Gamesindustry.com Black Book Q3&Q4 2010 by Newzoo

Q3&Q4 2010

COLOGNE 15-20 AUG | AUSTIN 5-8 OCT

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DUTCH GAMES ASSOCIATION

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So what is this Black Book? Dear readers, You are holding the first edition of the Gamesindustry.com Black Book: Q3&Q4 2010. It is set up to provide practical info to boost the effectiveness of your visits to key international events. What makes the Black Book unique? International. The games business is per definition an international affair. Not surprising that companies in the Black Book originate from five continents. In addition to the 81 participating companies from all over the globe, we have also added some fresh market data coming from our Gaming Monitor surveys in the US, United Kingdom, Germany, France, Netherlands and Belgium. Cross-platform & genre. Online connectivity has impacted every game platform and genre, and facilitated a wide range of new business models. Innovation and new game formats arise from new game companies and co-operations between the “casual” and “core” markets, previously seen as separate worlds. We are happy to present a mix of these worlds in the Black Book. Focused on NOW! Wouldn’t it be great to know what companies currently are looking for instead of reading through non-specific company profiles? That is exactly what the Black Book does, facilitating a more relevant and focused business development effort. Direct contact. Who is exhibiting and visiting this event? Would it be possible to have an appointment on the spot? The Black Book shows who is visiting and who is exhibiting for each of the three key events. Print & online. The Black Book is, in principle, a print extension of the portal Gamesindustry.com. For the latest information, jobs, business requests of all companies in the Black Book, please visit their profiles online. We hope you appreciate the Gamesindustry.com Black Book, which we will publish twice a year. We welcome any feedback, so please let us know what you think of it and how we can do even better with the Q1&Q2 2011 edition, to be distributed at Casual Connect Europe, GDC San Francisco and a third event yet to be announced. Have a great event! Best regards, Peter Warman CEO Newzoo/Gamesindustry.com peter@newzoo.com

Contents p. 07-13 Market Data Latest consumer-survey data on the hottest topics in the market including casual, social and mobile games as well as MMOs and digital distribution.

p. 15-27 Looking for: Game Platforms Companies that offer publishers and distributors assistance in increasing revenues or cutting costs through digital distribution, innovative monetization solutions and scaleable hosting solutions.

p. 29-39 Looking for: Games Publishers that are looking for unique content to offer their audience based on license fees, revenue share or alternative business agreements.

p. 41-53 Looking for: Distribution Developers that own unique game content and/or intellectual property and are seeking partners to distribute this to new audiences or alternative platforms.

p. 55-69 Looking for: New Business Companies that offer custom services for the games industry to develop better and/or localized games; Companies that can support your international and local PR or legal effort; Companies seeking investment opportunities.

p. 71-76 Looking for: People Companies that are seeking new or experienced talent to join their work force; Trade and event organizations seeking new members and partners to benefit from their activities.

All content is publically accessible and well SEO-ed

Find relevant services, Browse jobs and business games, platforms & partners opportunities across the globe

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Facts: > 15,000 unique visitors/month > 40% EU, 40% US, 20% Asia > 500 contact requests/month Become a member at Gamesindustry.com/register Members add and update content daily

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annual membership comes free with your first Black Book listing

LOOKING FOR: GAME PLATFORMS

MARKET DATA

MARKET DATA: CONSOLES

Navigating back to growth The recession has hit the traditional console games hard, slowing down growth to almost nil. As digital distribution, new hardware (e.g. Kinect) and new (online) business models expand, growth will pick up again and accelerate as the new generation consoles hit the market within two years. Data includes handheld console platforms such as PSP and DS. 60%

50%

65% 60%

50%

62% 42%

56%

46% 41%

43%

37%

% of total online population aged 10 yrs and up that play games on consoles (June 2010)

Newzooâ&#x20AC;&#x2122;s Casual, Social & Mobile Gaming Monitor The Casual, Social & Mobile Gaming Monitor aims to provide in-depth and up-todate consumer market data on the hottest topics and business models in the games market. Main platforms are social networks, casual game websites and mobile devices (including iPod, iPhone and iPad). It also includes an update on other game platforms: consoles, MMOs and PC games (boxed products and via digital distribution). The surveys have been performed in the US, UK, Germany, France, the Netherlands and Belgium involving more than 10,000 respondents from national panels, representative of the total online population of 10 years and older (field work from June 2010). The survey distinguishes seven main areas: Console games, including games for hand held consoles such as Nintendo DS and Sony PSP Online casual gaming portals, offering free flash games, skill games, premium downloads etc. Social networks, including Facebook as well as local or niche social networks MMOs, including Free-to-Play, Pay-to-Play MMOs as well as MMO portals Mobile devices, including all mobile phones, iPod Touch and iPad PC boxed games, including second-hand trade PC games via digital distribution, including filesharing

General data includes: Sex and gender Home situation General interests/hobbies

TV channel preferences info: www.todaysgamers.com Ownership of Mac computers thijs@newzoo.com Gaming on the Mac Newzoo Casual, Social & Mobile Frequency of play Gaming Monitor

MARKET DATA: ONLINE CASUAL

Conversion, conversion, conversion This market has been pioneering new online business models for games for years, including Try & Buy games, online VIP subscriptions, playing to win prizes, virtual currency and (in-game) advertising. The market has matured as the business models have been optimized and, most importantly, grown to be accepted by a large number of players. Social networks provide an opportunity as well as a challenge to all main existing online casual destinations. 55% 51%

46% 41% 22% 19%

40% 35%

43% 45%

46% 45%

% of total online population aged 10 yrs and up that play online casual games(June 2010)

The â&#x20AC;&#x153;hardcoreâ&#x20AC;? casual gamer Although a large share (39%) of Dutch casual gamers play games less than once a week, there is a growing group of casual gamers that are playing games as a fixed part of their daily activities. 20% of all female casual gamers in the Netherlands plays daily. This share is smaller for men, but the share of men paying to play games is larger compared to women. How frequently, on average per week, do you play games on online 'casual' websites? (%)

Netherlands

11 7

Less than once a week

20 39

Female

3-4 days a week 5-6 days a week

11 Male

1-2 days a week

Daily

Base: all Dutch online casual gamers (June 2010)

Online casual topics include: Brand awareness Favorite sites Brand values

Consumer spending Time spent Downloading premiums Genre preferences

info: www.todaysgamers.com thijs@newzoo.com Newzoo Casual, Social & Mobile Gaming Monitor

MARKET DATA: SOCIAL GAMING

On everyoneâ&#x20AC;&#x2122;s agenda There is no game company out there that does not have social networks high on the agenda. The big question is if playing games on social networks is tapping into a new group of consumers, adding more time and money spent to existing gamers or taking time , players and budget away from game websites and consoles. 2010 will be a year of transition for most social gaming companies. Transition from management of explosive growth to search for higher efficiency. 41% 41%

37%

46%

32% 28%

37% 32%

35% 36%

28% 27%

% of total online population aged 10 yrs and up that play games on social networks (June 2010)

Marketing your social game There is an abundance of games available on Facebook. With the size of investment in social games increasing one can no longer take the risk to simply rely on the quality of the game and the viral effect of the social network. Building or using well known (game) brands and maintaining communities are crucial to success. What makes you decide to try a new game? (%) United Kingdom

Its free to try

5 3 32

11 12 30

A recommendation by a friend I liked another game from the same publisher I saw an advertisement for it I know the brand/maker of the game Special offer or promotion Other

Base: all social gamers in the UK (June 2010)

Social gaming topics include: Spending Time spent Favorite activities

Motivation to play a game Motivation to stop playing Feature preferences Genre preferences

info: www.todaysgamers.com thijs@newzoo.com Newzoo Casual, Social & Mobile Gaming Monitor

MARKET DATA: MOBILE DEVICES

Apple versus handheld consoles Apple is clearly shaping this market with its iPhone, iPod Touch and iPad. Other mobile phone brands benefit as consumers become accustomed to the fact that content and games on mobile devices actually cost money. The touch interface will have a large impact on the games market as it is widely adapted by the next generation. Appleâ&#x20AC;&#x2122;s mobile devices are already challenging DS and PSP in terms of number of players and, most importantly, number of payers. 41%

52% 32%

45%

43%

33%

40%

30%

31%

25% F

33%

20% F

% of total online population aged 10 yrs and up that play games on mobile phones, iPod Touch and iPad (June 2010)

To download or not to download Approximately half of all French mobile gamers only play pre-installed games. When it comes to pushing the download button a lot of different factors come into play. For the French and most other countries price and the availability of a free trial version is key. 27% of the French listen to their friends advice. What are the most important reasons in deciding to download or play a game on your mobile device? (%) 39

The price

France

Whether a trial or demo version is available

Recommendation from friends or relatives

Reviews from blogs or news sites

Promotions and special offers If I know the developer or brand behind the game

15 11

Latest or newest releases How the game is advertised or marketed

Base: all French mobile gamers that download games (June 2010)

Mobile device topics include: iPod, iPhone, iPad ownership Mobile phone brand Genre preferences

Installed vs. download games info: www.todaysgamers.com Download source thijs@newzoo.com Motivation to download Newzoo Casual, Social & Mobile Spending Gaming Monitor

MARKET DATA: MMO’S

Free-to-play is here to stay World of Warcraft remains the best revenue-grossing MMO game with their paid client and subscription model but the rise of so-called Free-to-Play (F2P) MMOs has taken the MMO business to a new level. As the quality of F2P MMOs improves, more players will convert to payers using virtual currency to maximize their game experience. Prepaid virtual currency cards in retail have given an enormous boost to virtual currency sales for MMOs in the US. A trend not yet seen on such a scale in Europe. 33% 32% 30% 28% 24% 20% 17% 16% 16% 14% 14% 7%

% of total online population aged 10 yrs and up that play F2P & P2P MMO games (June 2010)

How many MMOs can you handle? MMOs are developed to be a continuous, ever expanding, experience servicing a connected community of players. With the rise of numerous Free-to-Play MMOs it has become easier for gamers to move from one world to another in their quest for their ideal MMO. German MMO players tend to stick to a maximum of three a year (68%). How many different ‘Free to Play’ online multiplayer games have you played in the last 6 months? (%)

Germany

4 22 1

2119

2 to 3 4 to 6 7 to 10 11 or more

4641 Base: all German F2P MMO players (June 2010)

MMO topics include: Free to Play vs. Pay to Play Browser vs. client based Number of MMOs played

Use of MMO portals Frequency of play Spending Business model

info: www.todaysgamers.com thijs@newzoo.com Newzoo Casual, Social & Mobile Gaming Monitor

MARKET DATA: PCBOXEDPRODUCT

The long tail Considering the force of digital distribution and online gaming there is no room for growth in this segment, but â&#x20AC;Ś.. a new driver for PC games has proven to be the high-end casual games market that has matured into a multi-billion dollar business. The mainstream appeal of these games has inspired numerous retail chains to offer boxed casual games giving sales of boxed PC games a fresh boost.

41%

34%

30%

56%

50%

46%

49%

31%

36%

26% F

38%

26% F

% of total online population aged 10 yrs and up that play boxed PC games (June 2010)

Boxed products make good gifts Fourty percent of all US PC gamers that play PC games that have come as a boxed product have never paid for games in this way. Not surprising if you consider the popularity of games as a gift. Only 5% spends more than 25 dollar per month on average on boxed PC games, typical for the long tail of (casual) PC games. How much money do you spend on boxed games on average per month? Nothing (Gifts, promotions)

United States

Less than 1 USD

Between 1 and 3 USD Between 3 and 5 USD

17 10 7

Between 5 and 10 USD Between 10 and 25 USD More than 25 USD

Base: all US people playing PC boxed games (June 2010)

PC boxed product topics: Demographics Spending Paying vs. gifts

Boxed vs. digital distribution info: www.todaysgamers.com Country comparison thijs@newzoo.com PC vs. Console Newzoo Casual, Social & Mobile PC vs. Mac Gaming Monitor

MARKET DATA: PC DIGITAL DISTR.

Easier for everyone There is a large shift in revenues from traditional retail to digital distribution as a variety of new and traditional retail companies offer direct game downloads, casual and core. Unlike the situation of the music industry years ago, large publishers embrace digital distribution as it does away with the huge secondhand market hurting them and forcing them to keep prices high. Digital distribution will also boost the Mac as game platform. 40%

42% 28%

30%

41%

28%

31%

22% M

20% F

32% 15% M

% of total online population aged 10 yrs and up that download PC games (June 2010)

You can download games everywhere Amazon offers thousands of games to download. It illustrates how fast digital distribution of games has become mainstream. Still, 25% of Belgians that download PC games chooses to do so directly from the publisher. 39% admits to have used filesharing software such as torrents to obtain games. If you download games, where do you download your games from? (%)

Belgium

Do you download games by using filesharing software

Do you download games from the game / publishers website

Do you download games from download websites / online shops

Do you download games from online game portals

Yes No

Base: all Belgian gamers that download PC games (June 2010)

PC digital distribution: Demographics Spending Publishers website

Online shops Downloading services Filesharing Casual game portals

info: www.todaysgamers.com thijs@newzoo.com Newzoo Casual, Social & Mobile Gaming Monitor

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LOOKING FOR:Black PEOPLE The next edition: Book Q1&Q2 2011 Wanna be in the next Black Book?

to be distributed at

Casual Connect Europe, February 2011 GDC San Francisco, February 28 - March 4, 2011 A third event to be announced

Half page 499 euro e

Full page 749 euro

includes annual membership of gamesindustry.com

gamesindustry.com/blackbook

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