1. 2012 Flash Games Market Survey Results December 20, 2012

2. OVERVIEWAbout 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 FGS, the leading annual conference for Flash games, and is reflected in the March 2013 event with the theme Evolve Your Game. 1,359 total survey responses 2 3. Mochi Media is the worlds largest browser-based gamesnetwork, with more than 150 million monthly active users and90,000 games on more than 60,000 publisher websites. MochiMedias game development products and services enabledevelopers to track, distribute, and monetize their games acrossthe web. Mochi Media is headquartered in downtown SanFrancisco and is a wholly-owned subsidiary of ShandaInteractive. 3 4. HIGHLIGHTS Online game development continues to be intl phenomenon Developers embracing dual platforms: first online, then mobile 86% of Flash game developers expanding into mobile 55% of Flash game developers making games for mobile today Adobe AIR sees higher adoption, #1 path to mobile Developers target iOS and Android markets equally Marketing is biggest pain-point for mobile game development Mobile marketing strategy: 80% release and hope for the best App sales and ads top current mobile monetization methods Over 71% of developers are interested in creating 3D games 4 5. HIGHLIGHTS, CONTINUEDYear over year highlights: Game traffic and revenue have increased for 50.8% of game developers Microtransactions for mobile emerging as solid revenue channel More publishers sponsoring games to drive traffic 5 6. SOME DEFINITIONSA 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. 6 7. Demographic Info 7 8. DEVELOPER, PUBLISHER, OR DEV-PUB? Respondents Identified As Either A Developer, Publisher, Or Both21.0% Developer Publisher 9.6% Developer and Publisher 69.4% vs. 2011: More publishers responded this year. 8Source: Flash Games Market Survey 7/2012 9. DEVELOPER & PUBLISHER LINES BLUR There Is Overlap Between Developers And PublishersDeveloper Dev-Pub 69% 21% Source: Flash Games Market Survey 7/20129 10. FLASH GAMES INDUSTRY IS STILL MALEWhat Is Your Gender? 6.5% Male Female 93.5% vs. 2011: Roughly the same, slight increase in female respondents10Source: Flash Games Market Survey 7/2012 11. 85% OF FLASH GAMES COMMUNITY UNDER 34Which Age Group Do You Fall Into?45.0% 42.2% 40.0% 35.0% vs. 2011: New option for30.0% 55+, which represented30.0% 2.4% of respondents.25.0% 20.0% 15.0% 12.3% 10.8% 10.0% 5.0% 2.4% 2.4% 0.0% 2-17 18-24 25-34 35-44 45-55 55+ 11Source: Flash Games Market Survey 7/2012 12. FLASH GAMES INDUSTRY CONTINUES TO BE INTLWhat Country Do You Live In? Top 10 countries (% change from 2011) U.S. 19.7 % (-1.3%) U.K. 8% (-2%) Russian Federation 6.3% (no change) China 6.2% (+ 5.4%) Ukraine 4% (+1%) vs. 2011: China burst onto the scene in 2012 with over 6% of survey Canada 4% (-1%)respondents. Countries with English as their first language see decrease as trend India 3.5% (no change) towards decentralization and internationalization continues. Brazil 3.1% (no change) Poland 2.8% (+ 1.3%) Indonesia 2.1% (-.9%)Source: Flash Games Market Survey 7/201212 13. Developer Responses Developers, Including Developers & Publishers 13 14. NEARLY 1 IN 5 DEVS MAKING GAMES FULL-TIMEWhat Percentage Of Your Time Do You Spend Creating Games?34.2% 35.0% If not full-time, what do you do?30.0% #1 answer = Student25.0% 21.7% 19.9% 20.0% 15.0% 11.3% 10.0% 7.5% vs. 2011: Slight decrease (-4%) in full-time developers. 5.0% 0.0% 0-25% 26-50% 51-75% 76-99% 100%- I create games full-Hme Source: Flash Games Market Survey 7/2012 14 15. DEVELOPERS MATURINGHow Long Have You Been Creating Flash Games?Less than 1 year 1-2 years 19.3% 22.5% 2-5 years 5+ years 31.1% 27.0% vs. 2011: Big increase in the 5+ years category (+6.3%), slight decreases in others. 15Source: Flash Games Market Survey 7/2012 16. 80% OF DEVELOPERS WANT MORE THAN A HOBBYWhat Is Your Real Goal In Making Games? 33.9% vs. 2011: Slight35.0% decrease in desireto become full-time30.0% indie (-4.2%), slight23.4% 25.0% increase in desire to 18.5% create a game20.0% studio (+3.3%). 14.3% 15.0% 10.0% 10.0% 5.0% 0.0% Just a hobby, To become a To create a To be the Other probably full-Hme indie game studio biggest, most always will be developer successful game studio ever 16Source: Flash Games Market Survey 7/2012 17. AS3 REMAINS #1, AIR ADOPTION ON THE RISE For Flash Development You Use0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% AS2 14.7% AS3 76.8% AS3/AIR 35.8% AS3/Flex 22.5% Flixel 10.7% FlashDevelop 49.3% haXe 7.0% other 14.4% Top response for other:vs. 2011: Big increase in AS3/AIR(+14%). Haxe is up as well (+3.7%).Notable decreases in AS2 (-5%), AS3/ Flashpunk Flex (-2.6%), Flixel (-1.4%), andFlashDevelop (-3%).17 Source: Flash Games Market Survey 7/2012 18. DEVELOPERS MAINTAIN GAME QUANTITYHow Many Total Published Flash Games Have You Created In The Past Year?50.0% 45.6% 45.0% vs. 2011: Slight increase in40.0% developers making 3-5 games per35.0% year (+2.2%) and 21+ games 28.0% (+1.6%).30.0% 25.0% 20.0% 15.0% 9.1% 9.6% 10.0% 3.7% 3.9% 5.0% 0.0% 1-2 games 3-5 games 6-10 games 11-20 21+ games N/A- never games created a Flash game 18 Source: Flash Games Market Survey 7/2012 19. GAME PLAYS HOLDING STEADYHow Many Game Plays On Average Do Your Games Typically Get In Their Lifetime? 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 0-200k game plays 34.7% 200k - 500k game plays 13.0% 500k - 1 million game plays 10.3% 1 million - 5 million game plays 11.4% 5 million - 10 million game plays 2.9% 10 million or more 3.9% N/A- Im not sure or dont know 23.5% vs. 2011: No change 19 Source: Flash Games Market Survey 7/2012 20. DEVS ARE WORKING ALONE OR IN SMALL TEAMS What Size Team Do You TYPICALLY Work With To Create Games?Myself (single developer) 2.2% 0.8% 0.6% Indie CollaboraHons (2-5 member independent team) 10.3% Small company (2-10 member teams) 48.5% Medium company (11-50 member company team) 37.3% Large company (51+ professional team) other vs. 2011: More indie collaborations with an increase of +6.4%. Single developer is down 8.7%. 20Source: Flash Games Market Survey 7/2012 21. COLLABORATIONS OCCUR THROUGH FRIENDSHIPSHow Do You Find Collaborators For Your Projects?60.0% 54.0% Top answer for50.0% other:40.0% Friends30.0% 22.3% 23.7% 17.4% 20.0% 12.5% 10.0% 0.0% vs. 2011: No significantchanges. 21 Source: Flash Games Market Survey 7/2012 22. Coding & Game Design Are Core StrengthsWhat Aspect In Game Creation Do You Feel Strong In? Select All That Apply. 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% Coding 79.2% Game Art 31.6% Game Design 61.0% Game Music 13.6% Business Side 20.8% Other 2.6% vs. 2011: No significant changes. 22Source: Flash Games Market Survey 7/2012 23. 70% OF DEVS CREATE GAMES IN LESS THAN 3 MOS. How Long Does It Take You To Create A Flash Game? 60.0% 50.6% 50.0% vs. 2011: Nosignificant changes. 40.0% 30.0% 20.3% 20.0% 17.5% 10.0% 0.0% 4.8% 3.0% Less than 3.4% a month 1-3 months 4-6 months 7-12 months 12+ months Other 23Source: Flash Games Market Survey 7/2012 24. 85% OF DEVS SPEND 540 HOURS OR LESS ON GAMESOn Average, How Many Engineering Hours Does It Take You ToDevelop A Flash Game?0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% Less than 160 hours 37.5% 160-540 hours 47.9% 540-960 hours 9.9% 960+ hours 4.5% Other 3.4% vs. 2011: No dataavailable.24 Source: Flash Games Market Survey 7/2012 25. SOME DEVELOPERS TRYING NEW TECHNOLOGIESWhich Browser-based Gaming Platforms Do Your Develop For Other ThanFlash?70.0% 67.9% 60.0% vs. 2011: No dataavailable. 50.0% 40.0% 30.0% 19.0% 20.0% 17.9% 10.0% 1.0% 0.0% Unity Silverlight HTML5 None of these Source: Flash Games Market Survey 7/201225 26. FLASH DOMINATES ONLINE GAMESHow Long Does It Take You To Create A Game Using These Technologies?90.0% vs. 2011: No significant changes.80.0% Less than one month 70.0% 60.0% 1-3 months 50.0% 4-6 months 40.0% 7-12 months 30.0% 12+ months 20.0% I dont use this technology 10.0% 0.0% Unity ObjecHve C HTML5 26 Source: Flash Games Market Survey 7/2012 27. INTEREST IN 3D GAMES IS HIGH Are You Interested In Creating 3D Games? Yes 28.4% No 71.5% vs. 2011: No significant change. 27Source: Flash Games Market Survey 7/2012 28. DEVELOPERS MAXIMIZING MONETIZATION CHANNELSHow Do You Make Money From Flash Games? Select All That Apply 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% Ads in game 63.1% Ads on website 30.8% Custom game development 25.8% Licensing 41.1% Micro-transacHons 11.2% Sponsorships 47.3% N/A- dont make money 13.0% vs. 2011: Licensing up slightly (+3.1%) Source: Flash Games Market Survey 7/201228 29. MONTHLY INCOME HOLDING STEADYHow Much Money Do You Make Each Month From Developing Games?60.0% 52.6% 50.0% 40.0% 30.0% 19.0% 20.0% 12.7% 9.9% 10.0% 2.6% 1.5% 1.2% 0.0% $0 to $500 USD $501 - 1,000 $1,001 - $5,000 $5,001 - $10,000 - $25,000 USD N/A- Do not per month USD per month USD per month $10,000 USD $25,000 USD and up per wish to per month per month month disclose vs. 2011: No significantchanges.Source: Flash Games Market Survey 7/201229 30. SPONSORSHIPS ARE SOLID REVENUE STREAMDo You Make Money By Selling Your Game To Sponsors? If So, WhatIs Your Average Price?vs. 2011: Devs makingmoney via sponsorshipsPrice Per Sponsorship Dealslightly down (-3%). Someshuffling in top 5 amounts. AVG. $2,351 BASED ON 250 RESPONSESTop 5 Sponsorship Amounts: $500 (12.8%) 43.3% No $1,000 (9.6%) 56.6% Yes $2,000 (7.2%) $1,500 (4.8%) T- $300 & $3,000 (4.4%)Source: Flash Games Market Survey 7/2012 30 31. MAJORITY OF GAMES GET SPONSORED[Respondent Sub-Set: Developers That Get Their Games Sponsored]What Percentage Of Your Games Available For Sponsorship End Up GettingSponsored?vs. 2011: No significantchange.7.3% 8.2% 0-20% 13.9% 21-40% 56.1% 41-60% 14.7% 61-80% 81-100% Source: Flash Games Market Survey 7/2012 31 32. AVG. LICENSE AMOUNTS HAVE GONE UPDo You Make Money By Selling Licenses? If So, What Is Your Average Price?Price Per License Agreementvs. 2011: The average license amount is up from $625 AVG. $988.80 BASED ON 158 RESPONSES (+36.7%). Also, the top 5 has a new entrant with $1,000 at the #3 spot.Top 5 Amounts: $500 (17.0%) $200 (10.7%)36.9% $1,000 (8.8%) 63.0% No Yes $300 (7.5%) $100 (5.0%)Source: Flash Games Market Survey 7/201232 33. TOP REVENUE CHANNELS: SPONSORSHIPS & ADSWhat Are Your Top 3 Ways Of Making Money From Game Development, RankedBy Revenue Each Month?vs. 2011: Licensing is35.0% emerging as a solidrevenue channel with30.0% a 4% increase as a#2 revenue source.25.0% Sponsorships andads continue to lead20.0% the way, though, withsponsorships up 7%15.0% as a #1 revenue#1 Revenue Source source and ads10.0% #2 Revenue Source holding steady as a#1, #2, and #3 5.0% #3 Revenue Source revenue source. 0.0% 33 Source: Flash Games Market Survey 7/2012 34. GAMES ARE PROJECTS Do You Iterate On Games After You Release Them?If so, where do you get your data? (top answers) Player Comments / Feedback (39.8%) Playtomic (14.8%) Mochi Media (Mochi Analytics, Mochi Bot) (9.3%) Google Analytics (3.1%) Forums (2.3%)30.0% No 69.9% Yes vs. 2011: 9% decrease indevelopers that iterate ontheir games. PlayerComments / Feedbackincreases 15% as #1 datasource.Source: Flash Games Market Survey 7/201234 35. INCREASE IN GAME TRAFFIC & REVENUE Over The Last Year, Which Of These Statements Is Most Accurate For You? Game trac decreased, revenue decreased 29.2% Game trac increased, revenue decreased 13.6% Game trac decreased, revenue increased 6.2% Game trac increased, revenue increased 50.8% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% vs. 2011: Game TrafficIncrease & RevenueIncrease still the topanswer, but is down 7%.Source: Flash Games Market Survey 7/201235 36. GOOGLE, FORUMS, BLOGS TOP INFO SOURCESWhere Do You Go When You Need To Get Information On Flash GameDevelopment? (Choose All That Apply)90.0% 84.1% 80.0% 73.6% 70.0% 64.3% 60.0% 50.0% 40.8% 40.0% 30.0% 24.1% 22.0% 19.5% 20.0% vs. 2011: Mostly the same, with10.0% decreases in Forums (-7%) andBlogs (-7%). 0.0% Source: Flash Games Market Survey 7/201236 37. Developers & MobileOnline game developers and their connection to mobile game development 37 38. MORE DEVELOPERS MAKING MOBILE GAMES Do You, Or Have You Made Mobile Games? vs. 2011: 8% increase in developers that are making mobile games 44.4% today.55.5% Yes No Source: Flash Games Market Survey 7/201238 39. 86% CURRENTLY OR PLAN TO DEVELOP FOR MOBILEWhat Gaming Platforms Do You Develop On? 90% 90% 80% 70% Yes, I currently develop on this plaeorm 60% 60% No, but plan to in next year 49% 50% No, and do not plan to in next year 40% 37% 33% 30% 30% 21% 21% 20% vs. 2011: No 11% significant changes, Browser 10% 5% 3% 4% and Mobile continue to be0% focal platforms for Browser Downloadable Console Mobile developers. PC Source: Flash Games Market Survey 7/201239 40. ANDROID AND iOS ARE EQUAL TARGETS Which Mobile Stores Do You Target?90.0% 81.1% 77.9% 80.0% vs. 2011: Big increases iniOS (+14%) and Samsung70.0% (+8%) markets. iOS andAndroid are now equal60.0% targets.50.0% 40.0% 30.0% 20.0% 18.2% 20.0% 7.4% 10.0% 4.1% 0.0% Android iOS Blackberry Samsung Microsof Other (iPhone / (Playbook, (Galaxy, (Xoom, iPad) handsets) handsets) handsets) Source: Flash Games Market Survey 7/2012 40 41. GAMES VETTED IN THE BROWSER, THEN GO MOBILEWhat Is Your Approach For Flash And Mobile? 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% I create a Flash version of the game rst, followed by a mobile 52.2% version I create a mobile version of the game rst, follwed by a Flash 6.5% version I create both versions at the same Hme 26.2% I always treat Flash and mobile separately, they are not 12.5% connected Other 2.3% vs. 2011: 9% increase indevelopers creating bothversions at the same time. Source: Flash Games Market Survey 7/2012 41 42. MOBILE REVENUE SOURCES: APP SALES #1, ADS #2How Do You Make Money From Mobile Games?Top answer for other:70.0% 60.2% I dont make money60.0% yet50.0% 42.6% 40.0% 30.0% 22.3% 21.1% 20.0% vs. 2011: Increases in10.0% Microtransactions (+11%) and Ads (+5%). 0.0% Source: Flash Games Market Survey 7/201242 43. MOBILE MONETIZATION: ROOM TO GROWWhat Percentage Of Your Total Games Revenue Comes From MobileGames? 30.0% 26.8% vs. 2011: No 25.0% significant changes. 20.0% 15.0% 10.0% 8.6% 4.7% 5.3% 4.7% 5.0% 3.8% 3.2% 3.5% 2.3% 1.7% 0.0% 43 Source: Flash Games Market Survey 7/2012 44. MOBILE DEVELOPMENT PROFITABLE FOR 1 OUT OF 2 DEVSIs Mobile Game Development Profitable For You As A Developer? 48.9% 51.0% Yes No vs. 2011: No data available.Source: Flash Games Market Survey 7/2012 44 45. MOST DEVS NEED 1-3 MOS. TO CREATE A MOBILE GAME On Average, How Long Does It Take You To Develop A Mobile Game (Calendar Time)? 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Less than a month 20.5% 1-3 months 56.4% 3-6 months 18.5% 6+ months 4.4% Other 1.4% vs. 2011: No dataavailable.45 Source: Flash Games Market Survey 7/2012 46. 85% OF DEVS MAKE A GAME IN 540 HOURS OR LESS On Average, How Many Engineering Hours Does It Take You To Develop A Mobile Game?0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% Less than 160 hours 40.8% 160-540 hours 44.1% 540-960 hours 10.1% 960+ hours 4.7% Other 1.7% vs. 2011: No dataavailable. Source: Flash Games Market Survey 7/2012 46 47. 78% OF DEVS MADE LESS THAN $5,000 IN LAST YEAR How Much Revenue Have You Made From Mobile Development In The Past 12 Months? 78.2% vs. 2011: No data80.0% available.70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.7% 10.0% 4.7% 2.9% 3.2% 0.0% $0 - $5,000 $5,000 - $10,000 - $25,000 - $50,000+ $10,000 $25,000 $50,000 47 Source: Flash Games Market Survey 7/2012 48. SAME MONETIZATION STRATEGY FOR iOS & ANDROID When Making A Game For The iOS And Android Markets, Does Your Monetization Strategy Change? Yes, my strategy is dierent 10.7% I only make games for the Android market 12.5% I only make games for the iOS market 18.5% My strategy is the same for both markets 58.2% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% vs. 2011: No data available. 48 Source: Flash Games Market Survey 7/2012 49. MAJORITY OF DEVS DO NOT USE PLATFORM SERVICESDo You Use Any Platform Services When Developing Mobile Games? IfSo, What Is Your Incentive To Do So? 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Faster Hme to market 28.9% I dont want to manage my own servers 17.9% Allows me to focus on the aspects of game development that I 22.6% really enjoy I dont use plaeorm services 56.1% Other 0.5% vs. 2011: No data available.49Source: Flash Games Market Survey 7/2012 50. 63% TEST MOBILE GAME IDEAS WITH FLASHDo You Test Your Game Ideas Before Developing A Mobile Version? IfSo, How?70% vs. 2011: No data 63% available.60% 50% 38% 40% 30% 20% 16% 10% 6% 0% I make a Flash I run the idea by I dont test my Other version rst to test other develpers / ideas before I the concept friends and get make the game their feedback 50Source: Flash Games Market Survey 7/2012 51. MARKETING IS BIGGEST PAIN-POINTWhat Is Your Biggest Pain-Point In Mobile Game Development?60.0% 53.4% vs. 2011: No data available.50.0% 40.0% 30.0% 20.8% 19.4% 20.0% 10.0% 6.2% 0.0% MarkeHng PorHng MoneHzaHon Other Source: Flash Games Market Survey 7/201251 52. CREATING MOBILE GAMES: AIR AND NATIVE CODE How Do You Create Your Mobile Games? (Select All That Apply)67.70% vs. 2011: No data70.00% available. 60.00% 50.00% 40.00% 29.80% 30.00% 20.00% 16.10% 10.00% 9.80% 0.00% 5.90% Port via Adobe AIR Write naHve Port via code for each Other Unity3D mobile Pay someone plaeorm else to do it 52Source: Flash Games Market Survey 7/2012 53. MOBILE MARKETING STRATEGYHow Do You Market Your Game?80.0% 80.0% vs. 2011: No data available. 70.0% 60.0% 50.0% 40.0% 30.0% 22.6% 20.0% 10.0% 17.6% 0.0% 8.0% 14.0% Release and hope for the best Partner with large networks Developer co-promoHon Paid reviews Other 53Source: Flash Games Market Survey 7/2012 54. AS MANY PLATFORMS AS POSSIBLEAfter Trying Out Mobile Platforms, What Is Your View Of CreatingGames For The Web? Dont need to make online games anymore 7% 7% 10% Need to make as many games for as many plaeorms as possible, including mobile and online Giving up on mobile, going back to online games 76% Other vs. 2011: No dataavailable.54Source: Flash Games Market Survey 7/2012 55. Publisher Responses Publishers, Including Developers & Publishers 55 56. PORTAL PUBLISHER BACKGROUNDS VARYDo You Create Flash Game Websites Full-time?If Not, What Is Your Full-Time Profession?Top responses Student (10.4%) Web Developer (6.2%) 34.8% Teacher (4.1%) Designer (4.1%) 65.1% Yes No vs. 2011: Slightincrease in full-timeportal publishers(+2.5%). Teachers anddesigners joinholdovers to round outtop 5 responses.Source: Flash Games Market Survey 7/2012 56 57. EXPERIENCED VETERANS AND ROOKIESHow Long Have You Been Creating Flash Gaming Websites? 39.7% 40.0% 35.0% vs. 2011: 5+ years category jumped up30.0% 9.6%, and the Less than 1 year category 25.0% increased 5.6%. Big22.1% decrease in the 1-2 20.0% 19.2% years category 18.8% (-10.4%).15.0% 10.0% 5.0% 0.0% Less than 1 year 1 - 2 years 2 - 5 years 5+ years Source: Flash Games Market Survey 7/201257 58. PUBLISHERS CONTINUE MULTIPLE SITES TRENDHow Many Flash Gaming Websites Do You Own?0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 1 - 2 sites 54.0% 3 - 5 sites 15.5% 6 - 10 sites 4.9% 11 - 20 sites 2.8% 21+ sites 3.2% N/A- never created a Flash site 19.2% vs. 2011: Decrease in the 1-2 sitescategory (-9.7%), and an increase inthe 21+ sites category (+2.8%)Source: Flash Games Market Survey 7/2011 58 59. FEW SITES ARE OPTIMIZED FOR MOBILE DEVICES Are Your Sites Optimized For Mobile? 18.0% Yes No 81.9% vs. 2011: Slightincrease in sitesbeing optimizedfor mobile (+3%).59Source: Flash Games Market Survey 7/2012 60. MANY SMALL PORTALS MAKE UP A BIG INDUSTRY How Many Unique Visitors Visit Your Site(s) Each Month?0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 0 - 200k unique visitors 52.4% 200k - 500k unique visitors 9.4% 500k - 1 million unique visitors 7.7% 1 million - 5 million unique visitors 6.1% 5 million - 10 million unique visitors 1.2% 10 million or more unique visitors 1.6% N/A- Im not sure or prefer not to disclose 21.3% Other 1.6% vs. 2011: Sharp decrease in the 0-200kcategory (-14%), with increases in the500k-1M (+2.8%) and 1M-5M (+3%)categories. Source: Flash Games Market Survey 7/2012 60 61. SMALL TEAMS ON THE RISEDo You Manage Your Website By Yourself, Or With A Team? 70.0% 63.1% 60.0% vs. 2011: One-manteams are down50.0% (-10%), while smallteams are up 40.0% (+7.4%).30.0% 27.8% 20.0% 10.0% 0.0% 4.0% 0.8% 4.0% Myself (single Small team publisher) (2-5 Medium members) team (6-50 Large team members) (50+ Other members) (please specify) 61Source: Flash Games Market Survey 7/2012 62. ADS ON WEBSITES STILL #1 MONETIZATION METHODHow Do You Make Money From Your Flash Gaming Website? Select All That Apply80.0% 73.7% 70.0% vs. 2011:60.0% Downloadables50.0% (-7.3%) and ads onwebsite (-4.3%) are40.0% slightly down, while30.0% 21.7% virtual goods are up20.0% (+2.3%).7.3% 8.1% 6.5% 10.0% 4.0% 0.0% 62 Source: Flash Games Market Survey 7/2012 63. SITE MONETIZATION IMPROVINGHow Much Money Do You Make Each Month From Your Gaming Websites?0.0% 10.0% 20.0% 30.0% $0 - $500 USD per month 40.0% 50.0% 60.0% $501 - $1,000 USD per month 8.6% $1,001 - $5,000 per month 7.7% 54.5% $5,001 - $10,000 per month 2.0% $10,001 - $25,000 per month 1.2% $25,000 + per month 3.6% N/A- Do not wish to disclose 22.1% vs. 2011: Decrease in $0-$500 category (-6%), leading to slight increases across other categories, including a 3.2% increase in the $25,000+ categorySource: Flash Games Market Survey 7/2012 63 64. ON-SITE ADS #1 REVENUE SOURCEWhat Are Your Top 3 Ways Of Making Money From Game Development? 70.0% 60.0% 50.0% 40.0% 30.0% #1 Revenue Source 20.0% #2 Revenue Source 10.0% #3 Revenue Source 0.0% vs. 2011: Decreases in ads as #1 source (-7.9%), and downloadables (-11.1%) & Microtransactions (-18.1%) as #2 sources. Source: Flash Games Market Survey 7/201264 65. ALMOST 20% OF PUBLISHERS HAVE UNIQUE GAME APIS Do You Have Your Own Unique APIs For Games On Your Site? 25.8% Yes No 74.1% vs 2011: 6.8% increase in publishers that have their own unique APIs.65Source: Flash Games Market Survey 7/2012 66. MOCHI MEDIA IS TOP CONTENT SOURCEHow Do You Find Games For Your Site(s)? Select All That Apply 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Talk Arcades 23.7% Mochi Media DistribuHon 59.0% FlashGameDistribuHon 36.0% Playtomic DistribuHon 17.6% Other 37.2% Top answer for other: vs. 2011: Mochi Media decreased (-16%) , remains top content source. Look for them on topTalk Arcades increased (+5.1%).portal sites 66Source: Flash Games Market Survey 7/2012 67. OVER 80% OF PORTAL OWNERS CREATE THEIR OWN SITESDo You Use Arcade Scripts? If So, Which Ones? Top Script used: AV Arcade (36.8% ) 19.6% No Yes 80.3% vs. 2011: No significant changes.Source: Flash Games Market Survey 7/201267 68. PHP MOST POPULAR TECHNOLOGY FOR PUBLISHERS Which Web Technologies Do You Use To Build / Develop Your Site(s)? Select All That Apply 80.0% 77.4% Top answer for other: 70.0% HTML 60.0% 50.0% 40.0% 30.0% 20.0% 20.0% 15.5% vs. 2011: PHP decreased 10.0% 5.7% 6.9% 6.5% (-7.1%), Ruby increased slightly (+3.8%).0.0% PHP Python Ruby Java C# Other 68Source: Flash Games Market Survey 7/2012 69. MORE RELIANCE ON SPONSORSHIPS AS TRAFFIC DRIVERS How Do You Get Traffic To Your Website? Select All That Apply. 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Paid adverHsements (e.g. Google AdWords) 32.3% Banner trac exchange network (e.g. Funklicks) 16.8% Link exchange with other sites 26.6% Create your own games that link back to your site 51.2% Sponsor games created by others that link back to your site 21.7% Other 23.3% vs. 2011: Big increase in sponsoring games(+9.3%). Decrease in creating own games(-8.1%), banner exchange (-3.6%), and linkexchange (-5.1%). 69Source: Flash Games Market Survey 7/2012 70. PUBLISHERS WHO ALSO SPONSOR GAMESDo You Sponsor Games? If So, What Would You Estimate Is The AverageAmount That You Pay To Sponsor A Game?How Much Do You Pay? Avg. price is $1,000, based on 19 responses 17.6% No 82.3% Yes vs. 2011: More publishers sponsoring games (+6.5%). Average price is up $640 (+140%).Source: Flash Games Market Survey 7/2012 70 71. PUBLISHERS SPONSORING MORE GAMES How Many Games Do You Sponsor Each Month?1 21.4% 2 - 5 33.3% 6 to 10 2.3% 10+ 7.1% Other 35.7% vs. 2011: Increasesacross allcategories morethan 1: 2-5(+7.7%), 6-10(+7.1%), 10+(+2.3%).Source: Flash Games Market Survey 7/201271 72. FGL DRIVES SPONSORSHIPS How Do You Find Games Up For Sponsorship? 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% FlashGameLicense.com 85.7% ExisHng relaHonships: developers contact you directly 52.3% ExisHng relaHonships: you contact developers directly 47.6% Other forums 9.5% vs. 2011: Sharp increaseforFlashGameLicense.com(FGL) as a source forsponsorship (+29.7%).Source: Flash Games Market Survey 7/201272 73. PUBLISHERS LICENSING GAMESDo 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? AVG. PRICE IS $200, BASED ON9.5% 6 RESPONSES No Yes 90.4% vs. 2011: Average license price is down $533 (-72%). Source: Flash Games Market Survey 7/201273 74. TRAFFIC & REVENUE INCREASEDOver The Last Year, Which Of These Is Most Accurate For You? No change in web trac or revenue 24.2% Web trac decreased, revenue decreased 14.1% Web trac increased, revenue decreased 11.8% Web trac decreased, revenue increased 4.1% Web trac increased, revenue increased 45.6% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% vs. 2011: 6.8% decrease in publishersthat had an increase in both trafficand revenue. 4.9% increase in thosereporting no change. 74Source: Flash Games Market Survey 7/2012 75. MIXED IMPACT OF SOCIAL MEDIAHow Has The Presence Of Large Social Media Gaming SitesImpacted Your Business? 39.7% 40.0% 34.7% vs. 2011: No data35.0% available.30.0% 25.0% 19.1% 20.0% 15.0% 10.0% 5.0% 0.0% It has become more It has provided more No impact dicult (more costly) cross-promoHon and to drive trac to my trac-driving site opportuniHes 75Source: Flash Games Market Survey 7/2012 76. TOP INFORMATION SOURCES: GOOGLE, FORUMS & BLOGS Where Do You Go When You Need To Get Information On Flash Games? (Choose All That Apply) 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% Forums 66.6% Blogs 57.9% Other publishing sites 36.5% "Google it" 74.4% Online publicaHons 22.8% YouTube 19.1% Other 4.1% vs. 2011: Big increase for YouTube asinformation source (+13.6%). Google(-8.2%), online publications (-3.3%),and blogs (-4.5%) decreased. 76 Source: Flash Games Market Survey 7/2012 77. CONTACT INFOContact Info:Colin CuppSr. Product Marketing Manager(415)364-8682colin@mochimedia.com77 78. 78