Niko Partners: Japan and South Korea Markets in 2025
Two years of decline, but the future will be brighter.
Market figures
In 2024, the combined markets of Japan and South Korea (Niko Partners refers to them as "East Asia") generated $29.1 billion (-3.1% YoY). In 2025, the decline will continue to $28.5 billion (-2.3% YoY). The reasons include both external factors (local currency exchange rates vs the dollar) and the overall cooling of the games industry.
Despite the decline, Niko Partners expects the markets to reach $30.3 billion by the end of 2029. The average annual growth rate is projected at 0.8%.
The number of players in East Asian countries will grow by 1.3% in 2025 to 98.4 million. The forecast is positive up to 2029, with the player base expected to reach 101.7 million (CAGR – 0.9%).
ARPU for Japanese players: $21.82. South Korean ARPU is higher at $30.77. This is the highest ARPU among all Asian markets researched by Niko Partners.
User preferences
Niko Partners surveyed 1,090 players from Japan and South Korea.
67.8% of Japanese players prefer anime-style games.
The main motivations for making purchases among local users are to enhance their enjoyment of the game (51%) or to progress faster (30%).
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Hardcore South Korean players are irritated by inaccurate cultural references, poor localization, and stereotypical characters in games.
Esports tournaments are an effective marketing channel in South Korea, watched by 24.4% of men. Fewer women are interested in esports—only 11.4% watch tournaments.
46.6% of Japanese players and 37.8% of South Korean gamers watch streams and game-related content.
Users from East Asian countries are the least likely to make purchases through web shops.