200 likes | 216 Views
pwc. Interactive Games: global perspectives & local insights. Matthew Liebmann. Today’s agenda. The global interactive games industry: 2004-2008 The good, the bad and the undeniable. pwc. Part 1 The global interactive games industry: 2004-2008. Global Interactive Games.
E N D
pwc Interactive Games:global perspectives & local insights Matthew Liebmann
Today’s agenda The global interactive games industry: 2004-2008 The good, the bad and the undeniable
pwc Part 1 The global interactive games industry:2004-2008
Global Interactive Games • Key drivers of global industry growth will be: • next generation consoles • mobile phone handset upgrades • broadband penetration • changing attitudes leading to broader customer demographics
Regional performance and market share 2004 2008
Console Games • Next-gen consoles will boost industry growth, but consoles will lose share to wireless and online revenue streams. • Multifunctional consoles will be a blessing and a curse for developers and publishers. • Consoles appeal to the masses, boosting mass retailers’ share of total sales.
PC Games • PC games revenue peaked in 1999, and have declined ever since. • Share of total games revenue will fall from 16% in 2004 to 6% in 2008, as both units and average prices fall. • As consoles become more advanced and accessible, PCs will lose their appeal.
Online Gaming • Online gaming has raised the average age of gamers, and expanded demographic reach. • 43% of frequent gamers have already played online. • Online gaming provides one of broadband’s first true killer applications. • Online gaming extends the life of games, creating additional revenue streams.
Online Gaming • Between 2004-08, the number of global online game subscribers will grow from 20 mill to 142 mill (65% CAGR). • Average monthly online revenue per subscriber will fall between 2004-08. • Canada currently has the highest penetration of online gamers amongst broadband subscribers (26%) but by 2008, Asia-Pac will dominate (49%).
Wireless Gaming • Asia-Pacific and EMEA exceed the US due to more than twice as many mobile phones and more progressed 3G licenses. • Over time, average monthly spend will decline.
Wireless Gaming • Growth will be driven by: • upgraded infrastructure • handset upgrades • recognisable brands and titles. • Wireless games tap into the ‘handset personalisation’ phenomenon.
pwc Part 2 The good, the bad and the undeniable
The Good • Online gaming is the first legitimate ‘killer app’ for broadband • Gamers are demonstrating a willingness to stay with you later in life • Interactive games have proven to be entertainment for all occasions
The Good • New ways to deliver content enables you to meet your clients for the first time • Improved margins can be achieved by eliminating distribution elements • Advertising: a new revenue frontier
The Bad • One wallet but myriad choices • PCs and consoles have more and more uses • Mass retailers’ power is on the rise around the world
The Bad • Misperceptions about the industry are holding back some support • Piracy: what’s yours is everyone’s • Hollywood is here, and it’s not all good
The Undeniable • You must use your power for good, not evil! • You will never be in complete control again – accept it and embrace the future • Just because you embrace the future, doesn’t mean you should promote it
The Undeniable The Undeniable • More release windows = more money. • Be quick, or you will be the dead
Key messages Key messages • Focus on gamers and encourage them to stay for life • Continue working as an industry to communicate your legitimacy • Identify what makes you unique and work it into your strategy • Offset margin pressures by maximising efficiencies • Embrace new technology and ride the wave to the future
pwc Interactive Games:global perspectives & local insights Matthew Liebmann