Market Overview - The total revenue from in-app purchases (IAP) in the Japanese mobile gaming market is projected to be $11 billion (approximately 78.2 billion RMB) from August 2024 to July 2025, reflecting a year-on-year decline of 2.2% [1] - Despite a slight market contraction and a 2.5% decrease in downloads, the market remains stable due to a high average revenue per user (ARPU) and effective monetization strategies, maintaining annual revenue above 1.6 trillion yen (approximately 77.2 billion RMB) since 2021 [1] Category Performance - RPG games continue to dominate the Japanese mobile gaming market, contributing 37.4% of total revenue, with titles like "Uma Musume," "Monster Strike," and "FGO" leading the revenue charts [3] - Strategy games rank second with a 21.8% revenue contribution, driven by 4X strategy games like "Last War: Survival" and "Whiteout Survival," which saw a 35% revenue increase, and the card battle game "Pokémon TCG Pocket," which achieved a 305% revenue surge [5] - Casual puzzle games are the primary drivers of download volume, accounting for 33.2% of total downloads, with games like "Car Jam" and "Screw Sort 3D" experiencing over 70% year-on-year growth in downloads [5] IP Importance - Local IPs play a crucial role in the Japanese gaming market, with the "Pokémon" IP achieving a 32% year-on-year revenue increase due to the success of "Pokémon TCG Pocket" [10] - The "Gundam" IP, through the new release "SD Gundam GGENERATION ETERNAL," saw over 800% year-on-year growth, highlighting the effective operational strategies that enhance IP value [10][12] Publisher Landscape - Japanese publishers dominate the market, contributing over 52% of total IAP revenue while accounting for only 31% of downloads [14] - Major Japanese companies like Bandai Namco, Sega, and Capcom rank among the top ten global publishers on Steam, indicating strong influence in the PC and console gaming markets [14] - Overseas publishers adopt differentiated strategies to penetrate the Japanese market, focusing on core paying users and launching casual games that appeal to a broader audience [16][18] Advertising Strategies - The gaming sector is a leading category for digital advertising in Japan, with significant ad spending and display volume [19] - LINE is the most prominent channel for game advertising, with successful campaigns often aligning with major in-game events [19][20] - Targeted advertising strategies are employed, such as "Whiteout Survival," which focuses on male users aged 25-34, utilizing platforms like TikTok and Instagram to resonate with younger audiences [22]

Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - The domestic card market primarily relies on overseas high-quality IP, while the overseas market is dominated by proprietary IP [7][22] - The core advantages of trading card games (TCG) include longer lifecycles and broader monetization channels [8][10] - Recent efforts by domestic and international manufacturers have created a positive cycle in the trading card industry, potentially leading to new growth points [9] Summary by Sections Differences Between Domestic and International Card Markets - Domestic card companies mainly operate on overseas high-quality IP, while the US and Japan markets are mature with proprietary IP [7][22] - The card types differ, with TCG being predominant overseas and collectible card games (CCG) being more common in China [28] - The domestic card industry is expected to undergo accelerated integration across its value chain [40] Advantages of Trading Card Games - TCGs benefit from longer lifecycles due to evergreen IP and competitive content design [8][57] - The competitive nature and blind box attributes of TCGs enhance user loyalty and consumption frequency [62][71] - TCGs have diversified monetization channels through mobile games and other derivative products [8][10] Breaking Through in the Trading Card Industry - The industry is in a cultivation phase, with consumer habits around competitive play still developing [9] - Domestic manufacturers are enhancing their channel strategies and event experiences to foster a trading card culture [9][49] - The establishment of a robust ecosystem through collaboration between manufacturers and event organizers is crucial for market maturation [9][53]