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In 2013, China overtook Japan to become the second largest games market in the world behind the US. Just two years later, China will overtake the US and boast almost double the revenues of Japan.
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USA & China Battle for#1 Top Games MarketG A M E S S E C T O R R E P O R T 2 0 1 5
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THE GLOBAL GAMES BATTLE | CASUAL GAMES ASSOCIATION 3
THE GLOBALGAMES BATTLE
In 2013, China overtook Japan to become the second largest games market in the world behind the US. Just two years later, China will overtake the US and boast almost double the revenues of Japan.
By 2016, the Chinese market will have already grown to $26.2Bn, far ahead of the $22.6Bn US market. This growth shows no signs of slowing down and will propel the Chinese market to over $30.0Bn by 2018.
While the Chinese market presents opportunities for Western developers, the current ecosystem ensures the majority of game revenues will continue to come from the local players and native games. Western developers will share indirectly in the spoils of this growth as Chinese companies such as Tencent look to Western developers for investment opportunities.
China Races Ahead as Local Publishers Prevail
US & China will take 50% of the Global Games Market in 2018
US Loses its Crown in 2015Game Revenues 2012-2018 | US vs. China
Growth KPIS 2015 | US vs. China
The Top 10 Countries by Game Revenues 2014 vs. 2018
Source: Newzoo 2015 Global Games Market Report Premium Source: Newzoo 2015 Global Games Market Report Premium
Source: Newzoo 2015 Global Games Market Report Premium
US
China
Japan
South Korea
Germany
UK
France
Canada
Spain
Italy
1
2
3
4
5
6
7
8
9
10
1
2
3
4
5
6
7
8
9
10
$21.3Bn
$18.0Bn
$12.0Bn
$3.8Bn
$3.6Bn
$3.5Bn
$2.4Bn
$1.8Bn
$1.5Bn
$1.5Bn
China
US
Japan
South Korea
Germany
UK
France
Brazil
Canada
Mexico
$32.8Bn
$24.0Bn
$12.6Bn
$4.3Bn
$3.9Bn
$3.7Bn
$2.6Bn
$2.1Bn
$1.9Bn
$1.8Bn
2014revenues
2018revenues
Population
Internet Population
Players
Payers
Total Revenue
GDP Per Capita ($)
China
1,401,587,000
740,038,000
446,284,000
156,976,000
$22,193,562,000
$11,587
United States
325,128,000
283,511,000
184,896,000
109,955,000
$22,007,854,000
$57,080
4 THE GLOBAL GAMES BATTLE | CASUAL GAMES ASSOCIATION 5
Console Still Dominates in the US Mobile Drives Growth in ChinaUS Games Market Per Segment & Screen 2015 China Games Market Per Segment & Screen 2015
In 2015, the US games market is expected to generate revenues of $22.0 billion, representing a year-on-year growth of +3.5%. This will make the US the second largest games market in the world behind China.
The share of digital revenues will reach 72%, or $15.8 billion. The Entertainment Screen (TV/Console, VR) continues to prevail in the US this year, generating $9.9 billion, or 45% of the market.
Despite common misconceptions that the US mobile games market is saturated, mobile segments will continue to see healthy growth; smartphone games and tablet games in will see year-on-year growths of +13.4% and +17.8% respectively to generate a total of $6.0 billion, or 27% of total revenues.
Overall, the US games market will grow with a CAGR (2014-2018) of +3.1% to reach $24.1 billion in 2018.
In 2015, China will move ahead of the US to become the world’s largest games market with expected revenues of $22.2 billion.
This represents a year-on-year growth of +23.0%. China is expected to reach $21.4 billion in digital sales, or 97% of total revenues. The Chinese games market is dominated by the Computer Screen (PC/MAC), which will generate $15.2 billion this year, or 68% of total revenues.
Mobile segments will continue to grow with huge impact; tablet games will see a year-on-year growth of +39.0%, while smartphone games will jump and astounding +50.0%. Together, they will total $6.5 billion (or 29% of total revenues), making it the number one mobile games market in the world in 2015. Most impressively, local Android app stores in China alone will generate revenues of $3.6 billion in 2015, or 12% of the global mobile games market.
Source: Newzoo 2015 Global Games Market Report Premium
Source: Newzoo 2015 Global Games Market Report Premium
Source: Newzoo 2015 Global Games Market Report Premium
Source: Newzoo 2015 Global Games Market Report Premium
THE GLOBALGAMES BATTLE
2018Snapshot of the Future
Key Facts
300.2M
195.4M
$24.0Bn
31%
+3.1%
OnlinePopulation
Gamers
Revenues
Share MobileRevenues
Revenues CAGR2014-2018
2018Snapshot of the Future
Key Facts
900.2M
597.4M
$32.8Bn
34%
+16.1%
OnlinePopulation
Gamers
Revenues
Share MobileRevenues
Revenues CAGR2014-2018
6 THE GLOBAL GAMES BATTLE | CASUAL GAMES ASSOCIATION 7
The Gamers
Cross-Platform Big Spending | US & China
Top 100 Android Game Revenues Split by Genre
Of all American mobile gamers, 4.8% can be classed as big spenders versus 2.6% in China.
The demographic makeup of this valuable target group is similar across the two countries with China having a slightly higher share of females amongst the big spenders.
Men aged 21-35 make up almost half of the American big spenders on mobile.
This year in China, The mobile version of Fantasy Westward Journey, one of China’s biggest PC titles published by Netease, entered the grossing ranking at the #1 position.
Three of the Top 20 iOS games and Top 20 Android games in China are Western: Clash of Clans and Boom Beach feature in both. The Top 20 grossing games take 74.2% of all revenue of the Top 100 games in China and 61.3% in the US.
This means China iOS revenues have less of a long tail compared to the US which, in principle, is bad news for developers. Android, because of its diverse ecosystem, has a significantly longer tail in both countries.
Of the top 20 grossing iOS games in the US in June, seven were social casino titles with the highest ranking title (Big Fish Casino) at number six.
This means social casino titles account for 25.4% of the revenues of the Top 20 games. This genre does not perform so well in China where most casino style games are banned. The Chinese market is unique in the popularity and success of RPG mobile titles.
Boom Beach #8Clash of Clans #14Heartstone #19Dungeon Hunter 5 #36
Simcity Build It #66Asphalt 8 #69Plant vs Zombies 2 #72Hay Day #75
Hitman: Sniper #97Iron Force #99Empires & Allies #100
Mobile: A Di� erent Battleground
Source: Newzoo Data Explorer 2015
Source: Newzoo Monthly iOS Rankings
Source: Newzoo Monthly iOS Rankings
Age/Gender of Big Spenders on Mobile
Source: Newzoo Data Explorer 2015 Source: Newzoo/TalkingData China Mobile Games Market Monitor
Western Games in the Top 100 iOS Games | China
Source: Newzoo/TalkingData China Mobile Games Market Monitor
THE GLOBALGAMES BATTLE
5%9%
48%43%
22%
12%
5%9%
17%22%
3% 5%
25%75%
35%65%
Male US
10-20 21-35 36-50 10-20 21-35 36-50
Male China Female US Female China
69%of mobile big spenders
also spends big on console gaming
60%of mobile big spendersalso spends big on PC gaming
21%
20%
19%
12%
10%
10%8%
19% of revenues ofthe Top 100 Android
games are generated by
RPG GamesCasual
Cards
Roleplay
Action
Casual (Parkour)
Strategy
Shooting
Social Casino Games Generate 25% of Top 20 iOS Game Revenues in US
Top 5 Western Publishersby Android Revenues in China
Share of Top 100 Android Game Revenues
in China (May 2015)
1. Supercell2. Mojang3. Raleigh4. PopCap5. Gameloft
Top 5 Chinese Publishersby Android Revenues in China
1. Tencent2. NetEase3. Yinhan Games4. Happy Elements5. iDreamsky
11.1% 48.2%
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Casual Connect Tel Aviv October 19-21, 2015
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.
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