Online Gaming Segmentation and Companies Mapping

Methodology

 * Worldwide, except China
 * Based on interviews of industry actors
 * Plus research in the press and on Internet

Cheap to play high quality online game
freemium (item selling) or subscription <10 euros, high quality games


 * Strategy games
 * male audience, multiplayer games, tactical games, based on competition, conquest games
 * ex: MappleSotry, Runescape
 * Non-strategic virtual worlds
 * male and female audience (girls not attracted by strategy, more into discussion)
 * CP, Second Life
 * Life simulation games
 * wide audience, more feminine for some games. Continuous game, affective link, motherhood, responsability toward the avatar
 * Equideoz, Ma bimbo
 * Pure Social games (Facebook games)
 * male and female audience, free games, browser-based, intuitive and accessible, socialization (group belonging), high viral potential (mainly carried by women). More like a traditional board game, play with friends
 * Farmville, MobWars.

TOP 3: Nexeon, Disney

Premium subscription MMORPG

 * avatar personalization (representation),
 * continuous game (active and engaged community)
 * male, hardcore
 * high monthly subscription rate
 * high entry barrier for players
 * MMORPG
 * downloadables (Wow, Aion...)

Top3: Blizzard, NCSoft, EA Mythic (3K employees each)

Difference between a) and b): player profile, business model, engagement level

Non-skill based games

 * very wide audience
 * instantaneous
 * short lifetime
 * mainly in flash,
 * solo or multiplayer
 * Ex: Spilgames, minigames, Bigfish.

Top 3: Bigfish, indiagames, zapak (all non-skill based)

Sub-categories:
 * browser based
 * downloadable

Skill based-games

 * majority of female audience
 * skill-based, dexterity (not money based like poker)
 * not based on chance
 * instantaneous games, short lifetime, easy and intuitives
 * browser based, solo or multiplayer
 * Ex: King.com, Worldwinner.com.

Top 3 (nb employees): Worldwinner, gameduel, King.com

Business models
Editors' path (freemium): aquire traffic, increase frustration, generate revenues

Traffic acquisition: online advertising (JV.com, Google...). CPC/CPLead

Generate revenues (non exhaustive):
 * subscription, micropayment or download (bigfish - shareware with time limit)
 * freemium (freemium account -Habbo-, or buying virtual goods -Farmville-), share bets (winner takes all), ads (online ads -Popcap-, in-game advertisement - more rare, internalized like EA)

Contractors:
 * Advertisement aggregators
 * Offer wall: offerpal adparlor super rewards gambit sponsorpay (free offers, online surveys, paying offers with a promotion)
 * Micropayment solutions (details of the payment methods for each country in the study) In France: phone, SMS+/MPME, prepaid card, Internet Plus, credit card, e-wallet


 * SMS the most frequent, but e-wallet increasing
 * Commission rates, aside from the payment provider cut: Paypal/credit card the best <5%. mobile 40%. prepaid cards <20%

Revenues

 * 8,4 billions expected in 2010 (+32%). Time investment gaming: 91%
 * Premium sub + pure social => more than 50% of the total of the investments

55% of hi-media (the payment provider which did the report) comes from games

Key evolutions
Acquisitions. From offline videogame EA: Playfish; media groups WB: Turbine; pure players Playdom: Akklaim..., Bigpoint: LOFD
 * Freemium is emerging
 * Social networks are increasing (90% of internet users know a social network, and 72% are members). Playdom (38 M unique visitors/month), EA/playfish (need for speed facebook summer 2010). Increased competition, newcomers face a hard time. Licenses expected to become more important
 * Internationalization (objectives: local traffic acquisition, community management, revenues generation. Solutions: 1) work with local intermediaries, 2) hire local employees, 3) open a local office.)
 * Diversification: building brands. Ex: Ankama (online shop, editions, press, tv, online video, restaurants, music)


 * The business model is evolving to freemium, and concentration of actors in progress
 * Arrival of new platforms (smartphones, TV connected to the Internet, iPad...)

Cost of the report: 2.5K€

Conferences on the subject:
 * GDC Europe
 * Mondial du JV
 * Conference Jeux en Ligne
 * Web Game Conference
 * Casual Connect Europe