSports market size,

2015E

million

Sponsorships & advertising

$578.6M

$747.5

INDIRECT 77%

DIRECT 23%


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Late Early

Slowing

Accelerating

Mobile $30.1B

Retail $13.1B

Social $8.4B

Pay-to-play $2.6B

INNOVATIVE MOM

ENTUM

LIFECYCLE

Free-to-play $14.0B

PC DLC $5.3B

Digital console

$6.4B


eSports $748M Virtual reality

$661M



“Virtual reality is inevitable... It’s the real deal, and you need to give it a chance.” —Palmer Luckey, Founder of Oculus VR

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$3.2B Total worldwide market for the Virtual Reality gaming hardware, software and peripherals market, 2016E

North America $1.0B

Rest of World $0.2B

Europe $1.1B

Asia $0.8B

*Market size includes hardware, software and peripherals sales

VIRTUAL REALITY GAMING MARKET SIZE, 2016E BY REGION


Playstation VR

Oculus Rift

Samsung Gear

Google Cardboard

HTC Vive

Other 13%

5%

7%

10%

13%

30%

VR DEVICE PURCHASE INTENT United States, September 2015

Virtual Reality hardware install base worldwide, 2016E


*Hardware prices based on manufacturer announcements and estimates | 1Q: Which of the following VR or AR devices do you plan on purchasing?

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LIGHT MOBILE VR

Notable devices Google Cardboard

($10-$120) Supporting hardware Smartphone ($350+)

Global 2016E user base

71% 27.1MCONSOLE

VR

Notable devices Playstation VR ($400-$600)

Supporting hardware Playstation 4 ($350)


5% 1.9M

PC VR

Notable devices Oculus Rift, HTC Vive

($300-$700+) Supporting hardware Gaming PC ($1000+)


6.6M17%PREMIUM

MOBILE VR

Notable devices Samsung Gear VR ($100)

Supporting hardware Samsung Galaxy

Smartphone ($500+) Global 2016E user base

2.5M7%

38.9MCopyright © 2016 SuperData Research. All rights reserved. | www.superdataresearch.com


2015 2016E 2017E 2018E 2019E

$11.1B

$7.6B

$5.1B

$3.2B

$0.7B

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$3.2B Total worldwide market for the Virtual Reality gaming hardware, software and peripherals market, 2016E

*Market size includes hardware, software and peripherals sales

2015 2016E 2017E 2018E 2019E

MobileConsolePC

VIRTUAL REALITY GAMING MARKET SIZE, 2016E BY PLATFORM


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Mobile and PC are neck-and-neck for first place, hovering near $30B

Retail, subscriptions and social games are a combined 28% of the interactive entertainment market, and will keep losing market share

Mobile has consolidated, making it harder to break in but giving developers a unique opportunity with IP

Don’t go to China! Tap into South East Asia’s $1B mobile market instead

Find out where your players go to watch gaming video content, but remember they will see through overt marketing tactics

eSports is a small global market at just $750M, or less than 1% of the gaming and playable media market. It’s already dominated by the top players so don’t try to build an eSport - build a competitive fan community

Virtual Reality is not a new peripheral, it’s a new medium. Don’t just port your game to VR - make a game for VR and tap into this year’s $3.2B market early on.

KEY TAKEAWAYS


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THANK YOU!

STEPHANIE LLAMAS DIRECTOR OF RESEARCH & INSIGHTS SUPERDATA RESEARCH

[email protected] @STEPHINANERS @_SUPERDATA

QUESTIONS?


Here Be Dragons: Insights to Conquer Unknown Markets | Stephanie Llamas

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