Niko Partners: the addressable cloud gaming market in Asia will triple to reach 500 million by 2025


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Cloud gaming could reach an addressable market of around 150 million people in 2021, but the actual number of cloud gaming users is lower than that, according to a report from market research Niko Partners.

Niko partners estimated that the addressable cloud gaming market represents around 10% of the total population of 1.5 billion gamers in the Asian region today. But that could reach over 500 million by 2025, Niko said. This does not mean that 150 million cloud gaming subscribers are currently in the region. This means that is the scope possible if everyone who could register actually did.

Niko did not specify the number of cloud gaming subscribers at this time. The report covers the whole region, current services and outlook in countries such as China, South Korea, Japan, Chinese Taipei, Indonesia, Malaysia, Singapore, Vietnam, Thailand , the Philippines and India.

Niko said that of the 1.5 billion gamers in Asia, around 1.4 billion play on mobile, 550 million on PC and 50 million on consoles.

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“As with many aspects of the game, Asia is also at the forefront of cloud gaming. This is true both in terms of infrastructure and the number of companies in the space with products ready to go, ”Lisa Cosmas Hanson, president of Niko Partners, said in an email to GamesBeat.

Asia is first and foremost a mobile gaming market and most people’s first experience with cloud gaming will be on smartphones. Therefore, 5G will be a key requirement for the viability of cloud gaming. These companies and the gaming industry in general will need to focus on three key areas to ensure they can deliver high quality service to users: infrastructure and network, content and experience, and value and cost.

Cloud gaming is still in its infancy in the region, with only a few countries offering cloud gaming services. South Korea, Japan, and Taiwan are Asia’s most developed cloud gaming markets, while the Philippines, Malaysia, and India are the least developed.

Niko believes South Korea is the most viable market for cloud gaming today, with SKT 5GX Cloud Game (Xbox) being the most likely service to be successful given its advantage in content, accessibility. and value, coupled with a strong 5G and broadband infrastructure across the market as well as an already strong gaming culture.

Above: Niko Partners notes the internet infrastructure behind gaming in China.

Image Credit: Niko Partners

While cloud gaming will allow mobile gamers to access high-end console and PC games for the first time, it will also allow low-end smartphone users to play high-end mobile games without compromising on quality. graphics or performance.

Cloud gaming requires a consistent internet connection to provide a good experience. While some low-resource, slow-paced games may perform well on 4G, it’s clear that 5G or high-speed fiber is needed to truly enjoy the cloud gaming experience. Cloud games also depend on the underlying technology stack, network, and server components at every stage of content delivery. This means that companies and governments will have to make a lot of investments.

The report highlights the companies considered essential in the cloud gaming market: Tencent (Xianyou), Xbox (Cloud Gaming with Xbox Game Pass), Ubitus ‘(B2B cloud gaming solution), RemoteMyApp’ (B2B and Vortex .gg), Nvidia (GeForce Now) and Blacknut (B2B & B2C cloud gaming solution).

Tencent’s Xianyou cloud gaming platform launched in April 2020 and offers more than 100 games on mobile, PC and TV. Xianyou’s main goal is to deliver mobile games in the cloud, with WeChat and QQ login integration to provide a seamless experience for existing mobile gamers. Xianyou will offer a new controller created for mobile gamers to play console-type games.

“Companies that own multiple parts of the cloud gaming value chain will certainly have a competitive advantage,” said Cosmas Hanson. “There are many companies operating in Asia that are well positioned to be successful. The companies included in our ecosystem table are representative of each segment but do not constitute an exhaustive list. “


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