Webinar on digital gaming market & investment trend with insight alpha

WELCOME TO WEBINARON

DIGITAL GAMING MARKET & INVESTMENT TREND

Breaking New Ground: How Innovation in Digital Gaming Market will Drive the Next Wave of Growth

http://mergeralpha.com/webinar_details.php?id=MzA=

KABIR AHMAD

Research, Consultancy, and Training Professional

•Digital Gaming

•Gamificaiton

•Wearable

Technology

•Cloud Technology

•Big Data

•Digital Business

•Mobile OTT

Business

WEBINAR AGENDA

Digital Gaming Market Overview: Technology,

Platform, Market Value, Business Model

Industry Transition: Middleware, Wearable

Investment Trend in Gaming: Deal, VC, M&A,

Value vs. Volume Region and Investment

Consideration

Opportunity Sectors in Gaming and Key

Investment Consideration

ARCADE GAME

80 & 90’s Decade

COMPUTER GAME

FEATURE PHONE GAME

CONSOLE GAME

Game is Alive

It’s Just the Platform, Technology and

Consumption Pattern

New Era of Digital Gaming

SMARTPHONE

TABLET

ONLINE

SOCIAL AND LOCATION

SOCIAL CASINO

USER GENERATED CONTENT

CONVERGENCE AND CLOUD

GAMIFICATION

WEARABLE

DIGITAL GAME

A digital game is an interactive program

for one or more players, meant to provide

entertainment at the least, and quite

possibly more.

An adaptation of traditional game systems,

with rules, player representation, and

environment managed through electronic means

TREND

PLATFORM / TECHNOLOGY CONSUMPTION / MONETIZATION

o Virtual Reality

o Augmented Reality

o Gamification

o Multiplayer Online/Social &

Local

o UGC

o Cloud & HTML 5

o Mobile Messaging Platform

o Freemium

o Free to Play & In-game

Microtransaction

o In-game Advertising

o Advergaming

COMMUNAL GAME PLAY TREND & OTT DELIVERY

2014 +

• Paying user 1.07%

• ARPU 13 times

• ARPPU 10 times

DIGITAL GAME MARKET VALUE

o 60% Software Market

o 40% Hardware Market

Geography:

o Asia – 65%

o Europe - 15%

o US – 12%

o ROW – 8%

Emerging Market

o Latin America

o South East Asia

o Middle East 0

20

40

60

80

100

120

2014 2015 2017

$ Billion

PLATFORM REVENUE SOURCE

o Mobile (including Tablet) –

60%

o PC – 24%

o Console – 12%

o Wearable – 4%

o In-Game Transaction – 40-

50%

o Download – 20 – 30%

o Adverts – 10 – 20%

o Data Transmission – 2-5%

GAME SECTOR

DEAL & VALUE

VIDEO GAME M&A

IPO BY COUNTRY

SECTOR WISE M&A TREND

VC TREND

OPPORTUNITY CHART

VALUE VS. VOLUME REGION

VALUE VS. VOLUME REGION

Value Driven Volume Driven

Nature Large Long Term Niche Mass Market Growth

Platform Niche Console, MMO

Online

Mobile, Social and

Middleware

Users thousands to tens of

millions

thousands to hundreds

of millions

ARPU $-$$$ (High) ¢ - $$ (Low)

Costs $ millions to tens of

millions

$ tens of thousands to

millions

Operating profit negative to 20%+ negative to 70%+

Growth rates negative to <10% negative to 100%+

Business model unit sales, subscriptions,

virtual goods

unit sales, free, virtual

goods, ads

KEY CONSIDERATION

• Portfolio company M&A to major games consolidators

• Early to late stage with focus on cross-platform

• Investment in social/casual strategic roll-ups

• Follow-on investments in portfolio companies pivoting from

mobile to cross-platform mobile-social to middleware and

wearable

• Selective growth equity investment in online/mobile tech

and gamification strategic roll-ups

SELECTING PROFITABLE SECTOR

o Multiscreen endeavor especially covering mobile, tablet &

social platform, and wearable.

o It is not the console; it’s mobile that will dominate living

room

o The middleware technology market will grow rapidly in

coming years including consumer adoption. Most likely

gamification and game technology software business will

end up as B2B SaaS model generating volume driven

business. It’s the perfect time of investing out in such

endeavor

o Wearable gaming like VR will boom but need to be careful

o Real money gaming such as social casino gaming is a

growing trend in terms of consumer adoption. Considering

the legality of particular market, the sector is good for short

term investment under portfolio strategy

o Investors need to consider value vs. volume driven

market. Value driven market will be better for small term

investment expecting better return in shorter timeframe

whereas large investment should pour into volume driven

emerging markets like Brazil, Russia, China, and some

sectors for Korea & Japan.

o Investors need to consider the revenue generating

business models such as freemium and free-to-play with

virtual goods.

Email: [email protected]

Skype: kabirahmad2008

LinkedIn: http://www.linkedin.com/in/kabirahmad