2014 Global Mobile Game Industry White Paper

Fast-growing global mobile gaming market

In 2014, the global game market size reached US$81.4 billion, with smart terminals accounting for 27%, or US$21.8 billion.

In 2014, China’s mobile game market accounted for 17% of the global market, or US$3.7 billion.

In the next three years, the global mobile game market will grow three times faster than the overall game market, reaching US$35.4 billion in 2017.

In 2013, Japan’s mobile game revenue accounted for the largest proportion of the world’s total at 31%, followed by North America at 22%, Western Europe at 14%, and China at 13%.

From 2013 to 2017, mobile game revenue in Latin America grew the fastest, with a compound growth rate of 50%, China 37%, Asia-Pacific 32%, Eastern Europe 27.7%, North America 19.5%, and Oceania 17.8%.

Distribution of mobile game paying players

US players: 60% of small paying users, 8% of whale paying players

Asian players: 74% of small paying users, 4% of whale paying players

The explosion of mobile game market in China

In Q1 2014, the mobile game market size reached 5.868 billion yuan.

The market size is expected to reach 237.56 billion in 2014, an increase of 71.7% compared with 2013.

It will reach 22.843 billion in 2015, an increase of 42.5% over 2014.

The market size in 2016 exceeded RMB 42.705 billion, an increase of 26.2% over 2015.

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The mobile game industry chain is mature, and the division of labor is clearer

Competition is becoming increasingly fierce

The total number of domestic mobile game user devices exceeds 400 million

In Q1 2014, the total number of active smart terminal devices in China reached 780 million, and the total number of mobile game user devices reached 400 million.

The number of mobile game players continues to grow rapidly. In Q1 2014, the number of active mobile game users increased by 50% compared to Q4 2013, ranking fifth among all vertical fields.

Among Android users, Samsung, Xiaomi and OPPO have a higher brand share among mobile game players.

Low-end and high-end devices share the market

In terms of the price distribution of mobile game users’ devices, 31% of them are priced at RMB 1,000, and 27% are high-end devices priced above RMB 3,000. Among them, 80% of the devices priced above RMB 3,000 are iOS devices.

Huge opportunities for users in third-tier cities

In Q1 2014, 17% of mobile game users were in first-tier cities, 22% in second-tier cities, and 61% in third-tier cities and below. The proportion of mobile game users in third-tier cities and below increased by 10% compared with the same period in 2013.

Mobile game players in first- and second-tier cities prefer to play business simulation, educational, and adventure games.

Mobile game players in third-tier and lower cities prefer action arcade, chess, card, sports and music games.

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Gender analysis of mobile game users

Among light game players, female players account for 54%

Heavy game users are mostly male, with female players accounting for only 14%.

Mobile game players’ preferences for non-game apps

Heavy game players use social apps the most, followed by book reading and financial management.

Light game players tend to use health care and e-commerce shopping guide applications.

The common characteristic of mobile game players is that they all prefer leisure and entertainment, education and learning, and book reading applications.

Capital M&A investment continued to be active in the first half of 2014

King goes public on the New York Stock Exchange: On March 26, 2014, King Digital Entertainment went public on the New York Stock Exchange at an issue price of $22.50 per share. IOPS raised $500 million in financing.

Tencent invested in CJGame: On March 26, 2014, Tencent acquired 28% of CJGame’s shares for US$500 million, becoming CJGame’s third largest shareholder.

Enlight Media acquired Xianhai Technology for RMB 230 million.

Alpha Animation and Culture acquired Fangcun Technology for RMB 325 million and AiLeYou for RMB 367 million

Youzu Information acquired Meihuasan through a backdoor listing.

Tuowei Information acquires Huorong Information for RMB 810 million

Aishi Shares acquires Youju Times

Zhumi.com received RMB 130 million investment