2017 FREE GLOBAL GAMES MARKET REPORT4TRENDS, INSIGHTS, AND PROJECTIONS TOWARD 20202017 GLOBAL GAMESMARKET REPORTFREE VERSION2017 FREE GLOBAL GAMES MARKET REPORT5TABLE OF CONTENTS1. KEY GLOBAL TRENDS 62. THE GLOBAL GAMES MARKET 103. REGIONAL OVERVIEW 1362017 FREE GLOBAL GAMES MARKET REPORTThis year is a landmark in the history of the games market, with revenues exceeding the $100 billion mark to total $109 billion. Five years ago, when Newzoo launched its first Global Games Market Report, global revenues amounted to approximately $70 billion. A growth of 56% in five years illustrates how game companies have not only pioneered new ways of engaging and entertaining consumers, but have also led the way in innovating business models to suit the digital age. The future outlook for games has never been better but requires a new way of looking at the market. Most games now provide consumers with entertainment on three different levels: playing, viewing, and creating. Game companies are quickly evolving into all-round entertainment companies, pushing engagement time up dramatically and securing gamings position as the worlds favorite pastime. Traditional boundaries between games, media, telecom, and sports industries are disappearing and sparking new partnerships and M&A activity across the globe. PETER WARMANNewzoo CEO & Co-founder“The phase that the games market is now entering is redefining how we talk about our industry, audience, and future. From an industry perspective, the terms game developer and publisher no longer fit with the games-as-a-service model and the broadening of games as a business. From a consumer perspective, we need to replace gamers with game enthusiasts, as a large part of the fast-growing viewing audience does not play the games it watches. Consumers who no longer have time to play and master games now stay engaged as viewers through esports. Games would not be games if we would not face another year of innovative change.”NEWZOOS 2017 GLOBAL GAMES MARKET REPORTFOREWORD Continuous game behavior tracking of 10 million PC gamers across 40 countries. Device usage data from more than a billion mobile devices worldwide, including China. Android and iOS monetization metrics based on tracking of 30+ million mobile gamers. iOS and Google Play app store revenue and download data on 50+ countries. Primary consumer research and trend data in 28 countries involving more than 80,000 invite-only respondents.NEWZOOS EXPANDING DATA WAREHOUSENewzoos Global Games Market Reports and the data accessible in our online dashboard are powered by our proprietary Global Games Market Forecast Model. This predictive analytics model combines insights and data feeds from an ever-increasing number of sources, including: Quarterly game revenue data from more than 100 public and non-public companies. Continuous tracking of viewer data from streaming platforms. More than 100 local, regional, and global games-related reports published by third parties. More than 50 (socio-)economic KPIs for the 130 top countries in the world by population. NEWZOO 2017 GET THE FULL 110-PAGE REPORT: NEWZOO.COM/GLOBAL-GAMES-MARKET-REPORT2017 FREE GLOBAL GAMES MARKET REPORT7KEY GLOBAL TRENDS1. 82017 FREE GLOBAL GAMES MARKET REPORTOVERALL MARKET TRENDSGAMES ARE RAPIDLY BECOMING THE WORLDS FAVORITE PASTIME. Consumers are spending more time than ever on games, and this is especially true for the millennial generation. The reason for this is that games now cater to a much wider variety of interests. This includes lean-forward (gaming intensely or casually), lean-back (viewing content created by peers or provided by the pro-fessional gaming scene), creating unique content and sharing (on-demand and live streaming). Viewing professional or amateur game video content is bringing back millions of lapsed gamers who no longer have the time to play but whose passion is reignited by viewing other players and worldwide championships. The term “gamers” is becoming increasingly obsolete, as it fails to capture the variety of ways that games entertain consumers. “Game enthusiasts” would be a more encapsulating term. 1. WITH MORE TIME SPENT ON GAMES, MONEY FOLLOWS.2. A COMMUNITY-CENTRIC APPROACH IS KEY TO SUSTAINABLE SUCCESS. 3. GAMES ARE RAPIDLY BECOMING THE WORLDS FAVORITE PASTIME. 2012 2013 2014 2015 2016 2017 2018 2019 2020$70.57 $76.48 $84.72 $91.91 $101.06 $108.90 $115.83 $122.72 $128.46GLOBAL GAMES MARKET REVENUE DEVELOPMENT 2012-2020 NEWZOO 2017 GET THE FULL 110-PAGE REPORT: NEWZOO.COM/GLOBAL-GAMES-MARKET-REPORT92017 FREE GLOBAL GAMES MARKET REPORTGAME COMPANIES ARE BECOMING GLOBAL ENTERTAINMENT COMPANIES. As game IP turns increasingly into entertainment franchises, game companies are rethinking their strategic position in the broader entertainment industry. Game companies are the champions of interactive entertainment and are out