Asia

Niko Partners 2022 Asia Video Game Industry Predictions

Published

2 years ago

January 17, 2022

George Miller

Niko Partners Predictions for the 2022 Asia Games Market

Reading Time: 5 minutes

1. MENA-3 games market revenue will surpass $2 billion in 2022

Niko Partners initiated coverage on Saudi Arabia, the United Arab Emirates and Egypt for the first time in 2022. We call this region MENA-3 in our reports and expect combined games revenue across all platforms to surpass $2 billion this year. Growth will be driven by higher spending per user, additional government support across games and esports, and more gamers entering the market.

2. India will have over 400 million gamers in 2022 

We predict India will surpass 400 million gamers this year, accounting for over ¼ of total gamers in Asia. We also believe that India, the fastest growing market in Asia, will be the next market to reach $1 billion. Niko Partners has often talked about how the ITV markets, referring to Indonesia, Thailand, and Vietnam, would be the next billion-dollar games markets. These three markets have surpassed $1 billion individually over the past two years.

3. Game approvals in China will restart in early 2022 

China’s video game regulator has not approved any new titles since July 22, 2021. There were only 755 titles approved in 2021, compared to 1,411 in 2020. With the roll out of the national anti-addiction and real name identification system now complete, we expect approvals to restart in early 2022.

4. China’s regulatory approach will shift from reform to enforcement

China’s video game regulator introduced new policies in 2021, primarily aimed at curbing gaming addiction among minors. We expect the regulator to shift away from policy reform in 2022, as it looks to ensure compliance with current regulations. We are already starting to see a crackdown on companies that are curbing regulations and we have upgraded the risk of a Steam International ban in China to high.

5. Game companies in China will increase focus on exports 

Chinese game companies have dominated their home market and found success overseas with mobile games. With increased investment in AAA game development, local indie studios and the ongoing regulatory risk at home, we expect Chinese game companies to start finding success on all platforms overseas in 2022 and beyond.

6. Esports will become more legitimate in 2022

In 2017 the International Olympic Committee recognized esports as a sport, in 2018 esports was a demonstration event at the Asian Games in Jakarta, Indonesia and in 2022 Esports will be a medal event at the Asian Games in Hangzhou, China. This will lead to more investment in esports player pipelines and player development. 2022 will enjoy an increase in esports training, education, subsidies aimed at esports management, player development.

7. Cross Platform and Cross Play will be a staple of new titles in 2022

The success of multi-platform titles such as Genshin Impact, the widespread adoption of scalable game engines such as Unreal Engine and Unity as well as the demand for interoperability between devices has led to players valuing cross platform experiences with cross play. We expect some of the largest game studios in China, South Korea, and Japan to introduce titles that run across PC, Console, Mobile and Cloud with cross play enabled.

8. 5G will be available across all 14 markets we cover in 2022 

5G has been rolling out across numerous markets in Asia since South Korea launched 5G services in April 2019. This has led to increased download speeds, lower latency and helped enable cloud gaming on the go. Malaysia, Vietnam, India and Egypt are the four markets we cover that have yet to roll out 5G. We expect them to start their roll out by the end of the year.

9. M&A / Investments / IPOs will continue to play an important role  

2021 was a record year for game related investments, especially in China where the number of transactions doubled compared to the prior year. Tencent alone invested in or acquired more than 100 game related companies last year. We expect M&A / Investments to continue playing a notable role in 2022 and beyond as the value of IP, development talent and new technologies become more important. While there may be a lower number of deals closed in 2022, we believe the overall value will continue to remain high.

10. Gaming companies will capitalize on the metaverse trend better than tech companies, but it’s still too early for the concept

Metaverse became a hot word in 2021 with numerous tech and gaming companies embracing the concept. Niko Partners believes that live service video games have been building towards the metaverse concept for several years and that companies with experience in both video game development and social media platform operation will have an advantage when entering this space. We expect game focused companies to see the initial benefits of the metaverse trend while tech first companies will struggle to offer value to users. However, we don’t expect to see a true metaverse experience in 2022 based on the currently accepted definitions.

11. The convergence of video games and the entertainment industry further engages gamers 

The video game industry is building on the concepts of metaverse, pan-entertainment and transmedia which is leading to a convergence between games and entertainment. We expect to see more traditional brands, entertainment properties and artists take advantage of live service games in 2022. On the flip side, we expect to see more collaboration between video game IP holders and traditional entertainment such as movies, TV, and comics. This bi-directional approach will further engage gamers in the future.

12. Blockchain game adoption increases, but the space remains experimental 

Blockchain based games made headlines in 2021 and VCs have invested billions in them. The past year has seen the rise of blockchain based non-fungible tokens (NFTs) in games and the exploration of the Play to Earn (P2E) model. We expect to see new innovative game projects in 2022 and increased adoption of blockchain games. However, the numerous barriers to entry, lack of regulation and questions around sustainability will keep the space experimental in 2022.

13. The local game development scene will grow in developing markets 

Of the 14 markets we cover, Japan, South Korea, and China are considered game development powerhouses due to the hit titles released by domestic developers. The success of Vietnamese studio Sky Mavis (publisher of Axie Infinity) and a 2x increase in local game development studios in India since 2019 shows there is growing talent in these emerging markets. We expect to see the release of a hit game ($100m+ revenue) released by a studio from Southeast Asia or India in 2022.

14. The conversation regarding app store take rates will extend into 2022

The Epic v Apple case made headlines in 2021 and it indirectly led to Apple and Google reducing take rates for developers that earn less than $1m per year. In South Korea, a new bill required Apple and Google to offer alternative in app payment options. In China, TapTap made headlines for offering a 0% take rate and numerous developers have invested in direct distribution to avoid app store fees. As pressure continues to build, we expect platform holders to make further concessions in 2022.

15. Increasing government support towards local game development across SEA

In 2021, governments became increasingly supportive of the video game sector. Vietnam’s government took an active role in the creation of Vietnam Online Game Developers and Publishers Alliance (which will be formally established in 2022), Indonesia’s government showed support towards local game developers through fundings and infrastructure support, and Malaysia’s government continue to allocate specific national budget for gaming and esports. We anticipate more of this in 2022.

16. Korea and Japan to continue deregulation of the gaming and esports industry

Following Korea’s abolishment of the 10-year-old Shutdown Law and looking at Japan’s increasing interest in esports, we expect that both countries will continue to ease regulations or even move towards deregulation of certain laws or ordinances that hamper the growth of the gaming and esports industry. While an overhaul of the regulatory environment might not be feasible, small changes will be possible to occur in 2022.

Check our 2021 predictions accuracy here. All our predictions came true, except for #7 as a freeze on game approvals in China led to a lower number of import games being approved in 2021 vs 2020.

Up Next

Gaming Americas Weekly Roundup – January 10-16

Don't Miss

The Best new betting sites for UK and Ireland

Click to comment

Asia

2 RAIDS NET 10 CHINESE, 26 PINOYS FOR ILLEGAL GAMES, ONLINE SCAMS

Published

19 hours ago

May 2, 2024

Adrienn Sarkany

Reading Time: 2 minutes

The Philippine Amusement and Gaming Corporation (PAGCOR) today said 10 Chinese nationals and 26 Filipinos have been arrested in two separate operations against illegal gaming operations and online scams in Laguna and Parañaque City since Tuesday.

The first operation in Biñan, Laguna on Tuesday, May 1, resulted in the arrest of 16 people who were running an illegal online raffle on Facebook. The raiders are from the Philippine National Police Anti-Cybercrime Group (PNP-ACG) and the PAGCOR security group.

The suspects, which run the FB Page Lucky Dream 4, were caught red-handed in their office located inside a subdivision while livestreaming their 50th raffle event.

Earlier today, May 2, another group of suspects that included 10 Chinese nationals were arrested by joint elements of the CIDG-NCR and PAGCOR inside a house in Multinational Village, Parañaque for violation of the Anti Trafficking in Persons Act (RA 9208), Alien Registration Act (RA 562) and Cybercrime Prevention Act (RA 10175).

PAGCOR Chairman and CEO Alejandro H. Tengco said the arrests are part of the state gaming agency’s intensified campaign against illegal online gambling and other illicit activities through strengthened collaboration with law enforcement agencies.

“We have been receiving reports of illegal online activities including those in social media platforms. As the country’s gaming regulator, it is our duty to protect the public – especially the youth — from these illegal online gambling sites,” he said.

PAGCOR Senior Vice President for Security Cluster Raul Villanueva said Lucky Dream 4, which has 111,000 followers on Facebook, was conducting live online raffles that offered second-hand modified motorcycles as prizes.

Villanueva said that in one raffle event, the group can sell an average of 40,000 to 50,000 tickets, with each ticket costing Php40.

“They have amassed over Php8 million from the time they started this illegal online operation because in one draw, they can sell as many as 50k tickets,” Villanueva said.

“Ang masaklap nito, karamihan sa miyembro ng grupong ito ay kabataan. Ang pinaka-matanda sa kanila ay 27 years old pa lang,” he said.

“The Lucky Dream 4 group is obviously engaged in an illegal online gaming activity. Negosyo na ang ginagawa nila. They need to secure a license from PAGCOR if they want to operate an online gaming platform,” Villanueva added.

In the Parañaque raid, Villanueva said authorities arrested seven male and three female Chinese nationals believed to have been part of a group that managed to escape from an earlier raid on a large gaming compound in Bamban, Tarlac last March.

Nine Filipino female workers were also rescued, while one 1 Filipino male serving as a bodyguard was arrested for possession of an undocumented .45 caliber pistol.

The raiders also confiscated around 75 mobile phones, 30 desktop computers, 50 laptops, assorted credit cards, two cars and one motorcycle along with assorted Chinese government documents.

Two vaults were also found in the house located at 18 Teheran Street inside the exclusive subdivision.

Police said the Chinese suspects were engaged in scamming activities such as love and cryptocurrency scams similar to the illegal activities in the Bamban, Tarlac compound which was raided last March.

Asia

Esports media platform TalkEsport raises $1 million in pre-series A funding round

Published

21 hours ago

May 2, 2024

Adrienn Sarkany

Reading Time: 3 minutes

TalkEsport, India’s leading esports media platform, announced today the successful closure of its pre-series A funding round, securing a significant investment of $1 million from Saswat Ventures. The substantial investment underscores TalkEsport’s robust growth trajectory and reaffirms its position as a pioneering force in the esports industry.

Founded in 2011, TalkEsport was set up with a vision to bring timely news and updates to gaming communities worldwide. As India’s oldest esports media platform, the company now caters to millions of gamers worldwide through its website and social media channels. TalkEsport plans to utilize the investment to scale up its core website while launching a highly interactive application for its audience and setting up a state-of-the-art production studio in Mumbai. Through it, the company will be launching exclusive content IPs focused on gaming and esports.

“We are delighted to welcome Saswat Ventures as our strategic partner,” exclaimed Deepak Ojha, Founder and CEO of TalkEsport. “Their belief in our vision and commitment to the esports ecosystem align seamlessly with our mission to redefine gaming experiences globally. With this investment, we will be scaling up our newsroom to cater to gaming communities worldwide while launching new content IPs targeted towards Indian and international audiences.”

Saswat Ventures, a family fund set up by Mr. BL Sharma, Principal, shares a vision of catapulting TalkEsport into a global phenomenon. Mr. Sharma has businesses across the country and expressed his confidence in TalkEsport’s potential to revolutionize esports media and connect with a vast audience of passionate gamers worldwide, “We believe in TalkEsport’s potential to become a global platform for esports enthusiasts worldwide.”

Trilochan Sharma, a seasoned expert in compliance matters, joins TalkEsport’s board as the Director of Compliance. His wealth of experience will ensure adherence to regulatory standards and bolster the company’s governance framework.

In addition to this pivotal investment, TalkEsport is proud to announce key developments that highlight its commitment to innovation and growth:

Production Studio in Mumbai

TalkEsport is excited to unveil its state-of-the-art production studio in Mumbai. This cutting-edge facility will serve as the epicenter for creating high-quality esports content, launching content IPs, live broadcasts, interviews, and immersive gaming experiences.

Pranav Nalawade, the Editor-in-chief of TalkEsport, said, “Our new era of esports coverage will begin not only with TalkEsport’s revolutionary approach in publishing news and covering esports events but also high-quality esports content courtesy of our new production studio. As one of the oldest esports media platforms, we have built an audience that relies on us for our history of trustworthy and reliable news. Now, we want to double up on this audience, reforming the way content around esports is consumed in India and abroad through podcasts, media, short-form content, and analytical stories – both in the form of video and text.”

Upcoming Mobile App Launch

Furthermore, TalkEsport is gearing up for the launch of its mobile application soon. This innovative app promises to redefine how gamers access news, engage with esports communities, and participate in live tournaments, all from the convenience of their mobile devices.

“Proceeds of the $1 million will be utilized in creating a robust team of gaming enthusiasts and expanding our global reach,” added Deepak. “This investment not only propels TalkEsport’s growth initiatives but also fuels our mission to provide unparalleled experiences for esports enthusiasts worldwide.”

Through its application, esports viewers will be able to get live coverage of esports tournaments, scores, and interviews. Additionally, they will be able to participate in community tournaments, thus providing an end-to-end immersive experience from the convenience of their mobile devices.

The media company continues to lead the charge in transforming the esports landscape, fostering community engagement, and pushing the boundaries of gaming innovation. The company’s dedication to excellence, coupled with strategic partnerships and visionary leadership, sets the stage for an exciting chapter in esports media.

Asia

Delasport Signs a Sports Deal with Philippines’ Leading Regulated Operator OKBET

Published

3 days ago

April 30, 2024

George Miller

Delasport Signs a Sports Deal with Philippines’ Leading Regulated Operator OKBET

Reading Time: < 1 minute

Award-winning iGaming supplier in regulated markets Delasport has just signed a sports deal with Philippines’s number 1 operator OKBET.

The leading software developer will provide sports-services to their new partner, enhancing the experience of sports bettors in the Philippines even further.

“We’re proud to supply our services to such a strong partner as OKBET, and to an exciting and steadily growing market as the Philippines”, Delasport’s CEO Oren Cohen Shwartz comments on the agreement.

Regulated Philippines is marking a stable 5% year-to-year growth with the number of users expected to reach almost 6 million by 2029.

This is yet another deal for Delasport, with the global supplier’s expansion in regulated markets happening at full force.

Same goes for OKBET who have been holding the number one operator spot in iGaming in the Philippines for a long time now.

“I’m excited that OKBET and Delasports are joining forces to redefine the landscape of online sports gaming in the Philippines”, OKBET’s COO Wayne Thong also comments on the deal. “This partnership combines OKBET’s local market expertise with Delasports’ global industry leadership, creating new opportunities for innovation and customer satisfaction. OKBET and Delasports share a common vision for the future: a vibrant and dynamic platform that caters to the diverse interests of sports enthusiasts. By combining cutting-edge technology with a deep understanding of user preferences, this collaboration aims to set new standards for the industry.”