Game Publishing reports and market data
Documents
The Latin American games market overview 2019
The Latin American games market represents a significant growth opportunity for global developers, characterized by a large, digitally connected population with a strong affinity for mobile gaming.
- The Latin American games market is dominated by five key hubs—Brazil, Mexico, Argentina, Colombia, and Chile—with Brazil serving as the largest individual market.
- Approximately two-thirds of the Latin American population has internet access, and more than half of those users are active gamers.
- Effective localization requires addressing linguistic nuances, specifically the differences between Latin American and European Spanish, as well as Brazilian and European Portuguese.
The games industry scenario in China – And the value a local publisher can provide
The Chinese gaming market represents a massive, high-growth opportunity characterized by a dual-sided reality.
- The Chinese gaming market generates over $37 billion in annual revenue with a player base exceeding 600 million, making it a high-growth but hyper-competitive landscape.
- Foreign firms must utilize local partners to navigate regulatory requirements, as Chinese law mandates that any entity operating in the region must be locally owned.
- Local publishers are essential for managing the fragmented Android ecosystem, which consists of over 200 distinct app stores, and integrating localized payment systems like WeChat Pay and Alipay.
THQ Nordic AB (publ) Acquires 18POINT2: Investor Presentation
THQ Nordic AB expanded its global footprint in February 2019 through the acquisition of 18POINT2, a prominent Australian publishing and distribution firm.
- THQ Nordic acquired Australian publisher 18POINT2 in February 2019 for a total consideration of 2.4 million EUR, split equally between cash and shares, plus a potential earn-out of 0.4 million EUR.
- 18POINT2 reported 15.6 million EUR in operating income and 2.3 million EUR in EBIT for 2018, establishing itself as the eighth-largest physical software distributor in Australia as of mid-2018.
- The acquisition provides THQ Nordic with a direct operational base and retail distribution network in Australia and New Zealand, a region experiencing a 35% compound annual growth rate in console installations.
Publishing in Asian markets – The ‘how to’ discussion
Asian mobile gaming markets represent a complex, high-stakes landscape that demands a departure from Western-centric strategies.
- Success in Asian markets requires abandoning a monolithic strategy in favor of localized approaches that address the distinct cultural, monetization, and regulatory ecosystems of China, Japan, and South Korea.
- Developers must move away from generic global releases toward a 'zero-to-one' development strategy that prioritizes content tailored to regional social integration and specific genre preferences.
- In China, navigating the complex licensing landscape and protecting intellectual property necessitates the use of strategic local partnerships.
The future of the Chinese mobile games industry
The Chinese mobile games industry is currently undergoing a significant transition characterized by a maturing user base of 600 million players and a shift toward high-quality, experience-driven titles.
- The Chinese mobile gaming market has matured to a base of 600 million players, shifting from data-driven titles toward high-quality, narrative-heavy, and experience-focused content.
- Regulatory hurdles remain significant, requiring developers to adhere to strict ethical and cultural standards and navigate a rigorous, government-controlled licensing process.
- To mitigate domestic regulatory risks and navigate complex licensing requirements, Chinese developers are increasingly prioritizing expansion into global markets.
Navigating the funding jungle to finance your studio – Equity and project financing
Securing sustainable financing for game studios requires a strategic approach that prioritizes long-term alignment between creative vision and business objectives.
- Prioritize funding partners who provide industry-specific expertise, mentorship, and professional networks rather than treating capital as a mere commodity.
- Select a financing model—such as equity-based venture capital, project-specific funding, or publisher-led incubation—based on how it aligns with your studio’s long-term creative vision and need for operational independence.
- Initiate relationships with potential investors well before capital is required to build trust and avoid the unfavorable terms often associated with reactive, urgent deal-making.
Keys for success in hypercasual and Messenger games
Hyper-casual and messenger games represent a distinct segment of the mobile industry defined by accessible, snackable mechanics and rapid development cycles.
- Hyper-casual games are defined by core gameplay loops that engage users every 1–3 seconds, with success often driven by iterative design rather than complex metagame features.
- User acquisition has become the primary driver of success in the hyper-casual market, shifting the focus from pure game design to the ability to measure and scale paid marketing profitably.
- Messenger-based games rely heavily on viral sharing and social moments to drive organic growth, which can potentially bypass the need for traditional paid user acquisition.
UNO! Playing your cards right in global casual games
Mattel163, a joint venture between Mattel and NetEase, leverages the globally recognized Uno intellectual property to bridge the gap between casual gaming and sophisticated monetization strategies.
- Mattel163 leverages the Uno brand to lower user acquisition costs while applying Asian-inspired monetization mechanics to a global casual audience.
- The game generates approximately 60% of its revenue through in-app purchases, supplemented by rewarded video advertisements to maintain engagement for non-spending players.
- As of early 2019, the platform reached 15 million unique players with average daily play times exceeding one hour.
How Facebook works with games publishers to support sustainable businesses
Facebook supports game publishers by providing a comprehensive ecosystem that facilitates the entire commercial lifecycle, from initial user acquisition to long-term monetization.
- Facebook distributed $3.2 billion to game publishers through its monetization networks in 2017, highlighting its role as a major revenue driver for the mobile gaming economy.
- 73% of gamers accept advertising as a standard component of free-to-play titles, viewing it as a fair trade for content access.
- Successful publishers are shifting from retrofitting ads to designing games with monetization strategies integrated into the core experience from the outset.
Too Soon?!? - The Challenges of Early Builds and Game Demos - Extra Credits
The game development process is frequently misunderstood by the public, particularly regarding the state of a project during its production cycle.
- Game development is characterized by a fluid, incomplete state where core components are frequently missing or subject to total removal until the final stages of production.
- Early trailers and promotional materials often consist of isolated, temporary assets rather than a functional, unified game, creating a disconnect between public perception and the actual state of development.
- Creating playable demos for industry events like E3 forces developers to divert resources toward temporary hacks and workarounds that are discarded immediately after the event, hindering core progress.
The GDPR - What It Means For You! (Developers AND Players!) - Extra Credits
The General Data Protection Regulation (GDPR), which became effective in May 2018, represents a significant shift in how international organizations handle consumer data privacy.
- Non-compliance with GDPR carries severe financial penalties, reaching up to 20 million euros or 4% of a company’s annual global revenue, whichever is greater.
- The GDPR applies to any organization with an online presence that collects data from European Union residents, effectively mandating global compliance for most gaming companies.
- Developers must adopt 'privacy by design,' integrating data protection measures into the earliest stages of game development rather than treating them as an afterthought.
THQ Nordic AB Acquires Bugbear Entertainment: Investor Presentation
THQ Nordic AB expanded its global development footprint in November 2018 by acquiring a 90% stake in Helsinki-based Bugbear Entertainment, with an option to purchase the remaining 10% in the future.
- THQ Nordic acquired a 90% stake in Helsinki-based Bugbear Entertainment in November 2018, with an option to purchase the remaining 10%.
- The acquisition grants THQ Nordic full ownership of Bugbear’s intellectual property, specifically the Wreckfest and Stuntfest franchises.
- Wreckfest, which sold over 400,000 units on Steam following its June 2018 release, serves as the primary driver for the acquisition due to its strong commercial performance.