DIGITAL GAMES 2014 IN LATIN AMERICA...Latin America digital games market share by country and gaming segment, 2014E Brazil 35% Mexico 22% Argentina 15% Rest of Latin America* 9% Chile

1Copyright © 2014 SuperData Research. All rights reserved. | www.superdataresearch.com | www.videogamesintelligence.com/monetization

DIGITAL GAMES IN LATIN AMERICAGAME MONETIZATION USA SUMMIT

SPECIAL EDITION

2014

POWERED BY

http://www.superdataresearch.com

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SuperData provides market intelligence on the online, digital and mobile games industry.

Every month we collect point-of-sale data directly from developers, publishers and payment providers, across six major digital game categories: social games, free-to-play MMOs, subscription-based MMOs, digital console, downloadable PC games, and mobile games. Based on the spending of 37 million unique digital gamers, we are able to provide an accurate reading of the global digital games market, identify key industry trends, offer reliable forecasts, establish market share, and evaluate marketing spend.

SuperData offers insight into the next generation of interactive entertainment.

Using our proprietary panel of 37 million unique digital gamers, we establish key industry benchmarks such as monthly active users, conversion rates, average revenue per paying user, and title-level revenue estimates. Combined with qualitative consumer studies, customers use our data to evaluate their performance, identify key growth opportunities, assess revenue potential, optimize their efforts, and better understand their audience’s wants and needs.

About Who we are.

SuperData | Digital games market intelligence

For a more detailed overview and explanation of our methodology and data collection, please refer to our website: http://www.superdataresearch.com/methodologyFor an explanation of our terminology, please visit: http://www.superdataresearch.com/terminology

Copyright © 2014 SuperData Research. All rights reserved. | www.superdataresearch.com | www.videogamesintelligence.com/monetization

http://www.superdataresearch.com/methodology

http://www.superdataresearch.com/terminology


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MARKET-LEVEL DATA

50 CONTRIBUTING PUBLISHERS

4 KEY METRICS

450+ UNIQUE TITLES

37MM UNIQUE PAYING USERS

200MM+ TRANSACTIONS

country-level and regional data available

regional data available only

We take a ‘big data' approach when establishing market size. By analyzing millions of transactions worldwide, we are able to gain both a macro- and micro-level grasp on how digital gamers pay and play. Our transactional dataset goes back over a decade and offers reliable payment insights that we couple with other market data such as device penetration rates, population and spending power to create our proprietary model. We report on key metrics such as monthly active users, conversion rates, average revenue per paying user by both month and year. Our estimates span across six key digital gaming segments, including mobile, social, free-to-play and pay-to-play MMO, PC and console.

6 GAMING SEGMENTS

26 COUNTRIES

10 YEARS OF DATA

Market data What we do.




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Don’t miss our Latin America data at the Summit SuperData will discuss how to win over this $4B emerging digital games market.


Stephanie Llamas Senior Analyst, Consumer Insights

Stephanie Llamas, Senior Analyst at SuperData Research, will present a data-driven session exploring the areas of opportunity in Latin America for digital games and discuss how to strategically navigate this unique market. Attendees will learn which segments are showing the fastest growth, the highest spending and the most promise for each major Latin American market.

!At $4.5 billion in annual revenues, the Latin American digital games market is forecasted to grow 12% and retain almost 10% of the global market by year’s end.

!• Hear what’s driving growth in Brazil as well as

other key markets in Latin American markets • Understand how to steer clear of

developmental and technological setbacks in the region

• Get data on regional points of opportunity and expert advice on how to tap into this growing market

Digital Games in Latin America: How to Win Over an Emerging Market



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LATIN AMERICAN MARKET



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LatAm’s digital games revenue reaches $4.5B Mobile is Latin America’s largest segment, accounting for almost half of 2014E revenues.

Latin American year-over-year market growth is forecasted to reach 16% in 2015E. Latin America currently accounts for 10% of the worldwide digital games market, and as spending and conversion increase across the region, that market share will rise 7% by next year.

Brazil accounts for more than a third of all Latin American digital games revenue. Brazil accounts for 40% of the Latin America’s population, making it the largest country in the region. However, above average spending in countries like Mexico, Argentina and Chile are decreasing Brazil’s market share.

Latin America’s top segments see the fastest growth in Mexico, Venezuela and Chile. Free-to-play MMOs will be the fastest growing segment region-wide as subscription-based MMOs lose steam and the region sees more localized servers.

*Rest of Latin America accounts for less than 1% of Latin America total and refers to Bolivia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, French Guyana, Guatemala, Guyana, Nicaragua, Panama, Paraguay, Puerto Rico, Suriname and Uruguay. **Percentages may not add up to 100% due to rounding.

Year-over-year revenue growth: Fastest growing Latin American markets by segment, 2014E

F2P MMO

Social

Mobile

Mexico +17%

Venezuela +58%

Chile +42%

Latin America digital games market share by country and gaming segment, 2014E

Brazil 35%

Mexico 22%

Argentina 15%

Rest of Latin

America* 9%

Chile 7%

Colombia 5%

Peru 3%

Mobile 43%

Social 27%

Free-to -play MMO 17%

PC 7%

Pay-to -play MMO 3%

Console 6%

$4.5B Latin American digital games

market

Venezuela 5%

2013 2014E 2015

$5.3$4.5$3.6

Latin America digital games market size



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LatAm lifetime value comes in just under $90. Almost a quarter of Latin American digital gaming spenders prefer to use mobile payments.

Payment preferences for digital games in Latin America, 2014E$15.63

Average monthly spend per payer (days)

$87.79 Average total spent during player lifetime

169 Paying player

lifetime (days)*Other 3%

Prepaid card 15%

eWallet 17%

Credit card 20%

Mobile 21%

Bank transfer 24%

$4.5B Size of Latin American online

games market in 2014E.

*Playing lifetime refers to the average number of days between a player’s (paying and non-paying) first and last login of paying and non-paying users; playing lifetime refers the average number of days between a payer’s first and last purchase.

Latin American digital spenders in Latin America pay an average of $88 over the course of their lifetime in a a single game. As digital gaming models become more ubiquitous in Latin America and low-paying players remove themselves from the spending pool, the average revenue per spender is estimated to grow over the next few years.

Bank transfer payments are the most popular payment method in Latin America. While preference for bank transfers, particularly the Boleto Bancario brand, has stayed strong in the region, rising popularity of mobile payments has lowered market share for transfers. Latin America is well-positioned for mobile payments growth with over 100% mobile penetration and initiatives by local governments for mobile banking and mobile point-of-sale investments.



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BRAZIL



Brazil’s regional market share declines 3% in 2015E Mobile games are the largest segment in Brazil but social games are growing fastest.

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2013 2014E 2015E

$5.3

$4.5

$3.6

$1.8$1.6

$1.3

Braz

il

Latin

Am

erica

tota

l

Brazil digital games market forecast and market share vs Latin America total, (billion, $)

2013 2014E

Brazil digital games market share by game category

YoY Growth %

Social

Mobile

ConsoleP2P MMO

PC

F2P MMO

+15%

-11%

+15%

+35%

+25%

+14%

Brazil’s regional market share declines to below 34% in 2015E. Higher-than average spending in other Latin American countries and a boom in broadband and smartphone penetration allow the rest of the region to catch up. Increasingly affordable smartphone options keep Brazil’s mobile growth at 25%. Discounts on smartphones from mobile contracts, the availability of financing options for phones and cheaper Android models have boosted smartphone penetration and mobile data subscriptions in Brazil. Social games are still the fastest growing segment in Brazil. Brazil boasts the third highest Facebook participation worldwide and increasing localization has provided for growth in spending. P2P MMO still rapidly losing players to F2P as new titles continue to launch in Brazil. An increase in title launches like Planetside 2 are offering Brazilians cheaper alternatives to the subscription model. High import taxes continue to handicap Brazil’s console and PC markets. Taxes on console and PC games inflate prices 60%-150% higher in Brazil than in the U.S.

Shar

e of

mar

ket t

otal

50%

10

0%

34.8% 34

.7% 33.5%



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Social & F2P MMO show massive potential in Brazil Social games increase 35% this year while F2P MMOs will grow more than 20% by 2015E.

Social revenue growth: Brazil vs. U.S.

-5.9%

7.3%

-20.8%

13.4%

34.6%47.9%

2013 2014E 2015E

5%8%

16%

22% 23%

26%6%7%

21%

26%12%

29%

Virtual World

MOBAFPS

2013 vs.

2014E

RPGOther*

Social Sim

*Other refers to genres with less than 5% market share, including Sports, Sci-Fi, Racing and Card games.

Brazil free-to-play MMO genre market share

Social games will grow in Brazil despite its decline in other major markets. Although more and more American social gamers are shifting their spending to mobile, the there is still massive potential for social in Brazil. Brazil boasts the third highest Facebook population worldwide and, despite the growing affordability and penetration of smartphones, mobile gaming is still a commodity for many social gamers in the country.

Free-to-play MMOs revenue is set to increase by 25% in 2015E. Free-to-play MMOs will be the fastest-growing segment in Brazil next year. MOBAs have doubled their market share in Brazil. With the growing global popularity of games like League of Legends and Dota 2, MOBAs have seen their market share increase to a quarter of worldwide MMO revenue. In Brazil, MOBA revenues have more than doubled year-over-year. Localized servers and monetization structures are key to bringing a successful MOBA to the Brazilian market.



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EVERYTHING ELSE



Senior Analyst, Consumer Insights Stephanie Llamas [email protected] !Director, Business Development Sam Barberie [email protected] !(646) 248 5241 www.superdataresearch.com Twitter @_SuperData

Contact How to reach us.

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Event Director, Game Monetization USA Summit Jamie Harding [email protected] !(800) 814 3459 ext. 4354 www.videogamesintelligence.com/monetization Twitter @VGIntel

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DIGITAL GAMES 2014 IN LATIN AMERICA...Latin America digital games market share by country and gaming segment, 2014E Brazil 35% Mexico 22% Argentina 15% Rest of Latin America* 9% Chile