Understanding Tomorrow’s

Gamers, Today!

Michael CaiSVP of Research

Interpret LLC

3

Consumer Tracker Sampling Methodology

Respondent Requirements

Survey Modules

Survey Conducted February to March 2015

Respondents

4

Research Coverage

Download Portable Games

Connected Consoles

Online Casual Gaming

Download PC Games

(Steam, etc.)Social

Network Gaming

Sub-based MMO

F2P MMO

Virtual Worlds

Smart Phone Apps

iPad and Tablet

Gamer

Physical Media

5

Agenda

• Entertainment Wallet Share

• Device Timeshare

• Brand Mindshare

• Gaming Motivations

• Top Mobile Genres/Titles

• Mobile Gaming/Spending Behavior/Attitudes

S18a Please indicate how much money you spent for your children 6-12 on each of the following in the past 6 months.

$143

$98

$60

$44

$36

$34

$33

$13

$67

$44

$47

$25

$31

$23

$15

$11

Entertainment Walletshare

6

Six Month Kids Walletshare N=400 Parents of Kid Gamers 6-12

Video games

Toys

Electronic entertainment devices

Movies in theaters

Books

Ent. branded merch (not toys or books)

Movies/TV shows at home

Music

Total Average Spend On Entertainment

Past Six Months

US CN JP KR

US CN JP KR

$460

$264 $172

$244

• KR is more prone to spending on toys and books than other Asian countries.

• JP is more frugal overall but KR is most frugal about gaming.

$74

$24

$13

$18

$19

$11

$7

$7

$55

$59

$15

$25

$56

$21

$8

$5

7

0.343

0.3495

0.2701

0.2513

0.3079

0.2889

22%

10%

10%

47%

10%

14%

9%

5%

7%

6%

6%

18%

11%

12%

14%

6%

25%

24%

14%

20%

17%

14%

US CN JP KR

Population Spending per Business Model

S7 Now, please indicate whether or not you spent money on your children 6-12 on the following gaming activities in the past 6 months.

Bought a full physical home console game

Bought a full digital home console game

Bought DLC on a home console

Bought a physical handheld game

Bought a full digital handheld game

Bought a full mobile game

Bought in-game items for a mobile game

Bought a full digital PC game

Bought a full physical PC game

Bought in-game items for a F2P/ subMMO game on PC

Paid subscription or premium membership for a F2P or subMMO game on PC

-2%

+5%

+8%

+2%

+3%

+11%

-7%

+4%

+3%

-4%

+4%

+5%

+3%

+1%

+4%

+1%

+4%

+4%

0%

+2%

-2%

+1%

-3%

+3%

-1%

+5%

-2%

+4%

% Engaging in Past 6 MonthsN=400 Total Gamers 6-12

50%

28%

22%

24%

8%

32%

23%

18%

22%

19%

15%

-10%

-4%

-1%

-7%

-1%

-5%

+2%

-2%

-2%

+2%

-4%

• Handheld games still popular among Japanese kids. • Purchasing in-game items for mobile games is the only

business model that has grown in all four countries since the last wave.

8

Device Timeshare

S5b And of the hours your children 6-12 spend playing videogames during a typical week on devices you own, how many hours are spent playing videogames on each of the game systems you own?

11.0

Timeshare Across DevicesN=400 Total Gamers 6-12

Average Weekly Gaming Hours

Home Consoles Handhelds Computer Mobile Devices

Handheld consoles are still a substantial part of many JP kids’ gaming diets, and are becoming more niche in the US and KR. CN gamers are mostly attracted to mobile devices.

5.6

7.8

6.3

US

CN

JP

KR

5%

4%

4%

6%

1%

1%

2%

6%

1%

8%

5%

5%

14%

1%

3%

6%

8%

10%

1%

3%

1%

4%

7%

7%

5%

0%

42%

3%

12%

32%

4%

22%

6%

30%

4%

30%

11%

13%

3%

5%

5%

10%

6%

3%

5%

10%

1%

1%

8%

2%

4%

5%

PS4 Xbox One Wii U PS3 Xbox 360 Wii PS Vita/PSP Go/PSP DS/DSi 3DS/3DS XL Computer Android smartphone Android tablet iPhoneiPod Touch iPad

Most-Named Play Brands (Unaided)N=400 Total Gamers 6-12(New question in Wave 4)

Top-of-Mind Play Brands

G0 When you think about playing in general, what three brands come to mind right away?

Console makers generally were the top-of-mind

gaming brands, but LEGO and Disney, as well as local brands often come closely

behind. NintendoBandai

Yo-Kai WatchLEGO

Sony/PSTomica

PokemonMario

LEGONintendo

DisneyEverland

Lotte WorldTobot

MarvelMimi

Sony/PSPlants v Zombies

WoW/BlizzardTencentDisneyUbisoft

LoLApple/iOS

NintendoMS/XboxSony/PS

LEGOMinecraftApple/iOS

DisneyBarbie

10

Fun Creating things

Explore Improve Play with

friends

19%30% 31% 35% 27%

70% 47% 44% 39%45%

Definitely Important Somewhat Important

US CN JP KR

Fun Story Play with

friends

Explore Create Things

34%45% 41% 44% 44%

48% 31% 36% 32% 30%

Reasons to Play

G13 Kids like video games for different reasons. Now please think about why you like video games and rate the importance of each of the following reasons to you.

Reasons for Playing Video GamesN=400 Total Gamers 6-12

• Fun factor is key in all countries. • CN, JP and KR players are very interested in playing with friends. • Creativity less important in CN and JP.

Fun Play with

friends

Explore Share things

Story

36% 36% 35% 31% 32%

36%21%

10% 11% 10%

Fun Play with

Friends

Explore Create Things

Story

44% 43% 41% 42% 41%

23% 17% 14% 11% 12%

11

Empire And Tower games

Physics puzzle games

Racing games

Runner games

Fishing/hunting games

44%

37%

34%

28%

26%

Top 5 Mobile Genres

ST3 What types of games do you play on a smartphone, iPod Touch or tablet? Pick all the ones you play on smartphone, iPod Touch or tablet.

Matching puzzle games

Physics puzzle games

Runner games

World-building games

Farm/city management games

42%

40%

29%

22%

19%

All Western markets rank Matching and Physics in the top two; Asian countries are different – for CN Empire and Tower games are most popular, JP is dominated by Puzzle RPG games.

US CN

JP KR

N=338 Mobile Gamers 6-12 N=312 Mobile Gamers 6-12

N=211 Mobile Gamers 6-12 N=354 Mobile Gamers 6-12

% Playing Each Genre on Smartphone or Tablet

RPG-with-puzzle games

Music/rhythm/singing games

Farm/city management games

Matching puzzle games

Room escape games

31%

13%

10%

10%

9%

Matching puzzle games

Racing games

Hidden object/mystery games

Life/pet simulation games

Music/rhythm/singing games

35%

23%

16%

16%

15%

12

Ani Pang

Cookie Run

Candy Crush Saga

Angry Birds

Minecraft Pocket

39%

31%

20%

38%

12%

19%

18%

13%

11%

10%

LINE Tsum Tsum

Puzzle & Dragons

Taiko Drum Master

Frozen Free Fall

Monster Strike

23%

26%

13%

9%

10%

18%

16%

6%

6%

6%

Plants vs Zombies 2

Fishing Joy

Cool Running Everyday

Plants vs Zombies

Angry Birds

28%

27%

21%

32%

34%

18%

13%

12%

11%

10%

Angry Birds

Candy Crush Saga

Minecraft Pocket

Fruit Ninja

Candy Crush Soda Saga

66%

52%

25%

30%

21%

22%

17%

17%

12%

12%

Currently PlayingEver Played

Top 5 Mobile Titles

St9a Which of the following mobile games have you ever played? ST9b Which of the following smartphone , iPod Touch, or tablet games are you currently playing? ST9b Which of the following mobile games are you currently playing?

Since last wave, fewer gamers indicate that they are currently playing games from previously dominant franchises.

%/% = Change in current play % from Wave 3 to Wave 4 Data

USN=338 Mobile Gamers 6-12

CNN=312 Mobile Gamers 6-12

JPN=211 Mobile Gamers 6-12 N=354 Mobile Gamers 6-12

Top 5 Mobile Titles Ever and Currently Played

KR

+1%

-11%

-5%

0%

-18%

+13%

-5%

N/A

-19%

-20%

-4%

N/A

-9%

N/A

N/A

+6%

-5%

-12%

-6%

+4%

13

Minecraft Experience

G9m1 You mentioned being aware of the game Minecraft. Have you ever played Minecraft? G9m1a How many hours a week do you play Minecraft

34%

9%8%

49%

I play it nowI used to play itNever played, but heard ofNot aware of it

Minecraft ExperienceN=400 Total Gamers

9%5%

2%

84%

US CN

7%2%4%

87%

3%4%5%

88%

JP KR

Minecraft is a gaming phenomenon in the Western countries, but it hasn’t had much influence in Asia just yet. Only a bit more than one tenth of gamer kids have heard of it, even less have ever played it.

14

US CN1.7 0.3

11.09.3

Minecraft Gaming Hours

G9m1 You mentioned being aware of the game Minecraft. Have you ever played Minecraft? G9m1a How many hours a week do you play Minecraft

US CN

4.9 4.9

N= 136 N=43

N= 400 N= 400

Total Gaming Hours

Minecraft Hours

Minecraft Hours per WeekAmong Current Minecraft Gamers

Among Total Gamers

US gamers who already play Minecraft show a very high engagement in it.

US CN JP KRN=172 N=63 N=34 N=32

On Which Device(s) Do You Play Minecraft?Among Current or Recent Minecraft Gamers 6-12

G9m2 On which device(s) do you play Minecraft?

Minecraft Engagement

• Xbox 360 is the preferred Minecrafting device in US. This is likely due more to market inertia.

• KR and CN mostly play Minecraft on PC and Android phone, while JP prefers PlayStation Vita.

38%

6%

17%

10%

22%

27%

Xbox 360

Desktop or Laptop PC

Android tablet

iPad

iPhone

PlayStation 3

Xbox One

Desktop or Laptop Mac

Android phone

PlayStation 4

PlayStation Vita

35%

30%

20%

19%

19%

13%

10%

10%

10%

6%

5%

6%

12%

0%

21%

18%

21%

6%

3%

12%

9%

29%

16%

56%

16%

13%

13%

13%

19%

16%

50%

9%

13%

16

54%

30%

44%

36%

34%

62%

37%

43%

6%

7%

11%

10%

6%

1%

8%

11%

Daily Weekly Monthly Less

Gaming Frequency and Session Duration

ST17a1 How often do you play games on a smartphone, iPod Touch, or tablet? ST17b1 When you play games on a smartphone, iPod Touch, or tablet, how many minutes do you play before taking a break?

43%

40%

59%

65%

28%

53%

26%

32%

10%

4%

7%

2%

19%

3%

8%

1%

Daily Weekly Monthly Less

Session Duration

N=271

N=261

N=133

N=282

Among Smartphone Gamers 6-12

Session Frequency

N=202

N=236

N=88

N=144

US

CN

JP

KR

US CN JP KR

28.3 31.519.3

33.732.9 34.7

17.9

24.1

Smartphones Tablets

Among TabletGamers 6-12

• Unlike in the US, in Asian countries, gamers are more likely to play daily on smartphones than on tablets, especially in KR.

• The average gaming session on mobiles devices meet or exceed the run-length of an average TV show, except for JP where it is considerably shorter, implying a different usage pattern.

17

13%

52%

23%

12%

20%

42%18%

20%

21%

31%28%

20%

Daily

Weekly

Monthly

Less often 14%

26%

22%

38%

29%

10%

15%

8%

8%

4%

29%

10%

15%

8%

8%

4%

20%

7%

24%

16%

4%

Friends

Family

Ranked lists, app store

Featured games, app store

YouTube

Ads on TV

27%

13%

15%

10%

7%

4%

Awareness Sources of Mobile Game Apps

ST12 How do you hear about game apps to download onto a smartphone, iPod Touch, or tablet? ST12a What is the one main way you hear about games to download onto a smartphone, iPod Touch, or tablet? ST12a1 How often do you search for new games to play on your smartphone, iPod Touch, or tablet? Please select the answer that is closest to your actual habits.

Searching Frequency

US CN

JP KR

US CN JP KRN=338 Mobile Gamers 6-12 N=211N=338 N=322

N=338

N=211 N=322

N=338

Main Source of Mobile Game Awareness

• Across the US and Asia, app store lists and features are the best way to reach people.

• CN and KR gamers search for new apps more frequently.

• CN kids pay more attention to ranked lists.

18ST12_0 For the smartphone, iPod Touch, or tablet that you play games on, who picks the games that you play?

Who Selects Mobile Games to Download

US

CN

JP

KR

56%

66%

57%

66%

26%

13%

14%

14%

18%

21%

29%

20%

I have more say About Even My parents have more say

Who Picks The Mobile Games You Play?Mobile Gamers 6-12

N=338

N=312

N=211

N=322

Kids have a noticeable amount of say in which mobile games they play, especially in CN and KR.

19G19Allowance Do you give your child a set weekly or monthly allowance specifically for video games? If so, please specify the total allowance you give them per month.

Allowances

14%

15%

71%

Yes, I give allowance specifically for video games

No, I give a general-purpose allowance

No, I don't give any allowance

Average gaming allowance: $37.8

Average general allowance: $24.7

Average Monthly AllowanceN=400 Parents of All Gamers 6-12

(15% M /14% F)

(19% M /11% F)US

• CN and KR parents are more likely to give allowance than other parents.

• US and CN parents who give game specific allowance are generous, providing comparatively large sums.

27%

32%

41%

Average gaming allowance: $33.2

Average general allowance: $20.9

(24% M /30% F)

(31% M /32% F)CN

3%

28%

69%

Average gaming allowance: $26.4

Average general allowance: $12.9

(2% M /4% F)

(27% M /30% F)

JP13%

36%51%

Average general allowance: $21.7

Average gaming allowance: $18.3

(12% M /15% F)

(38% M /35% F)KR

20

32%

24%

29%

15%

31%

18%31%

20%

23%

23%

21%

33%

30%

29%

19%

22%Males 6-9 Males 10-12 Females 6-9 Females 10-12

Mobile Spending In Past Six Month

S7 Now, please indicate whether or not you spent money on your children 6-12 on the following gaming activities in the past 6 months.

% Who Spent For Mobile In-game Purchases By Age And GenderMobile In-game Spenders

23% spent on IAP in the past

six months

USN= 91

9% on IAP

35% on IAP

24% on IAP

• Mobile spending is driven by kids 6-9 in CN and JP, and by girls 10-12 in KR.

• In-App Purchases (IAP) is not common among JP kids.

CNN= 140

KRN= 97

JPN= 34

21

9%

16%

12%

15%

18%

14%

22%

9%

14%

14%

16%

16%

17%

23%

When I have to wait for a period of time before I can play again

When I hear other people are playing the game

When there's a sale

To customize my character

When I cannot pass a level

When I can't play the rest of the game unless I buy it

To get a special item

11%

10%

10%

23%

17%

8%

16%

6%

11%

9%

11%

9%

8%

15%

31% 69%38% 62% 37% 63%51%

49%

Mobile Item Purchase Drivers

ST25 When do you usually ask your parents to spend money for a mobile game (e.g. new characters, skins/clothes, energy, new maps)?

US CN JP KRN=338 Mobile Gamers 6-12 N=312 N=211 N=354

Reasons to Spend on In-Game Items

% Asking for Mobile In-App Purchase

I ask my parents to spend on mobile games

• Majority of mobile gamers 6-12 ask parents to spend on mobile games.

• KR spenders buy to customize their characters.

N=338 N=312 N=211 N=354

22

Questions?

Yuanzhe (Michael) Cai蔡元喆SVP of Research, Games and Technology

P: 310.981.4754F: 310.981.4771

www.interpretllc.comTwitter: @mycai | @InterpretLLC

michael.cai@interpretllc.com