webinar on digital gaming market & investment trend with insight alpha

WELCOME TO WEBINARON

DIGITAL GAMING MARKET & INVESTMENT TREND

Breaking New Ground: How Innovation in Digital Gaming Market will Drive the Next Wave of Growth

http://mergeralpha.com/webinar_details.php?id=MzA=

KABIR AHMAD

Research, Consultancy, and Training Professional

•Digital Gaming•Gamificaiton•Wearable Technology•Cloud Technology •Big Data•Digital Business •Mobile OTT Business

WEBINAR AGENDA

Digital Gaming Market Overview: Technology, Platform, Market Value, Business Model

Industry Transition: Middleware, Wearable

Investment Trend in Gaming: Deal, VC, M&A,

Value vs. Volume Region and Investment Consideration

Opportunity Sectors in Gaming and Key Investment Consideration

ARCADE GAME

80 & 90’s Decade

COMPUTER GAME

FEATURE PHONE GAME

CONSOLE GAME

Game is Alive It’s Just the Platform, Technology and

Consumption PatternNew Era of Digital Gaming

SMARTPHONE

TABLET

ONLINE

SOCIAL AND LOCATION

SOCIAL CASINO

USER GENERATED CONTENT

CONVERGENCE AND CLOUD

GAMIFICATION

WEARABLE

DIGITAL GAME

A digital game is an interactive program for one or more players, meant to provide entertainment at the least, and quite possibly more. An adaptation of traditional game systems,with rules, player representation, and environment managed through electronic

means

TREND

PLATFORM / TECHNOLOGY CONSUMPTION / MONETIZATION

o Virtual Reality o Augmented Realityo Gamificationo Multiplayer

Online/Social & Localo UGC o Cloud & HTML 5o Mobile Messaging

Platform

o Freemiumo Free to Play & In-game

Microtransaction o In-game Advertisingo Advergaming

COMMUNAL GAME PLAY TREND & OTT DELIVERY

2014 + • Paying user 1.07%• ARPU 13 times• ARPPU 10 times

DIGITAL GAME MARKET VALUE

o 60% Software Market o 40% Hardware Market

Geography:o Asia – 65%o Europe - 15%o US – 12%o ROW – 8%

Emerging Marketo Latin America o South East Asia o Middle East

2014 2015 20170

20

40

60

80

100

120

$ Billion

23.6% CAGR

PLATFORM REVENUE SOURCE

o Mobile (including Tablet) – 60%

o PC – 24%o Console – 12%o Wearable – 4%

o In-Game Transaction – 40-50%

o Download – 20 – 30% o Adverts – 10 – 20%o Data Transmission – 2-

5%

GAME SECTOR

DEAL & VALUE

VIDEO GAME M&A

IPO BY COUNTRY

SECTOR WISE M&A TREND

VC TREND

OPPORTUNITY CHART

VALUE VS. VOLUME REGION

VALUE VS. VOLUME REGION

Value Driven Volume DrivenNature Large Long Term

NicheMass Market Growth

Platform Niche Console, MMO Online

Mobile, Social and Middleware

Users thousands to tens of millions

thousands to hundreds of millions

ARPU $-$$$ (High) ¢ - $$ (Low)Costs $ millions to tens of

millions$ tens of thousands to millions

Operating profit negative to 20%+ negative to 70%+Growth rates negative to <10% negative to 100%+Business model unit sales,

subscriptions, virtual goods

unit sales, free, virtual goods, ads

KEY CONSIDERATION

• Portfolio company M&A to major games

consolidators

• Early to late stage with focus on cross-platform

• Investment in social/casual strategic roll-ups

• Follow-on investments in portfolio companies

pivoting from mobile to cross-platform mobile-social

to middleware and wearable

• Selective growth equity investment in online/mobile

tech and gamification strategic roll-ups

SELECTING PROFITABLE SECTOR

o Multiscreen endeavor especially covering mobile, tablet & social platform, and wearable. o It is not the console; it’s mobile that will dominate living roomo The middleware technology market will grow rapidly in coming years including consumer adoption. Most likely gamification and game technology software business will end up as B2B SaaS model generating volume driven business. It’s the perfect time of investing out in such endeavoro Wearable gaming like VR will boom but need to be careful

o Real money gaming such as social casino gaming is a growing trend in terms of consumer adoption. Considering the legality of particular market, the sector is good for short term investment under portfolio strategyo Investors need to consider value vs. volume driven market. Value driven market will be better for small term investment expecting better return in shorter timeframe whereas large investment should pour into volume driven emerging markets like Brazil, Russia, China, and some sectors for Korea & Japan.o Investors need to consider the revenue generating business models such as freemium and free-to-play with virtual goods.

Email: kabirahmad2008@gmail.comSkype: kabirahmad2008

LinkedIn: http://www.linkedin.com/in/kabirahmad