Remedy - The pride of Finnish AAA games (Part 2)

[Akee]

Here is an excellent analysis of Remedy’s new CEO selection. Highly recommended to watch/listen to this 15-minute video, even though the beginning is a bit provocative.

Remedy Is Fighting For Its Life

They also cover Epyllion’s latest analysis, which I summarized in the gaming industry news thread.

Regarding Remedy, it is essential that growth in Remedy’s main market (EU/US) is practically flat, and market growth in the gaming industry comes largely from China. If you are not present and successful in China, you must sell 1.6x in the flat market to keep up with market growth.

@Akee

Where does that growth come from then:

• From China. And in a way that is difficult for non-Chinese players to succeed.
  • China accounts for 20% of global content spend, but 38% of content spend growth. If you want to grow at the market rate, your game must achieve equivalent distribution in China, or you need to sell 1.6x the volume outside of China. On top of this, 84% of Chinese spend goes to games developed in China. Of the remaining 16% left for foreign developers, local distributors and importers take the lion’s share.
  • To top it all off, Chinese gaming firms capture a quarter of the industry growth occurring outside of China.