WEBVTT

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Hello, I am Jaegon Jang

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Today, we will look at the latest trends in the gaming market

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And the various opportunities that can be found in it

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In this lecture, we will learn about

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The size of the gaming industry, its major markets, and how this market is changing

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You can check the annual statistical data on the gaming industry

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Through KOCCA's research report, the White Paper on Korean Games

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Through the recent White Paper on Korean Games, we  will take a detailed look at

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The benefits of the gaming industry, including its size and major markets

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Size and Growth Rate of The Domestic Game Market

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First, let's look at the domestic gaming market's overall size and growth rate

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In 2022, the domestic game market recorded KRW 22.2149 trillion

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Showing a growth rate of about 5.8% compared to 2021

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This growth rate has decreased significantly compared to 2020

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The reason is that

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The increase in home-based activities due to COVID-19 has driven the growth of the gaming market

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But the growth rate is gradually slowing

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Through this, we can see that the gaming industry is entering

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A stabilization phase after initial rapid growth

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The domestic game market has been showing a growth rate of about 5~10% or more every year

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But recently, the growth rate has been gradually slowing down

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So, it can be said that the industry has gradually stabilized

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Although the growth rate is slowing

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The market size can be seen to be growing every year

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You can also see how it's growing by platform

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As the trend toward increased use of smartphones continues globally

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The growth trend in the mobile game market is expected to continue

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The size of the domestic mobile game in 2022 is

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Approximately KRW 13.072 trillion

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Showing a growth rate of 7.6% compared to the previous year

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The share of mobile games in the domestic game market is

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49.7% in 2019, 57.4% in 2020

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57.69% in 2021 and 58.8% in 2022

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It was growing yearly

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While continuing to grow even during COVID-19

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It can be seen that the game trend in the domestic game industry is oriented toward multi-platform

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Rather than development for the PC platform

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In that respect, we can predict the continued growth of mobile games

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Also, PC games, one of the two major axes of domestic games

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Have a market size of KRW 5.0805 trillion

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And show a 3.0% growth rate compared to the previous year

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The size of PC games, which decreased by 4.3% in 2019 before the outbreak of COVID-19

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Showed positive growth from 2020 to 2022

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Benefiting from the preferred non-face-to-face period due to COVID-19

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However, its market share in the game market remains at around 26%

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Exposing the limits of its growth potential

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The reasons for this include the advancement of smartphones, cloud gaming, and the strength of VR and AR

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Which can be said to have taken the market share that PC games

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Had from other platforms

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Unlike in the past, people prefer to play games

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Using smartphones rather than at home

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So, it seems that the limitations of this growth potential are being exposed

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Although console games grew by 6.4% compared to the previous year

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With a market size of KRW 1.1196 trillion in 2022

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The market share of the overall game market

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Remains at 5.1%, similar to the previous year

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In 2021, there was a decline rate of 3.7% during the game console crisis

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When console game devices such as PlayStation could not be purchased

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Compared to such a decline rate, in 2022

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It can be said that this growth is showing because there were no issues

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Related to the market for special console game devices or game software

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PC rooms, arcade game halls

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These game distribution businesses

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Entered a recovery period in 2022

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Due to the base effect of the severe market contraction

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Due to the COVID-19 outbreak in 2020

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However, the growth rate of PC rooms was 1.9%

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Which was not much better than 2.4% in 2021

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Although the market size of arcade game centers is very small at KRW 43.8 billion

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The growth rate in 2020 was around 10.4%

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It can be said that it has entered a period of recovery from the blow caused by COVID-19

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However, it is difficult to expect independent growth in the future

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It is highly likely that the console market

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Such as store chains or displays of arcade devices in certain stores

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Will become active and grow together

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Next, we will look at the global market's import and export status and position

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The size of the domestic game market in 2023 is

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Expected to reach KRW 19.79 trillion

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A 10.9% decrease from 2020

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The decline in the size of the gaming industry can be seen as a result of

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The shrinking position of the gaming market due to the decrease in time

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At home in the post-Corona era and the increase in other entertainment that can be enjoyed as an alternative

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It is predicted that such a game market will be formed as the economic slump caused by

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The decline in consumer sentiment and interest rate hikes become a reality

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Viewed as a whole, the size of the gaming market

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Has rapidly increased to 21.3% in 2020 due to the outbreak of COVID-19

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But can be seen as continuing to gradually decline

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It can be seen that the size of the market is stabilizing at this stage

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Based on this, the size of the domestic game market will decrease by around 10% in 2023

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Which can be seen as the rise in game market sales

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Due to alternative entertainment, such as Netflix, OTT

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Which has recently emerged

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Due to the combination of these various factors

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We believe that the growth rate outlook for the gaming market is somewhat difficult

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However, depending on the development and sophistication of gaming platform technology

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The growth rate may vary depending on the platform

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As a result of a survey of the major export countries for domestic games

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China showed the highest rate at 30.1%

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Followed by Japan at 14.4%, Southeast Asia at 14.2%, Taiwan at 12.0%

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North America at 10.5%, and Europe at 9.8%

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The importance of comparing these export countries is that

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It can be seen as an indicator that can be used to judge and gauge in advance which countries to prioritize and develop

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When producing games in the future

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And what tendencies the users of those countries will have

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It can also be used as an indicator to produce games

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Tailored to major export countries

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So, if we compare the proportion of exports by country with the past

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We can find that the proportion of exports to Taiwan, a Southeast Asian country, has increased significantly to the 5.6% range

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While the proportion to China has decreased significantly to the -4% range

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The reason is that the demand for games has increased in the Southeast Asian market

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And unlike in the past, the advancement of smartphones

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Has turned non-gamer users into gamers

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As a result, it can be said that game consumption has increased significantly compared to the past

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It can be seen that the proportion has decreased significantly

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Compared to the past, due to the domestic demand strategy and legal sanctions

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So you can predict these industry trends and the future

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Since COVID-19, changes in game user patterns

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The spread of high-end smartphones and the increase in multi-platform development

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Can be seen as major trends in the game industry

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Accordingly, the growth of mobile games is particularly notable

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While PC and arcade games are

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Showing relatively limited growth

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Therefore, it is expected that games created in the future will mainly be mobile games

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Because the growth of mobile games is prominent

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On the other hand, PC and arcade games are expected to decrease somewhat

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As the market is growing rapidly and many games are being developed

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There is a high possibility that it will become a red ocean

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Therefore, it is time to consider the platform on which to make the game

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Based on the strategic judgment

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Macro Trends in the Gaming Industry

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Next, let's look at macro trends in the gaming industry

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Let's analyze the macro trends in the gaming industry

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Focusing on the global gaming market trends in 2022

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This analysis focuses on a deep understanding of the overall slowdown

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In the growth rate of the market and its key causes

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In 2022, the global gaming market grew by only 0.9%

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Compared to the previous year, reaching $208.249 billion

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This represents a significant decrease compared to the growth rate of 5.9% in 2021

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And can be seen as a clear indicator of the impact

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On the gaming market after the COVID-19 pandemic

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Also, this slowdown can be seen as a sensitive response to

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Various external adverse factors, such as

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Changes in game users' behavioral patterns

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Increased uncertainty in the global economy

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And strengthened regulation in major markets after COVID-19

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So, if we further analyze the cause of this trend

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The Chinese government's strengthening of gaming regulations has

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Significantly impacted the global gaming market

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The youth gaming restriction policy, which has been in effect since 2022

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Strictly limits daily and weekly gaming hours

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And prohibits gaming access

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From 10 pm to 8 am

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These regulations have had a significant impact on

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The gaming market in China and how global game developers

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Access the Chinese market and do business

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For example, we could see that China's share of the domestic game market

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Has decreased compared to the past

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The reason may be seen as a regulation

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Next, we will look at trends by platform

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The arcade game market gradually recovered

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After a major decline in 2020

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But growth is still limited

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The growth rate in 2020 was 4.1%, which is a decrease compared to previous years

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As arcade games have a business model

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Requiring large initial investments

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Therefore, we can see a decrease compared to the growth rate

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Due to the conservative approach of investors and operators

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Amid global economic and consumer psychological uncertainty

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On the other hand, console games recorded relatively stable growth

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Compared to 2021, a growth rate of 2.6% was recorded in 2022

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And sales slightly increased

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To $59.141 billion

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This slight increase can be attributed to

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Successfully introducing a new lineup of console gaming machines

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And gaming software to the market

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The popularity of console games, especially in North America, is increasing

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Which is interpreted to reflect changes in overall entertainment consumption patterns

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For this reason, the technological advancement of console devices

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And technological advancements in graphics cards and CPUs

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Have resulted in further enhancement of the technology of console devices

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It can be said that the popularity of these console games has increased

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Because games that take full advantage of the technology of

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These console devices have been released and received favorable reviews from users

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As a result, PC and mobile games recorded

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A slight growth of 0.1% and negative growth of 0.5%, respectively

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Clearly showing the slowing growth of the overall game market

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In the case of mobile games, unlike the market that previously recorded high growth rates

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The transition to negative growth can result from a combination of market saturation

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Intensifying competition and economic factors

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Likewise, in the case of PC games, users have become less consuming

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Due to the small number of game releases related to market saturation and intensifying competition

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And similar to what was mentioned earlier

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It seems that economic factors, such as the decline in consumer sentiment, are

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Working together similarly resulting in very weak growth

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Based on the data and statistics introduced through this lecture

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I hope you can predict each platform's strategies and the global gaming industry's future outlook

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Gain insights that enable learners to understand the current market situation accurately

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And prepare for future changes

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Thank you

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Domestic game market size and growth rate
Overall size and growth trends of the domestic gaming market
Entering a stabilization phase after initial rapid growth

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Growth analysis by platform
Mobile games: Growth is expected to continue as smartphones continue to trend toward higher specifications

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PC games: Growing after COVID-19 due to occasional preference, but market share is maintained and growth is limited
Console games: A growing trend, but the overall gaming market share is similar to the previous year

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Macro trend of the gaming industry
Size and growth of the global gaming market
The global gaming market has shown slowed growth following COVID-19 due to changes in game users' behavioral patterns increased uncertainty in the global economy

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and strengthened regulations in major markets
The Chinese government's strengthening of gaming regulations has a significant impact not only on the gaming market but also on the way game developers operate their business

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Trends by platform
Arcade Games Market: Showing gradual recovery after a major decline in 2020 but limited growth

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Console games: recorded relatively stable growth
PC games and mobile games: recorded slight and negative growth, clearly showing the slowing growth of the overall gaming market