8 Trends That Will Redefine Gaming in Asia (and Beyond)
Deconstructor of Fun × Niko Partners Special
For years, Asia’s games industry has been the global barometer for growth and regulation, a paradoxical mix of explosive creativity and tight control. This year, according to Niko Partners, that paradox deepened: China is “back,” India’s player base is vast but volatile, and MENA’s gaming population is rapidly diversifying.
We sat down with Daniel Ahmad, Director of Research & Insights, and Lisa Hanson, CEO of Niko Partners. They painted a nuanced picture of an industry evolving not through ideology, but through pragmatism.
#1 China’s Back… Not Restricted, But Regulated
“China’s games industry didn’t just rebound, it recalibrated,” says Daniel Ahmad. After years of drought, the government approved 173 new games in August 2025, the largest batch since pre-crackdown 2020. The tone has shifted from restriction to regulation.
Lisa Hanson puts it bluntly:
“We’re in an era of managed optimism. The state sees games as an engine for employment, culture, and exports, but still within a fenced garden.”
That garden is expanding. Platforms like WeChat and Douyin have quietly become China’s new distribution arteries, where mini-games can reach hundreds of millions without formal approvals. Esports is being reframed as a “career path.” AI is being woven into the narrative of “digital economy competitiveness.”
The gates are open, especially if you’re building for Beijing’s vision of fun.
Signal to watch out for:
The share of domestic vs. imported game approvals. If foreign IPs begin to consistently occupy even 10% of new licenses, that’s the sound of doors quietly unlocking.
#2 India: User Growth vs. Revenue Reality
India now stands as the largest gaming market by players, projected to reach 724 million by 2029. But as Daniel notes, “A billion players doesn’t mean a billion payers.”
The government’s ban on real-money gaming (RMG) this year wiped out the country’s highest-ARPU segment overnight. What’s emerging in its place is creativity. Studios are moving into mid-core mobile games with strong local stories, language support, and esports.
“The opportunity is no longer in real money gaming,” Lisa says. “India’s next billion-dollar title won’t come from betting, it’ll come from cultural relevance.”
India’s ecosystem is reorganizing around UPI-powered microtransactions, regional IPs, and influencer-integrated games that turn community into conversion. Monetization will be slow, but momentum will be organic.
Signal to watch out for:
The first post-RMG mid-core game that reaches 2–3% payer conversion with regional IP, proof that India’s monetization ceiling is finally cracking.
#3 In the Middle East, the Gender Gap Is Closing, Fast
Narrative:
“The MENA region is not a monolith of male gamers,” Daniel points out. “Women now make up 37% of the MENA-3 player base. And the female player base is growing, fast.”
Titles like Stumble Guys, PUBG Mobile, and Genshin Impact are seeing surging female participation, but the real inflection is in design and community tone. Lighter narratives, social competition, and female-led creator marketing have made gaming culturally acceptable and even aspirational.
Lisa adds, “The more local teams hire female marketers and community leads, the faster the industry’s inclusivity compounds.”
This isn’t about pink-washing. It’s about building the social fabric of gaming in a region where gaming and development is growing, and there is money to spend on it.
Signal to watch out for:
The rise of women-led gaming campaigns in Saudi Arabia and the UAE, when national esports teams include women, the cultural shift is no longer incremental; it’s institutional.
#4 GTA V Approved in MENA?!
When GTA V was officially approved in Saudi Arabia and the UAE this summer, rated 21+, it broke the internet. And for good reason.
“This isn’t about a single title,” says Daniel. “It’s about a shift from censorship to curation.”
For decades, MENA regulators have walked a moral tightrope. Now, they’re building frameworks that allow adult-rated content with context: verified age systems, localized publishing partners, and content classification protocols.
Lisa notes, “This is Saudi Arabia signaling cultural confidence. They can host esports, fund global studios, and be a central part of the convergence of games, esports and real world sports - as seen in the landmark privatization of Electronic Arts.”
So yes, it’s progress, but it’s structured progress. Mature content is allowed, but only through collaboration and compliance.
Signal to watch out for:
If GTA VI is approved in 2026 with minimal cuts, it won’t just be a win for Rockstar; it’ll mark the full normalization of adult gaming in the Gulf.
#5 Steam Lives on Borrowed Time in China
Roughly 79% of Chinese PC gamers who play premium games use Steam Global, often without VPNs. Western indies and AA studios still rely on it as a stealth gateway into China.
But, as Daniel warns, “The grey market survives because it’s tolerated, not protected.”
Steam’s presence benefits local hardware sales and esports engagement. But it lives on borrowed time. The moment Steam’s content conflicts with data sovereignty or cultural policy, it’s gone.
Lisa frames it with precision: “It’s not a backdoor. Use it for visibility, community building, soft launches, and cautiously engage the Chinese gamers in your game.”
Signal to watch out for:
Unexplained payment or login disruptions on Steam Global in China. Historically, that’s been the state’s quiet way of tightening the leash.
#6 Streaming = The New Market Signal
In the West, streamers chase charts. In China, they make them.
“Streaming is now one of the earliest predictors of success,” Daniel says.
Titles like Delta Force shot to the top of Chinese game live streaming platforms during beta periods, signalling high pre-launch demand. In Asia, influencers act as tastemakers. The ecosystem blends entertainment, fandom, and commerce, App Store meets TikTok, meets Twitch.
Lisa adds, “Chinese platforms reward experimentation. If a game gets traction there, you know it’s hit the cultural pulse.”
Western studios should track stream hours, tip velocity, and creator adoption as leading indicators for UA campaigns. Forget installs, follow engagement heat.
Signal to watch out for:
Games that trend on Bilibili or DouYu before charting on stores,that’s your next breakout hit before the rest of the world notices.
#7 Outside the Store: Monetization 2.0 in SEA
SEA is rewriting the rules of mobile commerce.
As Lisa puts it, “The store is no longer the storefront. Over a third of SEA’s mobile game revenue happens outside Google Play and the App Store.”
Players now top up via ShopeePay, GoPay, TrueMoney, or directly through web shops and creator channels. Daniel calls it “a parallel economy,” one where the biggest games have learned to bypass the duopoly entirely.
The winners are those who rethink user acquisition: using influencers to drive web store traffic, retargeting payers across channels, and building direct relationships that capture off-store LTV.
The “alternative payment” era isn’t a workaround; it’s the future of mobile gaming economics.
Signal to watch out for:
Publishers announcing web store-exclusive events in SEA, that’s the clearest sign they’ve cracked monetization outside the gatekeepers.
#8 AI Interest ≠ AI Usage
Nearly two-thirds of SEA gamers say they’re aware or interested in AI features, but actual usage remains limited. Daniel explains:
“More than 60% of game developers in China have already integrated AI into their development pipeline, and multiple games have incorporated GenAI features in-game. In SEA, gamers are highly interested in the tech for UGC and player interaction in-game.”
Players in Thailand, Indonesia, and Vietnam are experimenting with AI character chat (Smart NPCs), narrative personalization, and fan-created assets. The key isn’t the tech, it’s the tone. “You can’t just ship ‘AI,’” Lisa laughs. “You have to ship delight.”
Studios that localize AI for cultural context, whether through humor, story arcs, or player-driven creation, will win the adoption race.
Signal to watch out for:
Retention lift in SEA titles that integrate AI-driven personalization, a small bump in day-30 could signal the first true ROI of “AI fun.”
Philosophical Musing
The success of Asia’s gaming ecosystems isn’t accidental; it’s structural.
Protected markets gave local champions the time to scale, local cultures the space to mature, and governments the incentive to back games as national industries, not hobbies. The result? Asian developers now compete globally while Western ones compete locally.
It’s a one-way road: studios from China, Korea, and Turkey publish in the West, but few Western games meaningfully penetrate key Asian markets. As a result, our Total Addressable Market (TAM) in the West is simply smaller. That in itself is a massive competitive disadvantage
But that’s only half the truth. The other half lies closer to home. The West has priced itself out of hunger. High workforce costs and a culture of comfort-seeking, driven by endless debates about remote work and work-life balance, have dulled the competitive edge. Asia isn’t just winning on regulation or scale; it’s winning on urgency.
The danger isn’t that Eastern studios will take Western players. It’s that Western studios will stop fighting for them.
