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2014 Newzoo
Of Them
1.5bn 32%
2014 Newzoo
Totaling
$4.30 $25bn
2014 Newzoo
In Revenue Generated by
Tablets and (Smart)Phone
Games WorldWide
KEY TAKE-AWAYS
Share Mobile Spenders
Close To That Of Console/PC
Mobile games, dominated by the free-to-play business
model, are not as different from console or PC gaming as
one might think in terms of paying players. In two years
time, the share of spenders on a global scale has risen from
36% to 46% in Western Europe and the US combined. This
share is 67% for console gaming and 59% for gamers that
play MMO type games. This increase in paying mobile
gamers is one of the main drivers of revenue growth in
mature markets. Monthly single digit conversion rates of
individual games are often misinterpreted as share of
mobile gamers that spends money.
2014 Newzoo
46%
KEY TAKE-AWAYS
Amazon Best in
Reaching (Big) Spenders
Analysts and press focus predominantly on the iPhone,
iPad and Google Play app stores. The Amazon Appstore
on Fire devices, Android, and preloaded on BlackBerry is
often overlooked. A closer look not only reveals large
absolute gamer numbers in the US and Western Europe
but, more importantly, shows that gamers using the
Amazon Appstore are the most likely to spend money. In
addition, it boasts a relative high reach amongst the
valuable family-oriented demographic. Developing and
marketing games for the Amazon Appstore could prove
most effective compared to other app stores and is
certainly undervalued at the moment.
2014 Newzoo
64%
KEY TAKE-AWAYS
Screen Segmentation:
Mobile Can Take 50%
When slicing gamer revenue data across the four typical
screens used by a consumer, it comes as less of a surprise
that the share of mobile games has grown so explosively
towards the 29% it will take this year. According to our
Screen Segmentation ModelTM, it could grow to 50%.
COMPUTER
2014 Newzoo
ENTERTAINMENT
FLOATING
PERSONAL
37%
KEY TAKE-AWAYS
Growth Will Continue,
Driven by Multiple KPIs
The mobile games market in mature markets is not saturated
as some analysts claim. Investigating app store revenues and
single-game metrics does not reveal the dynamics behind
growth. Understanding growth potential requires looking at
KPIs in a broader manner, revealing key local differences.
POPULATION
2014 Newzoo
CONNECTIVITY
GAMERS
SPENDERS
AVG. SPEND/MONTH
REVENUES
58%
KEY TAKE-AWAYS
The Big Spender Is a Family
Man With A Full-Time Job
The majority of (big) spenders on mobile are male and have
kids. For men the share of spenders rises with age, for women
it drops. On average one in five mobile spenders is a man older
than 35. Spenders are also most likely to have a full-time job
and a large income. More than a third of mobile spenders play
together with their children regularly and spend a large share
of their game budget on their kids. Mobile spenders do a lot
more shopping, are more active on Twitter and Google+ and
have a distinct preference for certain mobile service providers.
In-depth profiling of spenders illustrates that this is a valuable
target audience also outside of their game spending behaviour.
2014 Newzoo
51%
INTRODUCTION
This year, games played on phones and tablets will gross $25Bn in revenues worldwide. With
1.5 billion mobile gamers, it is easily the most popular games market segment on the planet.
This immense audience will ensure the market share of mobile will continue to rise.
Depending on region, a specific stack of growth KPIs is at work, including rising connected
population, share of paying gamers and average spend. Analysis of data on these KPIs,
confirms that there still is enough room for growth, also in mature markets such as the US
and Japan. Mobile gaming has tapped into new game time and wallets but cannibalization of
other market segments is increasing. This does not imply that console and PC gaming are
going to disappear or be decimated by these portable screens. After all, from a consumer
perspective, these are different screens with their own characteristics and role in a persons
life.
We aim to provide our clients insights that go further than app store data and in-game
metrics, ultimately to outsmart competition. To do this, we combine financial market analysis,
primary consumer research in 25 countries, app store / transactional data and census KPIs for
the top 120 countries by game revenues. This report provides a glimpse of what we do. It also
aims to take away a number of common misperceptions, including:
The US mobile games market is saturated
The share of spenders for mobile is significantly lower than for PC and console
Overestimation of mobile games revenues in Latin America
Underestimation of the Asian market in general and Japan specifically
Undervaluation of revenues generated outside of iOS and Google Play
150M
MOBILE GAMERS
NAM
MOBILE REVENUES
2014 Newzoo
Peter Warman
CEO Newzoo
MOBILE GAMERS
EMEA
MOBILE REVENUES
$5.9Bn
$5.0Bn
$0.5Bn
$13.5Bn
MOBILE REVENUES
LATAM
MOBILE GAMERS
450M
160M
MOBILE REVENUES
APAC
MOBILE GAMERS
740M
Mobile
Console
MMO
2014 Newzoo
AVG
BIG SPENDERS
260M 6.8M
IN THESE 10 COUNTRIES COMBINED
2014 Newzoo
2014 Newzoo
iPhone
47.7%
iPad
57.1%
Google Play
36.5%
Amazon
64.2%
LEVEL OF SPENDING AMONGST ALL MOBILE GAME SPENDERS PER APPSTORE | US, UK, GER, FR | 2014
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39%
61%
39%
61%
35%
65%
36%
64%
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Note: As part of the premium subscription to its Global Games Market Report, Newzoo updates clients on segments and
regions every quarter based on continuous industry and market analysis. Results for the first nine months of 2014 have led
Newzoo to adjust its 2014 full year forecasts, as well as the projections towards 2017. The figures below provide a summary
of the revisions relating to mobile games.
POPULATION
358M
CONNECTIVITY
86%
MOBILE
GAMERS
151M
MOBILE
SPENDERS
43%
MOBILE
AVG. SPEND/MONTH
$7.68
MOBILE
REVENUES
$5.9Bn
As growth occurs on
multiple levels, the ultimate
end result is that market
revenues soar. For each
country in the world, the
dynamics are different.
For mature markets such as
North America, growth will be
primarily driven by an
increase in paying gamers &
average monthly spend.
Developing markets will
flourish as online connectivity
and the number of mobile
gamers continues to rise.
GLOBAL AND NAM DATA
7.2Bn
2014 Newzoo
41%
1.5Bn
32%
$4.30
$25.0Bn
GLOBAL
27.7%
NAM
44.0%
GLOBAL
13.1%
NAM
15.2%
2014 Newzoo
GLOBAL
38.7%
NAM
25.6%
GLOBAL
20.4%
NAM
15.1%
ABOUT NEWZOO
Company
Newzoo is an innovative global market research firm with a
primary focus on games. We provide our clients with a mix of
consumer research, transactional data and financial analysis
across all continents, screens and business models. We aim to be
ahead the curve when it comes to global and local trends and
always put hard data into a broader perspective.
We work for the majority of top 25 public companies by game
revenue, many independent game developers as well as a variety
of global hardware and media companies. The majority of our
clients are based in the US, Japan and China. Our company has its
headquarters in the center of Amsterdam. We recently kicked-off
our international expansion with an office in Shanghai, China.
WWW.NEWZOO.COM
2014 Newzoo
Services
The data in this report is derived mainly from two of our products:
Global Games Market Report Premium (12 months subscription)
Global, Regional, Top 100 Countries
Annual PDF Report on Trends, Revenue/Gamer Data, Future Projections
Granular Datasets (Updated Quarterly): 2013-2017 Gamer/Revenue Data
Quarterly Updates with Trends, Mobile, Company Performance, M&A
www.newzoo.com/globalreportpremium
In-Depth Consumer Insights (12 months subscription)
Available for 25 countries
Cross-Analyze over 200 variables in the Newzoo Data Explorer
Continuous custom analysis support by our analysts
www.newzoo.com/newzoo-data-explorer
WYBE@NEWZOO.COM
2014 Newzoo