U.S. GAMING, A 360 O VIEW HOW WE PLAY, BUY AND INTERACT WITH GAMES IN THE U.S.

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

TODAY S PRESENTERS MIKE FLAMBERG VP/GM, NIELSEN GAMES NICOLE PIKE DIRECTOR, NIELSEN GAMES MARISSA WOODRICK ANALYST, NIELSEN GAMES 2

AGENDA 1 BACKGROUND & SCOPE 2 TODAY S GAMING LANDSCAPE 3 CONSOLE TRANSITION 4 SHARE OF CLOCK & WALLET 5 EMERGING GAMING TRENDS 3

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

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

AGENDA 1 BACKGROUND & SCOPE 2 TODAY S GAMING LANDSCAPE 3 CONSOLE TRANSITION 4 SHARE OF CLOCK & WALLET 5 KEY TAKEAWAYS 6

OVER HALF OF GAMERS PLAY ON 2+ DEVICES Platform Playership by Type, Ages 13+ (%): Q4 2014, Q4 2011 % Who are Gamers (among Gen Pop): 58% 10 31 59 PLAYS ONLY ONE TYPE PLAYS TWO TYPES PLAYS ALL THREE TYPES 2011 7 TH & 8 TH GEN CONSOLES COMPUTER MOBILE / TABLET 7

OVER HALF OF GAMERS PLAY ON 2+ DEVICES Platform Playership by Type, Ages 13+ (%): Q4 2014, Q4 2011 % Who are Gamers (among Gen Pop): 58% 63% 31 10 59 40 15 45 PLAYS ONLY ONE TYPE PLAYS TWO TYPES PLAYS ALL THREE TYPES 2011 2014 7 TH & 8 TH GEN CONSOLES COMPUTER MOBILE / TABLET 8

MOBILE/TABLET AND 8 TH GEN DRIVE GROWTH Claimed Household Penetration of Gaming Devices (%): Q1 2015, Q1 2014 ANDROID PHONE 40 52 NINTENDO WII U 5 4 TABLET COMPUTER OTHER THAN AN IPAD IPHONE IPAD 40 38 36 36 30 29 SONY PLAYSTATION 4 MICROSOFT XBOX ONE 8 4 8 5 7th Generation Console Owning Households (Net) = 50% 2015 2014 8th Generation Console Owning Households (Net) = 17% Mobile/Tablet Owning Households (Net) = 92% 9

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, Q4 2010 7 th & 8 th Gen Consoles 74 65 54 50 43 And Not Mobile / Tablet 46 50 57 26 35 2010 2011 2012 2013 2014 And Mobile / Tablet 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, Q4 2010 7 th & 8 th Gen Consoles 74 65 54 50 43 And Not Mobile / Tablet 46 50 57 26 35 2010 2011 2012 2013 2014 And Mobile / Tablet 11

~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

MOBILE/TABLET ARE CHANGING HOW KIDS GAME Mobile/Tablet Device Playership (% of General Population) 13-17 Teens 6-12 Kids 67% 70% 2010 2014 48% 31% 16% 18% 2% 5% MOBILE TABLET MOBILE TABLET 13

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 3 54 66 SONY PLAYSTATION 3 32 43 SONY PLAYSTATION 3 54 64 MICROSOFT XBOX 360 44 59 MICROSOFT XBOX 360 58 76 MICROSOFT XBOX 360 59 65 NINTENDO WII 58 72 NINTENDO WII 54 72 NINTENDO WII 68 86 Current Owners Have Ever Owned 15

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, Q1 2014 2013 2014 SHARE OF WALLET 56% 44% 64% 36% SHARE OF CLOCK 52% 48% 59% 41% 7 th GENERATION 8 TH GENERATION 16

8 TH GEN PURCHASE DRIVERS VARY BY PLATFORM Top Factors Driving 8th Generation Console Purchase (Console Owners Aged 13+): Q1 2015 17

GAMERS SPEND 12% OF WEEKLY LEISURE TIME PLAYING VIDEO GAMES Claimed Weekly Leisure Time (% of Leisure Hours: Gamers Aged 13+): Q1 2015 7% 6% 5% 4% 17% INTERNET 8% MUSIC SOCIAL ACTIVITIES* 17% 10% VIDEO GAMES 12% TV 14% 19

GAMERS SPEND 12% OF WEEKLY LEISURE TIME PLAYING VIDEO GAMES Claimed Weekly Leisure Time (% of Leisure Hours: Gamers Aged 13+): Q1 2015 6% 5% 4% 17% Overall Gaming Time Increase (versus previous year) 8% 7% MUSIC INTERNET SOCIAL ACTIVITIES* 17% 2014 +13% 10% VIDEO GAMES TV 2013 +12% 12% 14% 2012 +12% 20

TIME SPENT GAMING UP 13% IN THE PAST YEAR Share of Claimed Gaming Time by Platform (%), Gamers 13+: Q4 2014, Q4 2013, Q4 2012 COMPUTER ANDROID PHONES ALL TABLETS (INCLUDES IPAD) IPHONE / IPOD TOUCH SONY PLAYSTATION 3 MICROSOFT XBOX 360 NINTENDO WII SONY PLAYSTATION 4 1 10 4 5 9 8 4 6 5 13 12 8 14 16 19 6 10 7 25 33 38 2014 2013 2012 MICROSOFT XBOX ONE 3 2 NINTENDO WII U 3 1 21

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 2010 41% 38% 21% 7 th GENERATION 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 2010 2014 41% 38% 49% 29% 50% 21% 21% 22% 28% 7 th GENERATION 7 th GENERATION 8 th GENERATION 23

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): Q1 2015 24

MONTHLY GAME CONTENT SPEND HAS INCREASED YOY Leisure Spend per Month, Gamers 13+: Q4 2014, Q4 2013, Q4 2012 GAME CONTENT (NEW/USED GAMES, SUBSCRIPTIONS, RENTALS, DLC, CONTROLLERS) $29 $30 $32 $20 CELLULAR PHONE-RELATED ENTERTAINMENT $32 $26 2014 2013 2012 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

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

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

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

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

THANK YOU

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

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+: 2000+ 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