Digital Games in Latin America - Proelios

2014

DIGITAL GAMES

IN LATIN AMERICA

GAME MONETIZATION USA SUMMIT SPECIAL EDITION

POWERED BY

Copyright © 2014 SuperData Research. All rights reserved. | www.superdataresearch.com | www.videogamesintelligence.com/monetization

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SuperData | Digital games market intelligence

About

Who we are.

SuperData provides market intelligence on the online, digital and mobile games industry. Every month we collect point-of-sale data directly from developers, publishers and payment providers, across six major digital game categories: social games, free-to-play MMOs, subscription-based MMOs, digital console, downloadable PC games, and mobile games. Based on the spending of 37 million unique digital gamers, we are able to provide an accurate reading of the global digital games market, identify key industry trends, offer reliable forecasts, establish market share, and evaluate marketing spend. SuperData offers insight into the next generation of interactive entertainment. Using our proprietary panel of 37 million unique digital gamers, we establish key industry benchmarks such as monthly active users, conversion rates, average revenue per paying user, and title-level revenue estimates. Combined with qualitative consumer studies, customers use our data to evaluate their performance, identify key growth opportunities, assess revenue potential, optimize their efforts, and better understand their audience’s wants and needs.

For an explanation of our terminology, please visit: http://www.superdataresearch.com/terminology For a more detailed overview and explanation of our methodology and data collection, please refer to our website: http://www.superdataresearch.com/methodology Copyright © 2014 SuperData Research. All rights reserved. | www.superdataresearch.com | www.videogamesintelligence.com/monetization

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Market data What we do.

MARKET-LEVEL DATA 10 YEARS OF DATA 200MM+ TRANSACTIONS 37MM UNIQUE PAYING USERS 50 CONTRIBUTING PUBLISHERS 450+ UNIQUE TITLES 4 KEY METRICS 6 GAMING SEGMENTS

26 COUNTRIES

country-level and regional data available regional data available only

We take a ‘big data' approach when establishing market size. By analyzing millions of transactions worldwide, we are able to gain both a macro- and micro-level grasp on how digital gamers pay and play. Our transactional dataset goes back over a decade and offers reliable payment insights that we couple with other market data such as device penetration rates, population and spending power to create our proprietary model. We report on key metrics such as monthly active users, conversion rates, average revenue per paying user by both month and year. Our estimates span across six key digital gaming segments, including mobile, social, free-to-play and pay-to-play MMO, PC and console.


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Don’t miss our Latin America data at the Summit SuperData will discuss how to win over this $4B emerging digital games market.

Digital Games in Latin America: How to Win Over an Emerging Market Stephanie Llamas, Senior Analyst at SuperData Research, will present a data-driven session exploring the areas of opportunity in Latin America for digital games and discuss how to strategically navigate this unique market. Attendees will learn which segments are showing the fastest growth, the highest spending and the most promise for each major Latin American market.

! At $4.5 billion in annual revenues, the Latin American digital games market is forecasted to grow 12% and retain almost 10% of the global market by year’s end.

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Stephanie Llamas Senior Analyst, Consumer Insights

• Hear what’s driving growth in Brazil as well as other key markets in Latin American markets • Understand how to steer clear of developmental and technological setbacks in the region • Get data on regional points of opportunity and expert advice on how to tap into this growing market


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LATIN AMERICAN MARKET Copyright © 2014 SuperData Research. All rights reserved. | www.superdataresearch.com | www.videogamesintelligence.com/monetization

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LatAm’s digital games revenue reaches $4.5B

Mobile is Latin America’s largest segment, accounting for almost half of 2014E revenues.

Latin America digital games market share by country and gaming segment, 2014E

F2P MMO

Peru

Venezuela 3%

Colombia 5%

Chile 7% Rest of Latin America* 9%

PC 7% Free-to -play MMO 17%

Argentina 15%

5%

Brazil 35%

$4.5B Mobile 43% Latin American digital games market

Latin America digital games market size

2013

Venezuela +58%

Mobile

Chile +42%

Latin American year-over-year market growth is forecasted to reach 16% in 2015E. Latin America currently accounts for 10% of the worldwide digital games market, and as spending and conversion increase across the region, that market share will rise 7% by next year. Brazil accounts for more than a third of all Latin American digital games revenue. Brazil accounts for 40% of the Latin America’s population, making it the largest country in the region. However, above average spending in countries like Mexico, Argentina and Chile are decreasing Brazil’s market share.

Social 27%

Mexico 22%

$3.6

Mexico +17%

Social Pay-to -play MMO 3%

Console 6%

Year-over-year revenue growth: Fastest growing Latin American markets by segment, 2014E

$4.5

$5.3

2014E

2015

Latin America’s top segments see the fastest growth in Mexico, Venezuela and Chile. Free-to-play MMOs will be the fastest growing segment region-wide as subscription-based MMOs lose steam and the region sees more localized servers.

*Rest of Latin America accounts for less than 1% of Latin America total and refers to Bolivia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, French Guyana, Guatemala, Guyana, Nicaragua, Panama, Paraguay, Puerto Rico, Suriname and Uruguay. **Percentages may not add up to 100% due to rounding.


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LatAm lifetime value comes in just under $90.

Almost a quarter of Latin American digital gaming spenders prefer to use mobile payments.

169 $15.63

Paying player Average monthly spend lifetime (days)* per payer (days)

$87.79

Average total spent during player lifetime

Payment preferences for digital games in Latin America, 2014E

Prepaid card 15%

eWallet 17%

Other 3%

$4.5B

Size of Latin American online games market in 2014E.

Mobile 21%

Latin American digital spenders in Latin America pay an average of $88 over the course of their lifetime in a a single game. As

digital gaming models become more ubiquitous in Latin America and low-paying players remove themselves from the spending pool, the average revenue per spender is estimated to grow over the next few years.

Bank transfer 24%

Credit card 20%

Bank transfer payments are the most popular payment method in Latin America. While preference for bank transfers,

particularly the Boleto Bancario brand, has stayed strong in the region, rising popularity of mobile payments has lowered market share for transfers. Latin America is well-positioned for mobile payments growth with over 100% mobile penetration and initiatives by local governments for mobile banking and mobile point-of-sale investments. *Playing lifetime refers to the average number of days between a player’s (paying and non-paying) first and last login of paying and non-paying users; playing lifetime refers the average number of days between a payer’s first and last purchase.


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BRAZIL Copyright © 2014 SuperData Research. All rights reserved. | www.superdataresearch.com | www.videogamesintelligence.com/monetization

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Brazil’s regional market share declines 3% in 2015E Mobile games are the largest segment in Brazil but social games are growing fastest.

$5.3

other Latin American countries and a boom in broadband and smartphone penetration allow the rest of the region to catch up.

$3.6

2013

title launches like Planetside 2 are offering Brazilians cheaper alternatives to the subscription model.

F2P MMO

High import taxes continue to handicap Brazil’s console and PC markets. Taxes on console and PC

PC Console P2P MMO

2015E

games inflate prices 60%-150% higher in Brazil than in the U.S.

+35%

Social

P2P MMO still rapidly losing players to F2P as new titles continue to launch in Brazil. An increase in

Brazil

2014E

Latin America total

$1.8

33.5%

34.8%

$1.3

34.7%

$1.6

50%

Social games are still the fastest growing segment in Brazil. Brazil boasts the third highest Facebook

participation worldwide and increasing localization has provided for growth in spending.

+25%

Mobile

YoY Growth %

Increasingly affordable smartphone options keep Brazil’s mobile growth at 25%. Discounts on

smartphones from mobile contracts, the availability of financing options for phones and cheaper Android models have boosted smartphone penetration and mobile data subscriptions in Brazil.

$4.5

Brazil digital games market share by game category 100%

Brazil’s regional market share declines to below 34% in 2015E. Higher-than average spending in

Share of market total

Brazil digital games market forecast and market share vs Latin America total, (billion, $)

2013


+15% +15% +14% -11%

2014E 9


Social & F2P MMO show massive potential in Brazil

Social games increase 35% this year while F2P MMOs will grow more than 20% by 2015E.

47.9%

Social revenue growth: Brazil vs. U.S. 34.6% 7.3%

2013

2014E

13.4% 2015E

-5.9%

Social games will grow in Brazil despite its decline in other major markets. Although more and more American social gamers are shifting their spending to mobile, the there is still massive potential for social in Brazil. Brazil boasts the third highest Facebook population worldwide and, despite the growing affordability and penetration of smartphones, mobile gaming is still a commodity for many social gamers in the country.

-20.8%

Brazil free-to-play MMO genre market share Free-to-play MMOs revenue is set to increase by 25% in 2015E. Free-to-play MMOs will be the fastestgrowing segment in Brazil next year. MOBAs have doubled their market share in Brazil. With the growing global popularity of games like League of Legends and Dota 2, MOBAs have seen their market share increase to a quarter of worldwide MMO revenue. In Brazil, MOBA revenues have more than doubled year-over-year. Localized servers and monetization structures are key to bringing a successful MOBA to the Brazilian market.

Social Sim Other*

8%

RPG

7%6%

16%

21%

22% FPS

Virtual World

5%

2013 vs. 2014E

26%

26% 29%

12%

23% MOBA

*Other refers to genres with less than 5% market share, including Sports, Sci-Fi, Racing and Card games. Copyright © 2014 SuperData Research. All rights reserved. | www.superdataresearch.com | www.videogamesintelligence.com/monetization

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EVERYTHING ELSE Copyright © 2014 SuperData Research. All rights reserved. | www.superdataresearch.com | www.videogamesintelligence.com/monetization

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Contact

How to reach us.

Senior Analyst, Consumer Insights Stephanie Llamas [email protected]

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Director, Business Development Sam Barberie [email protected]

Event Director, Game Monetization USA Summit Jamie Harding [email protected]

(646) 248 5241 www.superdataresearch.com Twitter @_SuperData

(800) 814 3459 ext. 4354 www.videogamesintelligence.com/monetization Twitter @VGIntel

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