Japan’s Mobile Gaming Revenue Increased 35% Year Over Year

App Annie’s Latest Study Says That Japan’s Mobile Gaming Revenue Increases 35% Year Over Year. We Provide Two Key Takeaways For Foreign Developers For The Next 12 Months.

App Annie recently posted a study on the tails of Tokyo Games Show. In partnership with Dentsu, they show that Japan’s Mobile Gaming Revenue has increased by 35% year over year ending in June 2017.

 

We distilled their report into two main takeaways for foreign developers. For the full report, head to App Annie.

 

Games Published By Japanese Headquartered Companies Account for 80% of Japan’s Mobile Gaming Revenue

 

For comparison, in the US, American headquartered companies only account for 50% of American mobile gaming revenue. This shows how difficult it can be for foreign developers to launch their game in Japan. We agree with App Annie that strong localization is essential, especially if you don’t have a Japanese branch.

 

We also see the potential for foreign developers to partner with local publishers (or us if you want to self-publish). You can bring your best practices from overseas and compete with local games using new tactics that haven’t reached scale in Japan, such as in ASO or ad tech.

 

RPG and Casual Games Still Dominate But Account For Less of Japan’s Mobile Gaming Revenue

Japan's Mobile Gaming Revenue

Year over year, the RPG and Casual Games category has been trending down in terms of revenue in Japan. This is a huge opportunity for non-RPG, non-casual developers as these two categories are where Japanese publishers have concentrated their resources. We still believe that incorporating some sort of RPG element into your game is key to win over mid-core gamers and increase their engagement.

 

Also, notice how dominant the “Other” Category was for these past 12 months. Other, meaning any game that’s not RPG, Casual, Strategy, Sports, or Date Sims. Again, this is a huge chance for indie and foreign developers whose games are unique and interesting. We predict that this trend will continue and with the recent changes in the iOS 11 App Store, discoverability of foreign indie games will increase, leading to an increase in appetite for non-traditional games in Japan.

 

 

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