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WHY NOW?

There are two key drivers behind the tremendous growth of the Russian online games market: the strength of the Russian economy caused by strong domestic consumption, and a growing demand for new technology. Today, the country has the highest percentage of social media users in the world and has adopted smartphones at a staggering pace: according to our friends at Nielsen, smartphone ownership today stands at 37%, up from 5% in 2009.

New mobile devices and Russia’s speedy Internet connection (18.72Mbps) help build the momentum. For one, the crown jewel of the Russian games market today World of Tanks is hugely popular, and rivals big hits in the Western markets like League of Legends (Riot Games) in terms of spending.

Social games are a close second, with The Area Farmers topping the list. The game is a farm simulation that has flourished without Zynga’s Farmville present in the local social space. And finally mobile games represent a small but quickly expanding market, growing 36% year-over-year.

These trends, and the projected $1.9 billion in total spending by 2016e, may make the Russian games market seem like a video game gold rush. But there are a number of important factors that make this market different than others. Despite the size of the market, individual gamers behave very differently than those in other European countries, and they underperform in certain metrics (e.g. Russian gamers make an average of 5.5 digital game transactions, versus 9.4 in France, which is an overall smaller market). They also have very different preferences for online payments than those in Germany, France, the UK and elsewhere: bank transfers via so-called kiosks are immensely popular and unique to the Russian market.

The social gaming demographic skews differently than the US and, instead, resembles other emerging markets like Brazil. The social market is also highly saturated and fragmented. Facebook has spent a lot of energy garnering a mere 7M users, making it only the fourth largest social networking site. Companies interested in investing in Russian social games need to be familiar with thriving local platforms Mail.ru, Yandex and VK.

 

origanal posting by :http://www.superdataresearch.com/blog/conquering-russian-online-games-market/

 

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