GAMING INDUSTRY An Evolve Marketing Insights Special Report Our portfolio of lifestyle brands feeds adults interests, fueling a range of influential communities from gaming to life and style and entertainment enthusiasts

Executive Summary

GAMING INDUSTRY INSIGHTS Executive Summary “While films are very visual and emotional artistic medium, video games take it one step further into the realms of a unique personal experience.” - Jet Li By the end of 2016, the game industry will generate $99.6B in worldwide revenue, an increase of $8.5% compared to 2015. By 2017, revenue is projected to increase an additional 7% (102.9B) 29% of people who play video games are 18-35 and 59% are male 95% of video game purchasers own dedicated game consoles and buy video games for them, 21% say price is the most important factor when buying a game

Gaming Insights

GLOBAL VIDEO GAME INDUSTRY There was a 8.5% YoY gaming revenue growth in gaming from 2015 to 2016 By 2017, the Global Game Market will reach $102.9B, up 7% from 2016 Mobile Gaming grew by 21.3% in 2016 and will surpass PC gaming in 2017 North America’s gaming revenue grew by 4.1% (25.4B) YoY in 2016, mainly due to mobile gaming PC / MMO Casual Webgames TV / Console Handheld Tablet Smartphone $91.8Bn MOBILE $30.4Bn $99.6Bn MOBILE $36.9Bn $106.5Bn MOBILE $42.5Bn $112.5Bn MOBILE $47.4Bn $118.6Bn MOBILE $52.5Bn 34% 30% 30% 32% 29% 28% 27% 27% 28% 26% 26% 27% 26% 24% 25% 10% 10% 11% 11% 9% 6% 5% 5% 4% 4% 3% 2% 1% 1% 1% 2015 2016 2017 2018 2019 Source: Newzoo Q2 2016

WHO IS PLAYING? Age Gender The average game player is 35 years old 18% 29% Under 18 years Age Of Game Players 18-35 years 155MM Americans play games regularly (3+ hours per week) 63% of U.S. households have at least 1 person who plays video games Average gamer per U.S. household is 1.7 65% of U.S. households own a device used to play video games 48% of U.S. households own a dedicated game console 36-49 years 50+ years 26% 27% 41% Gender Of Game Players 59% Male Female Source: ESA Entertainment Software Association 2016

Influencing Decisions to Purchase Video Games WHO IS BUYING? 41% of the most frequent game purchasers buy a new video game without having tried them 38 is the average age of the most frequent game purchaser Of the most frequent game purchasers: 40% are female and 60% are male In 2015, 70% of U.S. revenue within the Games Industry came from Content* consumption Price 21% Other 22% Accessories $2.1B Total Consumer Spend on Games Industry 2015 Interesting story/premise 16% Factors Influencing Decisions to Purchase Video Games Product is familiar To me from past Experiences 9% $23.5 U.S. Billion Hardware $4.9B Product is a Continuation of a favorite game series 9% Quality of Graphics 12% Content $16.5B Word of mouth 11% * Video games, computer games, other delivery formats include subscriptions, digital full games, digital add-on content, mobile apps, social network gaming and other physical delivery. 2003-2009 figures are sales of new physical content at retail exclusively. Source: ESA Entertainment Software Association 2016/The NPD Group/Games Market Dynamics

HOW THEY PLAY? 51% of gamers play a multiplayer mode at least weekly 54% of the most frequent video gamers play with others Gamers who play multiplayer and online games spend an average of 6.5 hours per week playing with others online and 4.6 hours per week playing with others in-person 51% of gamers play a multiplayer mode at least weekly 75% believe playing video games provides mental stimulation or education Top devices gamers use: 56% PC 53% Video game console 36% Smartphone 31% Wireless device 17% Handheld video game Game consoles are used for other entertainment purposes: 50% Watch movies 34% Watch TV shows 28% Listen to music 21% Live and other content Source: ESA Entertainment Software Association 2016

GAMING AND GAMERS Men and women play video games, but men are more likely to call themselves “Gamers” Of the 49% of the American adults that “ever play video games on a computer, TV, game console, or portable device like a cellphone,” only 10% consider themselves to be “gamers” 60% of American adults believe that the gaming industry is dominated by men 50% of men and 48% of women report ever playing video games Men are more than twice as likely to call themselves “gamers” % of all adults who… Identify as “gamers” Play video Games 50% Men Women Men, age 18-29 Women, age 18-29 48 77 57 9 33 6 15% Source: Pew Research

PARENTING ON GAMING 86% of parents are aware of the ESRB rating system and 97% believe it is accurate 93% of parents control what their kids play 91% of the time parents are present at the time games are purchased or rented 68% of parents say video games are a positive part of their child’s life 62% of parents whose children are gamers play computer and video games with their children at least weekly Source: ESA Entertainment Software Association 2016

TOP 5 REASONS PARENTS PLAY GAMES WITH THEIR KIDS 1 2 3 4 5 88% It’s fun for the entire family 57% Enjoy playing video games as much as their child does 76% Good opportunity to socialize with their child 59% Good opportunity to monitor game content 76% They asked to

TOP 10 VIDEO GAMES OF 2015

BEST-SELLING VIDEO GAME GENRES Other games / compilations .08% Strategy 3.8% Action 22.9% Sport Games 13.2% Adventure 7.7% Super Genres by Units Sold, 2015 Shooter 24.5% Casual 0.9% Family entertainment 3.6% Role-playing 11.6% Racing 6.7% Racing 4.1% Source: The NPD Group / Retail Tracking Service

TOP 10 PC GAMES OF 2015

TOP 5 BEST-SELLING VIDEO GAME GENRES Action 4.1% Adventure 5.9% Strategy 36.4% Role playing 18.7% Super Genres by Units Sold, 2015 Casual 25.8% Source: The NPD Group / Retail Tracking Service

+4MM Gamers* visit our sites monthly ON THE GAME +4MM Gamers* visit our sites monthly +6.9MM unique visitors across our Gaming Portfolio +3.1MM Gaming Channel Social reach Intenders 3.1% of our users across the Gaming vertical, exit to client pages/ purchase sites 180% more likely to search online for web-enable gaming consoles 331% more likely to spend $200+ on video games in the last 6 months 82% (182 comp index) play 20+ hours per week 100% (200 comp index) own an Xbox game console 98% (198 comp index) own a Playstation game console 105% (205 comp index) own a Wii game console 80% (180 comp index) play video games on their PC 51% (151 comp index) searched onlilne for games 99% (199 comp index) play Action video games 70% (170 comp index) prefer playing Shooter video games 110% (210 comp index) play Sports video games 108% (208 comp index)v play Adventure video games Gamers (M18+) *Gamers: Played offline/online video games within the last 30 days across CraveOnline (P), Desktop only. Source: Source: ComScore Key Measures Multiplatform/, Q1 2011. Plan Metrix, GameRevolution (M), Q1 2017. Social Media Site List, Q1 2017.

+4MM Gamers* visit our sites monthly ON THE GAME +4MM Gamers* visit our sites monthly +6.9MM unique visitors across our Gaming Portfolio +3.1MM Gaming Channel Social reach Intenders 3.1% of our users across the Gaming vertical, exit to client pages/ purchase sites 180% more likely to search online for web-enable gaming consoles 331% more likely to spend $200+ on video games in the last 6 months 82% (182 comp index) play 20+ hours per week 100% (200 comp index) own an Xbox game console 98% (198 comp index) own a Playstation game console 105% (205 comp index) own a Wii game console 80% (180 comp index) play video games on their PC 51% (151 comp index) searched onlilne for games 99% (199 comp index) play Action video games 70% (170 comp index) prefer playing Shooter video games 110% (210 comp index) play Sports video games 108% (208 comp index)v play Adventure video games Gamers (M18+) *Gamers: Played offline/online video games within the last 30 days across CraveOnline (P), Desktop only. Source: Source: ComScore Key Measures Multiplatform/, Q1 2011. Plan Metrix, GameRevolution (M), Q1 2017. Social Media Site List, Q1 2017.

+4MM Gamers* visit our sites monthly ON THE GAME +4MM Gamers* visit our sites monthly +6.9MM unique visitors across our Gaming Portfolio +3.1MM Gaming Channel Social reach Intenders 3.1% of our users across the Gaming vertical, exit to client pages/ purchase sites 180% more likely to search online for web-enable gaming consoles 331% more likely to spend $200+ on video games in the last 6 months 82% (182 comp index) play 20+ hours per week 100% (200 comp index) own an Xbox game console 98% (198 comp index) own a Playstation game console 105% (205 comp index) own a Wii game console 80% (180 comp index) play video games on their PC 51% (151 comp index) searched onlilne for games 99% (199 comp index) play Action video games 70% (170 comp index) prefer playing Shooter video games 110% (210 comp index) play Sports video games 108% (208 comp index)v play Adventure video games Gamers (M18+) *Gamers: Played offline/online video games within the last 30 days across CraveOnline (P), Desktop only. Source: Source: ComScore Key Measures Multiplatform/, Q1 2011. Plan Metrix, GameRevolution (M), Q1 2017. Social Media Site List, Q1 2017.

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