What’s trending in Asia & MENA esports? Free Bulletin in collaboration with Esports Charts
Esports summer is still shining in Asia and MENA and showing no signs of end. Niko Partners has once again teamed up with Esports Charts to bring you the Asia & MENA Esports Bulletin H1 2025. This bulletin combines Niko’s proprietary research and streaming insights with Esports Charts’ tournament data, giving you key takeaways and tournament spotlights in five regions that we covered: China, East Asia, SEA-6, India, and MENA.
Meet Niko Partners at New Global Sport Conference
We are thrilled to be at New Global Sport Conference again this year. The event is held on August 23-24 in Riyadh, Saudi Arabia during the closing weekend of the Esports World Cup 2025. Niko's CEO Lisa Cosmas Hanson will be moderating a panel titled "Positioning Intellectual Property as a Strategic Advantage in the Next Game".
Sony has relocated PS5 manufacturing for the US market outside China
Sony has confirmed that all PlayStation 5 hardware sold in the United States is now produced outside China, a strategic move aimed at circumventing US tariffs on Chinese-made electronics. The announcement came during the company's fiscal Q1 2025 earnings call, where CFO Hiroki Totoki emphasized that the shift reflects Sony's broader efforts to diversify its manufacturing footprint in response to persistent trade tensions between the US and China. Accessories, including controllers and headsets, are also being transitioned to non-Chinese production lines, with full relocation expected by the end of September 2025.
Why this matters: Video game consoles shipped from China are currently subject to a 30% tariff, which could increase if a deal is not signed between the US and China in the next 90 days. Sony has diversified production across Japan, Vietnam and Malaysia, which are subject to a lower 20%, 15%, and 19% tariff, respectively. It's worth noting that Sony continues to manufacturer the majority of their consoles and accessories in China, with primarily US bound product being relocated outside of the country. Recent import data for July 2025 shows that China still accounts for the majority of shipments.
Wuchang Fallen Feathers makes changes to game after backlash from players
Leenzee Games has pushed a major update to Wuchang: Fallen Feathers that prevents players from attacking Ming Dynasty soldiers and ensuring that bosses in the game do not die when they are defeated, instead becoming non-hostile NPCs. This comes just weeks after the game's global release on July 24, 2025. While the game suffered from negative reviews at launch, the majority were related to the game’s performance on PC. However, the games narrative content also came under scrutiny from a vocal nationalist minority, who objected to the game's portrayal of Ming dynasty figures as enemies and perceived favoritism toward Manchu characters.
Why this matters: The changes represent a notable narrative and mechanical shift in the game's design, raising concerns about the extent to which developers may alter creative content to appease nationalist sentiment. This incident is notable as this is a domestically developed game. However, a growing vocal minority has made their position clear, leading to the changes in-game. It's a reminder that developers increasingly need to know how to navigate political, historical, and mythological narratives within video games, balancing creative ambition with regulatory and social expectations.
Link to original article (Chinese) →
Parco Games label launched, to focus on indie games
Japanese company Parco, mostly known for its retail and real estate business, announced that it has launched a new game publishing label Parco Games, which will specialize in indie game publishing on Steam and console devices (Nintendo Switch, PS5, and Xbox). The label will publish select indie games from Japan and beyon, while also conducting events, collaborations, and developments utilizing Parco's physical stores. A total of three titles under the label will be available to purchase in winter 2025: CONSTANCE, The Berlin Apartment, and Nova Antarctica.
Why this matters: Niko Partners note that Japanese gamers, particularly on PC and console, are increasingly getting into indie games, particularly with the success of indie titles such as Palworld, Suica Game, and No Exit in the country, among others. Parco’s entry into the game publishing industry also shows that the market is still seen as promising for new entrants.
Link to original article (Japanese) →
Minister of Communication and Digital Affairs of Indonesia demands Roblox to comply with local game regulation
In August 15, it was reported that Ministry of Communication and Digital Affairs of Indonesia held a meeting with representatives from Roblox Asia Pacific. Meutya Hafid, the Minister of Communication and Digital Affairs, expects Roblox to improve their platform to comply with government regulations on child protection in the digital space (PP Tunas). Additionally, Hafid also demands Roblox to limit communication between child users, filter vulgar user-generated content, and clarify parental control features.
Why this matters: Governments around the world are stepping up to introduce or strengthen regulations that protect children online. In this case, Minister of Primary and Secondary Education, Abdul Mu'ti raised the concern of children being exposed to inappropriate content via interactions within the Roblox platform. We note that Roblox is one of the most popular games in Indonesia today, particularly among children, with more downloads than Mobile Legends Bang Bang. Roblox recently released a statement clarifying its position on sexual content in the game following recent high-profile cases.
Link to original article (Indonesian) →
RELATED: Qatar blocks access to Roblox, citing child safety concerns
Qatar has decided to ban Roblox on all platforms effective immediately (August 13). While the game is still available to download, attempting to access the game from Qatar will lead to a connection error. Local news outlets have claimed that the move was to protect children, as a series of what is being referred to as "virtual assaults" were reported. There were also concerns that the game could expose children to ideas that breach moral, cultural and/or religious values.
Why this matters: Qatar is not the first country to outright ban Roblox, with the title banned in Turkey outright last year. Similar reasons were provided at the time, focusing on the game's ability to protect underage gamers from harmful content and predatory behavior. Even its business model has come under fire, as some journalists claim that it takes advantage of young game developers. The developers have yet to respond to the recent ban in Qatar at the time of writing.
Xiaohongshu hosts REDLAND gaming expo in Shanghai
From August 8-10, Xiaohongshu (Known as RedNote outside China) hosted its inaugural REDLAND expo on Shanghai's Fuxing Island, which it branded as a "game and anime open-world adventure island". The event attracted massive attention both online and offline, with over 200 million views on Xiaohongshu related hashtags and the 80,000 sqm venue at full capacity throughout the three-day period. Xiaohongshu offered 70,000 tickets, with the majority of them given away for free inside the app as an incentive to attend.
Why this matters: REDLAND reflects Xiaohongshu's evolving identity. While traditionally a lifestyle-focused interest community with a 70% female userbase, the platform is making a deliberate push into gaming and anime. The platform has seen anime content grow 175% and gaming posts up 168% in the past year, becoming its third- and fourth-largest categories. Xiaohongshu has also launched several gaming initiatives, including its #I'mMakingGamesOnXiaohongshu developer support program, which has attracted 1,351 game creators and incubated 38 with over 100,000 followers.
Link to original article (Chinese) →
China to tax user acquisition spend for internet companies
In a significant development for China's mobile gaming sector, multiple government agencies have introduced new tax regulations that formally categorize user acquisition spending as an advertising expense. Under the new rules, any advertising spend that exceeds 15% of a company's annual revenue is now subject to corporate income tax. The policy introduces immediate financial pressure, particularly for game publishers heavily reliant on aggressive user acquisition models.
Why this matters: This model, while effective for scaling games with relatively short lifecycles or low retention, often results in razor-thin margins. While larger studios may shift toward more evergreen, high-retention game models or reduce dependency on paid installs, smaller and mid-tier publishers could face viability concerns. The rule change is seen as part of broader efforts to curb excessive advertising, promote more sustainable business models, and enhance tax compliance across digital industries.
Link to original article (Chinese) →
Did you know that China Games & Streaming Tracker views all current and historical data in our dashboard, updated every 24 hours? Niko’s analysts write and post monthly analysis of key trends and data observed in the Tracker to help our clients with important insights. Contact us for more details, to arrange a demo, and book a trial!
Free Fire launches cross-Vietnam reality tour with 24 KOLs, drawing 2,100+ offline attendees
Free Fire has recently launched "Cross-Vietnam Free Fire," a vertical-format reality tour that took 24 local Free Fire KOLs from Hanoi/Ninh Binh to Quy Nhon, Can Tho, and Ho Chi Minh City, blending local culture with survival-game-themed challenges and simultaneous creator livestreams. The tour converted online reach into real life engagement via large meetups, minigames, and fan interactions, drawing roughly 2,100 attendees across stops.
Why this matters: This KOL-led offline-first approach strengthens regional/provincial communities beyond major cities, creates repeatable event templates for retail/venue partners, and reinforces Free Fire's live-ops funnel at a time when battle royale retention depends on creator content and local touchpoints. Sustainability will rely on cost per attendee and conversion to DAU/ARPU and whether attendance can scale nationally, but the model is well aligned with Vietnam's mobile-first audience and brand-community dynamics.
Link to original article (Vietnamese) →
Saudi Arabia sees a spike in console imports
According to data from the Zakat, Tax and Customs authority, Saudi Arabia imported around 1.7 million console units in 2024, with 684,489 units imported so far in 2025, which is a strong indicator of console segment growth in the kingdom. The authority indicated that the top five countries from where imports occurred in 2024 were: China, followed by Japan, the United States, Hong Kong, and Vietnam.
Why this matters: According to Niko Partners MENA Gamer Behavior & Market Insights Report, Saudi Arabia’s console game market is forecasted to reach $378.4 million in 2025. PlayStation is the leading console brand in the country due to its long-term presence in the region. Nintendo recently entered the market through a partnership with Advanced Initiative to officially launch the Nintendo Switch 2 in the country.
India’s Beelzeboy Wins 2025 Pokémon GO World Championship
On August 17, Ved “Beelzeboy” Bamb made history by becoming the first Indian player to win the Pokémon GO World Championship, securing his place as India’s first-ever world champion in an esports title. The 21-year-old from Nagpur triumphed over finalist P4T0M4N at the 2025 Pokémon World Championship event, held in Anaheim, California. Beelzeboy’s rise to prominence began with his victory at the 2024 Pokémon India National Championship, where he outperformed 200 elite players.
Why this matters: Beelzeboy’s victory positions India as a Mobile World Champion nation for the first time and sets a new precedent for the country’s growing presence in global esports. This victory not only showcases India’s growing competitiveness in mobile-first esports, but also affirms Pokémon GO’s international appeal as a viable esport despite its casual roots. Pokémon GO maintains a strong user base in India and was a top 10 grossing mobile game in H1 2025.
Events
New Global Sport Conference
Riyadh, Saudi Arabia
August 23-24, 2025
Speaker: Lisa Hanson
Malaysia MPL Finals
Kuala Lumpur, Malaysia
September 12-15, 2025
Attendee: Edward Tien
Tokyo Game Show
Tokyo, Japan
September 25-28, 2025
Attendee: Lisa Hanson