Competitive Intelligence Alexey Rumyantsev Wargaming Strategic Intelligence Competitive Intelligence 1

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3 Why do we need CI in a gaming industry?

4 Why do we need CI in a gaming industry? 95% of all mobile games are not profitable The average game on Steam makes $25K in sales 39% of all games on Steam were released in 2017 (7 696 games) Mobile gaming will generate 60% of all global revenue in 2021 (43% in 2018) Datasource: Steamspy, Newzoo

5 Failed case – Liferace (PC f2p Racing project) • ~ 20 people (team) • 2 years for development • Cost - ~$1 Mn • No official auto licensing • Focus: CIS & EU

6 Failed case – Liferace (PC f2p Racing project) In 2017 Mobile Console PC f2p PC premium Avr. MAU 230 Mn 19,5 Mn 21 Mn 2,8 Mn $ Revenue 880 Mn 745 Mn 380 Mn 110 Mn ARPMAU 0,3 $ 3,1 $ 1,5 $ 3,3 $ $ Rev growth 73% 61% - 7% 4% PC f2p Racing Revenue share by regions: • Mobile • Console • PC f2p • PC premium Datasource: Racing genre level, Superdata

7 Failed case – Liferace (PC f2p Racing project) In 2017 Mobile Console PC f2p PC premium Avr. MAU 230 Mn 19,5 Mn 21 Mn 2,8 Mn $ Revenue 880 Mn 745 Mn 380 Mn 110 Mn ARPMAU 0,3 $ 3,1 $ 1,5 $ 3,3 $ $ Rev growth 73% 61% - 7% 4% Revenue share by regions: • Mobile – China 60%, Japan 12%, NA 9% • Console – NA 40%, EU 40%, UK 12% • PC f2p – Asia 89%, EU 4% • PC premium – EU 56%, NA 23% Datasource: Racing genre level, Superdata

8 Failed case – Liferace (PC f2p Racing project) In 2017 Mobile Console PC f2p PC premium Avr. MAU 230 Mn 19,5 Mn 21 Mn 2,8 Mn $ Revenue 880 Mn 745 Mn 380 Mn 110 Mn ARPMAU 0,3 $ 3,1 $ 1,5 $ 3,3 $ $ Rev growth 73% 61% - 7% 4% Revenue share by regions: • Mobile – China 60%, Japan 12%, NA 9% • Console – NA 40%, EU 40%, UK 12% • PC f2p – Asia 89%, EU 4% • PC premium – EU 56%, NA 23% Top titles: • Mobile – QQ Speed (Asia), CSR Racing 2 • Console – Mario Cart, Forza Motorsport 7, Forza Horizon 3 & Gran Turismo sport • PC f2p – KartRider • PC premium – Rocket League (it isn’t racing but in all data this genre is specified), NFS: Payback, Project Cars. Datasource: Racing genre level, Superdata

9 Datasource: Superdata *Virtual World genre = Open world games *

10 Your “BIG DATA” knowledge Industry trends and forecasts Consumer behaviors, profiling, addressable markets Competitors, “best practices” There is a whole world outside of your own.

11 11 About Competitive Intelligence team: • 5 people; • An independent department; • CI is a “window” into the world of external data for the whole company; • A broad range of market expertise and rigorous peer review process; • CI supports all our games.

12 12 Time focus Proactive Reactive Data-Driven Summarizes, Reports Generalizes, Finds Patterns + Trends Identifies Cause + Effect Forecast Who? What? When? Where? How? WHY? What Does It Mean? What Happens Next? Evaluates + Judges THOUGHT PROCESS Concept-Driven Descriptive Analysis Explanatory Analysis Evaluative Analysis Estimate Analysis The analytic spectrum 1 2 4 3 START

13 Competitive Intelligence tasks: Supporting new games/products  Market feasibility

14 Competitive Intelligence tasks: Supporting new games/products  Market feasibility  Genre/Mechanics/Audience positioning

15 Where is your product located?

16 Competitive Intelligence tasks: Supporting new games/products  Market feasibility  Genre/Mechanics/Audience positioning  New product business case forecasting

17 Competitive Intelligence tasks: Supporting new games/products  Market feasibility  Genre/Mechanics/Audience positioning  New product business case forecasting  Competitor influences

18 Competitive Intelligence tasks: Supporting new games/products  Market feasibility  Genre/Mechanics/Audience positioning  New product business case forecasting  Competitor influences  Identification of consumer and industry drivers

19 Competitive Intelligence tasks: Supporting new games/products Game Evaluation  Scoring  SWOT  Competitive Analysis

20 Competitive intelligence tasks: Supporting new games/products Game Evaluation Country\markets Evaluation

Competitive Intelligence scoring 21

22 Competitive Intelligence scoring  Overall potential  Revenue  Audience  Competitiveness/saturation of the market  Strength of main competing titles  Competitive Advantage  Uniqueness of the game  eSports Potential  Watchability  Playability  Other questions*  Overall monetization System  Overall Platform Feel  Overall Gameplay  Overall Art Direction

23 Instruments & data sources

24 Vendor/Service Platform Description Price Steamcharts, Steamdb.info, Steam Hmsurvey https://store.steampowered.com/stats/ Steam A small windows for PC games 0 Facebook audience insights - Audience insights 0 Google trends, similarweb, Baidu Index (China) - Tracking trends 0 Steamspy Steam A big window for PC games 30$-50$ Appannie Mobile A big window for mobile games $$$ Sensortower, appfigures, apptapia, MetricsCat, Priori Data, appcodes, mixpanel, flurry, AppsFlyer - Other mobile data service $$$ AppsFlyer, Playliner mobile Industry Analysis, marketing analytics, SuperData All Industry Analysis, market dashboards, development support $$$ Newzoo All + e-Sport + Twitch Industry Analysis, market dashboards, development support $$$ IDG all Great consulting service $$$ NIKO partners all Intelligence, strategy and guidance for Asia's games market. $$$ Statista, GlobalWebindex, IDC All Audience insights, hardware $$$

The End 25 Alexey Rumyantsev a_rumyantsev@wargaming.net Q & A