The document discusses trends in the mobile gaming industry and their impact on external development. It notes that the gaming audience is expanding globally and maturing, with players consuming more diverse content through both interactive and passive channels. The proliferation of mobile devices and rapid technological advancements are increasing demand for richer, more complex games delivered across multiple platforms. This is driving greater need for external support from service providers in areas like engineering, art creation, live operations, and localization.
8. 8
GROWTH IN USAGE OF SERVICE PROVIDERS
FOR EXTERNAL DEVELOPMENT
2017
2012
Art
10%
21%
2017
2012
SE
6%
29%
Average Percentage of Mobile Developer Clients for Service Providers
Source: XDS 2017 white paper
9. 9
SCALABILITY REMAINS #1 REASON DEVELOPERS/PUBLISHERS ENGAGE SERVICE PROVIDERS
WHY DEVELOPERS ENGAGE SERVICE
PROVIDERS
10. 10
SCALABILITY ISTHE KEY REASONTO ENGAGE WITH EXTERNAL PARTNERS
WHY DEVELOPERS ENGAGE SERVICE PROVIDERS
2017 2016
47%
15. 15
$15.1B $38B2016 Music Industry
Revenue, Global
2016 Box Office
Revenue
Source: iPhone Life Magazine
16. GLOBAL EXPANSION
Increasingly global industry with more room to grow and innovate
88%
84%
Western Europe
67%
Eastern Europe
60%
Middle East
66%
South America
53%
Central America
57%
East Asia
53%
South East Asia
33%
South Asia
29%
Africa
17. 17
MOBILE SEGMENT FORECASTTO GROW 42% OVERTHE NEXT 3YEARS
MOBILE GAMES ACCOUNT FOR 45% OF
THE TOTAL MARKET REVENUE
19. GLOBAL GAMES MARKET FORECAST
Mobile forecast to become more than 50% of the market by 2020.
20. 20
GROWTH OF MOBILE IN CHINA
The mobile market accounts for 46% of the revenue of China’s $24.6B games market
Mobile in China Forecast to be 17% of Global Games Revenue
21. 21
INCREASE IN # OF MOBILE
DEVELOPERS & OTHER
INDUSTRIES COMPETING FOR
SERVICE PROVIDER CAPACITY
SERVICE PROVIDERS
OFFERING
CULTURALIZATION
POSSIBLE TALENT
SHORTAGE AT CHINESE
SERVICE PROVIDERS
OVERALL MOBILE GAMING
MARKET GROWTH
GROWTH ACROSS
EMERGING MARKETS
MOBILE GAMES
POPULARITY GROWING
RAPIDLY IN CHINA
Trend Impact
SUMMARY
23. 23
AUDIENCE SEGMENTS MOVING CLOSERTOGETHER
CORE GAMERS GENERAL AUDIENCE
LONG RUNNING
HISTORY WITH GAMES
FAMILIARITY WITH
CONTROLLER INPUT
PRIMARILY ENTERTHROUGH
PREMIUM BUSINESS MODEL
GROWING EXPOSURE AND
INTEREST IN GAMING CONTENT
FAMILIARITY WITH
TOUCHSCREEN AND INTUITIVE
INPUTS
PRIMARILY ENTERTHROUGH
FREEMIUM MODEL
INCREASED AUDIENCE CONVERGENCE
24. 24
Accelerating growth for “appointment” gaming
$3.84B2
Revenue to-date from In-App
Purchases
$3.18B1
Worldwide Gross Revenue
(Box Office, DVD, Blu-Ray)
AUDIENCE AND REACH
Source: 1.The-Number.com All Time Worldwide Box Office; 2. AppAnnie Data
Dec 2009 to Jun 2014 – 55 months Dec 2012 to Jun 2017 – 55 months
25. 25
Gaming growing as both interactive and passive form of entertainment
What Are People Watching Today?
104M
1
Unique Subscribers
Worldwide
185M1
Average Unique
Viewers Per Month
AUDIENCE AND REACH
Source: 1. Superdata Research; Netflix Quarterly earnings
27. 27
More People Watch GFC than HBO, Netflix, ESPN, and Hulu Combined
AUDIENCE AND REACH
#1 YouTube Channel
PewDiePie - comedic
commentary while playing
games
55.9M Subscribers
#2 YouTube Channel
HolaSoyGerman –
comedy sketches
in Spanish
31.9M Subscribers
#3 YouTube Channel
elrubiusOMG – comedic
commentary in Spanish while
playing games
24.8M Subscribers
28. 28
More features at launch
Regular post-launch updates
Events
Robust live operations
PLAYERS DEMAND MORE CONTENT
LTV CHECKLIST
29. 29
SUMMARY
SERVICE PROVIDERS
TRADITIONALLY ONLY WORKING
ON CONSOLE, NOW HAVE MOBILE
CLIENTS.
INCREASE IN COMPANIES
OFFERING EXPERTISE WITH VIDEO
PRODUCTION AND TWITCH
INTEGRATION
SERVICE PROVIDERS
INCREASINGLY USED TO CREATE
FEATURES & CONTENT FOR LIVE
SERVICES
MOBILE AUDIENCE
MATURING
PLAYERS ENGAGING VIA
NEW PASSIVE &
INTERACTIVE CHANNELS
PLAYERS CONSUMING
MORE CONTENT &
QUICKER
Trend Impact
37. 37
MANY WAYS TO INTERACT – RIPE FOR DISRUPTIVE INNOVATION
EXISTING WAYS TO PLAY EMERGING WAYS TO PLAY
SmartDevicesHHMORE WAYS TO PLAY MOBILE GAMES
CrossPlatformPlayAR/VR
Photo Credit: VR Today
43. 43
MANY INDUSTRIES ARE ADOPTINGVR/AR MUCH QUICKERTHANTHE GAMES INDUSTRY
VR BEING LEVERAGED ACROSS MANY INDUSTRIES
AUTOMOTIVE
BMW, Audi, Porsche,
KIA, Peugeot,
Volkswagen, Volvo,
Lexus, Chevrolet, and
Honda have all
embraced VR and are
using it as part of their
marketing strategy in
2017.
Toyota used VR to
educate parents and
teens about the
dangers of distraction
with their
TeenDrive365
campaign
HOSPITALITY
Several of the larger
hotel chains have
recently commissioned
VR tours of all public
facilities, allowing
customers unrestricted
24/7 access to all
public areas - even if
they are currently
being used for
meetings.
TripAdvisor is looking
at creating virtual walk-
throughs of
restaurants, museums,
and tourist attractions.
HEALTHCARE
Hospitals and
healthcare providers
began not only utilizing
VR technology to stay
on top of cutting edge
medical procedures —
such as robotic surgery
and remote telesurgery
— they also began
leveraging it as a tool
for medical training.
RETAIL
The North Face
invested in VR
technology in select
store locations to give
customers a one-of-a-
kind experience while
browsing for
outerwear. They can
virtually jump off a cliff
or climb a mountain,
creating a way for
shoppers to not only
look at how North Face
products perform in the
outdoors
REAL ESTATE
Sotheby’s is letting
high-end buyers
virtually walk through
available homes using
headsets. Not only
does this allow clients
to see multiple homes
quickly without ever
leaving the office, it
tracks their eye and
head movements—
offering a glimpse into
the specific features
clients are interested
in.
FOOD & BEVERAGE
For Nescafe, VR is a
way for the brand to
promote transparency
and sustainability to
Millennial consumers.
They recently
partnered with Google
Cardboard to create an
app allowing mobile
phone users to get a
360 degree view of the
coffee fields in Brazil—
giving them an
experience when it
comes to the origins of
their beverage, rather
than reading words of
a box
EDUCATION
Google recently
launched Google
Expeditions, a program
that allows students to
take virtual trips around
the globe, and even
into space.
45. 45
SUMMARY
INCREASE DEMAND FOR
PORTING, QA, DEVICE
CERTIFICATION
INCREASED DEMAND FOR AI
DEVELOPMENT, COMPLEX
SERVER SIDE ENGINEERING AND
3D HIGH FIDELITY ART STUDIOS
SERVICE PROVIDERS GETTING AHEAD
OF DEMAND COULD SPELL TROUBLE.
PROCEDURAL ART COULD DECREASE
NEED FOR EXTERNAL SUPPORT.
INCREASE IN # DEVICES AND
PLATFORMS WITH PLAYERS
EXPECTING CROSS-PLATFORM
EXPERIENCES
DEMAND FOR DEEPER,
RICHER, HIGHER QUALITY
MOBILE EXPERIENCES
NEW TECHNOLOGIES OPENING
UP OPPORTUNITIES FOR OPEN
WORLD GAMES.
Trend Impact
INCREASED DEMAND FOR 3D
REALTIME ANIMATION PROVIDERS
NON GAMES INDUSTRY
ADOPTING VR/AR AT A MORE
RAPID PACE THAN THE GAMING
INDUSTRY
46. 46
SUMMARY OF TRENDS AND IMPACT ON
EXTERNAL DEVELOPMENT
GEOGRAPHIC
EXPANSION
MORE WAYS
TO PLAY
GREATER
ACCESSIBILITY
AND DIVERSITY
DEMAND FOR
DEEPER &
RICHER GAMES
REGULAR LIVE
SERVICES
RELEASES
MOBILE TECH
ADVANCEMENTS
DEEPER
ENGAGEMENT
NEED FOR
MORE
CONTENT
As part of XDI’s strategic role at EA, we need to take that information and then figure out why.
The question becomes why…?
86.5 Billion
Huge growth in emerging market. China is now higher than the U.S.
Previously, if you wanted to play game you needed to go to the shop, purchase a disk/tape and load them
Text-based games NFS, J2ME device
APAC territories will generate $51.2 billion (47% of the global total) in 2017, Newzoo said, and China will be responsible for one quarter of all global game revenues, reaching $27.5 billion this year. That's notable because it outpaces the US games industry, which is expected to reach $25.1 billion. Mobile revenues in China, expected to be led mostly by Tencent and NetEase, should come in at $11.2 billion for 2016, Newzoo said, and that's expected to rise to $14.6 billion this year.
Even without China, Japan and Korea, the rest of Asia is expected to be the fastest-growing region in the world in the coming years, with total game revenues growing to $10.5 billion in 2020, up from $4.5 billion last year.
North America remains a massive market as the second largest region with estimated revenues of $27.0 billion in 2017 (up 4% year-on-year). That growth, although less impressive, will also be driven by mobile, which is not yet saturated. "Growth is fueled by a combination of a higher share of spenders as well as average spend per paying gamer. We see the same trend in EMEA which we expect to reach $26.2 billion in 2017. Latin America will grow to $4.4. billion in game revenues this year,"
86.5 Billion
Huge growth in emerging market. China is now higher than the U.S.
Previously, if you wanted to play game you needed to go to the shop, purchase a disk/tape and load them
Text-based games NFS, J2ME device
Originally companies only focused on the core gamer.
Many who would not say they are a gamer have at least one game on their phone
Now everyone is playing through them mobile devices
Gen Z – now reaching 18 years of age – they have grown up with tech since birth. 2.8 billion representing 2/3 of the world’s population…
Industry has transformed to be both an interactive and passive form of entertainment
Avatar largest grossing film in history.
The studio was so successful that it actually ran a minute-long ad during the Super Bowl 2015 for Clash of Clans to attract new players. That commercial likely cost the company around $9 million just for the airtime, and it starred international movie star Liam Neeson.
In terms of passive form of entertainment…. Netflix has
Watching games
Increased from 45 million in 2014
16 billion minutes watched per month
Big Bang Theory = 14.9 million average Season 8
Sunday Night Football 2015 = 22.5 million
high female representation (46%) and high average income ($58K in the US).
In terms of passive form of entertainment…. Netflix has
Watching games
Increased from 45 million in 2014
16 billion minutes watched per month
Big Bang Theory = 14.9 million average Season 8
Sunday Night Football 2015 = 22.5 million
high female representation (46%) and high average income ($58K in the US).
The importance of designing for LTV is becoming paramount of CPIs are skyrocketing. CPIs are increasing as more big brands enter the mobile gaming space and organic discover becomes next to impossible.
Gordon Moore, co-founder Intel predicted 1965 Electronics Magazine that # of transistors in an integrated circuit would double every two years.
1985 Cray 2 supercomputer vs. 2012 iPhone 5 2x the processing power (27 years)
More powerful devices: Support AAA bigger games – missing 5C, iPhone SE, 6splus… rumors suggest a radical redesign for iPhone 8. A11 chip, 3GB plus of memory, Maybe edge to edge display, Touch ID built in? No home button?
1 S6 is to 5 PS2’s (based on GFLOPs. CPU Speed, RAM)
Support AAA bigger games – these titles require more features, and more partners being leveraged for 3D art production, a lot of games moving toward photo realistic art – leveraging partners to build the titles
Proliferation of devices more fragementation: testing across devices for QA , device cert, and external partners for porting
Proliferation of devices
This means in the games industry we aren’t looking at using partners quite yet as it’s difficult to build an experience that is sticky and makes money but many other industries are looking at VR.
Not going to cover in detail but as you can see many industries are embracing VR Automotive, Hospitality, real estate, etc. Unreal is opening a commercial division – the big question is will the resources be available when the gaming industry decides to leverage them?
Metaverse, Machine learning, neural networks…
In an hour you are going to hear from a panel of experts on external development. One of the questions posed will be on how they have seen a growth in the need for new content so they will cover that during the panel.