Niko Partners, the leading analyst and market data research firm on the China and Southeast Asia video game markets, recently released their 2019 China PC Online Games Market Report and 2019 China Mobile Games Market Report. Here are some highlights from the studies:

Market Size

  • China is the world’s largest market for PC online games accounting for 50% of all PC Game revenue.
  • China’s domestic PC online game revenue was $15.21 billion in 2018.
  • China’s domestic Revenue is forecast to remain strong, reaching $16 billion by 2023.
  • China domestic mobile game revenue was $15.63 billion in 2018, up 28.9% from the previous year.
  • China domestic mobile game revenue is forecast to reach $25.5 billion by 2023.
  • China total game revenue is projected to reach $41.49 billion in 2023.

Player Base

  • There were 312.4 million PC online gamers in China in 2018 and 79.7 million (26%) of them spend money in games.
  • The number of PC online gamers in China is projected to reach 354 million in 2023.
  • There were 598 million mobile gamers in China in 2018, and 239 million (40%) of them spend money in games.
  • The number of mobile gamers in China is projected to reach 728 million in 2023.
  • Niko Partners projects that there will be 767 million total gamers in China, by 2023.
  • 95% of gamers in China play mobile games.

eSports

  • China has 138,000 internet cafes
  • eSports is currently the most important long-term driver of growth for the PC online games market.
  • PC eSports game revenue was $6.3 billion in 2018, up 11.1% over 2017 and accounting for 41.4% of total PC online games revenue.
  • PC eSports game revenue is projected reach $9.5 billion in 2023, accounting for 59.4% of total PC online games revenue.
  • Mobile eSports game revenue was $5.6B in 2018, and accounted for 36% of total mobile games revenue.
  • Mobile eSports game revenue is projected to reach $11.5B in 2023, 45% of total mobile games revenue.

GDC is coming up and one session that should be relevant to anyone making a large game that needs the ability scale is on Friday, March 22nd at 1:30 PM in room 2000. Here’s a link to the announcement. Game development veterans from Boss Fight Entertainment, Certain Affinity, and Intel will be answering questions collected online for anyone interested in client/server architecture.

This is an approach to audience participation that takes full advantage of social media where anyone can ask a question here: https://www.leaseweb.com/events/game-developers-conference-sf-2019, or on Twitter @GamesNetworker using the hashtag #GDCBackendAMA.

After the session, Leaseweb has promised to post the responses in a blog post on their site. Maybe we can get someone there to live tweet the session.

 

Warface, Mail.ru’s free-to-play FPS game that launched on September 18th on the PlayStation 4, has already picked up 1.3 million PlayStation 4 players worldwide (source: Gamasutra) in its first seven days.

That number is impressive considering that’s approximately 1.5 percent of all PlayStation owners based on our extrapolation that there are roughly 86 Million PlayStation 4 Consoles worldwide as of today (the last formal numbers released were July 31st, 2018 ~82.2 Million).

Here’s the breakdown of the audience numbers that has been released by Mail.ru:

  • USA – ~20 percent – 260,000 players
  • Germany – 12.5 percent – 162,500 players
  • France – 11.2 percent – 145,600 players
  • UK – 7.7 percent – 100,100
  • Brazil – 6 percent – 78,000
  • Russia – 5 percent – 65,000

 

 

India is clearly the next untapped market for games. I’ve heard a lot of interesting figures lately, but the market is dominated in the mobile space by Android at around 73 percent of the addressable market. I’ve also heard that India is also more accustomed to subscription based games and micro-transactions are something they are getting more comfortable with, so expect micro-transaction models to grow. Other interesting data includes:

  • The market for Digital Games in India is $853.9 Million in 2015
  • Mobile is 49 percent of the market, or around $416 Million today
  • Mobile is growing at a 64 percent growth rate year-over-year
  • By 2015, the mobile market for games in India is expected to be around $832 Million
  • There are approximately 185 Million mobile gamers in India in 2015
  • ARPPU in India for mobile games in October 2015 was $13.07 with a 1.53 percent conversion rate from player to payer
  • Digital console is 2.7% of the market today
  • MMO games are 28 percent of the market, with Free-to-Play MMO games comprising 21 percent of the total market
  • Cost-per-install in India is $0.74 for Android
  • Cost-per-install in India is $1.26 for iOS

SuperData released a new report on the US digital games market. Here are the interesting points:

  • There are 287 Million Mobile Active Gamers in the U.S.
  • $1.2 Billion in U.S. digital game sales for December 2014
  • 11% Year over on year growth in December 2014, compared to December 2013
  • 17% Growth in mobile digital revenues
  • 10% Increase in console digital sales
  • 10% Decrease in social game revenues
  • Average spend on PS4 was $11.09, down from $20 in November 2014
  • Average spend on Xbox One was $6.88, down from $21 in November 2014
  • Average spend on Steam was $2.35, down from $8 in November 2014

According to a new study from Insights Meta:

  • 75 percent of players play both F2P and P2P titles
  • Less than 10% of “pay to play” gamers don’t play free-to-play games
  • 28 percent of P2P players spend money on F2P games
  • 20 percent of F2P-exclusive players spend money on F2P games
  • 36 percent of gamers surveyed said they’d downloaded free content on their console
  • 1/3 of all gaming time is spent on F2P games

The full study is available from Insights Meta. There’s also an interactive infographic if you want to check it out.

Thanks to Niko Partners for the translation of the Gamelook.com article that stated:

  • 60-80% of players will abandon a F2P mobile game after one minute if they don’t like the gameplay or design. Here are the top reasons for abandonment:
  • 70 Percent – Monetization appears too quickly, or is overwhelming
  • 45 Percent – Difficulty/output balance
  • 34 Percent – Resources consumed too fast
  • 31 Percent – Poor initial experience
  • 28 Percent – Poor or no reward system

 

SuperDataResearch put out some recent numbers about the digital collectible card game market. Here’s the data:

The audience and revenue numbers are:

  • 53 Million Monthly Active Users (MAU) playing collectible card games ($4.1 Billion in revenue)
  • $2.8 Billion of the revenue is for physical card games (68.3 percent) and $1.3 Billion is related to digital collectible card games (31.7 percent)
  • 18 Million MAU playing collectible card games in the U.S. (1.4 Billion in revenue)
  • 2.5 Million MAU in Germany ($237 Million in revenue)
  • 2.3 Million MAU in the U.K. ($180 Million in revenue)
  • 2 Million in France ($158 Million in revenue
  • 1.8 Million in Russia ($55 Million in revenue)
  • 1.6 Million in Italy ($166 Million in revenue)
  • 1.6 Million in Spain ($154 Million in revenue)
  • 900 Thousand in Poland ($39 Million in revenue)

NOTE: Collectible card games are huge in Japan, however SuperData Research didn’t include any info for the country.

Here are a couple of other bits:

  • 12 Percent of digital collectible card game players convert to paying users in the U.S.
  • Average revenue per paying player in the U.S. is $27, again for digital collectible card games

The Finnish Game Industry is growing at a 39.5 percent growth rate because of some amazing game developers (SuperCell, Rovio, Remedy, (Among others)).

Below is an updated presentation on the market in Finland as well as an outline of opportunities in Finland for anyone looking to start an office there. Of particular note (although not in this presentation) is how Ilkka Paananen and the SuperCell team have deliberately chosen to ensure Finland receives the taxes it is due by not setting up operations in Ireland, the Netherlands Antilles and other tax havens, in order to pay what they owe their country. I applaud this approach to industry development and hope it serves as an example to other companies and countries on how a stand-up company deals with success and helps to build both an ecosystem and industry within a country.

My opinion is that with massive profits and mainstream appeal for many of its games, the Finnish game industry is setup in a way to pay for the development of games that can reach the global audience, but also ensure the industry’s ongoing success. It’s morally righteous and reverent to the local university system (as well as previous commercial entities such as Nokia) which have helped build it, and it appreciates the fact that the universities will continue to be a major part of its growth in the future.

In a world that is often short-sighted, Finland is a leader and their approach is a brilliant example in the post-Montreal economic development era.

According to a new report from GlobalCollect and NewZoo:

  • The global games market is this year expected to reach $70.4 Billion in 2013, an increase of 6% over 2012
  • MMO games will account for $14.9 billion, or 21.2%, of global game revenue in 2013
  • Asia Pacific (APAC) is now the largest games market in the world
  • 34% of global game revenue comes from APAC
  • 64% of MMO revenues now come from APAC
  • The three fastest growing countries in terms of game revenue are Malaysia (121% growth over the past year), Thailand (104% growth) and South Korea (100%  growth)
  • The top 10 countries by average transaction value in video gaming transactions all come from Europe and the Middle East.
  • GlobalCollect predicts:
  • Mobile gaming will grow by more than 35%
  • MMO games market will grow by more than 14%
  • Northern Africa and Central America are emerging hubs for video game fraud

2013 Global MMO Games Market Revenue ($14.9 Billion)

  • North America – $2.5 Billion (5% Growth Rate)
  • EMEA – $2.4 billion (8% Growth rate)
  • Latin America – $500 Million (15% Growth Rate
  • APAC – $9.5 Billion (18% Growth Rate)

2013 Global MMO Players (628 Million)

  • North America – 79 Million
  • EMEA – 208 Million
  • Latin America – 59 Million
  • APAC – 282 Million

Download the full report for free here.