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
According to Newzoo, the top 100 countries in the world by game revenue includes:
1.7 billion gamers
$81.5 billion in revenue for 2014 this year
The US is the top country for game revenue in 2014 at $20.5 billion
Japan monetizes the most per person online at $120.20
I ran the numbers differently than they did. You can see the ranks of game revenue by country on the left, but I chose to look at it differently. I divided the revenue by the online population of each country. This gave me the RPPO (Revenue Per Person Online) – since I figure this is a good gauge of technology and that these people are also likely playing on mobile devices. Then I ran the ARPD (Average Revenue Per Day) based on that number divided by 365. It results in some interesting data.
For me, this is most interesting for geographic (soft) launches of mobile games. If we can look at how a game monetizes in specific country or two, we can make a more educated guess about how it might monetize given the propensity to spend per country. Of course it isn’t flawless, but it sure does give an interesting set of benchmarks to measure against. Here’s the full list.
It’s important to note that in addition to PC/MAC games, EA’s Origin service and Ubisoft’s Uplay service are also tied into their console and mobile titles, so their 50 million user totals are not just for PC/MAC.
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.