Brazilians will spend $2bn on games in 2011

New Boxed Sales Total to $520m as Second-Hand and Grey Market Flourish

AMSTERDAM, 13 September 2011 – New research and analysis by Newzoo shows that Brazil has grown to be a significant market for games, comparable in size to larger European countries. The uptake of social, mobile and MMO gaming and its “free-to-play” business models are accelerating growth in spending on games, expected to total $2bn this year. The majority of money is spent online or via mobile devices. Games on Facebook or Orkut account for 11% of spending, while dedicated casual game destinations take 15%, comparable to the 16% of money that is spent on MMOs: $320m. Mobile devices gross 9% or $180m. Console games and boxed  PC/Mac games take a considerable 34% of spending but a large part of that money goes to second-hand trade and illegal copies. Three quarters of console and PC game buyers state to acquire games in this manner. Brazilians also spend more money ($300m) on game downloads than on new boxed PC or Mac games.

Direct downloads, second-hand trade and grey market popular

Brazilians spend an identical amount on boxed PC or Mac games as games that are directly downloaded: $300m each. But $48M of the boxed spending goes to second-hand and copied products. Of the 23 million Brazilians that download PC or Mac games, an amazing 64% admits to use filesharing software to acquire games for free. 21% does so at least once a week. For console games a similar trend can be seen. A relatively high 13% of the $380m spent on console games, or $49m, is spent on games and additional game content that is directly downloaded to the console. Approximately $61m is spent on second-hand boxed products and illegal copies, leaving $270m for new boxed products, bought online, in retail or abroad.

First National Gamers Survey in Brazil and Free Infograph

For the first time, market research specialist Newzoo has performed the 2011 National Gamers Survey in Brazil, giving detailed insight into game behaviour, preferences and spending of the active Brazilian internet population of 46 million people aged between 10 and 65. An impressive 76% of these people play games. Of these 35 million “gamers”, 47% spends money on games, a share comparable to Western countries. An infograph shows high-level results of Newzoo’s analysis of the Brazilian games market: http://www.newzoo.com/ENG/1603-Infograph_BR.html

Peter Warman, CEO and co-founder of Newzoo, comments:

“In a way Brazil is leading Western countries when it comes to the popularity of new game platforms and business models. Even with the current economic growth, paying more than $50 for a game is out of reach for many game-crazy Brazilians. Spending smaller amounts of money on games that they have been able to try for free, seems to be exactly what the market needed to grow to its full potential. We should seriously reconsider calling Brazil an “Emerging” Games Market.”

Online Access to all Brazilian Data

·         The Brazilian survey involved more than 200 general and game-related topics. Newzoo clients get interactive online access to the full dataset facilitating (cross-)analyses and graph generating. Identical data is available on twelve other countries including US, EU, Korea,China, Russia and Mexico. A complete topic and product list can be found on www.newzoo.com.

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About Newzoo

Newzoo is an international market research firm focused completely on the games industry. Newzoo aims to provide the best independent consumer market data across all game platforms and business models. Newzoo also operates the global B2B portal Gamesindustry.com and publishes the bi-annual Games Industry Black Book. GlobalCollect, worlds’ premier online payment provider, is launch sponsor of the 2011 Brazilian National Gamers Survey. Newzoo’s full data access clients include Blizzard, PopCap, EA, RealGames/Atrativa, Microsoft, RTL Group and SpilGames. www.newzoo.com.

Contact

Peter Warman, CEO & Co-founder Newzoo, peter@newzoo.com, +31 (0)20 6635816, www.newzoo.com  


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