The MENA Games Market: From Sand to Stardom

Aug, 2023 nikopartners.com | Silicon Valley • Shanghai • London • Bangkok • Jakarta
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The MENA Games Market:
From Sand to Stardom
Next World Forum
Riyadh, KSA
August 30 -31, 2023
Lisa Cosmas Hanson, CEO and President

© Niko Partners | Photo Credit: Reuters, Luke Walker – FIFA
People are People
Social interactions
Teamwork
Community building
22

$1.8 billion
MENA -3 Games Revenue (2022)
67.4 million
MENA -3 Gamers (2022)
3 © Niko Partners | Source: MENA Games Market Report

4 © Niko Partners | Source: MENA Games Market Report

© Niko Partners | Report title 5 5 © Niko Partners | Source: MENA Games Market Report

Global Gaming
in Numbers
2022
MENA’s Gaming Industry on the Rise.
$175.7 billion
Global games revenue
3 billion
Total gamers worldwide
6 © Niko Partners

Think Globally, Act Locally
Language most
important localization
Arabic localization
challenge
Preserving MENA
Culture & Values
Local workforce training
by foreign companies
Homegrown MENA
Games & Gamedevs
of MENA gamers believe
Localization is important
7 © Niko Partners | Source: MENA Games Market Report

Increased Localization & Culturalization
8 © Niko Partners | Photo Credit: Ubisoft, Riot Games, Garena
Collaboration with
Egyptian singer
Mohamed Ramadan
Valorant Anthem
in Arabic
9th Century Baghdad
setting & Famous
Actors as VO
Poor localization
on Hitman 3
Rashid
(Street Fighter 6)
Battlefield 4’s in game
text isn’t Arabic!

PUBG in MENA
Case Study in Successful Localization
Most popular mobile game
by revenue (2022 & H1 2023)
Collaboration with MENA
celebrities & entertainment
platforms
PUBG is also the most
popular PC game
Gross revenue Downloads
KSA UAE Egypt
$50.2
million
$39.6
million
$6.8
million
2.1
million
0.7
million
5.3
million
9 © Niko Partners | Source: MENA Games Market Report

Public Sector Investment &
Government Support
$37.8 billion
Investment
Gaming companies
250
home -grown
games to become
top 300
30+
Strategic Growth
number of esports
athletes per capita
Top 3
esports event
host country
#1
10 © Niko Partners | Source: MENA Games Market Report

Building a Game Company Portfolio
Sixth largest M&A deal High -profile portfolio
11 © Niko Partners | Source: MENA Games Market Report

Esports in KSA and MENA 2022
esports viewers
31.2 million
esports revenue
$48.9 million
MENA gamers
engage with esports
73%
in Riyadh
esports city
$500m
$15.9 million
combined prize pool of PC
esports tournament in MENA
total prize pool
across all platforms
79.3%
$45 million
prize pool
(2023)
12 © Niko Partners | Source: MENA Games Market Report

13 13 © Niko Partners | Source: Esports Charts
Esports Hours Watched

Rise of MENA
Esports Stars
© Niko Partners | Source: MENA Games Market Report
EVO Champion
Fortnite champion CS:GO WEC Entry
14
Team Falcons successes

15 15 © Niko Partners | Source: Streams Charts
Rise of Arabic – Speaking Influencers & Streamers

Pandemic led to
rise of online
social gaming
Internet cafes as
socializing sites
Voice chat used
by gamers
Gaming as
socializing
platform
Social Gaming in MENA
16
58.8%
Gamers age 12 -18
48.7%
Gamers age 19 -24
88.6%
16 © Niko Partners | Source: MENA Games Market Report

Female Gamers in KSA
Female Gamers
in MENA
32.6%
37.3%
32.2%
28.2%
KSA
UAE
Egypt
of all
MENA
gamers
In Asia
incl. China
37%
Use social media to get
information on gaming
53%
of female
MENA
gamers
Female game
dev event
Women -only
gaming lounge
Female game dev
academy
First Saudi female
to win FIFA 20
Najd Fahd
Events & Partnerships
Creating growth & safe
space for women
17 © Niko Partners | Source: MENA Games Market Report

China’s Market – A Benchmark
18 © Niko Partners | Source: MENA Games Market Report
Games revenue
Mobile
PC
Console
$30.1
billion
$14.2
billion
$1.18
billion
Gamers
640.6
million
322
million
16.7
million
Of revenue
worldwide
Gaming time limit
on children
Official licenses
by NPPA
32% 37% 3%

19
Chinese Fans Go Wild
For Esports Victories
• EDward Gaming won Worlds 2021
and it was as though every person in
China was watching.
• This can be the path in KSA and
other markets too.
• Fans drive engagement,
engagement drives sponsors,
sponsors drive sales, sales drive a
game’s longevity and esports
spillover sectors.
19 © Niko Partners

PUBG Mobile total revenue
has surpassed Revenge of
the Sultans
More Chinese companies
succeed in MENA
#1 on the top grossing in KSA,
UAE, Kuwait
ONEMT made it to the top 20
highest -earning Chinese
companies from overseas markets
It became a successful case
study for other Chinese
companies looking to thrive
in MENA
Conquer came to MENA
Most popular video game
for many years.
Still popular in Egypt:
20.8%
57.7%
YoY growth from Egypt
YoY growth in MENA in 2022*
Timeline of Chinese Games in MENA
2009 2015 2018
20 © Niko Partners | Source: MENA Games Market Report | *2021 Niko Partners Survey, NetDragon Financial Report

KSA – China relations
PIF’s Investment in VSPN MCIT -SAFCSP partnership to grow domestic industry
Investment from Chinese companies
© Niko Partners | Source: Savvy, 21

Other Asian Markets to Follow
2022 Revenue and General Summary
Mature Markets | Established Game Industry
Emerging Market | Growing Game Industry
22 © Niko Partners
More diverse gaming
platforms
Stable regulations
More older gamers
Mobile game -first
Regulatory changes
More younger gamers
$18 B Japan
Korea
Chinese Taipei
$9.8 B
$1.9 B
Southeast Asia
India
$5.4 B
$705 M

Image placeholder
Talent will build
the industry
Experienced
companies,
Incubators,
Education
Programs and
more
© Niko Partners | Source: MENA Games Market Report 23

Thank You
Terima kasih
Salamat
Cảm ơn anh
Terima kasih
Cảm ơn anh
Salamat
24 © Niko Partners | Photo Credit: Hoyoverse , Nintendo

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