Russian computer games market is lacking high quality advertisement
Computer games share in digital content market may decrease in next few years owing to growth of other market segments. It was conclusion made by the Json & Partners Consulting analysts in their research "Development of digital content market in Russia and throughout the world. Results of 2013".
Games is the largest segment of digital content market. In 2013 "Game" segment occupied 71% of world market and 91% of Russian market. Global game market was 75,5 billion dollars in 2013. According to estimates of NewZoo, it will exceed 100 billions in the nearest three years. Average annual growth rate will be 8,1% for 2013-2017.
Recently growth of game market was influenced by several tendencies. First of all, there was increase in number of devices intended for games: gamers keep playing on all available devices - from PC to smartphone - using all benefits provided by development[PB1] and appearance of new technologies. Secondly, popularity of free games increases and new business models of monetization emerge. Developers monetizing games under "Pay to play" model, are looking for new ways of development[PB2] and stimulation of gamers' interest inside game. Implementation of video content and components of electronic sports in games is becoming a part of new strategy of game developers. And the third tendency is possibility of globalization, i.e. developer may reckon on wide-area network distribution of their game throughout the world.
Now most developed[PB3] game industries are in the USA, UK and Japan. The USA game industry is one of the biggest in the world. 59% of the Americans play video games. At the average, one game device (console, PC, smartphone) accounts for 1 household in the USA. Game market in the UK ranks No. 2 in the world by popularity of game consoles - 71% of all gamers play on consoles. And Japanese game market is one of the most advanced: share of revenue from games on smartphones for one year was the half of total revenue of game market which can not be displayed by any other country.
Volume of game market in Russia was 1,8 billion dollars, having increased by 31% compared to the last year results. By J son & Partners Consulting data, share of the Russian segment in world game market was 2,4% in 2013. Analysts noted that the Russian market started to attract large western publishers of all game types due to stable growth dynamics. Also growth in quality of all types and genres of games issued to the market is observed. It may be explained by audience requests: gamers do not want to play low-budged and duplicating projects. Due to increase in age of game audience in Russia, growth of factor ARPU (average revenue per user) is observed. But despite this, Russia remains one of the countries with the lowest share of paying game users.
The main growth driver of the world and the Russian game market is development of Android and iOS operational systems and explosive growth of popularity of mobile and tablet games. By NewZoo data, mobile games made up 23% of total game market in 2013, and by 2016 they will accumulate more than 30% of consolidated revenues of game market. Share of mobile games in the Russian game market reached 18% in 2013, by J son & Partners Consulting data. Since 2010 till 2013 mobile games share in the Russian game industry increased almost by factor of 10.
"Most promising and profitable segment for successful companies is still segment of mobile games. But from the point of view of entry-level development, the market is very complicated and competitive. And it will be more complicated", - noted Sergey Babayev, Business Development Director of Nekki game development company.
Experts noted that different game genres are popular in different market segments. “Shooters feel the best in hardcore client games segment. Including Warface, World of Tanks, Tanks online, etc. - Sergey Babayev says. - Action games feel good in mobile games segment (for example, our Shadow Fight 2) and strategies (Game of War, Total Domination ). New generation projects such as "Klondike: the Lost Expedition" are most popular in social games segment.
By opinion of Dmitriy Kipa, head of analytical department at QB Finance, the Russian game market is lacking good advertisement and PR: "Championships in computer games are held in developed countries, and it increases their popularity. For example, recently there was held Hearthstone championship, it is a strategy card game from Blizzard, and there were players from all over the world: young people from China, the UK, the USA. Also low level of population income hinders development of game market. Not many people can afford buying licensed software or pay for necessary functions in game. Games do not fall into category of basic consumer goods, they are bought for surpluses left after filling of consumer goods basket. And at the average online game requires up to 100 dollars of investments if you want it to be dynamic and keep giving pleasure".
Expert also noted that by results of the next year the Russian game market will take the same 2-3% of world market.
Russian market development is also hindered by development history. "The case is that our users were disaccustomed of thinking that game is such free entertainment fallen from the sky. It took a long time to explain that piracy is a bad thing. And only now we may speak about formation of civilized industry. And also it was partially facilitated by transition to Free-to-play concept (when user may install game without making payments) and server technologies which increased entry threshold to the pirate "crew". Now to crack a game is not a task for boring child any more. There was developed a habit to pay and when it is easier to pay then there is no desire to perform other actions. This stage was passed long ago in industries of the most developed countries. But for us it is not a distant past and a little bit of present", - Sergey Babayev added.
VOLUME OF GLOBAL GAME MARKET, BILLION DOLLARS
Source: NewZoo 2014 Global Games Market Report