ONLINE GAMES MARKET IN SOUTHEAST ASIA TO SEE MASSIVE GROWTH THROUGH 2014
Regional market revenue to rise from $405.7 million in 2010 to $833.7 million by 2014
SAN JOSE, Calif. – January 27, 2011 – Niko Partners, The leader in Asian Video Game Market Intelligence™, today announced the availability of its Southeast Asian Game Market Regional Report covering the fast growing geographical region including Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. The report consolidates and highlights findings from the company’s in-depth market intelligence conducted in each of the six countries in the second half of 2010.
“The Southeast Asian Game Market Regional Report presents essential data by country and with regional comparisons for any company looking to enter or expand share in the games market in Asia,” said Lisa Cosmas Hanson, managing partner of Niko Partners. “With online games market revenue growth surpassing even the blistering growth in the number of gamers in the region over the next several years, there are real opportunities for online game publishers to capture market share and be a ship on the rising tide. This regional report is ideal for determining what countries to prioritize beyond the Asian giants of China, Korea and Japan.”
Key takeaways from the report include:
• By 2014, there will be more than 90 million gamers throughout these six Asian emerging markets
• Indonesia, Thailand and Vietnam present the most intriguing opportunities for online game publishers over the next several years
• The report presents industry overviews for each market, key online publishers and titles by region and provides important data on what drives each country’s gamers to play games
Niko also has published in-depth country reports that delve into the specifics market factors of each country, and offers consulting services that can help companies avoid mistakes when addressing the Southeast Asian market. Niko’s research team conducted nearly 800 surveys and interviews across the region with more than 100 online gamers interviewed per country. Industry experts from each country were also consulted to verify the information and ensure that the data is reflective of each country’s gaming population views and the operating environment for publishers. The 45-page report is available now at: http://www.nikopartners.com/researchstore or by contacting email@example.com, for $4,500.
ABOUT NIKO PARTNERS
Niko Partners is The leader in Asian Video Game Market Intelligence™, specializing in the Chinese and Southeast Asian game markets. Founded in 2003, the firm conducts syndicated and custom research studies on Chinese gamers (including the region of Taiwan), Southeast Asian gamers, online games, offline games, consoles, handhelds, regulatory issues, piracy, development, online operators, distribution, and retail. Niko Partners also offers consulting services including focus groups, partnership selection, market opportunity analysis, custom surveys in cities throughout China and the Asia-Pacific region and customized data analysis. The goal of the research and strategic advisory services is to help understand the market, strategically enter or expand market share, and continue to profitably grow within China and Southeast Asia’s emerging markets.
The company is based in Silicon Valley and Shanghai, and its clients include worldwide leaders in game software, hardware, and services, as well as hedge funds, media companies, trade associations, and management consulting firms, all of whom have a vested interest in a thorough understanding of the emerging Southeast Asian and Chinese video game industries.
Niko Partners recently released their six-month findings, for subscribers and updated those on their newsletter list.
There are now 120 million Chinese gamers for 2010
The forecast for online game revenue for 2010 was revise down slightly to $4.4 billion from $4.5 billion
In a recent report by People’s Daily on China’s online gaming industry, they estimate the market to reach $5 billion and the number of gamers to reach 338 million.
Niko uses a different definition of a “gamer,” in that they require 60 minutes of game play per month whereas the Chinese government typically accepts anyone who has played for a few minutes in the past 6 months. Niko has been fairly accurate with revenue forecasts in the past, and finds it unlikely the market will reach $5 billion this year.
Niko Partners, the leading market intelligence firm on China’s video game industry, today reiterated the vibrancy of China’s video game industry, based on findings from its newly published 2010 Chinese Video Game industry Annual Review & Five-Year Forecast report.
“Niko forecasts that by the end of this year 93 million Chinese gamers will play a mix of PC online, offline, console and handheld games, yet only the online segment generates legitimate revenue,” said Lisa Cosmas Hanson, managing partner of Niko Partners.
Niko’s recently forecasted online games revenue in 2010 at $4.52 billion
There is strong demand for digitally downloaded PC offline games as well as consoles and handhelds, in spite of piracy and the regulation that bans consoles
Niko calculated that total Chinese game software and services revenue, including PC offline, console, handheld, and (primarily) online games, reached $4.61 billion in 2009, up 28 percent from 2008
Chinese consumers are entering the online game market at a rapid pace thanks to casual games such as social networking service (SNS) games and other growth drivers.
China’s 165,000 Internet cafés are used for social entertainment and competition as home PC penetration rises and gamers spend more time gaming at home.
Chinese console gamers have eschewed previous generation consoles in favor of the Xbox 360, Wii and PlayStation 3.
The regulatory landscape continues to be burdensome for game companies.
China could have 100 million new gamers over the next 2-3 years, driven by social networking games, MMOs and casual games.
Chinese gamers prefer the Free-to-Play (F2P) model of online games in which online operators generate revenue via the virtual economy, rather than the time-based model in which access is provided for a fixed number of pre-paid hours.
63% of gamers surveyed increased their spending on online games in the past year.
Social Networking Sites (SNS) games have gained popularity among Chinese consumers, and 88% of the gamers Niko surveyed claim to play SNS games.
The primary reasons gamers with PCs at home go to an Internet café are to be social with their friends and to participate in gaming competitions.
At least 65% of gamers use Internet cafés at least part of the time.
There were 68 million online gamers in China by our definition at the end of 2009 and by 2014 the number should reach 141 million, a 15.5% CAGR.
The 2010 Annual Review & Forecast report is available now for $8,000, and a subset version focused on online games, the 2010 Chinese Online Games Market Review & Forecast report, is available for $5,000. To purchase, contact: firstname.lastname@example.org