Niko Partners

Research

19 documents

Documents

Take Rates in China

The analysis evaluates how take‑rate structures shape mobile game monetisation in China and whether higher‑quality development can outweigh the pressure of traditional distribution fees. It contrasts Apple’s uniform 30 % commission with the far steeper charges imposed by domestic Android app stores, many of which demand up to 50 % of in‑app purchase revenue, and examines the emerging shift toward direct‑to‑consumer distribution and community‑driven platforms. Apple’s 30 % rate applies to the roughly 25 % of Chinese gamers who use iOS, who nonetheless generate about 40 % of mobile game revenue. In the Android segment, the absence of Google Play has led to a fragmented ecosystem dominated by manufacturer‑backed stores such as those from Huawei, Oppo and Vivo, and by Tencent’s MyApp. These stores justify 50 % take rates by bundling distribution, marketing and cross‑store integration, a model that yields high internet‑service margins for hardware makers—Xiaomi reports a 64.7 % gross profit on services versus 7.2 % on devices. Large publishers like NetEase and Tencent have occasionally negotiated lower fees, but most developers accept the 50 % level to reach a broad audience. A growing number of developers are bypassing high‑fee stores, opting for direct distribution or leveraging community platforms that charge little or no commission. Duoyi’s “Shenwu” achieved a 95 % gross profit on Android by selling directly, while its iOS version retained a 70 % margin after Apple’s cut. Similar success is seen with Lilith Games’ “Rise of Kingdoms,” which generated roughly $100 million in its launch month without major Android store presence, and miHoYo’s “Genshin Impact,” which combined a $100 million development budget with fan‑driven channels such as TapTap (0 % take rate) and Bilibili to secure millions of pre‑registrations. These cases illustrate that high‑quality titles paired with intensive marketing and community engagement can sustain profitability even when forgoing traditional store exposure. The study’s scope covers the Chinese mobile gaming market from 2020 through 2021, focusing on iOS and Android distribution channels, take‑rate policies, and developer responses. Insights draw on Niko

monetization market-analysis china

Niko PartnersFeb 2026

Report

Asian & MENA Markets: 2025 Half-Year Report

The video game markets across Asia and the Middle East are entering a period of recalibrated growth, with total revenues across key sub-regions projected to reach significant milestones by 2025. China remains the dominant force, with revenues expected to hit $51.2 billion in 2025, supported by a 4.1% year-over-year increase. This growth is fueled by a 24% rise in game approvals and proactive government subsidies. While China maintains a steady long-term outlook with a 3.0% five-year compound annual growth rate, India emerges as the fastest-growing market. India is projected to surpass the $1 billion threshold in 2025 with a 16.2% year-over-year increase, driven by the PROG Act of 2025, which pivoted the industry away from real-money gaming toward traditional video games and esports. Regional performance varies significantly based on local macroeconomic conditions and hardware cycles. East Asia, comprising Japan and South Korea, shows a more optimistic outlook than previously anticipated, with a revised five-year growth rate of 1.7%. This shift is attributed to the successful launch of the Nintendo Switch 2 and a recovery in the South Korean mobile sector. Conversely, Southeast Asia and the MENA-3 region (Saudi Arabia, UAE, and Egypt) face more tempered expectations. Southeast Asia’s growth forecast was lowered to 3.5% due to headwinds in Thailand and Indonesia, despite strong performance in Vietnam. Similarly, the MENA-3 forecast was adjusted downward to a 6.4% growth rate as economic challenges in Egypt and slower mobile growth in Saudi Arabia offset increased government support for localization and age-rating reforms. The data, derived from Niko Partners’ 2025 half-year market model updates, covers PC, mobile, and console platforms across 13 distinct markets. The methodology integrates proprietary market models, macroeconomic indicators, and qualitative regulatory analysis to provide a comprehensive five-year outlook through 2029. Overall, the findings suggest that while mature markets like China and East Asia are stabilizing, emerging markets like India and Vietnam are becoming critical drivers of global industry expansion.

market-analysis market-forecast asia+1

Niko PartnersJan 2025

Report

Access for All: Expanding Opportunities for Players and Publishers Worldwide

This analysis explores the strategic shift toward out-of-app monetization in the global gaming industry, with a specific focus on Southeast Asia and China. The primary thesis posits that while Apple and Google have historically dominated distribution, publishers are increasingly adopting alternative channels—including third-party web stores, first-party direct-to-consumer platforms, and alternative app stores—to bypass high "take rates" and better serve unbanked populations in emerging markets. Key findings indicate that out-of-app monetization is already a mature practice in Asia. In Southeast Asia, these channels account for 21% of mobile game revenue, while in China, they represent 53% of the market. Data from 2023 highlights that in the "SEA-6" countries (Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam), 40-50% of the adult population remains unbanked, making the credit card-centric models of primary app stores ineffective. Consequently, gamers in these regions prefer e-wallets, carrier billing, and physical vouchers. A case study of Mobile Legends: Bang Bang in the Philippines demonstrated that a localized promotion using an e-wallet partner led to a 133% increase in daily purchase volume and a 167% rise in transactions. The scope of the research covers the evolution of digital distribution over the last 15 years, with a forward-looking projection through 2027. It emphasizes the impact of regulatory momentum in the EU, UK, South Korea, and Japan, where new legislation is forcing primary stores to allow alternative payment systems. Methodology relies on Niko Partners’ 2023 market model, gamer surveys, and proprietary data from Coda Payments. The findings conclude that publishers who fail to localize their monetization and discovery strategies risk losing significant market share to regional competitors who offer more flexible, lower-cost payment solutions.

monetization market-analysis global

Niko PartnersJan 2025

Report

10 Major Trends to Watch in Asia & MENA

The video game industry across Asia and the Middle East and North Africa (MENA) is undergoing a period of significant transformation as of 2025, driven by shifting player demographics and evolving monetization strategies. These regions represent the primary engines of global gaming growth, characterized by a massive mobile-first audience and a rapidly expanding middle class with increasing discretionary income. Market dynamics are increasingly defined by the convergence of social media, competitive gaming, and cross-platform accessibility, which have collectively lowered the barrier to entry for new consumers while deepening engagement among existing enthusiasts. Strategic focus in these territories has shifted toward hyper-localization and the integration of emerging technologies to enhance user retention. In the MENA region, government-backed initiatives and large-scale investments are accelerating the development of local infrastructure and talent, positioning countries like Saudi Arabia and the United Arab Emirates as central hubs for international esports and game development. Meanwhile, the Asian market continues to lead in the refinement of live-service models and the adoption of innovative payment ecosystems that bypass traditional storefront limitations. The current landscape emphasizes the necessity of understanding regional regulatory environments and cultural nuances to achieve commercial success. As the industry moves forward, the integration of artificial intelligence in content creation and the rise of niche gaming communities are expected to further diversify the market. Companies that prioritize local expertise and adapt to the unique technological preferences of these diverse populations will be best positioned to capitalize on the sustained upward trajectory of the Asia and MENA gaming sectors.

market-analysis player-demographics asia+2

Niko PartnersJan 2025

Report

Japanese Esports on the Rise: Five Teams to Watch

Japan is rapidly evolving from a video game superpower into a significant esports market, overcoming historical regulatory and cultural hurdles. While the country previously lagged behind China and South Korea due to strict anti-gambling laws that capped prize pools and a lack of domestic titles in popular esports genres like MOBAs, recent policy shifts have transformed the landscape. Following the 2019 removal of most legal restrictions and the formation of the Japan Esports Union (JeSU), the market grew by 11% to reach $77 million in 2022. The ecosystem is characterized by a unique "watching but not playing" culture, where livestreaming and content creation drive engagement among both gamers and non-gamers. This has led to the rise of prominent organizations such as Crazy Raccoon, DetonatioN FocusMe, FENNEL, SCARZ, and ZETA DIVISION. These teams increasingly operate as lifestyle brands, generating revenue through traditional sponsorships, merchandise, and specialized content partnerships. Notably, non-endemic brands like Nissin Foods have entered the space, with sponsorship fees reportedly increasing tenfold over the last five years. Despite this momentum, the industry faces challenges, including a "Galapagos syndrome" where domestic game preferences differ from global trends, and a power imbalance where publishers maintain strict control over tournament formats. However, the outlook remains optimistic. Industry leaders anticipate further consolidation and professionalization, mirroring the evolution seen in Western markets a decade ago. As teams seek international expansion and venture capital, Japan is positioned to become a major hub for esports talent and tourism in Asia.

esports market-analysis investment+1

Niko PartnersFeb 2023

Report

The MENA Games Market: From Sand to Stardom

The Middle East and North Africa (MENA) gaming market is experiencing a period of rapid expansion, characterized by significant government investment, a growing base of digital natives, and an increasing emphasis on cultural localization. As of 2022, the MENA-3 region—comprising Saudi Arabia, the United Arab Emirates, and Egypt—generated $1.8 billion in revenue and supported 67.4 million gamers. This growth is underpinned by a strong mobile-first ecosystem and a burgeoning esports sector that benefits from high engagement rates and substantial public sector backing, most notably through Saudi Arabia’s National Gaming and Esports Strategy. The industry’s trajectory is heavily influenced by the necessity of localized content. Data indicates that 86.6% of regional gamers prioritize language localization, and successful titles like PUBG Mobile have demonstrated that integrating regional celebrities, cultural themes, and Arabic-language support is essential for market penetration. Beyond content, the region is actively fostering a domestic development pipeline through workforce training, educational initiatives, and high-profile mergers and acquisitions, such as those led by the Savvy Games Group. These efforts aim to transition the region from a consumer market into a global hub for game development and esports. Esports serves as a primary driver of engagement, with 73% of regional gamers participating in competitive gaming. The rise of local influencers and streamers, coupled with massive prize pools and the development of dedicated infrastructure like esports cities, has created a self-sustaining cycle of fan engagement and corporate sponsorship. Furthermore, the market is increasingly viewed as a strategic partner for international firms, particularly those from China, which have successfully utilized the region as a growth market. By leveraging social gaming trends—where voice chat and online socialization are central to the player experience—and prioritizing gender-inclusive gaming spaces, the MENA region is positioning itself as a significant, high-growth player in the global gaming landscape.

market-analysis mena saudi-arabia+3

Niko PartnersJan 2023

Report

Peak Play: Trends in East Asian Videogame Streaming H1 2023

The East Asian videogame livestreaming market is a mature and culturally distinct ecosystem where competitive esports serve as the primary engine for audience engagement. During the first half of 2023, MOBA and Battle Royale titles accounted for over half of the region's most-watched content. While established franchises like League of Legends maintain a dominant presence, the market is increasingly shaped by the influence of Key Opinion Leaders and VTubers. These creators contribute up to 15% of total viewership for major titles and have demonstrated the power to revitalize older games such as Minecraft and Escape from Tarkov. Regional preferences reveal a bifurcated landscape where specific titles command massive scale. In China, Honor of Kings remains the undisputed leader with 5.67 billion views, while VALORANT and Apex Legends dominate the Japanese and Korean markets, each surpassing 100 million hours watched. The barrier to entry for new releases is high, as only high-profile 2023 titles like Diablo IV, Honkai: Star Rail, and Street Fighter 6 managed to break into regional top-ten rankings. The rapid ascent of Honkai: Star Rail in China notably came at the expense of Genshin Impact, which saw a 31% decline in viewership as audiences shifted toward the newer release. The integration of granular streaming analytics and market intelligence is essential for navigating this complex environment. By tracking metrics across platforms such as Twitch, YouTube, and AfreecaTV, stakeholders can monitor audience retention and demographic shifts. This data-driven approach highlights the volatility of the market, evidenced by the 68.5% decline in Splatoon 3 viewership following its launch period. Understanding these dynamics—ranging from the professional esports circuit to the rising prominence of virtual avatars—is critical for identifying growth opportunities and executing successful market entry strategies across Asia.

streaming market-analysis esports+1

Niko PartnersJan 2023

Report

Five Key Mobile Game Genres in Asia and MENA

The bulletin delivers a data‑driven assessment of the five most influential mobile game genres in Asia and MENA for 2022, combining a 9,000‑respondent survey from Niko Partners with AppMagic’s analytics of Apple and Google Play stores. The analysis covers China, India, Indonesia, Japan, Korea, Malaysia, Philippines, Saudi Arabia, Singapore, Thailand, UAE, Vietnam and Egypt, providing a comprehensive view of regional spending patterns, download volumes, and player demographics. RPGs dominate the market, generating 50 % more revenue than the other four genres combined and achieving the highest monetization score (7.7) thanks to strong spend in East Asia. Strategy games rank second in revenue and third in downloads, yet exhibit the lowest engagement score (5.2) due to shorter play sessions and lower player longevity. MOBAs deliver the second‑highest revenue per download (5.4) and lead in average weekly playtime, but their esports engagement is modest. Puzzle titles enjoy the largest download base (highest engagement score of 6.0) but suffer from low monetization and esports relevance. Battle Royale games, while generating the lowest total revenue, excel in esports metrics (score 9.5) and maintain high engagement levels. The methodology blends survey‑derived player profiles with AppMagic’s download, revenue, and esports viewership data across 21 metrics, weighted into four categories—monetization, engagement, esports appeal, and overall genre score. The resulting scores (1–10) rank RPG as the top genre overall, with Battle Royale leading in esports influence and Puzzle offering the broadest download reach. The bulletin concludes that developers targeting these markets should tailor monetization strategies to RPG’s high spend, leverage MOBAs’ loyal user base, and capitalize on Battle Royale’s esports traction.

market-analysis mobile asia+1

Niko PartnersJan 2023

Report

Female Gamers in Asia: Version for Women in Games Asia Panel

Female gamers represent a primary engine of growth within the Asian interactive entertainment market, accounting for 35% of the region's 1.46 billion total gamers as of 2021. This demographic is expanding at a faster rate than the general gaming population, with a year-over-year growth of 7.6% compared to the total market increase of 5.0%. The scope of this analysis covers China and the Asia-10 markets, which include Chinese Taipei, India, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Thailand, and Vietnam. Data was derived from a 2021 survey of over 6,500 randomized respondents who identified as active gamers across mobile, PC, and console platforms. Mobile gaming is the dominant platform for this demographic, utilized by 95% of female gamers, while 60% engage with PC games and 17% use consoles. In terms of genre, female players in Asia show a strong preference for role-playing, racing, and strategy games. Discovery of new titles is primarily driven by social recommendations from friends, followed by the visual quality of graphics and core gameplay mechanics. Monetization trends indicate that female gamers are highly engaged with in-game economies, with 84% of those willing to spend making in-game purchases. They are particularly inclined toward purchasing cosmetic items and participating in gacha mechanics. In 2021, female gamer spending reached $13.07 billion in China and $5.52 billion across the Asia-10 for mobile titles, while PC game spending reached $9.70 billion and $3.93 billion in those respective regions. These findings suggest that gender inclusivity and targeted development for diverse interests are essential for capturing the full economic potential of the Asian games industry.

player-demographics market-analysis diversity-inclusion+1

Niko PartnersOct 2022

Report

Southeast Asia’s Games Market

Southeast Asia represents one of the world’s fastest-growing video game markets, characterized by a young population, improving infrastructure, and a rapidly expanding digital economy. Data indicates that the six major countries in the region—Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam—account for approximately $5 billion in market size and 270 million gamers. While this represents 6% of total Asian games revenue, the region is projected to maintain a compound annual growth rate of 8.6% through 2025. Esports serves as a primary driver for this growth, with over 200 million viewers and gamers in the region. Approximately 60% of Southeast Asian gamers are strongly drawn to esports, and 42% are classified as competitive arena gamers. This interest has led to the integration of esports into major regional athletic events like the SEA Games. Furthermore, the audience is becoming increasingly diverse; female gamers now make up 40% of the total gaming population, with growth rates in this demographic outpacing the general market average. In specific markets like Indonesia and Singapore, women comprise nearly half of the gaming audience. The region has also emerged as a pioneer in blockchain and play-to-earn gaming, exemplified by the success of titles like Axie Infinity, which reached over one million daily active users. However, the market faces unique challenges, including parental skepticism, fluctuating government regulations regarding game approvals and bans, and complex cultural sensitivities. Successful expansion requires navigating diverse religious and social landscapes, as localized content can significantly boost revenue while cultural oversights can lead to public backlash or censorship. Ultimately, Southeast Asia offers significant opportunities for global stakeholders, provided they adopt localized strategies rather than a one-size-fits-all approach.

market-analysis market-forecast player-demographics

Niko PartnersJan 2022

Report

PaaS for Mobile Cloud Gaming

The white paper argues that Platform‑as‑a‑Service (PaaS) for mobile cloud gaming represents a transformative shift in the Asian mobile and free‑to‑play (F2P) game markets. It identifies a 1.5 billion‑strong Asian gamer base, with 1.4 billion already on mobile, yet only a small fraction have adopted cloud gaming; adoption is projected to take more than five years, driven by 5G rollout and government incentives. The analysis contrasts premium B2C cloud offerings—subscription or time‑based fee models—with the emerging B2B PaaS model, which allows developers to host titles on cloud infrastructure and monetize through F2P mechanics. Key players include Tencent, Now.gg, Ubitus, WeLink, and Alibaba Cloud, with China’s telecoms using cloud gaming to spur 5G uptake. The paper cites data such as China’s 1 million 5G base stations, 365 million 5G users, and an expected 80 % of smartphones being 5G‑capable by year‑end, underscoring the technical prerequisites for viable cloud play. Methodologically, the study draws on proprietary consumer panels of over 4 million in China and millions across other Asian markets, supplemented by industry interviews. The conclusion posits that mobile cloud PaaS will mature faster than premium B2C offerings, reducing acquisition costs, bypassing app‑store take rates, and enabling broader reach for high‑quality titles such as Genshin Impact. The report projects a global expansion of this model beyond Asia, reshaping monetization and discovery in the mobile gaming ecosystem.

cloud-gaming market-analysis

Niko PartnersJan 2021

Whitepaper

PaaS for Mobile Cloud Gaming: China

Platform as a Service (PaaS) for mobile cloud gaming represents a transformative shift in the video game industry, moving beyond traditional consumer-facing cloud services to provide developers and publishers with essential infrastructure tools. The primary thesis is that mobile cloud PaaS serves as a strategic B2B solution to streamline user acquisition, circumvent restrictive app store fees, and expand the addressable market by removing hardware and storage constraints. Unlike premium, subscription-based cloud gaming models that depend on widespread consumer adoption, mobile cloud PaaS integrates directly into the existing free-to-play (F2P) ecosystem, making it a more viable and rapidly maturing segment. The industry landscape is currently anchored by developments in China, where 5G infrastructure—essential for the low latency required for cloud gaming—has reached over 365 million users. While the B2C cloud gaming market in China faces challenges from saturation and fragmented content, the B2B PaaS segment is gaining momentum through providers such as Tencent, Haima Cloud, and WeLink. These platforms enable developers to host titles in the cloud, allowing high-end games to run on low-end hardware and facilitating instant, link-based game discovery via social media and browsers. This approach is particularly critical given that user acquisition costs currently account for 30% to 40% of total game revenue. Methodologically, the analysis draws on market data from 2021, highlighting that while 1.5 billion gamers exist in Asia, the majority have yet to convert to cloud gaming, leaving significant room for growth. The research emphasizes that the shift toward distributed, edge-based infrastructure and ARM-based hardware allows for more efficient, on-demand resource allocation compared to earlier, centralized server models. As mobile titles increasingly adopt cross-platform strategies, mobile cloud PaaS is positioned to become a global standard, fundamentally altering how games are marketed, distributed, and monetized by bypassing traditional app store gatekeepers.

market-analysis cloud-gaming mobile+2

Niko PartnersJan 2021