IDC Says the Growing Base of Gamers, and the entry of New Online Gaming Service Providers Capture the Growing Market of Online Gaming in Indonesia

June 20, 2006

Jakarta, June 20, 2006 – IDC's latest study on the emerging online gaming market in Asia/Pacific excluding Japan (APEJ) region revealed that as an emerging market, IDC has identified the following trends present in the Indonesian online gaming industry, specifically in the areas of online games and service providers (SPs), that are likely to affect gamer base expansion and growing market mindshare. In the online gaming space, online games will become more personalized by way of increasing gaming experience and affinity through a Web of community, blogs, and magazines. Furthermore, SPs have indicated growing interest in developing local games that cater to the Indonesian gaming populace given the strong nature of the Bahasa Indonesia language and the Indonesian cultural influence notwithstanding the prevalence of imported online gaming titles in the market today.

"In order for the Indonesia online gaming industry to move forward and leave its shell as an emerging gaming market, the country's online gaming stakeholders must ensure that the country's infrastructure is in place that would allow for an environment conducive to growing the market. The market is definitely at its early stage, as evidenced by the country's Internet, broadband, and PC penetration rates,” said Andrew Wong, Research Manager, Online Gaming, IDC Malaysia. “But by adopting the necessary measures that would make bring affordability and convenience to subscribers, the market will be well poised to continue its transformation toward becoming an established industry in the near future.”

For SPs, fostering cooperation between themselves and telecommunications operators in order to provide customers with a more efficient and enhanced gaming experience will be seriously looked at. As the market matures, there are bound to be changes in the SPs' business models that will further aim to strengthen market share and revenue margins. By developing the market alone, online gaming providers will likely face a lot of inhibiting factors. It is thus advisable to foster cooperation with telecommunications operators. The partnership can build on distribution agreements such as distributing gaming vouchers through mobile phone outlets and mobile payment of gaming vouchers.

Asia/Pacific Online Gaming Market Forecast, 2005-2010

Source: IDC, 2006

Size of bubble: subscription revenue in respective country in 2005 in US dollars

For more information about purchasing the research, please contact Selina Ang at +65-6228-7717 or sang@idc.com. For press enquiries, please contact Eileen Tan at +65-228-7775 or etan@idc.com.

Contact

Chong Chee Kian
Events & Marketing Executive
Tel: +603-2169-7521
Fax : +603-2163-5098
Email:ckchong@idc.com