Gap closing between Emerging and Western Game markets

Online and Mobile Gaming Put Russia, Brazil and Mexico in Same League as EU markets.
47% of 35M Brazilian Gamers Spends Money on Games
Online and Mobile Spending on Games Passes 50% Mark in US and EU markets

AMSTERDAM, 28 April 2011 – Fresh results from the 2011 National Gamers Surveys in Brazil, Russia, Mexico, Spain, US and key EU countries finally reveal game behaviour and spending of countries seen as low-priority markets for a large number of years. The uptake of online and mobile gaming has pushed the number of players, as well as “payers”, up to numbers that compare to major European markets. The number of people aged between 10 and 65 that actively play games range from 16 million in Mexico to 38 million in Russia with Brazil just behind Russia with 35 million gamers. Comparable to Western countries, an average of 50% of these consumers actually spends money on games. The research also revealed that more than two-thirds of the total game budget is spent directly online. For the first time, spending on online, download and mobile games has passed total retail boxed sales in Western countries.

Trends in Emerging Markets
Internet penetration and active use in Brazil and Russia is relatively low, but growing at an enormous pace. When zooming in on the active internet population, being 46 million in Brazil as well as Russia, at least 75% plays games. Amongst these people, more time is spent on playing games than watching TV: on average 11 hours per week. About half of these people, 47% for Brazil and 53% for Russia, also spends money doing so, pushing the size of these markets next to major European countries. More than two-thirds is spent on online and mobile games that, in principle, are free-to-play. For instance, 76% of Russians and 88% of Brazilians that spend money on MMOs, do so by buying virtual items.

(High resolution graph is available here )

Peter Warman, CEO and co-founder of Newzoo, adds: “Everyone in the games industry has a gutt feeling that the new online and mobile free-to-play business models are accelerating growth in Emerging Markets. Not only in number of players but also in money spent. It is exciting to finally see concrete numbers on these markets and being able to benchmark these with Western countries as well as zoom in on who is actually spending and what they are buying. Over the past weeks we have provided our launch clients online access to the data and I can say they are just as excited as I am.”

Trends in Western Markets
In general, the number of people playing games as well as the total money spent has not changed much since 2010. Major changes can be seen in time spent on games, showing a rise of 50 to 100% in Europe, gradually catching up with the US. Time and budget is spread amongst more different platforms. Also, spending on online, mobile and downloaded games now takes at least half of the consumers games budget. MMO games already take around 10% of the total wallet. The use of virtual currency has become mainstream with an average of 80% of online spenders stating this is the predominant way they spend money. Only 15% of all gamers has ever bought Facebook credits.

2011 National Gamers Survey Data
The 2011 series of National Gamers Surveys involves more than 20,000 respondents, selected to be representative of each nations’ population (with internet access) in terms of age, gender, education, income and geography, between 10 and 65 years old. Newzoo offers online interactive access to the data on a subscription basis. Clients already include: EA, Gate2Shop, Blizzard, Incomm, PopCap, RTL Group, RealGames, PaySafeCard, WarnerBros. GlobalCollect is launch sponsor of the surveys in US, BR, MEX, ES, RU as well as a new series of surveys (June 2011) that will look at Asian markets (incl. China, Korea). More

Free high-level data and in-depth webinars
- Fresh high-level datapoints will be shared through Newzoo’s Today’s Gamers LinkedIn group as well as the Newzoo website.
- Two new groups have been specifically set up around Emerging Markets and Game Monetization by launch sponsor GlobalCollect who will also organize in-depth webinars on these topics.

About Newzoo
Newzoo is an international market research firm completely focused on the games industry. Newzoo aims to provide the best independent consumer market data across all game platforms and business models. Newzoo also operates the global B2B portal and publishes the bi-annual Games Industry Black Book. Clients include Codemasters, RealGames/Zylom, Nexon, Frogster, France Telecom, RTL Group, ShandaGames, Microsoft,, Gamania.

Peter Warman
CEO & co-founder Newzoo
+31 (0)20 6635816

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