Casual Games Sector Report: 2017

The global games market is undergoing a period of rapid expansion and structural transformation, with total revenues projected to exceed $100 billion by 2017. This growth is driven by the globalization of business models, such as free-to-play, and the increasing ubiquity of mobile devices. While mature markets in North America, Western Europe, and Oceania currently account for 51% of global revenue, emerging regions—including Asia, Eastern Europe, Latin America, and the Middle East—are expected to drive a compound annual growth rate of 12.5% over the forecast period, eventually shifting the majority of market share toward these developing territories.

Mobile gaming serves as a primary catalyst for this expansion, with smartphone and tablet usage becoming essential for global consumers. By 2017, mobile gaming is expected to capture 34% of the total market, up from 23% in 2013. Simultaneously, the industry is evolving as games transition into broader entertainment brands that span multiple media platforms. This cross-media presence, supported by the rise of eSports and digital content consumption, allows developers to increase engagement and monetize non-paying users more effectively.

China represents a significant focal point for industry growth, with revenues quadrupling between 2008 and 2013. Despite challenges related to piracy and strict censorship, the Chinese market is characterized by a robust mobile app ecosystem and high engagement with both domestic and foreign titles. Success for international companies in this region increasingly depends on local partnerships, effective localization, and the integration of in-game monetization models. The analysis relies on a combination of primary consumer research, transactional data, and financial analysis to provide a comprehensive view of these shifting global dynamics.