Thread: Games firms opposing Russia are cutting off a $3.4bn market

Grisham

Ensuring Transparency
For the past week, some of the biggest names in video games have been halting all sales in Russia in response to the country's invasion of Ukraine.

So far, Microsoft, Take-Two Interactive, Ubisoft, Electronic Arts, Activision Blizzard, Epic Games, CD Projekt and Bloober Team, Supercell and CI Games have all actively taken a stance, while others are complying with economic sanctions imposed by the EU, US and other nations.

Twitch, for example, informed Russian streamers that they would no longer receive payments or be able to make purchases if their account was linked to one of the Russian banks affected by the sanctions. Similarly, restrictions on financial institutions may be a factor in why Nintendo suspended payments in Russian rubles and placed the Switch eShop into maintenance mode for the region.

But what's the broader context here? How big are video games in Russia, andjust how much business companies are foregoing by making these moves?

IDG Consulting shared estimates for 2021 games revenues in Russia with GamesIndustry.biz, saying the market generated around $3.4 billion last year.

The bulk of this, as with any market, stems from mobile games at an estimated $1.4 billion, while PC follows closely at $1.2 billion. Console revenue was estimated at $864 million, with the majority believed to come from digital sales (via stores such as the eShop) at $549 million.

Some companies have also cut off Belarus -- the nation that borders both Russia and Ukraine, through which the Russian military is also able to enter the latter country -- with Newzoo estimating that market spent $101 million on video games in 2021.

IDG also shared estimates for gaming revenues from the entirety of Europe, amounting to $51.5 billion. Russia accounts for 6% of all spending on video games across the continent, including 8% of all money spent on mobile games and 12% of all PC games revenues.

According to Newzoo, Russia is the sixth biggest market in Europe, and the 15th biggest in the world.

Meanwhile, Sensor Tower ranks Russia at No.13 in terms of global mobile revenues -- 1% of all player spending -- and No.5 in terms of downloads. While downloads don't always lead to spending, they can still generate revenue via advertising, with Sensor Tower estimating 2.8 billion downloads across the App Store and Google Play in 2021.

Newzoo told us the country represents an audience of 80 million players. Not all 80 million will be customers of the publishers that have cut off the market, but a significant portion will. Newzoo told us Grand Theft Auto 5 is the third biggest game in Russia in terms of monthly active users, so Take-Two preventing players from spending on GTA Online will certainly impact the country's games revenues.

We reached out to the various publishers to find out how much of their own revenues Russia represents. Most declined to comment or were unable to disclose, although a CD Projekt spokesperson told us Russian customers accounted for 5.4% of CD Projekt Red's revenues in the last 12 months, as well as 3.7% of all GOG.com revenues.

So how does all this play into the broader efforts to damage Russia's economy and compel the nation to end its hostilities against Ukraine?

According to Trading Economics -- a site that scrapes data from various official sources, including Russia's Federal State Statistics Service -- total consumer spending across all categories in Russia reached $356.3 billion across Q4 2020 through Q3 2021 (Q4 2021 figures are currently unavailable). While that's not a directly comparable 12-month period to the estimates we've received, it still suggests video games represent less than 1% of all spending in Russia.

Does that limit the impact of these sales bans? Perhaps, but it's important to remember all but two of these companies (Epic Games and Bloober Team) are publicly traded companies, under pressure from shareholders and investors to demonstrate constant growth -- even after the pandemic-induced spikes of the last two years.

Cutting off a $3.4 billion market, regardless of your position in it, is going to have an impact on your bottom line. So while the cessation of sales could be dismissed as a symbolic gesture, it's more significant than that in the grander scheme of how these publishers do business -- and in the precedent it sets for how an increasingly global games industry will be expected to respond to international conflicts.

 
That'll teach those citizens to finally go and fight their own military to remove their president from power!

I can't believe we're pretending that's what regular people are supposed to go do, and here are your punishments until you go and do it! And that's after 5+ years of screeching about Trump and I don't remember game developers ousting him from office after being cut off from the world market.
 
If I wasn't 20 years invested in my career in the games industry I would change fields. Working in my industry is like being in High School again (or worse Freshman year at Uni). Nothing but well intending dilettantes* and philistines who cause untold damage due to their supreme ignorance of the nuanced details of just about any important issue. In their world everything is a binary good/bad and they assume their gut instinct is always 'good'. It is truly tragic to see such intelligent people make such shortsighted and uninformed decisions.

*Edit: Fixed the spells
 
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Gaming companies have made good headway in the past 10 years in Russia and have combatted piracy really well, especially Steam, whose regional pricing was great and shifted many gamers into the legal market for the first time.

This is a great way to kiss goodbye to all that progress in an instant and ensure that those Russians never legally purchase games ever again. If they render their consoles useless and lock them out of digital accounts, they're done for at least a generation or two should they come crawling back.
 
Gaming companies have made good headway in the past 10 years in Russia and have combatted piracy really well, especially Steam, whose regional pricing was great and shifted many gamers into the legal market for the first time.

This is a great way to kiss goodbye to all that progress in an instant and ensure that those Russians never legally purchase games ever again. If they render their consoles useless and lock them out of digital accounts, they're done for at least a generation or two should they come crawling back.
Yep, and for what?

Russian gamers are going to be so upset they have to pirate videogames that they will singlehandedly go and overturn their entire government?

It makes no fucking sense whatsoever.
 
If Russia were to successfully overthrow and absorb Ukraine these companies would all quietly reverse these decisions almost immediately.
They will all go back under cover of dark once the twitter mob moves on to their next 'Dragon' to slay. I mean, most of them operate now in many nations rife with human rights abuses. Only thing that keeps multinational corps out of a nation long term is when the US govt makes them.

Lets pick on Sony for a second: https://www.playstation.com/country-selector/index.html

I see a lot of places that Amenity International would give a FAILING grade: (Mainland) China, Hong Kong, Saudi Arabia, Bahrain, Turkey (& the disputed Cyprus), Hungary, Israel, Lebanon, Nicaragua, Oman, Qatar, UAE & South Africa.

So clearly its not about having the moral high ground in the slightest.
 

Nintendo has halted product shipments to Russia, the company confirmed today in a statement to Eurogamer.

The brief announcement makes no mention of the Russian invasion of Ukraine, as previous statements from many other companies have.

Instead, Nintendo simply says it has stopped shipping products to Russia due to the "logistics" of the situation.

"We have decided to suspend shipping all Nintendo products to Russia for the foreseeable future," a Nintendo spokesperson told Eurogamer. "This is due to considerable volatility surrounding the logistics of shipping and distributing physical goods.

"In addition, Nintendo eShop in Russia is currently under maintenance following the suspension of transactions in Russian rubles by the payment provider."

While there's no comment - and certainly no condemnation - of the Russian invasion of Ukraine in this statement, Nintendo yesterday announced it had postponed the release of upcoming Switch exclusive Advance Wars 1+2 Re-Boot Camp until further notice "due to recent world events".

Marketing materials for that game appear to have been withdrawn, Eurogamer has spotted - including a previously-published trailer being taken down from YouTube.

Nintendo follows a long list of other video games companies which have abandoned Russia for the time being, including Microsoft, PlayStation, EA, CD Projekt, Activision Blizzard, Ubisoft, and Take-Two.


Last week saw a flurry of announcements as companies of all sizes confirmed the suspension of video game sales in Russia following the country's invasion of Ukraine, and now Sony has officially followed suit, announcing its own measures in regard to PlayStation.

Sony already made the decision to quietly pull Gran Turismo 7 from sale in Russia last Friday, but now the company has confirmed more extensive action, including the suspension of all hardware and software shipments and the halting of its PlayStation Store operations in Russia while the country's attack on Ukraine continues.

"Sony Interactive Entertainment joins the global community in calling for peace in Ukraine," the company wrote in a statement. "We have suspended all software and hardware shipments, the launch of Gran Turismo 7, and operations of the PlayStation Store in Russia."

Sony added that it would also be supporting humanitarian aid and the victims of Russia's ongoing military action with a donation of $2m USD to the United Nations High Commissioner for Refugees (UNHCR) and Save the Children.
 
So virtuous! So brave!

Perhaps I'm jaded because I've already seen cunts use cancel culture on Americans who didn't deserve it either, and that none of these twats are hurting Putin, they're hurting Russian citizens who are out protesting Putin themselves. You wanna impress me bitches? Stop selling your shit in China (and why shouldn't you -- they're Russia's open partner in this and another grievous offender of human rights). But you won't, because you're cocksuckers like Tim Cook who talk a big game but in the end it's all about money.
 
Last time Russia was cut off from the gaming market we got this:

DecisiveSafeHorsemouse-size_restricted.gif


So maybe it'll all work out in the end. Russian geniuses + Chinese slave-developers = superior AAA market.
 
in the end it's all about money.
That's what it always was about, you think corporations have morals? They just pander to what the sheep (whales actually) want, and right now the sheep want social justice and being cuddled and told they are the best and that they're not crazy for thinking they can become a different sex or a different species all together.

And of course BlackRock being "the world's largest asset manager" and it's founder and CEO being a SJW clown (very ironic) it's very easy to see why big corporations (and even sovereign states!) want to toe the line so they could get some of that cash.
 
That's what it always was about, you think corporations have morals? They just pander to what the sheep (whales actually) want, and right now the sheep want social justice and being cuddled and told they are the best and that they're not crazy for thinking they can become a different sex or a different species all together.

And of course BlackRock being "the world's largest asset manager" and it's founder and CEO being a SJW clown (very ironic) it's very easy to see why big corporations (and even sovereign states!) want to toe the line so they could get some of that cash.
True, however they're all setting themselves up to look very stupid when China invades Taiwan and they do nothing.
 
Yeah. This entire move is astoundingly dumb. I cannot legitimately believe they think that this will in any way either result in an end to hostilities or a return to normal once the war does end. People around the world are looking at these companies and thinking 'If you'll do it over this' who else are you going to do it too, and why aren't you doing it over these guys?

True, however they're all setting themselves up to look very stupid when China invades Taiwan and they do nothing.

I wouldn't want to get OT, but honestly, right now China is probably thinking 'now is as good a time as any' on that front. :unsure:
 
I wouldn't want to get OT, but honestly, right now China is probably thinking 'now is as good a time as any' on that front. :unsure:
Not necessarily. I think right now China is observing how the west is reacting to the Russian invasion in Ukraine and preparing.

Taiwan has the explicit military support of the US, so it is not the same. Ukraine does not have that and neither it is in NATO.
 
Corporations created a market for ridiculous SJW/woke content by amplifying and marketing it. People that swallow that crap up don't even believe in the issues and the evidence for that is all around us, their reaction to stories like this being a fine example. They disparage, segregate and wish harm on anyone that disagrees with whatever their screen told them.

The self-professed open-minded "liberals/progressives" that say they want a more inclusive world tend to be some of the most close-minded, intolerant people on the planet.

Hollywood doesn't get any of my money, not that I can enter a movie theater right now anyway, and I'll treat these gaming companies indiscriminately targeting Russians the same way. I've got shelves and a closet full of older games, I think I'll manage just fine.
 
Corporations created a market for ridiculous SJW/woke content by amplifying and marketing it. People that swallow that crap up don't even believe in the issues and the evidence for that is all around us, their reaction to stories like this being a fine example. They disparage, segregate and wish harm on anyone that disagrees with whatever their screen told them.

The self-professed open-minded "liberals/progressives" that say they want a more inclusive world tend to be some of the most close-minded, intolerant people on the planet.

Hollywood doesn't get any of my money, not that I can enter a movie theater right now anyway, and I'll treat these gaming companies indiscriminately targeting Russians the same way. I've got shelves and a closet full of older games, I think I'll manage just fine.
That is something that these media/content companies are just starting to realize. After a few decades, there is more content available than a person could ever consume. Which is why there is a war on ownership. They want "your" content locked behind their service.

If MS doesnt like you, you cannot sign in to XBL and cannot download 'your' games. Piss off NetFlix and no more streaming and on and on. And then add on the forced technological advancements that are geared toward rendering older physical content obsolete. It just become a long as con if you are not careful. And once you see it, it really sours you on what is right/wrong and make piracy seem perfectly reasonable considering what these companies are doing to you.
 
LOL got another text from my buddy at Sony. They say that it looks like Sony is expecting to get hacked/attacked and sent out a heavy warning/reminder on cybersecurity during these 'uncertain times' and that there is already 'suspicious activity'. One would have thought getting hacked by DPRK would have thought them to avoid pissing off nation states.
 
LOL got another text from my buddy at Sony. They say that it looks like Sony is expecting to get hacked/attacked and sent out a heavy warning/reminder on cybersecurity during these 'uncertain times' and that there is already 'suspicious activity'. One would have thought getting hacked by DPRK would have thought them to avoid pissing off nation states.
So we'll get to see Abbys new penis firsthand? lmao
 
So we'll get to see Abbys new penis firsthand? lmao
omg you dinosaur, Abby is a totally normal looking chick! This is what women can look like, so get with the program. Let me find pictures of extremely rare female bodybuilders on tons of hormone concoctions who look like complete fucking freaks to prove my point that a random girl in an apocalypse could maintain the physique of a man and that it's a totally normal thing for any woman to achieve!!

And she's not trans! There's no trans push in this game except for when the tranny gets introduced!
 
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I would have less problem if the government said you couldn't sell to russia but since that isn't the case it's just more cancel culture for virtue signaling.
 
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