the asian games market: sizing up opportunities
DESCRIPTION
East Meets West: In a rapidly globalizing games market, what are the opportunities for non-Asian companies in Asia and vice versa?TRANSCRIPT
C A S U A L G A M E S S E C T O R R E P O R T 2 0 1 6
CGA.CGA.
THE ASIAN GAMES MARKET SIZING UP OPPORTUNITIES
Source: Newzoo Global Games Market Report Premium
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.
PC Games Console Games Mobile Games
Game revenues generated by Asian public companies outside of Asia
Game revenues generated by non-Asian public companies in Asia
69%
21%
10%17%
19%64%
$11.4BN32%
OF TOTAL
$5.3BN16%
OF TOTAL
SIZING UP ASIAN OPPORTUNITY | CASUAL GAMES ASSOCIATION 3
6%
35%
36%
10%
11% 2%
In 2016, Japan, Korea, China & Greater SEA Will Total $45Bn Game Revenues
Global Games Market Revenues Per Sub Region | 2016e $99.6BnGlobal game revenues in 2016
45%Of the global games market revenues come from key Asian Markets
2016e Game Revenues by Segment | Japan, Korea, China & Greater SEA
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.
TOTAL REVENUES $45BN
Casual Webgames
PC/MMO
Smartphone
Tablet
TV/Console
Handheld Console
Source: Newzoo Global Games Market Report Premium
Source: Newzoo Global Games Market Report Premium
NAM$25.4Bn+4.1%
W-EU$17.3Bn+4.4%
LATAM$4.1Bn+20.1%
E-EU$3.0Bn+7.3%
CHINA$24.4BN+15.1%
MEA$3.2Bn
+26.2%
REST Apac
$0.8Bn+53.5% SEA
$3.7BN+26.4%
SOUTH KOREA$4.0Bn+2.3%
JAPAN$12.4Bn+1.2%
OCEANIA$1.3Bn+2.1%
4
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
ONLINE POPULATION
1.2 Bn
2.2 Bn
GAMERS
0.9 Bn
GAMES REVENUES
$44.6 Bn
MOBILE GAME REVENUES
$20.4 Bn
POPULATION
ONLINE POPULATION
3.4 Bn
7.4 Bn
GAMERS
2.1 Bn
GAMES REVENUES
$99.6 Bn
MOBILE GAME REVENUES
$36.9 Bn
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.
55%
3%
42%
2016e Global Mobile Game Revenues
Key Asian Markets Rest of APAC Rest of APAC
TOTAL REVENUES
$36.9Bn
29%
35%
40%
45%
55%
VS
Source: Newzoo Global Games Market Report Premium
Source: Newzoo Global Games Market Report Premium
THE WORLD AS A WHOLE IN 2016
SIZING UP ASIAN OPPORTUNITY | CASUAL GAMES ASSOCIATION 5
39%
6%
55%
Source: Newzoo Global Games Market Report Premium
China & Japan: A Snapshot ASIAN OPPORTUNITY
China 2015
This Year, 11 Asian Countries Generate 55% of Global Mobile Game Revenues
Mobile Revenues
$7.1 BnEstimate 2015 “Western” Revenues(of revenues of top 100 iOS games)
Share:
5.7% ($400M)
Comparable to all games revenues in:
Poland
Italy
China 2016e
Game Revenues15%YoY Growth Share Mobile Games
41% Mobile Revenues $10.0Bn $24.4 Bn
Japan 2015
Mobile Revenues
$6.2 Bn Estimate 2015 “Western” Revenues (of revenues of top 100 iOS games)
Share:
4.9% ($300M)
Comparable to mobile game revenues in:
Game Revenues1.2% YoY Growth Share Mobile Games
52%Mobile Revenues $6.5Bn $12.4Bn
Japan 2016e
Google Play iOSOther
2015App Store Share
2015App Store Share
Google Play iOSOther
2015App Store Share
52%41%
7%
6
South Korea 2015
South Korea & Greater SEA: A Snapshot
Google Play iOSOther
Mobile Revenues
$1.8 BnEstimate 2015 “Western” Revenues(of revenues of top 100 iOS games)
Share:
14.2%($260M)
Comparable to mobile game revenues in:
Brazil Google Play iOSOther
Canada
South Korea 2016e
Game Revenues2.3% YoY Growth Share Mobile Games
48%Mobile Revenues $1.9Bn$4.0Bn
Greater Southeast Asia 2015
Mobile Revenues
$1.4 BnEstimate 2015 “Western” Revenues (of revenues of top 100 iOS games)
Share:
~33% ($470M)
Comparable to mobile game revenues in:
Share Mobile Games 56%
Mobile Revenues $2.1Bn26.4%
YoY GrowthGame Revenues$3.7Bn
Google Play iOSOther
79%
16%
2015App Store Share
2015App Store Share
Source: Newzoo Global Games Market Report Premium
Greater Southeast Asia 2016e
16%
79%
5%
25%
54%
21%
SIZING UP ASIAN OPPORTUNITY | CASUAL GAMES ASSOCIATION 7
Asian Companies Continue Impressive Growth
ASIANOPPORTUNITY
Top 10 Public Asian Companies by Game Revenue | 2014 vs. 2015
21% YoY Growth for Tencent
$4.7BnYoY growth for the top 10 companies
Rising Asian Stars
FY 2015 Revenue FY 2014 Revenues
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.
Source: Newzoo Global Games Market Report Premium
FY 2015 Revenues FY 2014 Revenues
ABOUT CGA
When it comes to the health of your business, the more things that work
together, the better. Which is why the Casual Games Association is a
critical portion of the success of your company and the industry as a
whole. It means that you and your team have access to cutting edge
educational resources and are connected to thousands of other game
industry professionals, members of the press and service providers
around the globe.
Learn more at http://www.cga.global
For press inquiries, please email [email protected]
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 2016Casual Connect Tel-Aviv: 1 - 3 November 2016Casual Connect Europe, Berlin: 7 - 9 February 2017
See you in San Francisco
Casual Connect USA in San Francisco 18 - 20 July 2016
About NewzooNewzoo is an innovative global market research and predictive analytics firm with a primary focus on games. Newzoo provides its clients with a mix of market trends, financial analysis, revenue projections, consumer insights, data modelling solutions and predictive analytics services across all continents, screens and business models and works for the majority of top 25 public companies by game revenue.
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
CGA.CGA.