The document discusses the potential for hardcore mobile games in Indonesia. It notes that while smartphone penetration is currently only 23%, it is projected to reach 39.8% in the next 3 years, opening up a huge market of 38 million new mobile gamers. Currently casual games dominate the mobile games market in Indonesia. However, in the next 3 years the market is likely to see strong growth in hardcore games due to factors like an increasing demographic of male smartphone users aged 18-24, the rising ability to play hardcore games on higher-end smartphones, and improving financial card penetration that will enhance monetization abilities.
2. Indonesia: Biggest Potential Mobile Game
Market in Southeast Asia
WWW.GMGC.INFO/EN
Source: TechinAsia, onedevice
49%
15%
80%
36%
23%
87%Thailand Philippines Malaysia Vietnam Indonesia Singapore
Smartphone Penetration 2014
• Indonesia still has a
relatively low
smartphone
penetration at 23%
• Indonesia also has
the largest
population at 250
million
4. Hardcore Mobile Game Market Will Be
Influenced By 3 Factors
Hardcore
Gaming Market
for Mobile
Games
Ability to play
hardcore games
Willingness to play
Hardcore Games
Ability to
monetize
WWW.GMGC.INFO/EN
5. Analysis of Gamer Demographics of
Hardcore Mobile Games
Source: newzoo, appdata, Developers Magmic
WWW.GMGC.INFO/EN
Males aged 18-35 are the biggest consumers in terms of size of demographic
6. Demographics Show Relatively Young
Population, Perfect for Hardcore Games
Source: CIA World Factbook, Index Mundi
• The biggest population
bulge in Indonesia today is
between the ages of 10 to
19
• In 3 years time, we will see
a huge bulge in the
population from the 18 to
24 age range
• This is the audience that
developers should develop
for
• Indonesia’s demographics
are perfect for hardcore
games
WWW.GMGC.INFO/EN
7. Do Indonesian Mobile Gamers Have the
Ability to Play Hardcore Games?
Source: Markplus Insight, Mobile World Live
Low-End
Smartphones
• Smartfren
• Evercross
• Blackberry
• Nokia
Higher-End
Smartphones
• Xiaomi?
• Apple?
• Samsung?
• The current market
for Smartphones in
Indonesia is
dominated by low-
end models
• We are likely to see a
gradual move from
low-end
smartphones to
higher-end
smartphones
WWW.GMGC.INFO/EN
8. Monetization: Likely to Remain the Largest Problem
Source: Euromonitor
46,035
54,004
65,328
79,363
90,472
103,010
2009 2010 2011 2012 2013 2014
Number of Financial Cards in
Circulation ('000)
• Today, the
proportion of
Indonesians holding
financial cards is still
small.
• Credit card
penetration is at 1%
• Penetration of all
other financial cards
is at 20%
• There is a huge
potential for growth
in the future
WWW.GMGC.INFO/EN
9. Payment via Financial Cards Facilitates a Higher
Lifetime Value and Average Transaction Amount
Source: HALO (Digital)
48.75%
84.23% 88.81%
51.25%
15.77% 11.19%
2012 2013 2014
CHANGE IN
METHOD OF
PAYMENT FOR
MOBILE GAMES ON
THE HALO…
Financial Cards Prepaid Cards
Transaction values for high playing players on a selected hardcore game during the same period
WWW.GMGC.INFO/EN
10. In Indonesia Today, casual games rule….
•Gradual increase in smartphones
from lower end to higher end
models
•Increasing smartphone penetration
Ability to Play
Hardcore Mobile
Games
• High proportion of male
smartphone users between the
ages of 18 to 24 in next 3 years
Increasing
Demand for
Hardcore Games
• Improving Penetration of
Financial Cards
Ability to Pay for
Games
Huge
Potential
Market for
Hardcore Games
WWW.GMGC.INFO/EN
But in the next 3 years hardcore games are likely to see strong growth
Hinweis der Redaktion
Souces: TechinAsia, ondevice
We can see that the 3 major markets in Southeast Asia with good potential runway are clearly Indonesia, The Philippines and Vietnam. If there is one thing we have learnt from the smartphone boom in China and in Southeast Asia, rapidly increasing smartphone penetration leads to a huge increase in mobile gaming. So why Indonesia? Of all the larger ASEAN states, it has the highest population of 250 million as well as a very low smartphone penetration.
According to emarketer, this is projected to grow to 40% by 2017.
This means that in the next 3 years we will see about 38 million first time smartphone users in Indonesia. Which is a huge number of first time mobile gamers.
This information should fit into the picture of what most of us would expect. Young male gamers within the ages of 18 to 34 are the main demographic which are attracted to hardcore games.
Source: CIA World Factbook, Index Mundi
Contrast this with Indonesia’s population pyramid and we will see a huge bulge in the population, at precisely the 10-19 age range. Which means that in the next 3 years, many of these teenagers will move into the prime age range for hardcore games.
Sources: Markplus Insight and Mobile World Live
The demand for hardcore games will likely grow strongly due to demand side factors, mainly due to demographic reasons as well as the large number of first time smartphone users. However, the lack of payment options and will likely present a serious obstacle especially for hardcore games.
HALO Digital offers some interesting statistics correlating usage of financial cards to average spend per player. According to data tracking the Chinese market, the average monthly payment amount by users using financial cards is double that of those using prepaid cards. (4RMB vs. 2RMB). The lifetime value of a single user as segmented by users who use financial cards vs prepaid cards also shows a marked difference of 68RMB vs 30 RMB. (Source: Halo (Digital))