Diversity and Games Growth Opportunities Abound

Wanda MeloniM2 Research

Women’s Luncheon – Casual ConnectSan Francisco, August 1, 2013

2

Global Games Market Shows 6.7% Growth Rate

3

Global Market Per Segment | 2013E

4

Global Market Per Region | 2013E

5

Smartphones & Tablets Driving Change

6

Mobile Gamer Growth per Age & Gender

7

Gamers per Segment | Global and North AmericaG

LOBA

LN

ORT

H A

MER

ICA

1,240

ALL GAMERS (MILLION, GLOBAL)

ALL GAMERS (MILLION, NORTH AMERICA)

619 817 282 652 173 543 1,045

192 79 112 56 104 37 126 160

48% 36% 42% 46% 50% 45% 45% 48%

92 28 47 26 52 17 57 77

Q2 2013

FEMALE GAMERS (MILLION, NORTH AMERICA)

© 2013 Newzoo

8

Home Situation Tablet & Smartphone Gamers

39% of 92M US Smartphone gamers and42% of 50M US Tablet gamers has kids at home

FACT: 30M Americans play on both a Smartphone and a Tablet © 2013 Newzoo

9

Kids and Games

Kids are quickly adopting mobile devices as a preferred game platform.

TABLETS: • 79% - play on an iPad

MOBILE PHONES: • 64% - kids have mobile phones• Girls are playing more on mobile devices than boys

• Kids are engaging with multiple screens simultaneously• Not just at the PC, but on the living room couch as well• Mobile devices are changing the way kids engage with their games

Source: M2 Research, KidSay

1. Kids influence over 75% of video game purchases2. Over 93% say they play games online

10

Women in Games – Comparison with Film

Sources: Celluloid Ceiling, Game Developer Magazine

Directors Writers Exec. Producers Producers Editors Cinematographers0%

5%

10%

15%

20%

25%

Women in the Film Industry

Design

ers

Artists

/Anim

ators

Business

/Lega

l

Producer

s

Audio Develo

pers

QA Teste

rs

Progra

mmers0%

5%

10%

15%

20%

25%

Women in the Games Industry

11

Women in the Industry

Diversity Survey – While the average wage for both men and women $50-$75K, overall women had a higher education.

Women:• 37% have undergraduate degree• 49% post graduate degrees • 5% PhD Men:• 46.9% have undergraduate degree• 37.6% post graduate degrees • 3% PhD

Source: M2 Research

As an industry – 1. Women currently comprise less than 15% of game development2. More opportunity to market and support them as consumers

12

Diversity of Platforms• Number of screen options has doubled.

Diversity of Regions• Global market is important but regions are still unique.

Diversity of Consumers• Consumers are more diverse – no longer a one size fits all market.

Diversity of Content• New genres, new peripherals, educational, games for good, corporate,training, engagement/loyalty.

Diversity of Studios• Studios will succeed when development and management teams have diversity.

Diversity Critical to Success

1

2

3

4

5

13

Games now reach more people regardless of age, demographics or geography

Games are Universal

14

Women’s Luncheon – Casual Connect Panel

Panelist Title Company Twitter

Michelle Leyden-Li Senior Director of Marketing

Qualcomm @snapdragon

Erin Glenn CFO Kixeye @leeeringlenn@kixeye

Brenda Gershkovitch CEO Silicon Sisters @bren67@siliconsisters

Asra Rasheed Co-Founder Reading RainbowRRKids

@asrarasheed@readingrainbow

Wanda Meloni Founder, Senior Analyst

M2 Research @wandameloni@m2research

Please email me for a copy of this slide deck: wanda@m2research.com