Coronavirus to affect electronic supply chains, 5G: Page 4 of 5

February 14, 2020 //By Omdia
Coronavirus to affect electronic supply chains, 5G
The spread of coronavirus is impacting diverse and interconnected sectors of the electronics industry, potentially dirupting 5G deployment.

Games market influenced by coronavirus

The impact of coronavirus has had a broadly positive effect on player engagement and in-game spending in the Chinese games market. However, when considering the supply chain disruption caused by the contagion, the overall effect on the global market is negative.

For the period from Jan. 12 to Feb. 10, according to Priori Data, iOS mobile game daily active users (DAUs) rose at a healthy rate 5.3 percent, while net revenue increased by 5.2 percent, due to the Lunar New Year sales surge and users under quarantine being unable to leave their homes.

However, during the last seven days, revenue growth has flattened.

Comparatively, for location-based titles, the effect has been more severe. For example, daily net revenue for Let’s Hunt Monsters — China’s equivalent of Pokémon Go — suffered an 83 percent decline over the past 10 days, hitting an all-time low.

Generally, the Chinese government’s move to extend the Lunar New Year holiday helped to boost user engagement with legacy titles and increase in-game spending. As a result, we are likely to observe an uptick in China’s PC gaming market in the first quarter, but this is unlikely to reverse the overall declining trend in the PC games market in the region.

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