Japanese Mobile Gaming Market: 2018

Key insights

6 takeaways

01
The Japanese mobile gaming market reached $13.3 billion in revenue in 2018, reflecting a modest growth of $400 million compared to the $12.9 billion generated in 2017.
02
Market growth is decelerating significantly, with annual increases dropping from $2 billion in previous years to $1.6 billion between 2016 and 2017, and further to $400 million in 2018.
03
The top 10 highest-earning mobile games in Japan account for 40% of the total market revenue.
04
Domestic titles dominate the top-earning leaderboard, with nine of the top 10 games being Japanese, led by Mixi’s 'Monster Strike' at $842 million and Aniplex’s 'Fate/Grand Order' at $800 million.
05
NetEase’s 'Knives Out' was the only foreign title to break into the top 10, securing the fourth position with $365 million in annual revenue.
06
The market data encompasses a broad range of mobile content, including apps, browser-based games, and titles developed for feature phones.

Summary

The Japanese mobile gaming market experienced continued growth in 2018, reaching a total revenue of $13.3 billion. While this figure represents an increase of $400 million over the previous year’s $12.9 billion, the data indicates a significant deceleration in the market's expansion. In comparison, the market grew by $1.6 billion between 2016 and 2017, and by $2 billion in preceding annual periods, signaling a maturing industry with a cooling growth rate.

The market landscape remains heavily concentrated at the top, with the ten highest-earning titles accounting for 40% of total industry revenue. The leaderboard is dominated by domestic Japanese developers, with nine of the top ten games originating from local firms. Monster Strike led the market with $842 million in revenue, followed by Fate/Grand Order at $800 million and Puzzle & Dragons at $440 million. Notably, the Chinese-developed title Knives Out was the only foreign game to secure a position in the top ten, generating $365 million.

This analysis, which incorporates data from the Japan Mobile Content Forum and the consulting firm Kantan Games, covers the mobile gaming sector in Japan, including apps, browser-based games, and titles for feature phones. By highlighting the shift from rapid, multi-billion dollar annual growth to a more modest trajectory, the findings provide a clear picture of the competitive and increasingly saturated nature of the Japanese mobile gaming environment during the 2018 fiscal period.