Social and Mobile Gaming Segments to be Dominated by Asia and Europe by 2016

An investment banking Service Company, Digi-Capital, has noted that the mobile and social gaming markets will be dominated by Asia and Europe by 2016. The domination will be both in terms of development teams and number of players.

According to the reports, by 2016, the revenue of Global Video games is expected to reach 83 billion dollars. Out of this huge revenue 57 per cent will be from mobile and social markets. The mobile and social network revenue was 49 per cent during 2012.

Europe and Asia are expected to reap big revenues by 2013 which would account to 87 per cent of the global revenue. China is likely to emerge as the biggest video gaming market with 32 per cent of the total revenue. South Korea and Japan is likely to rake in revenues of 12 and 10 per cent.

It is also said that the South Korean, Chinese and Japanese video gaming industries are coming out with cost efficient games and has operating margins up to 50 per cent. This also hints the investments of Asian businesses in foreign markets. The year 2012 saw numerous video game mergers and acquisitions. All major acquisitions were by Japanese, Chinese or South Korean buyers.

According to Tim Merkel, the Managing Director of Digi-Capital, both knowledge and relationship gaps prevail when it comes to mergers and acquisitions between the Asian and Western Markets. He also said that by 2016, games which are free-to-play and download will make an app revenue of about 55 per cent which is a grand 93 per cent of mobile downloads.