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

2
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

3
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
26COUNTRIES
10 YEARS OF DATA
Market data

4
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

5
ASIAN
DIGITAL GAMES
MARKET

Rest of Asia*
6%
South Korea
11%
China
38%
Japan
45%
6
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%
$19.6BAsian
digital games
market
Asia digital games market size
PC
4%
2014
2015E
2016E $21.2B
$19.6B
$18.7B

7
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%
$19.6BSize 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.

8
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.
9
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
YoYGrowth%
Social
Mobile
Console
P2P MMO
PC
F2P MMO
-14%
+11%
+11%
+ 7%
+19%
+ 4%
Shareofmarkettotal50%100%
+11.3%
+8.7%
+22.1%

10
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

11
EVERYTHING
ELSE

12
Senior Analyst, Consumer Insights
Stephanie Llamas
stephanie@superdataresearch.com
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
jamie@vgintel.com
+1 (800) 814 3459 ext. 4354
www.videogamesintelligence.com/monetisation-europe
Twitter @VGIntel

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

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