THE ASIAN GAMES MARKET SIZING UP OPPORTUNITIES C A SUAL G AME S SEC T OR REP OR T 2016
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East Meets West: In a rapidly globalizing games market, what are the opportunities for non-Asian companies in Asia and vice versa?
The Trade Balance of Public Companies In 2015, $69.6 billion of the $91.8 billion dollar global games market was generated by almost 70 public companies worldwide. Asian public companies generated $36.2 billion, of which 32%, or $11.4 billion, was generated outside of Asia. Sony and Nintendo contributed almost half of this, illustrated by the dominance of the console segment. Vice versa, 16% of the $33.4 billion generated by non-Asian public companies was generated in Asia: $5.3 billion. More than half of this, $3.0 billion, is from Google and Apple taking home 30% of app store revenues. Game revenues generated by Asian public companies outside of Asia
Game revenues generated by non-Asian public companies in Asia
10%
17% $11.4BN 32%
64%
OF TOTAL
21% 19%
$5.3BN 16% OF TOTAL
69%
PC Games Source: Newzoo Global Games Market Report Premium
Console Games
Mobile Games
In 2016, Japan, Korea, China & Greater SEA Will Total $45Bn Game Revenues
$99.6Bn
Global Games Market Revenues Per Sub Region | 2016e
Global game revenues in 2016
W-EU $17.3Bn +4.4%
NAM $25.4Bn +4.1%
E-EU $3.0Bn +7.3%
MEA $3.2Bn +26.2%
CHINA $24.4BN +15.1%
REST Apac $0.8Bn +53.5%
45% Of the global games market revenues come from key Asian Markets
SOUTH KOREA $4.0Bn +2.3%
JAPAN $12.4Bn +1.2%
SEA $3.7BN +26.4%
OCEANIA $1.3Bn +2.1%
LATAM $4.1Bn +20.1%
Source: Newzoo Global Games Market Report Premium
2016e Game Revenues by Segment | Japan, Korea, China & Greater SEA
11% 2%6% Casual Webgames
10%
PC/MMO
TOTAL REVENUES
$45BN
Smartphone Tablet TV/Console
36%
Handheld Console Source: Newzoo Global Games Market Report Premium
35%
Smartphone takes the highest share of revenues in the key Asian markets in 2016 with 36%, or $16.0 billion. This is just ahead of PC/MMO games, which will generate $15.4 billion this year. The individual markets vary wildly when it comes to the most lucrative segments. In Japan for example, over 50% of revenues come from console games. Combined with the other key markets, the share taken by console games drops to below 15%. In SEA, more than half of all revenues come from mobile gaming. S I Z I N G U P A S I A N O P P O R T U N I T Y | CA S UA L G A M E S A S S O C I AT I O N   3
This Year, 11 Asian Countries Generate 55% of Global Mobile Game Revenues Key KPIs | Global vs. China, Japan, Korea & Greater SEA | 2016e
CHINA, JAPAN, KOREA & GREATER SEA POPULATION
VS
29%
35%
0.9 Bn GAMES REVENUES $44.6 Bn MOBILE GAME REVENUES $20.4 Bn
ONLINE POPULATION 3.4 Bn
1.2 Bn GAMERS
POPULATION 7.4 Bn
2.2 Bn ONLINE POPULATION
THE WORLD AS A WHOLE IN 2016
40%
45%
55%
GAMERS 2.1 Bn GAMES REVENUES $99.6 Bn MOBILE GAME REVENUES $36.9 Bn
Source: Newzoo Global Games Market Report Premium
2016e Global Mobile Game Revenues Globally, the key Asian markets will account for an impressive 55% of all mobile game revenues in 2016. The rest of APAC will generate 3% of global revenues, the majority of which will come from India. The remaining regions will take 42% of all revenues or $15.3 billion. The US alone will generate $6.7 billion this year and is the largest Western market. 4
42%
TOTAL REVENUES
$36.9Bn
55%
3%
Key Asian Markets
Rest of APAC
Rest of APAC
Source: Newzoo Global Games Market Report Premium
China & Japan: A Snapshot
ASIAN OPPORTUNITY
China 2015 Mobile Revenues
$7.1 Bn Estimate 2015 “Western” Revenues (of revenues of top 100 iOS games) Share:
5.7%
55%
2015 App Store Share
($400M)
6%
Comparable to all games revenues in:
Poland
39%
Google Play
Other
iOS
China 2016e Game Revenues $24.4 Bn
YoY Growth 15%
Mobile Revenues $10.0Bn
Share Mobile Games 41%
Japan 2015 Mobile Revenues
$6.2 Bn
7%
Share:
2015 2015 App Store App Store Share Share
Estimate 2015 “Western” Revenues (of revenues of top 100 iOS games)
4.9%
41%
($300M)
52%
Comparable to mobile game revenues in:
Italy
Other
Google Play
iOS
Japan 2016e Game Revenues $12.4Bn
YoY Growth 1.2%
Mobile Revenues $6.5Bn
Share Mobile Games 52%
S I Z I N G U P A S I A N O P P O R T U N I T Y | CA S UA L G A M E S A S S O C I AT I O N 5
Source: Newzoo Global Games Market Report Premium
South Korea & Greater SEA: A Snapshot South Korea 2015 Mobile Revenues
5%
Estimate 2015 “Western” Revenues (of revenues of top 100 iOS games)
2015 App Store Share
$1.8 Bn Share:
14.2%
($260M)
79% 79%
Comparable to mobile game revenues in:
Brazil
16% 16%
Other
Google Play
iOS
South Korea 2016e Game Revenues $4.0Bn
YoY Growth 2.3%
Share Mobile Games 48%
Mobile Revenues $1.9Bn
Greater Southeast Asia 2015 Mobile Revenues
$1.4 Bn
Estimate 2015 “Western” Revenues (of revenues of top 100 iOS games)
21%
2015 App Store Share
Share:
~33%
25%
($470M)
Comparable to mobile game revenues in: 54%
Canada Greater Southeast Asia 2016e Game Revenues $3.7Bn 6
YoY Growth 26.4%
Other
Google Play
Mobile Revenues $2.1Bn
iOS
Share Mobile Games 56%
Source: Newzoo Global Games Market Report Premium
Asian Companies Continue Impressive Growth
ASIAN OPPORTUNITY
Top 10 Public Asian Companies by Game Revenue | 2014 vs. 2015
FY 2015 Revenue FY Revenues
2014Revenues Revenues FYFY2014
21%
YoY Growth for Tencent
$4.7Bn
YoY growth for the top 10 companies
Source: Newzoo Global Games Market Report Premium
Rising Asian Stars NetEase owns the number one and two mobile titles in China with Fantasy Westward Journey and Fantasy Westward Journey 2. Its growth is mainly driven by the success of its mobile segment. In 2015, mobile revenues accounted for 45% of NetEase’s $2.8 billion game revenues. This was only about 10% of the $1.6 billion generated in 2014. NetEase plans to launch Fantasy Westward Journey: Warriors, Raven, and a series of new game titles based on the best-selling novels by Mr. Gu Long in the coming months. Mixi was the fastest growing public game company in 2015. It achieved 187% growth YoY, growing to $1.5 billion game revenue in 2015. This growth is mainly due to Mixi’s popular mobile game Monster Strike, which has now been downloaded more than 30 million times. The popular game has expanded to anime, the Nintendo 3DS, and esports with the Monster Strike Grand Prix 2016. Its success on mobile gaming has led Mixi to recently publish two new mobile titles: Black Knight Rises and Marvel Tsum Tsum. Garena established itself in 2010 with the launch of Garena+, an online platform where people can meet, chat and play games. Since then, it has been one of the fastest growing internet companies in Southeast Asia, growing from four to 4500 employees and earning more than $300 million in annual revenues. Garena exclusively distributes games like League of Legends, Heroes of Newerth, FIFA Online 3, Point Blank and AVA in Southeast Asia, while also owning mobile hit Thunderstrike. Garena is also well known for its esports activities. S I Z I N G U P A S I A N O P P O R T U N I T Y | CA S UA L G A M E S A S S O C I AT I O N 7
See you in San Francisco Please join us for the thirteenth annual Casual Connect USA. An investment and innovation hub, San Francisco is of central importance for the games industry. Great speakers, interesting and professional industry insiders, and of course, signature evening events. http://usa.casualconnect.org
For press inquiries, please email jessica@casualgamesassociation.org Learn more about the games industry with the best speakers, networking, lectures and data to help you succeed in a crowded market at: Casual Connect USA, San Francisco: 18 - 20 July 2016 Casual Connect Tel-Aviv: 1 - 3 November 2016 Casual Connect Europe, Berlin: 7 - 9 February 2017
Casual Connect USA in San Francisco 18 - 20 July 2016
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