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Trend Micro Surveys Mobile Gaming in Southeast Asia

July 7, 2014 — by Catherine Quinton

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Explosive growth in the mobile gaming industry in Asia is anticipated by everyone in the games industry, since mobile and social networking have already become entwined in daily life there. Dutch-based research firm NewZoo released a report which states that revenue from mobile games in Asia will expand at a compound annual growth rate of 27.3 percent until 2016. They also reported that the Asia-Pacific region has 48 percent of the global revenue from mobile gaming, making it by far the world’s biggest market.

Infograph-part-1Trend Micro has now released the results of a survey documenting the explosive growth of the mobile games industry in Southeast Asia. This survey included responses from 2000 users in Singapore, Malaysia, Indonesia, Thailand, the Philippines, and Singapore. On average, one out of every two respondents in this area play games every day on a mobile device. Broken down by country, the rate is: Thailand and the Philippines, 53 percent; Indonesia, 48 percent; Malaysia, 46 percent and Singapore, 43 percent. Across the region, the most popular games are Adventure, Action, and Arcade games. And approximately 50 percent of respondents in Indonesia and the Philippines download games every week, but this is in contrast to a low of 22 percent in Singapore.

The regions vary considerably in how much users are willing to pay for mobile game apps. All players in Singapore, Malaysia, and the Philippines are willing to pay for these apps, but the ones willing to spend the most are in Thailand, where 63 percent are willing to spend more than $10 USD for a game. This is a huge contrast to Indonesia, where 45 percent of users do not pay anything for their apps and another 31 percent will pay only $2 USD or less. Singapore and the Philippines are also very frugal in their game spending habits, with 80 percent and 71 percent of users spending $2 USD or less on a game.

It will probably always be difficult to find players who admit they enjoy in-app advertising, but the countries surveyed do vary in the number of users who say they hate them, from a high of 65 percent in Singapore to a low of 27 percent in Thailand. Players in Malaysia, Indonesia, and the Philippines say they hate in-app ads at rates of 50 percent, 45 percent, and 32 percent.

Infograph-part-2Rather shockingly, Trend Micro’s survey revealed that less than half of parents are aware of their children’s gaming habits. This breaks down to a high of 59 percent in the Philippines, 54 percent in Indonesia, 44 percent in Thailand, and 41 percent in Malaysia. The most careful parents are in Singapore, where only 23 percent of parents do not know what their children are playing.

Players throughout this area are very much at risk of downloading fake apps. For example, in the Philippines, although 71 percent of consumers check the authenticity of an app before downloading it, almost half have encountered fake apps. Consumers in other countries are equally at risk: 51 percent in Indonesia, 50 percent in Singapore, 50 percent in Thailand and 38 percent in Malaysia have downloaded risky or fake apps.

Across these regions, a very significant number of users seem unaware of the need for protection on their mobile devices. The number of users who do not use mobile security or anti-virus apps on their devices is highest in Singapore, at 58 percent. Malaysia and Thailand follow, with 44 percent of players using unprotected devices, and approximately one third of survey respondents in Indonesia and the Philippines use no form of protection on their devices.

Trend Micro has recognized the need for greater security on mobile devices and has responded with a new app called Dr. Safety. This app has six different safeguarding features; users will be much less likely to be deceived by a game that is a fake or risky app. Dr. Safety is available from the Google Play Store.
 

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Peter Warman: The perceived decrease in value of Facebook and Zynga post IPO has created dangerous and improper rumors in the investment community

February 21, 2013 — by Catherine Quinton

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“Market research and intelligent data segmentation empowers companies to strategically align with customers, partners, investors, press, and even competitors on a global scale,” shares Peter Warman, co-founder and CEO of Newzoo, “because it highlights and unlocks connection opportunities.”

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Despite the health of the global games market, Warman warns of a dangerous impression. “The recent IPOs of Facebook and Zynga, and their perceived decrease in value, have had an enormous impact on the way investors see the games industry and market.” He emphasized the importance of avoiding confusing investors with jargon and a segmentation they do not understand. “We have found that segmenting based on consumer’s four typical screens [TV, PC, tablet and smartphone] has increased digestibility of data for those new to industry terms and clearly demonstrates the growth opportunities investors are looking for,” says Warman. It is the responsibility of everyone to prevent investors and press from acquiring incorrect perceptions about the games market.

We have found that by segmenting based on consumer’s four typical screens [TV, PC, tablet and smartphone] has increased digestibility of data for those new to industry terms and clearly demonstrates the growth opportunities investors are looking for.
We have found that by segmenting based on consumer’s four typical screens [TV, PC, tablet and smartphone] has increased digestibility of data for those new to industry terms and clearly demonstrates the growth opportunities investors are looking for.

At Casual Connect Europe, Warman discussed how to locate metrics which merge into an easy to understand big picture and outlined alternative ways to understand a changing industry that is ultimately controlled by seemingly erratic consumer behavior.

Insufficient Data Inhibits Innovation

Warman studied Industrial Design Engineering at the University of Delft and graduated in Innovation Management. Since then he has worked in industries combining technology, design and business, where innovation is everywhere. He spent five years at Europe’s largest interactive agency and witnessed websites evolving from a novelty to a commodity. He then spent a year at the Reed Institute, with responsibility for online activities. During this time he discovered companies lacked the data they needed about games on newer media. At the time all games research companies were focused on tracking retail sales of boxed games, but companies needed broader information, including all the free game destinations. Warman formed his company, Newzoo to address the situation, becoming the first to provide the total picture across all platforms and business models. Today Newzoo, an international games market research company, also includes the global view companies now expect.

It is the responsibility of everyone to prevent investors and press from acquiring incorrect perceptions about the games market.

Warman mentions two of the many satisfying incidents over the five years of Newzoo’s history. “I read in the press how one of the world’s largest publishers made a dramatic and very successful change to their game after undergoing a deep analysis on the topic with Newzoo,” he explains. “ That’s exactly the result we hope for with all our partners.” One of the best forms of flattery is having companies take the initiative to contact you. “Of course, getting that call from Coca Cola in California asking for assistance with a global strategic project was pretty flattering,” he smiles. “Newzoo didn’t even have a US office yet!”

Multi-screen Future is Imperative and Elusive

The biggest future challenge Warman sees in the games industry will be finding effective ways to take advantage of the four screens now commonly in use (TV, PC, tablet and smartphone), particularly since consumers spread their budgets across the four. He believes the biggest opportunity will be the TV screen since it now has an unbalanced business model, with only 14% of game time but a large share of the money. He expects a rapid increase in TV content as big players and traditional companies, such as telecom and cable, begin offering games. In the end, consumers will benefit, and time and money spent on TV gaming will rise significantly. However, how smartphones and tablets work together with TV content will be crucial. Warman reminds us, “The market is global, and growth markets such as Brazil, Southeast Asia and Turkey provide enormous opportunities for global IP as well as localized games.”

“Games are increasingly becoming continuous services rather than products, and game companies are prioritizing metrics such as the cost of acquisition, conversion, ARPPU, and lifetime value.”

“Games are increasingly becoming continuous services rather than products, and game companies are prioritizing metrics such as the cost of acquisition, conversion, ARPPU, and lifetime value.” Warman sees a single screen focus as risky, with the rising cost of acquisition paralleling the rising confusion among investors, who lack a future outlook.

Making Connections in Partners and Consumers

Warman especially enjoys connecting companies with relevant business partners and helping them plan their strategy, marketing and product development. “The challenges companies face in deciding which of the many available options to choose, including which country and consumer to target, how to take advantage of multiple screens or which business model to use is a rewarding process to be involved in.” There is nothing better than helping companies make effective and efficient investments in time and money while, at the same time, keeping investors well informed.

 

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