Introduction
Since Cheetah Global Lab published its “Rankings of Chinese Apps and Games Abroad” in early 2016, how have Chinese game publishers fared in various overseas markets? What kinds of Chinese games have found success abroad? What types of games are suitable for overseas markets? Using data from Cheetah Mobile’s big data platform Libra, which covers over 50 countries and regions, Cheetah Global Lab aims to answer these questions from multiple perspectives.
I. Action Games Can Effectively Break Through Cultural Barriers
(Chinese Game Publishers: includes HK and Taiwan)
2016 was a year when Chinese games truly went abroad. A total of 84 games from Chinese publishers made it into the Top 1,000 rankings globally, compared with 47 last year. This represents an increase of almost 80% year-over-year, indicating that Chinese games are growing in popularity abroad.
In terms of overall volume, however, the number of Chinese games published abroad remains relatively low. Overseas markets are dominated by European and American publishers, while the small but upward trending number of Chinese games abroad represents strong potential growth.
Cheetah Global Lab has ranked all games on the global top 1,000 list based on their active penetration rates worldwide.
Of the 15 categories of Chinese games that made it into the Top 1,000, action games have led the way, largely because they do not require much effort to localize and translate, thus bypassing cultural obstacles. The ease of transition to overseas markets indicates that action games are relatively more suitable for export, and they possess a higher chance of success outside of China.
II. Going Abroad in Emerging Markets
Cheetah Global Lab has selected Chinese games that made it into the top 100 leaderboard in the US, Russia, India, Indonesia, Brazil, and Vietnam to analyze the success of these games in relation to the unique characteristics of key global markets. This analysis aims to assist companies looking to expand into these markets with their strategic planning.
According to the Cheetah Global Lab database, Chinese games are performing noticeably better in Indonesia, Brazil, and India, and it’s easy to see the similarities between these markets.
First of all, all three are key emerging markets—Brazil and India are both BRIC nations, while Indonesia boasts the largest economy in Southeast Asia. India and Indonesia are still experiencing high rates of economic growth, and while Brazil’s GDP growth has slowed in recent years, it remains the largest economy in Latin America. More importantly, the mobile internet industry is growing rapidly in all three countries, with significant government investment and policy support. Firms looking to venture overseas will find these markets rife with opportunity and potential for vast returns.
Additionally, these countries are benefiting from a “demographic dividend”: India’s 1.27 billion people make it the second largest population in the world, while Indonesia is 4th at 253 million, and Brazil is 5th at 202 million. The number of young mobile users in these countries is rapidly increasing. Companies entering these markets will reap the rewards of investing in both the future and the present.
Thus, for Chinese companies looking abroad, these emerging markets enjoying a “demographic dividend” should be their first choice.
Below, we’ll examine data showing how Chinese games are performing in the US, Russia, India, Indonesia, Brazil, and Vietnam.
United States
The US is the First Choice for Casual Games Going Abroad
In 2015, the US mobile game market was valued at approximately USD 6.3 billion, the second largest in the world after China. Mobile data infrastructure is well developed, and smartphone penetration is relatively high, while the gaming market is sophisticated with excellent copyright protection. This makes the US one of the most mature mobile gaming markets in the world.
According to data from Baijing Apps, 50% of American gamers play between 1 to 4 hours of mobile games each week, averaging about 10-30 minutes per day. Americans play games to pass the time, which is why the US is the casual gaming capital of the world.
Five Chinese games made the US Top 100, two of which represent the casual gaming genre.
Rolling Sky Screenshots
Rolling Sky is a casual game from Cheetah Mobile that allows players to tap on the screen to direct the movement of a ball through various obstacles, earning points and progressing through different levels.
Crossy Road Screenshots
Crossy Road is a similar game developed by Yodo1. Players direct pixelated cartoon characters through obstacles and across busy roads to earn points.
The two games are both casual in nature and appeal to a mass market demographic. Therefore, Cheetah Global Lab believes that if Chinese game publishers want to enter the US market, the casual gaming segment should be prioritized.
Russia
In Russia, Games that Induce Excitement Perform Better
As a country spanning Europe and Asia, the Russian mobile gaming market has unique characteristics. According to data from mobile analytics platform Flurry, the Russian mobile gaming market will reach USD 707 million by the end of 2016, with average daily gaming time reaching 40.8 minutes per user.
In Russia, 8 Chinese titles reached the Top 100. Games with exciting and thrilling elements tend to perform better in Russia, like these two Chinese games.
Castle Clash Screenshots
Castle Clash is a strategy game developed by IGG that is similar to Clash of Clans, with stylistic differences. Players have summed up the top 10 strengths and weaknesses of each of the two games, indicating that Castle Clash and Clash of Clans target the same demographic. Currently, Clash of Clans sits at 3rd place on the Russian Top 100 leaderboard, while Castle Clash ranks 25th, the second strategy game to be well-received by Russian gamers.
Badland 2 Screenshot
Badland 2 is an adventure game with puzzle features designed by Frogmind and published by Cheetah Mobile. Players navigate a little black creature through the woods, exploring a beautiful yet perilous world while dodging obstacles and surviving as long as possible. The excitement and thrill of this experience is comparable to games with a fighting or military theme.
If Chinese game publishers want to enter the Russian market, they may consider adding elements of warfare or other exciting aspects to the gaming experience to achieve success.
India
Indians Love Sports
In India, internet penetration has largely been driven by mobile internet growth. This means that the Indian mobile gaming market is full of opportunities. There are 11 Chinese games in India’s Top 100.
India boasts the world’s most fervent cricket fans, but this love of sports extends beyond cricket. According to data from Cheetah Global Lab, of the 10 sports games in India’s Top 100, two are from Chinese publishers.
Archery Master Screenshots
Archery Master is an archery-themed game from Doodle Mobile, allowing players to control the direction and power of the bow when shooting at a target. The realism of the game extends to wind and other factors, providing an immersive experience.
Pool Billiards Pro Screenshots
Another game from Doodle Mobile is Pool Billiards Pro, where players control the angle and power of the cue, simulating a real pool game. The game features realistic 3D graphics with both PVP and PVE modes, as well as multiplayer online play.
From Left: Racing Moto, City Racing 3D, and Bike Racing 3D
Sports games are very popular in India, which is reflected in other categories as well. India’s Top 100 includes three racing titles: Racing Moto, City Racing 3D, and Bike Racing 3D, which can also be considered sports games.
All five titles share the ease and simplicity of gameplay. Local Indian game publishers explain that, because Indians have skipped the eras of console, PC, and browser-based games straight to mobile, Indian gamers may struggle with sophisticated gameplay, such as that found in many Chinese ARPGs, which feature detailed character customization. The diversity of ethnicities, languages, and religions in India implies that relatively complicated games will face challenges.
Thus, Chinese game publishers looking to India should simplify gameplay and incorporate sports elements to succeed.
Brazil
Beautiful Visuals Can Attract the Brazilian Gamer
According to data from eMarketer, there are nearly 48.6 million mobile gamers in Brazil, almost a quarter of the total population, with female gamers (52.6%) outnumbering male gamers (47.4%). As of 2015, the mobile gaming market reached USD 330 million, ranking 11th globally and 1st in Latin America. Brazilian gamers have shown a willingness to spend money on games, with ARPU reaching USD 70, representing a potential gold mine for gaming companies.
Brazil is also a multi-cultural society, with a wide array of interests in different types of games. Ten Chinese games made it into Brazil’s Top 100, representing eight different categories.
Of the Chinese games in the rankings, the most eye-catching is Legacy of Discord: Furious Wings from GTarcade. It is the only ARPG on the list and Brazil’s most popular ARPG. The game was designed for the EU/US market and currently does not have a Chinese version.
Character Customization Screen in Legacy of Discord: Furious Wings
Legacy of Discord: Furious Wings is the most visually appealing game on the Top 100, with beautifully designed characters and battlefields. These visuals have attracted a large number of dedicated Brazilian fans. The game is unique in its sophisticated graphics.
Although Brazil presents opportunities for mobile game publishers, Chinese firms must overcome payment obstacles in the country. In Brazil, cash and bank transfers are the primary forms of payment due to the challenging process of applying for a credit card. Additionally, local distributors take a relatively high percentage of revenue, which, combined with the high tax rate, poses significant challenges for Chinese firms. Before entering the Brazilian market, Chinese game publishers should be prepared for these barriers.
Indonesia
Investing in Indonesia’s Active Youth is a Path to Success
According to data from Niko, while the mobile gaming market reached only USD 11 million in 2013, there were already 24 million mobile gamers in the country. In Indonesia, free-to-play games with in-game purchases are very popular.
Indonesia is highly receptive to Chinese games, with 98 Chinese games in the Top 1,000, and 12 Chinese games in the Top 100.
Crisis Action has achieved remarkable success in Indonesia, likely due to the country’s large population and significant proportion of young gamers.
Crisis Action is a first-person shooter title from HERO Game, claiming to be the world’s first 3D FPS made for e-sports. The excitement and thrill of urban warfare appeals to young Indonesian gamers, while incorporating e-sports elements such as encouraging players to form clans and work together. HERO Games has also organized various online and offline tournaments with substantial prize pools, raising the profile of Crisis Action.
Crisis Action has reached 23rd on Indonesia’s Top 100, becoming the country’s favorite action game.
Chinese game publishers looking to Indonesia should capitalize on the youth market by introducing stimulating games that appeal to young gamers.
Vietnam
Vietnamese Love Casual and Strategy Games
As neighboring countries, Vietnam is the most similar to China among Southeast Asian nations. In terms of user behavior, Vietnamese gamers share much in common with Chinese gamers. However, due to the country being relatively closed-off and having a low average level of English, European and American games are not popular in Vietnam.
Overall, Vietnam is a land of casual games, highlighted by the popularity of Flappy Bird, which originated from Vietnam. According to Cheetah Global Lab, 23 of the Top 100 games in Vietnam are casual games. Eight Chinese games have made their way into Vietnam’s Top 100, two of which are casual games that have performed well.
Fishing Diary Screenshot
Fishing Diary is from Chinese game publisher DroidHen, while Bubble Shooter is released by Candy Bubble Studio. Similar to popular casual games in the US, these two titles feature simple screen-tapping gameplay, suitable for killing time. The simplicity of gameplay also means that intensive localization is not required, smoothing the transition to the Vietnamese market.
In addition to casual games, Vietnamese gamers have shown a strong appetite for strategy games, which is the second most popular genre. According to data from Cheetah Global Lab, there are six strategy titles in Vietnam’s Top 100, including Castle Clash and Lords Mobile from IGG. Both titles have maintained high weekly opening rates and sustained growth in active users.
In addition to selecting the category of game to launch in Vietnam, Chinese game publishers must navigate strict industry regulations, such as a 6 to 9-month application process for a game publishing license. The Vietnamese government has also implemented more regulations for the mobile gaming industry compared to China. Companies looking to enter Vietnam must first understand all relevant regulations.
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