Niko Partners

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.

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.

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.

The MENA Games Market: From Sand to Stardom

The video game market in the Middle East and North Africa (MENA) is undergoing a period of rapid expansion, characterized by significant revenue growth and high levels of player engagement. Focusing specifically on the MENA-3 region—comprising Saudi Arabia, the United Arab Emirates, and Egypt—the industry generated $1.8 billion in revenue from 67.4 million gamers in 2022. This growth is part of a broader global trend where the industry reached $175.7 billion in revenue and 3 billion players worldwide. The regional market is defined by a young demographic, with nearly 90% of gamers aged 12 to 24 using gaming as a primary social platform. Strategic investment and government support, particularly in Saudi Arabia, serve as the primary catalysts for this development. The Saudi government has committed $37.8 billion to gaming investments, aiming to host top-tier esports events and establish the kingdom as a global hub. Esports is a major pillar of this strategy; 73% of MENA gamers engage with esports, and the region has seen a surge in prize pools, reaching $45 million in 2023. Furthermore, the market is becoming increasingly inclusive, with female gamers representing approximately 32% of the total player base in the MENA-3 countries. Successful market entry depends heavily on localization and culturalization. While 76% of MENA gamers consider localization important, many titles have historically struggled with poor Arabic implementation. Case studies of successful titles like PUBG Mobile demonstrate that deep integration with local celebrities and cultural themes drives high revenue and downloads. Additionally, there is a growing synergy between MENA and Asian markets, particularly China. Chinese companies have found success in the region through long-term engagement and strategic partnerships, providing a benchmark for how international investment and local talent development can foster a sustainable, homegrown gaming ecosystem.

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.

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.

Five Key Mobile Game Genres in Asia and MENA

This analysis examines the performance and player demographics of five dominant mobile game genres—RPG, Strategy, MOBA, Puzzle, and Battle Royale—across Asia and the MENA region. These genres collectively represented nearly 80% of total mobile game spending in these territories during 2022. By synthesizing survey data from 9,000 gamers across 14 countries with mobile market intelligence, the findings provide a comparative framework based on monetization, engagement, esports involvement, and general appeal. RPGs emerge as the leading genre by overall score, dominating in revenue and monetization. The genre benefits from a high-income player base and a more balanced gender distribution than its competitors. While RPGs lead in total spend, the Puzzle genre leads in total downloads, appealing to an older demographic that prioritizes localization. In contrast, MOBA titles demonstrate the highest player loyalty and weekly time commitment, though the market is difficult to penetrate due to the entrenched dominance of a few key titles. The research highlights a significant divide in the esports landscape. Battle Royale ranks as the premier genre for esports engagement, with players showing the highest propensity to stream content and aspire to professional competition. Strategy games also show a surprising affinity for esports, with players being the most likely to attend live events. Conversely, while MOBA games have high tournament prize pools, their players are the least likely to attend events in person. The geographic scope covers major markets including China, India, Japan, South Korea, Egypt, and Saudi Arabia. Methodology involved scoring genres across 21 unique metrics to create weighted averages. Conclusions suggest that while some segments like shooter-based Battle Royales face saturation, opportunities remain for innovation in sub-genres, such as merge-style puzzle games or casual competitive titles, to capture the diverse and growing player base in these regions.

Female Gamers in Asia 2022

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.

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.

PaaS for Mobile Cloud Gaming

The emergence of Business-to-Business (B2B) Platform as a Service (PaaS) for mobile cloud gaming represents a transformative shift in the global games market. While consumer-facing cloud services for PC and console titles are still seeking widespread adoption, mobile cloud PaaS is already being deployed as a strategic tool for developers and publishers. This technology allows high-end mobile games to run on low-end hardware without local installations, effectively removing hardware constraints and storage limitations that previously hindered market penetration. The primary thesis centers on how PaaS solutions enable industry stakeholders to circumvent traditional app store ecosystems. By hosting games in the cloud, publishers can reduce user acquisition costs, which typically account for 30% of revenue, and avoid the 30% "take-rate" fees charged by standard app stores. This model is particularly effective for Free-to-Play (F2P) titles, as it facilitates seamless social discovery through shareable links and instant-play advertisements, converting non-gamers into active users without the friction of large downloads. Geographically, China serves as the primary proving ground due to its massive mobile-first population and aggressive 5G rollout, with over 365 million 5G users as of 2021. While the Chinese market is currently saturated with B2C platforms, B2B providers like Tencent, Haima Cloud, and WeLink are gaining traction. Internationally, companies such as Now.gg and Ubitus are scaling these solutions globally. Data indicates that while only 30% of Chinese gamers have tried cloud services, the addressable market is vast, as mobile gamers currently account for less than half of the 1.5 billion smartphone users in the region. Methodologically, the analysis draws on proprietary research from Niko Partners, utilizing a consumer panel of over 4 million users in China and millions more across Asia. The findings conclude that mobile cloud PaaS will mature faster than premium B2C cloud offerings because it integrates with existing F2P monetization habits rather than requiring new subscription behaviors. This shift is expected to redefine live operations, social integration, and the overall value chain of the global mobile gaming industry.