The bird's eye view of mobile games in 2016

hi everyone Maicon um boy his pocket gamer come a long way I want to say early this year that's my kids earlier this year in march i think it was i sang happy birthday to to the crew into to the site at GDC so as meant it's been 10 years now and it feels like it feels a bit like we grown up together and it feels like the industry has actually grown up together as well so so congratulations again for for the amazing amazing history that you're making oh yeah first that's the impressive intro slide this is it almost a 3g gabite powerpoint deck I've never

I've never done that before so let's hope that they actually keeps running throughout throughout the show but I'm going to talk about three topics a quick check on global mobile games where are we where are we heading how how is the industry looking at the moment and then the short section on meanwhile in finland and then the 411 on rovio i'm going to try to cram in as many statistics as many numbers in the presentation as possible to make myself look really smart along the way so let's kick this off with with global mobile games mobile games is growing and it's growing at a staggering rate compared to the rest of the industry if you look at this we are this is the first year by the way this is the first year that mobile is as a format the biggest form of gaming entertainment it overtook it overtook the number one possession this

year and the kegger in mobile games is is far higher than then rest of the rest of the industry over the next year's so I guess that's a long way of saying that you guys all of us guys here are in the right room right now clap two you have to everyone here you made a good choice putting that in perspective in in relation to some other forms of media entertainment we see that mobile games last year really holds its ground there's no reason to believe actually that mobile games alone is going to be bigger than these other forms of entertainment you might have heard of at one point or another however this is not the full picture the full pictures in fact this picture worldwide games last year was nineteen 191 billion and then it truly truly dwarfs basically all of the forms of mainstream media entertainment so it's quite amazing quote from from humble beginnings of

gaming industry overall and especially humble beginnings of mobile games we've come quite far and we're going to go even further so I guess the question that begs to be answered is where is this growth coming from what regions naturally as I think a lot of us know is that it is really driven by China at the moment China is growing at the adhan quietness an astonishing rate it's also quite a different market culturally anybody who's who's launched games in China us included knows that it's a little bit different you have to operate in a different way same thing applies to Japan and South Korea as well you have three monstrously large markets in the east all warranting their own approach interesting tidbit here is that if you look at the top three those command over sixty percent in the top five markets command over seventy percent of the

global mobile games industry not to say that there aren't important markets outside but it's just interesting to to look at that from that perspective let's look a little bit deeper at at North America as I think many of us know here already Google Play has has overtaken iOS in terms of in terms of pure scale downloads on Google play's is higher in in the u.s. than on iOS our revenue is a different story combining those two gives a metric called download dollar per download not exactly the average LTR it this is a static metric it takes no consideration on cohorts whatsoever however the the bit of information here is that iOS is operating at a very high rate in the US and it seems to be growing consumers are spending more and more money on on mobile games diving a little bit deeper

into into the US and and and some trends this is a genre picture which genres are the most popular in terms of revenue generation gets no surprises there that build battle is the number one genre in the US the interesting bit here is also that as puzzle was stagnating a bit still a few quarters to grow ago it's growing quite substantially again and the last one last definitely not least is modern RPG the purple line which is globally the largest wrong genre but has not been the largest Jean ring in the West yet is growing really quickly at the moment this is as the slide says its top 50 grossing over time that is about and it's look that is about sixty four percent of the u.s. mobile games total revenue so it is a good representation

of where the market is another interesting tidbit is of course that when we do these numbers after q3 you're all of a sudden we're going to see location based games or actually game in on the list which which took about ten percent to the market here for for some time quite remarkable and I think it it it reminds us that these are interesting statistics these are things that we should know yet as an industry it can take us by surprise at any given moment the last bit on on on kind global picture is user acquisition costs as we know this is a booming industry it's growing very quickly and fixed who tends to tends to do this cost per loyal user index and I've usually they take only a snapshot in time I've plotted all of them since since the beginning of those studies over time and we see quite a remarkable trend and and again a trend

that that we all know of and I think this this underlines the importance of free-to-play performance cross-promotion brand and also channel relationships so meanwhile in finland as we all know there's quite a lot of reindeer in Finland in fact there's two hundred seven thousand of them in Finland that number has remained fairly constant over the 2000s and I urge you to remember that I'm building up a little bit of a story on trying to paint the rosy picture of Finland in order to convince you all to move to Finland at the end of the slides and hopefully join rovio as a process so I'm a little bit of a history of firsts in in Finland I'm gonna try to do this fairly quickly but there's quite a there's quite a bit of info on this one now as I think most of us know here is that the mobile games industry was

actually born in Finland in espoo and this is the first mobile game a software engineer donnelly Armando placed it on the nokia 6110 in 1997 it was sorry 1998 prolly placed it in 97 quite the remarkable thing that happened in in in the headquarters of Nokia at the time has anybody seen the movie riot on I urge everyone to see that riot entertainment was the company and they were the first company to blow through 20 million euros and bc funding and not really make any reasonable business out of it in fact they also left 3 over 3 million euros and depth after that can't blame them for trying and the technology wasn't really there they made SMS and web games but they made them under really large phenomenal mediabrands globally fast-forward sue man I think suma was was the first of

two java game developers who really really focused on quality quality kind of came first with zuma and and human kind of talk next about somos was also i was also the first company behind the minds of ill koponen and and and and his his buddies i was quite a remarkable story in itself fast forward mr. good living mr. good living was in fact not founded in 2002 but 2002 was them was the year that it had java games commercially distributed in in europe it was the first developer to have java games distributed on mobile phones in europe then Rovio 2003 was to become the company that was kind of the first of many things but will return to that in a minute summer games 2004 in fact this game was first named athens 2004 and it

will had no license to be named athens 2004 the Olympic Games was in athens in 2004 so it became the first game to really upset the International Olympic Committee I was there witnessing that event then a year a few years of tumbleweed actually there was a lot of things happening but but will not focus on those now and gage everyone remembers engage right you remember the phone that you had to do this with I can't really understand how that happened but this is the platform the n-gage the gaming platform came out in 2008 it was a remarkable failure to be honest but it was the first to really try to make a gamers platform on mobile it did high definition games on well I guess devices where you have no business doing high definition games on but it still tried and it did push the boundaries for the Finnish mobile games industry it taught us to make games with a with a really large budget that was

very valuable lesson that kind of took Finland to where it is today does anybody know that game this is the 51st game of rovio it was the 51st game of rovio do you know what the 52nd game of rovio was that was angry birds supercell supercell is also the first of many things but I think what it became the first of this year is that it's the first deca corn of Europe 10 billion-euro 10 billion dollar startup remarkable then years of phenomenal growth of the of the mobile games industry in Finland fast forward Angry Birds the movie came out this year this is the first blockbuster Hollywood movie based on a mobile game and it actually is a good movie has who has I want to do this who has not seen the movie shame on

you you should see the movie so in a nutshell this is Finland's mobile games history I'm emitting a lot of detail but there's a lot of things that have happened in this industry that we can feel quite quite happy about so remember that when I when I try to convince you to come and move to Finland fun with numbers a statistic that really doesn't mean anything but this is the number of games made per million people finland tops that chart we have also plotted percentage of finished population working in games it's rising and this year it's 2,700 people and it was six hundred and two thousand for revenue per capita i believe this is the highest in the world i haven't run all the numbers of or every country in the world and if there is a if there is a good game or a well-performing games to do in least in stein or somewhere like that i might be

wrong but I think this is the highest in the world the kegger over over this time is quite remarkable as well the finished games industry has grown really really much but relating that the reindeer is also interesting so I did that this is the FINA games revenue per reindeer and here you see a true hockey stick so this is the far more interesting interesting picture the the problematic part of this is actually that I think we might not be the highest in the world on this because we have so many reindeer there's two hundred and seven thousand of them with this I want to hand over to our friends at the Conan O'Brien show and and sing a song about Finland as a tribute the basic cable band has composed a rockin version of the ringtone with lyrics finland this is for you you drink my

and you fishing you eat reindeer do that hardcore passer will not play representative democracy rule by 200-member unicameral parliament called the Kunda can't believe they did that um so Rovio just a few a few words about where we are at this moment so I I was as I often do I google nonsense words and I was googling up the word cute the the other day and and oh what do I find I found found this guy who is that as the number one image on google image search and I thought well I'll wander around i'll try to find out what the hell is going on and i found out that they're called hatchlings um and we're actually making

some small plushies out of them turns out that they're the baby birds from the movie the movie features some of these baby birds and are really adorable they're cute google tells us that they're cute and these are actually can't take pictures i stole this this image i'm not supposed to show it to any of you but i didn't i'm doing that anyway and i also i stole something else that our us movie crew has placed in the cinemas in the US over the summer as as kind of an extra for the movie i'm going to show you also that that video now i'm really breaking all kinds of india's but any case here we are

Oh

so that's hatch things and they're adorable we're really happy about how viral they've turned online and some the contents that the content that we share and who knows maybe we one day make a game out of that hatchlings as well they are adorable and they're the baby angry birds but because this is a gaming conference I thought that I chose some of our games as well and this is this is a collection of five of the latest user acquisition videos we're increasing our investments and user acquisition pretty much every month at the moment especially in our in three of our key games that are continuously improving their their performance every month and I want to show you some of the things that that the you a team has been has been working on

start

the last the last two are still in soft launch and and hopefully we'll we'll end up launching them but that it all depends on on on how that goes right a few weeks ago we also we announced them some good news about about the overall rovio performance and just diving a bit deeper into into how the games businesses is is doing its it's doing quite well initially this year we we had a wet a modest target in terms in terms of growth I also stood on on the stage not far from here on the other in the other room in February saying that our ambition is quite high in terms of growth and it turns out our forecast for this year is even higher so the the year is going in a very positive way and I'd now welcome all of you to join the fun

finland has reindeer but we have bacon so and that's it happy too happy to have shared some of the news from from Rovio thank