1. mid-core gaming immersive experience and casual gameplay compromise or best of both worlds? 2012 Peter Warman CEO Newzoo peter@newzoo.com

2. mid-core gaming immersive experience

3. mid-core gaming casual gameplay

4. Golf VI Volkswagen Bejeweled PopCap Cygnet Aston Martin Panamera Porsche Enzo Ferrari Army Attack Digital Chocolate EVE online CCP League of Legends Riot Games mid-core gaming immersive experience and casual gameplay

5. Golf VI Volkswagen Bejeweled PopCap Cygnet Aston Martin Panamera Porsche Enzo Ferrari Army Attack Digital Chocolate EVE online CCP League of Legends Riot Games mid-core gaming immersive experience and casual gameplay Technically, League of Legends is a “mid-core” MMO, meaning you don’t have to play for 40 hours a week to enjoy it. The market for mid-core MMOs is vast—much larger than for hard-core MMOs such as World of Warcraft--in that the unique immersive aspects of MMO play are available to a much larger, casual gaming audience.

9. edgeworld

11. key trends shaping the mid-core market 1. Old love never dies The love for an immersive game experience does not go away as people grow older. It is just that the entry barrier and gameplay is not adapted to their “new life”. Their love remains largely answered in the current market. Mid-core games could be the answer, activating gamers that have stopped playing core-games. 2More gamers to come 2. More gamers to come Over the past ten years, games have become an integral part of every youngsters life. Mid-core games can ensure that these young core gamers keep playing immersive games as they grow older. 3. Time is Money As youngsters start a working and family life leisure time becomes scarce. At the same time they have more money to spend. To get the most out of leisure time, they are prepared to spend more money to enjoy. Mid-core games cater to this. Free-to-play is the only way to let people feel the casual gameplay. 4. New interfaces. Everywhere Intuitive interfaces (e.g. on tablet and phones) have forced core genre games to offer easier controls and adapted interfaces. Still these are very successful. Consumers are getting used to this type of interactivity increasing the appeal towards core gamers as well as increasing the potential player base. In addition, these interfaces allow gaming in new places and social settings. And, do not forget the growing number of girls that are going for the core stuff. Still hugely underestimated.

12. sizing the mid-core market where to start? ask Newzoo with their mid-core client base new in 2012

13. USUKGermanyFranceSpain NetherlandsBelgium ItalyBrazilMexicoRussia ChinaKorea USEurope*Emerging*Asia* $21.5bn 2011E 215m hrs/day Money Time €16.5bn 2011E 175m hrs/day $4.5bn 2011E 155m hrs/day $13.5bn 2011E 165m hrs/day sizing the mid-core market where to start? market size per segment/platform?

14. Global Money Time $60-70bn 2011E 900m-1bn 2011E 27% of money 49% of time Growth Potential? Casual, Social, Mobile “core” segments/platforms take more money than time “casual” segments/platforms take more time than money This gap is closing fast in the West The gap is a lot smaller in Emerging markets that have no legacy, especially Brazil F2P, Mid-core and Cross-platform gaming will accelerate this trend sizing the mid-core market where to start? money versus time spend?

15. USEurope* $21.5bn 2011E €16.5bn 2011E Mid-core market $1.2bn€1.1bn Total Market 21.6M24.0M 13.1M15.7M Mid-core opportunity $280M€260M 13.3M10.2M 3.2M3.6M Spend Players Spenders Spend Players Spenders 5.5% of market 23% growth 6.7% of market 24% growth sizing the mid-core market First: our conclusion

16. sizing the mid-core market What did we analyze? 10-30 30-50 Age 66.0M 35.1M 60.0M 14.6M 44.6M 27.4M 49.7M 29.1M 53%24%62%59% X% share of paying players All gamersSocial/CasualBothCore 91% of gamers plays online or mobile casual/social games

17. sizing the mid-core market What did we analyze? 30-50 Age 51.7M 26.8M 43.3M 10.2M 24.0M 15.7M 28.6M 18.5M 52%24%66%65% X% share of paying players All gamersSocial/CasualBothCore 84% of gamers plays online or mobile casual/social games

18. sizing the mid-core market What did we analyze? 30-50 Age 51.7M 26.8M 43.3M 10.2M 24.0M 15.7M 28.6M 18.5M 52%24%66%65% X% share of paying players All gamersSocial/CasualBothCore 14.3M8.3M16.7M4.4M20.6M11.7M21.1M10.6M -22%-24% abs % -28%-30%-46%-43% -37% Drop

19. sizing the mid-core market Mid-core market 30-50 Age 51.7M 26.8M 43.3M 10.2M 24.0M 15.7M 28.6M 18.5M 52%24%66%65% X% share of paying players All gamersSocial/CasualBothCore 14.3M8.3M16.7M4.4M20.6M11.7M21.1M10.6M -22%-24% abs % -28%-30%-46%-43% -37% Drop €1,1bn / year 24.0M players 15.7M payers 22% plays F2P MMOs 43% in the US

20. sizing the mid-core market Mid-core opportunity > smaller drop in core/casual players and payers 30-50 Age 51.7M 26.8M 43.3M 10.2M 24.0M 15.7M 28.6M 18.5M 52%24%66%65% X% share of paying players All gamersSocial/CasualBothCore 14.3M8.3M16.7M4.4M20.6M11.7M21.1M10.6M -22%-24% abs % -28%-30%-46%-43% -37% Drop €1,1bn / year 24.0M players 15.7M payers €260M / year 10.2M players 3.6M payers

21. In the US, average spending goes up in all segments except online casual, explained by the move of casual budgets to mobile and social networks. This is not the case in the EU. We expect the EU to follow the trend in the US as seen with many other trends. This is backed up by the increase in spending if we make the brackets slighty younger: 10- 25 and 26-40. profiling the mid-core market do typical mid-core gamers spend more? comparing age groups. +6% -13% +16%

22. Remember: there are more drivers than age! shaping the mid-core market 1.Old love never dies 2. More gamers to come 3. Time is money 4. New interfaces. Everywhere Western mid-core market potential >$2bn

23. profiling the mid-core market do not focus on one screen!

24. mid-core gaming immersive experience and casual gameplay Western mid-core market potential >$2bn

25. mid-core gaming immersive experience and casual gameplay compromise or best of both worlds? 2012 Peter Warman CEO Newzoo peter@newzoo.com

26. mid-core gaming immersive experience and casual gameplay compromise or best of both worlds? 2012 Peter Warman CEO Newzoo peter@newzoo.com