AUTOMOTIVE
BEAUTY
COMMERCIAL TECHNOLOGY
CONSUMER TECHNOLOGY
ENTERTAINMENT
FASHION
FOOD & BEVERAGE
FOODSERVICE
HOME
OFFICE SUPPLIES
SOFTWARE
SPORTS
TOYS
WIRELESS
Insights into the Freemium Games Market Proprietary and Confidential
Copyright 2012. The NPD Group, Inc. All Rights Reserved. This presentation is Proprietary and Confidential and may not be disclosed in any manner, in whole or in part, to any third party without the express written consent of NPD.
Insights into the
Freemium Games Market April 2012April 2012April 2012April 2012
MOCK REPORT
FICTIONAL DATA SHOWN
Proprietary and ConfidentialInsights into the Freemium Games Market
2
Table of Contents
Introduction Pg. 3 – 5
Key Findings Pg. 6 – 13
Freemium Definitions Pg. 14 – 15
Incidence of Free Gaming Awareness & Usage Pg. 16 – 30
Paying for Freemium Pg. 31 – 40
Freemium – Impact on Spending Pg. 41 – 44
Appendix Pg. 45 – 54
Industry Insightsby Anita Frazier
MOCK REPORT FICTIONAL DATA SHOWN
AUTOMOTIVE
BEAUTY
COMMERCIAL TECHNOLOGY
CONSUMER TECHNOLOGY
ENTERTAINMENT
FASHION
FOOD & BEVERAGE
FOODSERVICE
HOME
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SPORTS
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Insights into the Freemium Games Market Proprietary and Confidential
Introduction
MOCK REPORT
FICTIONAL DATA SHOWN
Proprietary and ConfidentialInsights into the Freemium Games Market
4
Background & Methodology
Study Objective� The options available to consumers who engage in gaming are exploding in terms of how they obtain games and how and on which
devices they can play, including the growing impact of Freemium digital games.
This study will focus on Freemium games, defined as digital games that are free of charge to play, though some may offeradvanced functionality or new content that the player has to pay for to extend or enhance their gaming experience. Players canpay for these advanced features, functionality or new content with real money or with “virtual money” or “credits” which some gamesrequire the player to purchase.
This study is designed to provide insight, from a consumer’s perspective, on how influential Freemium games are to their gaming habits,and how they potentially impact their purchases of paid gaming products.
Methodology
� Data was collected via an online survey from February 27 – March 7th, 2012.
� The survey was completed by n=6416 individuals age 2 to 99. Responses for 2 to 15 year olds were captured via surrogate reporting. Incases where surrogate reporting was used, mothers were asked to bring the child to the computer to answer survey questions. Thoseunder 6 answered with parental assistance while older children were asked to complete the survey on their own behalf but may have beenassisted by parents when necessary.
� In order to qualify as a gamer, respondents had to report that they currently, personally play video games on at least one of thesystems/devices listed in the appendix.
� Final survey data was weighted to represent the U.S. population of individuals age 2 to 99.
� All findings are statistically tested at the 95% confidence level. Unless noted otherwise, the analysis is based on statistical differences inthe data.
� Bases of n=100 or higher are considered by NPD to be the most reliable. Bases of n=51-100 are denoted with an asterisk (*) and shouldbe interpreted with caution; Bases of n=30-50 are noted with a double-asterisk (**) and should be for directional use only.
Other Notes
� Unless noted otherwise, all numbers in charts are percentages.
MOCK REPORT FICTIONAL DATA SHOWN
Proprietary and ConfidentialInsights into the Freemium Games Market
5
Insights Into The Freemium Games Market
An Industry Perspective by Anita Frazier
Anita FrazierGames Industry Analyst
ADDITIONAL CONTENT HERE
MOCK REPORT FICTIONAL DATA SHOWN
AUTOMOTIVE
BEAUTY
COMMERCIAL TECHNOLOGY
CONSUMER TECHNOLOGY
ENTERTAINMENT
FASHION
FOOD & BEVERAGE
FOODSERVICE
HOME
OFFICE SUPPLIES
SOFTWARE
SPORTS
TOYS
WIRELESS
Insights into the Freemium Games Market Proprietary and Confidential
Key Findings
MOCK REPORT
FICTIONAL DATA SHOWN
Proprietary and ConfidentialKids & Gaming 2011Insights into the Freemium Games Market
7
Key Findings
Free Gaming: Incidence, Awareness & Usage
ADDITIONAL CONTENT HERE
MOCK REPORT FICTIONAL DATA SHOWN
Proprietary and ConfidentialKids & Gaming 2011Insights into the Freemium Games Market
8
Key Findings
Free Gaming: Incidence, Awareness & Usage (Continued)
MOCK REPORT FICTIONAL DATA SHOWN
ADDITIONAL CONTENT HERE
Proprietary and ConfidentialKids & Gaming 2011Insights into the Freemium Games Market
9
Key Findings
Free Gaming: Incidence, Awareness & Usage (Continued)
ADDITIONAL CONTENT HERE
MOCK REPORT FICTIONAL DATA SHOWN
Proprietary and ConfidentialKids & Gaming 2011Insights into the Freemium Games Market
10
Key Findings
Free Gaming: Incidence, Awareness & Usage (Continued)
MOCK REPORT FICTIONAL DATA SHOWN
ADDITIONAL CONTENT HERE
Proprietary and ConfidentialKids & Gaming 2011Insights into the Freemium Games Market
11
Key Findings
Paying for Freemium
ADDITIONAL CONTENT HERE
MOCK REPORT FICTIONAL DATA SHOWN
Proprietary and ConfidentialKids & Gaming 2011Insights into the Freemium Games Market
12
Key Findings
Paying for Freemium (Continued)
ADDITIONAL CONTENT HERE
MOCK REPORT FICTIONAL DATA SHOWN
Proprietary and ConfidentialKids & Gaming 2011Insights into the Freemium Games Market
13
Key Findings
Freemium Impact on Spending
ADDITIONAL CONTENT HERE
MOCK REPORT FICTIONAL DATA SHOWN
AUTOMOTIVE
BEAUTY
COMMERCIAL TECHNOLOGY
CONSUMER TECHNOLOGY
ENTERTAINMENT
FASHION
FOOD & BEVERAGE
FOODSERVICE
HOME
OFFICE SUPPLIES
SOFTWARE
SPORTS
TOYS
WIRELESS
Insights into the Freemium Games Market Proprietary and Confidential
Freemium Definitions
MOCK REPORT
FICTIONAL DATA SHOWN
Proprietary and ConfidentialInsights into the Freemium Games Market
Free-to-play games are digital games that are free of charge to play, though some
may offer advanced features, functionality or new content that you have to pay for to
extend or enhance the game. You can pay for these advanced features, functionality
or new content with real money, or virtual money, which some games require you to
purchase.
Types of FreemiumMOCK REPORT FICTIONAL DATA SHOWN
AUTOMOTIVE
BEAUTY
COMMERCIAL TECHNOLOGY
CONSUMER TECHNOLOGY
ENTERTAINMENT
FASHION
FOOD & BEVERAGE
FOODSERVICE
HOME
OFFICE SUPPLIES
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WIRELESS
Insights into the Freemium Games Market Proprietary and Confidential
Incidence of Free Gaming Awareness & Usage
MOCK REPORT
FICTIONAL DATA SHOWN
Proprietary and ConfidentialInsights into the Freemium Games Market
X% of the US population age 2+ currently plays Games
X% of gamers are aware of Freemium
X% of those aware have never played
X% of those who have played no longer play
X% of gamers currently play a Freemium game
Key FindingsAdditional Details Shown Here
17
X% of the U.S. population 2+ currently plays a Freemium game
• ADDITIONAL CONTENT HERE
MOCK REPORT FICTIONAL DATA SHOWN
Proprietary and ConfidentialInsights into the Freemium Games Market
Awareness & Usage of Freemium Games by Age (All %’s Based to Current Gamers)
90
80
70
60
50
40
30
20
10
85
75
65
55
45
35
25
15
5
Total Male Female Under 6 6 to 12 13 to 17 18 to 34 35 to 54 55 orolder
Aware Currently Play
� ADDITIONAL CONTENT HERE
18Base: 4,404 Total; 2,099 Male; 2,305 Female; 283 Under 6; 586 Age 6-12; 401 Age 13-17; 1104 Age 18-34; 1184 Age 35-54, 846 Age 55+,
672 iPhone, 784 Android, 361 iPad, 269 Other Tablet
Q6. Have you ever seen or heard of free-to-play games? (Select one); Q9. And which type of Freemium games do you currently play? (Select all that apply)
10
15
20
25
5
10
15
20
Android
iPad
iPhone
Other Tablet
Aware Currently Play
� ADDITIONAL CONTENT HERE.
Awareness & Usage of Freemium Games by Mobile Platform (All %’s Based to Current Gamers)
Key FindingsAdditional Details Shown Here
MOCK REPORT FICTIONAL DATA SHOWN
Proprietary and ConfidentialInsights into the Freemium Games Market
19
Awareness of Types of Freemium Games (Among those Aware n=2,859)
Q7. Which of the following types of free-to-play games have you ever seen or heard of? (Select all that apply)
No Ads X%
No Upgrades
X%
Upgrade Content / Features
X%
Base: 2,859 Seen or heard of Freemium games
Ads X%
No Upgrades
X%
Pay to Remove
AdsX%
Upgrade Content / Features
X%
Key FindingsAdditional Details Shown Here
MOCK REPORT FICTIONAL DATA SHOWN
� ADDITIONAL CONTENT HERE
Proprietary and ConfidentialInsights into the Freemium Games Market
20
5
10
15
20
25Console
No Ads - No Upgrades
No Ads - Has Upgrades
Ads - No Upgrades
Ads - Upgrade to Ad Free
Ads - Upgrade Features /Content
Awareness of Types of Freemium Games - By Device Type Used
Q7. Which of the following types of free-to-play games have you ever seen or heard of? (Select all that apply)
Base: 2,859 Total; 1,714 Console; 740 Portable, 1,801 Mobile; 2,269 Computer
5
10
15
20
25Portable
5
10
15
20
25Mobile
� ADDITIONAL CONTENT
HERE
Key FindingsAdditional Details Shown Here
MOCK REPORT FICTIONAL DATA SHOWN
5
10
15
20
25Computer
Proprietary and ConfidentialInsights into the Freemium Games Market
� ADDITIONAL CONTENT HERE
21
Ever Played Freemium Games (Among those Aware n=2,859)
Q8. Which of these types of free-to-play games, if any, have you ever played? (Select all that apply)
Ever Played
X%
Ads –upgrade content/ features
X%
Ads –upgrade to
no Ad
X%
Ads – no upgrade
X%
No Ad –upgrade
X%
No Ad/No upgrade
X%
Mobile Devices: Overall Aware But Never Played: X%
Android: X%
iPad: X%
iPhone: X%
Other Tablet: X%
� ADDITIONAL CONTENT HERE
= Statistically significant at 90% confidence level relative to counterpoint.
Base: 2,859 Seen or heard of Freemium games; 473 iPhone; 579 Android; 270 iPad; 213 Other Tablet
Key FindingsAdditional Details Shown Here
MOCK REPORT FICTIONAL DATA SHOWN
Proprietary and ConfidentialInsights into the Freemium Games Market
22
Current Usage of Types of Freemium Games (Among those Ever Played n=2,437)
Q9. And which type of Freemium games do you currently play? (Select all that apply)
Currently Play
X%
Ads –upgrade content/ features
X%
Ads –upgrade to no Ad
X%
Ads – no upgrade
X%
No Ad –upgrade
X%
No Ad/No upgrade
X%
Lapsed Players
X%
Base: 2,437 Seen or heard of Freemium games; 429 iPhone; 532 Android; 249 iPad; 182 Other Tablet
Key FindingsAdditional Details Shown Here
MOCK REPORT FICTIONAL DATA SHOWN
� ADDITIONAL CONTENT HERE
Proprietary and ConfidentialInsights into the Freemium Games Market
23
Current Usage of Types of Freemium Games - by Gender & Age(Among those who Have Ever Played)
Q9. And which type of Freemium games do you currently play? (Select all that apply)
Base: 2,437 Total; 1,127 Male; 1,310 Female; 154 Under 6; 289 Age 6-12; 230 Age 13-17; 625 Age 18-34; 671 Age 35-54, 469 Age 55+
= Statistically significant at 95% CI relative to counterpoint. Where more than 2 comparisons, statistical differences only flagged when hire than 3 or more counterpoints
Total Males Females Under 6 6 to 12 13 to 17 18 to 34 35 to 44 55+
Currently Use Any X% X% X% X% X% X% X% X% X%
No Ads - No Upgrades X% X% X% X% X% X% X% X% X%
No Ads - Option to Upgrade X% X% X% X% X% X% X% X% X%
Ads - No Upgrades X% X% X% X% X% X% X% X% X%
Ads - Option to Upgrade to Ad-free X% X% X% X% X% X% X% X% X%
Ads - Option to Upgrade Features/Content X% X% X% X% X% X% X% X% X%
Key FindingsAdditional Details Shown Here
MOCK REPORT FICTIONAL DATA SHOWN
� ADDITIONAL CONTENT HERE
Proprietary and ConfidentialInsights into the Freemium Games Market
Lapsed Players(% Among those who’ve Ever Played Freemium Games)
45
40
35
30
25
20
15
10
5
Total Male Female Under 6 6 to 12 13 to 17 18 to 34 35 to 54 55 or older
24Base: 2437 Total; 1127 Male; 1310 Female; 154 Under 6; 289 Age 6-12; 230 Age 13-17; 625 Age 18-34; 671 Age 35-54, 469 Age 55+
Q9. And which type of Freemium games do you currently play? (Select all that apply)
= Statistically significant at 95% CI relative to counterpoint. Where more than 2 comparisons, statistical differences only flagged when hire than 3 or more counterpoints
Key FindingsAdditional Details Shown Here
MOCK REPORT FICTIONAL DATA SHOWN
� ADDITIONAL CONTENT HERE
Proprietary and ConfidentialInsights into the Freemium Games Market
25
Top 5 Genres Played – by Freemium Genre Type(Among those who Currently Play Freemium Games)
Q20. Which type of games are you playing for each type of free-to-play game? (Select all that apply)
No Ads – No Upgrades No Ads – Option to Upgrade Ads – No Upgrades
Ads – Option for Ad-free Ads – Option to Upgrade
Genre #1 X%
Genre #2 X%
Genre #3 X%
Genre #4 X%
Genre #5 X%
Genre #1 X%
Genre #2 X%
Genre #3 X%
Genre #4 X%
Genre #5 X%
Genre #1 X%
Genre #2 X%
Genre #3 X%
Genre #4 X%
Genre #5 X%
Genre #1 X%
Genre #2 X%
Genre #3 X%
Genre #4 X%
Genre #5 X%
Genre #1 X%
Genre #2 X%
Genre #3 X%
Genre #4 X%
Genre #5 X%
Base: 766 No Ads-No Upgrades; 564 No Ads – Option to Upgrade, 796 Ads – No Upgrades, 804 Ads – Option for Ad-free, 510 Ads – Option to Upgrade
Key FindingsAdditional Details Shown Here
MOCK REPORT FICTIONAL DATA SHOWN
� ADDITIONAL CONTENT HERE
Proprietary and ConfidentialInsights into the Freemium Games Market
5
5
5
5
5
10
10
10
10
10
15
15
15
15
15
20
20
20
20
20
25
25
25
25
25
No Ads - No Upgrades
No Ads - Option toUpgrade
Ads - No Upgrades
Ads - Option to Upgradeto Ad-free
Ads - Options toUpgrade
Features/Content
Less than three months 3-6 months 7-11 months 1-2 years More than 2 years
26
Length of Use of Freemium Games(Among those who Currently Play [Game Type])
Q16. How long has it been since the first time you played each type of free-to-play games? (Select one)
Avg. Years Since First Played.
X
X
X
X
X
Key FindingsAdditional Details Shown Here
MOCK REPORT FICTIONAL DATA SHOWN
� ADDITIONAL CONTENT HERE
Proprietary and ConfidentialInsights into the Freemium Games Market
27
Frequency of Play(Among those who Currently Play [Game Type])
Q18. How frequently do you play each type of free-to-play games?
5
5
5
5
5
10
10
10
10
10
15
15
15
15
15
20
20
20
20
20
25
25
25
25
25
30
30
30
30
30
No Ads - NoUpgrades
No Ads -Option toUpgrade
Ads - NoUpgrades
Ads - Optionto Upgrade to
Ad-free
Ads - Optionsto UpgradeFeatures/Content
<1 hr 1-2 hrs 3-5 hrs 6-10 hrs 11+ hrs Never stop
Hours Played Before Abandonment(Among those who Currently Play [Game Type])
X hrs
X hrs
X hrs
X hrs
X hrs
Q18b.How many hours … would you say you … play … before you stop playing … completely?
Base: 766 No Ads-No Upgrades; 564 No Ads – Option to Upgrade, 796 Ads – No Upgrades, 804 Ads – Option for Ad-free, 510 Ads – Option to Upgrade
Avg. Days/Wk.
X
X
X
X
X
Avg. Hrs./Use
Key FindingsAdditional Details Shown Here
MOCK REPORT FICTIONAL DATA SHOWN
� ADDITIONAL CONTENT HERE
27
24
30
28
24
38
36
38
37
41
17
19
17
15
15
18
21
16
20
20
No Ads - NoUpgrades
No Ads -Option toUpgrade
Ads - NoUpgrades
Ads - Optionto Upgrade to
Ad-free
Ads - Optionsto UpgradeFeatures/Content
Daily A few times/wk About 1x/wk Less often than 1x/wk
Proprietary and ConfidentialInsights into the Freemium Games Market
28
Time Spent Playing in Typical Week(Among those who Currently Play [Game Type])
Q19. How much time do you spend playing free-to-play games in a typical week? (Select one)
5
5
5
5
5
10
10
10
10
10
15
15
15
15
15
20
20
20
20
20
25
25
25
25
25
30
30
30
30
30
35
35
35
35
35
No Ads - No Upgrades
No Ads - Option toUpgrade
Ads - No Upgrades
Ads - Option to Upgradeto Ad-free
Ads - Options toUpgrade
Features/Content
<1 hour 1-2 hours 3-4 hours 5-6 hours 7-8 hours 9-10 hours More than 10
AVG HOURS PER WK
X hrs
X hrs
X hrs
X hrs
X hrs
Base: 766 No Ads-No Upgrades; 564 No Ads – Option to Upgrade, 796 Ads – No Upgrades, 804 Ads – Option for Ad-free, 510 Ads – Option to Upgrade
Key FindingsAdditional Details Shown Here
MOCK REPORT FICTIONAL DATA SHOWN
� ADDITIONAL CONTENT HERE
Proprietary and ConfidentialInsights into the Freemium Games Market 29
Average Freemium Game Usage Metrics –SUMMARY CHART
Total Males Females Under 6 6 to 12 13 to 17 18 to 34 35 to 44 55+
Avg. Length of Use of Free to Play Games (# of years)
No Ads - No Upgrades X X X X X X X X X
No Ads - Option to Upgrade X X X X X X X X X
Ads - No Upgrades X X X X X X X X X
Ads - Option to Upgrade Ad-free X X X X X X X X X
Ads - Option to Upgrade Features/Content X X X X X X X X X
Avg. Frequency of Playing Free to Play Games (# of days/week)
No Ads - No Upgrades X X X X X X X X X
No Ads - Option to Upgrade X X X X X X X X X
Ads - No Upgrades X X X X X X X X X
Ads - Option to Upgrade Ad-free X X X X X X X X X
Ads - Option to Upgrade Features/Content X X X X X X X X X
Avg. Hours Played at a Time (# of hours/use)
No Ads - No Upgrades X X X X X X X X X
No Ads - Option to Upgrade X X X X X X X X X
Ads - No Upgrades X X X X X X X X X
Ads - Option to Upgrade Ad-free X X X X X X X X X
Ads - Option to Upgrade Features/Content X X X X X X X X X
Avg. Time Spent Playing in Typical Week (# of hours/week)
No Ads - No Upgrades X X X X X X X X X
No Ads - Option to Upgrade X X X X X X X X X
Ads - No Upgrades X X X X X X X X X
Ads - Option to Upgrade Ad-free X X X X X X X X X
Ads - Option to Upgrade Features/Content X X X X X X X X X
* Indicates small base size (51-100), ** indicates very small base size (30-50)
MOCK REPORT FICTIONAL DATA SHOWN
Proprietary and ConfidentialInsights into the Freemium Games Market
30
# of New Freemium Games in Avg. Month(Among those who Currently Play [Game Type])
Q19B. How many new free-to-play games would you say you try out in an average month for
each type of Freemium game?
5
5
5
5
5
10
10
10
10
10
15
15
15
15
15
20
20
20
20
20
25
25
25
25
25
No Ads - NoUpgrades
No Ads -Option toUpgrade
Ads - NoUpgrades
Ads - Optionto Upgrade to
Ad-free
Ads - Optionsto UpgradeFeatures/Content
0 1 to 3 4 to 6 7 to 9 10 or more
5
5
5
5
5
10
10
10
10
10
15
15
15
15
15
20
20
20
20
20
25
25
25
25
25
No Ads - NoUpgrades
No Ads -Option toUpgrade
Ads - NoUpgrades
Ads - Optionto Upgrade to
Ad-free
Ads - Optionsto UpgradeFeatures/Content
Completely satisfied Somewhat satisfiedNeutral Somewhat dissatisfied
Overall Gaming Satisfaction(Among those who Currently Play [Game Type])
Q20B. How satisfied with the overall gaming experience would you say you are with the games
you play for each type of free-to-play game?
AVG
X/mo.
X/mo.
X/mo.
X/mo.
X/mo.
Base: 766 No Ads-No Upgrades; 564 No Ads – Option to Upgrade, 796 Ads – No Upgrades, 804 Ads – Option for Ad-free, 510 Ads – Option to Upgrade
Key FindingsAdditional Details Shown Here
MOCK REPORT FICTIONAL DATA SHOWN
� ADDITIONAL CONTENT HERE
AUTOMOTIVE
BEAUTY
COMMERCIAL TECHNOLOGY
CONSUMER TECHNOLOGY
ENTERTAINMENT
FASHION
FOOD & BEVERAGE
FOODSERVICE
HOME
OFFICE SUPPLIES
SOFTWARE
SPORTS
TOYS
WIRELESS
Insights into the Freemium Games Market Proprietary and Confidential
Paying for Freemium
MOCK REPORT
FICTIONAL DATA SHOWN
Proprietary and ConfidentialInsights into the Freemium Games Market
X% of the US Population age 2+ currently plays Games
X% of gamers are aware of Freemium
X% of those aware have never played
X% of those who have played no longer play
X% of gamers currently play a Freemium game
X% of Freemium gamers have paid for an upgrade (~ X% of gamers)
32
Approximately X% of the U.S. population has paid for an upgrade in a Freemium game
Key FindingsAdditional Details Shown Here
MOCK REPORT FICTIONAL DATA SHOWN
Proprietary and ConfidentialInsights into the Freemium Games Market
50
50
50
50
50
50
No ads - option to upgrade
Ads - option to upgrade tofree
Ads - upgradefeatures/content
Yes No
33
Q11. Have you ever paid money (either real money or virtual money/credits) to extend or enhance each of the following types of free-to-play games? (Select all that apply)
Ever Paid for Upgrade(Among those who’ve Played [Game Type])
� ADDITIONAL CONTENT HERE
Base: 564 No Ads – Option to Upgrade, 804 Ads – Option for Ad-free, 510 Ads – Option to Upgrade
50 50 50 50 50 50 50 50 50
50 50 50 50 50 50 50 50 50
Total Male FemaleUnder 6 6 to 12 13 to17
18 to34
35 to54
55 orolderPaid = Green Never Paid = Blue
= Statistically significant relative to counterpoint. Where more than 2 comparisons, statistical differences only flagged when hire than 3 or more counterpoints
Key FindingsAdditional Details Shown Here
MOCK REPORT FICTIONAL DATA SHOWN
Proprietary and ConfidentialInsights into the Freemium Games Market
50
50
50
50
50
50
50
50
Android
iPad
iPhone
Other Tablet
Yes No
34
Base: 283 iPhone, 331 Android, 163 iPad, 105 Other tablets
= Statistically significant at 90% confidence level relative to counterpoint.
Ever Paid for an Upgrade(Among those who Currently Play [Game Type])
Q11. Have you ever paid money (either real money or virtual money/credits) to extend or enhance each of the following types of free-to-play games? (Select all that apply)
Key FindingsAdditional Details Shown Here
MOCK REPORT FICTIONAL DATA SHOWN
� ADDITIONAL CONTENT HERE
Proprietary and ConfidentialInsights into the Freemium Games Market
35
15 15 15 15 15 15
10 10 10 10 10 10
5 5 5 5 5 5
Almost immediatelyafter start
Within 1 week Within 1 month Within 3 months Within 1 year More than 1 year afterstart
No ads - option to upgrade Ads - option to upgrade to free Ads - upgrade features/content
Duration of Use Prior to Paid Upgrade(Among those who’ve Paid to Upgrade)
Q17. Thinking about the last game you spent money on within each of the following game types, how long did you play the game before you paid money (either real money or virtual
money/credits) to extend or enhance the free-to-play games?
Base: 252 No Ads – Option to Upgrade, 233 Ads – Option for Ad-free, 199 Ads – Option to Upgrade
Avg. Months Till First Paid.
X
Key FindingsAdditional Details Shown Here
MOCK REPORT FICTIONAL DATA SHOWN
� ADDITIONAL CONTENT HERE
X
X
Proprietary and ConfidentialInsights into the Freemium Games Market
36Base: 516 Paid to extend or enhance free-to-play games; 257-Males, 259-Females, 27***-Under 6, 78-6 to 12, 64-13 to 17, 141-18 to 34, 135-35 to 54, 71*-55 or older
Additional Game Content Purchased(Among those who’ve Paid to Upgrade)
Q15B. Which of the following types of additional game content, if any, have you ever paid for in a free-to-play game?
Males Females Under 6 6 to 12 13 to 17 18 to 34 35 to 54 55+
X X X X X X X X
X X X X X X X X
X X X X X X X X
X X X X X X X X
X X X X X X X X
X X X X X X X X
X X X X X X X X
X X X X X X X X
X X X X X X X X
X X X X X X X X
X X X X X X X X
55%
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
Access to additional levels
Ad free version
Animals for pets or group/team
Characters for group/team
Clothing/Armor
In-game money/Currency/Gold
Music/Tracks
Themes/Icons/Wallpaper
Transport/Vehicles/Animals for transport
Weapons/Tools
None of the above
* Indicates small base size (51-100), *** indicates insufficient base size (<30)
= Statistically significant relative to counterpoint. Where more than 2 comparisons, statistical differences only flagged when hire than 3 or more counterpoints
Key FindingsAdditional Details Shown Here
MOCK REPORT FICTIONAL DATA SHOWN
� ADDITIONAL CONTENT HERE
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37
65%
60%
55%
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
Don't like viewing advertisements
It unlocked additional levels/extra features
My kids/others were asking for it
Paid content doesn't have the bugs the free…
Paid content makes the game more fun/engaging
Prefer faster speed to download
Prefer more challenging play
Price was reasonable for all the extra content
The game had Social Networking features and…
To remain competitive with the people I play…
Want access to higher levels of the game
Wanted a specific in game item
Others
Reasons Decided to Pay for Freemium Games(Among those who’ve Paid to Upgrade)
Q15. What are the main reasons you decided to pay for an upgrade or additional content from a free-to-play game?
Base: 516 Paid to extend or enhance Freemium games; 257-Males, 259-Females, 27***-Under 6, 78*-6 to 12, 64-13 to 17, 141-18 to 34, 135-35 to 54, 71*-55 or older
X X X X X X X X
X X X X X X X X
X X X X X X X X
X X X X X X X X
X X X X X X X X
X X X X X X X X
X X X X X X X X
X X X X X X X X
X X X X X X X X
X X X X X X X X
X X X X X X X X
X X X X X X X X
X X X X X X X X
Males Females Under 6 6 to 12 13 to 17 18 to 34 35 to 54 55+
* Indicates small base size (51-100), *** indicates insufficient base size (<30)= Statistically significant relative to counterpoint. Where more than 2 comparisons, statistical differences only flagged when hire than 3 or more counterpoints
Key FindingsAdditional Details Shown Here
MOCK REPORT FICTIONAL DATA SHOWN
� ADDITIONAL CONTENT HERE
Proprietary and ConfidentialInsights into the Freemium Games Market
38
Q12. How much have you paid in total over the past 3 months within these free-to-play games to enhance your experience or add features or content?
$90
$80
$70
$60
$50
$40
$30
$20
$10
Total Male Female Under 6 6 to 12 13 to 17 18 to 34 35 to 54 55 or older
Paid Past 3 Months for Freemium Upgrades(Among those who’ve Paid to Upgrade)
Base: 516 Paid to extend or enhance Freemium games; 257-Males, 259-Females, 27***-Under 6, 78*-6 to 12, 64-13 to 17, 141-18 to 34, 135-35 to 54, 71*-55 or older
* Indicates small base size (51-100), *** indicates insufficient base size (<30)
= Statistically significant relative to counterpoint. Where more than 2 comparisons, statistical differences only flagged when hire than 3 or more counterpoints
Key FindingsAdditional Details Shown Here
MOCK REPORT FICTIONAL DATA SHOWN
� ADDITIONAL CONTENT HERE
Proprietary and ConfidentialInsights into the Freemium Games Market
39
Q13. How likely are you to consider paying for an upgrade or additional content in the next 3 months?
Likelihood to Pay for Upgrade in Next 3 Months(Among those who’ve NOT Paid to Upgrade)
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
Total
Male
Female
Under 6
6 to 12
13 to 17
18 to 34
35 to 54
55 or older
Definitely will Probably will Might or might not Probably will not Definitely will not
Base: 777 Have NOT paid to extend or enhance Freemium games; 327-Males, 750-Females, 54*-Under 6, 88*-6 to 12, 70*-13 to 17, 216-18 to 34, 204-35 to 54, 145-55 or older
* Indicates small base size (51-100), *** indicates insufficient base size (<30)
= Statistically significant relative to counterpoint based on mean score. Where more than 2 comparisons, statistical differences only flagged when hire than 3 or more counterpoints
Key FindingsAdditional Details Shown Here
MOCK REPORT FICTIONAL DATA SHOWN
� ADDITIONAL CONTENT HERE
Proprietary and ConfidentialInsights into the Freemium Games Market
40
Reasons Won’t Consider Paying for Freemium Games(Among those will Probably/Definitely NOT Pay to Upgrade)
Q14. Why do you say you probably or definitely will not consider paying for an upgrade or additional content from a free-to-play game in the next 3 months?
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
Do not have a credit card
Full version/additional content not very different fromfree version
Haven't found content worth paying for
I feel that spending money in a game to get further orget new items would be cheating
Only use infrequently/not worth the money
Only want to spend money on full, paid games
Security concerns
They rarely have a Social Networking features andcapabilities
Why pay when there are so many other ways tointeract with my favorite characters
Others
* Indicates small base size (51-100)
Base: 604 Will NOT paid to extend or enhance Freemium games; 233-Males, 371-Females, 35**-Under 6, 62*-6 to 12, 60*-13 to 17, 163-18 to 34, 165-35 to 54, 119-55 or older = Statistically significant relative to counterpoint. Where more than 2 comparisons, statistical differences only flagged when hire than 3 or more counterpoints
Key FindingsAdditional Details Shown Here
MOCK REPORT FICTIONAL DATA SHOWN
� ADDITIONAL CONTENT HERE
X X X X X X X X
X X X X X X X X
X X X X X X X X
X X X X X X X X
X X X X X X X X
X X X X X X X X
X X X X X X X X
X X X X X X X X
X X X X X X X X
X X X X X X X X
Males Females Under 6 6 to 12 13 to 17 18 to 34 35 to 54 55+
AUTOMOTIVE
BEAUTY
COMMERCIAL TECHNOLOGY
CONSUMER TECHNOLOGY
ENTERTAINMENT
FASHION
FOOD & BEVERAGE
FOODSERVICE
HOME
OFFICE SUPPLIES
SOFTWARE
SPORTS
TOYS
WIRELESS
Insights into the Freemium Games Market Proprietary and Confidential
Freemium -Impact on Spending
MOCK REPORT
FICTIONAL DATA SHOWN
Proprietary and ConfidentialInsights into the Freemium Games Market
42
Q21. How much money have you spent in the last 3 months on each of the following types of game purchases for yourself
(excluding gifts purchased for others)?
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
30
30
30
Full digitalgames
downloadedonline/website
Physical gamesbought in
store/website
Subscriptions togames played
online
0 $1-$3 $4-$6 $7-$10 $11-$13 $14-$16 $17-$20 $21+
AVG.
$X
$X
$X
Estimated Past 3 Month Spending(Among those who Currently Play Freemium Games n=2046)
� ADDITIONAL CONTENT HERE
Key FindingsAdditional Details Shown Here
MOCK REPORT FICTIONAL DATA SHOWN
Proprietary and ConfidentialInsights into the Freemium Games Market
Physical games bought in store or
website
Full digital games downloaded online or
from a website
Subscriptions to games that you play
online
% Among Current Freemium Game Players
43
Total Males Females Under 6 6-12 13-17 18-34 35-54 55+
Q21. How much money have you spent in the last 3 months on each of the following types of game purchases for yourself (excluding gifts purchased for others)?
Avg. Past 3 Month Spending – by Gender & Age
$X $X $X $X $X $X $X $X $X
$X $X $X $X $X $X $X $X $X
$X $X $X $X $X $X $X $X $X
Key FindingsAdditional Details Shown Here
MOCK REPORT FICTIONAL DATA SHOWN
� ADDITIONAL CONTENT HERE
Proprietary and ConfidentialInsights into the Freemium Games Market
Base Size n =
Avg. Est. SpendingP3M
Est.Impact % More/Less
Avg. $ More/Less
Net ImpactOn
Spending
109 $X X% $X Net Impact: +/-$X per person/ Past 3 Month
Spending
152 $X X% $X
355 $X X% $X
39** $X X% $X Net Impact: +/-$X per person/ Past 3 Month
Spending
115 $X X% $X
181 $X X% $X
45** $X X% $X Net Impact: +/-$X per person/ Past 3 Month
Spending
73* $X X% $X
179 $X X% $X
44
� ADDITIONAL CONTENT
HEREQ22-Q24. For each game type, would you say you’ve spent more/less/about the
same amount of money in the past 3 months because of free gaming? How much more/less?
Impact on Past 3 Month Spending(Among those who spent on [Game Type])
25
50
25
25
50
25
25
50
25
Physical Games
Full Digital Games
Subscription Games
MoreLessAbout same
Net Per Person Impact Calculation:((Freq. n=more*avg. $ more) + (Freq. n=less*avg. $ less) + (Freq. n=same *0)=$XXX
$XXX/Total Freq. n=more/less/same
Note: calculation above is for descriptive purposes only –
actual calculations are performed at the respondent level and
use the actual value rather than the average value. This
method is more accurate and results in slightly different
figures than the average method described.
* Indicates small base size (51-100), ** indicates very small base size (30-50)
1Please note: figure is an estimate only and could be higher or lower than this figure. Data is based on consumer recall and as such should be used for directional purposes only.
Key FindingsAdditional Details Shown Here
MOCK REPORT FICTIONAL DATA SHOWN
AUTOMOTIVE
BEAUTY
COMMERCIAL TECHNOLOGY
CONSUMER TECHNOLOGY
ENTERTAINMENT
FASHION
FOOD & BEVERAGE
FOODSERVICE
HOME
OFFICE SUPPLIES
SOFTWARE
SPORTS
TOYS
WIRELESS
Insights into the Freemium Games Market Proprietary and Confidential
APPENDIX
MOCK REPORT
FICTIONAL DATA SHOWN
Proprietary and ConfidentialInsights into the Freemium Games Market
Systems/Devices Used
46
Q1-Q3. Which of the following systems or devices do you currently, personally use to play games? Which, if any, of the following devices do you use for online gameplay? Have you ever
purchased downloadable content for an existing game you own or owned for any of the following devices?
Currently Use to Play
GamesUse for Online Game Play
Have Ever Purchased
Downloadable Content
with Device
C O N S O L E S X% X% X%
Nintendo Wii X% X% X%
PlayStation 2 X% X% X%
PlayStation 3 X% X% X%
Xbox 360 X% X% X%
P O R T A B L E S X% X% X%
Game Boy (Advance, Advance SP, or Micro) X% X% X%
Nintendo DS/DS Lite X% X% X%
Nintendo Dsi/Dsi XL X% X% X%
Nintendo 3DS X% X% X%
Sony PSP X% X% X%
Sony PSPgo X% X% X%
Sony PSVita X% X% X%
P H O N E S / DEVICES X% X% X%
Regular cell phone (not including iPhone or other Smartphones) X% X% X%
iPhone X% X% X%
Android Smartphone X% X% X%
Other Smartphone (not including iPhone or Android; for ex., a Blackberry) X% X% X%
Portable digital music player (not including iPod Touch; for ex. iPod, Sansa, Zune, etc.) X% X% X%
iPod touch X% X% X%
iPad X% X% X%
Other tablets (for ex. Samsung Galaxy, Kindle Fire, Nook Color; etc. Not including iPad) X% X% X%
D E S K T O P S / L A P T O P S X% X% X%
Personal desktop computer X% X% X%
Laptop/netbook X% X% X%
OTHER X% X% X%
Kid-oriented systems (for ex., Leapfrog Leapster, Vtech V.Smile, etc.) X% X% X%
Plug & Play/all-in-one system (for ex., Namco TV Games, Atari Classics, etc.) X% X% X%
Base: 6,416 Total Respondents
Device Used For …(All Percent's Among Total Respondents n=6416)
MOCK REPORT FICTIONAL DATA SHOWN
Proprietary and ConfidentialInsights into the Freemium Games Market
47
Systems/Devices Used for Freemium Games
90%
85%
80%
75%
70%
65%
60%
55%
50%
P
C
s
a
n
d
L
a
p
t
o
p
s
Total
Males
Females
Under 6
6 to 12
13 to 17
18 to 34
35 to 54
55 or older
Devices and Platforms Used for Freemium Games(Among those who Currently Play)
Q10. On which of the following devices do you play free-to-play games? And on which, if any, of these types of platforms do you play these types of games?
90%
85%
80%
75%
70%
65%
60%
55%
50%
A
p
p
s
b
a
s
e
d
d
e
v
i
c
e
s
Base: Currently play free-to-play games: 2046 Total; 922 Male; 1124 Female; 133 <6; 256 6-12; 187 13-17;486 18-34; 573 35-54;411 55+
MOCK REPORT FICTIONAL DATA SHOWN
Proprietary and ConfidentialInsights into the Freemium Games Market
Q4. Which of the following types of games do you typically like to play (online or offline, on any system or device)?
Game Type Preference: Overall
48
Total Males Females Under 6 6 to 12 13 to 17 18 to 34 35 to 54 55 or older
Action X X X X X X X X X
Adventure X X X X X X X X X
Arcade X X X X X X X X X
Board X X X X X X X X X
Card X X X X X X X X X
Casino X X X X X X X X X
Dance X X X X X X X X X
Dice X X X X X X X X X
Educational X X X X X X X X X
Family X X X X X X X X X
Kids X X X X X X X X X
Music X X X X X X X X X
Puzzle X X X X X X X X X
Racing X X X X X X X X X
Role-Playing X X X X X X X X X
Simulation X X X X X X X X X
Sports X X X X X X X X X
Shooter X X X X X X X X X
Strategy X X X X X X X X X
Trivia X X X X X X X X X
Word X X X X X X X X X
Other (please specify) X X X X X X X X X
Types of Games Typically Like to Play(% Among Current Gamers)
Base: 4,404 Total; 2,099 Male; 2,305 Female; 283 Under 6; 586 Age 6-12; 401 Age 13-17; 1104 Age 18-34; 1184 Age 35-54, 846 Age 55+
= Statistically significant relative to counterpoint
MOCK REPORT FICTIONAL DATA SHOWN
Proprietary and ConfidentialInsights into the Freemium Games Market
Q20. Which type of games are you playing for each type of free-to-play game?
Game Type Preference for No Ads/No Upgrade Games - Summary
49
Total Males Females Under 6 6 to 12 13 to 17 18 to 34 35 to 54 55 or older
Action X X X X X X X X X
Adventure X X X X X X X X X
Arcade X X X X X X X X X
Board X X X X X X X X X
Card X X X X X X X X X
Casino X X X X X X X X X
Dance X X X X X X X X X
Dice X X X X X X X X X
Educational X X X X X X X X X
Family X X X X X X X X X
Kids X X X X X X X X X
Music X X X X X X X X X
Puzzle X X X X X X X X X
Racing X X X X X X X X X
Role-Playing X X X X X X X X X
Simulation X X X X X X X X X
Sports X X X X X X X X X
Shooter X X X X X X X X X
Strategy X X X X X X X X X
Trivia X X X X X X X X X
Word X X X X X X X X X
Other (please specify) X X X X X X X X X
Types of No Ads/No Upgrade Games Typically Like to Play(Among those who Currently Play [Game Type])
Base: 766 Total; 370 Male; 396 Female; 59* Under 6; 104 Age 6-12; 74* Age 13-17; 162 Age 18-34; 216 Age 35-54, 151 Age 55+
= Statistically significant relative to counterpoint
MOCK REPORT FICTIONAL DATA SHOWN
Proprietary and ConfidentialInsights into the Freemium Games Market
Q20. Which type of games are you playing for each type of free-to-play game?
Game Type Preference for No Ads/Option to Upgrade Games - Summary
50
Total Males Females Under 6 6 to 12 13 to 17 18 to 34 35 to 54 55 or older
Action X X X X X X X X X
Adventure X X X X X X X X X
Arcade X X X X X X X X X
Board X X X X X X X X X
Card X X X X X X X X X
Casino X X X X X X X X X
Dance X X X X X X X X X
Dice X X X X X X X X X
Educational X X X X X X X X X
Family X X X X X X X X X
Kids X X X X X X X X X
Music X X X X X X X X X
Puzzle X X X X X X X X X
Racing X X X X X X X X X
Role-Playing X X X X X X X X X
Simulation X X X X X X X X X
Sports X X X X X X X X X
Shooter X X X X X X X X X
Strategy X X X X X X X X X
Trivia X X X X X X X X X
Word X X X X X X X X X
Other (please specify) X X X X X X X X X
Types of No Ads/Option to Upgrade Games Typically Like to Play(Among those who Currently Play [Game Type])
Base: 564 Total; 287 Male; 277 Female; 33** Under 6; 82* Age 6-12; 71* Age 13-17; 163 Age 18-34; 137 Age 35-54, 78* Age 55+
= Statistically significant relative to counterpoint
MOCK REPORT FICTIONAL DATA SHOWN
Proprietary and ConfidentialInsights into the Freemium Games Market
Q20. Which type of games are you playing for each type of free-to-play game?
Game Type Preference for With Ads/No Upgrade Games - Summary
51
Total Males Females Under 6 6 to 12 13 to 17 18 to 34 35 to 54 55 or older
Action X X X X X X X X X
Adventure X X X X X X X X X
Arcade X X X X X X X X X
Board X X X X X X X X X
Card X X X X X X X X X
Casino X X X X X X X X X
Dance X X X X X X X X X
Dice X X X X X X X X X
Educational X X X X X X X X X
Family X X X X X X X X X
Kids X X X X X X X X X
Music X X X X X X X X X
Puzzle X X X X X X X X X
Racing X X X X X X X X X
Role-Playing X X X X X X X X X
Simulation X X X X X X X X X
Sports X X X X X X X X X
Shooter X X X X X X X X X
Strategy X X X X X X X X X
Trivia X X X X X X X X X
Word X X X X X X X X X
Other (please specify) X X X X X X X X X
Types of Ads/No Upgrade Games Typically Like to Play(Among those who Currently Play [Game Type])
Base: 796 Total; 363 Male; 433 Female; 50* Under 6; 82* Age 6-12; 72* Age 13-17; 191 Age 18-34; 232 Age 35-54, 170 Age 55+
= Statistically significant relative to counterpoint
MOCK REPORT FICTIONAL DATA SHOWN
Proprietary and ConfidentialInsights into the Freemium Games Market
Q20. Which type of games are you playing for each type of free-to-play game?
Game Type Preference for With Ads/Option for Ad-Free Games - Summary
52
Total Males Females Under 6 6 to 12 13 to 17 18 to 34 35 to 54 55 or older
Action X X X X X X X X X
Adventure X X X X X X X X X
Arcade X X X X X X X X X
Board X X X X X X X X X
Card X X X X X X X X X
Casino X X X X X X X X X
Dance X X X X X X X X X
Dice X X X X X X X X X
Educational X X X X X X X X X
Family X X X X X X X X X
Kids X X X X X X X X X
Music X X X X X X X X X
Puzzle X X X X X X X X X
Racing X X X X X X X X X
Role-Playing X X X X X X X X X
Simulation X X X X X X X X X
Sports X X X X X X X X X
Shooter X X X X X X X X X
Strategy X X X X X X X X X
Trivia X X X X X X X X X
Word X X X X X X X X X
Other (please specify) X X X X X X X X X
Types of Ads/Option for Ad-Free Games Typically Like to Play(Among those who Currently Play [Game Type])
Base: 804 Total; 357 Male; 447 Female; 59* Under 6; 101 Age 6-12; 83* Age 13-17; 228 Age 18-34; 204 Age 35-54, 129 Age 55+
= Statistically significant relative to counterpoint
MOCK REPORT FICTIONAL DATA SHOWN
Proprietary and ConfidentialInsights into the Freemium Games Market
Q20. Which type of games are you playing for each type of free-to-play game?
Game Type Preference for With Ads/Option to Upgrade Games - Summary
53
Total Males Females Under 6 6 to 12 13 to 17 18 to 34 35 to 54 55 or older
Action X X X X X X X X X
Adventure X X X X X X X X X
Arcade X X X X X X X X X
Board X X X X X X X X X
Card X X X X X X X X X
Casino X X X X X X X X X
Dance X X X X X X X X X
Dice X X X X X X X X X
Educational X X X X X X X X X
Family X X X X X X X X X
Kids X X X X X X X X X
Music X X X X X X X X X
Puzzle X X X X X X X X X
Racing X X X X X X X X X
Role-Playing X X X X X X X X X
Simulation X X X X X X X X X
Sports X X X X X X X X X
Shooter X X X X X X X X X
Strategy X X X X X X X X X
Trivia X X X X X X X X X
Word X X X X X X X X X
Other (please specify) X X X X X X X X X
Types of Ads/Option to Upgrade Games Typically Like to Play(Among those who Currently Play [Game Type])
Base: 510 Total; 239 Male; 271 Female; 30** Under 6; 69* Age 6-12; 52* Age 13-17; 161 Age 18-34; 139 Age 35-54, 59* Age 55+
= Statistically significant relative to counterpoint
MOCK REPORT FICTIONAL DATA SHOWN
Proprietary and ConfidentialInsights into the Freemium Games Market
About The NPD Group, Inc.
About The NPD Group, Inc.
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Proprietary and Confidential: This report and all information contained herein is the property of The NPD Group, Inc. and its affiliates, is provided for the confidential use of NPD clients only, and may not be disclosed in any manner, in whole or in part, to
any third party without the express written consent of NPD.
54
MOCK REPORT FICTIONAL DATA SHOWN