Sector Report

Asian Mobile Gaming: Gamefinity 2

by Seungjoo Ro / Nov 3, 2017

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Endless possibilities of MMORPGs

In this follow up to our 2013 Towards gamefinity report, we find mobile gamers hitting their stride. The proliferation of smartphones has expanded consumption, and as networks and devices upgrade, the possibilities are endless for developers and users alike. We believe this will propel the next stage of mobile massively-multiplayer online (MMO) game growth.

Market evolution Four years ago, we correctly argued that the popularity of midcore games would drive mobile gaming Arpu to new highs. However, we couldn’t imagine the scale that game worlds have reached. MMO games are real-time virtual platforms that typically allow simultaneous user interaction, quests, item collection, community (guild) formation and competition. This has ensured longer mobile-game lifecycles, deep social networks, secondary-market places and high Arpus.

MMO is big, getting bigger Fast forward to now. We believe we are about to witness another leap in the market as MMOs gain scalability. As the eGaming ecosystem upgrades due to better networks and devices, and in conjunction with falling costs of data, new game genres are thriving. The 2016 augmented-reality Pokémon GO was a global success and recorded US$200m in just one month from launch. And we believe this was just the tip of the iceberg – this year, two large Korean mobile MMOs are likely to generate US$1.5bn on the peninsula alone.

Comparing regional players In this report we give an in-depth side-by-side comparison of four regional players and analyse them on six qualitative factors such as management, core market/overseas potential, MMO development capabilities, track record, brand and pricing power and its intellectual property (IP) strength.

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