The survey of the Russian game industry in 2019
The enormous profits and increasing viewership have turned modern games and e-sports into a major form of entertainment in the 21st century. Currently, the global game industry is one of the main drivers of the digital content market.
Russia’s position in the global video game market
Newzoo’s report shows that by the end of 2018, Russia was ranked 11th in terms of revenue generated by the global game industry. The actual revenue of the Russian game market met the expectations of the company, amounting to $1.657 billion, which was close to the expected revenue of $1.7 billion.
The majority of PC gamers in Russia are males, constituting 60% of the player base, whereas mobile games are more popular among females, who make up 46% of the gaming audience.
The Market for PC Games in Russia
The Russian PC gaming market generated $736 million in revenue in 2018, with only five countries, namely China, the USA, Japan, South Korea, and Germany surpassing its annual spend.
Despite a weakened ruble, the market grew by 9% in dollar terms. However, there is a significant revenue gap between the first and sixth places, with the Chinese PC game market generating $7.4 billion in 2018.
Free-to-play games were responsible for over half of the revenue, amounting to $456 million, and had a growth rate of 13%, outpacing the overall platform growth.
The top profitable free-to-play PC games in Russia are:
- World of Tanks;
- Fortnite;
- Dota 2;
- World of Warships;
- Hearthstone.
In 2018, the most popular genres in Russia were pay-to-play and free-to-play shooters, followed by free-to-play role-playing games and MOBAs (such as Dota 2 and League of Legends).
The Mobile Game Market in Russia
According to Alexey Vstavskiy, a member of App Annie, Russians spent $517 million on mobile games in 2018 in terms of consumption spending, not the amounts collected by developers from stores. The average mobile game market dynamics worldwide is around 15%, while the Russian market showed a 25% increase in 2018.
In terms of mobile game revenues, Russia ranked 12th worldwide in 2018, accounting for less than 1% of the global market (including iOS, Google Play, and third-party Android services), as noted by Vstavskiy.
The number of active mobile game users in Russia is 47.2 million, and according to Statista, this number is expected to grow due to the increasing popularity of smartphones and mobile internet. Furthermore, the age brackets for this segment are expanding, with 71% of children aged 3 to 10 playing mobile games. Many parents encourage games with developmental content and even play them together with their children.
The age group of 25-35 is expected to be the highest-paying segment, while gamers under 24 years old account for up to 30% of profits. The majority of payments are made within the first few days after installing an app.
Although women log in more frequently, men are more likely to pay for game content, with 48% of men and only 32% of women being willing to pay.
Russian gamers have a high demand for localization. According to a study by Allcorrect Games, most gamers prefer fully localized games (including in-game texts and voice acting) or partially localized games (including in-game texts and subtitles).
The highest-earning developers in the Russian market consist of companies from diverse countries including Israel, Finland, Lithuania, Turkey, and China. Playrix, a Russian-based company with its headquarters in Ireland, ranks among the top 10 developers, and is also placed at 32 on the global list of mobile game developers.
App Annie has listed the top ten major companies in mobile game development in the Russian market as of July 2018:
- Playrix
- Playkot
- TAPCLAP
- RS Technologies
- Kefir
- Pixonic
- Nekki
- Incrdbl
- Overmobile
- ZeptoLab
The console game market in Russia
M.Video-Eldorado Group, a Russian retailer of electronics and household appliances, announced on April 8, 2019, the results of the console and PC game retail market in 2018. In total, Russians bought nearly 2.2 million physical copies, amounting to almost 4.5 billion rubles, which represents a 5% increase in units and a 13% increase in cash compared to the previous year.
Analysts attribute the growth to the popularity of games for PS4, Xbox One, and Nintendo Switch, which accounted for 80% of units and 90% of cash. Demand for console games alone increased by 13% in units and 16% in cash, reaching 2.1 million units and 4.4 billion rubles respectively. As the console market grew, the PC game share fell to 5%. M.Video and Eldorado’s combined share of video game retail sales exceeded 50% in both cash and units.
PlayStation 4 games dominate the market, accounting for nearly 70% of the console game market in units and 75% in cash, with demand for them growing by 30%.
The sales of Nintendo Switch games have experienced significant growth, with a 2.5-fold increase in units sold and a 2.2-fold increase in revenue. Meanwhile, Xbox One games have also seen positive trends with a 16% increase in units sold and a 23% increase in revenue. However, the demand for Xbox One software has declined by 45%.
Sony’s last-gen platform has remained popular due to a wide selection of high-quality titles and the release of exclusive games such as God of War, Detroit: Become Human, and Spider-Man. At the end of the year, three games from Sony made it into the Top 5 best-sellers, with Electronic Arts’ FIFA 18 taking the top spot and the latest release, FIFA 19, ranking fifth, surpassing the much-anticipated Red Dead Redemption 2.
The sales of Nintendo Switch games exhibited impressive growth rates, increasing by 2.5 times in units and 2.2 times in cash. The share of console games in the market reached 7% in cash just over a year after the console’s release in Russia. Nintendo Switch stands out with its unique game franchises, exclusive Nintendo Labo Kits, as well as amiibo interactive figurines and cards.
M.Video-Eldorado reported that Xbox One games continued to exhibit growth in double digits. Over the course of the year, Russians bought 16% more units and 23% more in cash for the Microsoft last-generation game console. However, the demand for Xbox One software declined by 45%.
In 2018, Wargaming released data on the amount of money Russian gamers spent on free-to-play console games, reporting a segment turnover of $59.6 million, which was a 19% increase from the previous year.
The company also disclosed the most popular console free-to-play games among Russians in 2018:
- Fortnite
- World of Tanks: Mercenaries
- Brawhalla
- SMITE
- War Thunder
Conclusion
The Russian market is highly attractive to foreign game developers due to several reasons. Firstly, there is a large potential audience of around 65 million online gamers in Russia. Additionally, there is a lack of national game content available, which makes users more willing to try out foreign games.
If you’re a game developer looking to promote your game and unsure about where to start, consider targeting the Russian market. Our experts can provide insights on the potential of entering the market, as well as help you develop a marketing strategy to engage gamers in the largest country in the world.