iOS and Android game insights presented at Smartphone and Tablet Gaming Summit in SF, garnered from Flurry and Activision mobile game publishing partnership. Insights and data include: market size; expected DAUs; revenue potential; demographic differences, etc. per game type / genre; usage behavior; spending behavior; demographic (age, gender) differences across tablet vs. smartphone form factor and game genres.
4. iOS & Android Addressable Market
GLOBAL
POPULATION
7 BILLION
Sources: United States Census Bureau, based on Accenture analysis
5. iOS & Android Addressable Market
GLOBAL POPULATION 7 BILLION
MOBILE PHONE
SUBSCRIPTIONS
6 BILLION
Sources: US Census Bureau; International Telecommunication Union; based on Accenture analysis
6. iOS & Android Addressable Market
GLOBAL POPULATION 7 BILLION
MOBILE PHONE SUBSCRIPTIONS 6 BILLION
INTERNET
USERS
2.3 BILLION
Sources: US Census Bureau; International Telecommunication Union; based on Accenture analysis
7. iOS & Android Addressable Market
GLOBAL POPULATION 7 BILLION
MOBILE PHONE SUBSCRIPTIONS 6 BILLION
INTERNET USERS 2.3 BILLION
iOS & ANDROID
550 MILLION
Sources: US Census Bureau; International Telecommunication Union, Flurry; based on Accenture analysis
8. iOS & Android Addressable Market
GLOBAL POPULATION 7 BILLION
MOBILE PHONE SUBSCRIPTIONS 6 BILLION
9%
VS
MOBILE
INTERNET USERS 2.3 BILLION
24%
VS
INTERNET
iOS & ANDROID
550 MILLION
Sources: US Census Bureau; CIA World Factbook; Flurry; based on Accenture analysis
9. Penetration of WW Population, 5 Years After Launch
8X 3X 2X
8%
4%
3%
1%
PCs (1988) Facebook (2009) Internet (2000) iOS & Android (2012)
Sources: United States Census Bureau, International Telecommunication Union, Facebook, Flurry
10. Apps Eating the Internet
U.S. MOBILE APPS VERSUS WEB CONSUMPTION
WEB BROWSING MOBILE APPS
94
81 MINUTES
70 66 74 MINUTES 72
64 MINUTES
MINUTES
MINUTES MINUTES
MINUTES
43
MINUTES
June 2010 Dec 2010 June 2011 Dec 2011
Sources: comScore, Alexa, Flurry Analytics; Smartphones & Tablets, U.S.
11. iOS & Android Games Command Consumer Time
DAILY SMARTPHONE APP CONSUMPTION, MINUTES PER CATEGORY, WW
7
7 10
10 12
11
24
15
25 24
Q1 2011(68 minutes) Q1 2012 (77 minutes)
Games Social Networking News Entertainment Other
Source: Flurry Analytics, Smartphones, WW
12. iOS & Android Games Eat Traditional Gaming Revenue
U.S. PORTABLE GAME SOFTWARE BY REVENUE
19%
34% 36%
11%
57% 58%
70%
9% 6%
2009 2010 2011
iOS & Android Sony PSP Nintendo DS
Source: Flurry Analytics, The NPD Group; Flurry analysis & estimates
13. Indies Dominate on iOS & Android
INDIE VS. ESTABLISHED GAME SESSIONS ON iOS & ANDROID, WW
40% 32%
44%
60% 56%
68%
Q1 2010 Q1 2011 Q1 2012
Independent iOS & Android Game Developers Game Companies from other Platforms
Source: Flurry Analytics
14. Business Model: App Store Top 25 Grossing
UNITED KINGDOM FRANCE GERMANY
4%
16%
24%
84% 96% 76%
UNITED STATES CHINA TOTAL
8% 12% 13%
92% 88% 87%
IN APP PURCHASE PRICING PREMIUM PRICING
Source: iTunes App Store, May 2012, Flurry analysis
15. Apps vs. Games: App Store Top 25 Grossing
UNITED KINGDOM FRANCE GERMANY
28% 40%
36%
64% 60%
72%
UNITED STATES CHINA TOTAL
12% 12%
30%
70%
88% 88%
GAMES APPLICATIONS
Source: iTunes App Store, May 2012, Flurry analysis
19. Sessions per Category, Smartphones vs. Tablets
Smartphones Tablets
Games 50% Games 58%
Social Networking 22% Social Networking 14%
Entertainment 6% Entertainment 11%
Lifestyle 5% Utilities 3%
Utilities 4% News 2%
News 2% Books 2%
Other 11% Other 10%
Source: Flurry Analytics, Q1 2012; 160,500 apps, 97 Billion Sessions
20. Time of Day Usage, Smartphones vs. Tablets
Source: Flurry Analytics
26. Building & Simulation
Examples Age Distribution
40%
35%
30%
25%
20%
15%
10%
5%
Smurfs’ Village Kingdoms of Camelot 0%
13-17 18-24 25-34 35-54 55+
Key Genre Attributes
• Building & simulation gameplay
49% 51%
• “Empire” expansion / leveling up
DAU 400,000
• Content / power-up unlocks
Monthly Revenue $1,200,000
• Has both virtual currency & goods
Investment (minor) $100,000
• Light social collaboration & sharing
Investment (major) $500,000
27. Social RPG
Examples Age Distribution
40%
35%
30%
25%
20%
15%
10%
5%
Crime City Original Gangstaz 0%
13-17 18-24 25-34 35-54 55+
Key Genre Attributes
• Text-based RPG mechanic
79% 21%
• Player-vs-player gameplay
DAU 150,000
• Energy / HP depletion
Monthly Revenue $600,000
• Clan / team dimension + message / chat
Investment (minor) $100,000
• Mission-based & level progression
Investment (major) $400,000
28. Gamer’s Game
Examples Age Distribution
50%
40%
30%
20%
10%
Infinity Blade II Real Racing 2 0%
13-17 18-24 25-34 35-54 55+
Key Genre Attributes
• Platform-leading graphics
91% 9%
• Strong physics engine / middle-ware
DAU 50,000
• Sports / battle / racing style sub-genres
Monthly Revenue $400,000
• Defined win-lose outcomes
Investment (minor) $100,000
• Premium pricing model, often $4.99+
Investment (major) $400,000
29. Texas Poker / Casino
Examples Age Distribution
40%
35%
30%
25%
20%
15%
10%
5%
Zynga Poker Card Ace: Casino 0%
13-17 18-24 25-34 35-54 55+
Key Genre Attributes
• Synchronous, Online Multi-player
68% 32%
• Private + public tables, chat enabled
DAU 200,000
• Texas Poker dominates, inherently social
Monthly Revenue $1,000,000
• Blend of competition + social
Investment (minor) $100,000
• Acquiring chips = perfect freemium model
Investment (major) $400,000
30. Flurry Services
Analytics: Increase Your App Engagement and Retention
1 • Free and powerful. Leading app analytics (iOS, Android, WP, BB, J2ME, HTML5)
• Understand and segment app audiences to maximize engagement and revenue
AppCircle: Build & Grow Your App Audience
2 • Acquire users with high-quality app recommendations and videos (iOS, Android)
• Win-back your best users to build the most loyal and best monetizing audience
AppSpot: Maximize Your App Audience Revenue
3 • 2X revenue, reduce cost with free ad serving and mediation, yield-optimized ads
• Max eCPMs with mediation and yield optimization leveraging Flurry’s big data set
• Max eCPMs selling direct, segmented parts of your audience to top advertisers
Andreessen wrote that every sector is being disrupted by software.But the truth is that APPS are eating software. They are the deliver mechanism of software today, and growing faster than anything any of us have ever seen.Read and reference the WSJ article, “Why Software is Eating the World” by Marc Andreessen, August 11, 2011.
VS. TAM, iOS & Android only ¼ PENETRATED. LOTS OF GROWTH LEFT.TOTAL ADDRESSABLE MARKET OF AFFLUENT ADULTS (TAM)ADULT = 15 – 64 YEAR OLDS (INTERNATIONAL MONETARY FUND)AFFLUENT = MIDDLE-CLASS AND ABOVE
VS. TAM, iOS & Android only ¼ PENETRATED. LOTS OF GROWTH LEFT.TOTAL ADDRESSABLE MARKET OF AFFLUENT ADULTS (TAM)ADULT = 15 – 64 YEAR OLDS (INTERNATIONAL MONETARY FUND)AFFLUENT = MIDDLE-CLASS AND ABOVE
Jan 2012 – 36hrs online according to comscore. Europe: Feb 2012 – 28.2hrs online according to comscore.
… but they are challenged for the first time by other categories. With more competition for the consumer’s time, games companies must work harder and smarter to retain and monetize the users they do acquire.
Games are a disruptive force in the total gaming category, decimating the portable (aka handheld) category, traditionally dominated by Nintendo and Sony.
Men lead women in spending, with the greatest difference occurring in the 25 – 34 year old age group. For freemium games, spending is concentrated between the ages of 25 - 54, with men in this age range representing nearly half (45%) of spending and women representing another third (32%).