Digital Games in Asia 2015 Special Edition: Game Monetisation EU Conference

Digital Games in Asia, April 2015 | Copyright © 2015 SuperData Research. All rights reserved. | www.superdataresearch.com | www.videogamesintelligence.com/monetisation-europe

DIGITAL GAMES IN ASIA 2015GAME MONETISATION EU CONFERENCE

SPECIAL EDITION

| Playable media & games market research

http://www.superdataresearch.com

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SuperData provides market intelligence on the online, digital and mobile games industry. Every month we collect point-of-sale data directly from developers, publishers and payment providers, across six major digital game categories: social games, free-to-play MMOs, subscription-based MMOs, digital console, downloadable PC games, and mobile games. Based on the spending of 37 million unique digital gamers, we are able to provide an accurate reading of the global digital games market, identify key industry trends, offer reliable forecasts, establish market share, and evaluate marketing spend.

We offer insight into the next generation of interactive entertainment. Using our proprietary panel of 37 million unique digital gamers, we establish key industry benchmarks such as monthly active users, conversion rates, average revenue per paying user, and title-level revenue estimates. Combined with qualitative consumer studies, customers use our data to evaluate their performance, identify key growth opportunities, assess revenue potential, optimize their efforts, and better understand their audience’s wants and needs.

About us


For an explanation of our terminology, please visit: http://www.superdataresearch.com/terminology For a more detailed overview and explanation of our methodology and data collection, please refer to our website: http://www.superdataresearch.com/methodology


http://www.superdataresearch.com/terminology

http://www.superdataresearch.com/methodology


http://www.videogamesintelligence.com/monetisation-europe

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MARKET-LEVEL DATA

50 CONTRIBUTING PUBLISHERS

4 KEY METRICS

450+ UNIQUE TITLES

37MM UNIQUE PAYING USERS

200MM+ TRANSACTIONS

country-level and regional data available

regional data available only

We take a ‘big data' approach when establishing market size. By analyzing millions of transactions worldwide, we are able to gain both a macro- and micro-level grasp on how digital gamers pay and play. Our transactional dataset goes back over a decade and offers reliable payment insights that we couple with other market data such as device penetration rates, population and spending power to create our proprietary model. We report on key metrics such as monthly active users, conversion rates, average revenue per paying user by both month and year. Our estimates span across six key digital gaming segments, including mobile, social, free-to-play and pay-to-play MMO, PC and console.

6 GAMING SEGMENTS

26 COUNTRIES

10 YEARS OF DATA

Market data





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Don’t miss our Asia data at the GME SuperData will discuss the opportunities, and misconceptions, of the Asian games market.


Stephanie Llamas Senior Analyst, Consumer Insights

Stephanie Llamas, Senior Analyst at SuperData Research, will present a data-driven session exploring the areas of opportunity in Asia for digital games, and discuss how to strategically navigate this unique market. Attendees will learn about misconceptions about the region, from where its year-over-year growth comes and on which emerging markets to keep an eye.

By the end of 2015, Asia's digital games revenue will reach almost $20 billion, carving out 38% of the worldwide market. The region's revenue will increase by just 5% this year after enormous growth through 2014, making it key for western publishers to be increasingly strategic about their entry into the market. • Hear about major trends and shifts in China,

Japan and South Korea • Learn what it takes for western publishers to

get a piece of the region's booming industry • Get data on emerging markets and expert

advice on how to tap into growing sectors

Globalise Your Games: Asia’s Digital Games Market





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ASIAN DIGITAL GAMES

MARKETDigital Games in Asia, April 2015 | Copyright © 2015 SuperData Research. All rights reserved. | www.superdataresearch.com | www.videogamesintelligence.com/monetisation-europe


Rest of Asia* 6%

South Korea 11%

China 38%

Japan 45%

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Asia’s digital games revenue nears $20B A high-spending mobile market helps make Japan the largest earner in the region.


Asia’s year-over-year market growth is forecasted to reach 8% in 2016E. Asia currently accounts for 38% of the worldwide digital games market, and as free-to-play MMOs continue their slow but steady climb they will contribute even more to Asia’s $21B market in 2016E.

Japan outranks China as the largest digital games market in Asia. Despite having less than a tenth of China’s population, Japan’s digital games revenue is 16% higher. This is largely due to high spending on mobile, which earns nearly twice as much as China’s mobile games market.

Nearly a quarter of Asia’s digital games revenue comes from PC games. Asia’s traditionally PC-centric games culture has helped catalyze the transition from retail to digital in the space. This is particularly the case in South Korea, where PC revenue makes up more than a third of the digital games market.

*Rest of Asia refers to India, Indonesia, Philippines, Singapore, Thailand and Vietnam.

Asia digital games market share by country and gaming segment, 2015E

Mobile 59%

Social 11%

Free-to -play MMO 17%

Pay-to -play MMO

4%Console 5%

$19.6B Asian

digital games market

Asia digital games market size

PC 4%

20142015E2016E $21.2B

$19.6B$18.7B




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eWallets dominate digital games payments in Asia eWallet brands like Alipay make up a third of the region’s digital payment preferences.


Payment preferences for all digital games in Asia, 2015E

Other 2%

Bank transfer 9%

Prepaid 11%

Mobile 16% Credit/Debit Card

21%

eWallet 32%

$19.6B Size of Asian digital games

market in 2015E

Direct Debit/ Real Time Bank

Transfer 9%

3.2% $32.44Mobile conversion rate, Asia 2015E

Average mobile revenue per spender, Asia 2015E

A third of Asian players who pay for digital gaming content prefer eWallets over other payment methods. Localized eWallet brands like Alibaba’s Alipay and Tencent’s Tenpay overtake gamers’ preferred payment methods in Asia. Other methods like credit cards and mobile payments also see a surge of local brand preference.

Mobile spending in Asia is higher-than-average but its conversion rate is globally one of the lowest. High spending, particularly in Japan, helps Asia’s mobile ARPPU come in almost 30% higher than the global average. However, fewer players spend in Asia than in almost any other region.





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CHINA



China’s digital games revenue grows five times faster than the rest of Asia in 2015E. Strong growth in mobile, social and free-to-play MMO help China’s digital games market grow 10% while the rest of the region grows by only 2%. As a result, China will continue to slowly capture a larger piece of Asia’s market. Seventy-five percent (75%) of China’s added revenue in 2015E will come from its mobile market. Currently garnering 45% of China’s total digital games revenue, mobile will grow by an additional $570MM by year’s end. Social games are still growing in China, capturing almost a quarter of the market. Already the second largest games sector in the country, China’s social market is a stark contrast to Japan’s and Korea’s, where social makes up 4% and 3% of digital games revenue, respectively.

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China’s digital games market hits $7.5B in 2015E China’s games revenue growth this year is five times bigger than the rest of Asia’s.


2014 2015E 2016E

$21.2

$19.6$18.7

$8.2$7.5

$6.8

China digital games market forecast and market share

vs Asia total ($bil)

2014 2015E

China digital games market share by game category

YoY Growth %

Social

Mobile

ConsoleP2P MMO

PC

F2P MMO

-14% +11%

+11%

+ 7%

+19%

+ 4%

Shar

e of

mar

ket t

otal

50%

10

0%

+11.3

%

+8.7%

+22.1

%




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China’s mobile market grows 19% in 2015E China continue to see mobile revenue growth through 2016E while the west stagnates.


Mobile revenue growth: China vs. U.S.

-1%

3%

23%13%

19%

44%

2014 2015E 2016E

*Other refers to genres with less than 5% market share, including Sports, Sci-Fi, Racing and Card games.

China MMO market share Free-to-play vs. Pay-to-play

As mobile games slow down in the west, China’s annual growth is still more than 10% through 2016E. The U.S. mobile games market has largely reached saturation while China still experiences significant growth. With roughly 650MM monthly active users, China’s audience is set to surpass 800MM by next year. That’s more than twice the U.S. population!

Free-to-play MMO revenue in China increases 11% by the end of 2015. Free-to-play MMO growth is second only to mobile in China. Free-to-play MMOs increasingly edge out pay-to-play, commanding 80% of the Chinese MMO market by 2017E. Players continue to move away from cost- and time-intensive subscription titles like World of Warcraft and onto games like Dungeon Fighter which offer a lower time commitment and barrier to entry.

0%

50%

100%

2013 2014 2015E 2016E 2017E

$1.5BRevenue, 2015E


$0.5BRevenue, 2015E



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EVERYTHING ELSE




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Senior Analyst, Consumer Insights Stephanie Llamas [email protected]

401 Park Avenue South 10th Floor New York, NY 10016 +1 (646) 248 5241 www.superdataresearch.com Twitter @_SuperData

@Stephinaners

Contact


Event Director, Game Monetisation Europe Jame Harding [email protected]

+1 (800) 814 3459 ext. 4354 www.videogamesintelligence.com/monetisation-europe Twitter @VGIntel





Technology

Digital Games in Asia 2015 Special Edition: Game Monetisation EU Conference