87% of Facebook Gamers also Play on Casual Game Websites

Share of Wallet Significantly Lower at 21%, Totaling $4.5bn in 2011.

Social Network Gaming Most Popular in Emerging and Asian Markets.

AMSTERDAM, February 28, 2012 – Newzoo’s latest Trend Report on Online Casual and Social Games shows that 126 million Americans, or 87% of all gamers aged 10 to 65, play games on social networks or casual game websites such as Pogo, AGame, Miniclip, AddictingGames, Yahoo and King.com. In the US social networks, obviously dominated by Facebook, attract 60% of these gamers, 41% of time and 38% of money spend. The share of paying gamers averages 22%, totaling to 28 million Americans. The situation in European, Asian and Emerging markets is comparable, in terms of share of total game time and wallet. The only exception is  that Europeans are less likely to spend money. Also, the popularity of social networks as game platform is significantly higher in Emerging and Asian markets than in the West.

The Trend Report with key facts and graphs can be found here: www.newzoo.com/trendreports

Newzoo’s CEO Peter Warman comments on the recent discussions on social network gaming: “Despite claims that games on social networks show limited growth potential, Facebook and local social networks in European, Asian and Emerging markets remain essential to any game company’s strategy. Simply because the majority of people spends a large amount of his or her online time here. Even more so in Emerging and Asian markets, where social networks often are the primary entry to the web for consumers . I was therefore not surprised to see that social games monetize relatively well  in these younger markets compared to the West, at least in terms of share of people spending money. In a couple of weeks we will have insight into game behavior and spending in Poland and Turkey and I expect to see the same there. ” 

The online casual games market, traditionally offering free ad-supported games, is gaining more and more traction when it comes to consumer revenues. All the casual websites combined attract a significantly larger gaming crowd than Facebook, even in the US. Partially driven by the rise in player acquisition costs, game companies have increasingly turned towards these destinations, integrating their free-to-play games with in-game business models. To get consumers to spend money, many  of these games have a higher level of engagement and have extended the range of genres available on these websites.  The uptake of so-called “mid-core” games has created a significant shift towards more paying male “casual”  as well as “social” gamers. These changes are giving the consumers more opportunities to spend money where they spend time, closing the current gap between the two resulting in significant revenue growth.

About Newzoo

Newzoo ( www.newzoo.com) is an international market research firm focused purely on the games industry. The company aims to provide the best independent consumer market data across all game platforms and business models. It also operates the global B2B portal Gamesindustry.com and publishes the bi-annual Games Industry Black Book. Newzoo’s clients include Kabam, GREE, Nintendo, Blizzard, GlobalCollect, EA, Gamehouse, Microsoft, SpilGames, RTL Group and Jagex. www.newzoo.com.

Newzoo is an exhibitor at GDC San Francisco, booth 2102. Peter Warmans keynote is on the 7 th of March as part of the Monetization track.  


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