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September 2013
Sponsored by
Newzoo Authors Bente de Heij, Data Analyst Sander Bosman, Manager Research Thijs Hagoort, CFO Peter Warman, CEO
2013 Newzoo
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Introduction
Newzoo recently released the first edition of its annual Global Games Market Report, including the latest global figures for 2013 and its view on global growth towards 2016 sliced in multiple ways to ensure the data is actionable. This report contains high-level data and insights from this 48-page report that ultimately is a result of 12 months of modeling using all data and research results available to Newzoo.
Highlights include: Game revenues will grow at a compound annual growth rate (CAGR) of 6.7% to $86.1 billion by 2016; The number of gamers worldwide will rise from 1.21 billion this year to 1.55 billion; Mobile gaming will grow at an average annual rate of 19% for smartphones and 48% for tablets, grossing $13.9bn and $10.0bn in 2016 respectively; Combined, they will take a 27.8% share of the global market, up almost ten percent points compared to this year; Primarily fuelled by a global CAGR of 10.4% for MMO games on PC, Thijs Hagoort the computer screen will continue to lead other screens with a CFO Newzoo, market share of 35.8% totalling $30.9bn in 2016; thijs@newzoo.com Nextgen consoles, free-to-play triple A titles and alternative +31 (0)20 6635816 linkedin.com/in/thagoort distribution of games to TV will help to consolidate revenues through the TV screen at a global growth rate of 3.5%; The Asia-Pacific region will strengthen its leading position with a 37.9% market share by 2016 as emerging markets drive global growth
Peter Warman, CEO at Newzoo: In principle it is not hard to make high-level projections for the global market in 2016, nor for a single region or segment a couple of years out. The devil is in the detail. Breaking down the global games market in a granular way allowing our clients to slice and dice the data in ways that make the data actionable is very complicated. Our approach, involving key growth KPIs, helps in understanding what drives growth per segment or region, ultimately reflected in dollar figures. This requires deep knowledge of the industry on a global as well as local level. Also, our hands-on experience working with global game companies on a daily basis is of tremendous value in this regard. Thijs Hagoort , CFO at Newzoo adds: We believe we should be as clear as possible about the underlying assumptions and I believe the Global Market Data Model we developed in 2012/13 is unique in using Key Market Indicators per segment and region (i.e. the number of players, the percentage of payers and the average spend per payer) to make bottom-up forecasts. In terms of data sources, the Newzoo model combines: Proprietary primary consumer research in 18 countries involving over 50.000 consumers; Extensive analysis of financial reporting by public companies that generated over $50 bn in revenues in 2012; Analysis of third party research; Transactional data.
Note: Compound annual growth rates cover different periods: PwC (2012-16), IDC (2011-16), Gartner (2011-15), DFC (2012-17), Newzoo (2012-2016).
Only 15% of the global population generates 74% of global game revenues
Key data points per region for the top 100 countries: Population, Online population, Gamers, Money (2013E)
2013 Newzoo
Welcome to Holland
Why choose Holland as a gateway to Europe?
Holland has a strong and organized gaming sector, supported by an active government policy. The world-class Dutch education and research institutes deliver a workforce that is innovative, creative, and highly multilingual. Also, Holland hosts one of the best communication infrastructures in the world (both wired and wireless). On top of that, Holland has a strategic location in the internet exchange network for reaching both the European and North-American markets. Holland is an attractive destination for foreign investors for a variety of reasons: Attractive tax climate Presence of major international gaming companies Some of the worlds best known studios are Dutch Advanced gaming education, research institutes and a strong creative industry Excellent ICT infrastructure: the most wired country in the world Skilled talent pool and a very attractive location for employees Strategic and central location in Europe Innovative software environment
Come & find out why companies like Electronic Arts, Nintendo, DeNA, Perfect World, Kixeye, Ubisoft, Microsoft and many others have already invested in Holland.
Underneath a healthy growth rate of 6.7%, major differences in growth potential are found
Traditional segmentation does not suffice to understand market change and growth
All types of games are moving towards the cloud, relying on ingame sales for revenues and becoming increasingly accessible via multiple screens. Traditional market segmentation is based on definitions and terms that are increasingly difficult to maintain. In addition, the overlap between the traditional segments is constantly growing and becoming increasingly difficult to distinguish. In 2012, Newzoo launched an alternative way of segmenting the games market The Screen Segmentation Model. The starting point for the model is the consumer and the four typical screens that they can use, with each its own characteristics and appeal, depending on various factors such as time, place and budget. The full report also plots data for twelve key countries on this model.
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The PC continues to gross most money on a global scale, specifically fueled by MMO games growth
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The essential 48-page reference report for anyone with an interest in the global games market Includes projections 2012-2016
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