J’son & Partners Consulting researched Global and Russian Markets of Online-Games, main tendencies and development forecasts up to 2016. The research includes the analysis of main market segments, projects and market players, market analysis by audience and indicators by each segment.
Russian Online-Games Market: Key Indicators
Nowadays Online-Games Market is the largest segment of global digital content market and generates billions revenue and attracts the audience all over the world.
The same situation is in Russia, where online games “reserved” the place of the most significant and perspective segment of digital content market in 2014 – 2015. We are not yet observing the forecasted decrease, which was indicated by some experts, in the games segment importance in the total range of digital content products, mainly because other types of digital content – music, e-books, video – have much lower volumes in $.
According to J’son & Partners Consulting’s forecast,in Russia Online-Games Market will be comparable by $ with TV advertising market in the country in 2016.
According to J’son & Partners Consulting’s estimations, Russian Online-Games market had reached 1.63 bln USD in 2014 or 2% of the Global game market volume.
For comparison, Blizzard Entertainment, Inc Company, one of the global market players in the production of computer games, had profit of 1.72 bln USD in 2014.
In general, global market was 82 bln USD by the end of 2014 by estimations of the analytical Newzoo Company. According to J`son & Partners Consulting’s forecast, in Russia online games market turnover will grow for 16% by 2016 and will reach 1.89 bln USD despite exchange rates’ fluctuations.
Game-developers use different communication channels in order to promote its games: active use of internet, TV, outdoor advertising, the press and radio. Annual advertising expenditures of market players can be millions and hundred millions of rubles.
Russian Game Market Structure
J'son & Partners Consulting’s experts had divided the market into five segments and researched main publishers and developers in each segment:
- Multi-User Games (online): Mail.Ru Games, Wargaming.net, Innova Systems, Gaijin, Syncopate, Nival etc.
- Mobile Games: Rovio Entertainment Ltd., Game Insight, HeroCraft etc.
- Games for PC: Rockstar Games, Bethesda Softworks, Ubisoft Entertainment, Valve Corporation, Blizzard Entertainment, Electronic Arts etc.
- Games for Consoles: Electronic Arts (EA), Microsoft, Nintendo, Activision, Sony, Ubisoft Entertainment etc.
- Browser/Social Games: Mail.Ru Games, GameInsight, Plarium, RJ Games etc.
On the Russian game market the largest and most important segment was multi-user online products sector. Which market share (in $) was 40% in 2014.
Client-based games are also being researched in this category. It is necessary to install client-program on PC in order to launch such games.
From the technological point, games usually are being presented by the quality product designed with the use of the latest 3D graphics instruments, stereo sound and computer animation. Constant improvement of the “outside view” and internal functionality of multi-user games increases also the volume of gaming clients, pushing it till the tens of gigabytes. Despite this, the development of broadband access to Internet and increase of computers’ capacity prove the fact that digital content distribution in this segment had almost replaced sales of physical carriers.
An important peculiarity of multi-user online games is the active publishers’ work with game community. Some kind of “social network” is being formed around almost each multi-user project, which includes players, teams, clans etc. The importance of cooperation with community leads to “community management” appearance in Russia and similar specialization for companies’ employees. This direction is being developed and is unavoidable part of major companies, which operate on the market.
Mobile games is the fast growing segment with total average growth rate of 23%. Distribution of smartphones and tablets, increasing functionality and the expansion of 3G and 4G (LTE) coverage only facilitate such growth.
The “wearability” of mobile devices is still the important driver of this segment: user holds smartphone in different situations, when there is no access to other game platforms, when a user experiences the necessity in entertainment and “time killer”, for example, in transport, lines etc.
Nowadays, mobile games’ audience is transforming from “casual” to more balanced, similar to PC market, where “hardcore”, “midcore” and “casual” players are connected.
Games for PC
Since the initial steps of game market development, PC-games’ users presented the core of all game audience and are still forming it. PC users are very loyal players, many of them present the core of game audience, and its gaming experience can be measured by years or decades. Such loyalty and game patterns support the development of this segment. Meanwhile, PC-games dynamics will decrease and will at the level of 3-5% per year.
Games of Consoles
Consoles, as platforms for game content consumption, are unique products on the market without any analogs. Unlike other platform solutions, STBs were designed exclusively for game industry, and that is why they have a range of advantages in comparison with any other devices, which are being used for games. More deep player’s “dive in” into the process, wide range of interactive STB’s functions and accessories (improved controllers, additional gadgets), lack of piracy, the quality of published content and many others – these peculiarities allow the segment to step up on the market.
Despite the relatively small audience’s volume of 4.2 mln people in 2014, the ARPU in this segment is more than 4 USD per person – the highest on the market in general. This is due to the fact that the products for consoles cost higher than in other segments.
More opportunities to develop a quality product in this segment appeared lately with the development of technologies. All this influenced sector’s fast growth and attractiveness of more attention from players and developers.
Multi-platform mode is playing an important role in the development of this segment. More and more often the release of standalone browser game is being followed by the version for social networks and mobile platforms.
Games for social networks segment are also being refilled by more serious content projects. Previously, game for social network was a “casual” game, these days they have been expanded with role game blocks, strategies and actions, and most recently 3D-shooters (FPS).
Based on the developed technologies and engines, it is easier for new games to earn players’ attention with beautiful graphics and interesting game process. Exactly the first wow-effect gives the project an opportunity to conquer the audience.
- Mobile Games Sector’s Growth Because of Developing Countries
The interest to mobile games will keep going in Europe and North America, the growth is expected in Latin America and Asia-Pacific region.
- The Continuous Growth of Digital Distribution
Games sales on physical devices are dropping all over the world and are being replaced by digital distribution platforms.
- Growth of Multi-Users Online-Projects
Global profit from console games’ sales possibly will grow very slowly, while from multi-user online projects, oppositely, will show a streaming growth during 2015 – 2016.
- Asia is the New Leader in the Game World
Newzoo Company’s analysts forecast that China will put USA behind by revenue from game industry in 2015 and will become new global market leader. In general, Asia-Pacific region has high potential for growth and is very appealing for investors.
Main Trends of Russian Game Market:
- Mobile Games Segment’s Growth
Segment of mobile games is developing vividly. The cycle of game’s development is shorter in this market niche, new interesting products appear regularly, and besides, Russian developers are very “strong” in this sphere. The expansion of technical opportunities and distribution of high-speed mobile access to Internet also influence the development of the segment, especially in the multi-user part.
- Multi-User Online-Games as a Base for Russian Game Market
Multi-user games bring major part of revenue and still actively acquire players. Despite the decreasing growth rates in 2014 (due to the exchange rates changes mainly), this direction of games is still the most stable and perspective. The Russian landscape of multi-user games sector for the coming two years will be determined by products presented by such companies as Wargaming, Mail.Ru Group and Innova.
- PC and Consoles Market Stagnation
Console Game market has been growing a little bit in 1H2014 due to the market launch of new STBs and new game titles for it, but negative economic situation, the increase in USD exchange rate and prices on new generation of consoles didn’t allow to keep this growth.
Traditionally, consoles’ segment products are the most expensive on the market: the STB itself and the content, purchased for them, require serious financial injections from clients.
Some kind of Status Quo is kept in PC segment, as negative after-effect of the market situation is being neutralized by the development of digital distribution, in particular – success of Steam among Russian players. But the increased prices on computers’ spare parts, which are being required for games – give its negative effect in terms of this segment.
- Stable Growth of Browser and Social Games Segment
Despite the “stop” in the social networks’ audience growth, games for users of these platforms still bring profit to developers. The development of cross-platform technologies will also facilitate the growth of browser/social games. Segment of browser and social games is far from saturation level. The development of technologies in this segment will allow to continue the growth.
Game market audience growth due to the total growth of Internet audience and previously non-playing audience can be named among the key tendencies for 2015 – 2016. The highest audience growth is expected in the segment of multi-user online games.
The development of games based on mobile platforms, launch of new games projects and improvements of monetization models will facilitate the expansion of the audience and attract new players. The vivid example is the World of Tanks game, which combined the audience that didn’t play before but capable to pay, all of this lead to the changes in the market structure. The success of mobile version of World of Tanks Blitz game revealed that there is a large audience for serious mobile projects.
High number of users currently prefers to use several devices simultaneously (consoles, mobile devices, PCs). The choice of platform is being made based on type of game content and situation.
In general, Russian Online-Games market is still the most attractive from the point of investments.
Detailed results of the research are presented in the full version of the Report:The Analysis of the Global and Russian Game Markets in 2014 – 2016: Current Market Situation, Forecasts, Market Players, Projects and Tendencies
Example of Report’s Content:
Sources and Methodology
1. Game Market Overview
1.1. Global Game Market
1.1.1. Market Dynamics and Structure by Segments, 2012–2016
1.1.2. Key Market Players
1.1.3. Devices/Screens and Market Audience
1.2. Russian Game Market
1.2.1. Market Dynamics and Structure by Segments, 2012–2016
1.2.2. Devices/Screens and Market Audience
2. Russian Game Market Structure by Segments
2.1. Mobile Games: Segment’s Dynamics in 2012–2016, Audience and ARPU, Drivers and Barriers
2.2. Multi-Users Online Games: Segment’s Dynamics in 2012–2016, Audience and ARPU, Drivers and Barriers
2.3. One-User Games and Games with the Limited Multi-Users Mode: Segment’s Dynamics in 2012–2016, Audience and ARPU, Drivers and Barriers
2.4. Games for Consoles: Segment’s Dynamics in 2012–2016, Audience and ARPU, Drivers and Barriers
2.5. Browser Games and Games for Social Networks Segment’s Dynamics in 2012–2016, Audience and ARPU, Drivers and Barriers
3. Overview of the Main Market Participants and Competitive Situation
3.1.Profiles of the Key Companies by Segments
3.2. Business- Models Used on Game Market
3.3. Direct Games Advertising in the Media
3.4. Technologies and Instruments, Used by Market Participants
3.4.1. Universal Engines
3.4.2. Special MMO-Engines
3.4.3. Engine for Mobile Platform
3.4.4. Game Engines for Browser Games (incl.online)
3.4.5. Other Technologies, Used by Market Participants (DataMining, General Accounts)
4. Adjacent Markets
4.1. Mobile Terminals Market
4.2. Tablets Market
4.3. PC and Notebooks Market
4.4. Consoles Market
4.5. BBA Market
4.6. Mobile Internet Market
4.7. Electronic Payment Systems
Conclusions and Forecasts
List of Companies and Titles, Mentioned in the Report
List of Conferences in the Game Industry Sphere
List of Main Portals Devoted to Game Industry
List of Figures
Figure 1. Game Market Dynamics, bln USD, 2012-2016
Figure 2. Global Game Market Structure, 2012-2016
Figure 3. Global Game Market Revenue Structure by Regions
Figure 4. Global Game Market Structure by Types of Devices, 2012-2016
Figure 5. Global Game Market Audience Structure by Regions
Figure 6. Russian Game Market, bln.USD, 2012-2016
Figure 7. Russian Game Market Structure, 2012-2016
Figure 8. Russian Game Market Audience, 2012-2016
Figure 9. Russian Mobile Game Market, bln USD, 2012-2016
Figure 10. Russian Mobile Game Market Audience and ARPU, 2012-2016
Figure 11. Russian Multi-Users Game Market, bln USD, 2012-2016
Figure 12. Russian Multi-Users Game Market Audience, mln.people, 2012-2016
Figure 13. Russian Game for PC Market, bln USD, 2012-2016
Figure 14. Russian Game for PC Market Audience, mln people, 2012-2016
Figure 15. Russian Game for Consoles Market, bln USD, 2012-2016
Figure 16. Russian Game for Consoles Market Audience, mln.people and ARPU 2012-2016
Figure 17. Russian Game for Consoles Market, mln USD, 2012-2016
Figure 18. The Audience of the Browser/Social Games in Russia, mln people and ARPU, 2012-2016
Figure 19. TruckToy — Example of the Game on Torque 2D
Figure 20. Editor of Levels in CryEngine 3
Figure 21. HeroBlade Interface
Figure 22. Russian Mobile Terminals Market Structure, 2014
Figure 23. Installed Park and Sales of Smartphones in Russia, mln pcs, 2012-2016
Figure 24. Average Smartphone’s Retail Price in Russia, RUB, 2009-2014
Figure 25. Russian Smartphones Market Structure by Price Segments, RUB, 2012-2014
Figure 26. Russian Smartphones Market Structure by Operational Systems, 2009-2014
Figure 27. Installed Park and Sales of Tablets in Russia, mln pcs, 2012-2016
Figure 28. Tablets Sales in Russia and in the World, mln pcs, 2012-2014
Figure 29. Tablet Average Retail Price, thousand RUB, Russia, 2012 – 2014
Figure 30. Tablets Market Structure by Operational Systems, pcs, Russia and the World, 2014
Figure 31. Installed Park and Sales of Notebooks in Russia, mln pcs, 2012 – 2016
Figure 32. The Number of BBA Subscribers in Russia in Private Segment, 2012-2016
Figure 33. Active Subscriber Base of Mobile Data Transfer, Russia, mln.SIM Cards, 2012 – 2016
Figure 34. EPS Turnover in Russia, bln.RUB, 2012 – 2016
Figure 35. General EPS Payments Structure in Russia, 2012 – 2016
Figure 36. Payment Terminals Market Structure in Russia, 2014
Figure 37. Distance Financial Services Market Structure in Russia, 2014
List of Tables
Table 1. Global Market by Segments
Table 2. The Profile of Blizzard Entertainment
Table 3. The Profile of Activision
Table 4. The Profile of Ubisoft Entertainment
Table 5. The Profile of Bethesda Softworks
Table 6. The Profile of Electronic Arts
Table 7. The Profile of Nintendo
Table 8. The Profile of Microsoft
Table 9. The Profile of Sony Computer Entertainment
Table 10. The Profile of Crytek Corp.
Table 11. The Profile of Square Enix
Table 12. The Profile of Rockstar Games (Take-Two Interactive)
Table 13. The Profile of Valve
Table 14. The Profile of Game Insight (Mobile Games)
Table 15. The Profile of HeroCraft
Table 16. The Profile of Alawar
Table 17. The Profile of Nival
Table 18. The Profile of Mail.Ru Games
Table 19. The Profile of Innova (Innova Systems)
Table 20. The Profile of Syncopate
Table 21. The Profile of Wargaming
Table 22. The Profile of Gaijin Entertainment
Table 23. The Profile of SoftClub (1С-SoftClub)
Table 24. The Profile of Plarium
Table 25. The Profile of 101XP
Table 26. The Profile of RJ Games
Table 27. The Profile of Game Insight (Browser/Social Games)
Table 28. The Profile of Destiny Development
Table 29. Games Monetization Models and its Characteristics
Table 30. List of Advertisers in the Game Industry, 2014
Table 31. TOP-15 Web-Resources by Number of Advertising Games, 2014
Table 32. Game Products Advertising in Cinemas, 2014
Table 33. Game Products Advertising on TV, 2014
Table 34. TOP-15 Advertisers by Advertising Costs, 2014
Table 35. Game Engine Unity 3D
Table 36. Game Engine Torque 2D/3D
Table 37. Game Engine CryEngine 3
Table 38. Game Engine UDK (Unreal Development Kit)
Table 39. Game Engine HeroEngine
Table 40. Game Engine Cocos 2D-X
Table 41. Game Engine Adobe Gaming SDK
Table 42. Game Engine Impact JS
Table 43. Game Engine Citrus
Table 44. Game Engine MightyEngine
Table 45. Game Engine Stencyl
Table 46. The Overview of Game Engines on Mobile Platforms, 2014
Table 47. The Comparison of 7th and 8th generation of consoles by Microsoft
Table 48. The Comparison of 7th and 8th generation of consoles by Sony
Table 49. The Comparison of 7th and 8th generation of consoles by Nintendo
List of Companies and Titles, Mentioned in the Report
Companies (Developers, Publishers, Localizators):
- Titles of Games:
The List of Main Conferences and Events in the Sphere of Game Industry in the Russian Federation and the World
List of Portals about Game Industry in Russia and the Rest of the World
Example of Company’s Profile:
The Report can be provided in English language.
Supplementary, J'son & Partners Consulting can provide Data Bank to the Report, which includes unique data – audience indicators and revenue of some game projects fulfilled by the largest Russian game market players.
This Information Note is Prepared by J’son & Partners Consulting, We strive to provide factual and prognostic data that fully reflect the situation and are available to us before issuing the material. J’son & Partners Consulting reserves the right to revise the data after publication of new official information by the market players.