With innovative advancements in such areas as gaming consoles, PCs, and mobile gaming, the video game market continues to grow. According to Newzoo Global Games Market Forecast, the revenue in this market is expected to reach USD225.7 billion by 2025.
The data indicates, over the last few years, a high concentration of growth in Asian countries. Unlike in previous years, where Japan and the West led the pack, of the top 5 countries dominating the gaming industry, 3 are in Asia.
What are some possible factors for this shift? Let’s begin by looking at these five countries with notable international market shares in the video games industry.
1. China
China is a major producer and seller of global gaming merchandise and other gaming components. It also yields the greatest output in game manufacturing.
China’s emergence as a major player in the international gaming market comes with the rise of Tencent, a studio leader in video game development and game application. In addition to Tencent’s expanding international involvement in various established gaming companies, China also possesses an incredible video game-related manufacturing industry.
Until recently, PC games have enjoyed the largest share of the market in China, with people going to internet cafes to play the most popular games. The improvement in smartphone technology, combined with its increased usage, however, has shifted the preference of gamers from internet cafes to mobile games. According to the 2021 Chinese Video Game Industry Report (2021年中国游戏产业报告), the mobile gamer population has reached about 656 million. This number is larger than the population in both the US and Japan combined.
2. USA
A traditional gaming powerhouse, the US has numerous iconic game developers that are internationally known. With a gamer population now reaching 215 million people, or 66% of the total US population, the growth of these different gaming communities is such that, in the US, video gaming is now accepted as a normal part of everyday life. This activity is enjoyed by everyone from teenagers to the 65 years and older set.
Video games have become a major avenue of entertainment, having expanded to various genres including sports, sparring, and war simulation. These games are available to play in multiple platforms, be it mobile, PC or consoles. Yet despite these options, even in the US, the preferred method of play by 70% of gamers is through their mobile devices, meaning a high percentage of self-identified gamers favor mobile games.
3. Japan
Both the gaming and animation markets in Japan have matured internationally. At its peak, the Japanese market accounted for some 20% of the global gaming industry. While no longer as robust, Japan still has approximately 55.35 million gamers, and is the world’s third largest market share in the field of video games.
The Japanese gaming market may have been initially limited to arcade games, but after the release of Famicom, the first home video game console in the late 80s, Japan revolutionized the video game industry. They are still a pioneer in the console gaming industry today.
4. Germany
Germany’s gamer community is 48 million strong with a market where 50% of their population identify themselves as gamers.
The mobile gaming industry in Germany continues to grow, with a significant rise in popularity among the German gaming community since 2020. The population of mobile gamers who play on their smartphones and tablets is approximately 30 million people.
In terms of gaming genres preferred by German gamers, soccer, action-adventure, racing, and simulation are at the top.
5. Republic of Korea
The Republic of Korea has emerged as a driving force in the video game industry. A flourishing gaming market whose reach goes beyond Asia, Korean gaming communities are also internationally recognized in Esports, and rank #1 in the world when it comes to fighting game genres.
A mobile-first country, with the world’s fastest internet, mobile games have increasingly played a dominant role in the Korean game industry. Of note, 53% of all gamers play their games on their mobile phones at least once a month. As such, mobile gaming has a larger user pool than console gaming (19%) and PC gaming (37%.)
The proportion of female gamers in Korea is relatively high, at 43%. Demographically, the largest group to identify as a gamer is between the ages of 21-35. As a result, a considerable number of players prefer video games requiring teamwork as well as games displaying aesthetic graphic designs and eye-catching visual arts.
Powerhouses in the Video Game Market
As was mentioned, supra, China, Japan, and Korea are the 3 Asian countries on the list, with Germany and the USA rounding out the top five. Being on this list means the people in these Asian countries not only enjoy playing video games, but they have the purchasing power to match.
With a huge user base cutting across all ages, Asia has long been home to many players in the video game market as well as the hub for innovation and new trends. As the value of the mobile game market has skyrocketed over the past few years, with the number of smartphone users in Asia increasing, this shift in video game accessibility is changing the gaming environment in Asia, making it a market to closely watch going forward.
