Mobile Will Grow to 60% Market Share, Driven by Expansion in Casual and Hardcore Ends of the Spectrum Worldwide Consumer Spending on Games USD (Billions) In 2018, we saw the mobile gaming experience mature. Fortnite $100B and PUBG — along with upgraded smartphone specs — drove multiplayer game mechanics that put them on par with real-time $80B strategy and shooter games on PC/Mac and Consoles in a way that hadn’t been done before, all while complementing existing $60B mobile gaming habits. For many publishers, mobile has the scale — and growth — that makes it a particularly compelling platform. $40B On the opposite side of the spectrum, we expect hyper-casual games with simple gameplay to drive growth in downloads and $20B adoption in 2019. $0B Consumer spend in mobile gaming will reach 60% market share 2013 2014 2015 2016 2017 2018 2019F among all gaming platforms: PC/Mac, console, handheld and Mobile Gaming All Other Gaming mobile. With the aftermath of China's game licensing freeze continuing into 2019, Chinese firms will push harder for Note: All totals include applicable digital and physical game spending, but exclude ad revenue. Mobile gaming includes all app stores (iOS App Store, Google Play, Windows Phone Store, Amazon, Samsung Galaxy and third-party Android stores). Home game console total includes discs, digital games and gaming-related international expansion and mergers and acquisitions could subscription services (Xbox Live and PlayStation Plus). Source: App Annie & IDC become more common. 63 COPYRIGHT 2019