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Industry Landscape

The gaming industry is robust and rapidly evolving, driven by mobile growth and immersive experiences. It continues to diversify with cross-platform availability and expanding intellectual properties through various media. Emphasis on community building and player safety is increasing, reflecting a maturing market.

Industries:
RPGMobile GamingFantasyFree-to-PlayIn-app Purchases

Total Assets Under Management (AUM)

Video Game Revenue in United States

~$56.1 billion (2023 estimate)

(15.0% CAGR)

The US video game market saw significant growth in 2023.

This was driven by strong sales across console, PC, and mobile platforms.

Live service games and in-app purchases continued to be major revenue contributors.

Total Addressable Market

56.1 billion USD

Market Growth Stage

Low
Medium
High

Pace of Market Growth

Accelerating
Deaccelerating

Emerging Technologies

Cloud Gaming

Cloud gaming allows players to stream high-fidelity games to any device without powerful local hardware, expanding accessibility and reducing barriers to entry.

AI-Powered Content Generation

AI can automate the creation of game assets, storylines, and quests, enabling faster development cycles and more dynamic, personalized player experiences.

Web3 & Blockchain Integration

Integrating blockchain technology can enable true digital ownership of in-game assets (NFTs), secure player-to-player economies, and new monetization models through tokenization.

Impactful Policy Frameworks

Children's Online Privacy Protection Act (COPPA) Enforcement

COPPA (1998, with updates) requires parental consent for collecting personal information from children under 13 and mandates specific privacy policies for online services directed at children.

This significantly impacts Nexters' parental guidance efforts and may require stricter age gating and data collection practices to ensure compliance for younger players or their interaction with parental accounts.

Federal Trade Commission (FTC) Guidelines on Endorsements and Testimonials

The FTC’s Guides Concerning the Use of Endorsements and Testimonials in Advertising (last updated in 2023) require clear disclosure of material connections between advertisers and endorsers, including influencers and streamers.

Nexters will need to ensure that any marketing campaigns involving influencers or content creators for Hero Wars clearly disclose sponsored content to avoid penalties and maintain consumer trust.

State-level Data Privacy Laws (e.g., CCPA, CPRA)

Various state laws like the California Consumer Privacy Act (CCPA) (2018, amended by CPRA in 2020) grant consumers more rights over their personal data, including the right to know, delete, and opt-out of sales of their personal information.

Nexters must adapt its data handling practices and privacy policies to comply with these diverse state regulations, potentially affecting how player data is collected, stored, and used for personalization or marketing.

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