Ahead of the Digital Game in Latin America, Brazil to Generate $1.5 Billion in Digital Gaming Revenues - eMarketer

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Ahead of the Digital Game in Latin America, Brazil to Generate $1.5 Billion in Digital Gaming Revenues

Digital gaming revenues will reach $4.4 billion in Latin America in 2014

August 8, 2014

Brazil is the largest country in Latin America by population, area, GDP and pretty much any other meaningful metric. It is also the biggest digital market in seemingly any category. eMarketer estimates the largest regional economy contributes with roughly one-third of Latin America’s internet users, social network users, digital buyers and smartphone users, to name a few. Brazil also takes more than half of advertising dollars—both in traditional and digital media—spent in the region.

Digital Gaming Revenues in Select Countries in Latin America, 2014 (millions and % of total)

It seems natural then that Brazil also takes the lion’s share of digital gaming spending in Latin America. In July 2014, SuperData Research estimated that digital gaming revenues in Brazil would near $1.5 billion in 2014. That figure works out to 34% of the $4.4 billion revenue stream for the category in the entire region during the same period.

Mexico ($963.0 million) and Argentina ($616.0 million) rounded out the top three markets. The study also revealed the still concentrated business opportunities when it comes to digital life in Latin America, estimating that Argentina, Brazil and Mexico combined would generate nearly three-quarters of the digital gaming market in the region this year.

While it is likely that the digital offer—gaming, in this case—may naturally gravitate toward the three heavyweights due to the sheer size of their populations and economies, infrastructure availability may also be a factor. Under that light, it is understandable that Chile ($295.0 million), with a population of about 17 million, according to the CIA World Factbook, but higher GDP per capita and a more developed digital infrastructure, outpaces the digital gaming revenues expected in Colombia ($224.0 million), Venezuela ($195.0 million) or Peru ($125.0 million), all of which have populations at least 11 million larger.

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