Mobile Games in the App World. Mobile Apps in the Game World

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1 Mobile Games in the App World 1

2 What is an App: The term "app" has become popular over the years and in 2010 and was listed as "Word of the Year" by the American Dialect Society. App, in the sense that we mean it today, did not exist before the iphone was introduced in Apps are relatively lightweight programs, specifically designed to run on mobile platforms such as the iphone and Android phones. History of Mobile Games: The mobile game genre essentially began in the early 90s when design and technology companies, such as Texas instruments, began to embed the snake game in their devices. The pixilated reptile that grew in size while gliding through a tiny maze captivated users so much that Nokia decided in 1997 to become the first mobile phone provider to include a game in one of its models. 350 million mobile phones have offered snake as a standard feature. Snakes popularity inspired so many companies that they began to work on technology, informally knows as WAP (Wireless application protocol), which would enable mobile phones to transfer game- related data via a remote server. The game developers began to explore and understand the possibilities for fast action and multiplayer mobile- based games. The mobile games turned corners when iphone was launched in 2007 and in 2008 iphone created a wide open market for third- party titles, where the barrier to entry for developers was low and games costed relatively little money for consumers. The app store revolutionized the sector by establishing an easily accessed direct connection between developers and consumers. Similarly, thousands of developers started creating a variety of apps for Android, a mobile operating system launched by the Open Handset Alliance. Google s Android Market enables users to access the more than 700,000 apps available for the system. Overview of Mobile Games: As smartphone and tablet penetration have significantly grown over the last few years, the performace metric for playing games has changed from quality of graphics to convenience and ease of play. People want to be able to play games on- the- go like when they are waiting at the doctors clinic, commuting or a break during class etc. Such a desire for portability and convenience has created a genre of mobile games that attracting new casual gamers ones that never played hard core games on PC or consoles but now find themselves addicted to simple, cheap, quick pick and play mobile games they can play whenever they want from wherever they want 2

3 What s most remarkable about this growth is that 80% of total app revenues now originate from freemium products from the mobile games. Games count for the vast majority of revenue for Google and Apples stores, Maybe two or three years ago, you would pay $1 or $2 for a game, but there was no opportunity for them to charge you more. Now they give it to you for free, then keep charging you for additional features. IMPACT ON THE ECONOMY: Mobile App Stats It is expected that the worldwide mobile app store revenue is targeted to hit $US26 billion in 2013, up from $US18 billion last year, according to new market research figures from Gartner. In total, the number of apps set to be downloaded in 2013 are expected to exceed 100 billion, up from 63 billion last year, with Apple s itunes app store and the Google Play app store for Android dominating the market. The report also predicts strong growth for the sector going forward, with total downloads predicted to 268 billion by 2017, including 253 billion free apps and 14 billion paid apps. The figures also predict the percentage of app store revenue generated by in- app purchases will increase 48% in Monetizing Mobile Games 1- Advertising Mobile advertising only really works for large- brand publishers and games that go viral, such as Angry Birds, Candy Crush etc because you need a lot of users in order to make money. A company called Jampp is trying to innovate in this space and get more people to view ads by allowing users to voluntarily view advertisements in return for in- game currency. Users choose to watch ads and then get something in return. 2- Virtual Good Purchases Candy Crush, with their freemium model does not charge users to download or play the game but instead encourages players to purchase virtual goods, such as tickets for next levels, power up tools etc. A Chicago- based company Tap. Me (now acquired by MediaMath) brings the two monetization strategies together. It has developed a platform that transforms the freemium games into branding opportunities for advertisers. By using Tap.Me s solution, a brand can sponsor or augment an enhanced experience. For example, a player who wants to improve his endurance in games might choose a branded virtual good. 3

4 3- Paid Downloads Paid download are only a one time occurrence and you cant rely on this strategy Mobile Games - Stats Research and analytical company Juniper Research has revealed that by 2017, there will be 64.1 billion games downloaded onto smartphones and tablet devices. This figure is over three times that from 2012, which was 21 billion. This high growth rate is mainly driven by the increasing number of free- to- play apps and more sophisticated devices. One of the reasons for this is the increase in the number of sophisticated games that allow for multi- platform gameplay using cloud technology. Still, smartphones continue to outpace tablets, with more than $6 billion projected to be spent on them in The research include the likelihood of social and casual games remaining the most popular genre, and that in 2017, a majority of mobile games will be free- to- play, with only 7% requiring a purchase. Mobile Games - Global Games Market

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6 Top 10 Highest Grossing ios Games!"#$%&!'()*&+"," Note: Please note daily revenues and active users are subject to change on daily basis Top 10 Highest Grossing Android Games Note: Please note daily revenues and active users are subject to change on daily basis 6

7 Cross Platform Games: Introduction Cross platform convergence is an emerging trend in the games industry that complicates the classification of games by platform. Developers are now creating multiple versions of a game that interact with one another across platforms. Cross platform games runs on cross platforms such as, web, ios and Android, consoles and many more devices. A cross- platform game provides the player with the same or a different experience on different platforms. The game does not have to provide identical experiences on mobile and desktop devices. It may not be feasible to have the same game experience across mobile and desktop because of the differences in screen size and input types. The games do not have to be identical but they do need to be connected. Cross platform convergence creates new challenges in user centered game design. The act of switching between different platforms means the game must be adapted to multiple interfaces. Users must be informed how and why they should take advantage of the alternate platform. Users must also be made aware of the alternate platform version s existence so they can choose to take advantage of it. Benefits Building a cross- platform game has a number of advantages. More engaged players and higher retention 7

8 Mobile Apps in the Game World Research Presentation Date: October 31, 2013 Prepared by: Areen Salam Players can use a cross- platform game on any device, mobile or desktop. Users receive notifications and see requests and feed stories from their friends no matter which device they use. This results in people who play your game more and are more engaged. This also has the benefit of increasing the size of each player's reachable network within the game as more of their friends who play on different platforms can be reached. This enables people to play the game with more friends, which in turn makes them more engaged. Growth for your game As the size of each player's reachable network increases across different platforms, they can invite more friends into the game. More people will see stories from your game in news feed and on the timeline, bringing in new referrals to your game and helping growing the number of people playing it. Bootstrapping on a new platform If you are launching your game to a new platform and have a pre- existing player base, by using the same Facebook App ID, maximize your discovery potential by bootstrapping your existing audience. Angry Birds is a very popular game that can be played across multiple platforms. It was created by Rovio Entertainment in Facts: More than 2 billion download across all platforms More than 263 Million active users Played on Multi- platforms devices 8

9 Future of Mobile Gaming: Mobile wins on portability and convenience, consoles on sheer power and precision. However, while consoles haven t gotten either more portable or more convenient over the last few years but mobile has gotten more powerful. Add in accessories, sensors, and who knows what the next few years will bring. When you look at the statistics, mobile gaming is not something that should be ignored. In 2010, the industry raked in over $8 billion dollars, and that number is expected to increase to $11.4 billion by By contrast, sales of Nintendo's 3DS console have been so lackluster that the developer had to drastically slash its price over the summer; and sales of Sony's PlayStation Portable dropped by nearly 50% in All the while, the mobile gaming market is expanding. For instance, women make up only 1/3rd of the console and PC gaming market, but they make up 47% of the mobile gaming market. For developers, this means that the overall customer base is distinctly larger and continuing to grow. Today mobile can t kill the consoles, but mobile has always been about the future. Mobile gaming is on the rise and in just five years, smart phones and tablet gaming has turned the mobile game industry to heights. The next step could emerge to be mobile augmented reality games in the future or simply your mobile could turn into a one- platform device that could hook up with your TV. Who knows what the future holds.s 9

10 Analytical Research Companies IHS is a global information company with world- class experts in the pivotal areas shaping today s business landscape: energy, economics, geopolitical risk, sustainability and supply chain management. We employ more than 8,000 people in more than 31 countries around the world. Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. We deliver the technology- related insight necessary for our clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high- tech and telecom enterprises and professional services firms, to technology investors, we are the valuable partner to clients in over 13,000 distinct organizations. Through the resources of Gartner Research, Gartner Executive Programs. Experian Marketing Services is a global provider of integrated consumer insights, targeting, data quality and cross- channel marketing programs. We help organizations intelligently interact with today s dynamic, empowered and hyper- connected consumers. By coordinating seamless and intelligent interactions across all channels, marketers are able to precisely plan and execute superior brand experiences that deepen customer loyalty, strengthen brand advocacy and maximize profits. Juniper Research was founded in 2001 by the Wireless Industry Consultant Tony Crabtree, in the midst of the telecoms and dot- com crash. Juniper specializes in identifying and appraising new high growth market sectors within the mobile ecosystem. Market sizing and forecasting are the cornerstones of our offering, together with competitive analysis, strategic assessment and business modelling. Newzoo is an international full service market research and consulting firm, 100% focused on the games industry. We aim to provide the best independent market data across all game segments and business models based on our proprietary market research projects in a broad range of countries. Using our extensive network and deep involvement in the industry, we aim to stay ahead of the curve and at least two steps ahead of our competitors. Before Think Gaming, the team played games all the time - on boards, consoles, computers, and phones. At work, we built decisioning tools for real- time media buying. The mobile gaming revolution is bringing those worlds together. We took proven algorithms from ad tech and adopted them to mobile gaming. Our platform makes freemium games dramatically more profitable. 10

11 References & Links: library.ocad.ca/csdl/trans/tm/2013/08/ttm pdf content/uploads/2012/02/technet- App- Economy- Jobs- Study.pdf content/uploads/2012/02/technet- App- Economy- Jobs- Study.pdf mobile/whats- future- mobile- gaming- talk- mobile 0 wanted- mobile- game- stats/ sales- data/ https://play.google.com/store/apps/category/game/collection/topgrossing 11

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