More than half of world video game revenues comes from digital sales and competition in the segment of mobile games is rife. Even if the game experience is quite different, smartphones are getting to compete with handheld and home consoles. What are the buying behaviours in the different target groups and which business models can producers plan? Facts and prospective insights into this fast-moving industry.

1. Mobile transforming the
game market
Cartoon Digital 2014
Laurent MICHAUD
Head of Digital Entertainment Practice
Tel: +33 (0)4 67 14 44 39
l.michaud@idate.org
5-7 May 2014, Helsinki, FINLAND
Market, Data & Trends

2. 2
Table of content
1. Video game value chain disintermediation p. 04
2. Video game market overview p. 07
3. Mobile game market in-depth approach p. 11
4. Conclusion p. 24

3. 2
Table of content
1. Video game value chain disintermediation p. 04
2. Video game market overview p. 07
3. Mobile game market in-depth approach p. 11
4. Conclusion p. 24

4. 1. Video game value chain disintermediation

5. 1.1. Traditional value chain: hardware & physical software oriented
Design &
Creation
Tools
Providers
Middleware
Providers
Developers Publishers Distributors Retailers
Home Consoles
(Microsoft, Nintendo, Sony, and a lot of traditional publishers)
Mobile Phones & Smartphones
(Apple, Samsung, HTC, Nokia, Google & Gameloft, SuperCell, King , Kabam, GungHo and many indies)
Computers and Online Games
(Zynga, King, Wargamming.net,Tencent, Blizzard Entertainment)
Smart TV
(Onlive, Playcast, Visiware, Tectoy, SreenAngels…)
Handheld Consoles
(Nintendo, Sony, and less and less traditonal publishers)
Tablets
(Apple, Samsung, HTC, Nokia, Google & Gameloft, SuperCell, King , Kabam, GungHo and many indies)

6. 1.2. Digital value chain: services & game oriented
Gamers &
UGC
Home Consoles + PSN + XBLA + Nintendo Online Store
(Microsoft, Nintendo, Sony, and a lot of traditional publishers)
Mobile Phones & Smartphones
(Apple, Samsung, HTC, Nokia, Google & Gameloft, SuperCell, King , Kabam, GungHo and many indies)
Computers and Online Games
(Zynga, King, Wargamming.net,Tencent, Blizzard Entertainment)
Smart TV
(Playcast, G-Cluster, Visiware, Apple, Google…)
Handheld Consoles + PSN + Nintendo Online Store
(Nintendo, Sony, and less and less traditonal publishers)
Tablets
(Apple, Samsung, HTC, Nokia, Google & Gameloft, SuperCell, King , Kabam, GungHo and many indies)
Providers
Design & Creation Tools
Providers
&
Middleware
Providers
Developers / Publishers / Distributors / Retailers

7. 2. Video game market overview

8. 8
Source: IDATE, November 2013
World video game market by segment, 2013-2017
(million EUR)
2.1. World video game market
6 050
10 292
14 021 14 690
11 467
10 719
13 168
17 363
20 334
21 565
6 548
6 959
6 582
5 694
4 241
5 387
6 306
6 787
6 971
6 956
1 401
1 276
1 155
1 049
956
16 955
19 013
21 129
23 633
26 091
6 833
7 917
8 893
9 868 10 812
0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
80 000
90 000
2013 2014 2015 2016 2017
Home Console Hardware Market Home Console Software Market Handheld Hardware Market Handheld Software Market
Offline Computer Software Market Online Computer Software Market Mobile Software Market

9. 9
Source: IDATE, November 2013
World video game market by segment, 2013 and 2017
2.2. The digital sub segments growth
˃ The Breakthrough of full
digital sub segments despite
next gen home consoles
arrival
• Home consoles will represent 40% of
the total market in 2017 against 31%
in 2013.
• Part of mobile games will be steady
between 2013 and 2017.
˃ A serious growth
• An average annual growth of 11.4%
for online gaming and 12.2% for
mobile gaming for the period 2013-
2017 against 11.1% for the entire
video games market.
11% 14%
20%
26%
12%
5%
10% 8%
3% 1%
31% 32%
13% 13%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2017
Mobile Software Market
Online Computer Software
Market
Offline Computer Software
Market
Handheld Software Market
Handheld Hardware Market
Home Console Software
Market
Home Console Hardware
Market

10. Source: IDATE, November 2013
2.3. Asia-Pacific, the world’s biggest video game market
World’s top video game segments in 2013
10
11%
11%
12%
6%
2%
45%
13%
Asia-Pacific, 21 billion EUR
Latin America, 2 billion EUR
Home Console Software Sales
Home Console Hardware Sales
World = 54 billion EUR
13%
26%
15%
11%
7%
18%
10%
17%
29%
12%
13%
1%
18%
10%
4%
13%
11%
13%
5%
35%
19%
Online Gaming Sales
Offline Computer Software SalesHandheld Console Hardware Sales
Handheld Console Software Sales
EMEA, 16 billion EUR
North America, 15 billion EUR
Mobile Software Sales

11. 3. Mobile game market in-depth approach

12. 12
3.1. Mobile game market value
Source : IDATE – November 2013
- 0,04 0,07 0,13 0,16 0,29
0,56
1,15
1,70
2,37
3,26
4,44
5,64
6,72
7,61
8,41
9,08
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Mobile game revenue (smartphone + tablet)
(EUR billions)
Apple iPhone SDK release
Apple iPad

13. 13
˃ Confirmation of the attraction tablets for gamers
˃ 248 million tablets sold in 2013
Source: IDATE, November 2013
Domestic tablet shipments by geographic area, 2013-2017
(million units)
3.3. The tablet explosion
0
100
200
300
400
500
600
2013 2014 2015 2016 2017
North America Europe Asia Pacifique Latin America Total

14. 14
3.4. Mobile and online segment in the race
Rank Companies 2011
1 Sony 5,78
2 Activision Blizzard 4,76
3 Microsoft 4,62
4 EA 3,87
5 Nintendo 3,81
6 Tencent 2,51
7 Konami 1,75
8 DeNA 1,72
9 Ubisoft 1,39
10 GREE 1,28
11 Zynga 1,14
12 Nexon 1,14
13 Namco Bandaï 1,08
14 NetEase 1,02
15 Disney 0,91
Rank Companies 2012
1 Activision Blizzard 4,86
2 Sony 4,59
3 Microsoft 4,56
4 EA 3,96
5 Tencent 3,63
6 Nintendo 2,78
7 DeNA 1,84
8 GREE 1,74
9 Ubisoft 1,64
10 Konami 1,40
11 Zynga 1,28
12 Apple 1,26
13 Nexon 1,25
14 NetEase 1,25
15 Take Two Interactive 1,06
Rank Companies 2013
1 Tencent 5,27
2 Microsoft 4,70
3 Activision Blizzard 4,58
4 Sony 4,33
5 EA 3,66
6 Take Two Interactive 2,45
7 Nintendo 2,93
8 Apple 2,01
9 DeNA 1,61
10 GungHo Online Ent. 1,55
11 Nexon 1,48
12 NetEase 1,43
13 Ubisoft 1,36
14 GREE 1,34
15 Google 1,20
Top 15 Game Companies by revenue ($ billions)
Source : IDATE from Newzoo

15. 15
3.5. Age 2 of mobile game companies
Company Country Revenue
2011
Revenue
2012
Net Income
2012
Revenue
Q1 2013
(Million USD) (Million USD) (Million USD) (Million USD)
GREE Japan 637.9 1 577.2 478.1 111.5
Mobage Inc.
(DeNa)
Japan 1 046.0 1 401.0 NA 528.0
Gameloft France 211.4 267.8 23.4 70.1
EA Mobile USA 242.0 269.0 NA 79.0
Rovio Finland 106.3 195.7 71.3 NA
Supercell Finland NA 100.0 NA 179.0
GluMobile USA 66.2 87.5 20.5 17.1
Gamevil South
Korea
37.6 64.8 20.7 15.5
G5 Games Sweden
Russia
1.4 2.6 NA NA
Mojang Sweden NA 41.0 28.7 NA
KongZhong China 40.9 21.2 NA 3.7
GungHo
Online
Entertainment
(GOE)
Japan 104.5 280.0 NA 410.0
2
Kabam USA 126.0
3
180.0
4
NA 270.0
5
1/ D’après www.guardian.co.uk, sur le mois d’avril 2013
2/ Q1 2013+ May 2013 Mobile revenue, d’après gamesindustry.biz. On estime que Puzzle & Dragons représente 75% de ce
chiffre.
3/ Généré à 100% via jeux Facebook
4/ Dont 100 millions USD généré par les jeux mobiles
5/ Estimation officielle de Kabam
Source : IDATE d’après chiffres publiés par Kabam
Main players of mobile game segment

16. 16
3.6. Massive sales & virality
Source : IDATE from Thinkgaming.com, July 2013
Game Publisher Fee Daily
Revenue
Estimate
(USD)
Daily
Active
Users
(million)
Daily
Installs
Estimate
ARPU/Lifetime
Value
(USD)
Candy Crush Saga King.com Free 632 867 6.68 112 500 2.87
Clash of Clans Supercell Free 527 389 4.07 29 897 3.94
MARVEL War of Heroes Mobage Free 474 650 3.53 24 347 4.13
Hay Day Supercell Free 421 911 2.84 29 383 4.53
The Hobbit : Kingdoms of
Middle-earth
Kabam Free 361 789 2.04 24 656 4.05
The Simpsons™: Tapped Out Electronic
Arts
Free 271 078 3.23 27 842 3.42
Kingdoms of Camelot : Battle
for the North
Kabam Free 215 175 1.20 2 353 5.45
Minecraft – Pocket Edition Mojang $6.99 184 322 NA 33 800 5.30
Slotomania - Slot Machines Playtika Free 175 357 1.20 22 600 3.68
Big Fish Casino – Free Slots.
Blackjack. Roulett
Big Fish
Games
Free 150 306 NA 13 864 NA
iOS top 10 games per daily revenue in USA

17. 17
3.7. Ubiquity & multi platform strategy
Source : AppData – March 2014
Facebook : King vs Zynga

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IDATE et DigiWorld sont des marques internationales déposées de l’IDATE.
All rights reserved. None of the contents of this publication may be reproduced,
stored in a retrieval system or transmitted in any form, including electronically,
without the prior written permission of IDATE
IDATE, and DigiWorld are the international registered trademarks of IDATE
Copyright IDATE 2014, CS 94167, 34092 Montpellier Cedex 5, France
3
I’m responsible for studies on consumer electronics, digital home, video games, music and related phenomena:
changing uses, new uses and devices, technology innovation, content protection and rights management.
I’m also actually involved in studies conducted by IDATE for local authorities and their expression to define
development strategies around ICT (Information and Communication Technologies) and CCI (Cultural and Creative
Industries).
I carry out techno-economic appraisals for innovation agencies and incubators on the issues of video gaming and
multimedia content development.
I participate in sector-based, market and strategic studies in the areas of ICT, television, Internet and video.
I was the originator of Game Summit, which takes place during the Digiworld Summit in November each year
(www.gamesummit.pro).
I hold a Master's degree in Economic and Financial Engineering.
˃ Laurent MICHAUD, Head of the "Consumer Electronics and Digital Entertainment" division
Author

19. Tous droits réservés – Toute reproduction, stockage ou diffusion, même partiel
et par tous moyens, y compris électroniques, ne peut être effectué sans accord
écrit préalable de l'IDATE.
IDATE et DigiWorld sont des marques internationales déposées de l’IDATE.
All rights reserved. None of the contents of this publication may be reproduced,
stored in a retrieval system or transmitted in any form, including electronically,
without the prior written permission of IDATE
IDATE, and DigiWorld are the international registered trademarks of IDATE
Copyright IDATE 2014, CS 94167, 34092 Montpellier Cedex 5, France
3
I’m responsible for studies on consumer electronics, digital home, video games, music and related phenomena:
changing uses, new uses and devices, technology innovation, content protection and rights management.
I’m also actually involved in studies conducted by IDATE for local authorities and their expression to define
development strategies around ICT (Information and Communication Technologies) and CCI (Cultural and Creative
Industries).
I carry out techno-economic appraisals for innovation agencies and incubators on the issues of video gaming and
multimedia content development.
I participate in sector-based, market and strategic studies in the areas of ICT, television, Internet and video.
I was the originator of Game Summit, which takes place during the Digiworld Summit in November each year
(www.gamesummit.pro).
I hold a Master's degree in Economic and Financial Engineering.
˃ Laurent MICHAUD, Head of the "Consumer Electronics and Digital Entertainment" division
Author

20. Tous droits réservés – Toute reproduction, stockage ou diffusion, même partiel
et par tous moyens, y compris électroniques, ne peut être effectué sans accord
écrit préalable de l'IDATE.
IDATE et DigiWorld sont des marques internationales déposées de l’IDATE.
All rights reserved. None of the contents of this publication may be reproduced,
stored in a retrieval system or transmitted in any form, including electronically,
without the prior written permission of IDATE
IDATE, and DigiWorld are the international registered trademarks of IDATE
Copyright IDATE 2014, CS 94167, 34092 Montpellier Cedex 5, France
3
I’m responsible for studies on consumer electronics, digital home, video games, music and related phenomena:
changing uses, new uses and devices, technology innovation, content protection and rights management.
I’m also actually involved in studies conducted by IDATE for local authorities and their expression to define
development strategies around ICT (Information and Communication Technologies) and CCI (Cultural and Creative
Industries).
I carry out techno-economic appraisals for innovation agencies and incubators on the issues of video gaming and
multimedia content development.
I participate in sector-based, market and strategic studies in the areas of ICT, television, Internet and video.
I was the originator of Game Summit, which takes place during the Digiworld Summit in November each year
(www.gamesummit.pro).
I hold a Master's degree in Economic and Financial Engineering.
˃ Laurent MICHAUD, Head of the "Consumer Electronics and Digital Entertainment" division
Author

21. Tous droits réservés – Toute reproduction, stockage ou diffusion, même partiel
et par tous moyens, y compris électroniques, ne peut être effectué sans accord
écrit préalable de l'IDATE.
IDATE et DigiWorld sont des marques internationales déposées de l’IDATE.
All rights reserved. None of the contents of this publication may be reproduced,
stored in a retrieval system or transmitted in any form, including electronically,
without the prior written permission of IDATE
IDATE, and DigiWorld are the international registered trademarks of IDATE
Copyright IDATE 2014, CS 94167, 34092 Montpellier Cedex 5, France
3
I’m responsible for studies on consumer electronics, digital home, video games, music and related phenomena:
changing uses, new uses and devices, technology innovation, content protection and rights management.
I’m also actually involved in studies conducted by IDATE for local authorities and their expression to define
development strategies around ICT (Information and Communication Technologies) and CCI (Cultural and Creative
Industries).
I carry out techno-economic appraisals for innovation agencies and incubators on the issues of video gaming and
multimedia content development.
I participate in sector-based, market and strategic studies in the areas of ICT, television, Internet and video.
I was the originator of Game Summit, which takes place during the Digiworld Summit in November each year
(www.gamesummit.pro).
I hold a Master's degree in Economic and Financial Engineering.
˃ Laurent MICHAUD, Head of the "Consumer Electronics and Digital Entertainment" division
Author

22. Tous droits réservés – Toute reproduction, stockage ou diffusion, même partiel
et par tous moyens, y compris électroniques, ne peut être effectué sans accord
écrit préalable de l'IDATE.
IDATE et DigiWorld sont des marques internationales déposées de l’IDATE.
All rights reserved. None of the contents of this publication may be reproduced,
stored in a retrieval system or transmitted in any form, including electronically,
without the prior written permission of IDATE
IDATE, and DigiWorld are the international registered trademarks of IDATE
Copyright IDATE 2014, CS 94167, 34092 Montpellier Cedex 5, France
3
I’m responsible for studies on consumer electronics, digital home, video games, music and related phenomena:
changing uses, new uses and devices, technology innovation, content protection and rights management.
I’m also actually involved in studies conducted by IDATE for local authorities and their expression to define
development strategies around ICT (Information and Communication Technologies) and CCI (Cultural and Creative
Industries).
I carry out techno-economic appraisals for innovation agencies and incubators on the issues of video gaming and
multimedia content development.
I participate in sector-based, market and strategic studies in the areas of ICT, television, Internet and video.
I was the originator of Game Summit, which takes place during the Digiworld Summit in November each year
(www.gamesummit.pro).
I hold a Master's degree in Economic and Financial Engineering.
˃ Laurent MICHAUD, Head of the "Consumer Electronics and Digital Entertainment" division
Author

23. Tous droits réservés – Toute reproduction, stockage ou diffusion, même partiel
et par tous moyens, y compris électroniques, ne peut être effectué sans accord
écrit préalable de l'IDATE.
IDATE et DigiWorld sont des marques internationales déposées de l’IDATE.
All rights reserved. None of the contents of this publication may be reproduced,
stored in a retrieval system or transmitted in any form, including electronically,
without the prior written permission of IDATE
IDATE, and DigiWorld are the international registered trademarks of IDATE
Copyright IDATE 2014, CS 94167, 34092 Montpellier Cedex 5, France
3
I’m responsible for studies on consumer electronics, digital home, video games, music and related phenomena:
changing uses, new uses and devices, technology innovation, content protection and rights management.
I’m also actually involved in studies conducted by IDATE for local authorities and their expression to define
development strategies around ICT (Information and Communication Technologies) and CCI (Cultural and Creative
Industries).
I carry out techno-economic appraisals for innovation agencies and incubators on the issues of video gaming and
multimedia content development.
I participate in sector-based, market and strategic studies in the areas of ICT, television, Internet and video.
I was the originator of Game Summit, which takes place during the Digiworld Summit in November each year
(www.gamesummit.pro).
I hold a Master's degree in Economic and Financial Engineering.
˃ Laurent MICHAUD, Head of the "Consumer Electronics and Digital Entertainment" division
Author

24. > Without doubt the most competitive gaming segment
> An era of volatility and massivity
> Direct access to the market for developers, but involving
new skills
> A wave of mobile gaming socialisation
> Notable appearances of multi-player titles in
unsynchronised mode
> The era of Free2Play
> Mobile gaming well supports the ubiquity of games and
will provide them their recognition.
Copyright © IDATE 201324
Conclusion

25. Thank you