The Past, Present, and Future of Games: Global and Local Opportunities

THE PAST, PRESENT AND FUTURE OF GAMES
GLOBAL AND LOCAL OPPORTUNITIES
Co -founder Newzoo

On market and industry
4

Consumers driving change

© Newzoo 2020
– Empowered consumers
10
Razer goes IPO and
launches their
smartphone
Intel sponsors the
Olympics and
announces esports at
Tokyo 2020/2021
Esports team Fnatic
offers branded
peripherals and
opens physical store
THE EVOLUTION AND CONVERGENCE OF GAMING FROM A CONSUMER PERSPECTIVE
TOOLS
COMMUNITIES
“creating”
“sharing”
GAME
ESPORTS
“playing”
VIDEO
STREAMING
“viewing”
HARDWARE
“owning”
GEAR
© Copyright Newzoo 2018

EMPOWERED CONSUMERS
ENGAGEMENT FIRST

© Newzoo 2020
– New Segments
12
DOES NOT SEE
PLAYING AS #1
INTEREST
Source: Newzoo Consumer Insights Newzoo’s Gamer Segmentation

© Newzoo 2020
– Different for every game and type
13
HOURS
HOURS
STREAMING
HOURS SINCE
COVID
Source: Newzoo Platform LIVE HOURS
WATCHED AUG
2020: +80%
HOURS IN 2020
GAME ENGAGEMENT TIME

© Newzoo 2020
– Games are the new social networks
15
Of all gamers in the US,
Japan and Italy aged
between 10 and 30
17%
Plays more because
games are a means to
More time Socialize Escape Location Family
Source: Newzoo Consumer Insights
Socializing is at the heart
of games and platforms
Houseparty
integrated +

© Newzoo 2020
– facilitating modding and more
16
Some games focus on creating actual games for the platform, empowering people to
develop
Modders have been driving innovation in
PC gaming for along time .CS :GO, PUBG,
and DOTA are all games that have
stemmed from mods of other popular
video games .The end of 2019 saw Auto
Chess and GTA Role Playing become
streaming phenomena and define the
new auto -battler genre . Platforms like
Roblox and Dreams now exist to hone the
innovation and give creators a way to
monetize .

© Newzoo 2020
– Integration
17
Publishers can add a Scuti storefront to their games
containing products tailored to the player’s
preferences. Players then earn in -game rewards for
purchases through the Scuti store, and publishers
get a percentage of each sale, thereby maximizing
customer LTVs.

© Newzoo 2020
– Empowered communities
18
With streamers and esports athletes becoming bigger and more
well -known, matching up traditional celebrities with streamers to
play has become more and more popular. For charity or fun.
During the current lockdown period, many artists and
musicians are streaming their music and performances on
live streaming platforms, as live events are canceled. Fans
can contribute money to their favorite artists and are willing
to pay for digital performances.
Source: Newzoo Global Games Market Report

© Newzoo 2020
– USA analysis for Booking.com
GAMERS
TRAVELERS
24M 27M 131M
PLAY GAMES BUT DO NOT HAVE TRAVEL AS TOP 3 INTEREST
PLAY GAMES AND HAVE TRAVEL AS TOP 3 INTEREST
DO NOT PLAY GAMES BUT HAVE TRAVEL AS TOP 3 INTEREST
Music 34% 31%
Video games 32% 22%
Film/movies 24% 23%
Cooking 23% 25%
Sports 21% 22%
Shopping 19% 19%
Travel & holidays 17% 21%
Comp., electr . & gadgets 17% 13%
Do -it-yourself 13% 13%
Technology & science 11% 9%
Gardening 10% 12%
Board or card games 10% 9%
News & current affairs 10% 12%
Photography 8% 8%
Art & culture 8% 8%
Fashion 7% 7%
Literature & poetry 6% 6%
Cars & motorbikes 5% 5%
Other 4% 7%
GENERAL INTERESTS
GAMERS ONLINEPOP
#7
AGE
30YRS: 18M /67%
MOBILE GAMES
24M /89%
PC GAMES
18M /67%
CONSOLE GAMES
16M /59%
TRAVELING GAMERS
NEWZOO GAMER SEGMENTATION PERSONA’S
All -Round Enthusiast Cloud Gamer Ultimate Gamer Conventional Player Popcorn Gamer Backseat Viewer Hardware Collector Time Filler
ALL GAMERS
TRAVELING GAMERS
SOURCE: NEWZOO 2019 CONSUMER INSIGHTS | APRIL 2019 | 200 VARIABLES AVAILABLE FOR 30 COUNTRIES
5%
10%
9%
9%
17%
25%
3%
6%
8%
7%
10%
10%
49%
32%

Businesses driving change

© Newzoo 2020
– New Value Chains
Through its investment in Bamtech , Disney owns streaming rights to sports and League of Legends
Swedish broadcaster owns the world’s biggest esports organizers as well as game companies
The envisaged acquisition of Time Warner makes AT&T a main player in game and esports content
CONVERGENCE
“world’s #1 pastime” “community entertainment”
GAMER
“playing”
DEVELOPER
“making”
“games as a service”
PUBLISHER
“selling”
GAME
OPERATOR
ENTERTAINMENT
COMPANY
GAME
ENTHUSIAST
SPORTS MEDIA MOBILE
THE EVOLUTION AND CONVERGENCE OF GAMING FROM A CONSUMER PERSPECTIVE
© Copyright Newzoo 2017

EMPOWERED BUSINESS
INNOVATION AND CONVERSION

© Newzoo 2020
– Adjusted for Covid
+25.6 % YoY
+7.3 % YoY
Tablet Games
Smartphone Games
+29.0% YoY
Boxed/ Downloaded PC Games
+7.9 % YoY
Browser PC Games
-8.7 % YoY
2020 TOTAL
+19.6 %
YoY
+6.2% YoY
+21.0% YoY
Source: ©Newzoo | 2020 Global Games Market Report | October Update
newzoo.com/ globalgamesreport
Share mobile of global 2020
global game revenues
generated by consumers
(October 2020 update)
49 %
2023
Amount adjusted in October
2020 for the full -year forecast
based on impact of pandemic
+$16Bn
GAMERS
SPENDERS
$11/MONTH

© Newzoo 2020 25
Government provides support to
improve esports facilities in these 5
cities, aiming to make esports a symbol
for the cities to boost tourism
Xi‘an has doubled down on branding itself as a key esports city, introducing favorable policies for esports organizations. Xi‘an is the home of team WE and hosts several esports events, including Honor of Kings College Cup Final, LoL College Cup Final, and 2019 World Cyber Games.
Haikou is Hainan Island’s capital city, located at the north edge of the island. It is one of the top destinations for domestic and overseas tourists.Supported by local government, the WESG Grand Final was held in Haikou by Alisport in 2018. There are also many local esport events.
To boost local esports activity, Chongqing singed a deal with Alisports , resulting in Alisports relocating its business unit to the city. The sports affiliate of Alibaba Group will also work with Chongqing High -Tech Zone to build an international esports street in Jiulongpo District.
Shanghai recently held a signing session with multiple companies active in esports to put the city on the path to becoming a world esports center. The International 9 will be held in Shanghai this year. Also, esports players enjoy many benefits provided by the government,
As a tier 2 city, Zhuhai has been drawing attention from the esports industry in recent years. Demacia Cup took place in Zhuhai in 2018. Since then, Tencent has been working with the local government together to promote esports.

© Newzoo 2020
– Chinese studios & casual/core convergence
CORE →
CASUAL
CASUAL
→ CORE
COIN MASTER –MOON ACTIVE ARCHERO –HABBY COD MOBILE –ACTIVISION/
Source: 2020 Global Games Market Report

© Newzoo 2020
– differ in their content plays
27
Holiday 2020
Unconfirmed
CPU: 3 rdGen 8 -core AMD Ryzen chipset running at 3.5GHz.
RAM: 16 GB of GDDR6 448GB/s Ram.
GPU: 10 teraflops from 36 compute units running at 2.23 GHz.
Storage: 825 GB SSD running at unprecedented speeds.
Other features: 3D audio, ray tracing, 120 Hz refresh, and up to 8K
resolution.
:
CPU: 3 rdGen 8 -core AMD Ryzen chipset running at 3.8GHz. RAM:
16GB of GDDR6 Ram.
GPU: 12 teraflops from 52 compute units running at 1.8 GHz.
Storage: 1TB custom NVME SSD.
Other features: 60hz refresh, 8K support, Smart Delivery, Quick
Resume.
Yes
November 2020
Unconfirmed
Unconfirmed
Subscription Exclusives
Source: 2020 Global Games Market Report

© Newzoo 2020
– Viewership jumps factor five
2018 2019
PUBG Mobile
Garena Free Fire
Mobile Legends: Bang Bang
Arena of Valor
Total Esports Hours Watched
2018 vs. 2019 | Twitch & YouTube
The boom of these titles’
popularity in the esports area
goes beyond growth of the title
itself . For example, Mobile
Legends : Bang Bang’s non –
esports viewership actually
decreased between 2018 and
2019 , while the esports
viewership grew . YouTube’s
dominance over Twitch in the
mobile sector shows an
opportunity for the platform to
grow in the coming years .
Source: 2020 Global Esports Market Report
YoY

© Newzoo 2020
– 5G
30
USER
DATA CENTER COLLOCATION/CONNECTIVITY
MOBILE CARRIERS
5G MOBILE CHIPSETS &
TECHNOLOGIES CDN PROVIDERS CLOUD SERVICES 5G INFRASTRUCTURE
VENDORS
MOBILE DEVICE MAKERS
ACTIVELY USED
5G DEVICES END
2020
OF WORLDS’
SMARTPHONES IS
5G IN 2023
IN APAC
REGION
ACTIVELY USED
SMARTPHONES
Source: Newzoo Global Mobile Report

THE PAST, PRESENT AND FUTURE OF GAMES
GLOBAL AND LOCAL OPPORTUNITIES
peter@newzoo.com
linkedin /com/in/ warman
Co -founder Newzoo

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