Digital Collectible Card Games | Casual Games Sector Report

Digital Collectible Card Games 2013 C A SUAL G AME S SEC TOR REP OR T

What are digital collectible card games?

What advantages do digital card games have over physical card games?

1. Playable on all gaming platforms: console, mobile and social gaming platforms.

2. No production costs of physical cards.

3. Digital collectible card games allow players to learn via computer tutorial, find opponents online, and play asynchronously, making learning and multiplayer options more accessible for solo players.

Online card games that involve card collecting, deck building, and often a competitive battle mechanic.

ectible Card Games - Worldwide

% Digital

60

% Physical

DIGITAL COLLECTIBLE CARD GAMES

40

2.0% 4.0% 9.7% 18.0% 25.0% 29.4%

Growth of the Genre

98.0% 96.0% 90.3% 82.0% 75.0% 70.6%

20

0

2008

2009

2010

2011

2012

2013E

2014E

2015E

digital collectible card game revenues — north america (millions)

Digital - North America merica $595.15 $607.3 $618.91 $644.7 $617.11 $683.4 $582.77 $710.7 $543.75 $725.0 $511.21 $723.9

digital games physical games

800 700 600 500 400 300

Digital games represent an increasing percentage of the collectible card game market.

200 100 0

2010

2011

2012

2013E

2014E

2015E

digital vs. physical collectible card games — worldwide (% of total revenue)

digital games physical games

100

80

ollectible Card Games - Worldwide % Digital

60

% Physical

40 2.0% 4.0% 9.7% 18.0% 25.0% 29.4%

98.0% 96.0% 90.3% Digital card games 82.0% revenues grow 75.0% exponentially over 70.6%

20

0

2008

2009

2010

2011

2012

2013E

2014E

2015E

from 2010 to 2015E.

Digital - North America America 1 $595.15 $607.3

Digital Collectible Card Games 2013 CA S UA L G A M E S A S S O C I AT I O N

800

The Players Demographics of U.S. Digital Collectible Card Gamer Digital card game players skew slightly younger than their physical counterparts. However, players of both game types are younger and more heavily male dominated compared to other genres.

overall social games

Female ages

digital audience size, U.S. (millions) 20

35-44

15

10

console game average player

age

37

5 Source: ESA 2011

Male

0

digital collectible card games

Demographics (Worldwide) Average Age 37.8 years old 27.3 years old 40.9 years old

Casino Games Poker Games Slots Games

Overall Social Games 35 to 44 years old

Male 44.1% 71.0% 39.6%

Female 55.9% 29.0% 60.3%

Female

Example DoubleDown Casino Texas HoldEm Poker Slotomania

Publisher IGT/DoubleDown Interactive Zynga Caesar’s/Playtika

average age

Demographics (Worldwide) Average Age 37.8 years old 27.3 years old 40.9 years old

Casino Games Poker Games Slots Games

Overall Social Games 35 to 44 years old

Male 44.1% 71.0% 39.6%

Female 55.9% 29.0% 60.3%

Example DoubleDown Casino Texas HoldEm Poker Slotomania

Publisher IGT/DoubleDown Interactive Zynga Caesar’s/Playtika

Female

Demographics (Worldwide) Average Age 37.8 years old 27.3 years old 40.9 years old

Overall Social Games 35 to 44 years old

2011

2012

2013e

2014e

2015e

physical collectible card games

21.5 Casino Games Poker Games Slots Games

2010

Male 44.1% 71.0% 39.6%

Female 55.9% 29.0% 60.3%

Example DoubleDown Casino Texas HoldEm Poker Slotomania

Female

Publisher IGT/DoubleDown Interactive Zynga Caesar’s/Playtika

average age

Demographics (Worldwide) Average Age 37.8 years old 27.3 years old 40.9 years old

Casino Games Poker Games Slots Games

Overall Social Games 35 to 44 years old

Male 44.1% 71.0% 39.6%

Female 55.9% 29.0% 60.3%

Example DoubleDown Casino Texas HoldEm Poker Slotomania

Publisher IGT/DoubleDown Interactive Zynga Caesar’s/Playtika

23.2

Female

10

87.7% Male

12.4% Female

8

6

4

2

0

84.1% Male

15.9% Female

DIGITAL COLLECTIBLE CARD GAMES

The Payers

How Digital Collectible Card Games are Monetized Games are generally monetized through the sale of starter decks, prebuilt decks, individual cards, booster packs, and online competition passes.

ARPPU for digital collectible card games, U.S. 2012

$32.98

Digital collectible card games average a conversion rate to paying user between 1% and 3% like Berserk: The Catacylsm or BloodRealm and 7% to 10% for client or browser based games such Duels of the Planeswalkers.

$26.80

Physical

Digital

Digital collectible card games average a conversion rate to paying user between 1% and 3% Digital Collectible Card Games 2013  CA S UA L G A M E S A S S O C I AT I O N

Notable Developers and Publishers

Percentage (%) Clash of the Dragons 12.9% Battle Cards 10.6% Tyrant 9.9% Titans vs. Olympians 8.9% Castlewars 8.1% Arena 9 6.4% Elements 6.1% Kongai 5.9% Kard Combat 5.7% Heroes Blade 5.5% FMA Battle 4.2% Godfield 4.1% Mytheria 4.0% The Necronomicon 4.0% Eredan iTCG 3.7%

Newcomers dominate online and mobile platforms: In the absence of traditional IP holders, small innovative card game publishers have managed to build a loyal following.

popular online card games*(percentage, U.S.) Clash of the Dragons Battle Cards Tyrant

5th Planet Games

Titans vs. Olympians

Clash of the Dragons Fantasy, digital collectible card game. Available on Facebook and Kongregate.

Castlewars Arena 9 Elements Kongai Kard Combat

Fight My Monster!

Heroes Blade

Fight My Monster!

Digital trading card game for pre-teens.

FMA Battle Godfield

Synapse

Mytheria The Necronomicon Eredan iTCG 0

3

6

9

12

15

*Based on consumer survey of digital collectible card game players as to which games they have played in the last 6 months.

Tyrant Sci-fi, digital MMO card game.

Available on Facebook and Kongregate.

DIGITAL SOCIAL COLLECTIBLE GAMES CARD GAMES

RISE OF MOBILE COLLECTIBLE CARD GAMES Mobile collectible card games exploded in popularity in Asia in 2010 and 2011 and continue to top the charts on GREE and DeNA. Notable examples are DeNA’s Rage of Bahamut and Fantasica, as well as Konami’s Dragon Collection.

collectible card game device usage*(percentage, U.S.) Desktop/laptop computer iPhone Wii PlayStation Nintendo DS Xbox 360 iPad Android phone Kindle Fire Galaxy Tab Android Nook BlackBerry phone BlackBerry PlayBook

PC and iPhone are the most popular devices among card gamers as the iPad trails behind the major consoles.

Other 0

10

20

30

40

50

60

*Based on consumer survey of digital collectible card game players as to which devices they use to play digital card games.

Digital Collectible Card Games 2013 CA S UA L G A M E S A S S O C I AT I O N

Key Terminology ARPPU

DIGITAL COLLECTIBLE CARD GAMES

Average Revenue per Paying User.

Average Revenue per User.

Online card games that involve card collecting, deck building, and often a competitive battle mechanic. Games are generally monetized through the sale of prebuilt decks, boosters, and online competition passes.

CONVERSION RATE

MONTHLY ACTIVE USERS (MAU)

ARPU

The number or percentage of users that have shifted from nonpaying to a paying status.

The number of unique users that have used an application at least once over the course of a month.

DAILY ACTIVE USERS (DAU) The number of unique users that have used an application at least once over the course of a day.

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