The gamer population is growing by leaps and bounds in China. DFC Intelligence forecasts that gaming software profits will climb to over $40 billion by 2020. Retail sales, gaming subscriptions and virtual item sales will all add to the growth. While games-as-a-service remains a dominant force through Asia on the PC, the model is cooling in North America and Europe. Part of the reason for this shift is due to the social network free-to-play games, which are frequently played on mobile devices.
China Remains a Major Worldwide Force
Worldwide, China remains a major force in PC gaming revenues. While the country produced $12 billion in PC gaming profits in 2015, the US, holding the second spot, only made $4.2 billion. Therefore, China, especially among the PC gamer population, is a dominant personality in the gaming marketplace. Countries occupying the third, fourth and fifth spots include South Korea, Japan, and Germany.
Besides PC gaming, a lot of attention is focused on China in other gaming venues. For example, big Chinese companies, such as Tencent, showed a 14% growth rate in revenues. Many Western games are also doing well in China. Increasing synergies are emerging between PC gamers and mobile gamers, who can play the same games over multiple screens or platforms.
So, if you look at the overall PC gaming population for mobile and PC play, China is leading the way in these categories. The US follows in second place while South Korea, Japan and Germany are in the third, fourth and fifth spots.
The Social Gaming Market
The social gamer population is expanding as well. According to Transparency Market Research, the social gaming market globally will reach over $17 billion by 2019 in the US. The compound annual growth rate or CAGR is estimated at just over 16%, between 2012 and 2019. The market stood at $5.40 billion in US dollars in 2012.
Virtual Goods and their Impact
The main reason for the increase in social gaming is due to an increase in the gamer population base. People who spend a good deal of time online visit social gaming sites. Virtual goods, lead generation offers and ads are the main sources of revenue in the social gaming venue. Among these segments, virtual goods is projected to show the quickest growth, demonstrated by a CAGR of just over 15%.
Young Gaming Enthusiasts
By age group, the TMR report shows players fall into such categories as 13 to 18 years old, 19 to 25 years old, 26 to 35 years of age, 36 to 45 years old and 46 years and older. The 19-to-25-year-old group represented the largest share of gamers, with no slowdown expected in this category.
China Love Social Gaming
The TMR report further analyzes the social gaming market by region. The key regional markets for the online sport include North America, Europe, and Asia Pacific. The Asia Pacific region is emerging as a market leader, owing to its rapid rise, economically, in such countries as China, South Korea, Japan, India, and Indonesia. Again, China demonstrates that is a leader in this gaming venue too.
Tablets – Major Gaming Devices
In addition, according to a report in Fortune Magazine, people using tablets surpass people using smartphones in the gaming marketplace. Despite a reported decrease in new tablet sales, game revenues from tablets are growing at a speedier pace than they are on smartphones. In turn, tablets are cementing a top position as a major gaming device.
Both tablets and smartphones provide gamers with two new screens on which to play. These smaller screens are seen as an addition rather than a substitute to the technologies that are used. Using a smartphone or tablet enables a gamer to enjoy gaming just about any time or anywhere. As a result, gaming time has increased in the US. At last count, the percentage increase was set at 40%.