Digital Collectible Card Games 2013 C A S U A L G A ME S S E C T O R R E P O R T

Online card games that involve card collecting,deck building, and often a competitive battle mechanic.

What are digital collectible card games?

What advantages do digital card games have over physical card games?

1. Playable on all gaming platforms: console, mobile and social gaming platforms.

2. No production costs of physical cards.

3. Digital collectible card games allow players to learn via computer tutorial, find opponents online, and play asynchronously, making learning and multiplayer options more accessible for solo players.

Digital Collectible Card Games 2013 CASUAL GAMES ASSOCIATION

digital collectible card game revenues — north america (millions)

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Digital vs. Physical Collectible Card Games - Worldwide (% of total revenue) % Digital % Physical

2008 0.4% 99.6% 2009 1.9% 98.1% 2010 4.0% 96.0% 2.0% 98.0%2011 9.0% 91.0% 4.0% 96.0%2012 15.8% 84.2% 9.7% 90.3%2013E 21.9% 78.1% 18.0% 82.0%2014E 27.1% 72.9% 25.0% 75.0%2015E 30.0% 70.0% 29.4% 70.6%

($, millions) Digital - North America Physical - North America 2010 $12.1 $595.15 $607.32011 $25.8 $618.91 $644.72012 $66.3 $617.11 $683.42013E $127.9 $582.77 $710.72014E $181.3 $543.75 $725.02015E $212.7 $511.21 $723.9

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DIGITAL COLLECTIBLE CARD GAMESGrowth of the Genre

Digital games represent an increasing percentage of the collectible card game market.

digital vs. physical collectible card games — worldwide (% of total revenue)

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Digital vs. Physical Collectible Card Games - Worldwide (% of total revenue) % Digital % Physical

2008 0.4% 99.6% 2009 1.9% 98.1% 2010 4.0% 96.0% 2.0% 98.0%2011 9.0% 91.0% 4.0% 96.0%2012 15.8% 84.2% 9.7% 90.3%2013E 21.9% 78.1% 18.0% 82.0%2014E 27.1% 72.9% 25.0% 75.0%2015E 30.0% 70.0% 29.4% 70.6%

($, millions) Digital - North America Physical - North America 2010 $12.1 $595.15 $607.32011 $25.8 $618.91 $644.72012 $66.3 $617.11 $683.42013E $127.9 $582.77 $710.72014E $181.3 $543.75 $725.02015E $212.7 $511.21 $723.9

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Digital card games revenues grow exponentially over from 2010 to 2015E.

The Players Digital card game players skew slightly younger than their physical counterparts. However, players of both game types are younger and more heavily male dominated compared to other genres.

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digital audience size, U.S. (millions)

Demographics of U.S. Digital Collectible Card Gamer

console game average player

Male age 37

Sour

ce:

ESA

201

1

overall social games

Female ages 35-44

digital collectible card games

average age 21.5Demographics (Worldwide)

Average Age Male Female Example PublisherCasino Games 37.8 years old 44.1% 55.9% DoubleDown Casino IGT/DoubleDown InteractivePoker Games 27.3 years old 71.0% 29.0% Texas HoldEm Poker ZyngaSlots Games 40.9 years old 39.6% 60.3% Slotomania Caesar’s/Playtika

Overall Social Games 35 to 44 years old Female

Female12.4%

Demographics (Worldwide) Average Age Male Female Example Publisher

Casino Games 37.8 years old 44.1% 55.9% DoubleDown Casino IGT/DoubleDown InteractivePoker Games 27.3 years old 71.0% 29.0% Texas HoldEm Poker ZyngaSlots Games 40.9 years old 39.6% 60.3% Slotomania Caesar’s/Playtika

Overall Social Games 35 to 44 years old Female

Male87.7%

physical collectible card games

average age 23.2Demographics (Worldwide)

Average Age Male Female Example PublisherCasino Games 37.8 years old 44.1% 55.9% DoubleDown Casino IGT/DoubleDown InteractivePoker Games 27.3 years old 71.0% 29.0% Texas HoldEm Poker ZyngaSlots Games 40.9 years old 39.6% 60.3% Slotomania Caesar’s/Playtika

Overall Social Games 35 to 44 years old Female

Female15.9%

Demographics (Worldwide) Average Age Male Female Example Publisher

Casino Games 37.8 years old 44.1% 55.9% DoubleDown Casino IGT/DoubleDown InteractivePoker Games 27.3 years old 71.0% 29.0% Texas HoldEm Poker ZyngaSlots Games 40.9 years old 39.6% 60.3% Slotomania Caesar’s/Playtika

Overall Social Games 35 to 44 years old Female

Male84.1%

Digital Collectible Card Games 2013 CASUAL GAMES ASSOCIATION

The Payers How Digital Collectible Card Games are MonetizedGames are generally monetized through the sale of starter decks, prebuilt decks, individual cards, booster packs, and online competition passes.

Digital collectible card games average a conversion rate to paying user between 1% and 3% like Berserk: The Catacylsm or BloodRealm and 7% to 10% for client or browser based games such Duels of the Planeswalkers.

ARPPU for digital collectible card games, U.S. 2012

Physical Digital

$26.80 $32.98

DIGITAL COLLECTIBLE CARD GAMES

Digital collectible card games average a conversion rate to paying user between 1% and 3%

Notable Developers and PublishersNewcomers dominate online and mobile platforms: In the absence of traditional IP holders, small innovative card game publishers have managed to build a loyal following.

popular online card games*(percentage, U.S.)

Percentage (%)Clash of the Dragons 12.9%Battle Cards 10.6%Tyrant 9.9%Titans vs. Olympians 8.9%Castlewars 8.1%Arena 9 6.4%Elements 6.1%Kongai 5.9%Kard Combat 5.7%Heroes Blade 5.5%FMA Battle 4.2%God�eld 4.1%Mytheria 4.0%The Necronomicon 4.0%Eredan iTCG 3.7%

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Clash of the Dragons

Battle Cards

Tyrant

Titans vs. Olympians

Castlewars

Arena 9

Elements

Kongai

Kard Combat

Heroes Blade

FMA Battle

Godfield

Mytheria

The Necronomicon

Eredan iTCG

5th Planet GamesClash of the Dragons Fantasy, digital collectible card game. Available on Facebook and Kongregate.

Fight My Monster!Fight My Monster! Digital trading card game for pre-teens.

SynapseTyrant Sci-fi, digital MMO card game. Available on Facebook and Kongregate.

*Based on consumer survey of digital collectible card game players as to which games they have played in the last 6 months.

Digital Collectible Card Games 2013 CASUAL GAMES ASSOCIATION

SOCIAL GAMES

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Nook

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collectible card game device usage*(percentage, U.S.)

PC and iPhone are the most popular devices among card gamers as the iPad trails behind the major consoles.

DIGITAL COLLECTIBLE CARD GAMES

RISE OF MOBILE COLLECTIBLE CARD GAMESMobile collectible card games exploded in popularity in Asia in 2010 and 2011 and continue to top the charts on GREE and DeNA. Notable examples are DeNA’s Rage of Bahamut and Fantasica, as well as Konami’s Dragon Collection.

*Based on consumer survey of digital collectible card game players as to which devices they use to play digital card games.

ARPPU Average Revenue per Paying User.

ARPU Average Revenue per User.

CONVERSION RATE The number or percentage of users that have shifted from nonpaying to a paying status.

DAILY ACTIVE USERS (DAU) The number of unique users that have used an application at least once over the course of a day.

DIGITAL COLLECTIBLE CARD GAMES Online card games that involve card collecting, deck building, and often a competitive battle mechanic. Games are generally monetized through the sale of prebuilt decks, boosters, and online competition passes.

MONTHLY ACTIVE USERS (MAU) The number of unique users that have used an application at least once over the course of a month.

Key Terminology

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