Hello, I am Jaegon Jang
Today, we will look at the latest trends in the gaming market
And the various opportunities that can be found in it
In this lecture, we will learn about
The size of the gaming industry, its major markets, and how this market is changing
You can check the annual statistical data on the gaming industry
Through KOCCA's research report, the White Paper on Korean Games
Through the recent White Paper on Korean Games, we will take a detailed look at
The benefits of the gaming industry, including its size and major markets
Size and Growth Rate of The Domestic Game Market
First, let's look at the domestic gaming market's overall size and growth rate
In 2022, the domestic game market recorded KRW 22.2149 trillion
Showing a growth rate of about 5.8% compared to 2021
This growth rate has decreased significantly compared to 2020
The reason is that
The increase in home-based activities due to COVID-19 has driven the growth of the gaming market
But the growth rate is gradually slowing
Through this, we can see that the gaming industry is entering
A stabilization phase after initial rapid growth
The domestic game market has been showing a growth rate of about 5~10% or more every year
But recently, the growth rate has been gradually slowing down
So, it can be said that the industry has gradually stabilized
Although the growth rate is slowing
The market size can be seen to be growing every year
You can also see how it's growing by platform
As the trend toward increased use of smartphones continues globally
The growth trend in the mobile game market is expected to continue
The size of the domestic mobile game in 2022 is
Approximately KRW 13.072 trillion
Showing a growth rate of 7.6% compared to the previous year
The share of mobile games in the domestic game market is
49.7% in 2019, 57.4% in 2020
57.69% in 2021 and 58.8% in 2022
It was growing yearly
While continuing to grow even during COVID-19
It can be seen that the game trend in the domestic game industry is oriented toward multi-platform
Rather than development for the PC platform
In that respect, we can predict the continued growth of mobile games
Also, PC games, one of the two major axes of domestic games
Have a market size of KRW 5.0805 trillion
And show a 3.0% growth rate compared to the previous year
The size of PC games, which decreased by 4.3% in 2019 before the outbreak of COVID-19
Showed positive growth from 2020 to 2022
Benefiting from the preferred non-face-to-face period due to COVID-19
However, its market share in the game market remains at around 26%
Exposing the limits of its growth potential
The reasons for this include the advancement of smartphones, cloud gaming, and the strength of VR and AR
Which can be said to have taken the market share that PC games
Had from other platforms
Unlike in the past, people prefer to play games
Using smartphones rather than at home
So, it seems that the limitations of this growth potential are being exposed
Although console games grew by 6.4% compared to the previous year
With a market size of KRW 1.1196 trillion in 2022
The market share of the overall game market
Remains at 5.1%, similar to the previous year
In 2021, there was a decline rate of 3.7% during the game console crisis
When console game devices such as PlayStation could not be purchased
Compared to such a decline rate, in 2022
It can be said that this growth is showing because there were no issues
Related to the market for special console game devices or game software
PC rooms, arcade game halls
These game distribution businesses
Entered a recovery period in 2022
Due to the base effect of the severe market contraction
Due to the COVID-19 outbreak in 2020
However, the growth rate of PC rooms was 1.9%
Which was not much better than 2.4% in 2021
Although the market size of arcade game centers is very small at KRW 43.8 billion
The growth rate in 2020 was around 10.4%
It can be said that it has entered a period of recovery from the blow caused by COVID-19
However, it is difficult to expect independent growth in the future
It is highly likely that the console market
Such as store chains or displays of arcade devices in certain stores
Will become active and grow together
Next, we will look at the global market's import and export status and position
The size of the domestic game market in 2023 is
Expected to reach KRW 19.79 trillion
A 10.9% decrease from 2020
The decline in the size of the gaming industry can be seen as a result of
The shrinking position of the gaming market due to the decrease in time
At home in the post-Corona era and the increase in other entertainment that can be enjoyed as an alternative
It is predicted that such a game market will be formed as the economic slump caused by
The decline in consumer sentiment and interest rate hikes become a reality
Viewed as a whole, the size of the gaming market
Has rapidly increased to 21.3% in 2020 due to the outbreak of COVID-19
But can be seen as continuing to gradually decline
It can be seen that the size of the market is stabilizing at this stage
Based on this, the size of the domestic game market will decrease by around 10% in 2023
Which can be seen as the rise in game market sales
Due to alternative entertainment, such as Netflix, OTT
Which has recently emerged
Due to the combination of these various factors
We believe that the growth rate outlook for the gaming market is somewhat difficult
However, depending on the development and sophistication of gaming platform technology
The growth rate may vary depending on the platform
As a result of a survey of the major export countries for domestic games
China showed the highest rate at 30.1%
Followed by Japan at 14.4%, Southeast Asia at 14.2%, Taiwan at 12.0%
North America at 10.5%, and Europe at 9.8%
The importance of comparing these export countries is that
It can be seen as an indicator that can be used to judge and gauge in advance which countries to prioritize and develop
When producing games in the future
And what tendencies the users of those countries will have
It can also be used as an indicator to produce games
Tailored to major export countries
So, if we compare the proportion of exports by country with the past
We can find that the proportion of exports to Taiwan, a Southeast Asian country, has increased significantly to the 5.6% range
While the proportion to China has decreased significantly to the -4% range
The reason is that the demand for games has increased in the Southeast Asian market
And unlike in the past, the advancement of smartphones
Has turned non-gamer users into gamers
As a result, it can be said that game consumption has increased significantly compared to the past
It can be seen that the proportion has decreased significantly
Compared to the past, due to the domestic demand strategy and legal sanctions
So you can predict these industry trends and the future
Since COVID-19, changes in game user patterns
The spread of high-end smartphones and the increase in multi-platform development
Can be seen as major trends in the game industry
Accordingly, the growth of mobile games is particularly notable
While PC and arcade games are
Showing relatively limited growth
Therefore, it is expected that games created in the future will mainly be mobile games
Because the growth of mobile games is prominent
On the other hand, PC and arcade games are expected to decrease somewhat
As the market is growing rapidly and many games are being developed
There is a high possibility that it will become a red ocean
Therefore, it is time to consider the platform on which to make the game
Based on the strategic judgment
Macro Trends in the Gaming Industry
Next, let's look at macro trends in the gaming industry
Let's analyze the macro trends in the gaming industry
Focusing on the global gaming market trends in 2022
This analysis focuses on a deep understanding of the overall slowdown
In the growth rate of the market and its key causes
In 2022, the global gaming market grew by only 0.9%
Compared to the previous year, reaching $208.249 billion
This represents a significant decrease compared to the growth rate of 5.9% in 2021
And can be seen as a clear indicator of the impact
On the gaming market after the COVID-19 pandemic
Also, this slowdown can be seen as a sensitive response to
Various external adverse factors, such as
Changes in game users' behavioral patterns
Increased uncertainty in the global economy
And strengthened regulation in major markets after COVID-19
So, if we further analyze the cause of this trend
The Chinese government's strengthening of gaming regulations has
Significantly impacted the global gaming market
The youth gaming restriction policy, which has been in effect since 2022
Strictly limits daily and weekly gaming hours
And prohibits gaming access
From 10 pm to 8 am
These regulations have had a significant impact on
The gaming market in China and how global game developers
Access the Chinese market and do business
For example, we could see that China's share of the domestic game market
Has decreased compared to the past
The reason may be seen as a regulation
Next, we will look at trends by platform
The arcade game market gradually recovered
After a major decline in 2020
But growth is still limited
The growth rate in 2020 was 4.1%, which is a decrease compared to previous years
As arcade games have a business model
Requiring large initial investments
Therefore, we can see a decrease compared to the growth rate
Due to the conservative approach of investors and operators
Amid global economic and consumer psychological uncertainty
On the other hand, console games recorded relatively stable growth
Compared to 2021, a growth rate of 2.6% was recorded in 2022
And sales slightly increased
To $59.141 billion
This slight increase can be attributed to
Successfully introducing a new lineup of console gaming machines
And gaming software to the market
The popularity of console games, especially in North America, is increasing
Which is interpreted to reflect changes in overall entertainment consumption patterns
For this reason, the technological advancement of console devices
And technological advancements in graphics cards and CPUs
Have resulted in further enhancement of the technology of console devices
It can be said that the popularity of these console games has increased
Because games that take full advantage of the technology of
These console devices have been released and received favorable reviews from users
As a result, PC and mobile games recorded
A slight growth of 0.1% and negative growth of 0.5%, respectively
Clearly showing the slowing growth of the overall game market
In the case of mobile games, unlike the market that previously recorded high growth rates
The transition to negative growth can result from a combination of market saturation
Intensifying competition and economic factors
Likewise, in the case of PC games, users have become less consuming
Due to the small number of game releases related to market saturation and intensifying competition
And similar to what was mentioned earlier
It seems that economic factors, such as the decline in consumer sentiment, are
Working together similarly resulting in very weak growth
Based on the data and statistics introduced through this lecture
I hope you can predict each platform's strategies and the global gaming industry's future outlook
Gain insights that enable learners to understand the current market situation accurately
And prepare for future changes
Thank you
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
Growth analysis by platform Mobile games: Growth is expected to continue as smartphones continue to trend toward higher specifications
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
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
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
Trends by platform Arcade Games Market: Showing gradual recovery after a major decline in 2020 but limited growth
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