Digital game market in emerging market including South East Asia, India, Middle East and Africa.

1. 2014/5/18
Media Create Co. Ltd.,
Analyst Sho Sato
Game Market and Industry in Emerging
Countries on Indian Ocean Rim
- Current Condition and Prospects

2. About the lecturer
 Work at Media Create, a Japanese marketing
firm specialized in game industry.
 Specialized in research on game market and
industry in emerging countries. Since I
worked in an game industrial association in
the Hashemite Kingdom of Jordan, I have
close network with Middle Eastern game
industry.
 Besides making lectures about MENA market
at CEDEC 2012 and 2013, I made a
presentation about the game market in Arab
nations, Iran and Turkey at the same
meeting last year.
 Invited by NASSCOM, the Indian IT industrial
association, I will make a public presentation
at NGDC 2014 (November 14 – 15, Pune,
India)
NGDC: Indian game developers conference
http://ngdc.nasscom.in/ngdc2013
My lecture at the same meeting last year
http://www.slideshare.net/ShoSato2/ss-22327913 （Japanese）
http://www.slideshare.net/ShoSato2/the-game-market-in-arab-nations-iran-and-turkey-22328641 （English）

3. Emerging countries on Indian Ocean Rim
2, Middle East and
North Africa (MENA)
1, Southeast Asia
4, Sub-Sahara Africa
3, South Asia
Non Residential Indians have strong network
Close relationship with Islamic culture
Influence of Indian films (like Bollywood).

4. Overview of Southeast Asian game market
While mobile game market expands quickly, PC game market is still not ignorable
Unlike other nations in
the region, Thailand has
mid-scale console game
market
Indonesia is most populated country
in the region and its mobile game
market has unparalleled potential
Though Vietnam is the
largest PC game market in the
region, further governmental
regulations will increase a risk
Income per capita was high,
but Singaporean game market is
quite small due to limited
population
PC game occupies more
than half of the market in
Philippines
Malaysia has higher ARPU
than Indonesia but market
potential is smaller
Game market in Laos,
Myanmar and
Cambodia is
underdeveloped.
Brunei has similar
market structure to
Singapore.

5. Overview of Southeast Asian game industry
Game companies from developed countries sometimes has
offices in Singapore and other countries in the region
Malaysia has both
game developers and
localizers
Around 60 game studios in
Philippines mainly work as
subcontractors for western game
companies. 90% of their sales
came outside the country
In Indonesia, a large number of
developers locate office in Jakarta,
Bandung and Surabaya
Some game companies put an
office in Singapore as governing
other development studios in the
region
Regional publishers such
as Asiasoft locate office in
Thailand
Vietnam gradually
shows development shift
from PC to mobile.
Industrial accumulation in
Hanoi and Ho Chi Minh
Few game companies
in Laos and Cambodia.
We did not confirm any
game studios in
Myanmar so far.
Brunei has a serious
game company.

6. Recent topics of South East Asian game industry
 Due to recent expansion of smartphone game
market worldwide, many startups develop games
for global market rather than local market.
Local game studios, however, often struggle with
getting funds, thus few companies like Agate in
Indonesia successfully scale up
 Since Flappy Bird developed by Vietnamese
made a gigantic hit, IT incubation funds and
public investors closely watched game
development scene in emerging countries.
 Formerly PC game dominated the market, with
Chinese and Korean online game companies
regarding there as a “backyard”. Recently
the advance of major console and mobile game
companies and local events held by Nikkei BP
strengthen presence of Japanese game
companies compared to other regions.
Game & Creative Contents Networking by Nikkei BP
http://expo.nikkeibp.co.jp/g-networking/bangkok/index.html
DreadOut, an Indonesian Horror game, raised funds at Indiegogo
https://www.indiegogo.com/projects/dreadout

7. Recent topics of MENA game market
 In 2013, total game market in MENA
(Arab, Iran, Turkey) was estimated to be
220 billion yen and around.
 Game studios in the region such as Peak
Games shifted from web apps to native
apps because of the increase in network
speed (i.e. 3G, LTE) and penetration of
smartphones. In native apps market,
localized titles are increasing their
presence.
 The number of female game users is
rapidly increasing in the whole Middle East
including Saudi Arabia and Turkey.
 Students studied in western countries
lead popularity, and expansion of game
players will be noteworthy.
“Nida Harb 2”was localized by Arabic game developer “Babil games.”
http://babilgames.com/
Okey, a representative game by Turkish developer Peak Games
http://www.peakgames.net/#5

8. Recent topics of MENA game industry
• Both internal and external investment in
game industry is accelerated. In 2013,
Lebanese game companies gathered more
strong attention than Jordanian game
companies: a good example is “Zakeh”
that developed “Pou”, a long-selling game
for kids in Europe, North America and Latin
America.
• Rather than North American and West
European companies, North European
companies such as Star Arcade in Finland,
and Asian companies from China and Korea
advance to the region.
• Many game companies purchase licenses for
international game IPs and get funds in gulf
nations such as UAE, and develop games in
the countries like Jordan, which has cheap
and abundant IT-related human resources.“Survival Race” by Wixel Studio
http://www.wixelstudios.com/abou-ahmad/
Pou
http://www.pou.me/
（cf. WamdaのHow a 24-year-old Lebanese entrepreneur found
global success by beating Tamagotchi at their own game）

9. Recent topics of South Asian game market
• According to estimation by NASSCOM,
Indian game market in 2014 will be
amount to 18 billion yen, and it will
expand to 25 billion yen and around.
• North western cities in India have certain
amounts of console game market.
Recently, game specialties such as
Game4U and Games The Shop expand
their business in shopping malls. But,
various tasks still remain such as
logistics and high tariffs.
• Though use of mobile contents is
increasing, unit price of entertainment is
quite cheap as a whole, so expansion of
the game market in revenue takes further
time.
Fans of FIFA 13 lined up in October 2012
http://gamingbolt.com/fifa-13-game4u-midnight-launch-was-a-massive-success
Estimated by NASSCOM
Game market and game users in India in 2015

10. Recent Topics of South Asian game industry
• According to India’s Game Studio
Directory, as of 2012, number of game
companies in India was 125. 28
organizations have more than 100 staffs.
• Many game companies have offices in
Mumbai, Hyderbad and Bangalore, and,
like Indian IT companies, they often
develop games or parts of games for
North American game companies.
Western game companies such as
Microsoft, Gameloft, Disney, Zynga and
Glu already have offices in India.
• Most Indian game companies develop
games not for Indian game market but for
global game market.
• India has plenty IT engineers, some of
whom have development experience in
North America. While they have long
business results and are good at engaging
in specialized works, establishment of
creativity will be the important topic.Number of game companies in India
http://www.nasscom.in/sites/default/files/userfiles/file/Indias_Game_Studio_Directory.pdf

11. Example of Indian game companies:
Lakshya Digital
 Established in 2004, Lakshya Digital is the
largest Indian game studio as for number
of employees. Employing more than 200
members, the studio has offices in India
and Singapore,
 They are authorized developers for Sony
and Microsoft, and are notable for making
more than 95% of Xbox Live Avatars. They
participate in development of Uncharted 2,
WWE, Disney Epic Mickey and so on.
 Having strengths in 2D and 3D game arts,
the studio also has Japanese staff.
 As for in-house games, they developed
“Rage Warriors,” a mobile game for iOS
released in September 2013.
Portfolio of Lakshya Digital
http://lakshyadigital.com/lakshya-3d.php

12. Sub-Sahara African game market and industry
 So far in Africa, South Africa is the only established
game market. According to estimation by PwC, its
market scale in 2012 was around 25 billion yen.
 According to MCV, characteristics of South African
game market were similar to Western European game
market, and games for core-gamers are more
popular than games for families.
 Penetration of telecommunication infrastructure is
accelerating in the whole region, and regional unique
mobile services like M-PESA are increasing.
Switching from feature phones to smartphones
proceeded less smoothly than other regions. Slow
internet speed was also a significant problem for
online games.
 Since global investors pay attention to Nollywood
movies and IT industry in Nigeria, which became the
largest GDP in the region, it might possibly become
the regional entertainment hub including games for
the future.
Last year’s rAge, a game conference in South Africa
http://www.rageexpo.co.za/visitors-centre/
http://www.rageexpo.co.za/gallery/?album=2&gallery=16
GameTruck Nigeria by a photo essay “Gaming in West Africa”
http://www.polygon.com/features/2013/12/13/5123338/gaming-west-africa-photo-essay

13. Summary and prospects
・Relaxation in restrictions on capital, development, distribution, promotion and consumption
makes emerging countries more important for game development
・Most local game studios develop games for global market
・Lack of local publishers and establishment of creativity are the most important subjects
・Unique business schemes using mobile phones might possibly buoy African game industry
・Mobile game market in emerging countries will surge if career payment will be introduced
Number of small game studio is skyrocketing in emerging countries.
While Southeast Asia and MENA has huge market potential, South Asian game industry is noteworthy.
In 2019 Industry Scale
Small Medium Huge
MarketScale
huge
Saudi Arabia Indonesia
Medium
Malaysia
South Africa
UAE
Turkey Iran
Vietnam Thailand
Small
Nigeria
Cambodia
Jordan Lebanon
Pakistan
Philippines
India
※According to our estimation

14. Introduction of our forthcoming report on
emerging game market
 By the end of 2014, we plan to publish “EGR”
monthly. EGR updates the latest trends of game
market and industry in emerging countries.
 Before that, we will publish its pilot or introductory
edition, “Emerging game industry report: a separate
volume for the game industry report” in August this
year.
※So far we plan to publish only in Japanese.

15. Scope of our report
Middle East and
North Africa
Eastern Europe,
Central Asia
Sub-Sahara Africa
Latin America
Southeast
Asia
East Asia
South Asia
Now we are seeking for collaboration with specialists
of game industry in each emerging country!
Contents on our emerging game market report (around 100 pages)
Macro data such as estimation of
game market in each country
Roadmap of emerging
game market
Contributions from specialists
Recent trend of market and industry Custom & Culture Legal structure
Price & Communication Index List of conferences overseas Generational analysis

16. Aim of the report on emerging game market
We plan that the first 100 customers can get this report free of charge.
(As a rule, one volume per each)
If you are interested in the report, please contact the adress below:
info@m-create.com
Later we will send you details about the report and clarification on how to
make pre-order.

17. Thank you very much!
Media Create Co. Ltd.,
http://www.m-create.com/
info@m-create.com
Sho Sato, Analyst
sato@m-create.com