Tyson Greer speaks about “Innovations in the Global Mobile Edugame Market” at the Serious Play Conference 2012 ABSTRACT: Innovative mobile edugame products and new Mobile Learning value added services (VAS) across the planet create new opportunities for suppliers. Who is the buyer, and what are they buying? This session will discuss key findings and examples of mobile edugame innovations worldwide from Ambient Insight's latest Game-based Learning, Location-based Learning, Digital English Language Learning, Healthcare, and Mobile Learning market research. Besides demand, the session will address catalysts and inhibitors, venture capital trends and business models, and revenue opportunities.

1. Innovations in the Global Mobile
Edugame Market
Key Findings from Recent Ambient Insight Research
Serious Play Conference 2012
August 22, 2012
Tyson Greer, Chief Executive Officer
Ambient Insight LLC
Ambient Insight 2012

2. Introductions
Ambient Insight is an integrity-based market research firm that uses
predictive analytics to identify revenue opportunities for suppliers.
 Ambient Insight founded in 2004 by Microsoft Training and
Certification veterans that built the Microsoft Online Institute
(MOLI)
 International “boutique” analysis firm specializing in quantitative
analysis, learning technology forecasts, M&A analysis, and
competitive intelligence
 Ambient Insight tracks learning technology buying behavior
across the planet. We have buying behavior profiles for 82
countries
 Ambient Insight…
 Does not evaluate, compare, or rank the effectiveness of
learning technology products
 Does not endorse or promote companies or products
Ambient Insight 2012

3. Agenda
• Introductions & Ambient Insight’s Research Taxonomy
• Key Findings from Ambient Insight Research
• Knowledge-based Learning & Skills-based Learning
• Language Learning
• Location-based Learning & Augmented Reality
• Everybody’s Getting into the Game
• Innovative Revenue & Distribution Models
Ambient Insight 2012

4. Ambient Insight’s Learning Technology Research Taxonomy
Seven International Regions
North South Western Eastern The Middle
Asia Africa
America America Europe Europe East
Have Eight Buyer Segments
Higher Corporations Federal State - Local Associations
Consumer PreK-12 Healthcare
Education - Businesses Government Government & Non-Profits
That Buy Eight Types of Digital Learning Products
Self-paced Digital Video, Collaboration- Simulation-
Social Game-based Cognitive Mobile
eLearning Text, & Audio based based
Learning Learning Learning Learning
Courseware Reference Learning Learning
From Six Types of Suppliers
Packaged Custom Software as a Value Added Installed Tools Learning
Content Content Service (SaaS) Services & Technology Devices
These six supplier types map directly to the six
subcategories of learning technology products
Ambient Insight 2012

5. Key Findings from
Ambient Insight
Research
Ambient Insight 2012

6. Six Types of Mobile Edugame Learning Products
Ambient Insight forecasts
revenues for six types of Mobile
Edugames:
 Knowledge-based games
 Skills-based games
 Brain trainers and cognitive
fitness games
 Language learning games
 Location-based learning
games emerged in 2009
 Mobile augmented
reality games emerged
SuperBetter
in 2010
Ambient Insight 2012

7. Key Findings from Ambient Insight Research - The Market
 The growth rate for the Worldwide Game-based
Learning market is 15.4%
 Revenues will more than double from 2011 to
2016, and are concentrated in China, South Korea,
US, and Japan.
 Telecoms & NGOs provide Mobile Learning value
added services (VAS) to consumers with game-
based learning content from third-party suppliers.
 Emergence of mobile game-building tools supports
growing interest in creating edugames.
 Involvement of academic institutions in game-
based learning initiatives and entrepreneurial
accelerators are catalysts for the edugame market.
Ambient Insight 2012

8. Key Findings from Ambient Insight Research The Buyers
• Consumers are the top buyers worldwide of Mobile
Learning packaged content.
– Consumer demand for Mo-So and Mo-Lo-So energizes
the market for game-based learning content
– Suppliers capitalize on consumers’ interests: early
childhood education, tourism, health, fitness and
wellness, cognitive fitness, nature, and sustainability
– Consumers buy language learning products
• Museums have new job positions focused on
engaging/educating their audiences, and they do it
with Mo-Lo-So games
• Emergence of easy-to-use mobile game-building
tools supports cultural shift towards using game-
creation itself as an educational experience
Ambient Insight 2012

9. Knowledge-based &
Skills-based Mobile
Games
Knowledge is memorizing. A skill is
applying knowledge.
Ambient Insight 2012

10. Pharmas Buy Custom Content Services from Suppliers
for Patient Education and Product Promotion
Pfizer has released several
disease-awareness apps, InViVo
including the iPhone Les Communications
International
Meningo game creates custom games
awareness app
from Sanofi- for trade shows and
Aventis launch events
Ambient Insight 2012

11. For Medical Professionals: Reference Content, Exam
Prep, and Skill Development
Suppliers create custom content and packaged content for nursing
and medical students, and healthcare professionals
Legacy Interactive has
partnered with Elsevier (Top
Doc, visual diagnosis iPhone
quiz) and Pearson (virtual
world games, quizzes, and tips)
Bennoit Essiambre
(Speed Anatomy)
Epocrates
Ambient Insight 2012

12. For “Expert Patients”: Who Want Answers and to Play
an Active Role in Their Wellness
HealthTap received $11.5
million in 2012 “to gamify the
process of doctors answering
health questions.” Docs earn
reputation points.”
Men’s Health made nutrition advice palatable.
Ambient Insight 2012

13. Trends: Escalating Enthusiasm for Fitness
The Affordable Care Act includes $10 billion for disease prevention
and health promotion over the next 5 years. Health games are a tool.
InViVo
Suppliers tout cognitive fitness
games “backed by science”
Leading suppliers in the brain fitness
industry are: Posit Science, Dakim,
CogniFit, Scientific Learning, Lumos
Labs, and Vivity Labs.
Ambient Insight 2012

14. Gesture-based Learning Can Turn Ordinary Learning
Experiences into Extra-ordinary Immersive Education
Namco Bandai Games’ “Body
and Brain Connection” for Kinect
Humana “Dance Town”
Topics cover alcohol consumption, allergies, anatomy,
asthma, brain fitness, cardiovascular health, cognition,
dental health, diabetes, emergency response,
environmental risk, exercise and fitness, eye health, food
and nutrition, pet care, obesity and weight loss, pain,
smoking cessation, substance abuse, and safety
Ambient Insight 2012

15. Edugame Market for PreK-12 Learning is Expanding
Rapidly
Fingerprint’s Whole
Wide World game
Pokemon Typing Adventure
Nat Geo Wild TV
for Kinect
PiMZ’s Letter School
Ambient Insight 2012

16. Moving Edugames from Euphoria (Sensory Stimulation)
to Eureka (Intellectual Discovery)
October 2011, Google
Ventures and 500 Startups
awarded Stickery $350K in
seed funding.
Stickery aims to change the
model of learning-game-
apps-as-babysitter to
increasing parental
involvement in the kids’
learning experience via
personal metrics data. Stickery’s Mermaid Waters math game
iPhone App Store stats:
#1 in iPhone Education. Top in-app purchases.
Ambient Insight 2012

17. Language Learning
Mobile Games
Parlez-vous Anglais?
Ambient Insight 2012

18. Top Selling Apps Across the Planet are Edugames for
Young Children & Language Learning Apps
The top buying country in the world
for Digital English Language Learning
products is. . . The United States.
Little Pim, a
Chinese language
learning game
from PBS Kids
ASL Spelling Game
Mind Snacks teaches vocabulary
Ambient Insight 2012

19. Two Global Market Trends Converge and Boost Sales of
Language Learning Edugames
Market is expanding rapidly Telecoms, nonprofits, and
for digital Language third party suppliers are
Learning products, delivering Value Added
particularly English fluency Services (VAS) directly to
and literacy. consumers.
• Soletrando (Brazil ): based on a game show, to improve
Portuguese spelling from Vivo (telecom), Oglobo (newspaper), and
La Mark
• BBC Janala (India): mobile subscription, TV drama, and game
show for 2 cents/per 3 minutes from English in Action, BBC
• English Bean (Indonesia): web and mobile content includes
Facebook games to learn English from SK Telecom
Ambient Insight 2012

20. Location-based Mobile
Learning Games
Mobile-Local-Social
“Mo-Lo-So”
Ambient Insight 2012

21. Definitions from Ambient Insight’s Research Taxonomy
Location-based Learning Augmented Reality
is based on location-based utilizes computer-
services (LBS) technology. It generated images,
is a type of knowledge schematics, audio,
multimedia, historical
transfer enabled by
context, location data,
wirelessly-networked and other forms of
interfaces and sensors content overlaid on real-
responding to the actions world objects that are
of a user at a specific manipulated by users
location in space and time holding a mobile phone
to create a situated or wearing head-
learning experience… mounted display devices.
Ambient Insight's Research Taxonomy
Ambient Insight 2012

22. Mobile Location-based Learning: The Shift from
Distance Learning to Proximity Learning
Proximity Perimeter
(Geofence)
Location-
based
Learning
Triggers LBL
LBL Physical Anchors
Markers Presence:
Location in
Space and
Time
Location-
based
Learning
Objects
One of the interesting innovations in Location-based Learning
is the inclusion of the dimension of time as well as space.
Ambient Insight 2012

23. Blended Product Types: Location-based Learning +
Mobile Augmented Reality Learning Edugames
November 2011, PBS Kids
releases multiplayer Fetch!
Lunch Rush mobile
edugame:
 “Teaches basic math skills
by challenging players to fill
a film crew’s sushi orders.”
 Player with the fastest time
wins.
 “Room to run” is in the list
of requirements.
iTunes Review: “Had lots of fun playing this
with my little one. Just spread the numbers out
in a few rooms and watch them run like crazy.”
Ambient Insight 2012

24. Tourist Get to Know Cities They Visit
With Augmented Reality, They Can Go Back in Time
Augmented
Reality games
let tourists view
a city “Then”
and “Now.”
La Mosca developed the 7th Floor Media
1ST urban mystery- “Vancouver” AR
adventure, hyper-local
GPS learning games.
Ambient Insight 2012

25. Augmented Reality Enables “Place-based Learning” and
“Time-based Learning”
bigBigBang - Historic Market St. in San
Francisco uses archival film footage from
1906 (before the earthquake and fire that
same year.)
Full disclosure: not really a game.
Museum of London - StreetMuseum
Ambient Insight 2012

26. The Gallery Tag Game at the Brooklyn Museum is a
Mo-Lo-So Interactive Scavenger Hunt
All the tags go into
the online collection,
bridging virtual and
physical worlds.
Ambient Insight 2012

27. Hyper-local Edugames Use Mobile Mystery or Adventure
Stories to Engage Users with Their Surroundings
Clients for Urban Interactive’s reality
“Amazing Race”-style urban mission
augmented reality adventures include:
corporations, government, higher ed,
nonprofits, and consumers.
Mentira is a mobile location-
based, language learning,
mobile mystery game from
the University of New Mexico
Ambient Insight 2012

28. Game-based Learning on Location Challenges Users To
Compete Virtually or Locally
The North American growth rate for mobile location-
based edugames is a breathtaking 77.2% and revenues
will reach $25.1 million by 2016.
Humana’s Horsepower Challenge Parks Canada
Ambient Insight 2012

29. Fitness Buffs Take Their Exercise on the Road, Virtually
Bit Gym’s “Virtual Active”
for iPads fits on cardio
equipment for a solo
fitness adventure
Collaborate with friends to
summit the world’s highest
peak or hike the Inca Trail…
at your bus stop, at your
desk, in your backyard.
Bonnier R&D &
Ammunition
Ambient Insight 2012

30. Everybody Is Getting
into the Game
Easy-to-use tools enable the
“Creator Economy” to flourish
Ambient Insight 2012

31. Trend: Becoming Creators Rather than Consumers
User-generated Content and User-Generated Games
The US military agency DARPA
invited anyone to play their mobile
“disaster” game CLIQRQest and
learned how people could use social
media to organize and coordinate
resources.
GPS Mission worldwide game
platform by Orbster GmbH
enables users to create their
own mission game around their
location.
GameSalad raised $6 million in
2011 and created their “drag and
drop” game development tool “to
make everyone a game developer.”
Ambient Insight 2012

32. Innovative Revenue and
Distribution Models
New Opportunities
New Challenges
Ambient Insight 2012

33. The Rapid Rise of Mobile Learning Value Added Services
(VAS) Creates New Opportunities for Edugames
In 2010, Ambient Insight identified a
new type of product: Mobile
Learning VAS, which are coming on
the market at a rapid pace across
the globe, particularly in developing
countries.
 Nigeria – MNT Education
Bundle: Consumers can
purchase a netbook or laptop
bundled with English, math,
and science edugames;
Encyclopedia Britannica;
learning tools, & access to
educational content.
Ambient Insight 2012

34. 2008-2011 Explosion of Mobile Learning Value
Added Services (VAS) Products
Mobile Learning VAS Products
100
90
80
70
60
50
40
30
20
10
0
2008 2009 2010 2011
On average, 5-6 new Mobile Learning VAS products are launched every
month. Most of them are sprouting up in developing economies. This has
major implications for the Mobile Learning industry. Suppliers in
developing countries are now driving the innovation in Mobile Learning.
Ambient Insight 2012

35. Innovative Revenue and Distribution Options
The price of mobile apps is dropping.
The revenues are rising.
Revenue Models: Distribution Channels:
 Sponsorships nonprofits &  Trend to digitization is
worldwide
commercial
 Amazon Appstore adds in-
 Advertising app purchasing (2012)
 Subscription services  Submit products to
commercial digital libraries
 Micropayments for virtual adding mobile content, e.g.
OverDrive
items
 Partner with home school
 In-app purchases suppliers, device suppliers,
publishers, and carriers
 Free, lite, and premium
 Dozens of specialty app
stores across the planet
Ambient Insight 2012

36. Q&A
Ambient Insight’s Free Resource Library at:
http://www.ambientinsight.com/News/PublishedContent.aspx
Tyson@ambientinsight.com
Ambient Insight 2012