U.S. GAMING, A 360 O VIEW HOW WE PLAY, BUY AND INTERACT WITH GAMES IN THE U.S.
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1 U.S. GAMING, A 360 O VIEW HOW WE PLAY, BUY AND INTERACT WITH GAMES IN THE U.S. Mike Flamberg, Nicole Pike, and Marissa Woodrick 14 April 2015
2 TODAY S PRESENTERS MIKE FLAMBERG VP/GM, NIELSEN GAMES NICOLE PIKE DIRECTOR, NIELSEN GAMES MARISSA WOODRICK ANALYST, NIELSEN GAMES 2
3 AGENDA 1 BACKGROUND & SCOPE 2 TODAY S GAMING LANDSCAPE 3 CONSOLE TRANSITION 4 SHARE OF CLOCK & WALLET 5 EMERGING GAMING TRENDS 3
4 BACKGROUND & SCOPE How much time and money is spent on gaming? How has cross-platform gaming changed the industry? What has been the impact of the transition to the next generation of consoles? What are trends in emerging and future tech? 4
5 BACKGROUND & SCOPE How much time and money is spent on gaming? How has cross-platform gaming changed the industry? What has been the impact of the transition to the next generation of consoles? What are trends in emerging and future tech? HOW GAMING FITS IN THE ENTERTAINMENT ECOSYSTEM 5
6 AGENDA 1 BACKGROUND & SCOPE 2 TODAY S GAMING LANDSCAPE 3 CONSOLE TRANSITION 4 SHARE OF CLOCK & WALLET 5 KEY TAKEAWAYS 6
7 OVER HALF OF GAMERS PLAY ON 2+ DEVICES Platform Playership by Type, Ages 13+ (%): Q4 2014, Q % Who are Gamers (among Gen Pop): 58% PLAYS ONLY ONE TYPE PLAYS TWO TYPES PLAYS ALL THREE TYPES TH & 8 TH GEN CONSOLES COMPUTER MOBILE / TABLET 7
8 OVER HALF OF GAMERS PLAY ON 2+ DEVICES Platform Playership by Type, Ages 13+ (%): Q4 2014, Q % Who are Gamers (among Gen Pop): 58% 63% PLAYS ONLY ONE TYPE PLAYS TWO TYPES PLAYS ALL THREE TYPES TH & 8 TH GEN CONSOLES COMPUTER MOBILE / TABLET 8
9 MOBILE/TABLET AND 8 TH GEN DRIVE GROWTH Claimed Household Penetration of Gaming Devices (%): Q1 2015, Q ANDROID PHONE NINTENDO WII U 5 4 TABLET COMPUTER OTHER THAN AN IPAD IPHONE IPAD SONY PLAYSTATION 4 MICROSOFT XBOX ONE th Generation Console Owning Households (Net) = 50% th Generation Console Owning Households (Net) = 17% Mobile/Tablet Owning Households (Net) = 92% 9
10 CONSOLE GAMERS EXPANDING PLAY OPPORTUNITIES Console Player Share Who Do vs. Do Not Also Play Mobile / Tablet, Ages 13+ (%): Q4 2014, Q4 2013, Q4 2012, Q4 2011, Q th & 8 th Gen Consoles And Not Mobile / Tablet And Mobile / Tablet 10
11 CONSOLE GAMERS EXPANDING PLAY OPPORTUNITIES Console Player Share Who Do vs. Do Not Also Play Mobile / Tablet, Ages 13+ (%): Q4 2014, Q4 2013, Q4 2012, Q4 2011, Q th & 8 th Gen Consoles And Not Mobile / Tablet And Mobile / Tablet 11
12 ~40% PARTICIPATE IN MULTI-PLATFORM GAMING Participation in Mobile & Console Gaming Activities (% of Gamers Aged 13+) Have Played Have Not Played 28% 10% 9% 8% 8% Mobile and Console Gaming (Playing a different version of the same game on different devices) Cross-Platform Gaming Companion App Cloud Streaming Remote Gaming (Playing the same game session across multiple devices) (Using an app through a mobile/handheld device, linked to your console gaming session) (Gaming through a cloud/streaming service [such as PlayStation Now, OnLive, etc.]) (Local streaming of a game session from one device to another) 12
13 MOBILE/TABLET ARE CHANGING HOW KIDS GAME Mobile/Tablet Device Playership (% of General Population) Teens 6-12 Kids 67% 70% % 31% 16% 18% 2% 5% MOBILE TABLET MOBILE TABLET 13
14 AGENDA 1 BACKGROUND & SCOPE 2 TODAY S GAMING LANDSCAPE 3 CONSOLE TRANSITION 4 SHARE OF CLOCK & WALLET 5 KEY TAKEAWAYS 14
15 3 IN 4 8 TH GEN HOMES STILL OWN A 7 TH GEN CONSOLE Lifetime 7 th Generation Console Ownership: January 2015 (% of 8 th Generation Console-Owning Households) SONY PLAYSTATION SONY PLAYSTATION SONY PLAYSTATION MICROSOFT XBOX MICROSOFT XBOX MICROSOFT XBOX NINTENDO WII NINTENDO WII NINTENDO WII Current Owners Have Ever Owned 15
16 DUAL-GEN OWNERS ARE SHIFTING MORE TIME AND MONEY TO 8 TH GEN Claimed 7 th + 8 th Generation Consoles Owners Share of Wallet and Clock: Q1 2015, Q SHARE OF WALLET 56% 44% 64% 36% SHARE OF CLOCK 52% 48% 59% 41% 7 th GENERATION 8 TH GENERATION 16
17 8 TH GEN PURCHASE DRIVERS VARY BY PLATFORM Top Factors Driving 8th Generation Console Purchase (Console Owners Aged 13+): Q
18 AGENDA 1 BACKGROUND & SCOPE 2 TODAY S GAMING LANDSCAPE 3 CONSOLE TRANSITION 4 SHARE OF CLOCK & WALLET 5 KEY TAKEAWAYS 18
19 GAMERS SPEND 12% OF WEEKLY LEISURE TIME PLAYING VIDEO GAMES Claimed Weekly Leisure Time (% of Leisure Hours: Gamers Aged 13+): Q % 6% 5% 4% 17% INTERNET 8% MUSIC SOCIAL ACTIVITIES* 17% 10% VIDEO GAMES 12% TV 14% 19
20 GAMERS SPEND 12% OF WEEKLY LEISURE TIME PLAYING VIDEO GAMES Claimed Weekly Leisure Time (% of Leisure Hours: Gamers Aged 13+): Q % 5% 4% 17% Overall Gaming Time Increase (versus previous year) 8% 7% MUSIC INTERNET SOCIAL ACTIVITIES* 17% % 10% VIDEO GAMES TV % 12% 14% % 20
21 TIME SPENT GAMING UP 13% IN THE PAST YEAR Share of Claimed Gaming Time by Platform (%), Gamers 13+: Q4 2014, Q4 2013, Q COMPUTER ANDROID PHONES ALL TABLETS (INCLUDES IPAD) IPHONE / IPOD TOUCH SONY PLAYSTATION 3 MICROSOFT XBOX 360 NINTENDO WII SONY PLAYSTATION MICROSOFT XBOX ONE 3 2 NINTENDO WII U
22 CONSOLES ARE USED FOR NON-GAMING ACTIVITIES AS MUCH AS GAMING Claimed Weekly Console Time by Activity (% of Console Hours: Users Aged 13+) GAMING (OFFLINE) GAMING (ONLINE) NON-GAMING % 38% 21% 7 th GENERATION 22
23 CONSOLES ARE USED FOR NON-GAMING ACTIVITIES AS MUCH AS GAMING Claimed Weekly Console Time by Activity (% of Console Hours: Users Aged 13+) GAMING (OFFLINE) GAMING (ONLINE) NON-GAMING % 38% 49% 29% 50% 21% 21% 22% 28% 7 th GENERATION 7 th GENERATION 8 th GENERATION 23
24 GAME-INVESTING HOMES SPEND NEARLY ONE-TENTH OF MONTHLY LEISURE BUDGET ON GAMING Claimed Monthly Leisure Spend (% of Leisure Dollars: Households Spending $1+ per Month on Gaming): Q
25 MONTHLY GAME CONTENT SPEND HAS INCREASED YOY Leisure Spend per Month, Gamers 13+: Q4 2014, Q4 2013, Q GAME CONTENT (NEW/USED GAMES, SUBSCRIPTIONS, RENTALS, DLC, CONTROLLERS) $29 $30 $32 $20 CELLULAR PHONE-RELATED ENTERTAINMENT $32 $ GAMERS OTHER TOP SPEND ACTIVITIES 2014 PARTICIPATING IN LEISURE ACTIVITIES SUCH AS DINING OUT, SHOPPING, GOING TO THE PARK, ETC. $93 REGULAR TV PACKAGES $48 PARTICIPATING IN NON-MEDIA RELATED ACTIVITIES AT HOME, SUCH AS HOBBIES $29 25
26 FREE IS KING IN THE MOBILE GAMING SPACE Types of Mobile Gaming Apps Played (% of Gamers Aged 13+ Who Access Mobile Gaming Apps) 36% 28% 95% Free Games / Gaming Apps Paid Games / Gaming Apps Pre-Installed Games / Gaming Apps 26
27 AGENDA 1 BACKGROUND & SCOPE 2 TODAY S GAMING LANDSCAPE 3 CONSOLE TRANSITION 4 SHARE OF CLOCK & WALLET 5 KEY TAKEAWAYS 27
28 KEY TAKEAWAYS Over half of gamers now play on two or more device types, driven by a continued rise in mobile & tablet play where free content dominates 28
29 KEY TAKEAWAYS Over half of gamers now play on two or more device types, driven by a continued rise in mobile & tablet play where free content dominates As 8th gen ownership grows, cross-generation gamers are shifting more time and money to their newer consoles 29
30 KEY TAKEAWAYS Over half of gamers now play on two or more device types, driven by a continued rise in mobile & tablet play where free content dominates As 8th gen ownership grows, cross-generation gamers are shifting more time and money to their newer consoles Both time and money spent by gamers in the category has risen YOY, with share of clock outpacing wallet growth 30
31 THANK YOU
32 Q & A If you have follow-up questions or want more information, please contact: Mike Flamberg VP/GM, Nielsen Games michael.flamberg@nielsen.com Nicole Pike Director, Nielsen Games nicole.pike@nielsen.com Marissa Woodrick Analyst, Nielsen Games marissa.woodrick@nielsen.com 32
33 Copyright 2015 Copyright The Nielsen 2013 The Company. Nielsen Company. Confidential Confidential and proprietary. and proprietary. METHODOLOGY DATA COLLECTION Annual data for the Nielsen 360 Gaming Report is collected via consumer online surveys in Q4 of each year using Nielsen's proprietary, high-quality epanel in the United States. An additional post-holiday wave of the survey is fielded in January of the following year to assess adoption of gaming devices during the crucial holiday period. REPRESENTIVITY SAMPLE Groups surveyed: Teens/Adults Aged 13+: interviews among 50% Male / 50% Female sample Kids Aged 6 12: 400 interviews (paired with parents, Q4 wave only) among 50% Male / 50% Female sample Post-survey, raw data is weighted to ensure representation of the US General Population based on US Census data. 33
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