Gaming is massive in China, and at least one market-research company is opening an office to get closer to the region.
Newzoo, a data analysis company focused on gaming, revealed today that it has opened a new branch in Shanghai. The company does work with studios through Southeast Asia, but it is particularly interested in building a stronger relationship with its clients in China. That makes sense, as that market is growing fast. Chinese gamers spent $13 billion in 2013, and the country will likely generate a lot more than that this year. The country spends most of its gaming cash on client-based PC games like World of Warcraft and League of Legends, but it also has a fast-growing mobile sector. As Newzoo points out, if China keeps growing at its current pace, it will end up as a bigger market than the United States.
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“We are very excited to start our first international office in Shanghai,” Newzoo’s vice president of business development Wybe Schutte said. “In recent years, Newzoo has become a well-known brand in Asia. At the same time, we realize that a local presence is required to optimize our service towards our Asian clients and take away every threshold for companies seeking to work with us. Of course, it will also help us to expand our network of media and data partners in the region.”
China is also finally welcoming console gaming for the first time in 14 years. Microsoft already launched the Xbox One in the country, and Sony and Nintendo are looking to bring their new systems into the market.
Beyond China, Newzoo will also do first-hand research in Thailand, Vietnam, Malaysia, Indonesia, Singapore, and the Philippines. The 550 million people in those nations are on pace to spend $1 billion on games this year, according to Newzoo. That figure should also continue to grow as more and more consumers in Southeast Asia adopt smartphones.
“Over recent years, Southeast Asia has steadily risen in priority for our clients,” said Schutte. “We have waited to research this very diverse region in full depth until growth started to accelerate and that moment is now. Our clients all have a global outlook and want to be able to benchmark markets in Southeast Asia with growth opportunities in other continents. Adding six Southeast Asian countries to our existing primary research portfolio of nineteen countries allows them to do exactly that.”