MCV Around the World 2015

AROUND THE WORLD All of MCV’s in-depth territory reports from 2014, chronicling the world of video games

Wholesaler and distributor of video games, consoles and accessories

AROUND THE WORLD Contents nt nts 04 06 08 10 12 14 16 18 20 22 24 26 28 30

Singa gapore N Norway New w ZZealand Zee Sweden Japan Israel Estonia France Italy Bangladesh Switzerland Germany Turkey South Korea

32 34 4 36 38 4 40 42 2 44 46 48 50 52 54 56

Mexico Poland Belgium Netherlands Brazil Slovenia S o Finland inla n an Thailand Ukraine Austriaa Sri Lanka Pakistan India

Wholesaler and distributor of video games, consoles and accessories

FACTFILE SINGAPORE Sponsored by

Wholesaler and distributor of video games, consoles and accessories

INTERNATIONAL FACTFILE: SINGAPORE Population: 5,312,400 Currency: Singapore dollar (S$) GDP (Per Capita): $50,323 Languages: English, Malay, Chinese, Tamil KEY RETAILERS FunzSquare, Hi-Star Multimedia, HMV, K H Time Trading, Mega Multimedia, Playcraft, Qisahn, Replay Interactive, Seow Choon Games, SG Cardmart, Teraforce Distribution, Yimpact

NOTABLE GAMES FIRMS WITH A LOCAL OFFICE Boomzap, DeNA, Disney Interactive, Electronic Arts, GREE, LucasArts, Microsoft, Namco Bandai, Sony Computer Entertainment, Tecmo Koei, Ubisoft

TOP DEVELOPERS Activate, Asiasoft Online, Boomzap Entertainment, Daylight Studios, Ludochip, Lionstork Studios, Magma Studios, Planet Arkadia, Ratloop Asia, Zealot Digital

SINGAPORE is part of the lucrative Asia-Pacific region, which is the largest territory for video games in the world.

According to marketintelligence firm Niko Partners, the Asia-Pacific market is now worth over S$830m (£394m) and is estimated to reach S$1.5bn (£715m) in the next three years.

Similar to other territories in the region, Singapore is dominated by PC gaming. Internet cafes (known in the region as PC Baangs) are hugely popular and a big part of gaming culture in Singapore.

It’s also home to a strong eSports gaming scene as these social venues are often

packed out with gamers playing competitive titles such as League of Legends and DOTA 2.

But Singapore is different to the likes of China or South Korea in that consoles do maintain a presence in the country. However, the number of consumers buying dedicated games devices has started to dwindle.

Video game sales in Singapore totalled S$370m (£176m) in 2012, a two per cent drop on the previous year, reports Euromonitor International.

And it’s a decline fuelled by the diminished demand for consoles in the country as more consumers opt to play tablet and smartphone titles over traditional console releases.

Video game sales in Singapore totalled £176m in 2012, a two per cent drop on the previous year.

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SINGAPORE FACTFILE

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FACTFILE NORWAY Sponsored by

Wholesaler and distributor of video games, consoles and accessories

INTERNATIONAL FACTFILE: NORWAY Population: 5,051,275 Currency: Norwegian Krone GDP (Per Capita): $101,271 Languages: Norwegian KEY RETAILERS Coop, Elkj.p, Expert, Spaceworld, Platekompaniet, CDON.com, Komplett.no, GAME

TOP DEVELOPERS Artplant, Funcom, Ravn, Rock Pocket Games, Snowcastle, Turbo Tape Games

MAIN DISTRIBUTORS Bergsala, Game Outlet, Koch Media, Nordic Game Supply, Nordisk Film, Pan Vision

PUBLISHERS WITH A LOCAL OFFICE Activision, Electronic Arts, Microsoft, Namco Bandai, Ubisoft, Warner Bros

DON’T let the size of Norway fool you as it boasts one of the stronger video games markets in the whole of Europe.

Norway is arguably the most thriving market in the lucrative Nordic region, which last year totaled just under €1bn (£821m) according to trade body ANGI. Despite having the lowest population in the entire Nordic region, Norway ended 2013 with the second most valuable market in the territory as its digital and retail game sales were valued at just over €220m (£179m).

In fact, the volume and value of Norway’s retail sales accounted for 23 and 25 per cent of the entire Nordic region respectively.

This success is likely a result of the 3.1 per cent economic

growth experienced in Norway throughout the past 12 months.

It’s also home to one of the lowest unemployment rates in the world at just 3.2 per cent.

As a result, Norway has become the wealthiest country in the region with a GDP of $101,271 and has seen the majority of Norwegian consumers spend more of their sizeable disposable income on video games.

New releases are relatively wellpriced, too (at least compared to some other European markets).

Xbox One is yet to launch in the country but the average price of a new PS4 title is NOK495 (£49), while the console itself costs NOK3990 (£397.50).

However, Xbox 360 and PS3 game prices are quite high at around £49.

In 2013 the volume and value of Norway’s retail sales accounted for 23 and 25 per cent of the entire Nordic region respectively.

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NORWAY FACTFILE

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FACTFILE NEW ZEALAND Sponsored by

Wholesaler and distributor of video games, consoles and accessories

INTERNATIONAL FACTFILE: NEW ZEALAND Population: 4,537,081 Capital City: Wellington Currency: New Zealand dollar GDP (Per Capita): $40,481 KEY RETAILERS Dick Smith Electronics, EB Games (GameStop), Harvey Norman, JB Hi- Fi, Kmart, Noel Leeming, The Good Guys KEY DISTRIBUTORS All Interactive, Gamewizz, QV Software, Tuff Kat

TOP DEVELOPERS Binary Star, Boolba Labs, CerebralFix, Custard Square, Gameloft, Grinding Gear Games, Launching Pad Games, Ninja Kiwi, Pik Pok, Runawayplay, Sidhe Interactive, Stickmen Studios NOTABLE GAMES FIRMS WITH A LOCAL OFFICE EA, Microsoft

NEW Zealand is similar to the UK in that its digital sales overtook traditional retail sales last year.

The latest research from the Interactive Games & Entertainment Association (IGEA) found that New Zealanders are increasingly buying their video games digitally as the sector generated $NZD162m (£84m) last year alone and accounted for 50 per cent of the entire spend in the market.

But strong support for retail remains as sales of physical games totalled NZD$133 (£69m) throughout the whole of 2013.

“We’re seeing more New Zealanders consume games across a variety of consoles and mobile devices,” said Mark Goodacre, New Zealand director at IGEA.

“It is encouraging to see traditional retail sales are strongly supported by consumers choosing to purchase video games content both online and offline.

“The interactive games industry is continuing to evolve as consumers of all ages and backgrounds continue to play games at home and on-the-go and we expect sales figures to reflect this change in the market.”

A closer look at the market reveals mobile games accounted for more than half of the spend on digital coming in at NZD$92m.

In fact, figures from the IGEA report indicate that consumers spend more than twice on in-game transactions compared to up-front mobile game purchases.

Digital games generated £84m last year and accounted for 50 per cent of the entire market spend.

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NEW ZEALAND FACTFILE

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FACTFILE SWEDEN Sponsored by

Wholesaler and distributor of video games, consoles and accessories

INTERNATIONAL FACTFILE: SWEDEN Population: 9,658,301 Currency: Swedish krona GDP (Per Capita): $57,297 Languages: Swedish KEY RETAILERS CDON.com, El-giganten, GameStop, GAME, MediaMarkt, Webhallen Spaceworld, Antilla MAIN DISTRIBUTORS Bergsala, Koch Media, Namco Bandai, Nordic Game Supply, PAN Vision, Wendros, Ztorm (Digital)

SWEDEN is by far the biggest region in the Nordic region both in terms of its geographic size and its games market.

According a report by Nordic game trade body ANGI, 35.6 per cent of sales in the region, are in Sweden, while 35.5 per cent of the Nordic’s total retail revenue is generated in the country.

This is unsurprising considering that Sweden’s population nearly doubles that of every other country in the Nordics.

In 2013 €125.3m (£100.5m) was made from retail sales in the country – a nine per cent decline on 2012 – and a figure dwarfed by the €231.7m (£186m) generated from digital

TOP DEVELOPERS Arrowhead, Avalanche Studios, EA DICE, Fatshark, Mojang Productions, Paradox Studios, Starbreeze, Ubisoft Massive, Tarsier Studios, Rovio Sweden, King.com NOTABLE GAMES FIRMS WITH A LOCAL OFFICE Activision Blizzard, Electronic Arts, Koch Media, Microsoft, Namco Bandai, Nordic Games, Paradox,Ubisoft, Warner Bros

sales – in total, taking into account MMOs, social, mobile, PC and console gaming.

The PS3 continues to be the bestselling platform in Sweden, with software sales for Sony’s platform rose 14 per cent in 2013 to €47m (£37.7m) in 2013, much higher than the €37m (£30m) generated by game sales for the Xbox 360.

The PlayStation 4 launched in Sweden at the same time as the UK and generated €2.5m (£2m) in revenue.

Individual PS4 games in the region are pretty pricey, though, setting consumers back €70 (£56).

Xbox One is yet to launch in the region, but Microsoft’s new hardware will be hitting Sweden in September.

In 2013 £100.5m was made from retail sales in Sweden – a nine per cent decline on 2012.

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SWEDEN FACTFILE

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FACTFILE JAPAN Sponsored by

Wholesaler and distributor of video games, consoles and accessories

INTERNATIONAL FACTFILE: JAPAN Population: 127.6million Currency: Yen GDP (Per Capita): $37,135 Capital City: Tokyo Languages: Japanese KEY RETAILERS Animate, Big Camera, Enterking, Futaba, GEO, Gamers, Ikyyusan, Jusco, Nojima, Rakuten, Sofmap, Tosho, Tsutaya, TV Panic, Wanpaku, Yodobashi Camera MAIN DISTRIBUTORS Ajioka, Happinet, Jesnet

Camelot, Cavia, DeNA, Dimps, From Software, Game Freak, Genki, Grasshopper Manufacture, HAL Laboratory, Idea Factory, Intelligent Systems, Kemco, Kojima Productions, Level-5, Mistwalker, Namco Tales Studio, NIntendo, Platinum Games, etc.

TOP DEVELOPERS Acquire, Aki, Alfa System, Arc System Works, Banpresto,

LOCAL PUBLISHERS Disney, Capcom, Konami, Bandai Namco, Nintendo, Sega, Sony Japan, Square Enix, Tecmo Koei

JAPAN has been one of the central markets in the video games industry ever since it came into existence.

The market value fell last year.

According to data provided by Japanese games publication Famitsu the market was valued at ¥408.97bn (£2.3bn) in 2013 – a decline of nine per cent year-on-year.

Only ¥155bn (£899m) was made from consoles in 2013, compared to the ¥177bn (£1bn) made in 2012. This forms a year-on-year decline of 12.7 per cent.

Unsurprisingly Nintendo and Sony rule the roost in the country. Of hardware sold

in 2013, 69.1 per cent was Nintendo’s while 42.6 per cent was Sony’s. These figures do not include the PS4 as it launched this February, selling 322,083 units in its first 48 hours on sale.

The 3DS was 2013’s most popular hardware, forming 58.6 per cent of consoles sold, and 49 per cent of last year’s software was for the handheld.

Meanwhile a mere 0.2 per cent share of hardware sold in 2013 was Xbox’s. This is unsurprising as Microsoft has always struggled to get a foothold in Japan. And like many regions, the Xbox One is yet to launch in Japan, but will be arriving this September.

Of hardware sold in 2013, 69.1 per cent was Nintendo’s and 42.6 per cent was Sony’s

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JAPAN FACTFILE

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FACTFILE ISRAEL Sponsored by

Wholesaler and distributor of video games, consoles and accessories

INTERNATIONAL FACTFILE: ISRAEL Population: 8,146,300 Currency: New Shekel GDP (Per Capita): $38,004 Capital City: Jerusalem KEY RETAILERS BUG, Olsale, Hameir, MediaGame, Toys ‘R’ Us, VGS Games, K.S.P Group KEY DISTRIBUTORS Edlee Entertainment, ISFAR, Hed Arzi Music, Oberon Media, Matomy Media Group, Benda Magnetic

TOP DEVELOPERS Funtactix, Side-Kick, Corbomite Games, Nitako, Nordau Creative, eMaginarium, SpikySnail, Plarium, Playful Shark, Playtika, Space Cowboys, We Create Stuff, Tabtale

gadgets and games on the fly.

ISRAEL continues to be one of There has never been a specific the fastest growing video games trade company working on markets in the world, despite a creating stores solely for games lack of physical outlets.

– it has always revolved around The Middle Eastern country’s other stuff.” games industry made a profit Marmor added that the lack of of approximately $450 million physical stores means there’s a in 2013, according to non-profit buoyant digital download market. game development initiative “I buy all of Made in my games from Jerusalem.

Steam and Part of Origin, and I the focus on know a lot of development, other people rather than retail, who do that. is reinforced No-one goes to by a lack of a store to buy specialist chains, Amichai Neve Marmor, GamesIS games in a box,” with games he explained. sold primarily by There are general stores. also a variety of new digital Distribution is similarly limited distribution services springing up to only a few companies, with in the region.

EdLee Entertainment, SFAR and Israeli firm Playcast allows Hed Arzi distributing the majority TV companies to offer games of titles from big publishers. directly to consumers via Amichai Neve Marmor, a a cloud-based ‘gaming on member of the audit committee demand’ service, much like for the Israeli video game Western firm OnLive. The service organisation GameIS, told MCV: was recently added to the Ouya “In Israel it was always chains micro-console. that usually sold peripherals,

No-one in Israel goes to a store to buy games in a box.

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ISRAEL FACTFILE

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FACTFILE ESTONIA Sponsored by

Wholesaler and distributor of video games, consoles and accessories

INTERNATIONAL FACTFILE: ESTONIA Population: 1,315,819 Capital City: Tallinn Currency: Euro GDP (Per Capita): $20,179 KEY RETAILERS Euronics, Klick, Reeal, Microlink Computers, Anttila, Digital Trade KEY DISTRIBUTORS PAN Vision AB, ICM, Egmont Estonia, ACC Distribution

TOP DEVELOPERS: Creative Mobile, Playtech, Test3 Projects, First Sight Games, Cellar Ghost OTHER ORGANISATIONS: GameFounders, IGDA Estonia

board games and toys too, or MUCH like the UK, Estonia is are general electronics stores. seeing a rise in the number of “To buy new games I usually consumers shopping online. order them second hand from According to analyst Eurostat, Amazon.co.uk, where there’s a 29 per cent of Estonians aged between 16 and 74 shop online – much broader variety than locally and affordable prices due to their almost three times less than the ‘pre-loved’ nature. Shipping costs 82 per cent of British shoppers are quite reasonable so that isn’t who do likewise. a deterring factor.”

This is a huge increase since Maisto added a decade his belief ago, with the that Estonian number of online consumers shoppers having weren’t alone in grown by over their increasing three times preference for since 2005. online retail.

However, “I think the unlike the UK, focus on digital Estonians distribution is looking to more of a general purchase games Francesco Maisto, Cellar Ghost worldwide trend are left with very rather than just an Estonian-only few options should they wish to phenomenon,” he said, saying that purchase games in a dedicated the country’s late-blooming games retail outlet. industry was partly responsible Francesco Maisto, founder of for the tough market for stores.

4444 developer Cellar Ghost, “Physical retail is generally meant told MCV: “There’s definitely a lack for triple-A games, and so far of physical outlets in the country. there isn’t any Estonian company “As far as I know, there’s only big enough or with enough capital one retail store solely dedicated to embark in the development of a to video games. Other video game-selling stores typically sell triple-A title,” he said.

There’s only one retail store solely dedicated to video games in Estonia.

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ESTONIA FACTFILE

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FACTFILE FRANCE Sponsored by

Wholesaler and distributor of video games, consoles and accessories

INTERNATIONAL FACTFILE: FRANCE Population: 66,616,416 Capital City: Paris Currency: Euro GDP (Per Capita): $45,123 KEY RETAILERS Micromania, GAME, FNAC, Carrefour, Auchan, Leclerc

TOP DEVELOPERS Ubisoft, Quantic Dream, Gameloft, Eugen Systems, Bigpoint

KEY DISTRIBUTORS BigBen Interactive, Micromania, Just For Games, Koch Media, Exertis Gem

PUBLISHERS IN THE REGION: Ubisoft, Capcom, EA, ActivisionBlizzard, Gameloft

FRANCE is one of the world’s most prosperous nations for games. Its industry was the second-largest cultural sector in the world in 2011, worth over €52 billion according to Invest In France.

The industry is also the largest cultural sector by sales in France, with revenue that surpasses those of cinema, video and music. In Europe, the French games market is second only to the UK in terms of scale.

This fertile landscape for games is driven further by high consumer engagement, with 80 per cent of those living in France having played games at least once during 2013, according to French trade body SELL. The most common form of gaming among the 31 million regular French players is online multiplayer.

According to Ipsos MediaCT, computer games are the most popular medium, with 41 per

cent of gamers playing either on PC or laptop.

Of the 38 per cent of those who purchase games, a fifth buy titles brand new at retail, while 13 per cent purchase them second-hand and eight per cent opt for digital.

France’s heavy investment in the sector includes offering up to 20 per cent off of game creation expenditure and up to 30 per cent off of R&D to approved companies Given such efforts, it’s little surprise that many big publishers and developers have major European headquarters located in the country, from native publishers Ubisoft and Vivendi to Japanese giant Capcom and American juggernaut EA. Thanks to this healthy industry, France is now the second largest producer of video games by volume after the US – with no signs of slowing down.

Of the 38 per cent of those who purchase games in France, a fifth buy titles brand new at retail.

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FRANCE FACTFILE

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FACTFILE ITALY Sponsored by

Wholesaler and distributor of video games, consoles and accessories

INTERNATIONAL FACTFILE: ITALY Population: 60.92 million Capital City: Rome Currency: Euro GDP (Per Capita): $36,216 KEY RETAILERS Auchan, Carrefour, Euronics, Expert, Feltrinelli, FNAC, GamesBond, GamesLife, GameStop, Iper, MediaMarkt, Mondadori, OpenGames

KEY DISTRIBUTORS Gruppo Pam, NeWave, Koch Media, Raven Distribution

DESPITE being the home of characters including Assassin’s Creed’s Ezio and the godfather of gaming himself, Mario, Italy’s own games industry is a relative bud compared to much of the Western world.

According to Italian trade agency ITA and games industry association AESVI, the market has only begun to take off in the last five years.

Many of Italy’s 70-plus developers are working on mobile and browser games, with only a minority taking an interest in consoles. According to market tracker Newzoo, this is likely to be driven by the continuing preference for tablet gaming in the region, with Italy the third biggest country in Europe in terms of tablet gaming popularity. Of the 21 million gamers in Italy, 5.4 million of them play games on a tablet, with 12.3 million playing on smartphones.

Unsurprisingly given the country’s enjoyment of mobile games, social and casual titles are the most popular segment in Italy, followed by PC/Mac and console games. Almost a quarter (23.7 per cent) of Italian gamers are platform-agnostic, playing on all devices. Interestingly, PC gaming in Italy is more popular than in other European countries, with 93 per cent of gamers playing on a computer or laptop.

Italy is ninth in the world in terms of global games revenue, driven by a high proportion of gamers – 56.5 per cent – who pay for games, including via in-games purchases.

This number is higher than countries like France (56.2 per cent) and Spain (55.3 per cent).

However, Italy also experiences quite a high rate of piracy.

Three eighths of PC and Mac gamers who pay for games also download titles from filesharing sites at least once a month.

TOP DEVELOPERS Ubisoft Milan, Milestone, Artematica, Geniaware, Molleindustria, Playstos

Three eighths of Italian PC gamers who buy games also download titles from filesharing sites at least once a month.

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ITALY FACTFILE

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FACTFILE BANGLADESH Sponsored by

Wholesaler and distributor of video games, consoles and accessories

INTERNATIONAL FACTFILE: BANGLADESH Population: 150,039,000 Capital City: Dhaka Currency: Taka GDP (Per Capita): $899 KEY RETAILERS Kaymu, NittoDin, Bhaat

TOP DEVELOPERS Massive Star Studio, 143play, Rise Up Labs, IBT Games, Tapstar

KEY DISTRIBUTORS Computer Source Ltd, Games World

PUBLISHERS IN THE REGION Microsoft, Massive Star Studio

DESPITE being one of the world’s most densely populated countries, Bangladesh’s games industry lags behind most of its similarly-sized counterparts.

Gaming in the country only started to grow 20 years ago, thanks to a drop in the average price of home PCs. This also catalysed regional game development, which began to take off in the early 2000s.

However, the games market in the country has been stunted by the continuing affliction of piracy.

According to the 2013 Global Software Piracy Study, Bangladesh has a piracy rate of 87 per cent, making it the largest user of pirated software in the Asia-Pacific region and sixth largest in the world. BSA estimates that the commercial value of unlicensed software used in Bangladesh is over $197 million.

In comparison, the UK has a much lower piracy rate of 24 per cent, but suffers a costlier effect – an estimated $2 billion worth of

software licenses are lost to illegal downloads each year.

It may be the high risk of piracy that keeps major firms from launching their latest releases in the country. Both the PS4 and Xbox One are yet to arrive in the market, with Bangladeshi gamers having to make do with the PS3 and Xbox 360 for the time being.

But there has been some recent investment in the territory, as the development sector of Bangladesh begins to take off. The Bangladesh arm of Microsoft has held several Imagine Cup Game Camp workshops, aimed at driving the growth of the games industry.

March 2014 saw the first game commercially published in Bangladesh, Hatirjheel: Dream Begins. The title was developed

by Massive Star Studios in collaboration with the country’s Information and Communication Technology Division.

Bangladesh has a piracy rate of 87 per cent, making it the largest user of pirated software in Asia-Pacific.

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BANGLADESH FACTFILE

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FACTFILE SWITZERLAND Sponsored by

Wholesaler and distributor of video games, consoles and accessories

INTERNATIONAL FACTFILE: SWITZERLAND Population: 8,014,000 Capital City: Bern Currency: Swiss Franc GDP (Per Capita): $86,145 KEY RETAILERS Mediamarkt, Interdiscount, Fust, Manor, Fnac, World of Games

TOP DEVELOPERS Giants Software

KEY DISTRIBUTORS Koch Media, ABC Software

PUBLISHERS IN THE REGION Microsoft, EA, Ubisoft, Warner Bros, Nintendo, Sony CEE

AS one of the European territories with a high purchasing power per capital, Switzerland remains a region where consumers are likely to purchase multiple games and platforms each year.

According to analyst PricewaterhouseCoopers (PwC), this purchasing power also factors into the pricing strategy of publishers and retailers; games are on average more expensive in Switzerland than in other European countries.

Meanwhile, Deloitte reports that speciality chains are preferred by Swiss consumers for technology and video game purchases, with 58 per cent of consumer opting to purchase titles in dedicated game stores. A third (33 per cent) instead opt for traditional department stores, while less than one in 10 consumers (eight per cent) buy games in supermarkets or hypermarkets.

Swiss consumers are also avid users of the internet, with 43 per cent using online sources

only to gather information and advice on games. The proportion is only behind that of music (48 per cent) in terms of how many consumers exclusively use the internet to gather information on products. A quarter (27 per cent) rely on in-store customer service for assistance, while 30 per cent utilise both.

PwC states that online titles are the most popular segment of the games market in Switzerland, worth an estimated CHF 199 million (ÂŁ129.9m) in 2014. The firm also predicts that cloudpowered gaming services such as PlayStation Now and Onlive will boost game revenues in Switzerland, driven by wide deployment of fast broadband services.

While Switzerland is a fertile landscape for games retail, the country also imposes some restrictions; in 2010, the Swiss National Council passed a law curbing the sale of violent video games in the country.

58 per cent of Swiss consumers opt to purchase titles in dedicated game stores.

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FACTFILE GERMANY Sponsored by

Wholesaler and distributor of video games, consoles and accessories

INTERNATIONAL FACTFILE: GERMANY Population: 80,716,000 Capital City: Berlin Currency: Euro GDP (Per Capita): $47,893 KEY RETAILERS Expert, Galeria Kaufhof, GameStop, Marktkauf, MediaMarkt, Pro Markt, Real, Saturn

TOP DEVELOPERS: Yager Development, Fishlabs, Daedalic Entertainment, Kalypso, Ubisoft Blue Byte

KEY DISTRIBUTORS: Groß Electronic, Großhandel, Koch Media, Otto Group,

PUBLISHERS IN THE REGION: BigBen Interactive, Capcom, Deep Silver, EA, Microsoft, Bandai Namco, Sony, Square Enix, Ubisoft

THE German games industry is a highly prospective market for interactive media, second only to the UK in Europe – and growing.

Over $3.7 billion (£2.2bn) was generated by the German games market during 2013, an increase of five per cent from 2012.

German games trade body BIU reports that over half – €1.8 billion (£1.43bn) – of this figure was the result of software sales alone.

The region also has the highest payto-play ratio in the world, with 70 per cent of the 39.8 million gamers in Germany choosing to sink their cash into titles.

The BIU adds that around 14.5 million Germans play games online, with brain-teasing games the most popular genre, closely followed by casual titles.

Due to this preference for online, it’s perhaps unsurprising that consumers are also

embracing digital games retail.

Newzoo reports that half of the German games industry revenue in 2013 came from digital sales, with the BIU adding that over a third (36 per cent) of console and PC game purchases in 2014 to date have been digital.

However, while games retail in Germany may be flourishing, game creation has been hampered by tough financial conditions.

“Germany represents approximately five per cent of the whole world market volume, but German based companies only have a market share less than one per cent,” explained Thorsten Unger of German games trade body G.A.M.E. “Financing digital games content in Germany is quite complex due to very low funding compared to other nations, few venture capital firms and heavy restrictions at banks.”

Germany has the highest pay-to-play ratio in the world – 70 per cent.

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GERMANY FACTFILE

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FACTFILE TURKEY Sponsored by

Wholesaler and distributor of video games, consoles and accessories

INTERNATIONAL FACTFILE: TURKEY Population: 76,667,864 Capital City: Ankara Currency: Lira GDP (Per Capita): $11,277 KEY RETAILERS Bimeks, CarrĂŠfour, Darty, D and R, Media Markt, Teknosa, Sony Centre KEY DISTRIBUTORS Aral, Tiglon

TOP DEVELOPERS 2Gen, Ark Game Studios, Insofer, Kukla Interactive, MagiClick Games, Oyun StĂźdyosu, Peak Games, Pixofun, Sobee Studios, TaleWorlds PUBLISHERS IN THE REGION Sony, Ubisoft

FOR retailers stocking PC games and accessories, Turkey is certainly a prize bird.

According to Newzoo, Turkey is the third largest market for PC gaming, in terms of gaming platform share among players.

Overall, 29 per cent of Turks play games, with Turkish gamers spending 70 per cent of their gaming time on PC platforms on average. However, Turkish players are generally more platformagnostic than many other regions, with 15 per cent of gamers playing across PC, consoles, mobile and handheld devices.

The territory is 18th in the world in terms of mobile revenue spend. However, this could soon change, as mobile payment firm 3pay reports that smartphone uptake among Turks rocketed up by 247 per cent from 2012 to 2013. This has led to a clear majority (71 per cent) of gamers spending some time

gaming on their mobile devices.

Regarding consoles, Sony clearly has the upper hand; PlayStation holds 80 per cent of the market.

PES, FIFA, Call of Duty and Diablo III are among the biggestselling games on all formats.

This interest in full-scale titles may explain why half of Turkish gamers pay for games. However, Newzoo states that average spend per consumer is lower when compared to countries such as the UK. One genre that defies this trend, arguably driven by the regional preference for PC gaming, is massively multiplayer online titles, where 14 per cent of those who pay for MMO games spend a large amount. MOBAs are similarly popular, with almost a quarter (22.2 per cent) of those who play MMOs also dipping into the free-to-play title League of Legends.

Turkey is the third largest market for PC gaming in the world, behind Poland and Russia.

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TURKEY FACTFILE

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FACTFILE SOUTH KOREA Sponsored by

Wholesaler and distributor of video games, consoles and accessories

INTERNATIONAL FACTFILE: SOUTH KOREA Population: 50,219,669 Capital City: Seoul Currency: Won GDP (Per Capita): $25,931 KEY RETAILERS Homeplus, Sonokong, Lotte, E-Mart KEY DISTRIBUTORS HanbitSoft, Nexon, Daewon Game Company

SOUTH KOREA remains one of the biggest territories for PC gaming, driven by the popularity of eSports and internet cafes.

There are approximately 12,000 internet cafes, known locally as ‘PC bangs’, in the region, which attract a huge number of gamers every day.

The success of PC bangs is built on a cultural love of online gaming.

The Korea Internet and Digital Entertainment Association believes that the online gaming industry accounts for about 60 per cent of the country’s content exports revenue.

DFC Intelligence estimates that the South Korean game market will be worth an estimated $5 billion (£3bn) annually by 2016. This means that residents spend around $100 on video games every year – more than triple that spent by Americans.

The online gaming segment is boosted by the success of eSports; the Federal Game

TOP DEVELOPERS NCSoft, Nexon, Gala Lab, Axis Entertainment, Blueside, DeNA Seoul, Gamevil, Gravity PUBLISHERS IN THE REGION NCSoft, Nexon, EA, Gamevil, Gameloft, Konami, Sega, Riot Games, Sony, Ubisoft, Square Enix

Institute estimates that 10m South Koreans follow eSports.

In recognition of the national pastime’s popularity, the country’s Ministry of Culture and Tourism and Ministry of Information and Communications also established the international World Cyber Games (WCG) competitive gaming event in 2000.

In addition to this, the League of Legends 2014 World Championship, to be held in Seoul on October 19th, was recently revealed to be the biggest global eSports event to date, with over 45,000 expected to attend.

South Korea’s love of gaming has also earned some infamy.

Addiction to gaming is a longdiscussed issue in the region; 3.3 million South Koreans require medical treatment due to addiction to video games, according to claims made by Shin Eui-jin, a member of the ruling New Frontier Party.

The online gaming industry accounts for about 60 per cent of South Korea’s content exports revenue.

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FACTFILE MEXICO Sponsored by

Wholesaler and distributor of video games, consoles and accessories

INTERNATIONAL FACTFILE: MEXICO Population: 118,395,054 Capital City: Mexico City Currency: Peso (Mex$) GDP (Per Capita): $10,767 KEY RETAILERS Camelot Games, Gamer’s Paradise, Gamerush, Mixup, Sanborns, Blockbuster Mexico, Coppel, JJGames, JVL Gaming

TOP DEVELOPERS Kaxan Games, Larva Game Studios, Anemona Studio, Artefacto, Neggi Studio

KEY DISTRIBUTORS Gamexpress

PUBLISHERS IN THE REGION Activision, EA, Microsoft, Sony, Square Enix, Ubisoft

AS one of the fastest growing video game markets in the world, Mexico is seeing increased investment from firms hoping to break into a largely untapped territory.

Newzoo estimates that there are 16 million active gamers in Mexico. Gamers’ preferences and spending behaviour are similar to those in nearby North America; approximately 57 per cent of gamers pay money for titles.

During 2012, games revenue for developers of video game systems and titles reached Mex$ 14,194 million (£0.67m).

The revenue accounts for almost a quarter (22 per cent) of the Central and South American games market, with Brazil contributing 34 per cent and Argentina making up 14 per cent.

On average, Mexican gamers spend 10 per cent more money on digital games than the rest of Central and South America.

The region’s entire digital games market is expected to pass the £0.62bn revenue mark by the end of 2014.

According to Government institute ProMexico, the Mexican video game industry registered an average annual increase of 18.7 per cent between 2004 and 2010.

This growth means that the market approximately doubles in size every four years, making the territory a popular destination for expanding firms.

“Time and money spent on games in Mexico is much more in line with Western countries than other so-called ‘emerging’ markets, such as Brazil and Russia,” stated Peter Warman, CEO and co-founder of research firm Newzoo. “Together with the fast-rising internet penetration, Mexico will certainly show strong growth. Good news for the local Mexican games industry as well as Western and Asian companies seeking expansion.”

The Mexican digital games market is expected to pass the $1 billion revenue mark by the end of 2014.

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FACTFILE POLAND Sponsored by

Wholesaler and distributor of video games, consoles and accessories

INTERNATIONAL FACTFILE: POLAND Population: 38,485,779 Capital City: Warsaw Currency: Zloty GDP (Per Capita): $13,334 KEY RETAILERS Empik, Gram.pl, Gry Online, Media Markt, Toys R Us, GOG.com, Sklep Gram

TOP DEVELOPERS CD Projekt, Wargaming, Epic Games Poland, Techland, Flying Wild Hog, CI Games

TOP DISTRIBUTORS CD Projekt, Cenega, Galapagos, LEM

PUBLISHERS IN THE REGION CI Games, Codemasters, EA, Microsoft, Nintendo, Sony, Ubisoft

POLAND is a burgeoning market for games firms, driven by the popularity of PC titles.

According to recent statistics from the Ministry of Treasury for the Republic of Poland, revenue for the Polish games industry is expected to see steady growth of approximately four per cent over the next three years.

Market tracker PricewaterhouseCoopers (PwC) estimates that the Polish games market was worth $375 million (£231m) at the end of 2012, equivalent to a 0.56 per cent share of the global video games industry.

The Ministry of Treasury expects this amount to rise to $437 million (£269m) by 2017.

There are an estimated 11.8 million active gamers in Poland.

Of these, the Ministry of Treasury predicts that just over half (53 per cent) are consumers who purchase titles legally – a

proportion slightly lower than that of European countries and the US. Polish gamers are big fans of the PC – research firm Newzoo states that 98 per cent of gamers play computer titles.

Those who play on PC prefer to purchase games in traditional outlets. 60 per cent of PC games are bought in brick and mortar stores, with the remaining 40 per cent purchased online.

Unusually, when it comes to consoles (which according to Newzoo are preferred by 43 per cent of Polish gamers) the exact opposite is true – 60 per cent of console titles are downloaded digitally, with only 40 per cent brought in-store.

While PC is more widespread than consoles, the latter segment is far more profitable. The Ministry of Treasury says that console titles comprise 25 per cent of games sales revenue due to higher average selling prices than PC.

60 per cent of PC games are bought in brick and mortar stores by Polish players.

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FACTFILE BELGIUM Sponsored by

Wholesaler and distributor of video games, consoles and accessories

INTERNATIONAL FACTFILE: BELGIUM Population: 11,198,638 Capital City: Brussels Currency: Euro GDP (Per Capita): $47,787 KEY RETAILERS Game Mania, Saturn, Media Markt, Carrefour

TOP DEVELOPERS Larian Studios, Tale of Tales, LuGus Studios

TOP DISTRIBUTORS CLD Distribution, Koch Media, Big Ben Interactive Benelux, Level03 Distribution, Micromedia

PUBLISHERS IN THE REGION EA, Microsoft, Nintendo, Sony, Ubisoft

DESPITE lagging behind the rest of Europe on smartphone adoption, Belgium is a nation quickly embracing digital games retail.

According to GfK Retail and Technology, in association with the Belgian Entertainment Association, the Belgian games market generated revenues of €211 million (£167m) in 2013.

The overall games market in the region has been reasonably stable for the last half a decade, with revenue peaking at €246 million (£195m) in 2008.

However, sales of boxed games have declined.

Approximately 4,780,000 boxed game units were sold in 2013 – almost a 20 per cent drop on the 5,930,000 units sold in 2012.

This is partly due to the transition of Belgian gamers to new digital platforms. Revenue generated by online titles in 2008 was almost negligible, but has rocketed within five years to hit

€44 million (£35m) last year.

This itself was an increase of €15 million (£12m) on 2012.

According to research firm Newzoo, half of Belgium’s 4.6 million gamers pay for titles, spending $13.10 (£8.03) per month on average. This amount makes Belgian gamers the third highest-spending gamers in Europe, behind the UK and France.

While Belgian gamers are clearly accepting the digital future, they are less enthusiastic about smartphones.

Newzoo states that the country is number one in the Western world for gaming on regular phones, with a third (30 per cent) of consumers gaming still using non-smartphones.

In terms of which titles are proving most popular, social and casual games are the biggest sellers in the country, preferred by 3.8 million gamers, followed by console titles, which are played by 2.6 million players.

Belgian gamers spend $13.10 (£8.03) on titles per month on average.

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FACTFILE NETHERLANDS Sponsored by

Wholesaler and distributor of video games, consoles and accessories

INTERNATIONAL FACTFILE: NETHERLANDS Population: 16,856,620 Capital City: Amsterdam Currency: Euro GDP (Per Capita): $42,586 KEY RETAILERS Nedgame, Game Mania, Bart Smit, Saturn, Bol.com, Gameshop, Intertoys, Media Markt, Carrefour

TOP DEVELOPERS Guerrilla Games, Vlambeer, Lionade Games, Engine Software, Triumph Studios, VSTEP

TOP DISTRIBUTORS Koch Media, CLD Distribution, Big Ben Interactive, Level03 Distribution, Micromedia, Game World

PUBLISHERS IN THE REGION EA, Microsoft, Nintendo, Sony, Ubisoft, Two Tribes, 2K

THE Netherlands remains a ripe environment for free-to-play and browser titles, despite slow growth.

PricewaterhouseCoopers (PwC) estimates that the Dutch games market generated sales of approximately €600m (£476m) in 2012.

Microtransactions are one of the most popular forms of monetisation in the region.

PwC research suggests that a third of Dutch gamers have purchased additional virtual content in games. 20 per cent of gamers spend money on such content regularly.

Despite this, growth is minimal in the sector. Just six per cent of gamers stated that they had spent more money on virtual content in 2013 than in 2012.

The health of microtransactions is being bolstered by browser, rather than mobile, titles. This has led to stilted mobile growth – according to research firm Newzoo, less than one in ten (nine per cent) Dutch play more frequently on their smartphone or tablet now than they did in the last six months before.

Newzoo adds that the Netherlands is proportionally the biggest country in the world when it comes gaming for free, with over half (55 per cent) of consumers playing free-to-play titles.

While this majority are not contributing to the growth of the market, those paying for games are doing so enthusiastically. When compared with the rest of the world, the Netherlands ranks 15th in terms of overall gaming revenue.

A third of Dutch gamers have purchased additional virtual content in games.

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FACTFILE BRAZIL Sponsored by

Wholesaler and distributor of video games, consoles and accessories

INTERNATIONAL FACTFILE: BRAZIL Population: 200.4 million Capital City: Brasília Currency: Real GDP (Per Capita): $11,080 KEY RETAILERS Abraão Games, Action Game, Game Mania, World Game, GameStore, Big Shop, Submarino

TOP DEVELOPERS 8D Games, GameBlox, Hive Digital, Uplay Mobile, Braza Games

TOP DISTRIBUTORS Alcateia, Incomp, NC Games, Rcell, Zap Games

NOTABLE GAMES FIRMS WITH A LOCAL OFFICE Ubisoft, Microsoft, Sony, Disney, GameMaxx

BRAZIL is now one of the world’s biggest games markets.

Newzoo estimates that the country is the leading Latin America region for games, with revenue of $1.3bn (£0.81bn).

Business resource The Brazil Business adds that 3.1 million PS3, Xbox 360 and Wii consoles have been sold to date in Brazil.

Despite this, the most popular console in the region is actually the PS2 – almost half (41.2 per cent) of Brazilian households own the 14-year-old machine.

Next-gen consoles have yet to sell in large quantities due to high pricing.

When the PS4 launched in Brazil on November 29th 2013, the £350 console was priced at R$3,999 (£1,038).

In comparison, the Xbox One had a similarly inflated cost – but ended up much closer to its price in other countries, retailing at R$2,199 (£571).

“Brazil doesn’t have the larger retailers like GameStop and GAME,” says Mauro Bossetti, partner and MD of Synthesis Group Iberia and LATAM. “Instead they have a lot of smaller retailers that have been trading for a long time.

“We have large bookstores who dedicate entire sections of their stores to gaming and department stores which are beginning to show greater interest in selling games and gaming gear.

“Digital games are usually cheaper and very popular. The market for physical games is mostly for the console games nowadays, though places where internet connections aren’t as reliable might still have a preference for physical PC games.

“Brazil is the 11th biggest gaming market in the world, and it’s done this in a very short space of time, so the market potential is massive.”

Brazil is the 11th biggest gaming market in the world, and it’s done this in a short space of time.

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FACTFILE SLOVENIA Sponsored by

Wholesaler and distributor of video games, consoles and accessories

INTERNATIONAL FACTFILE: SLOVENIA Population: 2,061,085 Capital City: Ljubljana Currency: Euro GDP (Per Capita): $24,211 KEY RETAILERS Big Bang, Comshop, E.Leclerc, Harvey Norman, Müller

TOP DEVELOPERS ZootFly, ActaLogic, Dawn of Play, Cocoasoft, Croteam

TOP DISTRIBUTORS Colby, Videotop

SLOVENIA continues to maintain a strong games market – despite its relatively small size and the lack of games retail variety in the region.

Newzoo predicts the Slovenian games market revenue will exceed $21.2 million (£13.3m) by the end of 2014.

The research firm also reports that roughly 1.5 million of Slovenia’s 2.1 million inhabitants – 71 per cent – regularly browse the internet.

This proportion is close to the UK’s 73 per cent, making the territory ripe for digital retail.

Despite this, one retailer dominates the marketplace. Big Bang is the only major player in the Slovenian electronics battlefield, holding a market share of around 60 per cent.

Games that are not stocked

by Big Bang tend to struggle, relying on independent stores to gather pace among consumers.

The difficulty faced by developers and publishers in

the region is exacerbated by the rampant piracy in Slovenia – nearly half of all software is pirated. However, this rate is slowly falling, having dropped from 48 per cent in 2007 to 45 per cent last year, according to the latest BSA Global Software Survey.

This may explain the lack of local publishers. From 2008 to 2010, the number of Slovenian games publishers doubled – but only totaled four firms in the latter year, according to business analyst SeeNews.

However, at least one of the companies has seen success.

ZootFly published the majority of Slovenian games successful enough to be distributed to mainland Europe, before its acquisition in 2013 by a casino equipment vendor.

As recently as 2008, Slovenia had no age or content rating system in place and no related legislation. However, since then the PEGI age rating system has been introduced, with official support and legal enforcement.

Nearly half of all software in Slovenia is pirated, but this number is slowly dropping.

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FACTFILE FINLAND Sponsored by

Wholesaler and distributor of video games, consoles and accessories

INTERNATIONAL FACTFILE: FINLAND Population: 5,457,429 Capital City: Helsinki Currency Euro GDP (Per Capita): $46,098 KEY RETAILERS Anttila, CDON, Discshop, Expert, GameStop, Konsolinet, Gigantti, Puolenkuun Pelit TOP DISTRIBUTORS 3H, ALSO, Amo Oy, Koch, Nordic Game Supply, PAN-Visions

FINLAND is becoming one of the most important games industries in Europe.

Finland is home to many massive game studios. Among the bestknown are Remedy – known for the Max Payne and Alan Wake franchises, as well as the upcoming Xbox One exclusive Quantum Break – and Bugbear, which is developing Wreckfest.

The region is a hotbed that’s only getting hotter.

The Finnish Funding Agency for Technology and Innovation (known as Tekes) reports that in Q1 2014, there were more than 200 companies working in the games industry. This is bolstered by a fertile environment for new companies – over 50 per cent of the firms have been established during the last few years.

It’s also been a big boost to the country’s export industry; Tekes

TOP DEVELOPERS EA, Rovio Entertainment, Remedy, Bugbear, Unity, Supercell Games, Gameloft, Fingersoft, Frogmind, RedLynx PUBLISHERS IN THE REGION EA, Rovio Entertainment, Supercell Games, Gameloft, RedLynx, Ubisoft, Microsoft, Sony, Activision

says 90 per cent of Finland’s gaming production is exported.

Publisher Neogames highlights the cultural acceptance of gaming in Finland as key to its prosperity.

The firm adds that a roughly equal amount of companies are working on PC and console titles – 16 and 14 per cent respectively.

The Finnish mobile games industry is also booming, with turnover expected to hit €1.49 billion (£1.18bn) by 2020, according to Finnish governmentbacked organisation thisisFinland. This is almost six times the €250 million (£197m) turnover of the sector in 2012, which was itself almost three times greater than three years before.

The growth is thanks to Finnish powerhouse mobile studios, including Clash of Clans creator Supercell Games and, of course, Angry Birds developer Rovio.

The Finnish mobile games industry is expected to hit €1.49bn by 2020.

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FACTFILE THAILAND Sponsored by

Wholesaler and distributor of video games, consoles and accessories

INTERNATIONAL FACTFILE: THAILAND Population: 66,720,153 Capital CIty: Bangkok Currency: Baht GDP (Per Capita): $5,675 KEY RETAILERS Item Gameshop, Nadz, New Era Interactive Media, MangPong TOP DISTRIBUTORS Active Boeki, CD Gamer, Maxsoft, Nadz, Playinter, Sicom

DESPITE low consumer uptake of console and PC in Thailand, digital and mobile are continuing to boom.

PricewaterhouseCoopers (PwC) estimates that the total Thai games market was worth $145 million in 2012. This is almost double the $76 million generated in 2008. PwC adds that the Thai games industry will exceed $226 million in value by 2018.

According to the Board of Investment of Thailand, the total value of digital games content produced in Thailand during 2011 was $294 million.

The Board adds that of the six dominant subsectors in the Thai games market, online gaming is the most prevalent, with a 48 per cent share of the market.

Following this is mobile, with a share of 23 per cent. Console and handheld gaming are less popular, with a combined 14 per cent share.

TOP DEVELOPERS Debuz, Sanuk Games, Novaleaf, Sandbox Global, Games Square, Extend Interactive, Kiragames PUBLISHERS IN THE REGION AsiaSoft, Activision, Ini3 Digital, Microsoft, NC True (NCSoft), Sony

The popularity of mobile gaming is driven by the ability to buy in-app purchases directly through network operators – a necessity given the dearth of credit card ownership in Thailand.

PwC estimates that mobile games revenue – produced by initial app costs and microtransactions – reached $73 million in 2012, and is set to increase at an annual rate of 10.5 per cent to hit $120 million by 2017.

As a result of the growing market, PwC also believes that mobile companies will promote their presence in the region. The firm states that Thai games advertising revenue will almost double from $4 million in 2012 to $7 million in 2017, at a rate of 14.6 per cent annually.

The games industry also provides a number of jobs in Thailand. More than 3,000 Thai workers are employed in the games and animation sector.

The Thai games industry will exceed $226 million in value by 2018.

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FACTFILE PAKISTAN Sponsored by

Wholesaler and distributor of video games, consoles and accessories

INTERNATIONAL FACTFILE: PAKISTAN Population: 196,174,380 Capital City: Islamabad Currency: Rupee GDP (Per Capita): $1,295 KEY RETAILERS Illusions, Pak Gamers, The Plaza, iShopping, Home Shopping, Daraz

TOP DEVELOPERS Mindstorm Studios, White Rabbit Studios, Tintash, We R Play, CaramelTech

TOP DEVELOPERS Zubair Electronics, Milestone Interactive

PUBLISHERS IN THE REGION Microsoft, Sony

PAKISTAN has a rapidly growing games market, driven by mobile, rather than console.

While specific games industry numbers are lacking due to the youth of the sector, according to the Pakistan Software Export Board, the entire Pakistani IT industry is valued at $2.8 billion.

Those working in the games sector are largely smaller mobile developers, due to the relative ease and affordability to enter the market.

However, some firms have managed to break into the wider international games business.

This includes Mindstorm Studios, whose 2009 release Cricket Revolution was the first PC game created by a Pakistani studio to be sold in retail stores outside of the country.

The move to mobile has been spurred by the consistent presence of piracy in the region.

Many local stores stock pirated

copies of games, leading gamers seeking genuine software to import at a high cost.

Meanwhile, some games that have made it into Pakistan have then suffered censorship.

Call of Duty: Black Ops II and Medal of Honor: Warfighter were banned from Pakistan store shelves in 2013 after retailers complained about the depiction of the country as a haven for terrorist groups.

More recently, EA’s Dragon Age: Inquisition was removed from sale in India, Bangladesh and Pakistan in order to avoid a ‘breach of local content laws’.

The local distributor for the game said that EA had decided to not sell the game in the countries due to the title’s homosexual sex scenes, which it feared could cause backlash. Homosexuality is a crime punishable with a prison sentence in Pakistan.

Dragon Age: Inquisition was removed from sale to avoid a ‘breach of local content laws’.

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FACTFILE UKRAINE Sponsored by

Wholesaler and distributor of video games, consoles and accessories

INTERNATIONAL FACTFILE: UKRAINE Population: 44,291,413 Capital City: Kiev Currency: Hryvnia GDP (Per Capita): $2,979 KEY RETAILERS Comfy, Eldorado, Foxtrot, Moyo, Protoria, Rozetka TOP DISTRIBUTORS Longstein, 1C-Softclub, Noviy Disk

UKRAINE’S games market is driven by online and PC titles, as consoles struggle in a territory rife with piracy.

Russian game developer Nival states that more than two million consumers in the region game online – around five per cent of the country’s population.

Ukrainians spent approximately $40 million on online games in 2012, according to Ukrainian tech site IT Expert.

This is equal to the amount spent on PC games, with IT Expert saying that the PC sector continues to grow by more than 25 per cent year-on-year.

The combined total of these two sectors – online and PC – makes up nearly the entire Ukraine games market. Console revenue is all but negligible in the $80 million industry.

IT Expert states that online games account for almost

TOP DEVELOPERS 4A Games, Travian Games, Playtech, West Games, Vostok Games, BestWay, Action Forms PUBLISHERS IN THE REGION Gameloft, Black Wing Foundation, Ubisoft Ukraine, Sony, Disney, Bandai Namco

60 per cent of the income generated by the PC gaming market, with a further 25 per cent of the PC market comprised of the turnover from games on social networks such as Facebook. Only 15 per cent of the PC games market consists of more traditional titles.

The growth of Ukraine’s games market continues despite the considerable threat of piracy in the territory.

The latest BSA Global Software Survey found that 83 per cent of software in Ukraine was pirated during 2013.

Around a quarter more Ukrainians pirate software than their Russian neighbours, with Russia seeing a 62 per cent piracy rate in 2013.

However, the cost of piracy in Russia is higher: around $2.7 billion worth of unlicensed software was installed last year, while $444 million worth of software was pirated in Ukraine.

Online and PC games make up almost all of Ukraine’s $80m games industry.

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FACTFILE AUSTRIA Sponsored by

Wholesaler and distributor of video games, consoles and accessories

INTERNATIONAL FACTFILE: AUSTRIA Population: 8,504,850 Capital City: Vienna Currency: Euro GDP (Per Capita): $52,216 KEY RETAILERS GameStop, MediaMarkt, Müller, Saturn, Video Game Store, Videogames Pilko, Videolife TOP DISTRIBUTORS Koch Media, Sony DADC, Play Art, Stadlbauer

CLOSELY linked with its close neighbours Germany and Switzerland, much of Austria’s games industry revenue is generated by titles imported from those regions.

This relationship is symbiotic – many German gamers import titles from Austria to try and circumvent Germany’s strict censorship laws.

No such legal limitations exist within Austria, making the region a haven for those seeking more controversial game titles.

Compared to the UK’s dwindling number of independent stores, which are in constant battle with larger national supermarkets, in Austria indie retail is thriving. Alongside specialists and global chains, the strength of indies has meant that Austria hypermarkets have little foothold in the market.

One of Austria’s biggest games publishers is Nordic Games. The

TOP DEVELOPERS Clockstone Studios, DonkeyCat, Mipumi Games, Sproing, Rarebyte, Still Alive Studios, Egon.CX PUBLISHERS IN THE REGION Deep Silver, Nordic Games, Microsoft

firm has grown in stature in the wider games market, particularly following its acquisition of multiple THQ properties and the THQ name in 2013. Nordic also acquired fellow Austrian publisher JoWooD Entertainment in 2011.

Nordic is one of a scant number of local firms operating in Austria. Many are German firms whose coverage extends to the region. One of the largest is the German distributor and publisher Koch Media, which has an office in Austria.

One region in which Austrian games are finding a particular foothold is South Korea. The Federal Ministry of the Economy, Family and Youth and the Austrian Federal Economic Chamber have organised multiple trips to South Korea in order to establish a foundation for Austrian-developed titles.

Indie retail is thriving in Austria, with hypermarkets holding little foothold in the market.

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FACTFILE SRI LANKA Sponsored by

Wholesaler and distributor of video games, consoles and accessories

INTERNATIONAL FACTFILE: SRI LANKA Population: 20,277,597 Capital City: Sri Jayawardenepura Kotte Currency: Rupee GDP (Per Capita): $3,385 KEY RETAILERS ChelseyLK, My Gola, Gameking, Kiddies Corner LK

TOP DEVELOPERS Dawn Patrol, Sri Droiders, ARC Developers, Photon Fission

TOP DISTRIBUTORS Redline Technologies, TechZone, EPSI, MiTech, E-Globe Solutions, Trident, TechOne

PUBLISHERS IN THE REGION Microsoft, Gameloft, Sony

2014 marks the year that Sri Lanka broke into the Top 100 countries in the games industry.

According to the latest Newzoo Global Games Market Report, the Sri Lankan games market generated almost $9 million in annual revenue during 2014. This total makes it the 100th biggest games industry in the world, its highest position yet.

This growth may be thanks to the increasing prosperity of the country.

In 2011, Rural Affairs senior minister Athauda Seneviratne announced that the per capita income of Sri Lanka had doubled since 2005, allowing inhabitants to afford more expensive luxury items.

This amount is expected to double again by 2016.

Local consumer interest is also inspiring more investment in the sector.

The first Sri Lanka Cyber Games eSports tournament was

held in 2008, organised by the Gamer.LK gaming community.

By 2013, largely as a result of the success of the event, the Sri Lankan eSports market had more than quadrupled, according to Sri Lankan news outlet The Papare.

Many of the most popular games in Sri Lanka mirror those of Western markets. Dota 2, Halo, FIFA, Call of Duty and League of Legends all have a large eSports presence.

As with many of Sri Lanka’s neighbouring states, mobile continues to drive consumer engagement with gaming.

The country was the first region in South Asia to adopt support for both 3G and 4G mobile internet, driven by the staggering growth of mobile users in the territory – Sri Lanka’s mobile subscriber base experienced a growth of over 550 per cent from 2005 to 2010, according to the Sri Lankan Government’s annual report.

The first Sri Lanka Cyber Games eSports tournament was held in 2008.

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FACTFILE PAKISTAN Sponsored by

Wholesaler and distributor of video games, consoles and accessories

INTERNATIONAL FACTFILE: PAKISTAN Population: 196,174,380 Capital City: Islamabad Currency: Rupee GDP (Per Capita): $1,295 KEY RETAILERS Illusions, Pak Gamers, The Plaza, iShopping, Home Shopping, Daraz

TOP DEVELOPERS Mindstorm Studios, White Rabbit Studios, Tintash, We R Play, CaramelTech

TOP DEVELOPERS Zubair Electronics, Milestone Interactive

PUBLISHERS IN THE REGION Microsoft, Sony

PAKISTAN has a rapidly growing games market, driven by mobile, rather than console.

While specific games industry numbers are lacking due to the youth of the sector, according to the Pakistan Software Export Board, the entire Pakistani IT industry is valued at $2.8 billion.

Those working in the games sector are largely smaller mobile developers, due to the relative ease and affordability to enter the market.

However, some firms have managed to break into the wider international games business.

This includes Mindstorm Studios, whose 2009 release Cricket Revolution was the first PC game created by a Pakistani studio to be sold in retail stores outside of the country.

The move to mobile has been spurred by the consistent presence of piracy in the region.

Many local stores stock pirated

copies of games, leading gamers seeking genuine software to import at a high cost.

Meanwhile, some games that have made it into Pakistan have then suffered censorship.

Call of Duty: Black Ops II and Medal of Honor: Warfighter were banned from Pakistan store shelves in 2013 after retailers complained about the depiction of the country as a haven for terrorist groups.

More recently, EA’s Dragon Age: Inquisition was removed from sale in India, Bangladesh and Pakistan in order to avoid a ‘breach of local content laws’.

The local distributor for the game said that EA had decided to not sell the game in the countries due to the title’s homosexual sex scenes, which it feared could cause backlash. Homosexuality is a crime punishable with a prison sentence in Pakistan.

Dragon Age: Inquisition was removed from sale to avoid a ‘breach of local content laws’.

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FACTFILE INDIA Sponsored by

Wholesaler and distributor of video games, consoles and accessories

INTERNATIONAL FACTFILE: INDIA Population: 1.21 billion Capital City: New Delhi Currency: Rupee GDP (Per Capita): $1,626 KEY RETAILERS Flipkart, Nextworld, Games the Shop, Game 4 U, Landmark, Croma, Planet M, Lets Buy, Intencity TOP DISTRIBUTORS Milestone Interactive, E-Xpress Interactive, Worldwide CD-ROMs, Redington

INDIAN mobile developers are driving the country’s games market forward, as high pricing leaves console gamers frustrated.

The latest Indian Media and Entertainment Industry Report from research firm FICCI-KPMG estimates that the Indian games market was worth Rs 19.2 billion (£0.2bn) in 2013.

The industry is expected to continue expanding, with FICCI-KPMG predicting that the Indian games market will surpass the Rs 23.5 billion (£0.24bn) mark by the end of 2014, before hitting a value of Rs 40.6 billion (£0.41bn) by 2019.

Console sales comprise more than half (55 per cent) of the total games market revenue in India.

However, the true proportion of the industry is hard to calculate; many players are put off by the

TOP DEVELOPERS Reliance BIG Entertainment, Games2win, Bash Gaming, Jumpstart, Csharks Games, Gameshastra, Trine Games, Version2Games, Zynga Bangalore, Lakshya Digital, Indiagames, Rolocule Games, Gameloft PUBLISHERS IN THE REGION Reliance Entertainment Digital, UTV Group

high pricing of Western titles in the territory, leaving them to import titles from abroad.

PC titles sell for around Rs 999 (£10.18), while console games can cost fans anywhere between Rs 2,499 (£25.48) and Rs 4,499 (£45.86).

As a result of the high investment needed to be a console gamer, console penetration in India is far below that of the rest of the world – FICCI-KPMG states that only two per cent of urban television households own a console.

Many players are therefore turning to mobile as their primary platform. Financial services group Avendus Capital Mobile believes that total revenue generated by mobile apps in India will hit Rs 20.7 billion (£0.21bn) by 2016.

Only two per cent of urban television households in India own a console.

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