Mobile Games Market Spotlight: Japan

Key insights

6 takeaways

01
Japan accounted for 22% of all global mobile game player spending on the App Store and Google Play during the first nine months of 2020.
02
The Japanese mobile gaming market reached a record $14.5 billion in revenue in 2019, representing nearly 23% of the global market share.
03
Japanese publishers maintain strong local dominance, with eight of the top 10 revenue-generating mobile games in Japan between 2016 and 2020 originating from domestic companies.
04
Japanese publishers accounted for 25% of the world’s top 20 revenue-generating mobile game firms in the first three quarters of 2020, led by Bandai Namco ($1.5 billion) and Square Enix ($1.2 billion).
05
International revenue for the top 10 Japanese-published mobile games surpassed $1 billion for the first time in 2019, driven primarily by titles like Dragon Ball Z: Dokkan Battle and Fate/Grand Order.
06
Japan held the position of the world’s number one mobile game market by revenue from 2014 to 2018, before shifting to the number two spot behind the United States in 2019 and 2020.

Summary

Japan remains a dominant force in the global mobile gaming industry, accounting for 22 percent of total worldwide player spending on the App Store and Google Play during the first nine months of 2020. While the nation’s share of the global market has moderated from its 2015 peak of nearly 30 percent due to the rapid expansion of the United States and China, it continues to generate significant revenue, reaching a local record of $14.5 billion in 2019. The market is characterized by a strong preference for domestic publishers, who secured eight of the top 10 revenue-generating spots in Japan between 2016 and 2020.

The industry’s influence extends well beyond its borders, with Japanese publishers maintaining a significant global footprint. In the first three quarters of 2020, Japanese firms accounted for 25 percent of the world’s top 20 revenue-generating mobile game publishers, led by companies such as Bandai Namco and Square Enix. Furthermore, international sales for the top 10 Japanese-published games surpassed $1 billion in 2019, driven largely by high-performing titles like Dragon Ball Z: Dokkan Battle and Fate/Grand Order.

These insights are derived from Sensor Tower’s Store Intelligence data, covering the period from 2014 through the third quarter of 2020. The analysis highlights a transition in the Japanese market, where year-over-year revenue growth has slowed to single digits. Despite this deceleration and increased competition from international hits, Japan’s historical legacy and current mobile performance confirm its status as a cornerstone of the global gaming ecosystem.