Watch presentation at http://www.youtube.com/watch?v=dYO1pGE3kBs View From The Bridge: Game Apps Opportunities in 2013 by Microsoft UK's Andrew Spooner. These are the source data slides he used at Gaming Reimagined 2013 in Dublin

1. The Global Picture
Per region
2012
298m Asia-Pacific
gamers
North America 169m
$22.2bn $21.8bn gamers
+13% CAGR +1% CAGR
Total
$68bn
47m Middle-East +7% CAGR
gamers & Africa
880m
$1.0bn gamers
+21% CAGR Latin America 89m
$3.8bn gamers
274m Europe +14% CAGR
gamers $18.8bn
+3% CAGR Source: Newzoo 2012 Games Market Revenue Report
GAMES REPRESENT 25% OF THE GLOBAL SOFTWARE MARKET.
THE GLOBAL GAMES INDUSTRY BOASTS HIGHER REVENUES THAN THE TOTAL
MUSIC INDUSTRY AND 2X THAT OF THE MOVIES BOX OFFICE.
© 2013 Newzoo

2. The Global Picture
Per Market Segment
Casual Websites
PC/Mac Download $4.2bn
$7.6bn -1% CAGR
+2% CAGR Social Networks
$3.9bn
+5% CAGR
PC/Mac Boxed Total
$8.0bn Mobile
$68bn Devices
-11% CAGR +7% CAGR 9.0bn
+32% CAGR
Consoles
$21.2 MMOs
-2% CAGR $13.6bn
Source: Newzoo 2012 Games Market Revenue Report
+21% CAGR
© 2013 Newzoo

3. Microsoft is Already a Leader
But Dramatic Market Changes Spark Opportunities for All Business Units
© 2013 Newzoo

4. Kings of Free-to-Play
New companies set up to manage games-as-a-service
ALL GAMES ARE MULTIPLAYER AND CONTINUOSLY RUN AND
CONNECTED THROUGH THE CLOUD.
FREE-TO-PLAY | PLATFORM/SCREEN: PC
PUBLISHER: RIOTGAMES (US) OWNED BY TENCENT (CHINA)
LAUNCH: OCTOBER 2009
MONTHLY ACTIVE PLAYERS: +/- 35,000,000
MONTHLY REVENUES: +/- $40,000,000
FREE-TO-PLAY | PLATFORM/SCREEN: PC
PUBLISHER: WARGAMING.NET (RUSSIA)
LAUNCH: APRIL 2008
MONTHLY ACTIVE PLAYERS: +/- 13,000,000
MONTHLY REVENUES: +/- $55,000,000
ESTIMATED PROFIT/MONTH: $25,000,000
ESTIMATED CLOUD COSTS/MONTH: $1.5-2M, $3-4M incl hardware
FREE-TO-PLAY | PLATFORM/SCREEN: SMARTPHONE, TABLET
PUBLISHER: SUPERCELL (FINLAND)
LAUNCH: AUGUST 2012
MONTHLY DOWNLOADS: +/- 4,000,000
MONTHLY REVENUES: +/- $15,000,000
© 2013 Newzoo

5. Time is Money
eSports and Spectator Mode double time spent and load on the cloud
Prize money season 2: $5,000,000
Video
Watch live games of gamers that are (slightly) better than you.
© 2013 Newzoo

6. Mobile Games Market
tablet and smartphone games (global, 2012)
$9bn +32% >500M
CONSUMER SPEND ANNUAL GROWTH MOBILE PLAYERS
>175M
PAYING PLAYERS
33% OF ALL*
66% OF ALL*
DOWNLOADS MONEY
$
TO SMARTPHONES SPENT ON SMARTPHONES
AND TABLETS WERE AND TABLETS WAS SPENT ON
GAMES *BASED ON iOS APP STORE DATA IN 44 COUNTRIES & PLAYSTORE GAMES
DATA OF 17 COUNTRIES
© 2013 Distimo/Newzoo

7. UK Market Overview
Quarter 3 2012 - selected results
Ukie Event: 24 Jan
Ian Bramley

8. WHAT IS GAMETRACK?
APPS ONLINE PACKAGED
FREE APPS SOCIAL DISC/CART
PAID APPS FREE DOWNLOAD NEW
PAID EXTRAS PAID DOWNLOAD PRE OWNED
PAID EXTRAS RENTAL
MULTIPLAYER
BROWSER
TIME SPENT ACQUISITION VALUE

9. HOW DO WE DO IT?
MONTHLY FIELDWORK PER MARKET
1,000 Nat Rep 1,000 Online
Face to Face Rep
SAMPLES COMBINED AND
WEIGHTED TO BE NATIONALLY
REPRESENTATIVE AGED 6+ REPORTING QUARTERLY PER
MARKET ON 6,000+ INTERVIEWS
24,000 INTERVIEWS PER QUARTER
ACROSS EUROPE
from Q3 2012 from Q1 2013 9

10. HOW MANY PEOPLE
GAME?
10

11. WHAT ARE THE MAIN FORMS OF GAMING?
Base: all 6+ population
% Play... Q3 2012 Q4 ‘11
Any video gaming 20m people 35% 38%
ANY Packaged 22% 26%
ANY Apps 14% 12%
ANY Online 19% 18%
Downloads 8% 8%
Social 8% 8%
Multiplayer 8% 8%
Browser game sites 8% 6%
11

12. HOW DIFFERENT IS
GAMING BY AGE?
12

13. % PLAY ANY PACKAGED GAMES
Base: all 6+ population
100%
% Play... % Q3 2012
75%
% Q4 2011
PACKAGED
50%
25%
0%
6 to 10 11 to 14 15 to 24 25 to 34 35 to 44 45+
% point
-1% +5% -5% -7% -9% -2%
Change 13

14. % PLAY ANY APP GAMES
Base: all 6+ population
100%
% Play... % Q3 2012
75%
% Q4 2011
APPS
50%
25%
0%
6 to 10 11 to 14 15 to 24 25 to 34 35 to 44 45+
% point +9% +11% +1% +2% +2% +2%
Change 14

15. % PLAY ANY ONLINE GAMES
Base: all 6+ population
100%
% Play... % Q3 2012
75%
% Q4 2011
ONLINE
50%
25%
0%
6 to 10 11 to 14 15 to 24 25 to 34 35 to 44 45+
% point
+6% +4% +2% +1% -2% +1%
change 15

16. WHAT DEVICES ARE BEING
USED TO GAME ON?
16

17. WHAT DEVICES ARE BEING USED
TO GAME ON?
Base: all 6+ population
% Play devices... Q3 2012 Q4 ‘2011
Play any device 20m people 35% 38%
CONSOLES 24% 27%
COMPUTERS 24% 26%
SMARTPHONE / iPODs 18% 17%
PORTABLES 11% 12%
TABLETS 7% 4%
17

18. WHAT IS DRIVING MARKET
VALUE, VOLUME, AND TIME
18

19. % SHARE OF TOTAL MARKET: VALUE
Base: 11+ in the UK,
% SHARE OF
TOTAL VALUE
£972m £292m £235m £321m
ONLINE
APPS
PACKAGED
Q4 2011 Q1 2012 Q2 2012 Q3 2012
19

20. % SHARE OF TOTAL MARKET: VOLUME
Base: 11+ in the UK,
% SHARE OF
VOLUME
93m 49m 40m 51m
ONLINE
APPS
PACKAGED
Q4 2011 Q1 2012 Q2 2012 Q3 2012
20

21. % SHARE OF TOTAL MARKET: GAMING TIME
Base: 11+ in the UK,
% SHARE TOTAL GAMING TIME IN TYPICAL WEEK
154m 155m 160m 156m
hrs/wk hrs/wk hrs/wk hrs/wk
ONLINE
APPS
PACKAGED
Q4 2011 Q1 2012 Q2 2012 Q3 2012
21

22. WHAT IS DRIVING THE SHARE OF TIME IN THE
GAMES MARKET?
% SHARE TOTAL
GAMING TIME
Q3 2012
Portable 5% Console
PS3 11%
Downloads 7% 34%
Paid Free Console Xbox 360 X%
Console X% X% Game sites 5% Wii X%
PC X% X% PC/Mac Other
Social 11% 12% X%
Other X% X%
Total X% X%
156m
Multiplayer 11% hrs/wk
Other
Other
Android 4% Paid Free
X% X%
iOS 10% Paid Free
X% X%
22

23. WHAT IS THE MACRO VIEW
OF THE MARKET NOW?
23

24. WHERE IS THE MARKET NOW?
Base: all 11+ population
Size of the bubble is the share total value of market
Q3 2012
PLAY REACH - % PLAY IN POPULATION
Q2 2012
Q1 2012
Q4 2011
TIME SPENT – % SHARE OF TOTAL GAMER HOURS
24
D2, B3

25. IN SUMMARY
25

26. IN SUMMARY
Gaming is an increasingly complex and currently fragmented market
Kids embrace multiple gaming formats, indicating where the market is heading
What drives market VALUE is not the same as what drives VOLUME and TIME
Market dynamics shifting: low revenue formats take significant share of time
HOW WILL THESE DYNAMICS TREND OVER TIME AND WHAT ARE THE LONG
TERM IMPACTS?
26

27. February 2013
Thriving in the Mobile First Economy
Richard Firminger, GM, EMEA

28. Topics
Flurry Background and Services
App Consumption Trends WW
Freemium, Virtual Goods, Advertising & ARPDAU
Loyalty Matrix by Games Genre

29. Flurry Track Record
Number 1 Mobile Reach
Monthly Unique Users 850M
Number 1 Analytics
Application Developers 95K
Applications 290K
Monthly Unique
74B
Sessions
Number 2 Ad Network
Monthly Clips 130M

30. Flurry Two-Sided Advertising Platform
• Publishers: Direct, Indirect, desk-traded ad monetization
• Advertisers: Ad effectiveness, measurement and ROI analysis
• Built-in network effects

31. Unstoppable Market Growth
Worldwide in-application events measured by Flurry (billions)
1,200
1,100
1,000
900
800
700
600
500
400
300
200
100
-
May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov
08 08 08 08 09 09 09 09 09 09 10 10 10 10 10 10 11 11 11 11 11 11 12 12 12 12 12 12
Source: Flurry Analytics, May 2008 – November 2012, Billions

32. Competition for Consumers Continues to Increase
Over 1.4 million available apps on iOS and Android
GOOGLE PLAY iTUNES APP STORE 700
675
650
600 600
500
460
425
400
350
250 250
200
160
80
28 20
2
March 2009 December 2009 August 2010 May 2011 July 2011 October 2011 April 2012 June 2012 September 2012
Sources: Google, Apple; number in thousands

33. Addressable Market to Surpass 1 Billion Next Year
Active smartphone & tablet devices
Total Addressable Market
Aggressive: 5B WW Mobile Device Owners
Conservative: 2B WW Adults, Middle Class or higher
1.1 B
Upside:
Smartphones – dropping prices, especially Android
Tablets – little replacement, mainly new; sub for PCs
Connected TVs – to be shipped
Reference:
800 M
2.3 Billion Internet Subscribers today
331 M
76 M
23 M
Aug 2009 Aug 2010 Aug 2011 Aug 2012 Aug 2013E
Source: Flurry Analytics

34. A Global Phenomenon
Top Countries by Active iOS & Android Devices (millions)
181
167
35 28 27 22 19 19 14 14
US China UK Japan S. Korea Germany France Canada Brazil Spain
Source: Flurry Analytics active devices Oct 2012

35. 30+ Countries Doubled in Last 12 Months
Fastest Growing iOS & Android Markets by Active Devices
293%
269% 260%
235%
209% 202% 197%
181% 180% 180%
China Vietnam Colombia Chile Ukraine Venezuela Turkey Philippines Egypt Russia
Source: Flurry Analytics, Oct 2011 – Oct 2012, countries with at least 500k active devices as of Oct 2011

36. App Economy Expanding Internationally
Distribution of iOS and Android App Sessions
100%
25%
90%
80% 32%
70%
60% 27%
50% 39%
40%
48%
30%
20%
10% 29%
0%
Oct 2011 Oct 2012
UNITED STATES (TOP RANK) REST OF TOP 10 (RANKS 2 – 9) REST OF WORLD
Source: Flurry Analytics

37. How Mobile Stacks Up Against TV and The Web
Web vs. Mobile App vs. TV Consumption, Minutes per Day
180
160
140 162 168 168
120
100
127
80
94
60
40
70 66 72 70
20
-
Dec 2010 Dec 2011 Dec 2012
Web Browsing Mobile Applications Television
Sources: comScore, Alexa, U.S. Bureau of Labor Statistics, Flurry Analytics

38. Tablet Usage More Games & Entertainment Oriented
Time Spent per Category, Smartphones versus Tablets
Productivity
Entertainment News 1%
3% 2%
Other Other
Lifestyle Utilities
11% 7%
3% 4%
Health &
Fitness
Games Entertainment
3%
39% 9%
Social
Utilities Networking
17% 10%
Games
67%
Social
Networking
24%
Smartphones Tablets

39. App Revenue Is Scaling
20
Billions
18
16
14
12
10
8
6
4
2
0
2008 2009 2010 2011 2012
Virtual Goods Advertising
Source: eMarketer, Mary Meeker (KPCB)

40. Gaming: Money, Midcore and Maturity
ARPDAU among top 1,000 grossing iOS free-to-play games
Over $0.75, 3%
Over $0.75,
$0.25 - $0.75 15%
15%
Under $0.25,
53%
$0.25 - $0.75
Under $0.25,
32%
82%
Sep 2011 Sep 2012
Source: Flurry Analytics, 480 free-to-play games

41. Loyalty by Application Category

42. Mobile Game Loyalty Matrix (Freemium, iOS)

43. Mobile Game Age & Gender Matrix
(Freemium, iOS)