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Projected to pass 500 million gamers by 2028

SAN JOSE, Calif. – Sept 20, 2019 – Niko Partners, the leading market research and consulting firm covering the Asia digital games market, today announced the availability of their 2019 Cloud Gaming in Asia report. According to the study, cloud game platform and services revenue in Asia will reach $270 million in 2019, rising to $3.0 billion in 2023. 3 million gamers in Asia will use cloud gaming platforms in 2019, rising to 60 million in 2023 – with the potential to pass 500 million gamers by 2028. Cloud gaming will also remove the cost and platform barriers to gaming that currently exist for many people.

“Cloud gaming will be of tremendous benefit to gamers who will have access to a large number of high quality titles without the need for expensive hardware,” said Lisa Hanson founder and managing partner of Niko Partners. “Developers, publishers, and platforms all profit as well with greater reach and more ways to monetize, however the companies that own the most parts of the value chain from IP to infrastructure stand to benefit the most. And as with so many other sectors of gaming, Asia is leading the way.”

Key takeaways from the report include:

  • Cloud game platform and services revenue in Asia will reach $270 million in 2019, rising to $3.0 billion in 2023 – with the potential to pass 500 million gamers by 2028.
  • There will be 3 million cloud game platform users in Asia in 2019, primarily from subscription and B2P services in Japan, rising to 60 million in 2023. By that year the majority of players will engage with free to play or time based fee platforms.
  • Cloud gaming is an excellent opportunity to remove cost and platform barriers to gaming that exist today.
  • Cloud gaming will remove the need for constant hardware upgrades and players will be able to consume cloud games on existing devices, or possibly on future devices that may have low specs and can accommodate games only played in the cloud.
  • The biggest opportunity is for cloud gaming to access smartphone gamers, who comprise the largest share of the Asia gamer audience, and who would be able eventually to play PC and console games easily on their mobile device.
  • 5G and unlimited data plans are keys to success for cloud gaming in Asia, as most gamers play on mobile devices. The services and investment in the 5G infrastructure are paramount to success.

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Niko Partners is the leader in Asian Games Market Intelligence, specializing in the Chinese and Greater Southeast Asian game markets. Founded in 2002, the firm conducts syndicated and custom research studies on Chinese gamers, Greater Southeast Asian gamers, online games, mobile games, consoles, Smart TV gaming, regulatory issues, piracy, development, online operators, distribution, and retail. Niko Partners also offers consulting services including focus groups, partnership selection, market opportunity analysis, custom surveys in cities throughout China and the Asia Pacific region and customized data analysis. The goal of the research and strategic advisory services is to help understand the market, strategically enter or expand market share, and continue to profitably grow within China and throughout Asia’s impressive markets. The company is based in Silicon Valley, with offices in Shanghai, Bangkok, Jakarta and London, and its clients include worldwide leaders in game software, hardware, and services, as well as hedge funds, media companies, trade associations, and management consulting firms, all of whom have a vested interest in a thorough understanding of the games industry in Asia.