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Global Digital Gaming Market (2018 - 2023) (1)

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Title: Global Digital Gaming Market (2018 - 2023) (1)


1
Global Digital Gaming Market2018 - 2023
  • March 2019

2
Table of Contents
  • Chapter 2
  • Introduction
  • 2.1. Market Definitions
  • 2.2. Different business models
  • 2.3. Distribution channel analysis Big four
    companies
  • Chapter 3
  • Global Digital Gaming Market Overview
  • 3.1. Market overview
  • Global market revenue (USD Bn)
  • Global projected market revenue (USD Bn)
  • Geography-wise market revenue (USD Bn)
  • 3.2.Global trends
  • Chapter 1
  • Executive Summary
  • 1.1. Market scope and segmentation
  • 1.2. Key questions answered in this study
  • 1.3. Executive summary

3
Table of Contents
  • Chapter 4
  • Global Digital Gaming Market Based on Region
  • 4.1. North America
  • Overview
  • Drivers
  • Challenges
  • Trends
  • 4.2. Asia-Pacific
  • Overview
  • Drivers
  • Challenges
  • Trends
  • Chapter 4 (Cont.)
  • Global Digital Gaming Market Based on Region
  • 4.3. Latin America
  • Overview
  • Drivers
  • Challenges
  • Trends
  • 4.4. Europe Middle East and Africa (EMEA)
  • Overview
  • Drivers
  • Challenges
  • Trends
  • Chapter 5
  • Global Digital Gaming Market Based on Platform
  • 5.1. Global digital gaming market overview
    Based on platform
  • 5.2. Global mobile games market
  • Drivers
  • Challenges
  • 5.3. Global console games market
  • Drivers
  • Challenges
  • 5.4. Global PC games market
  • Drivers
  • Challenges

4
Table of Contents
  • Chapter 6
  • Major Platforms Overview By Region
  • 6.1. Major platforms North America
  • Revenue contribution
  • Key highlights
  • 6.2. Major platforms Asia-Pacific
  • Revenue contribution
  • Key highlights
  • 6.3. Major platforms Latin America
  • Revenue contribution
  • Key highlights
  • 6.4. Major platforms EMEA
  • Revenue contribution
  • Key highlights
  • Chapter 7
  • Huge Opportunity Zones
  • 7.1. eSports
  • 7.2.Blockchain gaming
  • 7.3.Cloud gaming
  • 7.4.Virtual reality, augmented reality, and mixed
    reality
  • Chapter 8
  • Competitive Landscape
  • 9.1. Activision Blizzard
  • Company snapshot
  • Key numbers
  • Major game titles
  • Initiatives
  • Growth strategy
  • 9.2. Electronic Arts
  • Company snapshot
  • Key numbers
  • Major game titles
  • Initiatives
  • Growth strategy

5
Table of Contents
  • Chapter 8
  • Competitive Landscape
  • 9.3. Take-Two Interactive
  • Company snapshot
  • Key numbers
  • Major game titles
  • Initiatives
  • Growth strategy
  • 9.4. Ubisoft
  • Company snapshot
  • Key numbers
  • Major game titles
  • Initiatives
  • Growth strategy
  • Competitive Landscape
  • 9.5. Zynga
  • Company snapshot
  • Key numbers
  • Major game titles
  • Initiatives
  • Growth strategy
  • 9.6. Tencent
  • Company snapshot
  • Key numbers
  • Major game titles
  • Initiatives
  • Growth strategy
  • Competitive Landscape
  • 9.7. GungHo Online
  • Company snapshot
  • Key numbers
  • Major game titles
  • Initiatives
  • Growth strategy
  • 9.8. Nintendo
  • Company snapshot
  • Key numbers
  • Major game titles
  • Initiatives
  • Growth strategy

6
Table of Contents
  • Competitive Landscape
  • 9.9. Sony Corporation
  • Company snapshot
  • Key numbers
  • Major game titles
  • Initiatives
  • Growth strategy
  • 9.10. Microsoft Corporation
  • Company snapshot
  • Key numbers
  • Major game titles
  • Initiatives
  • Growth strategy
  • Major Players Foraying into the Gaming Market
  • Google
  • Facebook
  • Amazon
  • Chapter 9
  • Gaming Start-ups and Disruptors
  • 10.1. Chopup
  • 10.2. Omnidrone
  • 10.3. Piranha Games
  • 10.4. Nazara Technologies
  • 10.5. Witching Hour Studios
  • 10.6. Touchten Games
  • 10.7. Steel Wool Studios
  • 10.8. Playsnak
  • 10.9. Flying Mollusk
  • 10.10. Lucid Sight
  • 10.11. Ironhide Game Studio
  • 10.12. NGD Studios

7
Table of Contents
  • Gaming Start-ups and Disruptors
  • 10.1. Chopup
  • 10.2. Omnidrone
  • 10.3. Piranha Games
  • 10.4. Nazara Technologies
  • 10.5. Witching Hour Studios
  • 10.6. Touchten Games
  • 10.7. Steel Wool Studios
  • 10.8. Playsnak
  • 10.9. Flying Mollusk
  • 10.10. Lucid Sight
  • 10.11. Ironhide Game Studio
  • 10.12. NGD Studios
  • 10.13. Google and Facebook
  • Chapter 10
  • Conclusion
  • 10.1.Conclusion
  • Chapter 11
  • Appendix
  • 11.1. List of tables
  • 11.2. Research methodology
  • 11.3. Assumptions
  • 11.4. About Research On Global Markets

8
Executive Summary I
  • Global Digital Gaming Market

Global Digital Gaming Market Revenue (USD Bn)
  • Overview
  • The global digital gaming market is one of the
    most thriving sectors in the global media and
    entertainment industry.
  • The market is forecast to experience significant
    expansion, at a CAGR of XX, and will reach USD
    XX Bn by 2023
  • The mobile gaming segment is the largest, having
    generated USD XX Bn in 2017, followed by console
    and PC games
  • The overall market trend shows a shift from brick
    and mortar stores towards more digital purchases
  • Drivers
  • Technological advancements and shift of network
    from 2G to 4G will lead to an increase in
    digitally-downloadable games, and other live
    games of the MMO and eSports genres
  • The increasing prominence of cross-platform games
    and 3D games is boosting the global digital
    gaming market
  • The number of smartphone users are expanding at a
    significant rate, which in turn is boosting the
    mobile gaming market globally
  • The proliferation of smartphones and tablet PCs
    is giving a considerable thrust to the global
    gaming market
  • Trends
  • Game development companies are increasingly
    considering digital distribution as the preferred
    distribution channel as compared to physical
    distribution channels
  • Digital distribution allows gamers to purchase
    and download digital content for different gaming
    platforms
  • Increasing adoption of eSports, especially in the
    Asia-Pacific region, has bolstered growth of the
    gaming industry
  • Currently, eSports is one of the areas in which
    gaming companies are willing to make significant
    investments, since the eSports markets revenue
    increased by more than four times between 2013
    and 2016, and could almost triple by 2021
  • Challenges
  • The investment crunch is one of the factors
    posing a challenge to the mobile gaming industry
  • In the absence of funds, mobile gaming-based
    start-ups have limited access to infrastructure
    and talent
  • The biggest problem that the gaming industry
    faces is the need for creation of new content to
    keep existing audiences engaged
  • Securing users constantly is essential for gaming
    companies to ensure that their earnings do not
    dip
  • Gaming experts say that the industry has reached
    a position where almost all possible genres and
    methods of gameplay have been explored

Source Netscribes Analysis
9
Executive Summary II
  • Segmentation Based on Region
  • The digital gaming market is segmented based on
    region North America, Asia-Pacific, Latin
    America, Europe, the Middle East and Africa
  • APAC is forecast to contribute XX of the total
    revenue of the digital gaming market in 2023
  • APAC is expected to witness the highest growth
    rate through the forecast period of 2018-2023
  • Most of APACs growth is to come from China, a
    region where mobile gaming is becoming
    increasingly popular
  • Mobile gaming is the dominant form of gaming in
    the Latin American region
  • The mature market of North America is expected to
    see console games as the largest segment
  • Segmentation Based on Platform
  • The digital gaming market is further segmented
    based on platforms PCs, mobiles, and consoles
  • The mobile gaming segment was the largest, with a
    market share of XX in 2017, and will be
    expanding at the highest CAGR of 23.1
    (2018-2023) among the three
  • The market is driven by revenue from
    advertisements, affordability of mobile phones in
    emerging markets, proliferation of the Internet,
    and low entry barrier costs in gaming
  • The console gaming segment is expected to be the
    second-largest one in the gaming market
  • It will be driven by the launch of
    next-generation consoles and expanded digital
    purchases
  • Research On Global Markets analysis predicts a
    considerable shift from PC gaming, to mobile and
    console gaming
  • The market share of PC gaming has witnessed a
    fall over the years as the market is restrained
    by factors like piracy, high cost of gaming PCs,
    etc.
  • Competitive Landscape
  • In the competitive landscape, ten major gaming
    companies have been profiled
  • Activision Blizzard
  • Electronic Arts
  • Take Two Interactive
  • Ubisoft
  • Zynga
  • Tencent
  • Nintendo
  • GungHo Online
  • Sony Corporation
  • Microsoft Corporation
  • The prominent trends among the top companies are
    adoption of eSports, Virtual Reality (VR), and
    digital distribution of games
  • The growth strategies of the companies include
    organic expansion to develop older games and
    improve their relationship with customers
  • Also, inorganic expansion by way of acquisitions
    help companies venture into segments like mobile
    games, and technologies like AR, VR, etc.
  • A snapshot of eight new-age gaming start-ups -
    Chopup, Omnidrone, Piranha Games, Nazara
    Technologies, Witching Hour Studios, Touchten
    Games, Steel Wool Studios and Playsnak, Flying
    Mollusk, Lucid Sight, Ironhide Game Studio, and
    NGD Studios - is given, along with their funding
    information, initiatives, and recently-released
    games

10
Global Market Trends
  • Digital Distribution
  • Delivering games digitally, instead of
    distributing the same via retail/physical
    channels, is the most prominent trend now
  • In digital distribution, the barriers to entry
    are significantly low
  • Big gaming companies have created their own
    platforms for digital distribution,
    likes Steam, Origin, and Xbox Live Marketplace,
    using which, gamers purchase and download digital
    content for different gaming platforms
  • Change in Gaming Devices
  • Another key trend in the industry is the
    evolution of gaming devices
  • Mobile games are quickly gaining popularity,
    since more gamers are turning to their
    smartphones and tablets for entertainment,
    thereby facilitating digital distribution
  • Entry barriers in the mobile gaming industry are
    lower than other platforms
  • As a result, major companies are investing in
    mobile games. In 2016, Activision Blizzard
    completed the acquisition of King Digital
    Entertainment to expand on its opportunities in
    mobile gaming
  • Use of Communication Software and Virtual
    Credits
  • Games are now being equipped with messaging and
    video applications to allow smooth communication
    in between games, across players
  • Developers are currently focusing on monetizing
    content, by enabling virtual credit systems for
    the sale of downloadable digital content within
    games, or 'in-game purchases' like buying new
    avatars, and purchase of extra levels, among
    others

11
Global Market Trends
  • Adoption of eSports
  • eSports is a form of competitive video gaming
    where players compete with each other in an
    online or live environment for a large number of
    viewers
  • The most common genres of video game associated
    with eSports are real-time strategy, combat, first
    -person shooter (FPS), and multiplayer online
    battle arena (MOBA)
  • Currently, eSports is one of the major areas that
    gaming companies are willing to invest in, since
    revenue from this market grew by more than four
    times between 2013 and 2016, and might almost
    triple by 2021
  • Adoption of AR and VR Technologies
  • AR and VR are new but essential trends in the
    gaming industry, and it is actively being made
    available to customers at affordable prices
  • VR is more about having a great gaming
    experience rather than just playing a game
  • This leaves room for speculation with regard to
    how successfully VR will be able to convert hours
    of dedicated game-playing into a more immersive
    gaming experiences
  • On the other hand, AR technology is easily
    implementable, and its success is visible from
    the popularity of Pokémon Go and Night Terrors
  • Women and Non-Millennial Gamers
  • There has been an enormous rise in the number of
    female gamers. Since 2010, female gamers have
    made up around half of all global gamers 
  • In the U.S. - a leading gaming region - the
    average age of gamers is 37
  • Also, 31 of the video game-playing population
    comprises adult women, while only 18 of the
    gaming population are boys of ages below 18

12
Distribution Channel Analysis
Distribution Channel Analysis Four Major
Companies
  • With the dawn of the broadband Internet era, the
    landscape of game distribution channels has
    changed over the years
  • Major gaming companies like EA, Take-Two,
    Activision Blizzard and Ubisoft are increasingly
    shifting towards the digital distribution
    channels, from the retail distribution channels
  • Clearly, digital distribution is a common growth
    strategy for top players
  • It allows companies to make their products
    available to consumers at minimal costs, thereby,
    drastically lowering the total cost of developing
    video games
  • Video game producers are focusing more on story
    and content development, without worrying about
    incurring massive costs on distribution channel
    intermediaries
  • Gaming companies are also launching titles which
    were previously available only on PCs and gaming
    consoles
  • Games such as FIFA, Madden NFL, The Sims,
    SimCity, and Star Wars are available across
    mobile platforms and even as free, downloadable
    versions for PCs
  • In addition to developers and publishers, digital
    distribution benefits consumers by enabling them
    to buy/play the games online without having to
    purchase it through any retailer (online/BM)
  • They can download games directly through websites
    like Steam, Origin, and others
  • Revenue from the retail distribution of games for
    the four major companies has declined, and
    digital distribution channels have gained
    prominence. In 2015, revenue from both channels
    of distribution were almost equal, while in 2017,
    it became clear that the future of the market was
    in games downloaded over the Internet, and not so
    much in games bought via retailers

Source Annual reports of the stated companies
13
Global Digital Gaming Overview By Platforms
Market share of various platforms (2015, 2018,
and 2023)
  • Mobile
  • Mobile games was the largest segment of the 2018
    global digital gaming market, accounting for XX
    of the revenue
  • This segment is expected to expand at a CAGR of
    XX during the 2018-2023 period, and is the
    fastest-growing segment, globally
  • By 2023, the mobile gaming segment is forecasted
    to hold on to largest market share
  • Console
  • Console games came after the mobile gaming
    segment, with a revenue share of XX in 2018,
    generating USD XX Bn
  • By 2023, revenue from the console gaming market
    is forecast to reach USD XX Bn
  • PC
  • The PC games segment is next, but is expected to
    experience a negative growth rate during the
    forecast period (CAGR of XX)
  • Research On Global Markets analysis says that PC
    gaming is likely to become the least preferable
    form of gaming in the years to come. The market
    revenue from PC gaming is forecast to come down
    to USD XX Bn

2015
2018
2023
Source Netscribes Analysis
14
Global Console Games Market Overview
Console games - global revenue (USD Bn)
  • The first generation of console games were
    introduced in the 1970s and had several hardware
    shortcomings like lack of an audio port, etc.
  • Consoles have come a long way since then and have
    become much more than a simple gaming device.
  • High-end devices like Xbox, PlayStations, and Wii
    Switch have 3D graphics, Internet connectivity,
    online playing options, and movie-watching
    features.
  • Despite high purchase costs, and increasing
    competition from the mobiles segment, launch of
    next-generation consoles and expanded digital
    purchases on the same will drive the market
    forward.

Source Netscribes Analysis
15
Global Console Games Market Overview
  • Drivers
  • Launch of new generation console
  • The global console market is influenced
    significantly by the launch of next-generation
    gaming consoles
  • The major vendors in this segment are Sony,
    Microsoft, and Nintendo. The last generation of
    consoles were released in 2013, and since then,
    the global console games market has seen a
    decline, since the market has reached its
    saturation point
  • Gamers want upgrades in console technologies, and
    they look for enhanced audio-visual experiences
    while gaming through consoles
  • Thus, the launch of next generation consoles will
    propel the market
  • Increase in micro transactions/digital purchases
    on consoles
  • Mirroring the global gaming market trends,
    increased digital purchases on consoles will
    drive the growth of console games
  • Advanced technology and features
  • Use of advanced technology in consoles acts as a
    significant driver for console games
  • New consoles come with better RAM, processing
    units, motion sensors, and Internet connectivity
  • Live video streaming via Netflix, YouTube, etc.,
    watching DVDs/ Blu-rays, online game playing,
    browsing the Internet, among others, make these
    the preferred consoles, as opposed to traditional
    ones
  • Challenges
  • Competition from mobile and social gaming
  • People are shifting to mobile gaming for its ease
    of access and affordable pricing. Since 2007,
    mobile apps have become more popular
  • Meanwhile, serious gamers are shifting to
    PC-based games. All these put together, have
    resulted in the contraction of the market size
    for console games
  • High cost
  • High initial investment on consoles (which has no
    alternative use apart from gaming/ browsing)
    creates a problem with regard to penetration in
    developing economies like that of APAC, where
    disposable income is less in comparison to
    developed regions like North America and Europe
  • Since gaming/ browsing can be done using
    PCs/mobile devices, consumers do not usually
    invest in a dedicated gaming device like a
    console
  • Inability to adopt eSports
  • eSports is an emerging trend in the gaming
    industry. Compared to PC gaming, consoles have
    limited penetration in the eSports market
  • Console games have a small share in popular
    eSports genres like fighting and sports, and in
    that little share, the emphasis is more on
    one-on-one gaming instead of MMO. This acts as a
    significant deterrent for the growth of eSports
    on consoles

16
Major Platforms Overview North America
Revenue contribution based on platforms (North
America)
  • Key highlights major platforms (North America)
  • In North America, even though mobile gaming is
    becoming increasingly popular, consoles are still
    the biggest segment
  • During 2018-2023, the console gaming segment is
    expected to expand at a CAGR of XX
  • Due to higher purchasing power of the people (the
    average U.S. consumer spends over USD 2,000
    annually on entertainment and media), compared to
    developing regions like MEA or APAC (consumers in
    Nigeria and India spend less than USD 50 annually
    on entertainment and media), people here have
    higher interest in investing in console games
  • Also, the last generation of consoles was
    introduced in 2013. In 2018, console games
    contributed a major share of around XX to the
    gaming industry in the North American region.
    Thus, when the next generation of consoles come
    around in 2018-19, the demand for these games is
    sure to soar again
  • Unlike APAC and MEA, where mobile games is the
    dominating segment, it is the second largest
    segment in North America, after consoles
  • Gamers in North America are willing to spend more
    money on mobile games, compared to their Asia
    Pacific counterparts, as the American
    install-to-purchase (engagement and purchase
    rate) engagement on mobiles games is almost XX
    higher than in APAC
  • North Americas PC gaming revenue is expected to
    expand at a stable CAGR of XX through 2018-2023
  • Steam, which is one of the most significant
    digital PC games portals, sells most of its games
    in North America, followed by Europe and Asia.
    League of Legends, Hearthstone Heroes of
    Warcraft, Minecraft, and Overwatch are PC games
    that people play the most in the U.S.

2018 USD XX Bn
2023 USD XX Bn
Source Netscribes Analysis
17
Opportunity Areas Overview
  • Gaming has moved forward from the conventional 2D
    Arcade and TV video games, to advanced forms
  • Gaming companies are foraying into the domains of
    eSports, Blockchain gaming, cloud gaming, and VR
    and AR in gaming
  • A growing global audience and a top-tier talent
    pool is pushing gaming companies to make
    investments in these gaming domains.

eSports is drawing large audiences in recent
times, which in turn has opened up a plethora of
opportunities for media, gaming, and
entertainment companies
Blockchain gaming addresses all the problems that
the gaming industry has been facing for years
Cloud gaming enables gamers to play high-end
games on low-end machines
Players are more involved in VR-based gaming, as
it has the potential to create social experiences
1
2
3
4
18
Virtual Reality, Augmented Reality, and Mixed
Reality
  • Overview
  • VR had been thought to possess great potential as
    it could create social experiences while gaming
  • Players would be more involved in a VR based
    gaming. VR gaming makes players feel as if they
    belong to a scene rather than demonstrating
    things. The simulation in VR gaming allows
    players to see things from different angles and
    perspectives
  • After cross analyzation of eSports engagement and
    VR buying intention, it was found that there was
    a strong correlation between them - near about
    63 of all VR buyers were into eSports
  • Mark Liu, the chief executive of the worlds
    largest chipmaker, Taiwan Semiconductor
    Manufacturing, has said that there is great
    demand from game console processors and gaming
    graphics processing units for VR applications. He
    also said that in the coming years, VR will be
    embedded in peoples daily lives, thus changing
    the way people communicate and interact, and
    would increase productivity as well
  • The concept of mixed reality in gaming is also on
    the rise. Mixed reality games enable gamers to
    experience the real world with virtual objects.
    The increasing adoption of wearable devices by
    gamers is creating avenues for further
    developments in this domain
  • Also, an increase in the demand for connected
    devices, together with advancements in processing
    technology and sensors, are driving the AR, VR,
    and mixed reality market
  • Niantic came up with the worlds first
    edge-enhanced mixed reality multiplayer
    experience with its Codename Neon. It boasts of
    a fully multi-tenant control plane that supports
    zero-touch provisioning of edge cloud resources
    as close to the players as possible
  • Major Challenge Pace of Adoption
  • VR seems to be stuck in its early-adopter phase,
    with only the deeply-pocketed and most committed
    users getting involved. The main factor blocking
    the mainstream adoption of VR games seems to be
    the dearth of compelling content
  • The only good triple-A titles compatible with
    PSVR are Resident Evil and Gran Turismo Sport
  • The key takeaways from the annual survey
    conducted by the Game Developers Conference
    stated that there is a declining interest in VR.
    It is a bit of a whiplash to the VR industry as a
    whole
  • The vastly exciting technology, which was thought
    it would break through and dominate everything
    back in 2015 and 2016, could not garner much
    attention. In 2017, it witnessed a slow rate of
    adoption among consumers, which amounted to a big
    reality check for VR gaming
  • Industry experts state that it is the interest in
    VR that is dwindling. The number of developers
    working on AR games is in a steady state, and
    those who are already there in the business of
    creating VR games do not expect it to be a
    long-lasting market
  • The CEO of the studio CCP Games, Hilmar Veigar
    Petursson, said that their company does not see
    much of a future for VR gaming. They expected VR
    to be two to three times as big as it was. Hilmar
    said that their data showed that VR-based gaming
    adoption was slow even among enthusiasts. With
    hardware that is difficult to set up, absurd PC
    requirements, and nearly no AAA titles to attract
    the curious into the world of VR, it is
    increasingly unlikely that the gaming industry
    will see a significant shift to VR any time soon

19
Virtual Reality, Augmented Reality, and Mixed
Reality Regional Insights
Europe
North America
  • Research conducted by a global leader in games
    and esports analytics at the end of the year 2016
    on the European and North American countries,
    stated that 11 of the online population across
    the countries in Europe (aged 10-65) intended to
    buy a Virtual Reality (VR) product in the next
    six months
  • The research claimed that the buying intention
    would be highest in Spain and Italy with
    consumers in Belgium and the Netherlands staying
    most skeptical about the new technology
  • It was also observed that 7 of this group, or
    about 4 million people, were non-gamers. This
    was proof that VR technologys reach was already
    extending beyond gaming
  • In the U.S., the intent to buy is a bit higher
    than that of the European aggregate, with 12 of
    the online population planning to buy a VR
    product in the coming six months

LATAM
  • Latin Americas new video game federation has
    developers from eleven countries working together
    to give a boost to the gaming market in the
    region
  • The Argentinian studio, OKAM, formed in 2010,
    came up with its first virtual reality title Ship
    Ahoy!, a multiplayer nautical battler for HTC
    Vive and Oculus Rift, on January 10, 2018
  • The stakes for VR gaming is high in this region
    with developers finally planning on making their
    moves.

Asia-Pacific (APAC)
  • According to the report by a global leader in
    games and eSports analytics, spending on
    augmented reality (AR) and VR will be humongous
    for the Asia-Pacific region
  • The availability of new VR headsets such as
    Mirage Solo from Lenovo and Oculus Go from
    Facebook are expected to drive the adoption, as
    well as content spending in 2018, and beyond
  • These headsets eliminate the need for pairing
    with consoles or PCs, which used to drive the
    costs higher for VR/AR experiences
  • The launch of the AR SDK platforms from both
    Apple and Google are also expected to drive
    spending on application developments and games
    for mobile platforms
  • In 2018, VR games had the highest market share
    out of all the applications of VR

20
Company Overview Tencent
  • Year of establishment 1998
  • Headquarters Shenzhen, China
  • Key people Ma Huateng (Chairman)
  • Employee strength (2017) 44,796
  • Industry Video games
  • Ticker HKG 0700
  • Website www.tencent.com
  • Major game titles
  • PUBG
  • Arena of Valor
  • Honour of Kings
  • Ring of Elysium
  • Wangzhe Rongyao
  • Growth strategy
  • Tencent Games plans to capture at least a third
    of Indias gaming user base in two years by
    making a humongous investment of USD 200 Mn
  • The company presented its new platform, Games
    Without Borders (GWB), built by the Tencent
    Institute of Games, to gather innovative ideas
    from game developers around the world. Through
    this platform, Tencent aims to foster, promote,
    and protect outstanding games
  • Tencent introduced 26 new games in 2018. The
    company is focusing on its gaming business to
    drive growth
  • Major locations
  • Asia, primarily Hong Kong and China
  • North America
  • Europe
  • Key numbers (2017)
  • Net revenue (FY ending Dec. 2017) USD 35.6 Bn
  • Net revenue (until June 2018) USD 11.1 Bn
  • Net margin () 33
  • Gross margin () 49.2
  • RoA () 15.1
  • RoE () 33.2
  • Major initiatives
  • In 2018, Tencent invested USD 474 Mn in Shanda
    Games. This move will bolster Tencents lead in
    the local video gaming market
  • In 2018, the company folded yet another video
    gaming company into its empire. Square Enix
    signed a letter of intent to enter into a
    strategic alliance with Tencent
  • Tencent, which partners with Epic Games to sell
    in China, announced a new set of rules for
    streaming games in the country in February 2019
  • In May 2018, Tencent signed an MoU with Britain
    to work closely with its cultural industries,
    thereby deepening the co-operation between China
    and Britain and setting the stage for Tencents
    further international expansion
  • Recent initiatives
  • In November 2018, Tencent Games announced a
    collaboration with a Blockchain eSports platform
    named SLIVER.tv to create a live eSports channel
    that would feature streamers from Method, FaZe
    Clan, and NRG. The channel would be powered by
    Theta rewards, and the users would be able to buy
    in-game upgrades and items using the Theta tokens

21
Major Companies Foraying into the Gaming Market
  • Google plans to unveil a new gaming hardware at
    the Game Developers Conference in 2019. The
    service will enable gamers to stream
    console-quality games on a cheaper device
  • The company is likely to offer a Netflix for
    games subscription service. The three-month demo
    of Project Stream, which came to an end in
    January 2019, enabled users to play Assassins
    Creed Odyssey on their Google Chrome browsers on
    Mac, Windows, Linux, and Chrome
  • However, it is believed that Project Stream was
    just part of Googles broader gaming efforts,
    Project Yeti
  • The plan for Project Yeti is to run
    high-performance titles, on its own machines, and
    then stream them to the devices owned by the
    gamers
  • It has been said that Google had been beta
    testing the full Project Yeti streaming service
    internally. Reports say that the service will
    also include an in-game chat function
  • The Project Yeti console, which is likely to be a
    streaming-only device, is presumed to be cheaper
    than dedicated gaming consoles, such as Xbox One
    and PlayStation
  • Facebook had released its first batch of Instant
    Games back in 2016 in a closed beta version.
    These games could be easily played without the
    need for any additional downloads from the app
    store
  • Recently, the company revealed that the daily
    monthly active players had increased by more than
    three times in 2018, and that there were over
    6,000 games with over 20 Bn game sessions being
    played
  • Facebook reported that it had experienced rapid
    growth since March 2018, after the company opened
    up the platform to all the developers
  • The company is aggressively expanding its gaming
    system in multiple directions. Recently, it added
    Play buttons, which directly link to Instant
    Games, to more than 270,000 gaming groups that
    serve over 90 Mn active users
  • Amazon, which operates the largest video game
    streaming service in the world with its Twitch,
    is getting serious about video games
  • The company wants to take the video game
    publishing industry to the cloud completely
  • News reports say that Amazon is working on
    building a Netflix-like service for gaming. The
    new service from Amazon is likely to allow
    players to stream games without having to
    download the individual titles

22
Start-up Overview Disruptor
  • Overview
  • Description Flying Mollusk is a small
    independent studio which aims to create
    entertaining and impactful games by making use of
    emerging technologies
  • Founded in - 2013
  • Headquarters Los Angeles, California
  • Website - www.flyingmollusk.com
  • Industry - PC gaming
  • Key Initiatives
  • Flying Mollusks psychological thriller,
    Nevermind, makes use of Affectivas emotion
    recognition software to sense a gamers facial
    expressions to detect signs of emotional
    distress. Neverminds use of biofeedback makes
    the game more challenging and surreal
  • Overview
  • Description Lucid Sight primarily focuses on
    frontier gaming and its supporting technologies.
    Their games are secured by the Ethereum
    Blockchain
  • Founded in - 2015
  • Number of employees 23
  • Headquarters Los Angeles, California
  • Website - www.lucidsight.com
  • Industry PC and console gaming
  • Funding Information
  • Number of funding rounds 3
  • Total funded amount (USD Mn) 10.5
  • Number of investors 6
  • Nature of funding VC and HNI
  • Investor description BreakawayGrowth Fund, Salem
    Partners, Rana Capital Partners
  • Key Initiatives
  • The VR gaming start-up released a VR advertising
    SDK to help other gaming companies effectively
    monetize their VR games. It was founded to help
    gaming companies focus on developing engaging,
    free, high-quality VR games

Key People
Key People
Erin Reynolds Founder
Randy Saaf CEO
Octavio Herrera COO
Michael Annetta Lead VR Designer
23
Appendix
  • Research Methodology

Reporting The analyst then creates a report with
the support of his findings and analysis, with
help from an editorial team.
Problem identification The analyst identifies
key questions that he/she would like to address
from the market study. He/she describes the major
challenges that would help clients understanding
the industry, globally, or for a specific region.
Defining objectives The analyst then defines the
research objectives and methodologies which form
the basis of the research.
Information gathering The next stage of research
is conducted utilizing secondary and primary
sources of information. They conduct an in-depth
study of the global market, identifying and
understanding its key stakeholders, drivers,
trends, challenges, and opportunities, covering
major regions such as North America, Latin
America, Europe, Asia-Pacific, and the Middle
East and Africa. Primary research complements the
secondary research, as and when required, as it
helps gain insights from the industries directly,
by communicating with senior executives, key
opinion leaders, and independent consultants who
are experts in their industries, or specific
industry sectors.
Analysis The qualitative and quantitative
findings from the previous stages are brought
together by specialists to perform a rigorous
analysis. The regional market trends, drivers,
and opportunities obtained during the analysis
are compared with regional economic indicators,
sector growth rates, population index, etc., to
ensure consistency of the data. After consistency
is ensured, these historical and present
indicators help to understand how the market will
perform in the future. The proprietary
forecasting model factors in all these indicators
to predict the future market accurately.
24
Appendix
  • About Research on Global Markets

Owned by Netscribes, Research on Global Markets
is the go-to platform for global professionals
looking for credible and transparent research on
developed and emerging markets. We set ourselves
apart from other online market research
publishers with our focused coverage, commitment
to data authenticity, simple licensing, and
complete user privacy. Research on Global Markets
(ROGM) is a comprehensive source for syndicated
market research reports on various emerging,
high-growth sectors across the globe. The reports
provide detailed analysis, with reliable market
data and information, including global
macroeconomic trends, market size, growth
forecasts, competitive landscape, and market
share analysis across more than 200
countries. Research on Global Markets draws from
the companys vast experience in market research
and intelligence. It provides tactical and
actionable insights to clients, and enables
effective decision-making and strategic
implementation.
25
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