Casual Connect 2012: Mid-core gaming

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mid-core gaming immersive experience and casual gameplay compromise or best of both worlds? 2012 Peter Warman CEO Newzoo [email protected]

description

Mid-Core Gaming. Sizing and Profiling the Opportunity in Western and Emerging Markets

Transcript of Casual Connect 2012: Mid-core gaming

Page 1: Casual Connect 2012: Mid-core gaming

mid-core gaming immersive experience and casual gameplay

compromise or best of both worlds?

2012

Peter Warman CEO Newzoo

[email protected]

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mid-core gaming immersive experience

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mid-core gaming casual gameplay

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Golf VI Volkswagen

Bejeweled PopCap

Cygnet Aston Martin

Panamera Porsche

Enzo Ferrari

Army Attack Digital Chocolate

EVE online CCP

League of Legends Riot Games

mid-core gaming immersive experience and casual gameplay

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Golf VI Volkswagen

Bejeweled PopCap

Cygnet Aston Martin

Panamera Porsche

Enzo Ferrari

Army Attack Digital Chocolate

EVE online CCP

League of Legends Riot Games

mid-core gaming immersive experience and casual gameplay

Technically, League of Legends is a “mid-core” MMO, meaning you don’t have to play for 40 hours a week to enjoy it. The market for mid-core MMOs is vast—much larger than for hard-core MMOs such as World of Warcraft--in

that the unique immersive aspects of MMO play are available to a much larger, casual gaming audience.

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edgeworld

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key trends shaping the mid-core market

1. Old love never dies The love for an immersive game experience does not go away as people grow older. It is just that the entry barrier and

gameplay is not adapted to their “new life”. Their love remains largely answered in the current market. Mid-core games could be the answer, activating gamers that have stopped playing core-games.

2. More gamers to come Over the past ten years, games have become an integral part of every youngsters life. Mid-core games can ensure that

these young core gamers keep playing immersive games as they grow older.

3. Time is Money As youngsters start a working and family life leisure time becomes scarce. At the same time they have more money to spend. To get the most out of leisure time, they are prepared to spend more money to enjoy. Mid-core games cater to

this. Free-to-play is the only way to let people feel the casual gameplay.

4. New interfaces. Everywhere Intuitive interfaces (e.g. on tablet and phones) have forced core genre games to offer easier controls and adapted

interfaces. Still these are very successful. Consumers are getting used to this type of interactivity increasing the appeal towards core gamers as well as increasing the potential player base. In addition, these interfaces allow gaming in new places and social settings. And, do not forget the growing number of girls that are going for the core stuff. Still hugely

underestimated.

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US UK Germany France Spain Netherlands Belgium Italy Brazil Mexico Russia China Korea

US Europe* Emerging* Asia*

$21.5bn 2011E

215m hrs/day

Money

Time

€16.5bn 2011E

175m hrs/day

$4.5bn 2011E

155m hrs/day

$13.5bn 2011E

165m hrs/day

sizing the mid-core market where to start? market size per segment/platform?

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Global

Money Time

$60-70bn 2011E

900m-1bn 2011E

27% of money

49% of time

Growth Potential?

Casual, Social, Mobile Casual, Social, Mobile

“core” segments/platforms take more money than time “casual” segments/platforms take more time than money

This gap is closing fast in the West The gap is a lot smaller in Emerging markets that have no legacy, especially Brazil

F2P, Mid-core and Cross-platform gaming will accelerate this trend

sizing the mid-core market where to start? money versus time spend?

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US Europe*

$21.5bn 2011E

€16.5bn 2011E

Mid-core market

$1.2bn €1.1bn

Total Market

21.6M 24.0M

13.1M 15.7M

Mid-core opportunity

$280M €260M

13.3M 10.2M

3.2M 3.6M

Spend

Players

Spenders

Spend

Players

Spenders

5.5% of market

23% growth

6.7% of market

24% growth

sizing the mid-core market First: our conclusion

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sizing the mid-core market What did we analyze?

10-30

30-50

Age

Age

66.0M

35.1M

60.0M

14.6M

44.6M

27.4M

49.7M

29.1M

53% 24% 62% 59%

X% share of paying players

All gamers Social/Casual Both Core

91% of gamers plays online or mobile casual/social games

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sizing the mid-core market What did we analyze?

30-50 Age

51.7M

26.8M

43.3M

10.2M

24.0M 15.7M

28.6M 18.5M

52% 24% 66% 65%

X% share of paying players

All gamers Social/Casual Both Core

84% of gamers plays online or mobile casual/social games

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sizing the mid-core market What did we analyze?

30-50 Age

51.7M

26.8M

43.3M

10.2M

24.0M 15.7M

28.6M 18.5M

52% 24% 66% 65%

X% share of paying players

All gamers Social/Casual Both Core

14.3M 8.3M 16.7M 4.4M 20.6M 11.7M 21.1M 10.6M

-22% -24%

abs

% -28% -30% -46% -43% -43% -37%

Drop

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sizing the mid-core market Mid-core market

30-50 Age

51.7M

26.8M

43.3M

10.2M

24.0M 15.7M

28.6M 18.5M

52% 24% 66% 65%

X% share of paying players

All gamers Social/Casual Both Core

14.3M 8.3M 16.7M 4.4M 20.6M 11.7M 21.1M 10.6M

-22% -24%

abs

% -28% -30% -46% -43% -43% -37%

Drop

€1,1bn / year 24.0M players 15.7M payers

22% plays F2P MMOs

43% in the US

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sizing the mid-core market Mid-core opportunity > smaller drop in core/casual players and payers

30-50 Age

51.7M

26.8M

43.3M

10.2M

24.0M 15.7M

28.6M 18.5M

52% 24% 66% 65%

X% share of paying players

All gamers Social/Casual Both Core

14.3M 8.3M 16.7M 4.4M 20.6M 11.7M 21.1M 10.6M

-22% -24%

abs

% -28% -30% -46% -43% -43% -37%

Drop

€1,1bn / year 24.0M players 15.7M payers

€260M / year 10.2M players 3.6M payers

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Age 10 to 25 26 to 40 Change

Casual 4,92€ 7,40€ 50%

Social 5,25€ 5,77€ 10%

Mobile 3,58€ 5,40€ 51%

MMO 6,16€ 6,79€ 10%

Console 9,74€ 9,45€ -3%

PC Mac Boxed 7,12€ 7,23€ 1%

PC Mac Download 6,65€ 6,36€ -4%

Age 10 to 30 31 to 50 Change

Casual 6,63€ 5,12€ -23%

Social 5,70€ 4,84€ -15%

Mobile 4,40€ 3,88€ -12%

MMO 6,51€ 6,02€ -7%

Console 9,98€ 9,16€ -8%

PC Mac Boxed 7,23€ 7,09€ -2%

PC Mac Download 6,88€ 5,15€ -25%

Age 10 to 30 31 to 50 Change

Casual 7,86€ 5,69€ -28%

Social 5,50€ 7,52€ 37%

Mobile 4,56€ 5,16€ 13%

MMO 7,16€ 7,39€ 3%

Console 11,36€ 11,68€ 3%

PC Mac Boxed 8,04€ 8,40€ 4%

PC Mac Download 6,55€ 7,19€ 10%

In the US, average spending goes up in all segments except online casual, explained by the move of casual budgets to mobile and social networks. This is not the case in the EU. We expect the EU to follow the trend in the US as seen with many other trends. This is backed up by the increase in spending if we make the brackets slighty younger: 10-25 and 26-40.

profiling the mid-core market do typical mid-core gamers spend more? comparing age groups.

+6% -13%

+16%

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Remember: there are more drivers than age! shaping the mid-core market

1. Old love never dies

2. More gamers to come

3. Time is money

4. New interfaces. Everywhere

Western mid-core market potential >$2bn

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profiling the mid-core market do not focus on one screen!

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mid-core gaming immersive experience and casual gameplay

Western mid-core market potential >$2bn

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mid-core gaming immersive experience and casual gameplay

compromise or best of both worlds?

2012

Peter Warman CEO Newzoo

[email protected]

Page 26: Casual Connect 2012: Mid-core gaming

mid-core gaming immersive experience and casual gameplay

compromise or best of both worlds?

2012

Peter Warman CEO Newzoo

[email protected]