Global Digital Gaming Market (2018 - 2023) (1)

1
Global Digital Gaming Market2018 - 2023

• March 2019

2
Table of Contents

• Chapter 2
• Introduction
• 2.1. Market Definitions
• 2.2. Different business models
• 2.3. Distribution channel analysis Big four
  companies

• Chapter 3
• Global Digital Gaming Market Overview
• 3.1. Market overview
• Global market revenue (USD Bn)
• Global projected market revenue (USD Bn)
• Geography-wise market revenue (USD Bn)
• 3.2.Global trends

• Chapter 1
• Executive Summary
• 1.1. Market scope and segmentation
• 1.2. Key questions answered in this study
• 1.3. Executive summary

3
Table of Contents

• Chapter 4
• Global Digital Gaming Market Based on Region
• 4.1. North America
• Overview
• Drivers
• Challenges
• Trends
• 4.2. Asia-Pacific
• Overview
• Drivers
• Challenges
• Trends

• Chapter 4 (Cont.)
• Global Digital Gaming Market Based on Region
• 4.3. Latin America
• Overview
• Drivers
• Challenges
• Trends
• 4.4. Europe Middle East and Africa (EMEA)
• Overview
• Drivers
• Challenges
• Trends

• Chapter 5
• Global Digital Gaming Market Based on Platform
• 5.1. Global digital gaming market overview
  Based on platform
• 5.2. Global mobile games market
• Drivers
• Challenges
• 5.3. Global console games market
• Drivers
• Challenges
• 5.4. Global PC games market
• Drivers
• Challenges

4
Table of Contents

• Chapter 6
• Major Platforms Overview By Region
• 6.1. Major platforms North America
• Revenue contribution
• Key highlights
• 6.2. Major platforms Asia-Pacific
• Revenue contribution
• Key highlights
• 6.3. Major platforms Latin America
• Revenue contribution
• Key highlights
• 6.4. Major platforms EMEA
• Revenue contribution
• Key highlights

• Chapter 7
• Huge Opportunity Zones
• 7.1. eSports
• 7.2.Blockchain gaming
• 7.3.Cloud gaming
• 7.4.Virtual reality, augmented reality, and mixed
  reality

• Chapter 8
• Competitive Landscape
• 9.1. Activision Blizzard
• Company snapshot
• Key numbers
• Major game titles
• Initiatives
• Growth strategy
• 9.2. Electronic Arts
• Company snapshot
• Key numbers
• Major game titles
• Initiatives
• Growth strategy

5
Table of Contents

• Chapter 8
• Competitive Landscape
• 9.3. Take-Two Interactive
• Company snapshot
• Key numbers
• Major game titles
• Initiatives
• Growth strategy
• 9.4. Ubisoft
• Company snapshot
• Key numbers
• Major game titles
• Initiatives
• Growth strategy

• Competitive Landscape
• 9.5. Zynga
• Company snapshot
• Key numbers
• Major game titles
• Initiatives
• Growth strategy
• 9.6. Tencent
• Company snapshot
• Key numbers
• Major game titles
• Initiatives
• Growth strategy

• Competitive Landscape
• 9.7. GungHo Online
• Company snapshot
• Key numbers
• Major game titles
• Initiatives
• Growth strategy
• 9.8. Nintendo
• Company snapshot
• Key numbers
• Major game titles
• Initiatives
• Growth strategy

6
Table of Contents

• Competitive Landscape
• 9.9. Sony Corporation
• Company snapshot
• Key numbers
• Major game titles
• Initiatives
• Growth strategy
• 9.10. Microsoft Corporation
• Company snapshot
• Key numbers
• Major game titles
• Initiatives
• Growth strategy

• Major Players Foraying into the Gaming Market
• Google
• Facebook
• Amazon

• Chapter 9
• Gaming Start-ups and Disruptors
• 10.1. Chopup
• 10.2. Omnidrone
• 10.3. Piranha Games
• 10.4. Nazara Technologies
• 10.5. Witching Hour Studios
• 10.6. Touchten Games
• 10.7. Steel Wool Studios
• 10.8. Playsnak
• 10.9. Flying Mollusk
• 10.10. Lucid Sight
• 10.11. Ironhide Game Studio
• 10.12. NGD Studios

7
Table of Contents

• Gaming Start-ups and Disruptors
• 10.1. Chopup
• 10.2. Omnidrone
• 10.3. Piranha Games
• 10.4. Nazara Technologies
• 10.5. Witching Hour Studios
• 10.6. Touchten Games
• 10.7. Steel Wool Studios
• 10.8. Playsnak
• 10.9. Flying Mollusk
• 10.10. Lucid Sight
• 10.11. Ironhide Game Studio
• 10.12. NGD Studios
• 10.13. Google and Facebook

• Chapter 10
• Conclusion
• 10.1.Conclusion

• Chapter 11
• Appendix
• 11.1. List of tables
• 11.2. Research methodology
• 11.3. Assumptions
• 11.4. About Research On Global Markets

8
Executive Summary I

• Global Digital Gaming Market

Global Digital Gaming Market Revenue (USD Bn)

• Overview
• The global digital gaming market is one of the
  most thriving sectors in the global media and
  entertainment industry.
• The market is forecast to experience significant
  expansion, at a CAGR of XX, and will reach USD
  XX Bn by 2023
• The mobile gaming segment is the largest, having
  generated USD XX Bn in 2017, followed by console
  and PC games
• The overall market trend shows a shift from brick
  and mortar stores towards more digital purchases
• Drivers
• Technological advancements and shift of network
  from 2G to 4G will lead to an increase in
  digitally-downloadable games, and other live
  games of the MMO and eSports genres
• The increasing prominence of cross-platform games
  and 3D games is boosting the global digital
  gaming market
• The number of smartphone users are expanding at a
  significant rate, which in turn is boosting the
  mobile gaming market globally
• The proliferation of smartphones and tablet PCs
  is giving a considerable thrust to the global
  gaming market

• Trends
• Game development companies are increasingly
  considering digital distribution as the preferred
  distribution channel as compared to physical
  distribution channels
• Digital distribution allows gamers to purchase
  and download digital content for different gaming
  platforms
• Increasing adoption of eSports, especially in the
  Asia-Pacific region, has bolstered growth of the
  gaming industry
• Currently, eSports is one of the areas in which
  gaming companies are willing to make significant
  investments, since the eSports markets revenue
  increased by more than four times between 2013
  and 2016, and could almost triple by 2021
• Challenges
• The investment crunch is one of the factors
  posing a challenge to the mobile gaming industry
• In the absence of funds, mobile gaming-based
  start-ups have limited access to infrastructure
  and talent
• The biggest problem that the gaming industry
  faces is the need for creation of new content to
  keep existing audiences engaged
• Securing users constantly is essential for gaming
  companies to ensure that their earnings do not
  dip
• Gaming experts say that the industry has reached
  a position where almost all possible genres and
  methods of gameplay have been explored

Source Netscribes Analysis
9
Executive Summary II

• Segmentation Based on Region
• The digital gaming market is segmented based on
  region North America, Asia-Pacific, Latin
  America, Europe, the Middle East and Africa
• APAC is forecast to contribute XX of the total
  revenue of the digital gaming market in 2023
• APAC is expected to witness the highest growth
  rate through the forecast period of 2018-2023
• Most of APACs growth is to come from China, a
  region where mobile gaming is becoming
  increasingly popular
• Mobile gaming is the dominant form of gaming in
  the Latin American region
• The mature market of North America is expected to
  see console games as the largest segment

• Segmentation Based on Platform
• The digital gaming market is further segmented
  based on platforms PCs, mobiles, and consoles
• The mobile gaming segment was the largest, with a
  market share of XX in 2017, and will be
  expanding at the highest CAGR of 23.1
  (2018-2023) among the three
• The market is driven by revenue from
  advertisements, affordability of mobile phones in
  emerging markets, proliferation of the Internet,
  and low entry barrier costs in gaming
• The console gaming segment is expected to be the
  second-largest one in the gaming market
• It will be driven by the launch of
  next-generation consoles and expanded digital
  purchases
• Research On Global Markets analysis predicts a
  considerable shift from PC gaming, to mobile and
  console gaming
• The market share of PC gaming has witnessed a
  fall over the years as the market is restrained
  by factors like piracy, high cost of gaming PCs,
  etc.

• Competitive Landscape
• In the competitive landscape, ten major gaming
  companies have been profiled
• Activision Blizzard
• Electronic Arts
• Take Two Interactive
• Ubisoft
• Zynga
• Tencent
• Nintendo
• GungHo Online
• Sony Corporation
• Microsoft Corporation
• The prominent trends among the top companies are
  adoption of eSports, Virtual Reality (VR), and
  digital distribution of games
• The growth strategies of the companies include
  organic expansion to develop older games and
  improve their relationship with customers
• Also, inorganic expansion by way of acquisitions
  help companies venture into segments like mobile
  games, and technologies like AR, VR, etc.
• A snapshot of eight new-age gaming start-ups -
  Chopup, Omnidrone, Piranha Games, Nazara
  Technologies, Witching Hour Studios, Touchten
  Games, Steel Wool Studios and Playsnak, Flying
  Mollusk, Lucid Sight, Ironhide Game Studio, and
  NGD Studios - is given, along with their funding
  information, initiatives, and recently-released
  games

10
Global Market Trends

• Digital Distribution
• Delivering games digitally, instead of
  distributing the same via retail/physical
  channels, is the most prominent trend now
• In digital distribution, the barriers to entry
  are significantly low
• Big gaming companies have created their own
  platforms for digital distribution,
  likes Steam, Origin, and Xbox Live Marketplace,
  using which, gamers purchase and download digital
  content for different gaming platforms

• Change in Gaming Devices
• Another key trend in the industry is the
  evolution of gaming devices
• Mobile games are quickly gaining popularity,
  since more gamers are turning to their
  smartphones and tablets for entertainment,
  thereby facilitating digital distribution
• Entry barriers in the mobile gaming industry are
  lower than other platforms
• As a result, major companies are investing in
  mobile games. In 2016, Activision Blizzard
  completed the acquisition of King Digital
  Entertainment to expand on its opportunities in
  mobile gaming

• Use of Communication Software and Virtual
  Credits
• Games are now being equipped with messaging and
  video applications to allow smooth communication
  in between games, across players
• Developers are currently focusing on monetizing
  content, by enabling virtual credit systems for
  the sale of downloadable digital content within
  games, or 'in-game purchases' like buying new
  avatars, and purchase of extra levels, among
  others

11
Global Market Trends

• Adoption of eSports
• eSports is a form of competitive video gaming
  where players compete with each other in an
  online or live environment for a large number of
  viewers
• The most common genres of video game associated
  with eSports are real-time strategy, combat, first
  -person shooter (FPS), and multiplayer online
  battle arena (MOBA)
• Currently, eSports is one of the major areas that
  gaming companies are willing to invest in, since
  revenue from this market grew by more than four
  times between 2013 and 2016, and might almost
  triple by 2021

• Adoption of AR and VR Technologies
• AR and VR are new but essential trends in the
  gaming industry, and it is actively being made
  available to customers at affordable prices
• VR is more about having a great gaming
  experience rather than just playing a game
• This leaves room for speculation with regard to
  how successfully VR will be able to convert hours
  of dedicated game-playing into a more immersive
  gaming experiences
• On the other hand, AR technology is easily
  implementable, and its success is visible from
  the popularity of Pokémon Go and Night Terrors

• Women and Non-Millennial Gamers
• There has been an enormous rise in the number of
  female gamers. Since 2010, female gamers have
  made up around half of all global gamers 
• In the U.S. - a leading gaming region - the
  average age of gamers is 37
• Also, 31 of the video game-playing population
  comprises adult women, while only 18 of the
  gaming population are boys of ages below 18

12
Distribution Channel Analysis
Distribution Channel Analysis Four Major
Companies

• With the dawn of the broadband Internet era, the
  landscape of game distribution channels has
  changed over the years
• Major gaming companies like EA, Take-Two,
  Activision Blizzard and Ubisoft are increasingly
  shifting towards the digital distribution
  channels, from the retail distribution channels
• Clearly, digital distribution is a common growth
  strategy for top players
• It allows companies to make their products
  available to consumers at minimal costs, thereby,
  drastically lowering the total cost of developing
  video games
• Video game producers are focusing more on story
  and content development, without worrying about
  incurring massive costs on distribution channel
  intermediaries
• Gaming companies are also launching titles which
  were previously available only on PCs and gaming
  consoles
• Games such as FIFA, Madden NFL, The Sims,
  SimCity, and Star Wars are available across
  mobile platforms and even as free, downloadable
  versions for PCs
• In addition to developers and publishers, digital
  distribution benefits consumers by enabling them
  to buy/play the games online without having to
  purchase it through any retailer (online/BM)
• They can download games directly through websites
  like Steam, Origin, and others

• Revenue from the retail distribution of games for
  the four major companies has declined, and
  digital distribution channels have gained
  prominence. In 2015, revenue from both channels
  of distribution were almost equal, while in 2017,
  it became clear that the future of the market was
  in games downloaded over the Internet, and not so
  much in games bought via retailers

Source Annual reports of the stated companies
13
Global Digital Gaming Overview By Platforms
Market share of various platforms (2015, 2018,
and 2023)

• Mobile
• Mobile games was the largest segment of the 2018
  global digital gaming market, accounting for XX
  of the revenue
• This segment is expected to expand at a CAGR of
  XX during the 2018-2023 period, and is the
  fastest-growing segment, globally
• By 2023, the mobile gaming segment is forecasted
  to hold on to largest market share

• Console
• Console games came after the mobile gaming
  segment, with a revenue share of XX in 2018,
  generating USD XX Bn
• By 2023, revenue from the console gaming market
  is forecast to reach USD XX Bn

• PC
• The PC games segment is next, but is expected to
  experience a negative growth rate during the
  forecast period (CAGR of XX)
• Research On Global Markets analysis says that PC
  gaming is likely to become the least preferable
  form of gaming in the years to come. The market
  revenue from PC gaming is forecast to come down
  to USD XX Bn

2015
2018
2023
Source Netscribes Analysis
14
Global Console Games Market Overview
Console games - global revenue (USD Bn)

• The first generation of console games were
  introduced in the 1970s and had several hardware
  shortcomings like lack of an audio port, etc.
• Consoles have come a long way since then and have
  become much more than a simple gaming device.
• High-end devices like Xbox, PlayStations, and Wii
  Switch have 3D graphics, Internet connectivity,
  online playing options, and movie-watching
  features.
• Despite high purchase costs, and increasing
  competition from the mobiles segment, launch of
  next-generation consoles and expanded digital
  purchases on the same will drive the market
  forward.

Source Netscribes Analysis
15
Global Console Games Market Overview

• Drivers
• Launch of new generation console
• The global console market is influenced
  significantly by the launch of next-generation
  gaming consoles
• The major vendors in this segment are Sony,
  Microsoft, and Nintendo. The last generation of
  consoles were released in 2013, and since then,
  the global console games market has seen a
  decline, since the market has reached its
  saturation point
• Gamers want upgrades in console technologies, and
  they look for enhanced audio-visual experiences
  while gaming through consoles
• Thus, the launch of next generation consoles will
  propel the market
• Increase in micro transactions/digital purchases
  on consoles
• Mirroring the global gaming market trends,
  increased digital purchases on consoles will
  drive the growth of console games
• Advanced technology and features
• Use of advanced technology in consoles acts as a
  significant driver for console games
• New consoles come with better RAM, processing
  units, motion sensors, and Internet connectivity
• Live video streaming via Netflix, YouTube, etc.,
  watching DVDs/ Blu-rays, online game playing,
  browsing the Internet, among others, make these
  the preferred consoles, as opposed to traditional
  ones

• Challenges
• Competition from mobile and social gaming
• People are shifting to mobile gaming for its ease
  of access and affordable pricing. Since 2007,
  mobile apps have become more popular
• Meanwhile, serious gamers are shifting to
  PC-based games. All these put together, have
  resulted in the contraction of the market size
  for console games
• High cost
• High initial investment on consoles (which has no
  alternative use apart from gaming/ browsing)
  creates a problem with regard to penetration in
  developing economies like that of APAC, where
  disposable income is less in comparison to
  developed regions like North America and Europe
• Since gaming/ browsing can be done using
  PCs/mobile devices, consumers do not usually
  invest in a dedicated gaming device like a
  console
• Inability to adopt eSports
• eSports is an emerging trend in the gaming
  industry. Compared to PC gaming, consoles have
  limited penetration in the eSports market
• Console games have a small share in popular
  eSports genres like fighting and sports, and in
  that little share, the emphasis is more on
  one-on-one gaming instead of MMO. This acts as a
  significant deterrent for the growth of eSports
  on consoles

16
Major Platforms Overview North America
Revenue contribution based on platforms (North
America)

• Key highlights major platforms (North America)
• In North America, even though mobile gaming is
  becoming increasingly popular, consoles are still
  the biggest segment
• During 2018-2023, the console gaming segment is
  expected to expand at a CAGR of XX
• Due to higher purchasing power of the people (the
  average U.S. consumer spends over USD 2,000
  annually on entertainment and media), compared to
  developing regions like MEA or APAC (consumers in
  Nigeria and India spend less than USD 50 annually
  on entertainment and media), people here have
  higher interest in investing in console games
• Also, the last generation of consoles was
  introduced in 2013. In 2018, console games
  contributed a major share of around XX to the
  gaming industry in the North American region.
  Thus, when the next generation of consoles come
  around in 2018-19, the demand for these games is
  sure to soar again
• Unlike APAC and MEA, where mobile games is the
  dominating segment, it is the second largest
  segment in North America, after consoles
• Gamers in North America are willing to spend more
  money on mobile games, compared to their Asia
  Pacific counterparts, as the American
  install-to-purchase (engagement and purchase
  rate) engagement on mobiles games is almost XX
  higher than in APAC
• North Americas PC gaming revenue is expected to
  expand at a stable CAGR of XX through 2018-2023
• Steam, which is one of the most significant
  digital PC games portals, sells most of its games
  in North America, followed by Europe and Asia.
  League of Legends, Hearthstone Heroes of
  Warcraft, Minecraft, and Overwatch are PC games
  that people play the most in the U.S.

2018 USD XX Bn
2023 USD XX Bn
Source Netscribes Analysis
17
Opportunity Areas Overview

• Gaming has moved forward from the conventional 2D
  Arcade and TV video games, to advanced forms
• Gaming companies are foraying into the domains of
  eSports, Blockchain gaming, cloud gaming, and VR
  and AR in gaming
• A growing global audience and a top-tier talent
  pool is pushing gaming companies to make
  investments in these gaming domains.

eSports is drawing large audiences in recent
times, which in turn has opened up a plethora of
opportunities for media, gaming, and
entertainment companies
Blockchain gaming addresses all the problems that
the gaming industry has been facing for years
Cloud gaming enables gamers to play high-end
games on low-end machines
Players are more involved in VR-based gaming, as
it has the potential to create social experiences
1
2
3
4
18
Virtual Reality, Augmented Reality, and Mixed
Reality

• Overview
• VR had been thought to possess great potential as
  it could create social experiences while gaming
• Players would be more involved in a VR based
  gaming. VR gaming makes players feel as if they
  belong to a scene rather than demonstrating
  things. The simulation in VR gaming allows
  players to see things from different angles and
  perspectives
• After cross analyzation of eSports engagement and
  VR buying intention, it was found that there was
  a strong correlation between them - near about
  63 of all VR buyers were into eSports
• Mark Liu, the chief executive of the worlds
  largest chipmaker, Taiwan Semiconductor
  Manufacturing, has said that there is great
  demand from game console processors and gaming
  graphics processing units for VR applications. He
  also said that in the coming years, VR will be
  embedded in peoples daily lives, thus changing
  the way people communicate and interact, and
  would increase productivity as well
• The concept of mixed reality in gaming is also on
  the rise. Mixed reality games enable gamers to
  experience the real world with virtual objects.
  The increasing adoption of wearable devices by
  gamers is creating avenues for further
  developments in this domain
• Also, an increase in the demand for connected
  devices, together with advancements in processing
  technology and sensors, are driving the AR, VR,
  and mixed reality market
• Niantic came up with the worlds first
  edge-enhanced mixed reality multiplayer
  experience with its Codename Neon. It boasts of
  a fully multi-tenant control plane that supports
  zero-touch provisioning of edge cloud resources
  as close to the players as possible

• Major Challenge Pace of Adoption
• VR seems to be stuck in its early-adopter phase,
  with only the deeply-pocketed and most committed
  users getting involved. The main factor blocking
  the mainstream adoption of VR games seems to be
  the dearth of compelling content
• The only good triple-A titles compatible with
  PSVR are Resident Evil and Gran Turismo Sport
• The key takeaways from the annual survey
  conducted by the Game Developers Conference
  stated that there is a declining interest in VR.
  It is a bit of a whiplash to the VR industry as a
  whole
• The vastly exciting technology, which was thought
  it would break through and dominate everything
  back in 2015 and 2016, could not garner much
  attention. In 2017, it witnessed a slow rate of
  adoption among consumers, which amounted to a big
  reality check for VR gaming
• Industry experts state that it is the interest in
  VR that is dwindling. The number of developers
  working on AR games is in a steady state, and
  those who are already there in the business of
  creating VR games do not expect it to be a
  long-lasting market
• The CEO of the studio CCP Games, Hilmar Veigar
  Petursson, said that their company does not see
  much of a future for VR gaming. They expected VR
  to be two to three times as big as it was. Hilmar
  said that their data showed that VR-based gaming
  adoption was slow even among enthusiasts. With
  hardware that is difficult to set up, absurd PC
  requirements, and nearly no AAA titles to attract
  the curious into the world of VR, it is
  increasingly unlikely that the gaming industry
  will see a significant shift to VR any time soon

19
Virtual Reality, Augmented Reality, and Mixed
Reality Regional Insights
Europe
North America

• Research conducted by a global leader in games
  and esports analytics at the end of the year 2016
  on the European and North American countries,
  stated that 11 of the online population across
  the countries in Europe (aged 10-65) intended to
  buy a Virtual Reality (VR) product in the next
  six months
• The research claimed that the buying intention
  would be highest in Spain and Italy with
  consumers in Belgium and the Netherlands staying
  most skeptical about the new technology
• It was also observed that 7 of this group, or
  about 4 million people, were non-gamers. This
  was proof that VR technologys reach was already
  extending beyond gaming

• In the U.S., the intent to buy is a bit higher
  than that of the European aggregate, with 12 of
  the online population planning to buy a VR
  product in the coming six months

LATAM

• Latin Americas new video game federation has
  developers from eleven countries working together
  to give a boost to the gaming market in the
  region
• The Argentinian studio, OKAM, formed in 2010,
  came up with its first virtual reality title Ship
  Ahoy!, a multiplayer nautical battler for HTC
  Vive and Oculus Rift, on January 10, 2018
• The stakes for VR gaming is high in this region
  with developers finally planning on making their
  moves.

Asia-Pacific (APAC)

• According to the report by a global leader in
  games and eSports analytics, spending on
  augmented reality (AR) and VR will be humongous
  for the Asia-Pacific region
• The availability of new VR headsets such as
  Mirage Solo from Lenovo and Oculus Go from
  Facebook are expected to drive the adoption, as
  well as content spending in 2018, and beyond
• These headsets eliminate the need for pairing
  with consoles or PCs, which used to drive the
  costs higher for VR/AR experiences
• The launch of the AR SDK platforms from both
  Apple and Google are also expected to drive
  spending on application developments and games
  for mobile platforms
• In 2018, VR games had the highest market share
  out of all the applications of VR

20
Company Overview Tencent

• Year of establishment 1998
• Headquarters Shenzhen, China
• Key people Ma Huateng (Chairman)
• Employee strength (2017) 44,796
• Industry Video games
• Ticker HKG 0700
• Website www.tencent.com
• Major game titles
• PUBG
• Arena of Valor
• Honour of Kings
• Ring of Elysium
• Wangzhe Rongyao

• Growth strategy
• Tencent Games plans to capture at least a third
  of Indias gaming user base in two years by
  making a humongous investment of USD 200 Mn
• The company presented its new platform, Games
  Without Borders (GWB), built by the Tencent
  Institute of Games, to gather innovative ideas
  from game developers around the world. Through
  this platform, Tencent aims to foster, promote,
  and protect outstanding games
• Tencent introduced 26 new games in 2018. The
  company is focusing on its gaming business to
  drive growth
• Major locations
• Asia, primarily Hong Kong and China
• North America
• Europe
• Key numbers (2017)
• Net revenue (FY ending Dec. 2017) USD 35.6 Bn
• Net revenue (until June 2018) USD 11.1 Bn
• Net margin () 33
• Gross margin () 49.2
• RoA () 15.1
• RoE () 33.2

• Major initiatives
• In 2018, Tencent invested USD 474 Mn in Shanda
  Games. This move will bolster Tencents lead in
  the local video gaming market
• In 2018, the company folded yet another video
  gaming company into its empire. Square Enix
  signed a letter of intent to enter into a
  strategic alliance with Tencent
• Tencent, which partners with Epic Games to sell
  in China, announced a new set of rules for
  streaming games in the country in February 2019
• In May 2018, Tencent signed an MoU with Britain
  to work closely with its cultural industries,
  thereby deepening the co-operation between China
  and Britain and setting the stage for Tencents
  further international expansion
• Recent initiatives
• In November 2018, Tencent Games announced a
  collaboration with a Blockchain eSports platform
  named SLIVER.tv to create a live eSports channel
  that would feature streamers from Method, FaZe
  Clan, and NRG. The channel would be powered by
  Theta rewards, and the users would be able to buy
  in-game upgrades and items using the Theta tokens

21
Major Companies Foraying into the Gaming Market

• Google plans to unveil a new gaming hardware at
  the Game Developers Conference in 2019. The
  service will enable gamers to stream
  console-quality games on a cheaper device
• The company is likely to offer a Netflix for
  games subscription service. The three-month demo
  of Project Stream, which came to an end in
  January 2019, enabled users to play Assassins
  Creed Odyssey on their Google Chrome browsers on
  Mac, Windows, Linux, and Chrome
• However, it is believed that Project Stream was
  just part of Googles broader gaming efforts,
  Project Yeti
• The plan for Project Yeti is to run
  high-performance titles, on its own machines, and
  then stream them to the devices owned by the
  gamers
• It has been said that Google had been beta
  testing the full Project Yeti streaming service
  internally. Reports say that the service will
  also include an in-game chat function
• The Project Yeti console, which is likely to be a
  streaming-only device, is presumed to be cheaper
  than dedicated gaming consoles, such as Xbox One
  and PlayStation

• Facebook had released its first batch of Instant
  Games back in 2016 in a closed beta version.
  These games could be easily played without the
  need for any additional downloads from the app
  store
• Recently, the company revealed that the daily
  monthly active players had increased by more than
  three times in 2018, and that there were over
  6,000 games with over 20 Bn game sessions being
  played
• Facebook reported that it had experienced rapid
  growth since March 2018, after the company opened
  up the platform to all the developers
• The company is aggressively expanding its gaming
  system in multiple directions. Recently, it added
  Play buttons, which directly link to Instant
  Games, to more than 270,000 gaming groups that
  serve over 90 Mn active users

• Amazon, which operates the largest video game
  streaming service in the world with its Twitch,
  is getting serious about video games
• The company wants to take the video game
  publishing industry to the cloud completely
• News reports say that Amazon is working on
  building a Netflix-like service for gaming. The
  new service from Amazon is likely to allow
  players to stream games without having to
  download the individual titles

22
Start-up Overview Disruptor

• Overview
• Description Flying Mollusk is a small
  independent studio which aims to create
  entertaining and impactful games by making use of
  emerging technologies
• Founded in - 2013
• Headquarters Los Angeles, California
• Website - www.flyingmollusk.com
• Industry - PC gaming

• Key Initiatives
• Flying Mollusks psychological thriller,
  Nevermind, makes use of Affectivas emotion
  recognition software to sense a gamers facial
  expressions to detect signs of emotional
  distress. Neverminds use of biofeedback makes
  the game more challenging and surreal

• Overview
• Description Lucid Sight primarily focuses on
  frontier gaming and its supporting technologies.
  Their games are secured by the Ethereum
  Blockchain
• Founded in - 2015
• Number of employees 23
• Headquarters Los Angeles, California
• Website - www.lucidsight.com
• Industry PC and console gaming

• Funding Information
• Number of funding rounds 3
• Total funded amount (USD Mn) 10.5
• Number of investors 6
• Nature of funding VC and HNI
• Investor description BreakawayGrowth Fund, Salem
  Partners, Rana Capital Partners
• Key Initiatives
• The VR gaming start-up released a VR advertising
  SDK to help other gaming companies effectively
  monetize their VR games. It was founded to help
  gaming companies focus on developing engaging,
  free, high-quality VR games

Key People
Key People
Erin Reynolds Founder
Randy Saaf CEO
Octavio Herrera COO
Michael Annetta Lead VR Designer
23
Appendix

• Research Methodology

Reporting The analyst then creates a report with
the support of his findings and analysis, with
help from an editorial team.
Problem identification The analyst identifies
key questions that he/she would like to address
from the market study. He/she describes the major
challenges that would help clients understanding
the industry, globally, or for a specific region.
Defining objectives The analyst then defines the
research objectives and methodologies which form
the basis of the research.
Information gathering The next stage of research
is conducted utilizing secondary and primary
sources of information. They conduct an in-depth
study of the global market, identifying and
understanding its key stakeholders, drivers,
trends, challenges, and opportunities, covering
major regions such as North America, Latin
America, Europe, Asia-Pacific, and the Middle
East and Africa. Primary research complements the
secondary research, as and when required, as it
helps gain insights from the industries directly,
by communicating with senior executives, key
opinion leaders, and independent consultants who
are experts in their industries, or specific
industry sectors.
Analysis The qualitative and quantitative
findings from the previous stages are brought
together by specialists to perform a rigorous
analysis. The regional market trends, drivers,
and opportunities obtained during the analysis
are compared with regional economic indicators,
sector growth rates, population index, etc., to
ensure consistency of the data. After consistency
is ensured, these historical and present
indicators help to understand how the market will
perform in the future. The proprietary
forecasting model factors in all these indicators
to predict the future market accurately.
24
Appendix

• About Research on Global Markets

Owned by Netscribes, Research on Global Markets
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the companys vast experience in market research
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actionable insights to clients, and enables
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implementation.
25
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