Newzoo Global Games Market Report 2017 Light

2017 FREE GLOBAL GAMES MARKET REPORTFREE VERSION 2017 GLOBAL TRENDS, INSIGHTS, AND PROJECTIONS TOWARD 2020 GAMES MARKET REPORT 4 2017 FREE GLOBAL GAMES MARKET REPORT TABLE OF CONTENTS 1. KEY GLOBAL TRENDS 6 2. THE GLOBAL GAMES MARKET 10 3. REGIONAL OVERVIEW 13 5 download data on 50+ countries. we need to Traditional boundaries between games. platforms. • More than 50 (socio-)economic KPIs for the • iOS and Google Play app store revenue and 130 top countries in the world by population. telecom. and creating. regional. the broadening of games as a business. when Newzoo launched its first Global Games Market Report. including China. 100 public and non-public companies. with revenues exceeding the $100 billion mark to “The phase that the games market is now total $109 billion. pushing engagement time up dramatically and securing gaming’s position as the world’s favorite pastime. and future. • Device usage data from more than a billion • Continuous tracking of viewer data from streaming mobile devices worldwide.” • Continuous game behavior tracking of 10 million • Quarterly game revenue data from more than PC gamers across 40 countries. Game companies are quickly evolving into all-round entertainment companies. the terms ‘game business models to suit the digital age. including: viewers through esports. as a large part of the fast-growing viewing audience does not play the games it watches. Five years ago. audience. Games would not be games if we would not face another year of innovative change. From not only pioneered new ways of engaging and entertaining consumers. Newzoo CEO & Co-founder 6 © NEWZOO 2017 GET THE FULL 110-PAGE REPORT: NEWZOO. and sports industries are disappearing and sparking replace ‘gamers’ with ‘game enthusiasts’. media. viewing.COM/GLOBAL-GAMES-MARKET-REPORT . global revenues entering is redefining how we talk about amounted to approximately $70 billion. From a consumer perspective. Most games now provide consumers with entertainment on three different levels: with the games-as-a-service model and playing. but have also led the way in innovating an industry perspective. The future outlook for games has never been better but requires a new developer’ and ‘publisher’ no longer fit way of looking at the market. new partnerships and M&A activity across the globe. on tracking of 30+ million mobile gamers. A growth of 56% in five years illustrates how game companies have our industry. 2017 FREE GLOBAL GAMES MARKET REPORT FOREWORD NEWZOO’S 2017 GLOBAL GAMES MARKET REPORT This year is a landmark in the history of the games market.000 PETER WARMAN invite-only respondents. More than 100 local. NEWZOO’S EXPANDING DATA WAREHOUSE Consumers who no longer have time to play Newzoo’s Global Games Market Reports and the data accessible in our online dashboard are powered by our proprietary Global and master games now stay engaged as Games Market Forecast Model. This predictive analytics model combines insights and data feeds from an ever-increasing number of sources. and global • Android and iOS monetization metrics based games-related reports published by third parties. • Primary consumer research and trend data in 28 countries involving more than 80. 2017 FREE GLOBAL GAMES MARKET REPORT 1. KEY GLOBAL TRENDS 7 . 57 $76. The $70. Consumers are spending more time than ever on games. and this is especially true for the millennial generation. A COMMUNITY-CENTRIC APPROACH IS KEY TO SUSTAINABLE SUCCESS.48 term “gamers” is becoming increasingly obsolete.72 passion is reignited by viewing other players and worldwide championships. GAMES ARE RAPIDLY BECOMING THE WORLD’S FAVORITE PASTIME. Viewing professional or amateur game video content is bringing $108. as it fails to capture the variety of ways that games entertain consumers. MONEY FOLLOWS.90 $101. This includes lean-forward (gaming intensely or casually).91 $84.83 live streaming). GAMES ARE RAPIDLY BECOMING THE WORLD’S FAVORITE PASTIME.46 fessional gaming scene). 2017 FREE GLOBAL GAMES MARKET REPORT OVERALL MARKET TRENDS GLOBAL GAMES MARKET 1. lean-back (viewing content created by peers or provided by the pro- $128. “Game enthusiasts” would be a more encapsulating term. The reason for this is that games now cater to a much wider variety of interests.72 $115.06 back millions of lapsed gamers who no longer have the time to play but whose $91. 2012 2013 2014 2015 2016 2017 2018 2019 2020 8 © NEWZOO 2017 GET THE FULL 110-PAGE REPORT: NEWZOO.COM/GLOBAL-GAMES-MARKET-REPORT . WITH MORE TIME SPENT ON GAMES. REVENUE DEVELOPMENT 2. creating unique content and sharing (on-demand and $122. 2012-2020 3. GAME COMPANIES ARE BECOMING GLOBAL ENTERTAINMENT COMPANIES. as opposed to the advertising-based and many still consider Apple’s iPhones to be the best. the devices have slumped recently as the lifespan of high-end devices has increased number of hours spent watching non-interactive (video) content around game enormously and the rate of innovation has slowed. They also rely almost nology. 2. and hardware. and sharing behavior. Game back. 1. THE RISE OF THE (MINI-)GAMES AND ALTERNATIVE DISTRIBUTION. 2. 9 © NEWZOO 2017 GET THE FULL 110-PAGE REPORT: NEWZOO. At the same time. SMARTPHONES ARE SET FOR A NEW WAVE OF INNOVATION. creative.COM/GLOBAL-GAMES-MARKET-REPORT . better battery technology. However. The biggest game companies already entertain a far greater audience than most of world’s biggest traditional media and entertainment companies. SMARTPHONES ARE SET FOR A NEW WAVE OF INNOVATION. Looking rethinking their strategic position in the broader entertainment industry. 2017 FREE GLOBAL GAMES MARKET REPORT OVERALL INDUSTRY TRENDS TRENDS BY SEGMENT & REGION 1. As traditional media struggle to offer an interactive and apps alike and boost the replacement cycle. 3. GLOBAL CONSOLIDATION MOVES TO THE NEXT LEVEL. THE INDUSTRY IS REACHING A TIPPING POINT MOVING MOBILE GAMING: FROM EXPLOSIVE TO STABLE GROWTH FROM PRODUCTS TO SERVICES. software. It has taken years for other manufacturers to catch up entirely on direct consumer spending. screen tech- ing at stimulating social. This could ultimately lead to of AR and VR into the DNA of smartphones. 3. as they master both skills. game companies are quickly learning how to horizon include flexible screens. THE LONG LIFESPAN OF MOBILE GAMES PROVES SKEPTICS WRONG. GAME COMPANIES ARE BECOMING GLOBAL ENTERTAINMENT COMPANIES. game companies are It has now been exactly ten years since the iPhone was introduced. Crucial developments on the component around their content. sales of new model of many digital or broadcast media companies. together in this new device in terms of user experience. and the integration monetize video content and its millions of viewers. The market is now set for a franchises has exploded and is no longer seen as free marketing but as a serious new wave of innovation that will offer new possibilities for developers of games new business opportunity. As game IP turns increasingly into entertainment franchises. it is still remarkable how many step-change innovations were brought companies are the champions of interactive entertainment and are outstand. a media landscape in which game companies hold a key position. 3. of Western IP in China will lead to new truly global franchises. PC GAMING LEADS A MEDIA REVOLUTION. CLOSES OTHERS. franchises. TRULY GLOBAL FRANCHISES. such as Metal Gear Solid V. TO NEW TRULY GLOBAL FRANCHISES. 10 © NEWZOO 2017 GET THE FULL 110-PAGE REPORT: NEWZOO. This year. It has given Chinese game companies new confidence to export their successful games to the West. THE CHINESE APPETITE FOR TOP WESTERN PC GAMES HOLDS THE KEY 2. SAY GOODBYE TO SINGLE PLAYER. MOBILE FINALLY TAKES A BITE OUT OF PC GAMING REVENUES. are on the way out. 2.COM/GLOBAL-GAMES-MARKET-REPORT . 2017 FREE GLOBAL GAMES MARKET REPORT TRENDS BY SEGMENT & REGION PC GAMING: LEADING. 3. As competitive games become increasingly popular on console. THE GROWING GLOBAL INFLUENCE OF THE CHINESE GAMES MARKET. 2. THE LAST TRADITIONALISTS ARE NOW ON BOARD WITH DIGITAL. The global games market is increasingly aligned in terms of business models. we expect to see new attempts by Chinese game giants to launch games into Western markets. Free-to-play multiplayer though the majority of the most popular games is home grown. the success Single-player titles. CHINA: IN THE LEAD IN MANY WAYS 1. even starting to adjust their business models accordingly. NOT ALL LEGACY FRANCHISES WILL MAKE IT THROUGH THE CHANGE. A RENEWED ATTEMPT FOR CHINESE CONTENT IN THE WEST. opening the door for games such as Rocket League and Overwatch. With Tencent games are on the rise on consoles. BUT COMPETITION IS INCREASING CONSOLE GAMING: PLAYING CATCH-UP 1. COMPETITIVE GAMES THE NORM. publishers are Chinese gamers remain very interested in the top Western PC franchises. CHINA OPENS SOME DOORS. A RENEWED ATTEMPT FOR CHINESE CONTENT IN THE WEST. platforms. 3. and running games as a service is spreading. Initial efforts that started five years ago failed and Chinese companies quickly took an alternative route: investments and acquisitions. 1. THE CHINESE APPETITE FOR TOP WESTERN PC GAMES HOLDS THE KEY TO NEW COMPETITIVE GAMES THE NORM. SAY GOODBYE TO SINGLE PLAYER. and companies. 2017 FREE GLOBAL GAMES MARKET REPORT 2. THE GLOBAL GAMES MARKET 11 . 4. LATIN AMERICA 47% Most of this growth will come from smartphone 2017 TOTAL $4.0% YoY growing to $10.9% YoY +7. billion in game $51.8% YoY ASIA-PACIFIC which will reach $26.COM/GLOBAL-GAMES-MARKET-REPORT . on-year increase. North America is $26. the share of total MIDDLE EAST & AFRICA revenues claimed by each region has remained almost unchanged since 2016. with game revenues +4.2Bn the second-largest region.5 billion in 2016. up from $4.5 billion in 2020. 2017 FREE GLOBAL GAMES MARKET REPORT GLOBAL GAMES MARKET 2017 PER REGION THE GLOBAL GAMES MARKET PER REGION The Asia-Pacific region will generate $51. Latin America will grow to $4.4Bn gaming.2 billion this year.2% YoY in the coming years will be Rest of Asia (without $27.0 billion. +13. The fastest-growing region NORTH AMERICA 25% +9. This growth represents a 9.0% YoY of the market.3 billion by 2020.2% year- EUROPE. and Korea). We see the same trend in EMEA. taking a 25% share +8. Total revenues in North America will increase 24% year on year by 4.0Bn China. 12 © NEWZOO 2017 GET THE FULL 110-PAGE REPORT: NEWZOO.2Bn revenues this year.2 billion in 2017. Overall.0% to reach $27. a mature market but certainly not 4% $108.9Bn saturated. The Latin American market will also continue its healthy growth and reach $6. Japan. or 47% of total global game revenues. a significant downward revision of our previous estimate.5Bn $115.0% YoY 2016 2017 2018 2019 2020 Mobile gaming (smartphone and tablet) is the largest segment in 2017.6 billion. Mobile will remain the largest segment. accounting for 42% of the total global market.8Bn BROWSER PC 10% $108.4 billion in 2020.8% 28% YoY (SMART)PHONE TABLET GAMES 10% GAMES 25% 23% 21% 20% 19% 32% 5% 4% 4% 3% 3% $10. the majority of whom are gaming on smartphones.3% to $24.5 billion 2017.5Bn $122. Revenues for boxed/downloaded PC games will also drop by 1.COM/GLOBAL-GAMES-MARKET-REPORT . We now fore- cast boxed/downloaded PC games to reach $24.3% YoY 32% 35% +7. while emerging markets had single-digit growth rates.3% to $4. The segment also has the most gamers with 2.1Bn 29% 28% TABLET 30% 31% (SMART)PHONE 32% 10% 23% BOXED/DOWNLOADED 10% PC GAMES 10% BOXED/DOWNLOADED PC 10% 31% 2017 TOTAL $24.3% YoY $108.9% to claim 50% of the market by 2020.5Bn -9. growing with a CAGR (2016-2020) of 13.8Bn $35. PC browser game revenues will decrease by 9.4% YoY +22.9Bn 38% 40% -1.5 billion as gamers continue their transition to mobile. 2017 FREE GLOBAL GAMES MARKET REPORT GLOBAL GAMES MARKET 2017 PER SEGMENT THE GLOBAL GAMES SEGMENT BREAKDOWN OF GLOBAL GAMES REVENUES MARKET PER SEGMENT TOWARD 2020 BROWSER PC GAMES CONSOLE GAMES $128.8Bn $33. Console is the second-largest segment with revenues of $33.7Bn $4.1 billion.9Bn +3.6% YoY CONSOLE 4% $101. 13 © NEWZOO 2017 GET THE FULL 110-PAGE REPORT: NEWZOO. PC revenues of public companies decreased in both Western and Asian markets last year.3Bn +11. REGIONAL OVERVIEW 14 . 2017 FREE GLOBAL GAMES MARKET REPORT 3. 547 2 UNITED STATES OF AMERICA 326 261 $25.234 15 TAIWAN 23 21 $1.378 5 UNITED KINGDOM 66 62 $4.343 429 $818 18 TURKEY 80 49 $774 19 SAUDI ARABIA 33 25 $651 20 THAILAND 68 32 $597 15 © NEWZOO 2017 GET THE FULL 110-PAGE REPORT: NEWZOO.967 8 CANADA 37 33 $1.875 11 RUSSIAN FEDERATION 143 113 $1.388 802 $27. (M) ONLINE POP.947 9 SPAIN 46 38 $1.334 14 AUSTRALIA 25 22 $1. 2017 FREE GLOBAL GAMES MARKET REPORT TOP 20 COUNTRIES BY GAME REVENUES IN 2017 RANK COUNTRY POP. (M) TOTAL REVENUES ($M) 1 CHINA 1.188 7 FRANCE 65 57 $2.060 3 JAPAN 126 120 $12.428 13 BRAZIL 211 140 $1.029 16 INDONESIA 264 72 $880 17 INDIA 1.218 6 REPUBLIC OF KOREA 51 47 $4.485 12 MEXICO 130 84 $1.913 10 ITALY 60 43 $1.546 4 GERMANY 81 73 $4.COM/GLOBAL-GAMES-MARKET-REPORT . 2017 FREE GLOBAL GAMES MARKET REPORT NAM 2017E GAME REVENUES TOP COUNTRIES BASED ON GAME REVENUES 16 © NEWZOO 2017 GET THE FULL 110-PAGE REPORT: NEWZOO.COM/GLOBAL-GAMES-MARKET-REPORT . COM/GLOBAL-GAMES-MARKET-REPORT . 2017 FREE GLOBAL GAMES MARKET REPORT LATAM 2017E GAME REVENUES TOP COUNTRIES BASED ON GAME REVENUES 17 © NEWZOO 2017 GET THE FULL 110-PAGE REPORT: NEWZOO. COM/GLOBAL-GAMES-MARKET-REPORT . 2017 FREE GLOBAL GAMES MARKET REPORT W-EU 2017E GAME REVENUES TOP COUNTRIES BASED ON GAME REVENUES 18 © NEWZOO 2017 GET THE FULL 110-PAGE REPORT: NEWZOO. 2017 FREE GLOBAL GAMES MARKET REPORT E-EU 2017E GAME REVENUES TOP COUNTRIES BASED ON GAME REVENUES 19 © NEWZOO 2017 GET THE FULL 110-PAGE REPORT: NEWZOO.COM/GLOBAL-GAMES-MARKET-REPORT . COM/GLOBAL-GAMES-MARKET-REPORT . 2017 FREE GLOBAL GAMES MARKET REPORT MEA 2017E GAME REVENUES TOP COUNTRIES BASED ON GAME REVENUES 20 © NEWZOO 2017 GET THE FULL 110-PAGE REPORT: NEWZOO. COM/GLOBAL-GAMES-MARKET-REPORT . 2017 FREE GLOBAL GAMES MARKET REPORT APAC 2017E GAME REVENUES TOP COUNTRIES BASED ON GAME REVENUES 21 © NEWZOO 2017 GET THE FULL 110-PAGE REPORT: NEWZOO. boxed revenue breakdown FORECASTS Revenue share per genre | mobile. and gamer forecasts per segment. 2017 FREE GLOBAL GAMES MARKET REPORT SUBSCRIBE TO THE REAL DEAL THE INDUSTRY STANDARD FOR UNDERSTANDING AND SIZING THE GLOBAL GAMES MARKET REPORT CONTENT SUMMARY The report comprises of 110 pages of text. GLOBAL GAMES MARKET Revenues per region and segment | 2015-2020 Gamers per region and segment | 2015-2020 MARKET Digital vs. PC. and graphs on a global. and console KEY GLOBAL TRENDS PER SEGMENT Trends. mobile device specs SUBSCRIBE TODAY $6900 Wybe Schutte VP Business Development Client suport WYBE@NEWZOO. tables. revenue. and per country. esports franchises. regionally. and country scale. RANKINGS Top 35 Public Game Companies by Game Revenues globally. regional. consumer insights. Top 50 countries by Game Revenues REGIONAL MARKET OVERVIEW Revenues per segment | 2015-2020 Gamers per segment | 2015-2020 ANNUAL REPORT QUARTELY UPDATE DASHBOARD COUNTRY MARKET OVERVIEW 110 pages 16 pages BIME & XLS Revenues per segment | 2015-2020 Gamers per segment | 2015-2020 Demographics of gamers per segment SPECIAL FOCUS TOPICS: PC hardware.COM included DOWNLOAD THE FACTSHEET 22 . media. As the number one provider of games. and product behavior. attitudes. of market intelligence. innovative. and technology requires a new type of intelligence firm that is MARKET TRACKING CONSUMER agile. Includes quarterly development while keeping an eye across 28 countries using more growing their businesses. or specific data. esports. AND MOBILE INTELLIGENCE OUR EXPERTISE OUR MISSION The current pace of change in consumer behavior. or reporting needs. and ahead FORECASTS DATA INSIGHTS of the curve. 2017 FREE GLOBAL GAMES MARKET REPORT ABOUT NEWZ00 GLOBAL LEADER IN GAMES.COM STARTING AT $7K STARTING AT $25K STARTING AT $50K STARTING AT $100K 23 . FIND OUT MORE AT NEWZOO. than 200 variables. forecast dashboards. Our landmark reports. support and expertise. and and mobile intelligence in the world. consumers’ drivers. intelligence. ensure you never miss an optimize marketing. Track your market. In-depth Metrics that come straight from Understand your most valued market forecasts and trends the source. truly global. support all our market business intelligence. industries. OUR SOLUTIONS MARKET VS. 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