Mobile Gaming Report - India Games

DYNAMICS OF THE INDIAN MOBILE GAMING INDUSTRY

DYNAMICS OF THE INDIAN MOBILE GAMING INDUSTRY FOREWORD The Indian Mobile Gaming Industry has grown to be a US$29 million market in a short period of time and is expected to grow to $250 million by 2010. With the changing dynamics in the industry with respect to handsets, pricing models, operator focus and discovery of content we see very exciting times ahead for the Indian mobile games industry. Indiagames - India's benchmark mobile and online games company, has released the first ever focused research on the Dynamics of the Indian Mobile Gaming Business. The study covers various aspects of the Indian mobile gaming industry like user profiles and statistics on operator shares, pricing, download details, top titles, genres, circles and handsets. As a market leader in the space with a dominant share in the industry, Indiagames has published for the 1st time, its unique insights on the business and shared its estimates of where the mobile games industry is headed over the next 3 years. We are confident this abridged document of our findings would be of interest to anyone wanting to know more about the Indian mobile gaming industry and its potential.

-Cyril Ferry Vice President India and APAC Indiagames

DYNAMICS OF THE INDIAN MOBILE GAMING INDUSTRY Mobile Games Growth 2004-2007 After going through a phase of consolidation in 2006, the Indian mobile gaming market saw some aggressive growth in 2007. In fact the market for mobile games grew by as much as 43% with the bulk of this growth coming in the second half of the year. At end user price the industry is currently valued at approximately US$ 29 million. Our outlook is very positive on the growth of the industry over the next few years and as per our estimates we expect the mobile games business to reach US$250 million by 2010, at an annualized growth rate of 106%. The growth in Market Size market size is l a r g e l y 35 120.00% 29 attributed to 30 100.00% the changing 25 20 80.00% 20 dynamics in 14 60.00% 12 15 the industry 40.00% 6 10 20.00% such as the 5 0 0.00% e a s y Jan-Dec 04 Jan-Dec 05 Jan-Dec 06 Jan-Dec 07 Current availability of Annualised affordable G P R S USD mn Grow th (Rt axis) handsets as

USD mn

Game revenues are in fact larger than music on GPRS with some operators. A high end user could spend as much as US$20 a month on games – almost 2.5x the average revenue per user in India. We expect the market to grow aggressively in the coming years with our 2010 estimates at around USD 250 million. — Vishal Gondal - Founder & CEO, Indiagames

well as initiatives 2010 Market Potential taken at the operator end such as removal of 300.00 252 subscription 250.00 charges on GPRS 200.00 access. As a result, 126 150.00 there are over 100.00 50 29 100,000 downloads 50.00 a day at an average 0.00 Current Jan-Dec 08 Jan-Dec 09 Jan-Dec 10 price point of Rs.30 Annualised (US$0.75). The Top 100 users download on an average US$20 of games per month. Interestingly the unique user base is up 85% from 6 months ago. In 2010 we expect the market to have a 5%-6% gamer penetration with 20-24 million gamers generating a gaming ARPU of $1 per month at 1.5 game downloads per user. This results in a market size ranging between US$ 240 – US$ 288 million.

Disclaimer: The data presented in the report may not be an actual representation of the Industry as it is based on Indiagames internal findings and interviews with key trade professionals. We assume no responsibility for any inadvertent errors.

KEY INDUSTRY STATISTICS 1.Top 3 Operators

Rank 1 2 3 4

Operator Airtel Vodafone Reliance Tata

Traditionally, Airtel has had the largest share in games, but last year saw both Vodafone and Reliance catch up considerably in market share. Tata has a considerably large share given the relative size of its subscriber base.

CDMA 31%

2.Revenue Split By Access Technology Based on revenues, GSM has a share of 79% as compared to CDMA’s 21%.

GSM 79%

CDMA We’ve seen aggressive 30% growth of 43% in the market in the last one year with the key genres being 3.Market Share By Downloads a c t i o n , c r i c k e t a n d Based on downloads, GSM has a share Hollywood based titles. The of 70% as compared to CDMA’s 30% surge in unique users by GSM about 85% in the last 6 70% months can be largely attributed to free GPRS The lower price points in CDMA account for this skew in Revenues v/s access schemes and Downloads proliferation of affordable GPRS handsets. — Samir Bangara, COO, Indiagames

Disclaimer: The data presented in the report may not be an actual representation of the Industry as it is based on Indiagames internal findings and interviews with key trade professionals. We assume no responsibility for any inadvertent errors.

PRICING 1.Effective End User Price

Average Price points 1.00

35.49 0.89

0.80 22.25 0.56

0.60 14.45 0.36

0.40

USD

40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00

0.20 0.00 GSM

CDMA

CDMA ex Rel BREW

The average mobile game download price on the GSM platform is INR 35.5 (US$ 0.89) as compared to CDMA's INR 22.25 (US$0.56). * The CDMA price point is actually significantly lower if stripped of Reliance BREW downloads where the pricing is as high as 99 per download. This is in sharp contrast to the Java downloads pricing and R-lite games pricing at INR 5 and INR 7 per play.

2.Download by Price Point 2007 was a rather interesting year as operators experimented with different pricing models and price points. GSM operators launched per play pricing models a la Reliance and Reliance's share of BREW downloads at INR 99 and INR 50 increased significantly over the Java game downloads. The chart shows the various GSM price points and their share of downloads

100 0% 75 0%

99 99 15% 15%

150 1% 55 21% 21% 10 10 10%

50 50 27% 27% 30 30 24% 24%

15 1% 20 1%

Disclaimer: The data presented in the report may not be an actual representation of the Industry as it is based on Indiagames internal findings and interviews with key trade professionals. We assume no responsibility for any inadvertent errors.

Downloads By Time of Day This information would be of great interest to those studying media consumption patterns.

Percentage downloads by hours

% of downloads

7.00 6.00 5.00 4.00 3.00 2.00 1.00

23-00

22-23

21-22

20-21

19-20

18-19

17-18

16-17

15-16

14-15

13-14

12-13

11-12

9-10

10-11

8-9

7-8

6-7

5-6

4-5

3-4

2-3

1-2

00-1

-

Time of day

Downloads split by time (GSM) are fairly consistent through out the day with peak download times being between 1pm-5pm and 7pm to 11pm. Downloads are also influenced by timings of WAP pushes by operators which are likely to hit customers in off peak hours. Hence as seen in our recent online gaming report, mobile game downloads also seem to be eating into prime time TV viewing time bands.

TOP 10 MOBILE GAME TITLES AND GENRES Rank Game 1 2020 Cricket 2 Harry Potter And The Order of The Phoenix 3 Moto GP 4 WWE Raw 5 Brian Lara Cricket 2007 6 Transformers 7 Sachin’s Spin 8 Cricket Champions Trophy 9 Bruce Lee 10 Fast & Furious

Publisher* Indiagames Electronic Arts THQ Wireless THQ Wireless Glu Glu Nazara Indiagames Indiagames I–Play

Genre Cricket Hollywood Racing Action Cricket Hollywood Cricket Cricket Action Racing

* In India, EA, THQ Wireless, Glu and I-Play mobile games are distributed by Indiagames

The top 10 games comprise a good mix of Cricket, Hollywood and Action based games with Cricket being the pre-dominant game, with 4 games in the Top 10 a true indicator that real life consumer passions also extend to the mobile gaming front.

Disclaimer: The data presented in the report may not be an actual representation of the Industry as it is based on Indiagames internal findings and interviews with key trade professionals. We assume no responsibility for any inadvertent errors.

TOP 10 GAMING HANDSETS

4%

4%

4%

4%

Nokia6020

Nokia5200

6%

Nokia3220

5%

Nokia6300

NokiaN73NokiaN73-1 1

4%

Nokia2626

6%

Nokia6600

Nokia6070

5%

NokiaN70NokiaN73-1 1

12%

Nokia6030

14% 12% 10% 8% 6% 4% 2% 0%

Nokia continues to be the undisputed leader with all 10 positions being occupied by Nokia handsets. We hope to see other handset manufacturers making a serious attempt to break into this Top 10 list in 2008.

TOP 10 GSM CIRCLES 16% 12% 8%

10%

6%

6%

4%

Rajasthan

13%

Maharashtra

13%

15%

UP(E)

20%

5%

4%

4%

PSYCHOGRAPHIC Mobile gaming continues to remain a largely male bastion, with the largest users in the 2235 age bracket which accounts for 40% of all downloads. The 13-21 as well as the 35+ age groups both account for 25% of all game downloads, followed by the 6-12 which accounts for the remaining 10%.

35+ 25%

Tamilnadu

Punjab

Andhra Pradesh

Delhi

Karnataka

Mumbai

Gujarat

0%

6-12 10%

13-21 25%

22-35 40%

Disclaimer: The data presented in the report may not be an actual representation of the Industry as it is based on Indiagames internal findings and interviews with key trade professionals. We assume no responsibility for any inadvertent errors.