East Asia Video Game Market to Experience 2.3% Downturn in 2025

A recent study forecasts a decline in the East Asian video game market for 2025, citing global challenges impacting Japan and South Korea. The report, released by Niko Partners on July 29, predicts a 2.3% decline in the East Asia video game market, which encompasses Japan and South Korea, in 2025. Having tracked these markets for eight years, Niko Partners' East Asia Market Model and Five-Year Forecast indicates that the region generated $29.1 billion in gaming revenue in 2024, marking a 3.1% year-over-year decrease, and is expected to slightly decline to $28.5 billion in 2025. This decline is attributed to a combination of factors, including weakened currencies against the US dollar and an economic slowdown resulting from ongoing global trade issues. However, the market is projected to recover in 2026 and grow to $30.3 billion by 2029, with a compound annual growth rate of 0.8% over five years. The average revenue per user in Japan is expected to reach $21.82, while in South Korea, it is predicted to reach $30.77, the highest among all Asian markets tracked by Niko Partners. Furthermore, the report forecasts a 1.3% growth in the number of gamers in East Asia in 2025, reaching 98.5 million, with the gamer population expected to reach 101.7 million by 2029, representing a 0.9% five-year compound annual growth rate. In addition to revenue projections, the report provides insights into gamer demographics in the East Asian market. Notably, 46.6% of Japanese gamers and 37.8% of Korean gamers watch gaming videos or livestream content. The report also highlights the consistent dominance of RPG titles for PC and mobile in the East Asian market, although Korean players tend to prefer multiplayer online RPGs, whereas Japanese players favor single-player RPGs.