At the same time, game companies are investigating new ways to deliver content to consumers. Subscription services offer a new level of value and have the potential to redefine the relationship between developers, publishers, and players. Similarly, cloud gaming services are on track to attract even more players by lowering the upfront cost of hardware, removing one of the highest barriers to entry to PC and console gaming. Going forward, we see leading companies willingly sacrifice short-term revenues for long-term success. By prioritizing user engagement above all, companies are pushing us further toward a platform-agnostic future. It doesn’t matter which device people play on—as long as they are accessing these companies’ ecosystems. To that purpose, we have further improved our game revenue breakdown. We now split revenues per platform between full games (boxed and digital), in-game revenues, and subscription revenues on console. We will continue to expand this breakdown in the coming months to account for the ever-evolving games market. Tom Wijman Sr. Market Analyst [email protected] Full 137-page version $7500 Includes access to the Newzoo Platform

# Methodology # Sizing the Market With A Variety of Data Newzoo aims to provide clients and market stakeholders with the best possible assessment of the size of the overall games market, broken down into segments and regions. By developing many data points, we ensure that our numbers make sense on a segment, regional, and individual country/market level. Below, we describe our approach in more detail to explain what underpins our forecasts, facilitating comparisons with other data sources. At the highest level, Newzoo focuses on three key metrics for every market: players, payers, and revenues. We define a market as a country or geographic region in combination with one or more game segment(s). The data on players and payers is mainly based on our own primary consumer research, which continues to form the basis of our detailed understanding of consumers and games. In our primary consumer research, conducted from February and March 2020, more than 62,500 invite-only respondents across 30 key countries/markets were interviewed. The 30 countries/ markets together represent more than $90 \%$ of global game revenues. The respondents are between the ages of 10 and 65 for all markets except for Turkey, Saudi Arabia, Indonesia, India, Thailand, Singapore, Vietnam, Philippines, Malaysia, Taiwan, and China, for which the focus is 10 to 50. Respondents are selected carefully to represent the online population in developed countries and the urban population of major cities in Turkey, Saudi Arabia, Southeast Asia, and India. In China, we focus on the population of Tier 1 and Tier 2 cities. The player and payer ratios resulting from our consumer research are projected against the online population, using UN population and ITU internet penetration metrics. The logic behind the model is that the online population is an important driver of the number of potential gamers and an indicator of how much more structural growth a country can expect in its potential gamer population. The differences between the player and payer numbers in the Global Games Market Report and our Consumer Insights stem from the use of age boundaries and the use of the core city approach. In the Global Games Market Report, the total population is considered, while our Consumer Insights use the population between the ages of 10 and 50 or 65 to best represent the online urban population in most countries. The revenue data comes from our predictive games market model, which uses a top-down approach to market sizing. We incorporate macroeconomic and census data from the IMF and UN, such as household income and GDP per capita, transactional and app store revenue data from our data partner Priori, our primary consumer research, other partner data, detailed financial information reported by more than 100 public companies, and third-party research. We also receive valuable input from clients, often leading international game companies.