2011 Flash Games Market Survey

December 20, 2011

2011 Flash Games Market Survey Results

OVERVIEW

2

About The Survey !   The Flash Games Market Survey is the annual summary of the top trends in the

Flash games industry. Organized each year by Mochi Media with the support of partners, the data in the survey delivers key insights for the Flash game developer and publisher (website / portal owner) audiences. The findings in this survey also help determine the content of Flash Gaming Summit, the leading annual conference for Flash games, and is reflected in the March 2012 event with the theme “Maximize Your Game”.

!   1,075 total survey responses

OVERVIEW CON’D

3

About Mochi Media !   Mochi Media is the world’s largest browser-based games network, with

more than 150 million monthly active users and 55,000 games on more than 60,000 publisher websites. Mochi Media’s game development products and services enable developers to track, distribute, and monetize their games across the web. Mochi Media is headquartered in downtown San Francisco and is a wholly-owned subsidiary of Shanda Games Limited (NASDAQ: GAME)

!   Online game development continues to be int’l phenomenon !   Developers embracing dual platforms: first online, then mobile !   Online developers still learning how to monetize on mobile !   App sales and ads top current mobile monetization methods !   Big interest in 3D games !   Majority of devs who don’t make games full-time are students !   Over 80% of devs want game development to be full-time job

HIGHLIGHTS

4

Year over year highlights: !   Game traffic and revenue have increased for almost 60% of

game developers !   Developers maximizing their monetization strategy by

utilizing more channels !   AS3 and FlashDevelop are top development tools

HIGHLIGHTS, CON’D

5

A few definitions of terms used in this survey:

!   Devs / developers: Game developers, the ones making the games.

! Pubs / publishers: website / portal owners where players interact with the games.

!   Sponsors: publishers who pay for games for the purpose of brand & link placement to drive traffic and/or access to exclusive content.

SOME DEFINITIONS

6

Demographic Info

7

DEVELOPER, PUBLISHER, OR DEV-PUB?

8

vs. 2010: More publishers responded this year.

Respondents Identified As Either A Developer, Publisher, Or Both

71%

8%

21%

Developer

Publisher

Developer and Publisher

Source: Flash Games Market Survey 7/2011

DEVELOPER & PUBLISHER LINES BLUR

9

Developer 71%

Dev-‐Pub 21%

There Is Overlap Between Developers And Publishers


FLASH GAMES INDUSTRY IS STILL MALE

10

95%

5%

What is your gender?

Male Female

vs. 2010: Roughly the same, slight increase in female respondents


OVER 85% OF FLASH GAMES COMMUNITY UNDER 34

11

vs. 2010: No significant changes

Which Age Group Do You Fall Into?

12.30%

33.80%

40.70%

10.40%

2.00%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

2-17 18-24 25-34 35-44 45-55


Top 10 countries (% change from 2010) !   U.S. 21 % (+2%) !   U.K. 10% (+2%) !   Canada 6% (+1%) !   Russian Federation 6% (no change) !   India 3% (-1%) !   Italy 3% (+2%) !   Ukraine 3% (-1%) !   Brazil 3% (no change) !   Indonesia 3% (no change) !   Germany 3% (+1%)

FLASH GAMES INDUSTRY CONTINUES TO BE INT’L

12

vs. 2010: The same countries round out the top 10 with the exception of Italy and Germany (replacing Australia and Poland). We continue to see strong worldwide interest and inroads in the Flash games industry as only 3 of the top 10 countries speak English as their first language.

What Country Do You Live In?


Developer Responses

13

Developers, Including Developers & Publishers

If not full-time, what do you do? !   #1 answer = “Student” at 33%

NEARLY 1 IN 4 DEVS MAKING GAMES FULL-TIME

14

What Percentage Of Your Time Do You Spend Creating Games?

35.8%

23.7%

12.4%

4.2%

23.8%

0% 5% 10% 15% 20% 25% 30% 35% 40%

0 – 25%

26 – 50%

51 – 75%

76 – 99%

100%

vs. 2010: No data available

Devs Only

Devs & Pubs Both

100% 23.7% 24.1% 23.8%

76-99% 4.3% 4% 4.2%

51-75% 11.2% 16% 12.4%

26-50% 24% 22.6% 23.7%

0-25% 36.8% 32.7% 35.8%


DEVELOPERS STICKING AROUND

15

Devs Only

Devs & Pubs Both

Less than 1yr 27.1% 16.6% 24.6%

1-2 yrs 32.9% 27.6% 31.7%

2-5 yrs 27.7% 40.2% 30.6%

5+ yrs 12.3% 15.6% 13%

vs. 2010: The “1-2 years” category decreased by over 3% as those developers moved into the “2-5 years category”, which is also up over 3%.

How Long Have You Been Creating Flash Games?

24.6%

31.7%

30.6%

13.0%

Less than 1 year

1-2 years

2-5 years

5+ years


80% OF DEVELOPERS WANT MORE THAN A HOBBY

16

What Is Your Real Goal In Making Games?

17.7%

38.1% 20.1%

14.7%

9.4%

Just a hobby, probably always will be To become a full-time indie developer

To create a game studio

To be the biggest, most successful game studio ever! Other (please specify)

vs. 2010: No data available.

Devs Only

Devs & Pubs Both

Just a hobby 18.5% 15.1% 17.7% Become full-time indie 39.8% 32.7% 38.1% Create game studio 19.1% 23.1% 20.1% Biggest, most successful studio ever 13.2% 19.6% 14.7%

Other 9.3% 9.5% 9.4%


DEVELOPERS PREFER AS3 & FLASHDEVELOP

17

Devs Only

Devs & Pubs Both

hAxe 2.3% 6.5% 3.3%

FlashDevelop 51.1% 56.3% 52.3%

Flixel 12.4% 11.1% 12.1%

AS3/Flex 24.7% 26.6% 25.1%

AS3/Air 21.3% 23.6% 21.8%

AS3 77.9% 78.9% 78.2%

AS2 18.7% 23.6% 19.8%

For Flash Development You Use

19.8%

78.2%

21.8%

25.1%

12.1%

52.3%

3.3%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%

AS2

AS3

AS3/Air

AS3/Flex

Flixel

FlashDevelop

haXe vs. 2010: There was a huge jump in AS3 adoption, from 51% in 2010 to 78% in 2011. FlashDevelop is also a surprise with over 50% adoption- it was added as an option after being a popular fill-in for 2010.


DIALING DOWN ON GAME QUANTITY

18

vs. 2010: There was a shift to fewer games in 2011, with all category options decreasing except for the “1-2” category, which increased. The “N/A” category also increased slightly.

Devs Only

Devs & Pubs Both

1-2 games 51.6% 39.7% 48.8% 3-5 games 25.4% 27.1% 25.8%

6-10 games 7% 15.1% 8.9% 11-20 games 3.1% 6% 3.8% 21+ games 1.7% 4.5% 2.3%

N/A 11.2% 7.5% 10.3%

How Many Total Published Flash Games Have You Created In The Past Year?

48.8%

25.8%

8.9% 3.8% 2.3%

10.3%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

1-2 games

3-5 games

6-10 games

11-20 games

21+ games

N/A - never

created a Flash game


GAME PLAYS HOLDING STEADY

19

Devs Only

Devs & Pubs Both

0-200k 35.8% 27.6% 33.9%

200k-500k 11.5% 18.6% 13.1%

500k-1M 10.4% 11.1% 10.6%

1M-5M 11.9% 14.1% 12.4%

5M-10M 3.2% 5% 3.6%

10M+ 2.8% 3% 2.8%

N/A 24.3% 20.6% 23.5%

vs. 2010: The numbers are very similar, with the “0-200k” increasing slightly in 2011.

How Many Game Plays On Average Do Your Games Typically Get In Their Lifetime?

33.9%

13.1% 10.6%

12.4% 3.6%

2.8% 23.5%

0 to 200k game plays 200k - 500k game plays 500k - 1 million game plays 1 million - 5 million game plays 5 million to 10 million game plays 10 million or more

N/A - I'm not sure or don't know


DEVS ARE WORKING ALONE OR IN SMALL TEAMS

20

Devs Only

Devs & Pubs Both

Myself 59% 51.3% 57.2% Indie collaborations 29.9% 34.2% 30.9%

Small company 7.5% 11.1% 8.3% Medium company 1.7% 1.5% 1.6%

Large company 0.3% 1% .5%

vs. 2010: Very little change, the biggest difference being a 2.7% decrease in “small teams”.

What Size Team Do You TYPICALLY Work With To Create Games?

57.2% 30.9%

8.3%

1.6% 0.5%

1.5% Myself (single developer)

Indie Collaborations (2-5 member independent team) Small company (2-10 member professional team) Medium company (11-50 member professional team) Large company (51+ member professional team)


Top answer for “other”: !   “Friends”

COLLABORATIONS OCCUR THROUGH FRIENDSHIPS

21

14.3%

24.4% 23.5% 15.1%

52.7%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

How Do You Find Collaborators For Your Projects?

Devs Only

Devs & Pubs Both

Mochi Media Forums 12.1% 21.6% 14.3% FlashGameLicense Forums 26.2% 18.6% 24.4%

Blogs 24% 21.6% 23.5% Play games / game credits 15% 15.6% 15.1%

Other 52.7% 52.8% 52.7%



Coding & Game Design Are Core Strengths

22

Devs Only

Devs & Pubs Both

Coding 80.6% 77.4% 79.8%

Game Art 32% 31.2% 31.8% Game Design 63.7% 55.3% 61.7%

Game Music 11.6% 10.6% 11.4% Business Side 17.9% 27.1% 20.1%

Other 2.1% 1.5% 2%

vs. 2010: Though calculated slightly differently, the ranking of strengths is still the same: Coding and Game Design are tops, while Music is at the bottom.

What Aspect In Game Creation Do You Feel Strong In? Select All That Apply.

79.8%

31.8%

61.7%

11.4%

20.1%

2.0%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%

Coding

Game Art

Game Design

Game Music

Business Side (partnerships, sponsorships,

Other (please specify)


CREATION CYCLES GETTING SLIGHTLY LONGER

23

Devs Only

Devs & Pubs Both

Less than a month 21.00% 26.1% 22.2%

1-3 months 53.00% 51.3% 52.6%

4-6 months 16.10% 15.6% 16.0%

7-12 months 4.90% 4% 4.7%

12+ months 2.60% 0.5% 2.1%

Other 2.50% 2.5% 2.5%

vs. 2010: The “Less than a month” category decreased by almost 4%, while all other categories increased. The biggest increase was in the “1-3 month” category at 3.6%.

How Long Does It Take You To Create A Flash Game?

22.2%

52.6%

16.0%

4.7% 2.1% 2.5%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Less than a month

1-3 months

4-6 months

7-12 months

12+ months



FLASH DOMINATES ONLINE GAMES

24

How Long Does It Take You To Create A Game Using These Technologies?

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Less than one month

1-3 months 4-6 months 7-12 months 12+ months I don’t use this

technology

Unity

Objective C

HTML5

Less Than 1 Month 1-3 Months 4-6 Months

7-12 Months 12+ Months

I Don’t Use This Technology

Unity 2.4% 5.7% 4.4% 1.5% 0.8% 85.2%

Objective C 1.4% 5.1% 3.6% 1.4% 0.6% 87.8%

HTML 5 3.6% 5.1% 2.3% 1.0% 0.5% 87.6%



INTEREST IN 3D GAMES IS HIGH

25

72.8%

27.2%

Yes

No

Are You Interested In Creating 3D Games?

Devs Only

Devs & Pubs Both

Yes 72% 75.4% 72.8%

No 28% 24.6% 27.2%



DEVELOPERS MAXIMIZING MONETIZATION CHANNELS

26

Devs Only

Devs & Pubs Both

Ads In Game 59.3% 77.2% 63.7% Ads On Website 22.3% 65.3% 32.8%

Custom Game Development 27.2% 30.1% 27.9% Licensing 37.3% 39.9% 38.0% Micro-transactions 9.7% 15.5% 11.1%

Sponsorships 48.5% 40.4% 46.5% N/A- don’t make money 17.3% 6.2% 14.6%

How Do You Make Money From Flash Games? Select All That Apply

vs. 2010: Every single monetization method listed has increased since last year, evidence that developers are getting more sophisticated in monetizing their work. The biggest increase was “Ads in Game” at 18%.

63.7%

32.8% 27.9%

38.0%

11.1%

46.5%

14.6%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%


MONTHLY INCOME HOLDING STEADY

27

Devs Only

Devs & Pubs Both

$0-$500 52.50% 51.30% 52.2% $501-$1,000 9.80% 11.40% 10.2% $1,001-$5,000 10.80% 13.00% 11.3% $5,001-$10,000 2.20% 4.10% 2.6% $10,000-$25,000 2.00% 2.10% 2.0%

$25,000+ 1.20% 3.10% 1.6% Do Not Wish To Disclose 21.50% 15.00% 19.9%

How Much Money Do You Make Each Month From Developing Games?

vs. 2010: The “$1,001-$5,000” category decreased by over 8%, and the “$0-$500” category increased by just over 4%. The rest of the tiers have held steady.

52.2%

10.2% 11.3% 2.6% 2.0% 1.6%

19.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

$0 to $500

USD per month

$501 - 1,000

USD per month

$1,001 - $5,000

USD per month

$5,001 - $10,000 USD per month

$10,000 -

$25,000 USD per month

$25,000 and up

per month

N/A - Do not wish

to disclose


AVG. SPONSORSHIP PRICES HAVE GONE UP

28

Price Per Sponsorship Deal !   Devs: avg. $2,414 based on 257

responses !   Dev-pubs: avg. $2,227 based on 64

responses Top 5 Sponsorship Amounts:

!   $1,000 (13.1%) !   $2,000 (8.6%) !   $1,500 (7%) !   $500 (7%) !   $3,000 (6.6%)

Do You Make Money By Selling Your Game To Sponsors? If So, What Is Your Average Price?

59.5%

40.5% No

Yes

vs. 2010: The average sponsorship price has gone up by more than 55%, while the top 5 most common amounts are the same (although in a slightly different order).


HOW MANY OF YOUR GAMES ACTUALLY GET SPONSORED?

29

6.9% 7.5%

13.7%

17.1%

54.8%

0-20%

21-40%

41-60%

61-80%

81-100%

[For Those Who Answered That They Get Their Games Sponsored] What Percentage Of Your Games Available For Sponsorship End Up Getting Sponsored?

Devs Only

Devs & Pubs Both

0-20 Percent 7.00% 6.30% 6.9% 21-40 Percent 6.60% 10.90% 7.5% 41-60 Percent 14.00% 12.50% 13.7% 61-80 Percent 17.10% 17.20% 17.1% 81-100 Percent 55.30% 53.10% 54.8%



LICENSE AMOUNTS VARY

30

Price Per License Agreement !   Devs: avg. $625 based on 179 responses !   Dev-pubs: avg. $366 based on 61

responses

Top 5 Amounts: !   $500 (21.1%) !   $200 (15.8%) !   $100 (12.3%) !   $300 (10.5%) !   $150 (7%)

vs. 2010: Average license price for Devs increased (+$73), but decreased for dev-pubs (-$817). The top 5 prices are mostly the same, except “$150” replaced “$400”.

Do You Make Money By Selling Licenses? If So, What Is Your Average Price?

65.9%

34.1% No

Yes


TOP REVENUE CHANNELS: SPONSORSHIPS & ADS

31

vs. 2010: Sponsorships still lead the way as the top revenue driver followed closely by Ads in game, though the gap between them for the #1 source decreased by 24%.

Ads in game

Ads on website

Custom Game Development Licensing

Micro-transactions Sponsorships

N/A- don’t make money

#1 Revenue Source 25.6% 7.7% 16.1% 5.3% 3.3% 26.7% 12.8%

#2 Revenue Source 20.7% 15.2% 5.7% 17.0% 2.7% 12.2% 3.6%

#3 Revenue Source 19.7% 6.8% 4.4% 12.2% 4.1% 6.0% 23.9%

What Are Your Top 3 Ways Of Making Money From Game Development, Ranked By Revenue Each Month?

25.6%

7.7%

16.1%

5.3% 3.3%

26.7%

12.8%

20.7% 15.2%

5.7%

17.0%

2.7%

12.2%

3.6%

19.7%

6.8% 4.4%

12.2%

4.1% 6.0%

23.9%

0.0% 5.0%

10.0% 15.0% 20.0% 25.0% 30.0%

#1 Revenue Source

#2 Revenue Source

#3 Revenue Source


If so, where do you get your data? (top answers) ! Comments (24.7%) !   Mochi Media (Mochi Analytics, Mochi Bot) (19.3%) ! Playtomic (17.8%) ! Forums (10.2%) !   Google Analytics (2.2%)

GAMES ARE PROJECTS

32

60.9%

39.1% No

Yes

Do You Iterate On Games After You Release Them?

Devs Only

Devs & Pubs Both

No 60.80% 61.30% 60.9%

Yes 39.20% 38.70% 39.1%

vs. 2010: No data. The majority of developers appear to treat games like projects with a clear end. For those that do try to improve their games post-release, they rely on both quantitative and qualitative data for information.


INCREASE IN GAME TRAFFIC & REVENUE

33

57.8%

7.0%

12.2%

23.0%

0% 15% 30% 45% 60% 75%

Game traffic increased, revenue increased

Game traffic decreased, revenue increased

Game traffic increased, revenue decreased

Game traffic decreased, revenue decreased

Devs Only

Devs & Pubs Both

Traffic Increased, Revenue Increased 56.0% 61.30% 57.8% Traffic Decreased, Revenue Increased 6.20% 9.10% 7.0% Traffic Increased, Revenue Decreased 12.70% 10.80% 12.2% Traffic Decreased, Revenue Decreased 24.50% 18.80% 23.0%


Over The Last Year, Which Of These Statements Is Most Accurate For You?


GOOGLE, FORUMS, BLOGS TOP INFO SOURCES

34

Devs Only

Devs & Pubs Both

Forums 81.30% 78.50% 80.5%

Blogs 72.00% 70.40% 71.6%

Adobe 39.80% 40.30% 39.9%

Portal Sites 19.70% 22.00% 20.3%

“Google It” 81.90% 86.00% 83.0% Online Publications 18.50% 23.70% 19.9%

YouTube 17.60% 18.80% 17.9%

Where Do You Go When You Need To Get Information On Flash Game Development? (Choose All That Apply)

vs. 2010: Though calculated differently, the results are mirror-images.

80.5%

71.6%

39.9%

20.3%

83.0%

19.9%

17.9%

Forums

Blogs

Adobe

Portal Sites

"Google It"

Online Publications

YouTube

0% 15% 30% 45% 60% 75% 90%


Developers & Mobile

35

Online game developers and their connection to mobile game development

ONLINE GAME DEVELOPERS BRANCHING OUT

36

36.4%

63.6%

Yes

No

Do You, Or Have You Made Mobile Games?

Devs Only

Devs & Pubs Both

Yes 33.7% 45.2% 36.4%

No 66.3% 54.8% 63.6%



83% CURRENTLY OR PLAN TO DEVELOP FOR MOBILE

37

Yes I Currently Develop On This Platform

No, but plan to in the next year

No, and do not plan to in the next year

Browser 91.4% 4.9% 4.8%

Downloadable PC 21.0% 30.0% 41.0%

Console 3.6% 20.2% 64.2%

Mobile 27.9% 54.9% 12.3%

vs. 2010: Interest in mobile development is still extremely high. After the browser, mobile is the most popular category for current development. It also is the most popular platform for “next year”.

What Gaming Platforms Do You Develop On? 91.4%

21.0%

3.6%

27.9%

4.9%

30.0% 20.2%

54.9%

4.8%

41.0%

64.2%

12.3%

0%

20%

40%

60%

80%

100%

Browser Downloadable PC

Console Mobile

Yes, I currently develop on this platform No, but plan to in next year

No, and do not plan to in next year


ANDROID TOP MOBILE TARGET, FOLLOWED BY IOS

38

72.1% 67.1%

20.1% 10.4% 8.7% 8.7%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Which Mobile Stores Do You Target?

Devs Only

Devs & Pubs Both

Android 73.10% 70.00% 72.1%

iOS 65.40% 71.10% 67.1%

Blackberry 19.70% 21.10% 20.1%

Samsung 8.20% 15.60% 10.4%

Microsoft 6.30% 14.40% 8.7%

Other 6.70% 13.30% 8.7%

vs. 2010: This specific question was not asked, but it is in line with a question last year about developer interest in mobile platforms. In that question, Android and iOS were #’s 1 & 2, respectively.


GAMES VETTED IN THE BROWSER, THEN GO MOBILE

39

59.7%

7.7%

16.8%

13.4%

2.3%

0% 20% 40% 60% 80%

I create a Flash version of the game first, followed by a

mobile version I create a mobile version of the game first, followed by a Flash

version

I create both versions at the same time

I always treat Flash and mobile separately, they are not

connected


What Is Your Approach For Flash And Mobile?

Devs Only

Devs & Pubs Both

Flash, then mobile 63.5% 51.1% 59.7% Mobile, then Flash 6.3% 11.1% 7.7% Both at the same time 15.4% 20% 16.8% Treat them separately 12% 16.7% 13.4%

Other 2.9% 1.1% 2.3%

vs. 2010: No data available. Clearly, developers tend to create mobile versions of their games after first creating a Flash version for the browser.


Top answer for “other”: !   “I don’t make money yet”

MOBILE REVENUE SOURCES: APP SALES #1, ADS #2

40

61.7%

11.1%

37.6%

23.8% App sales

Microtransactions

Ads


How Do You Make Money From Mobile Games?

Devs Only

Devs & Pubs Both

App Sales 58.7% 68.9% 61.7% Micro-transactions 8.7% 16.7% 11.1%

Ads 37.0% 38.9% 37.6%

Other 24.5% 22.2% 23.8%

vs. 2010: No data available. Interesting note: While app sales and ads lead the way, microtransactions seem to be a viable channel.


MOBILE MONETIZATION: ROOM TO GROW

41

29.2%

7.0% 7.4% 3.7% 4.4% 2.3% 1.0% 1.0% 0.7%

4.4%

38.9%

0% 5%

10% 15% 20% 25% 30% 35% 40% 45%

0-10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% 91-100% N/A- I haven’t

made any money yet with mobile games

What Percentage Of Your Total Games Revenue Comes From Mobile?

vs. 2010: No data available. Devs are still learning how best to monetize their mobile games.

0-10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% 91-100% N/A

Devs Only 31.7% 7.2% 6.7% 3.4% 1.9% 1.9% 1.4% 0% 1% 2.9% 41.8%

Devs & Pubs 23.3% 6.7% 8.9% 4.4% 10% 3.3% 0% 3.3% 0% 7.8% 32.2%

Both 29.2% 7% 7.4% 3.7% 4.4% 2.3% 1% 1% .7% 4.4% 38.9%


Publisher Responses

42

Publishers, Including Developers & Publishers

Top responses !   Student (19.1%) !   Web Developer (9.9%) !   Flash Game Developer (5.3%) !   Game Developer (3.3%)

LESS FULL-TIME WEB PORTAL PUBLISHERS

43

Pubs Only

Devs & Pubs Both

Yes 33.3% 32% 32.3%

No 66.7% 68% 67.7%

vs. 2010: Full-time site creation is down from last year, decreasing almost 16%.

Do You Create Flash Game Websites Full-time?

32.3%

67.7%

Yes

No

If Not, What Is Your Full-time Profession?


PUBLISHERS GETTING MORE EXPERIENCED

44

Pubs Only

Devs & Pubs Both

Less than 1 year 27.1% 36.00% 34.1%

1-2 years 35.4% 28.10% 29.6%

2-5 years 29.2% 26.40% 27.0%

5+ years 8.3% 9.60% 9.3%

vs. 2010: The “2-5 years” category increased (+6%), while the “Less than 1 year” (-3%) and “5+ years” (5%) categories both decreased.

How Long Have You Been Creating Flash Game Websites?

34.1%

29.6% 27.0%

9.3%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Less than 1 year

1-2 years 2-5 years 5+ years


PUBLISHERS CONTINUE MULTIPLE SITES TREND

45

Pubs Only

Devs & Pubs Both

1-2 sites 64.6% 63.50% 63.7%

3-5 sites 16.7% 15.20% 15.5%

6-10 sites 6.3% 4.50% 4.9%

11-20 sites 0.0% 3.40% 2.7%

21+ sites 0.0% 0.60% 0.4%

N/A 12.5% 12.90% 12.8%

vs. 2010: The numbers are very similar. The “1-2 sites” category (-8%), and the “21+ sites” (-2.5%)categories decreased. “3-5” and “6-10” saw small increases. The general trend to have more than 1 or 2 sites seems to be continuing.

How Many Flash Gaming Websites Do You Own?

63.7%

15.5%

4.9% 2.7% 0.4%

12.8%

0%

10%

20%

30%

40%

50%

60%

70%

1-2 sites 3-5 sites 6-10 sites 11-20 sites

21+ sites N/A - never

created a Flash sites


FEW SITES ARE OPTIMIZED FOR MOBILE DEVICES

46

Pubs Only

Devs & Pubs Both

Yes 22.9% 12.9% 15%

No 77.1% 87.1% 85%

Are Your Sites Optimized For Mobile?

vs. 2010: Possibly a moot point after Adobe’s announcement about Flash on mobile, but most portal owners weren’t optimizing for mobile anyway.

15.0%

85.0%

Yes

No


MANY SMALL PORTALS MAKE UP A BIG INDUSTRY

47

Pubs Only

Devs & Pubs Both

0 – 200k 66.7% 66.30% 66.4% 200k – 500k 8.3% 7.90% 8.0%

500k – 1M 4.2% 5.10% 4.9%

1M – 5M 0.0% 3.90% 3.1%

5M – 10M 0.0% 1.10% 0.9%

10M+ 2.1% 1.10% 1.3%

N/A 18.8% 14.60% 15.5%

vs. 2010: Most of the traffic numbers have decreased, with the exception of the “0-200k” category (+3.5%). The general distribution of the answers is approximately the same.

How Many Unique Visitors Visit Your Site(s) Each Month? 66.4%

8.0% 4.9% 3.1% 0.9% 1.3%

15.5%

0%

10%

20%

30%

40%

50%

60%

70%

0 to 200k

unique visitors

200k - 500k

unique visitors

500k - 1 million unique visitors

1 million - 5

million unique visitors

5 million to 10

million unique visitors

10 million

or more unique visitors

N/A - I'm not sure or prefer

not to disclose


PORTAL OWNERS CONTINUE TO WORK TOGETHER

48

Pubs Only

Devs & Pubs Both

Myself 72.9% 73.00% 73.0%

Small team 22.9% 19.70% 20.4%

Medium team 2.1% 3.40% 3.1%

Large team 0.0% 0.60% 0.4%

Other 2.1% 3.40% 3.1%

vs. 2010: “Small teams” (-7.5%) decreased while all other categories increased, most notably “Myself” (+8%). Historically speaking, this is still a solid amount of collaboration for portal owners.

Do You Manage Your Website By Yourself, Or With A Team?

73.0%

20.4%

3.1% 0.4% 3.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Myself (single

publisher)

Small team (2-5

members)

Medium team (6-50 members)

Large team (50+

members)

Other (please specify):


ADS LEAD REVENUE STREAMS, DOWNLOADABLES RISING

49

Pubs Only

Devs & Pubs Both

Ads on website 79.2% 77.50% 77.9% Downloadable games 20.8% 12.90% 14.6%

Virtual goods 4.2% 6.20% 5.8% Physical goods 10.4% 1.70% 3.5%

N/A 16.7% 15.70% 15.9%

Other 8.3% 1.70% 3.1%

vs. 2010: The reliance on Ads has increased (+9%). Virtual goods have fallen off a bit (-2%), replaced by Downloadable games (+3%).

How Do You Make Money From Your Flash Gaming Website? Select All That Apply

77.9%

14.6% 5.8% 3.5%

15.9%

3.1% 0%

10% 20% 30% 40% 50% 60% 70% 80% 90%


60% OF PUBLISHERS MAKE LESS THAN $500/MO.

50

Pubs Only

Devs & Pubs Both

$0-$500 58.3% 61.20% 60.6%

$501-$1,000 6.3% 7.90% 7.5% $1,001-$5,000 6.3% 3.90% 4.4% $5,001-$10,000 4.2% 5.10% 4.9%

$10,000-$25,000 4.2% 0.60% 1.3%

$25,000+ 0.0% 0.60% 0.4% N/A 20.8% 20.80% 20.8%

vs. 2010: Aside from a small gain in the “$5,001-$10,000” category (+1%), all categories above $1,000 decreased.

How Much Money Do You Make Each Month From Your Gaming Websites?

60.6%

7.5% 4.4% 4.9%

1.3% 0.4%

20.8%

0%

10%

20%

30%

40%

50%

60%

70%

$0 to $500 USD per month

$501 - 1,000 USD per month

$1,001 - $5,000

USD per month

$5,001 - $10,000 USD per month

$10,000 - $25,000 USD per month

$25,000 and up per

month

N/A - Do not wish to

disclose


ON-SITE ADS #1 REVENUE SOURCE

51

vs 2010: Microtransactions introduced as a new selection option. Ads as the #1 source decreased by nearly 7%

Ads on website

Downloadable games

Virtual goods

Physical goods Microtransactions N/A

#1 Revenue Source 77.1% 6% 2.8% 0.9% 2.3% 11% #2 Revenue Source 9.2% 25.4% 10% 4.6% 24.6% 26.9% #3 Revenue Source 2.2% 6% 6.7% 6.7% 9% 70.9%

What Are Your Top 3 Ways Of Making Money From Game Development?

0% 15% 30% 45% 60% 75% 90%

#1 Revenue Source

#2 Revenue Source

#3 Revenue Source


ALMOST 20% OF PUBLISHERS HAVE UNIQUE GAME API’S

52

19.0%

81.0%

Yes

No

Pubs Only

Devs & Pubs Both

Yes 25.0% 17.4% 19.0%

No 75.0% 82.6% 81.0%

vs 2010: No data available.

Do You Have Your Own Unique Api’s For Games On Your Site?


Top “Other” response: !   “Look for them on top portal

sites” (16.7%)

MOCHI MEDIA IS TOP CONTENT SOURCE

53

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%

Talk Arcades

Mochi Media Distribution

FlashGameDistribution.com

Playtomic Distribution


Pubs Only

Devs & Pubs Both

Talk Arcades 27.1% 16.3% 18.6%

Mochi Media Distribution 83.3% 70.2% 73%

FlashGameDistribution 22.9% 37.1% 34.1%

Playtomic Distribution 6.3% 16.9% 14.6%

Other 18.8% 30.3% 27.9%


How Do You Find Games For Your Site(s)? Select All That Apply


Top Script used: !   AV Arcade (46.7% )

OVER 80% OF PORTAL OWNERS CREATE THEIR OWN SITES

54

80.1%

19.9%

I don’t use arcade scripts

Yes, I use

Do You Use Arcade Scripts? If So, Which Ones?

Pubs Only

Devs & Pubs Both

No 79.2% 80.30% 80.1%

Yes 20.8% 19.70% 19.9%



PHP MOST POPULAR TECHNOLOGY FOR PUBLISHERS

55

84.5%

5.8% 3.1%

19.0%

8.8% 11.5%

PHP

Python

Ruby

Java

C#

Other (please describe)

Pubs Only

Devs & Pubs Both

PHP 83.3% 84.80% 84.5%

Python 4.2% 6.20% 5.8%

Ruby 4.2% 2.80% 3.1%

Java 37.5% 14.00% 19.0%

C# 12.5% 7.90% 8.8%

Other 12.5% 11.20% 11.5%


Which Web Technologies Do You Use To Build / Develop Your Site(s)? Select All That Apply


MORE INVESTMENT IN TRAFFIC DRIVERS

56

Pubs Only

Devs & Pubs Both

Paid ads (Google, Adwords) 43.8% 33.10% 35.4%

Banner traffic 25.0% 19.10% 20.4%

Link exchange 41.7% 30.30% 32.7% Create your own games 12.5% 71.90% 59.3% Sponsor games 8.3% 13.50% 12.4%

Other 35.4% 10.70% 15.9%

vs. 2010: Every category increased, with the biggest gain in the “Create your own games” category (+22%). Paid ads also had a significant increase (+14%).

How Do You Get Traffic To Your Website? Select All That Apply.

35.4%

20.4%

32.7%

59.3%

12.4% 15.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%


How Much Do You Pay? !   Pubs: avg. price is $460, based on 3

responses !   Dev-pubs: avg. price is $1,014,

based on 18 responses !   Combined: avg. price is $891, based

on 21 responses

PUBLISHERS WHO ALSO SPONSOR GAMES

57

vs. 2010: The number of publishers sponsoring games dropped significantly (-13%). The average price for publishers only is much lower, but this could be sue to a small sample size. The dev-pubs average is very similar to 2010. It is clear that the high-dollar sponsors we see from the developer responses did not complete the survey.

Do You Sponsor Games? If So, What Would You Estimate Is The Average Amount That You Pay To Sponsor A Game?

88.9%

11.1%

No

Yes


MOST PUBLISHERS SPONSOR 1 GAME PER MONTH

58

60.0%

28.0%

0.0% 0.0% 12.0% 1

2-5

6-10

10+


How Many Games Do You Sponsor Each Month?

Pubs Only

Devs & Pubs Both

1 66.7% 59.10% 60.0%

2-5 33.3% 27.30% 28.0%

6-10 0.0% 0.00% 0.0%

10+ 0.0% 0.00% 0.0%

Other 0.0% 13.60% 12.0%

vs. 2010: The most popular response overwhelmingly shifted from “2-3” to “1”.


EXISTING RELATIONSHIPS & FGL DRIVE SPONSORSHIPS

59

56.0%

60.0%

64.0%

8.0%

FlashGameLicense.com

Existing relationships: developers contact you

directly

Existing relationships: you contact developers directly

Other Forums

0% 15% 30% 45% 60% 75%

Pubs Only

Devs & Pubs Both

FlashGameLicense.com 33.3% 59.10% 56.0% Existing relationships: developers contact you 66.7% 59.10% 60.0% Existing relationships: you contact developers 100.0% 59.10% 64.0%

Other forums 0% 9.10% 8.0%

vs. 2010: No data available

How Do You Find Games Up For Sponsorship?


FEWER PUBLISHERS LICENSING GAMES

60

Pubs Only

Devs & Pubs Both

No 95.3% 97.70% 97.2% Yes 4.7% 2.30% 2.8%

Do You License Ad-free Or Logo-free Versions Of Games For Your Site? If So, What Is An Average Amount That You Pay For Each License?

How Much Do You Pay? !   Pubs: no publishers indicated

that they license games. !  Dev-pubs: avg. price is $733,

based on 3 responses

vs. 2010: Even fewer publishers are licensing games, with over a 5% drop. Of the two publishers types, only dev-pubs indicated that they license games.

97.2%

2.8%

No

Yes


TRAFFIC & REVENUE INCREASED

61

52.8%

4.1%

7.8%

16.1%

19.3%

0% 15% 30% 45% 60%

Web traffic increased, revenue increased

Web traffic decreased, revenue increased

Web traffic increased, revenue decreased

Web traffic decreased, revenue decreased

No change in web traffic or revenue

Over The Last Year, Which Of These Is Most Accurate For You?

Pubs Only

Devs & Pubs Both

Traffic Increased, Revenue Increased 53.5% 52.60% 52.8% Traffic Decreased, Revenue Increased 2.3% 4.60% 4.1% Traffic Increased, Revenue Decreased 2.3% 9.10% 7.8% Traffic Decreased. Revenue Decreased 11.6% 17.10% 16.1%

No Change 30.2% 16.60% 19.3%



TOP INFORMATION SOURCES: GOOGLE, FORUMS & BLOGS

62

Where Do You Go When You Need To Get Information On Flash Games? (Choose All That Apply)

vs. 2010: Though calculated differently this year, the distribution is very similar to 2010 with “Google it” the top source followed by “Forums” and then “Bogs”.

67.9%

62.4%

36.7%

82.6%

26.1%

5.5%

0.0% 20.0% 40.0% 60.0% 80.0% 100.0%

Forums

Blogs

Other Publishing Sites

"Google It"

Online Publications

YouTube

Pubs Only

Devs & Pubs Both

YouTube 44.2% 73.70% 67.9%

Online Publications 44.2% 66.90% 62.4%

“Google It” 37.2% 36.60% 36.7%

Other Publishing Sits 74.4% 84.60% 82.6%

Blogs 23.3% 26.90% 26.1%

Forums 23.3% 16.00% 5.5%


Contact Info:

Jason Throckmorton LaunchSquad (415)625-8555

[email protected]

CONTACT INFO

63

FIN

64

2011 Flash Games Market Survey

Technology

Transcript of 2011 Flash Games Market Survey