Asian Gaming Market: Tourism Benefitting From the Esports Market

1
Booming Asian gaming market
2
Asia Gaming Market - Overview

• Stay-at-home directives during lockdowns pushed
  the popularity of video games across the world,
  leading to higher revenues for gaming companies.
  Among the fastest-growing gaming region, the Asia
  gaming market is estimated to have reached 82 bn
  in 2022, or 55 of the global games markets, as
  per Niko Partners, a research firm with a focus
  on video games markets and consumers in Asia.
• Asia is home to about 1.5 billion gamers, with
  China, Japan and South Korea dominating the
  space. Elsewhere in Southeast Asia, mobile gaming
  is an up-and-coming source of revenue for game
  publishers.

3
Asia Gaming Market - Overview

• The six major countries of Southeast Asia
  Indonesia, Malaysia, P3hilippines, Singapore,
  Thailand and Vietnam represent 6 of Asias
  gaming revenues. India, Indonesia, Thailand and
  Vietnam are the fastest-growing gaming markets.
• Game developers, publishers and other
  stakeholders have a big opportunity in the Asia
  gaming sector as demand rises along with rising
  disposable income and improvements to
  infrastructure.

4
Chinas Share in Asias Gaming Market

• China is the worlds largest online gaming market
  and has overtaken the US. Invesco says that game
  revenue in China accounts for 0.43 of total
  disposable income, in Korea, its 0.45, while
  the USA only accounts for 0.26 of disposable
  income.
• A staggering amount is spent on the mobile
  gaming market in China. It is currently worth
  35bn, while the global market is valued at
  102bn, says Corinna Lau, Client Portfolio
  Director at Invesco. Smartphones have provided
  easy access to gaming and Asia including Japan,
  accounts for 55 of global mobile gaming revenue.
  In the video gaming market, Asia accounts for 30
  of the value worldwide.

5
Chinas Share in Asias Gaming Market

• Chinas top gaming companies are Tencent
  (0700.HK) and NetEase (9999.HK). Tencent, known
  for games like PUBG Mobile, Brawl Stars and Clash
  of Clans, reported the full year 2021 games
  revenue of 32.94 bn, a 9.9 jump over the
  previous year. The gaming business accounted for
  nearly 26 of Tencents total revenue in 2021,
  and the company intends to grow this share to 50
  in the coming years.
• The biggest gaming company in the world by
  revenue, Tencent is acquiring an interest in
  gaming firms around the world and has already
  invested in over 800 companies. Tencent has a 40
  stake in Epic Games.

6
Chinas Share in Asias Gaming Market

• NetEase is the second biggest Chinese gaming
  company, and reported a profit of 7.3 bn, up
  21.6, for FY2021. Over 70 of the companys
  revenues came from mobile games. Some of the
  popular games owned by NetEase are Cyber Hunter,
  LifeAfter and Marvel Super War, among others.
• Sales of Chinese gaming companies have been hit
  2022 after China froze the issuance of domestic
  video game licenses. However, the rules were
  eased this year in September and game developers
  in the country are now slowly getting licenses.

7
Other Gaming Giants

• Sony Interactive Entertainment, the gaming
  division of Sony Group Corp (6758.T), is known
  worldwide for its PlayStation gaming consoles
• Revenues of Sonys gaming business were up 12
  during the quarter that ended September 2022, but
  the company is expecting a 12 drop in sales of
  third-party games for the full year ending March
  2023.

8
Other Asian Gaming Giants

• Earlier this year, Sony acquired Destiny and
  Halo creator studio Bungie in a deal valued at
  3.6 bn. The company also acquired Finnish studio
  Housemarque and US-based Bluepoint Games.
• Nintendo (7974.T) is another Japanese video game
  company that develops games and makes video game
  consoles. The Wii console targets a wider
  audience for interactive and fun-focused games,
  unlike Microsofts Xbox and Sonys Playstation
  which caters only to serious gamers.

9
Other Asian Gaming Giants

• Singapore-based Sea Ltd (Garena) is among the top
  holdings in Southeast Asian technology funds but
  has seen its gaming business dwindle.
• In South Korea, NCSoft Corp (036570.KS), Krafton
  (25990.KS) and Netmarble (251270.KS) are the top
  gaming companies. Netmarble is a leader in the
  mobile gaming sector and has published popular
  games such as Marvel Future Fight, The Seven
  Deadly Sins and Seven Knights.

10
Read more at
www.AsiaFundManagers.com
Find us on Social!