Asia
Niko Partners 2022 Asia Video Game Industry Predictions
1. MENA-3 games market revenue will surpass $2 billion in 2022
Niko Partners initiated coverage on Saudi Arabia, the United Arab Emirates and Egypt for the first time in 2022. We call this region MENA-3 in our reports and expect combined games revenue across all platforms to surpass $2 billion this year. Growth will be driven by higher spending per user, additional government support across games and esports, and more gamers entering the market.
2. India will have over 400 million gamers in 2022
We predict India will surpass 400 million gamers this year, accounting for over ¼ of total gamers in Asia. We also believe that India, the fastest growing market in Asia, will be the next market to reach $1 billion. Niko Partners has often talked about how the ITV markets, referring to Indonesia, Thailand, and Vietnam, would be the next billion-dollar games markets. These three markets have surpassed $1 billion individually over the past two years.
3. Game approvals in China will restart in early 2022
China’s video game regulator has not approved any new titles since July 22, 2021. There were only 755 titles approved in 2021, compared to 1,411 in 2020. With the roll out of the national anti-addiction and real name identification system now complete, we expect approvals to restart in early 2022.
4. China’s regulatory approach will shift from reform to enforcement
China’s video game regulator introduced new policies in 2021, primarily aimed at curbing gaming addiction among minors. We expect the regulator to shift away from policy reform in 2022, as it looks to ensure compliance with current regulations. We are already starting to see a crackdown on companies that are curbing regulations and we have upgraded the risk of a Steam International ban in China to high.
5. Game companies in China will increase focus on exports
Chinese game companies have dominated their home market and found success overseas with mobile games. With increased investment in AAA game development, local indie studios and the ongoing regulatory risk at home, we expect Chinese game companies to start finding success on all platforms overseas in 2022 and beyond.
6. Esports will become more legitimate in 2022
In 2017 the International Olympic Committee recognized esports as a sport, in 2018 esports was a demonstration event at the Asian Games in Jakarta, Indonesia and in 2022 Esports will be a medal event at the Asian Games in Hangzhou, China. This will lead to more investment in esports player pipelines and player development. 2022 will enjoy an increase in esports training, education, subsidies aimed at esports management, player development.
7. Cross Platform and Cross Play will be a staple of new titles in 2022
The success of multi-platform titles such as Genshin Impact, the widespread adoption of scalable game engines such as Unreal Engine and Unity as well as the demand for interoperability between devices has led to players valuing cross platform experiences with cross play. We expect some of the largest game studios in China, South Korea, and Japan to introduce titles that run across PC, Console, Mobile and Cloud with cross play enabled.
8. 5G will be available across all 14 markets we cover in 2022
5G has been rolling out across numerous markets in Asia since South Korea launched 5G services in April 2019. This has led to increased download speeds, lower latency and helped enable cloud gaming on the go. Malaysia, Vietnam, India and Egypt are the four markets we cover that have yet to roll out 5G. We expect them to start their roll out by the end of the year.
9. M&A / Investments / IPOs will continue to play an important role
2021 was a record year for game related investments, especially in China where the number of transactions doubled compared to the prior year. Tencent alone invested in or acquired more than 100 game related companies last year. We expect M&A / Investments to continue playing a notable role in 2022 and beyond as the value of IP, development talent and new technologies become more important. While there may be a lower number of deals closed in 2022, we believe the overall value will continue to remain high.
10. Gaming companies will capitalize on the metaverse trend better than tech companies, but it’s still too early for the concept
Metaverse became a hot word in 2021 with numerous tech and gaming companies embracing the concept. Niko Partners believes that live service video games have been building towards the metaverse concept for several years and that companies with experience in both video game development and social media platform operation will have an advantage when entering this space. We expect game focused companies to see the initial benefits of the metaverse trend while tech first companies will struggle to offer value to users. However, we don’t expect to see a true metaverse experience in 2022 based on the currently accepted definitions.
11. The convergence of video games and the entertainment industry further engages gamers
The video game industry is building on the concepts of metaverse, pan-entertainment and transmedia which is leading to a convergence between games and entertainment. We expect to see more traditional brands, entertainment properties and artists take advantage of live service games in 2022. On the flip side, we expect to see more collaboration between video game IP holders and traditional entertainment such as movies, TV, and comics. This bi-directional approach will further engage gamers in the future.
12. Blockchain game adoption increases, but the space remains experimental
Blockchain based games made headlines in 2021 and VCs have invested billions in them. The past year has seen the rise of blockchain based non-fungible tokens (NFTs) in games and the exploration of the Play to Earn (P2E) model. We expect to see new innovative game projects in 2022 and increased adoption of blockchain games. However, the numerous barriers to entry, lack of regulation and questions around sustainability will keep the space experimental in 2022.
13. The local game development scene will grow in developing markets
Of the 14 markets we cover, Japan, South Korea, and China are considered game development powerhouses due to the hit titles released by domestic developers. The success of Vietnamese studio Sky Mavis (publisher of Axie Infinity) and a 2x increase in local game development studios in India since 2019 shows there is growing talent in these emerging markets. We expect to see the release of a hit game ($100m+ revenue) released by a studio from Southeast Asia or India in 2022.
14. The conversation regarding app store take rates will extend into 2022
The Epic v Apple case made headlines in 2021 and it indirectly led to Apple and Google reducing take rates for developers that earn less than $1m per year. In South Korea, a new bill required Apple and Google to offer alternative in app payment options. In China, TapTap made headlines for offering a 0% take rate and numerous developers have invested in direct distribution to avoid app store fees. As pressure continues to build, we expect platform holders to make further concessions in 2022.
15. Increasing government support towards local game development across SEA
In 2021, governments became increasingly supportive of the video game sector. Vietnam’s government took an active role in the creation of Vietnam Online Game Developers and Publishers Alliance (which will be formally established in 2022), Indonesia’s government showed support towards local game developers through fundings and infrastructure support, and Malaysia’s government continue to allocate specific national budget for gaming and esports. We anticipate more of this in 2022.
16. Korea and Japan to continue deregulation of the gaming and esports industry
Following Korea’s abolishment of the 10-year-old Shutdown Law and looking at Japan’s increasing interest in esports, we expect that both countries will continue to ease regulations or even move towards deregulation of certain laws or ordinances that hamper the growth of the gaming and esports industry. While an overhaul of the regulatory environment might not be feasible, small changes will be possible to occur in 2022.
Check our 2021 predictions accuracy here. All our predictions came true, except for #7 as a freeze on game approvals in China led to a lower number of import games being approved in 2021 vs 2020.
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Asia
IGT Showcases New Locally Attuned Link Games and Systems Innovations at G2E Asia 2024
International Game Technology announced that it will showcase an exciting portfolio of locally attuned gaming innovations for the Asia-Pacific market at G2E Asia 2024 at The Venetian Macao, June 4-6. The products within IGT’s G2E Asia 2024 portfolio are designed to enhance player entertainment, drive performance, and enable operators to diversify their gaming floors with research-backed solutions.
“It’s great to see G2E Asia return to The Venetian Macao in 2024. With Asia being a growth market for IGT, we are excited to connect with our customers and present a localized games and systems portfolio that can create new opportunities for IGT and our customers throughout the region,” said Dallas Orchard, IGT Senior Vice President and Chief Operating Officer, Gaming APAC.
“IGT’s G2E Asia 2024 portfolio is anchored in exciting new link and standalone games that build on the momentum of many of our highest performing titles in the region of the last year. G2E Asia 2024 will be the debut of Cash Cove Frenzy, an action-packed multi-level progressive based on one of IGT’s most popular titles in the region, and Jetsetter Gold Link, a new-to-Asia game that can help our customers diversify their gaming floors. We will also spotlight the many operator and player benefits of IGT ADVANTAGE, our highly scalable casino management system that has strong market penetration in Asia and beyond,” said Charles Seo, IGT Senior Director of Commercial Strategy, Asia.
G2E Asia 2024 attendees will have the opportunity to experience an array of IGT solutions in the Company stand A801.
The post IGT Showcases New Locally Attuned Link Games and Systems Innovations at G2E Asia 2024 appeared first on European Gaming Industry News.
Asia
From LatAm to Asia: Meet GR8 Tech at SiGMA Manila
GR8 Tech, an award-winning iGaming solutions provider, will exhibit at SiGMA Asia on June 3-5, marking a significant expansion into the region. Attendees can visit GR8 Tech at stand D806, where they will have the opportunity to explore the provider’s comprehensive ecosystem of solutions, featuring the flagship GR8 Sportsbook, the robust GR8 Casino, and innovative standalone products, including but not limited to CRM, Sportsbook iFrame, Feed, and Payment Gateway.
“SiGMA Asia provides us with a unique platform to connect directly with local operators and stakeholders, and we are excited to demonstrate how our technology can help them achieve greater profitability and efficiency,” said Evgen Belousov, CEO of GR8 Tech. “This is a milestone moment for GR8 Tech as we bring our advanced betting and casino solutions to one of the most dynamic gaming markets in the world.”
Additionally, GR8 Tech, in collaboration with BETER, will host an exclusive invite-only party on June 3. This event is a perfect opportunity for valued clients and partners to relax and network in a festive setting, celebrating our continued partnerships and future successes.
Meet GR8 Tech at SiGMA Asia: Unlock the New Horizons
High-Performance Products and Interactive Demonstrations
The technological prowess of GR8 Tech’s diverse product suite will be on full display at SiGMA Asia. The attendees will be able to take a closer look at the comprehensive GR8 Sportsbook and Casino platform and vital standalone products like CRM, Sportsbook iFrame, Feed, Payment Gateway, etc., on demo screens at the stand. Each solution and product seamlessly adapts to address the specific needs of the Asian market, ensuring that all functionalities – from handling high betting volumes to integrating seamlessly with various payment systems – are tailored to enhance user experience and operator profitability.
Particularly, the provider’s flagship GR8 Sportsbook, known for its high stability and performance, offers a wide selection of content that caters to the diverse preferences of players across Asian countries. It also features unique margin management capabilities designed to maintain competitiveness and profitability in the region’s aggressively low-margin environment.
“GR8 Sportsbook is engineered to meet the specific needs of the Asian market, from its mobile-first design to its ability to handle high betting volumes without compromising user experience,” added Oleksandr Feshchenko, CRO at GR8 Tech. “We are proud to showcase how our platform can transform sports betting operations.”
Connect with GR8 Tech
To ensure a personalized experience, GR8 Tech invites interested parties to book a meeting with their team, taking advantage of an excellent opportunity to discuss how GR8 Tech’s solutions can elevate business success in the region.
The post From LatAm to Asia: Meet GR8 Tech at SiGMA Manila appeared first on European Gaming Industry News.
Asia
Wazdan secures Philippines market entry with SG8 partnership
Wazdan, the gain-focused developer behind some of the world’s most rewarding casino gaming experiences, has entered the Filipino market after signing with SG8, a leading operator in the country.
A total of 46 Wazdan games will be made available to SG8 players and those across the Philippines for the very first time, including favourites 9 Burning Dragons, 9 Burning Stars™ and a host of the 9 Coins™ series such as 9 Coins™ Extremely Light, 9 Coins™ 1000 Edition and 9 Coins™ Grand Platinum Edition.
A renowned operator in the Philippines since 2006, SG8 is PAGCOR licensed and has quickly emerged as a player-favourite within Southeast Asia due to its diverse slot, live dealer and sportsbook offering, set to be enriched by Wazdan’s innovative iGaming content.
The Philippines marks the latest market entry for Wazdan, further establishing its presence across Asia following the landmark deal. More partnerships in the country are expected to be announced in due course.
Radka Bacheva, Head of Sales at Wazdan, said: “The Philippines boasts an incredible amount of iGaming potential and so we are delighted to enter the market with SG8, a leading player within the country.
“We’re bringing a range of our top-performing titles to its platforms and are eager to see how Filipino players react to our innovative mechanics. We are in no doubt this is the beginning of a flourishing collaboration.”
Heng Chin Sheng, CEO at SG8, said: “It’s an honour to welcome Wazdan to the Filipino market for the first time as part of this deal – we’ve seen the reception to its innovative slots across the world and are delighted to bring them to our players.”
“Leading titles such as 9 Burning Dragons and 9 Burning Stars™ are just a few of the 46 Wazdan titles that we are sure our players will embrace, and we look forward to seeing the results!”
The post Wazdan secures Philippines market entry with SG8 partnership appeared first on European Gaming Industry News.
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