Puzzle Games: Comparing & Contrasting Eastern and Western Markets
Download PDFNov, 2021 Comparing & Contrasting
Eastern and Western Markets
Pangle x Newzoo:
Mobile Game Genre Report
© Newzoo 2021
focusing on , ,and .
Mobile game genres have evolved rapidly in the
past decade .From casual to core, many new
genres have emerged to meet the diverse
appetite of mobile gamers across the globe .As
a result, new marketing and monetization
mechanics have been created to maximize the
lifetime values (LTV) of games, such as mobile
ad techs and Battle Pass .
In these reports, we look at the top -performing
puzzle, role -playing, and arcade titles in
, , ,and and deep
dive into the key differences of these titles in
terms of , ,
,and strategies in the
West vs . in the East . We compare the
and of
these genre players in the four key markets .We
hope that Pangle and Newzoo’s joint genre
reports provide insightful information for game
developers and publishers to understand the
key differences in the Western and Eastern
markets and to achieve global success .
Mobile games are an important part of people’s
lives .In 2021 ,
, making mobile the biggest gaming
platform (by number of players) across the East
and West, thanks to the platform’s accessibility .
What’s more, mobile is also the largest gaming
segment by revenues .Newzoo forecasts that
the mobile gaming market will generate
(excluding
ad revenues), growing +4.4% year on year .
Nearly of the $90 .7 billion will be
generated by the regions .In fact,
mobile is the #1gaming platform by revenues
across all key Asian markets . In the West,
although console is bigger than mobile in terms
of revenues, mobile is the
toward 2024 .
To better understand the differences between
the Western and Eastern markets in terms of
market dynamics, consumer behaviors, and
opportunities, Pangle and Newzoo jointly
develop aseries of mobile game genre reports,
xxx
Introduction
2
of global games market
revenues will come from
mobile in 2021.
1. Overview of Puzzle Games
2. Deep Dive of Puzzle Games in Key Markets
3. About & Appendix
5
10
19
© Newzoo 2021
is the world’s biggest mobile puzzle
games market in terms of revenues,
accounting for of the global total in 2020.
Japan and China are the second -and third –
largest markets by revenues, respectively.
Many puzzle games are embracing the
with narrative and decorat ing being
the most popular. Nevertheless,
games still lead the top -grossing charts, in
both the West and East.
The monetization mixture of , , and
has become increasingly common in
the puzzle space. However, compared to popular
puzzle games in the West, titles focus
more on . They usually feature a deeper
economy, thanks to the focus on character
collection and progression and gacha.
Puzzle games in the West vs. in the East
4
1 2 3
© Newzoo 2021
Revenue and key market developments
© Newzoo 2021
, a F2P Match -3 game that is
remarkable throughout mobile game history .It
has now spun off into multiple franchise
installments and inspired a generation of other
variants .Candy Crush Saga remains one of the
most popular titles in the West .Later, more
Match -3 games were introduced featuring
various . (2016 )
and (2017 ) by Playrix combine
Match -3 with decoration elements .Inspired by
the success of the subgenre,
(2020 ) by Magic Tavern
further elaborates the game’s storyline with
fashion themes .
Other popular Match -3 variants include
, popularized by games
such as , ,and
.
is the newest popular Match -3 variant,
with titles such as and
from Gram Games (a Zynga studio)
landing in the top -grossing chart in the U.S.
At the early stage of video games in the 1980 s,
most classic games were puzzle games .The
core puzzle gameplay wa sto
.For example, players in
Atari’s guessing game enjoyed the
process of trial -and -error and world completion .
The tile -matching game tests spatial
recognition ability .Many of these classic puzzle
gameplays still influence today’s games .
The first game is recognized as ,
a 1994 ball -matching game, but the genre
gained mainstream attention with the arrival of
,the 2001 PopCap Games version for
PC browsers .
With the rising popularity of in the
late 2000 s, puzzle games were among the first
genres that migrated to the mobile platform .
The development of smartphones broke the
hardware boundaries to enable different game
mechanics such as .
One of the most well -known examples is
(2009 ).In 2012 ,King launched
Its history, development, and recent trends
6
Meanwhile, more and more
have
emerged .The Match -3 mechanic is the most
adopted puzzle element in mobile games, such
as the Japanese RPG (2012 )
by GungHo ,Small Giant’s
(2017 ), and the recent 4X strategy game
(2020 )by 37 Interactive .
Despite the increasing popularity of different
Match -3 variants, remains
popular in the West and East alike .Instead of
adding meta game elements, the new trending
puzzle game (2021 ) by Dream
Games chooses to design the core Match -3
gameplay and in-game economy creatively with
a light decoration element and clean user
interface .The success of Royal Match signals a
new direction for game developers —polishing
and innovating the core gameplay to stand out
in the competition .
© Newzoo 2021
The U.S. is the biggest market for the puzzle genre, followed by Japan and China
7
U.S.
Japan
China
Puzzle Games
Non -Puzzle Games
Global mobile puzzle game
revenues in 2020
Source: © Newzoo | 2021 Global Games Market Report
2020 TOTAL
Puzzle games vs. Non -puzzle games
© Newzoo 2021
Live -ops are key to increase player engagement and stickiness
8
z
Many “forever” puzzle mobile franchises had
,and thus when launched on mobile, there was already an
audience that recognized the name .For example, Candy Crush Saga and
Cookie Jam were first launched on Faceboo kas browser games .
In the West and East alike, is one of the most powerful
acquisition and retention tools . Early Western franchises leveraged
invites to encourage users to bring friends to games, while
Japan takes advantage of .Disney Tsum Tsum encourages LINE
invites by offering coins, gacha tickets, and characters as referral rewards .
Puzzle games leverage to acquire users, too .
Some marketing creatives have even been incorporated the popular
elements as minigames by publishers .
is another direction that puzzle game publishers are
exploring to expand the games’ reach, as seen in the recent collaboration
between Candy Crush Saga and Space Jam :A New Legacy .Property
Brothers :Home Design, as aspin -off mobile game of the reality television
show, took the IP advantage and became the new hit of puzzle games after
its release in 2019 .
z
is one of the most effective tools for retention .Short –
term and systems with friends or strangers, including
team -based leaderboards, constantly attract players back to the game .
have become the new norm for puzzle games .
For example, Royal Match features recurring King’s Cup in the game and
Royal League for players who have completed all levels .Candy Crush Saga
even launched its esports event All Stars Tournament in 2020 .
Some Match -3 games (e .g.,Anipop by Happy Elements in China) reward
players with by completing previous levels with full stars, and
players can earn extra in-game rewards by completing hidden levels .
What’s more, are increasingly critical to keeping an existing
audience engaged .For puzzle games, this often takes the form of
, ,and .In Japan, holding
from anime, manga, and
even other games is a common approach .In these events, players can
enjoy collaborated game content and get exclusive characters, by
completing the quests or through gacha, during a limited time period .
Meanwhile, is playing an increasingly important role in both
monetization and retention for puzzle games (see next slide) .
© Newzoo 2021
Implementing a mixture of in -app purchases, in -app advertising, and subscriptions
9
z
are still the major revenue stream for puzzle games .The
in-game economy for most puzzle games is and .
There are usually 1-2main currencies and direct purchase of one currency .
Match -3 games utilize pop -ups to turn players into payers when running
out of moves .
Recently, puzzle games have learned from core mobile games to add
as a .For example, Homescapes and Hay Day Pop
launched Puzzle Pass in 2020 .Royal Match features Royal Pass .Merge
Dragons! and Angry Birds 2Blast introduced their own passes, too .
Since mobile advertising became more common in 2014 , have
been adopted in an increasing number of puzzle games .For example,
Candy Crush players can get bonus spins by watching videos .
Playrix’s answer to Battle Pass: Puzzle Pass
© Newzoo 2021
Player demographics and top performing titles
© Newzoo 2021
Although puzzle games are
generally the most popular
across markets,
.Competitive
and immersive genres, such
as Battle Royale, are more
popular in the East than in
the West, where mobile
gamers tend to favor more
casual genres like puzzle and
arcade .In addition,
—like
Battle Royale —
,
showing how fast the market
has evolved in recent years .
In the East, mobile players tend to also enjoy competitive genres such as Battle Royale on mobile
Strategy Arcade Role -Playing Strategy
Casino Sports Simulation Simulation
Shooter Shooter Battle Royale Arcade
Arcade Strategy Adventure Battle Royale
Mobile game genres played in the past six months
Source: © Newzoo | Consumer Insights –Games & Esports | April 2021 11
© Newzoo 2021
Mobile puzzle gamers skew younger in the East where the majority also have higher (relative) education levels
Full -time employee
Unemployed
Full -time employee
Part -time employee
Full -time employee
Full -time homemaker
Full -time employee
Full -time homemaker
Low Mid High Low Mid High Low Mid High Low Mid High
10-20 21-35 36-50 51-65
Average:
10-20 21-35 36-50 51-65
Average:
10-20 21-35 36-50 51-65
Average:
10-20 21-35 36-50 51-65
Average:
Music Cooking Films & TVSeries Films & TVSeries Music Travel &Holidays Films & TVSeries Music VideoGames Films & TVSeries Travel &Holidays Music
Low Mid High Low Mid High Low Mid High Low Mid High
Source: © Newzoo | Consumer Insights –Games & Esports | April 2021 12
Across the key markets,
mobile puzzle players are
similar demographically ;they
skew female, are full -time
employees, and have a mid –
to -high income . Key
differences between the
West and East are that
.In
addition,
there,
and almost one -third have
video games as their favorite
hobby and interest .
© Newzoo 2021
In Japan and South Korea, role -playing games take the most spots among the top 50
Role -Playing 29
Strategy 6
Sports 4
Role -Playing 22
Strategy 5
Strategy 13
Role -Playing 7
Strategy 10
Casino,
Role -Playing 9
iOS & Google Play | 2020
13 Source: ©Newzoo | Newzoo Expert
© Newzoo 2021
While the Japanese market sees more local companies in puzzle games with LINE taking the lead
HQ
Puzzle Games Among Top 50 Grossing Games | iOS & Google Play | 2020
Source: ©Newzoo | Newzoo Expert 14
© Newzoo 2021
Match -3 games in Japan focus more on character collection and progression, creating opportunities for monetization
Candy Crush Saga Candy Crush Soda Saga Anipang 3 LINE PokoPoko LINE: Disney Tsum Tsum Yo-kai Watch Wibble Wobble
Garden – scapes Home – scapes Fishdom MatchingtonMansion Lily’s Garden Toon Blast Toy Blast Merge Dragons!
15 Source: ©Newzoo | Newzoo Expert | For details of Newzoo Games Taxonomy, please visit here .
16
is aJapanese mobile game developer that’s been making big waves in
the industry since they were established in 2014 .They came into the spotlight
when their smash hit gained worldwide acclaim .Before long, the puzzle
battle game was a breakout success, particularly in the U.S.and Asia, hitting
.The worldwide success
of the game caught the attention of the ,who chose Translimit as
the first -ever recipient of their game investment
fund in October of the same year .Now, Translimit has their sights set on the world
once again with their next hit game, .
We sat down with ,in charge of user acquisition and monetization, to
discuss the different strategies that the global game innovator’s adopts in the
Eastern and Western markets, and their tips and tricks to maximize performance
across the globe .
17
For both casual and hypercasual games, we mainly
use performance -based ads .We do this by setting
a specific ROAS (return on ad spend) target to
achieve for each bid, getting more conversion
value or revenue at the target ROAS set .
We believe that optimizing ads based on ROAS is
the optimal way to keep track and improve our UA
performance .We also use social media networks
and ad networks to further optimize our reach .
Our usual UA strategy follows a three -step
process .
1. The first step is an initial CPI (cost per install)
test in the U.S..For example, when we soft –
launched Puzzrama on Android, we aimed for
aCPI of $0.30 or less .As ageneral rule, we
only continue to develop apps that have aCPI
of $0.35 or less .
2. Once an app has passed the CPI test, we enter
the second stage .Here, we will run continuous
A/B tests and adjust the game until each user
views on average 8ads on Day 0(the first day
of installation) .We also optimize to reach aD1
retention rate of over 30 %.
3. We will then keep on improving the apps that
have passed these two stages and develop
them to strengthen acquisition around the
world .
During the initial stages of testing out the potential
of agame, we develop approximately 20 different
creatives to assess its possible performance .If it
has good initial performance and the game starts
to relatively scale, we increase the amount to
roughly 100 -200 creatives .Once the creatives
have done the rounds and we learn which ones
perform best, we cut the number down to about
three or four creatives .We then keep running
these final ads across each advertisement channel
and use them globally .
As for differences between countries, the creatives
are mostly the same for all regions, but the
wording of each ad has to be localized for their
specific country . We’ve found that the
xxxxxxxxxxxxxxxx
performance of acreative can drop by as much as
20 % without localized text .
From our experience, successful creatives have
three key features . They generally include
numbers, they keep text relatively short, and they
include words that deepen the user’s
understanding of the game .
Many creatives will have sub -par performance and
will be discarded .This is completely normal, so
don’t get discouraged .Just keep A/B testing .
Different countries require different degrees of UA
localization . The localization for each country
requires a different amount of man -hours and
resources depending on how important they are to
our overall UA strategy .Most of our creative
optimization and localization is centered on the
U.S.market .For example, since users in that
market tend to be more patriotic, ithelps to evoke
patriotic feelings by using their national flag in our
video creatives .
Annaka Tetsuya Planner & Director Translimit
Localization of both UA strategy and marketing creatives is important in achieving local success
© Newzoo 2021
18
The users’ tolerance level for advertisements is
very different . In the U.S., there’s very little
opposition to including in-game ads .Even ifwe set
the ad frequency to display an ad every 30
seconds, we’ve found that it doesn’t negatively
impact our retention .Ifyou do the same in Japan,
there will be negative responses from users .So, we
designed the interval between ads to be longer in
Japan .
In terms of ad formats, we’ve implemented a3:1
ratio between interstitial video ads and rewarded
videos, which is to say that for every 3interstitial
video ads, users get to watch arewarded video .
Our revenue is split 4:1between IAA and IAP
respectively, but the difference between the two
markets is very distinct .As mentioned earlier,
users in the U.S.are okay with watching high –
xxxxxxxxxx
frequency ads .On the flipside, in-app purchases
tend not to increase much .So, our monetization
strategy in the U.S.tends to be very IAA -focused .
As for Japan, we show roughly half the amount of
ads compared to the U.S.,but Japanese users tend
to be much more open to in-app purchasing .We’re
able to maintain aprofit thanks to the high user
spend in the region .
For example, Puzzrama has a function called
“contest,” which allows players to vote each others
best original creation .Amazing works are revealed
everyday .We believe that Japanese players are
often at the top of these rankings because of their
willingness to pay for additional functions, allowing
them to edit and beautify their creations .In
comparison, players from other countries seem to
mostly just enjoy the puzzles in the game, and
don’t participate in the contests as much .
Japanese players also tend to have longer gaming
sessions .
Revenue from rewarded video ads increased by
14%,and revenue from interstitial video ads went
xxxx
up by 17%.Pangle is characterized by many high –
eCPM ads and is widely considered an essential
network when distributing in-app ads all over
Japan .
Annaka Tetsuya Planner & Director Translimit
Monetization in the U.S. is more IAA -focused than in Japan thanks to the higher tolerance of in -game ads of American gamers
© Newzoo 2021
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© Newzoo 2021
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Pangle is the go -to -place for monetizing apps,
attracting users, and pushing boundaries of
creativity. Established as the leading mobile
advertising platform in Asia, Pangle enables global
app developers to maximize earnings through
exclusive TikTok For Business demand, and
advertisers to reach out to a massive audience.
www.pangleglobal.com
© Newzoo 2021 22
1
Maximize revenue via
In -app bidding
(support ironSource, MAX and Mopub)
Exclusive access to
TikTok For Business ad demand
Popular ad formats:
Rewarded/Interstitial video
ads/Native ads/Banner ads
UA -MO growth loop
support
2 3 4
1
In -app event optimization
(purchase, retention, etc.)
Algorithm driven ad tech Support playable ads with
built -in potential
Free playable production
and adaptation tools
2 3 4
© Newzoo 2021
Newzoo Games Taxonomy & Consumer Insights Terminology
© Newzoo 2021
Competitive contextMonetizationDimensionalityPerspectiveGame modesPlayer numberAvatar number
24
Endless RunnerArcade RoyaleReflexShoot/Beat ‘ Em Up Geo ARBoard GamesTraditional CardMahjongDiceEducationalBrain TrainingAction RPGMMORPGTactical RPGPuzzle RPGIdle RPGCollection RPGNarrative RPGJRPGMOBASurvival ArenaPlatformer
Arcade SportsRealistic SportsRealistic RacingArcade RacingKart RacingBuild & BattleTower DefenseAuto Battler Summon BattlerCard Battler4XReal -Time Strategy Grand StrategyTactical AssaultBattle SimulatorBattle RoyaleVehicular CombatClassic ShooterHero ShooterLoot ShooterArena ShooterHack and Slash
SurvivalAction -Adventure Story AdventureAdventure SandboxUser -Generated ContentMatch 3Puzzle & DecorateBubble ShooterWord GamesTriviaHidden ObjectsPhysics BasedRhythmDanceHC -Runner/Racing HC -Action HC -Simulation HC -Katamari HC -Puzzle HC –ASMR IdleParty Games
Puzzle -Platformer FightingRoguelikeTraditional CasinoMeta CasinoAdventure CasinoLifeTime ManagementTycoon ManagementMerge and BreedingCity BuilderRomanceSports ManagementFreestyleVehicle SimulatorCustomizationInteractive Story
AbstractCartoonAnimeStylized RealismHandicraftPixel ArtRealisticOther
ArcadeActionAdventureBattle ArenaCasinoEducationalExpression
FightingHyper CasualIdleMusicPlatformerPuzzleRacing
Role PlayingSandboxSimulationSportsStrategyTabletop
Source: ©Newzoo | Newzoo Expert | For details of Newzoo Games Taxonomy, please visit here .
Power -Ups (temporary) Deck BuildingTurn -based Units (controllable)Units (non -controllable) Tabletop / Thinking SportsCharacter CustomizationResource ManagementHarvesting/CollectingRelationship DevelopmentRealistic RepresentationResource ManagementHarvesting/CollectingRelationship DevelopmentRealistic RepresentationCharacter CollectingPersistent WorldProcedural level generationGrid PlacementCombo AttacksPuzzle SolvingTile Matching
CraftingArtistryLoot GachaCombatMeleeShootingStealthKatamariVehicular ControlPlatformingHypercasual –Tap or Hold Hypercasual –Swipe or DragHypercasual –Steer Character Progression (permanent)Character Progression (temporary)Skill/Talent treesClasses/Factions/RacesEvasion (Dodge/Parry)Permadeath
CasinoPokerSlotsSportsTricksRacingBreedingSimulationRhythmSelf -care NurturingFog -of-War LanesLevels/MapsOpen WorldGPS -Based TriviaBallCardsJump ScaresDialog TreesIdleBuilding
FantasyScience FictionContemporaryHistoricHorrorMysteryOther
© Newzoo 2021
Income and Education Brackets | Newzoo Consumer Insights – Games & Esports 2021
Yearly < $40,000 $40,000 -$75,000 $75,000
Yearly < £28,000 £28,000 –£49,000 £49,000 >
Yearly < ¥4,000,000 ¥4,000,000 -¥7,000,000 ¥7,000,000 >
Yearly < 20,000,000 KRW 20,000,000 –60,000,000 KRW 60,000,000 KRW >
Elementary school. Middle school, Incomplete
Secondary (high school) Education
Secondary (high school) Education, Some College,
University, Technical School, or Further Education,
Associate’s Degree
Vocational or Technical Degree, Bachelor’s Degree,
Master’s Degree, Doctoral or Professional Degree
Combined Junior and Infant School (Primary school)
/ Infant School, Junior School, Incomplete
Secondary Education (Below GCSE / O Level)
Secondary Education Completed (GCSE / O Level /
CSE or equivalent), Secondary Education
Completed (A Level or equivalent), Some Vocational
or Technical Qualifications
Vocational or Technical Qualifications Completed
(e.g., HND, NVQ), University Education Completed
(Undergraduate Degree e.g., BA, BSc), Postgraduate
Education Completed (e.g., Masters), Doctorate,
Post -doctorate or equivalent (Higher Degree)
,
,
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( :
), ( : ), ( :
), ( : )
25
Comparing & Contrasting
Eastern and Western Markets
Pangle x Newzoo:
Mobile Game Genre Report
