Portable Gaming Spotlight, 2Q14 September 2014

1

Installed Base Snapshot

2

2Q14 Spending Patterns

3

Key Themes & Takeaways

2  

Worldwide  Consumer  Smartphone  &  Tablet   Installed  Base  Shares,  2Q13  &  2Q14 75%  

50%  

+8.4  pts  

-­‐1.9  pts  

-­‐6.4  pts  

2Q13  

2Q14  

25%  

Source:  IDC  

0%   Android  

iOS  

All  Others  

•  Android’s share of the combined consumer smartphone & tablet installed based (IB) hit 70% •  This combined consumer IB topped 2.1 billion worldwide •  “All Others” is mostly Windows Phone, BlackBerry & Symbian devices

3  

Worldwide  Gaming-­‐OpGmized  Handheld  Game  Shipments:   Packaged  Goods  &  Digital  Full  Game  Downloads,  2Q13  &  2Q14*

Millions  (Units)  

12   10  

   2Q13  

8  

•  Hardware platforms span all SKUs

6   4  

* Represents combined packaged game shipments & digitally purchased copies of these same games (excludes titles that received digital distribution only).

2   0  

   2Q14  

Nintendo  3DS  &   Sony  PlayStaJon   Nintendo  DS  &   2DS   Vita  &  PSP   DSi  

Source:  IDC  

•  The total installed base of these devices dipped under 200MM in 2Q14 •  Total packaged & digital full game software shipments/sales volumes in 2Q14 were 27% lower than in 2Q13

4  

1

Installed Base Snapshot

2

2Q14 Spending Patterns

3

Key Themes & Takeaways

5  

Worldwide  Share  of  iOS  &  Google  Play  Downloads  &   Consumer  Spending  ATributable  to  Games,  2Q13  &  2Q14 Games:  Share  of  App  Store   Downloads  

Games:  Share  of  App  Store   Consumer  Spending  

100%  

100%  

75%  

75%  

50%  

50%  

25%  

25%  

0%  

0%  

iOS  App  Store   Google  Play  

2Q13   2Q14   Source:   App  Annie   iOS  App  Store    

Google  Play    

•  Games represented around 40% of downloads in both app stores •  The share of consumer spending on games in Google Play grew incrementally from 2Q13 to 2Q14 & was effectively flat for iOS •  Results span applicable smartphones & tablets, plus iPod Touch

6  

Indexed  Consumer   Spending  on  Games    (iOS  2Q13  Indexed  to  100)  

Worldwide  Mobile  &  Portable  Game  Consumer  Spending,   2Q13  &  2Q14 200   2Q13   150  

•  Gaming-optimized handheld revenue includes packaged & digital

100   50   0  

2Q14  

•  All ad revenue excluded iOS  App  Store  

Google  Play  

Gaming-­‐OpJmized   Handhelds  

Source:   App  Annie  &  IDC  

•  iOS app store game revenue grew over 70% from 2Q13 to 2Q14 & Google Play more than doubled total game revenue generated •  Gaming-optimized handheld software revenue declined 28% over the same period

7  

Worldwide  Mobile  &  Portable  Game  Consumer   Spending  Shares  by  Region,  2Q13  &  2Q14 100%  

+2.8  pts  

North  America  

75%   +1.0  pts  

50%   25%  

Western  Europe   Asia-­‐Pacific  

+8.6  pts  

Rest  of  World  

0%   2Q13   2Q14   iOS  App  Store   Games  

   

2Q13         2Q14         Google  Play   Games  

       

2Q13     2Q14     Gaming-­‐OpJmized   Handhelds  

Source:   App  Annie  &  IDC  

•  Asia-Pacific gained in share of game spending in the iOS App Store, while Western Europe outpaced the market on Google Play •  On gaming-optimized handheld platforms, Western Europe (& Rest of World) showed incremental share gains

8  

Top  5  Grossing  Portable  Games  Worldwide  by   PlaYorm,  2Q14   Rank  

iOS  App  Store  

Google  Play  

Gaming-­‐OpGmized   Handhelds  

1

Clash of Clans Supercell, Finland

Puzzle & Dragons GungHo Online, Japan

Pokémon X/Y N3DS; Nintendo, Japan

2

Candy Crush Saga King, United Kingdom

Clash of Clans Supercell, Finland

Youkai Watch N3DS; Level-5, Japan

3

Puzzle & Dragons GungHo Online, Japan

Candy Crush Saga King, United Kingdom

Kirby: Triple Deluxe N3DS; Nintendo, Japan

4

Game of War – Fire Age Machine Zone, United States

モンスターストライク (Monster Strike) Mixi, Japan

Animal Crossing: New Leaf N3DS; Nintendo, Japan

5

Hay Day Supercell, Finland

The World of Mystic Wiz COLOPL, Japan

Freedom Wars PSV; SCE Japan Studio, Japan

• 

= New entrant to top 5 in 2Q14 (not in top 5 for 1Q14)

Source:   App  Annie  &  IDC  

9  

1

Installed Base Snapshot

2

2Q14 Spending Patterns

3

Key Themes & Takeaways

10  

Key  Themes  &  Takeaways,  2Q14   •  Consumer  spending  on  games  increased  notably  from  2Q13  to   2Q14;  iOS  App  Store  revenue  grew  over  70%  worldwide,  while   Google  Play  more  than  doubled  in  revenue   •  iOS  game  revenue  held  up  parJcularly  well  in  the  United  States,   generaJng  ~2.4  Jmes  as  much  revenue  as  Google  Play  games   •  Sony's  PlayStaJon  Vita  showed  signs  of  life  in  the  gaming-­‐ opJmized  handheld  space;  a  Vita  Jtle  made  the  top  5  grossing  list   in  consecuJve  quarters  (Final  Fantasy  X/X2  HD  in  1Q14,  Freedom   Wars  in  2Q14)   •  Seasonality  &  a  relaJve  lack  of  AAA-­‐quality  Jtle  releases  depressed   gaming-­‐opJmized  handheld  sales,  but  the  launch  pipeline  suggests   11   sales  will  rebound  sharply  in  the  laeer  half  of  this  year   Report methodology and updates are available here!

@lewisAWard @AppAnnie

[email protected] [email protected]