Coda and Niko Partners reveal how out-of-app monetization, local payments, and new regulations are reshaping Asia’s $23.2B mobile gaming market.
Coda, a leader in digital content monetization, and Niko Partners, the leading market research firm specializing in gaming markets across Asia have co-published their latest white paper, “Gaming Growth Unlocked: Insights on Distribution, Payments, and Regulations in Asia”. The report highlights how regulatory changes, third-party platforms, and local payment methods are reshaping Southeast Asia, Japan, and South Korea’s USD $23.2 billion mobile gaming market, which is home to 357 million gamers.
Key insights: What mobile games publishers need to know
The white paper reveals how out-of-app distribution and alternative app stores are reshaping Asia’s gaming market, driving game discovery and monetization. These channels play a critical role in helping publishers reach new audiences and innovate beyond traditional app stores. Key findings include:
Out-of-app monetization in Asia is accelerating
Transacting outside of primary app stores is now commonplace. Out-of-app platforms and alternative app stores now contribute approximately USD 6 billion—26%—of the mobile gaming revenue in East Asia and Southeast Asia combined. By 2028, out-of-app monetization may account for as much as one-third of the mobile gaming ecosystem in Southeast Asia, Japan, and South Korea if the current growth rate continues.
Regulatory changes are opening new doors
Recent regulatory shifts like South Korea’s “Anti-Google Law” and Japan’s Fair-Trade rulings are opening up the ‘walled gardens’, encouraging publishers to adopt alternative platforms and payment methods. These shifts, along with new tax frameworks in markets like Vietnam and Indonesia are driving out-of-app monetization as game publishers navigate fragmented markets and complexity.
Shane Happach, CEO of Coda, said, “Mobile game publishers know Asia’s potential is massive, but real growth means looking beyond primary app stores. The region is complex and diverse — local payment methods and shifting regulations are reshaping how publishers reach players and drive revenue. There’s no one-size-fits-all solution; out-of-app monetization is key to winning in Asia. Coda offers the solutions and strategies publishers need to tap into the region’s full potential — with ease and at scale. Those who wait are missing out and will be left behind.”
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Roadmap to success: Key actions for publishers in Asia’s gaming market
To navigate Asia’s ever evolving gaming ecosystem, the white paper outlines key strategic recommendations for publishers:
- Diversify distribution channels: Go beyond primary app stores by exploring alternative out-of-app distribution channels.
- Localize payment methods: Offer local payment options like digital wallets and carrier billing to maximize conversions.
- Adapt to regulations proactively: Partner with market experts to navigate compliance, licensing, and tax regulations while reducing reliance on traditional gatekeepers.
- Tailor marketing funnels: Align marketing strategies with regional consumer behavior, from awareness to purchase, to optimize player acquisition and retention.
“Asia is not just a market; it’s a blueprint for the future of gaming,” said Lisa Hanson, CEO of Niko Partners. “The practical implications of evolving corporate policy and government regulation changes on international games business and user acquisition have led to greater opportunity for publishers who incorporate out-of-app monetization and distribution. These strategies help publishers to reduce reliance on traditional app stores and adapt to the diverse needs of Asia’s fragmented markets.”
