Highlights
- Asia and MENA gaming revenue is set to hit $89 billion in 2025.
- India is booming with over 500 million gamers following new regulations.
- China and Japan lead spending as the region shifts toward premium consoles.
The gaming landscape across Asia, the Middle East, and North Africa (MENA) is proving to be an unstoppable force. According to the latest Half-Year Market Update from research firm Niko Partners, the region is on track to reach a massive $89 billion in revenue in 2025. This financial milestone marks a healthy 2.7% year-over-year recovery, driven by a staggering regional army of 1.7 billion gamers. Niko Partners has raised its projections from earlier in the year, citing a combination of improved consumer dynamics, favorable regulations, and the performance of evergreen titles. The firm now predicts the region will evolve into a $100 billion opportunity by 2029.
While the broader region is thriving, India has emerged as the undeniable standout story. Rapidly transforming into a global gaming powerhouse, India is set to host over 500 million gamers by the end of 2025, with projections soaring to 700 million by 2029. A major catalyst for this maturity is the changing regulatory environment, specifically the introduction of the PROG Act in August 2025.
This legislative move effectively banned Real Money Gaming (RMG) while simultaneously boosting government support for video games and esports. This pivot signals a commitment to sustainable industry growth, positioning India to lead Average Revenue Per User (ARPU) growth and exceed $1.5 billion in player spending by 2028.
The demographics of who is playing are shifting just as fast as the revenue. In India, female participation is rising sharply; where women comprised only 20% of the gaming community in 2020, that figure is projected to nearly double to 40% by 2025.
Mature Markets Retain Dominance
Furthermore, despite the dominance of free-to-play models, the "paying audience" is substantial. Despite the explosive user acquisition in South Asia, the traditional heavyweights—China, Japan, and Korea—continue to hold the financial reins. These mature markets are expected to account for a massive $88.8 billion in player spending by 2029, representing roughly 89% of the total regional revenue.
China remains the heavyweight champion. Niko Partners noted that strong performances from both new and legacy games in China, alongside a recovering market in South Korea, have led to higher forecasts across all platforms.
Elsewhere in the region, Southeast Asia presents a complex picture of opportunities and challenges, currently valued at $5.5 billion. The market is witnessing a divergence in growth rates when it comes to countries like Malaysia, Thailand, and Vietnam. All three are reportedly on the rise due to strong macroeconomic indicators and government support.
However, growth forecasts for Indonesia have been reduced as the country faces economic distress. This highlights how consumer confidence and local regulatory outlooks remain key factors in this region's success.
In terms of hardware, the industry is seeing a shift from pure volume to high value. Although consoles currently represent just 6.3% of revenue, the segment is expected to see accelerated adoption.
This uptake will be driven by the demand for premium AAA experiences, specifically the launch of the Nintendo Switch 2, the highly anticipated Grand Theft Auto VI, and next-generation hardware from Sony and Microsoft.
