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The 2017-2022 Global Game-based
Learning Market
Serious Game Revenues Spike to $8.1 Billion by 2022
Serious Play Conferenc...
About the Analyst
• Sam S. Adkins is the Chief Researcher at Metaari. Sam has been providing
market research on the learni...
About Metaari (formerly Ambient Insight)
Metaari is an ethics-based quantitative market research firm that identifies reve...
Agenda
 Metaari’s Learning Technology Research Taxonomy
 Investment Patterns
 Global Findings by Seven Regions
 Primar...
Metaari’s Learning Technology
Research Taxonomy
 We categorize serious games as a subset of the learning technology
industry not as a subset of the video game industry.
...
Have Six Buyer Segments
From Five Types of Suppliers
That Buy Eight Types of Digital Learning Products
Packaged
Content
Co...
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
2017-2022 Worldwide Five-year Growth Rates for Eight
Learning Technology Product Types
...
Longitudinal Analysis: Global Five-Year Compound Annual
Growth Rates (CAGRs) for Game-based Learning Products
0%
5%
10%
15...
Private Investment and M&A Patterns
Metaari views private investment activity as a leading
indicator. A leading indicator ...
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000
$5,500
$6,000
$6,500
$7,000
$7,500
$8,000
1997 1998...
 Age of Learning garnered an extraordinary $150 million in May 2016.
This is the highest amount ever obtained by a Game-b...
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
$2,200
$2,400
$2,600
$2,800
2014 2015 2016
Deal Value in
...
 Despite the maturity of the market for brain trainers, investors continue to fund
new cognitive edugame, brain trainer, ...
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
2010 2011 2012 2013 2014 2015 2016 H1/2017
2010-H1/2017 Global Private Inv...
 There has been a spike in acquisitions in the last two years. The
main pattern is that companies with global reach are b...
 In August 2016, the Khan Academy "acquired" Duck Duck Moose for one dollar. The
Khan Academy announced that the Duck Duc...
Key Findings: Regional Overviews of
Game-based Learning
Key Findings: The 2017-2022 Global
Game-based Learning Market
 The global growth rate for Game-based Learning products is...
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
Africa Asia Pacific Eastern
Europe
Latin
America
The Middle
East
North
A...
Regional Key Findings: Africa
 Africa has the highest regional growth rate in the world for Game-based Learning
products ...
Regional Key Findings: Asia Pacific
 The growth rate for serious games in Asia Pacific is 17.3% and revenues will more
th...
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
Bangladesh Myanmar
(Burma)
Vietnam Nepal Thailand
Phenomenal Growth Rates fo...
 Eastern Europe has a high growth rate for Game-based Learning at 37.3% and revenues
will more than quadruple by 2022. Re...
 The growth rate for serious games in Latin America is 35.1% and revenues will more than
quadruple by 2022. Revenues are ...
 Revenues of serious games will more than triple in the Middle East by 2022. The
region has a high growth rate of 29.3%.
...
Regional Key Findings: North America
 The North America region is the most mature market for Game-based
Learning, but it ...
 The growth rate for serious games is 26.6% and revenues will more than triple by
2022. Revenues are provided for the Uni...
Quantifying the Revenue Opportunities:
Metaari’s Pedagogical Educational Game
Framework
The educational game framework pro...
Quantifying the Revenue Opportunities: Metaari’s
Pedagogical Framework for Game-based Learning Products
Metaari forecasts ...
Global Versus US Game-based Learning
Growth Rates by Educational Game Type***
Global Five-
Year CAGR
2017-2022
US Five-
Ye...
Smart Games That Learn: Artificial Intelligence is
a Game Changer
 The education industry is on the verge of extraordinar...
Smart Games That Learn: Artificial Intelligence is
a Game Changer
 CogniToys' Dino robot for kids 5-9 is built on IBM’s W...
Primary Market Catalysts and Product Trends
In March 2017, Unity announced a new toolset called the XR
Foundation Toolkit ...
Primary Catalysts Driving the 2017-2022 Global
Game-based Learning Market
Booming Global
Revenues for
Game-based
Learning ...
Learning in the Bright Air: 5G Changes
Everything
 Commercial fifth-generation (5G) wireless broadband networks will be
o...
Organizational Resistance to Game-based
Learning Fading Fast
 The use of learning games has long been a staple in militar...
Game-based Learning
by Buying Segment***
Global Five
Year CAGR
2017-2022
US Five
Year CAGR
2017-2022
Consumer 16.3% 15.6%
...
Authoring Reality: The Availability of Easy-to-Use
Development Tools
 A significant catalyst is the availability of easy-...
Next-generation Cognitive Fitness Games, Brain
Trainers, and Mental Training Apps Hit the Market
 2015 and 2016 saw a wav...
Next-generation Cognitive Edugames, Brain Trainers,
and Mental Training Apps Hit the Market
Products designed to improve c...
New Early
Childhood
Learning
Game
Trends
Special
Needs
Smart
Robots
Brain
Trainers
for Kids
CodingSTEAM
Social
Emotional
V...
Serious Games for Children with Special Needs
Gain Traction
 Injini sells for $29.99. It is "Play-
based learning exercis...
The Tutoring Robots: High Demand for Next-generation
Childhood Learning Games
 Several new educational robots designed to...
A Niche Revenue Opportunity: Children’s
Games with Embedded Authoring Tools
 TinyTap sells a game for autistic kids calle...
High Demand for Mobile Early Childhood
Learning Games
 PBS KIDS, Disney, LEGO, Mattel, Sesame Street, Spin Master (Toca B...
Popularity of Language Learning Games
 Global language learning games will more than double by 2022.
This product type ha...
New Educational Game Delivery Platforms:
Native AR, VR, and MR Technology
 In AR, digital information is
overlaid on the ...
Biophysical
Environment
Augmented Objects
(Triggers)
Augmented
Environment
Semi-Immersive
VR in 2D
Four Degrees
of Freedom...
 AR and VR has been available for mobile devices for over two years, but it has
not been easy or cost-effective to build ...
 In September 2016, Russia-based NivalVR rebranded as Luden.io. In late 2016, they launched
InMind2 VR, an advanced versi...
Location-
based
Learning
Triggers
Location-
based
Learning
Objects
Proximity Perimeter
(4D Location Sphere)
4D
Presence:
L...
Location, Location: Location-based Learning is
by Definition Mobile
 The growth rate for Location-based
Learning games is...
 First-generation Location-based Services
(LBS) emphasize the position of the object
(triggers, markers, beacons, anchors...
Q&A
You can contact Sam S. Adkins at:
sam@metaari.com
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2017-2022 Global Game-based Learning Market

Sam S. Adkins, CEO and Chief Researcher, Metaari

This presentation was given at the 2017 Serious Play Conference, hosted by the George Mason University - Virginia Serious Play Institute.

I will provide key findings from two Metaari reports distributed by the Serious Play Conference: "The 2017-2022 U.S. Consumer Mobile Educational Game Market" and "The 2017-2021 Worldwide Game-based Learning Market." I will identify primary revenue opportunities and catalysts. I will discuss the recent worldwide boom in investment activity. I will also outline Metaari’s Educational Game Pedagogical Framework.

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2017-2022 Global Game-based Learning Market

  1. 1. The 2017-2022 Global Game-based Learning Market Serious Game Revenues Spike to $8.1 Billion by 2022 Serious Play Conference July 18, 2017 Presented by Sam S. Adkins, CEO, Metaari sam@metaari.com
  2. 2. About the Analyst • Sam S. Adkins is the Chief Researcher at Metaari. Sam has been providing market research on the learning technology industry for over twenty years and has been involved with electronic training for over thirty-five years. • Sam was the co-founder and Chief Research Officer for Ambient Insight between 2004 and 2016 before rebranding as Metaari in early 2017. Serious Gaming Cluster in Helsinki, Finland September 2016
  3. 3. About Metaari (formerly Ambient Insight) Metaari is an ethics-based quantitative market research firm that identifies revenue opportunities for advanced learning technology suppliers. www.metaari.com  We track learning technology in 122 countries. We have the most complete view of the international learning technology market in the industry.  Metaari focusses solely on advanced learning technology research on products that utilize psychometrics, game mechanics, robotics, cognitive computing, artificial intelligence, virtual reality, and augmented reality.
  4. 4. Agenda  Metaari’s Learning Technology Research Taxonomy  Investment Patterns  Global Findings by Seven Regions  Primary Catalysts and Product Trends  Pedagogical Forecast Framework for Serious Games  Q&A
  5. 5. Metaari’s Learning Technology Research Taxonomy
  6. 6.  We categorize serious games as a subset of the learning technology industry not as a subset of the video game industry.  The definition of Game-based Learning in our taxonomy is based on the research published by Alessi and Trollip in their seminal work entitled, "Computer Based Instruction: Methods and Development.”  Game-based Learning is defined as a knowledge transfer method that utilizes "game play" comprised of some form of competition (against oneself or others) and a reward/penalty system that essentially functions as an assessment method to quantify mastery.  All educational games are designed for behavior modification, pedagogical intervention, and/or cognitive remediation. The first two are well known but the third is relatively new. Metaari’s Learning Technology Research Taxonomy
  7. 7. Have Six Buyer Segments From Five Types of Suppliers That Buy Eight Types of Digital Learning Products Packaged Content Consumer PreK-12 Corporations - Businesses Higher Education Federal Government State - Local Government Custom Content Value Added Services Authoring Tools & Platforms Seven International Regions North America Latin America Eastern Europe Western Europe Asia Pacific Africa The Middle East Digital Reference- ware Self-paced eLearning Courseware Collaboration- based Learning Simulation- based Learning Cognitive Learning Mobile Learning Game-based Learning Robotic Tutors Legacy Learning Technology Products Next-generation Learning Technology Products Robotic Components Metaari’s Learning Technology Research Taxonomy
  8. 8. -10% -5% 0% 5% 10% 15% 20% 25% 30% 2017-2022 Worldwide Five-year Growth Rates for Eight Learning Technology Product Types Legacy Products in Decline
  9. 9. Longitudinal Analysis: Global Five-Year Compound Annual Growth Rates (CAGRs) for Game-based Learning Products 0% 5% 10% 15% 20% 25% Five-year CAGRs for Last Twelve Forecast Periods Forecast Periods
  10. 10. Private Investment and M&A Patterns Metaari views private investment activity as a leading indicator. A leading indicator is “An economic indicator that can be used to predict a change in the business cycle."
  11. 11. $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 $5,500 $6,000 $6,500 $7,000 $7,500 $8,000 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1997 to 2016 Global Private Investments Made to Learning Technology Companies (in US$ Millions) Totals Across All Eight Learning Technology Product Types Combined Deal Totals in US$ Millions $2 Billion Threshold $3 Billion Threshold $1 Billion Threshold $4 Billion Threshold $5 Billion Threshold $6 Billion Threshold $7 Billion Threshold
  12. 12.  Age of Learning garnered an extraordinary $150 million in May 2016. This is the highest amount ever obtained by a Game-based Learning company (by a wide margin) in the history of the learning technology industry. Their ABCmouse game generated over $100 million in 2015.  Israel-based Matific raised $45 million in in July 2016. They make math games for children. They have raised $57 million since 2015.  Brazil-based PlayKids obtained $15 million in June 2015 and $40 million in June 2016. PlayKids consistently ranks high in app stores. 2010-2016 Global Private Investment in Game-based Learning Companies (in US$ Millions) Tangible Play’s Osmo displays augmented learning content on the tablet as the child manipulates physical objects. Osmo raised $24 million in December 2016. They have a range of educational games for children including math, reading, and coding. Osmo’s Mo the Monster game was developed with Schell Games. Tangible Play
  13. 13. $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $2,200 $2,400 $2,600 $2,800 2014 2015 2016 Deal Value in $US Millions Leading Indicators: 2014-2016 Private Investments by Eight Learning Product Types (in US$ Millions) Next-generation Products Attracting a Wave of Investment
  14. 14.  Despite the maturity of the market for brain trainers, investors continue to fund new cognitive edugame, brain trainer, and mental training app developers.  ATENTIVmynd Games garnered $8 million in funding in April 2013 and $3 million in 2016.  London-based Brainbow raised $7 million in April 2015. Brainbow has obtained a total of $10.5 million since launch in 2014.  Berlin-based Memorado raised $3.3 million in March 2015, on top of the $1.3 million they raised in 2014. 2010-2016 Global Private Investment in Game-based Learning Companies (in US$ Millions) Akili Interactive Labs raised $30.5 million in investment in January 2016 and another $11.9 million in July 2016. Their product is quite sophisticated. Their edugame is being used in clinical trials for attention deficit and Alzheimer's. "Akili Interactive Labs is a medical device company that makes mobile video games—and not the other way around." Akili Interactive Labs
  15. 15. $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 2010 2011 2012 2013 2014 2015 2016 H1/2017 2010-H1/2017 Global Private Investment in Game-based Learning Companies (in US$ Millions) Deal Totals in US$ Millions $797.3 Million Went to 121 Game-based Learning Companies in 2016. $228.9 Million Went to 38 Game-based Learning Companies in First Half of 2017
  16. 16.  There has been a spike in acquisitions in the last two years. The main pattern is that companies with global reach are buying the best- selling serious game developers - validating the market.  Houghton Mifflin Harcourt (HMH) acquired Curiosityville, a popular virtual world for young children, in 2014 and relaunched it as Curious World in October 2015. At the time of the acquisition, HMH stated in the press that they see early childhood education as a “significant growth area for the company.” As of June 2017, they were making over $4 million a month from the subscription-based product.  Mattel acquired early childhood learning game developer Fuhu in January 2016. Fuhu sells the Nabi tablet for kids and sells branded Mattel tablets (Barbie, Hot Wheels, etc.) and content in the Nabi store.  Canada-based Spin Master bought Sago Mini and Sweden’s Toca Boca in April 2016 –two of the most popular (best-selling) early childhood learning game developers on the planet. Global Game-based Learning Merger and Acquisition (M&A) Patterns
  17. 17.  In August 2016, the Khan Academy "acquired" Duck Duck Moose for one dollar. The Khan Academy announced that the Duck Duck Moose games would be available for free. Omidyar Network gave them $3 million to fund development for two years.  London-based Brainbow launched the Peak brain trainer in 2014 and was acquired by France-based Hachette in December 2016. Peak is one of the best-selling mobile games in the world.  Microsoft bought Sweden’s Mojang, the developer of the popular Minecraft game, in 2014. They bought the MinecraftEdu assets from Finland-based TeacherGaming in January 2016. Microsoft launched Minecraft: Education Edition in late 2016 and had over 75,000 paid users by March 2017.  NetDragon (a leading game developer in China) acquired US-based JumpStart (MathBlaster) in early July 2017; JumpStart has 5 million active users and 90 million registered users. NetDragon acquired UK-based Promethean in 2015. Global Game-based Learning Merger and Acquisition (M&A) Patterns
  18. 18. Key Findings: Regional Overviews of Game-based Learning
  19. 19. Key Findings: The 2017-2022 Global Game-based Learning Market  The global growth rate for Game-based Learning products is 20.2% and revenues will more than double to $8.1 billion by 2022, up from $3.2 billion in 2017.  There are two sections in this report: a demand-side analysis and a supply-side analysis. The demand-side analysis provides revenue forecasts for seven regions, thirty-nine countries, and eight buying segments.  Africa has the highest growth rate of all the regions at a breathtaking 54.4%, followed by Eastern Europe and Latin America at 37.3% and 35.1%.  The top buying countries are identified in each region: three in Africa, nine in Asia Pacific, six in Eastern Europe, six in Latin America, four in the Middle East, two in North America, and nine in Western Europe.  The supply-side analysis provides five-year revenue breakouts for eleven game categories as defined by Metaari's pedagogical game framework.
  20. 20. 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% Africa Asia Pacific Eastern Europe Latin America The Middle East North America Western Europe Global Report Findings: 2017-2022 Growth Rates for Game- based Learning by Seven Regions
  21. 21. Regional Key Findings: Africa  Africa has the highest regional growth rate in the world for Game-based Learning products at a breathtaking 54.5%. Revenues will surge over eight times by 2022. Five- year revenue forecasts are provided for Nigeria, South Africa, and Kenya in the report.  Nigeria accounted for 27% of all revenues for Game-based Learning in Africa in 2017 and will still account for 19% of all revenues by 2022.  South Africa accounted for 20% of all revenues for serious games in the region in 2017 and will account for 17% of all revenues by 2022.  Kenya has a very high growth rate of 48.8% and revenues will spike over seven times by 2022.  Ten countries in Africa can be categorized as mobile-only countries: Mobile Learning is the only viable learning technology in mobile-only countries. Via Afrika Xander
  22. 22. Regional Key Findings: Asia Pacific  The growth rate for serious games in Asia Pacific is 17.3% and revenues will more than double by 2022. Revenue forecasts are provided for five of the top buying countries in Asia Pacific: China, India, Japan, South Korea, and Indonesia.  Revenue forecasts are also provided for the highest growth countries: Bangladesh, Myanmar (Burma), Vietnam, Nepal, and Thailand.  The revenues are heavily concentrated in China, followed by India. India will be the top buying country in the region by 2022.  In July 2017, India’s central government school system announced sweeping PreK-12 curriculum reforms with gaming as a core component for all grades. There are over 1,200 schools with over 1.3 million students.
  23. 23. 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% Bangladesh Myanmar (Burma) Vietnam Nepal Thailand Phenomenal Growth Rates for Game-based Learning in Five Countries in Asia Pacific
  24. 24.  Eastern Europe has a high growth rate for Game-based Learning at 37.3% and revenues will more than quadruple by 2022. Revenues are provided for the Russian Federation, Ukraine, Georgia, Kazakhstan, Belarus, and Azerbaijan in the report.  The vast majority of revenues are concentrated in the Russian Federation. In the 2017 market, the Russian Federation accounted for 41% of all revenues generated in the region. By 2022, the Russian Federation will still account for 28% of revenues.  Ukraine is the second-largest buying country in the region, with a growth rate of 35.4%. Georgia is the third-largest buying country in the region and the growth rate is very high at 42.7%.  An inhibitor in the region is the need to develop in alphabets such as Cyrillic or the Georgian script. Less than 10% of the Russian population can read or speak English. Regional Key Findings: Eastern Europe
  25. 25.  The growth rate for serious games in Latin America is 35.1% and revenues will more than quadruple by 2022. Revenues are provided for Brazil, Mexico, Colombia, Argentina, Peru, and Chile in the report.  The revenues are concentrated in Brazil and Mexico and to a lesser extent in Colombia, Argentina, Peru, and Chile. All six countries have very high growth rates.  Brazil was the top buying country in the region in 2017, despite that country's recent economic problems. The growth rate is 25.7% and revenues will more than triple by 2022. Regional Key Findings: Latin America PlayKids Brazil-based PlayKids (a subsidiary of the media conglomerate Movile) is the best-selling early childhood learning app in the region and popular across the planet. One of the most successful serious game developers in Mexico is Yogome, founded in 2011. They obtained $6.6 million in May 2017 on top of the $3 million they raised in 2016. Yogome
  26. 26.  Revenues of serious games will more than triple in the Middle East by 2022. The region has a high growth rate of 29.3%.  Revenues are concentrated in four countries: Turkey, Egypt, the Kingdom of Saudi Arabia (KSA), and the United Arab Emirates (UAE). In 2017, 26% of all serious games revenue in the region was generated in Turkey.  Turkey, Egypt, Saudi Arabia, and the UAE have embarked on extensive academic digitization efforts that include distributing massive numbers of tablets in the schools. The initiatives have ambitious timelines.  As part of the $1.4 billion FATİH initiative, Turkey is on track to equip over 15 million students across 42,000 schools with tablets by 2021. Educational games in Arabic are still rare in the region. Lamsa is in Arabic and designed for kids between 1-8. It is sold as a subscription by the MNOs Ooredoo (Qatar), Etisalat (UAE), Saudi Telecom, and VIVA Bahrain. Lamsa Regional Key Findings: The Middle East
  27. 27. Regional Key Findings: North America  The North America region is the most mature market for Game-based Learning, but it still has a healthy growth rate at 15.3%. Revenues will more than double over the forecast period, which is somewhat unusual for a mature market. Consumers are the largest buyers in both Canada and the US.  Canada-base Spin Master acquired Sago Mini and Sweden’s Toca Roca in 2016: these two companies develop some of the most popular early childhood learning games across the planet.  The five-year compound annual growth rate (CAGR) for Game-based Learning products in the US is 17.2% and revenues will more than double by 2022.  The highest growth rates in the US are in the higher education (tertiary), secondary education, and preschool segments at 29.4%, 27.9%, and 26.6%, respectively. Revenues will more than triple in all three by 2022.
  28. 28.  The growth rate for serious games is 26.6% and revenues will more than triple by 2022. Revenues are provided for the United Kingdom (UK), Spain, France, Germany, the Netherlands, and for the four countries in the Nordic Cluster combined.  The Nordic Cluster  The Nordic cluster (Finland, Denmark, Sweden, and Norway) is an early adopter of Game-based Learning. The education ministries in all four countries actively promote the use of games in the schools, particularly in the early grades.  Sweden’s Toca Boca (170 million downloads since 2011) and Norway’s WeWantToKnow (DragonBox) are two of the best-selling learning games in the world. Norway’s Kahoot! has over 50 million active users (32 million in the US). Kahoot! raised private equity from the Disney Accelerator in July 2017. Regional Key Findings: Western Europe Rovio (Angry Birds) closed down their education division in late 2015. The executives that worked in the group left to create serious game startups in Helsinki. Lightneer launched in November 2015 and Fun Academy launched in January 2016. Lightneer
  29. 29. Quantifying the Revenue Opportunities: Metaari’s Pedagogical Educational Game Framework The educational game framework provides suppliers with a precise method of tapping specific revenue streams and a concise instructional design specification for the development of effective educational games.
  30. 30. Quantifying the Revenue Opportunities: Metaari’s Pedagogical Framework for Game-based Learning Products Metaari forecasts revenues for eleven types of educational games based on the content domain and the primary knowledge transfer method. Assessment, augmented reality, and virtual reality educational games are new on the market and rapidly gaining traction. AI-based educational games hit the market in 2017. Pedagogical Framework for Eleven Categories of Game-based Learning Products Cognitive Fitness Games and Brain Trainers Knowledge- based Edugames Skill-based Educational Games Language Learning Educational Games Early Childhood Learning GamesAssessment and Evaluation Educational Games Role-based Educational Games Location- based Educational Games Augmented Reality Educational Games Virtual Reality Educational Games Artificial Intelligence Educational Games
  31. 31. Global Versus US Game-based Learning Growth Rates by Educational Game Type*** Global Five- Year CAGR 2017-2022 US Five- Year CAGR 2017-2022 Cognitive Fitness Games and Brain Trainers 10.3% 2.2% Knowledge-based Educational Games 11.0% 8.8% Skill-based Educational Games 17.2% 17.9% Language Learning Games 16.1% 22.0% Early Childhood Learning Games 21.6% 16.6% Assessment and Evaluation Games 25.3% 21.7% Role-based Serious Games 32.8% 25.6% Location-based Learning 30.5% 22.9% Augmented Reality Educational Games 25.5% 36.9% Virtual Reality Educational Games 47.9% 49.0% Artificial Intelligence-based Educational Games n/a n/a Total 20.2% 17.2% *** Mobile and Non-mobile Educational Games Combined 2017-2022 Growth Rates for Eleven Categories of Educational Games
  32. 32. Smart Games That Learn: Artificial Intelligence is a Game Changer  The education industry is on the verge of extraordinary innovations in knowledge transfer using cognitive computing and artificial intelligence platforms. The most well-known cognitive computing platform is IBM's Watson.  The integration of Watson into digital learning content essentially accomplishes the "holy grail" of providing true personalized (adaptive) learning by adapting in real time to a student's cognitive abilities. The software learns.  In June 2016, IBM launched a Minecraft build called Medical Minecraft, which uses the Watson platform to teach children about infectious diseases.  In March 2017, PrepBiz, a developer of game-based disaster preparedness apps for children, announced their Watson-enabled product. In April 2016, Sesame Street announced a three-year partnership with IBM to develop educational games for children using Watson. They launched the first Watson game in June 2017 in a pilot phase across PreK-12 schools in the US. It is a vocabulary game for young children. The product is the first for the "Sesame Intelligent Play and Learning Platform". IBM and Sesame Street
  33. 33. Smart Games That Learn: Artificial Intelligence is a Game Changer  CogniToys' Dino robot for kids 5-9 is built on IBM’s Watson “CogniToys have custom content modules such as questions and answers, storytelling, and games that include vocabulary, math and more to engage children in educational play.“  A company called Affectiva sells an emotion recognition platform that generates what they call "emotional intelligence". The startup recently entered the gaming industry to enable "emotion-aware" games. They released a plug-in for Unity in October 2016.  A Hong Kong company called Artha sells an edugame for young children called Little Dragon that uses the Affectiva platform. CogniToys Artha
  34. 34. Primary Market Catalysts and Product Trends In March 2017, Unity announced a new toolset called the XR Foundation Toolkit (XRFT). "It's a framework for XR developers that allows anyone, not just programmers, but artists and directors, to start making experiences without needing to start from scratch.”
  35. 35. Primary Catalysts Driving the 2017-2022 Global Game-based Learning Market Booming Global Revenues for Game-based Learning Products Growing Global Demand for Early Childhood Learning Games Resistance to Game- based Learning Fading Fast Growing Availability of Easy-to- Use Development ToolsInnovation in Augmented, Virtual, & Mixed Reality Upsurge of Next- Generation Brain Trainers On the Market Rollout of 5G Networks and the Internet of Things (IoT)
  36. 36. Learning in the Bright Air: 5G Changes Everything  Commercial fifth-generation (5G) wireless broadband networks will be operational in the 2018-2020 timeframe.  To illustrate the breathtaking speed of 5G, consider the time it takes to download a two-hour high definition movie. With 3G, it would take 26 hours to download a two-hour movie. With 4G, it takes six minutes. The download will take 3.6 seconds with 5G.  The new 5G networks also have low latency rates. Latency is the time it takes for a device to send a signal to a server and get a response. A 3G phone has a 100-millisecond latency rate. A 4G phone has a 50-millisecond latency rate. A 5G device has an ultra-low latency rate of one millisecond.  All four of the major US carriers are running 5G pilots in selected cities. South Korea, Japan, and Sweden will be the first countries with national 5G networks as early as 2018.
  37. 37. Organizational Resistance to Game-based Learning Fading Fast  The use of learning games has long been a staple in military agencies. Until recently, Game-based Learning was perceived to be incompatible with corporate culture, time consuming, and expensive.  However, the major inhibitors that previously dampened the widespread adoption of Game-based Learning are now fading fast.  Game-based job candidate assessment products are rapidly gaining traction in the corporate segment and are further eroding the resistance to Game-based Learning in the corporate segment. The corporate segment now has the highest growth rate for serious games at 35.7%. Arctic Shores
  38. 38. Game-based Learning by Buying Segment*** Global Five Year CAGR 2017-2022 US Five Year CAGR 2017-2022 Consumer 16.3% 15.6% Preschool 30.7% 26.6% Primary Education 24.1% 18.7% Secondary Education 23.5% 27.9% Tertiary Education 26.5% 29.4% Federal Government Agencies 21.8% 13.7% State & Local Government Agencies 16.0% 8.2% Corporate 35.7% 21.5% Total 20.2% 17.2% *** Mobile and Non-mobile Edugames Combined Revenues Concentrated in: Mobile early childhood learning games and brain trainers STEM-based serious games on PCs/laptops Immersive MR role playing games for security & public safety Assessment games 2017-2022 Global Game-based Learning Market by Buyer Segment
  39. 39. Authoring Reality: The Availability of Easy-to-Use Development Tools  A significant catalyst is the availability of easy-to-use and cost-efficient authoring tools. The suppliers of the tools are marketing them to non-specialists and pricing the products at relatively low price points.  In August 2016, Immersive VR Education launched their dedicated VR education platform called Engage. "The big idea behind Engage is that educators can bring existing teaching materials into the software as the basis for a lesson, or entire course, built in VR.  In early 2017, EON Reality released an upgrade of their Creator tool “that will enable non-technical users to create Augmented Reality (AR) Knowledge Injections, with no coding required.”  Another trend is the growing number of marketplaces that sell (or give away) premade virtual objects and even virtual worlds. Suppliers include Lifeliqe, EON Reality, Voxelus, WEARVR, and Odeum.
  40. 40. Next-generation Cognitive Fitness Games, Brain Trainers, and Mental Training Apps Hit the Market  2015 and 2016 saw a wave of exponential innovation in brain trainers. Next-generation brain trainers are based on Cognitive Behavior Therapy (CBT), cognitive science, neuropsychology, and educational neuroscience.  These new products integrate emotion analytics, affective computing, biosensors, neuro- sensors, attention network training (also called executive attention network), galvanic skin response (GSR), heart rate variability (HRV), AR, VR, and, most importantly, AI.  Mobile mental training apps are new on the market and are now being marketed to the 40 million people in the US that play organized sports. Cerevrum "is a cutting-edge software development group with a focus on progressive educational VR projects." Their first VR edugame was a brain trainer. "Cerevrum helps you learn and improve cognitive abilities in virtual reality. Cerevrum is rethinking learning itself and designing fun VR neuro-gaming experiences." Cerevrum
  41. 41. Next-generation Cognitive Edugames, Brain Trainers, and Mental Training Apps Hit the Market Products designed to improve cognitive functions in relatively healthy people include: Cognitive Edugames (Brain Trainers) Mental Training Apps for Athletes Mindfulness Apps Products designed to mitigate cognitive deficiencies caused by mental health problems, addiction, disability, or traumatic injury include: Products for Children with Special Needs Mental Health Treatment Products Addiction Intervention Products and Services Disability Therapy and Rehabilitation Products
  42. 42. New Early Childhood Learning Game Trends Special Needs Smart Robots Brain Trainers for Kids CodingSTEAM Social Emotional Virtual and Augmented Reality Kiko Labs, Kidzoom, Kidaptive, C8 Sciences Tynker, Toca Builder, TinyTap, CodeMonkey, Microsoft, Apple Minority Media, Nival, Cerevrum, Osmo Sphero, PrimoToys, CongiToys, Kamibot Injini, Strong Mind Puzzles, Super Speak, SideKicks Toca Boca, DragonBox, BrainPOP, PBS KIDS, PlayKids Artha, SmilingMinds, Splingo, Schell Games
  43. 43. Serious Games for Children with Special Needs Gain Traction  Injini sells for $29.99. It is "Play- based learning exercises and games that are well suited for children with cognitive, language and fine motor delays.”  Voice4u is a "simple application that consists numerous of fun and memorable images that can help assist and improve language." The app costs $99.  The Mobile Education Store (MES) sells individual apps from $5.99 to $19.99 and bundles for $74.99.  Sidekicks launched in June 2015. The product is designed for children with autism. Their app that has three virtual avatars. As parents or therapists speak, the words are spoken in the avatar's voice. Injini Voice4U Sidekicks
  44. 44. The Tutoring Robots: High Demand for Next-generation Childhood Learning Games  Several new educational robots designed to teach kids programming and related skills have entered the market including the Vortex, the Kamibot, the Fisher-Price's Code-a-Pillar, WowWee's Coji, Primo Toys' Cubetto, Makeblock's Codeybot, Aisoy, Scansorial’s Root, and Ozobot. They have relatively low price points. They are also attracting the attention of investors.  Wonder Workshop raised $20 million in funding in July 2016. They have obtained $35.9 million so far. They sell two educational robots designed to teach children coding: Dash and Dot.  A company called Sphero raised $45 million in 2015 and an additional $3.2 million in 2016. Hanson Robotics’ Professor Einstein WowWee Coji Sphero
  45. 45. A Niche Revenue Opportunity: Children’s Games with Embedded Authoring Tools  TinyTap sells a game for autistic kids called TinyTap, Turn Moments Into Games. "it provides parents and guardians with tools to build their own games and tailor them to a specific child.“  Tynker raised $7.1 million in May 2016. "Kids begin experimenting with visual blocks, then progress to text-based coding as they design games.“  A company called codeSpark obtained $4.1 million in funding in late 2016 on top of the $1.35 million raised in 2015. "This fully self-directed game places kids in a Mariostyle setting and gives them friendly characters to control through visual prompts and commands illustrating the fundamentals of how coding works.”  Israel-based CodeMonkey raised $1.5 million in February 2017 and launched their Game Builder Platform in June 2017.  In May 2017, Microsoft launched their Code Builder for Minecraft: Education Edition. Tynker CodeMonkey Microsoft
  46. 46. High Demand for Mobile Early Childhood Learning Games  PBS KIDS, Disney, LEGO, Mattel, Sesame Street, Spin Master (Toca Boca and Sago Mini) are major brands of early childhood learning game developers.  Duck Duck Moose (acquired by Khan Academy in August 2016), PlayKids, DragonBox, Osmo, THUP Games, Intellijoy, and Dr. Panda are also well-known.  In October 2016, Amplify Games and StoryToys announced a new joint venture called Touch Press merging the portfolios of Amplify Games, StoryToys, and Touchpress apps “for kids from kindergarten through middle school.” Duck Duck Moose Dr. Panda Toca Boca
  47. 47. Popularity of Language Learning Games  Global language learning games will more than double by 2022. This product type has a growth rate of 16.1% globally and even higher at 22.0% in the US.  The vast majority of language learning games on the market are mobile and consistently rank in the top twenty best-selling educational apps in almost all the 122 countries tracked by Metaari.  In March 2016, US-based Imagine Learning announced that their Imagine Learning English and Imagine Learning Español (combined) had reached over a million downloads since the launch in late 2013.  Monkimun is a Madrid-based startup founded in 2014 and is now headquartered in the US. Their Language Learning for Kids "has more than five million installations to date." In February 2016, Rovio announced a partnership with the Germany-based Papagei.com to sell English language learning games based on Angry Birds characters. The Papagei-Rovio app launched in the US in October 2016 with a relatively high price point of $8.99 a month. Imagine Learning Rovio
  48. 48. New Educational Game Delivery Platforms: Native AR, VR, and MR Technology  In AR, digital information is overlaid on the real world.  Almost all AR educational products on the market are mobile.  In virtual reality, the user is immersed in a simulated environment.  Mixed Reality (MR) is a combination of AR and VR digital content and objects in the real world. AR Flashcards Animal4D+ Luden (formerly Nival VR)
  49. 49. Biophysical Environment Augmented Objects (Triggers) Augmented Environment Semi-Immersive VR in 2D Four Degrees of Freedom VR Six Degrees of Freedom VR Metaari’s Mixed Reality Spectrum
  50. 50.  AR and VR has been available for mobile devices for over two years, but it has not been easy or cost-effective to build content for the technologies. The barriers-to-entry are fading fast with a host of new AR and VR platforms integrated into games engines and operating systems.  Microsoft’s Windows Holographic is included in Windows Creator Update.  Google’s Daydream VR technology is now native in their new Nougat OS.  Google's Tango platform uses motion tracking, "area learning", and spatial awareness technology from Intel called RealSense 3D camera. Tango creates AR content in real time. New Educational Game Delivery Platforms: Native AR, VR, and MR Technology
  51. 51.  In September 2016, Russia-based NivalVR rebranded as Luden.io. In late 2016, they launched InMind2 VR, an advanced version of their neuroscience game ported to Google's Daydream platform. • Immersive VR Education’s Apollo 11 VR app allows a user to experience the 1969 moon landing and go moon walking in vivid and accurate detail taken from actual footage. It is one of the best-selling VR games on the market. They have sold over 50,000 copies made over $500,000 in one year.  A unique (and visually stunning) VR game is Time Machine VR developed by Canada's Minority Media. "You are a time-travelling cadet tasked with exploring the Jurassic era and the ancient creatures that once ruled the prehistoric oceans. Use an array of advanced tech tools to track, examine, and discover scientifically accurate creatures like mosasaurs, livyatans, and megalodons." New Educational Game Delivery Platforms: Native AR, VR, and MR Technology Minority Media Luden.io
  52. 52. Location- based Learning Triggers Location- based Learning Objects Proximity Perimeter (4D Location Sphere) 4D Presence: Location in 3D Space and Time LBS Sensors LBL Markers and Anchors Indoor Positioning Systems (IPS) Evolving Fast Location-based Learning: Proximity Triggers Knowledge Transfer in Space and Time
  53. 53. Location, Location: Location-based Learning is by Definition Mobile  The growth rate for Location-based Learning games is very high at 30.5% and revenues will more that triple by 2022.  Developers are designing learning experiences triggered at geotagged physical locations and in time.  Location-based Learning products are used in many venues, particularly museums, galleries, tourist attractions, parks, and exhibitions. There is a cottage industry of developers that cater to this demand.  Scavenger hunt and role play games for children are common game types. Animal Trackers Tennessee Aquarium
  54. 54.  First-generation Location-based Services (LBS) emphasize the position of the object (triggers, markers, beacons, anchors).  Second-generation Indoor Positioning Systems (IPS) emphasize the position of the user via smartphone sensors including the gyroscope, compass, altimeter, and the accelerometer.  The American Museum of Natural History in New York City and the Royal BC Museum both use IPS for their exhibitions.  The Museum of Science in Boston uses ByteLight's LED system:  "Within each LED light bulb is a chip that flashes a pattern, pulsing too fast for humans to see but the perfect speed for the camera lens of a mobile device. The light tracks the user’s location with incredible accuracy.” Sophisticated Indoor Positioning Systems Define the Next Generation of Location-based Learning Google’s Tango – American Museum of Natural History GuidiGo Tour Authoring System
  55. 55. Q&A You can contact Sam S. Adkins at: sam@metaari.com

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