Delivered at Casual Connect Europe 2018. Competitive gaming is the latest trend in mobile gaming, bringing the ‘core’ gaming experience from PC and Console to mobile devices. In this talk, Tom Wijman will examine the rise of competitive gaming, the trends that are driving it, and what this means for mobile gaming as a whole. He will also explore the impact that the growth of competitive gaming is having on mobile esports and how this differs between the East and the West.

1. MAY 2018
TOM WIJMAN
SENIOR MARKET ANALYST
NEWZOO
TOM@NEWZOO.COM
LINKEDIN.COM/IN/TOM-WIJMAN/

2. 2
GLOBAL GAMES REVENUES | PER DEVICE & SEGMENT WITH YEAR-ON-YEAR GROWTH RATES
+1.6% YoY
+4.5% YoY
+25.5% YoY
©2018 Newzoo
2018 TOTAL
+13.3%
YoY
+4.1% YoY
+13.1% YoY -13.9% YoY
+29.0% YoY
In 2018, mobile
games will generate
or of the global
market.
Source: ©Newzoo | Q2 2018 Update | Global Games Market Report
newzoo.com/globalgamesreport

3. GLOBAL GAMES MARKET REVENUE FORECAST PER SEGMENT TOWARD 2021
36%
41%
44%
47%
49%
10%
10%
10%
10%
10%
27%
25%
24%
22%
22%
4%
3%
2%
2%
1%
23%
21%
20%
19%
18%
2017 2018 2019 2020 2021
ConsoleBrowser PCBoxed/Downloaded PC
MOBILE
TOTAL MARKET
+10.3%
CAGR 2017-2021
MOBILE
MOBILE
MOBILE
MOBILE
©2018 Newzoo
Source: ©Newzoo | Q2 2018 Update | Global Games Market Report
newzoo.com/globalgamesreport
Mobile will remain
gaming segment
toward 2021.
3
Tablet Smartphone

4. IMMERSE | COMPETE

5. 5
WITH THE MOST IMPRESSIVE GROWTH IN CHINA
of the aggregated revenues of top 100 grossing mobile games
came from competitive multiplayer games in 2017.
Source: ©Newzoo | Global Games Market Report
newzoo.com/globalgamesreport
MARKET SHARE OF COMPETITIVE MULTIPLAYER MOBILE GAMES
BASED ON THE TOP 100 GROSSING GAMES
8,1%
7,2%
10,7%
9,0%
7,4%
11,3%
2016 2017
Global U.S. China

6. 6
NUMBER OF MOBILE GAMERS PER SUB REGION | GLOBALLY
11,2M
23,7M
59,3M
142,5M
158,8M
165,6M
166,0M
195,8M
303,6M
346,4M
577,9M
M 100M 200M 300M 400M 500M 600M
Oceania
South Korea
Japan
Eastern Europe
Southeast Asia
North America
Western Europe
Latin America
Rest Asia
Middle East & Africa
China
0
% OF THE TOTAL
POPULATION
41%
20%
17%
30%
41%
46%
24%
40%
47%
46%
27%
mobile gamers
globally
NUMBER OF MOBILE GAMERS
PER REGION | 2018
In 2018,
of the total population
in the West will play
mobile games.
Source: ©Newzoo | Q2 2018 Update | Global Games Market Report
newzoo.com/globalgamesreport

7. 7
SMARTPHONE USERS BY REGION | 2015 – 2020

8. 8
LEADING PUBLISHERS FIND HUGE SUCCESS WITH MOBILE TITLES BASED ON POPULAR PC GENRES
Tencent’s mobile
MOBA Honor of Kings
has been
grossing mobile game
in China since
November 2016.
Originally
a PC title
Originally
a PC title

9. 9
5 BATTLE ROYALE GAMES LAUNCHED IN BETWEEN DECEMBER 2017 AND FEBRUARY 2018
Tencent’s mobile
battle royale games hit
pre-registers quickly
after the games were
announced.

10. 10
BATTLE ROYALE GAMES WERE QUICKLY ADAPTED TO MOBILE FORMAT
downloads of PUBG Mobile and Fortnite Mobile occurred on iOS in
April globally, including PUBG: Exciting Battlefield in China.
downloaded iOS
game* in April
downloaded iOS
game in April
* Downloads of PUBG Mobile include downloads of PUBG: Exciting Battlefield in China.
Source: ©Newzoo | Global Games Market Report

11. 11
TODAY’S MOBILE DEVICES ARE RIVALING LAPTOPS IN TERMS OF SPEED AND SPECS

12. 12
26.5% OF ALL ACTIVE DEVICES IN MARCH WERE HIGH-END
* High-end devices have at least 2GB of RAM, 2 CPU cores, NFC, biometric identification, 4G compatibility, and a launch date after 2014.
Source: ©Newzoo | Global Smartphone and Tablet Tracker
As of March 2018,
there were
high-end active
devices globally,
grew by YoY.
HIGH-END DEVICE DISTRIBUTION

13. 13
41.5% OF ALL ACTIVE DEVICES IN MARCH HAD BIG SCREENS
SCREEN SIZE
Source: ©Newzoo | Global Smartphone and Tablet Tracker
newzoo.com/smartphone-and-tablet-tracker
As of March 2018,
active devices have
big screens (5.5’’+),
or of all active
devices in the world.

14. 14
SHARE AND TYPE OF PAYERS PER PREFERRED MOBILE GAME GENRE |
Source: Newzoo Consumer Insights 2018. Weighted average of consumers in U.S., U.K., Germany, Japan, South Korea and China.
66%
42% 46% 43% 46% 43%
39% 37% 35% 34% 33% 35% 34% 34%
29% 28% 31%
25%
20%
19%
29% 24%
24% 20% 23%
25% 26% 27% 28% 28% 26% 25% 25%
30%
27% 23%
25%
27%
12%
21% 22%
24% 24% 24% 27% 27% 27% 28% 30% 29% 30% 31% 29% 32% 33%
34% 38%
4%
8% 8% 9% 9% 10% 9% 9% 11% 10% 9% 10% 11% 10% 12% 12% 14% 16% 16%
of mobile MOBA players spend more the $25
per month vs. only 4% for puzzle game players.

15. 15
MOBILE GAMERS WHO PARTICIPATE IN EVENTS ARE A VALUABLE TARGET GROUP
of frequent tournament participants spend money on mobile
games vs. 26% of mobile gamers who don’t play tournaments.
*Mobile gamers who participate in any type of online tournament or offline LAN events at least once every three months.
Source: ©Newzoo | 2018 Consumer Insights Games
74%
17%
7%
2%
30% 30% 29%
10%
Non-tournament gamers
Frequent tournament participants*
SPENDING BEHAVIOR ON MOBILE GAMES
Non Spenders Minor
Spenders
Average
Spenders
Big Spenders

16. IMMERSE | COMPETE

17. 17
TREND OF MOBILE ESPORTS IS REFLECTED IN PRESS & MEDIA

18. 18
FOR TEAMS, PUBLISHERS, BRANDS AND SPONSORS ALIKE
TEAMS HAVE OPPORTUNITY TO ENGAGE A NEW AUDIENCE
AND GROW THEIR FANBASE
PUBLISHERS ARE MASSIVELY BACKING ESPORTS SCENES
FOR THEIR GAME TO BOOST PLAYER ENGAGEMENT, PLAYER
RETENTION AND ULTIMATELY, IN-GAME REVENUES
BRANDS ARE INTERESTED IN ESPORTS TO REACH A YOUNG
AUDIENCE. MOBILE GAMES HAVE THE LARGEST AUDIENCE,
BIGGEST PLAYER BASE AND GLOBAL REACH.
Source: Supercell.
Teams participating in Clash Royale League.

19. PRO ESPORTS IS ONLY AT THE PINNACLE OF A COMPETITIVE GAME EXPERIENCE
Mobile games can be equally
to PC and
console games.
Moments to determine
content creation. What these
moments are determine if it is
esports. Do the moments have
to do with skills? Or fun or
visual? Esports require skill-
based moments.
For mobile games, fans can
immediately switch between
playing and
Amateur leagues and competition between
, that are key to both mobile and PC
competitive games.
Consumers and small organizations set up at
physical locations, for instance, fun community
competitions. These events can be anywhere and
anytime for mobile games, as there is low barrier to
entry and no additional equipment required.
Competitive gaming at a and in an
organized format (a tournament or league) with a specific
goal (i.e., winning a champion title or prize money) and a
clear distinction between players and teams that are
competing against each other.
19

20. 20
TENCENT’S KING PRO LEAGUE IS THE WORLD’S LARGEST MOBILE ESPORTS LEAGUE
people attended the King Pro League (KPL) 2017 Finals on
December 23rd 2017 in Shenzhen.
mobile esports
league widewide
KING PRO LEAGUE 2017 FINALS

21. 21
SUPERCELL IS BUILDING UP CLASH ROYALE’S ESPORTS SCENE
total Twitch viewership hours of the Clash Royale Crown
Championship 2017 World Finals on December 3rd 2017 in London.
mobile esports
title in the West
CROWN CHAMPIONSHIP 2017 WORLD FINALS
©Newzoo | Source: Newzoo’s Game Streaming Tracker
www.newzoo.com/game-streaming-tracker

22. IMMERSE | COMPETE