A brand new report predicts the East Asia video game market will decline in 2025 on account of international points affecting Japan and South Korea.
A report published on July 29 by Niko Partners predicts the East Asia video game market – comprising Japan and South Korea – will decline by 2.3% in 2025. The agency has been monitoring the markets in the 2 international locations for the previous eight years.
In line with the Niko Partners’ East Asia Market Model and Five-Year Forecast, the East Asia area generated $29.1 billion in video games income in 2024, down 3.1% YoY, and can decline barely to $28.5 billion in 2025.
In line with the report, this decline is because of a mixture of “weakened currencies in opposition to the US greenback and an financial slowdown in the face of ongoing international commerce points.”
Nevertheless, the market is predicted to rebound in 2026 and develop to $30.3 billion in 2029, at a five-year compound annual development fee (CAGR) of 0.8%.
Japan’s common income per consumer (ARPU) is predicted to succeed in $21.82, whereas South Korea’s ARPU is projected to succeed in $30.77, the very best of all of the Asian markets coated by Niko Partners.
Elsewhere in the report, the agency predicts the variety of avid gamers in East Asia will develop by 1.3% in 2025 to 98.5 million, with the gamer inhabitants projected to succeed in 101.7 million by 2029 at a 5-year CAGR of 0.9%.
Along with income forecasts, the report supplies key insights on gamer demographics for the East Asian market.
The agency discovered that 46.6% of Japanese avid gamers and 37.8% of Korean avid gamers watch gaming video or livestream content material.
As well as, “one pattern that has remained constant” for the reason that agency started monitoring East Asian markets is “the dominance of RPG titles for PC and cellular.” Nevertheless, Niko Partners notes that Korean gamers are likely to favor multiplayer on-line RPGs, whereas Japanese gamers are wedded to single-player RPGs.