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Study: Asia Pacific the world's largest gaming market with significant portion of Gen Alpha and Gen Z users

Study: Asia Pacific the world's largest gaming market with significant portion of Gen Alpha and Gen Z users

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Born the year the iPad and Instagram were launched in 2010, Generation Alpha is one of the most connected and informed generations yet and are a key demographic for many marketers. In fact, Gen Alpha is anticipated to reach 2.5 billion people by 2024 and will have the greatest spending power in history according to McCrindle Research.

Raised in a world where artificial intelligence, augmented reality and gaming have become ubiquitous, Gen Alpha and Gen Z are set to become a key growth engine of global consumption that brands should engage with.

One area that APAC advertisers and marketers alike can leverage to engage with Gen Z and Alpha individuals is through gaming platforms which nearly half of both groups cite as their go-to for feeling less anxious and stressed.

More specifically, half of Gen Alpha across the region and 47% of Gen Z individuals in Singapore and Indonesia turn to gaming to feel better mentally. Vietnam has the highest percentage of youth that turn to gaming at 60% which is followed by Malaysia and the Philippines tying for second place at 56%.

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These were the results of TotallyAwesome’s Youth-first Digital Insights Study which also revealed that gaming is nearly gender-neutral with 46% of girls and 54% of boys in Gen Alpha finding solace in gaming.

From the large segments of both groups that use gaming platforms, it is not surprising that the APAC region is also the world’s largest gaming market, with total revenues exceeding $84 billion USD in 2022, according to the report.

Despite access to multiple media platforms, youth in the APAC region are increasingly placing more value in gaming as compared to other channels when building social connections.

The same study also showed that gaming plays a pivotal role in fostering social bonds between family and friends and that 52% of Gen Alpha and 48% of Gen Z individuals cite gaming as a way to feel more connected.

Family members do not necessarily have to engage in a game with them as parents who are able to purchase games for these groups of individuals can lead to increased connections.

“When it comes to forging a sense of community and self-expression, young people are increasingly looking to gaming as the most important space for social bonding. Gaming is no longer just gaming – it’s their new social,” said Will Anstee, TotallyAwesome‘s executive chairman.

Additionally, commercial gaming growth also bleeds into streaming platforms in the APAC region with 77% of Gen Alpha and 76% of Gen Z citing YouTube as their most used streaming channel, compared to only 6% and 8% going to Twitch.

These results highlight a desire for increasing levels of engagement for Gen Z and Alpha individuals who are looking across the gaming ecosystem for content.

Netflix has already hopped on the bandwagon and has begun ramping up its gaming offerings since its launch of Netflix Games in November 2021. So far, Netflix has released 55 games and has unveiled plans to introduce 40 more games this year.  

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