Indonesia Gaming Console Market Outlook to 2030

Indonesia Gaming Console Market Overview

• The Indonesia gaming console market is valued at USD 110 million, driven by increasing demand for home entertainment and rising disposable income across major urban centers. With the growing shift toward digital entertainment, gaming consoles have become a primary source of leisure for many Indonesians, particularly in cities like Jakarta, Bandung, and Surabaya. The rise of online multiplayer gaming and improved internet infrastructure further support the demand for gaming consoles across the country. The markets growth is also influenced by the release of new console generations from leading manufacturers such as Sony and Microsoft.
• Jakarta, the capital city of Indonesia, along with Bandung and Surabaya, dominate the gaming console market due to their developed infrastructure, higher internet penetration, and tech-savvy populations. These cities have seen rapid economic growth, with more individuals able to afford gaming consoles. Additionally, the rise of esports and gaming cafes in these urban hubs has spurred the demand for gaming consoles. The concentration of tech industries in these areas has also contributed to the markets dominance.
• The Indonesian government enforces strict import regulations on gaming hardware, which affects the availability and pricing of consoles. According to the Ministry of Trade, import tariffs on gaming consoles and related hardware were set at 15% in 2023, aimed at protecting local manufacturers. However, this has also made it difficult for international console manufacturers to reduce prices in Indonesia, limiting console affordability and access. Adjustments to these import policies could significantly impact on the markets growth.

Indonesia Gaming Console Market Segmentation

• By Console Type: The market is segmented by console type into home consoles, handheld consoles, and hybrid consoles. Home consoles, such as Sony's PlayStation 5 and Microsoft's Xbox Series X, hold a dominant market share in Indonesia due to their superior graphics, exclusive game titles, and enhanced gaming experience. These consoles have gained a loyal following among hardcore gamers who prioritize performance and immersive gameplay. The popularity of home consoles is also supported by a growing number of esports tournaments and online streaming platforms.
• By Distribution Channel: The market is also segmented by distribution channel into offline stores and online retail. Offline stores, which include major electronics chains and hypermarkets, lead the distribution segment due to the preference of Indonesian consumers to physically examine products before making a purchase. Electronics retailers often provide demonstrations of console performance, and consumers benefit from in-store promotions. Additionally, offline stores serve as a hub for gamers to gather and discuss the latest console releases, contributing to their dominance in the distribution channel.

Indonesia Gaming Console Competitive Landscape

The Indonesia gaming console market is characterized by strong competition between international console manufacturers and a few local distributors. The major global players dominate the market, focusing on exclusive gaming titles, high-end hardware, and strategic partnerships with local distributors and esports organizations.

Indonesia Gaming Console Industry Analysis

Market Growth Drivers

• Rising Disposable Income: Indonesia's middle-class population has been expanding steadily, contributing to higher disposable income, which is a key driver for the gaming console market. According to the World Bank, Indonesias gross national income (GNI) per capita rose from $4,140 in 2022 to $4,220 in 2023. This increase in disposable income has led to a greater demand for recreational activities, including gaming. As households allocate more funds for entertainment, gaming console purchases are on the rise, particularly in urban areas. Rising income levels are thus directly supporting the expansion of the gaming console market.
• Expansion of Online Gaming Ecosystem: Indonesias online gaming ecosystem has rapidly expanded, driven by both local and international game developers. The Ministry of Communication and Information Technology (Kominfo) reported that the number of online gamers reached 100 million in 2023, with a significant portion shifting towards console gaming as developers increasingly tailor online multiplayer features to consoles. This shift is helping increase the demand for consoles with online gaming capabilities, fostering a robust market ecosystem in Indonesia. Additionally, internet service providers have also improved infrastructure, making online gaming smoother, which directly benefits console gamers.
• Increasing Internet Penetration: Indonesias internet penetration has been a key factor in the growth of the gaming console market. As of 2023, the number of internet users in Indonesia reached 215 million, according to data from the Association of Indonesian Internet Service Providers (APJII). The growing number of internet users, especially in urban and semi-urban areas, has fostered the rise of online gaming, making consoles more appealing due to their enhanced multiplayer and digital connectivity features. This growing connectivity is supporting the demand for more sophisticated gaming experiences through consoles.

Market Challenges

• High Import Duties on Consoles: Indonesia imposes high import duties on gaming consoles, making them significantly more expensive than in other markets. The Ministry of Finance reported that the import duty for gaming consoles stood at 15% in 2023, which inflates retail prices. These elevated prices pose a challenge for widespread console adoption, particularly in price-sensitive segments of the market. While disposable income is rising, the cost barriers created by import duties remain a significant obstacle for many consumers in Indonesia.
• Competition from PC and Mobile Gaming: PC and mobile gaming continue to dominate the Indonesian gaming landscape, with consoles facing stiff competition. According to the Indonesian Game Association, 85% of gamers in Indonesia played on mobile platforms in 2023, while only 15% used consoles. This preference is driven by the affordability and accessibility of mobile and PC gaming, which offer a wide range of games at lower price points. The vast library of free-to-play games on mobile devices makes it difficult for consoles, with higher upfront costs, to capture a larger share of the gaming audience.

Indonesia Gaming Console Market Future Outlook

Over the next five years, the Indonesia gaming console market is expected to experience considerable growth, driven by increasing internet penetration, the rising popularity of esports, and the development of cloud gaming platforms. The market will benefit from ongoing advancements in console technology, including virtual reality integration and the growth of digital game distribution. Government initiatives supporting the local gaming industry and increased investments in gaming infrastructure will also fuel the market's expansion.

Market Opportunities

• Growth of Esports: Esports has seen tremendous growth in Indonesia, presenting a significant opportunity for console gaming. In 2023, the Indonesian Esports Association reported that the country had over 52 million esports enthusiasts, many of whom are transitioning from mobile to console-based games for competitive play. The increased popularity of esports tournaments, including those centered around console games, is creating new demand for gaming consoles. With the rise of console-specific esports leagues, this trend is expected to further support the gaming console markets growth in the near term.
• Expanding Gaming Audience in Urban Areas: Indonesias urban population is steadily increasing, leading to a broader gaming audience. The World Bank reports that over 57% of Indonesias population resided in urban areas by 2023, and this demographic has shown a stronger preference for premium gaming experiences, including console gaming. Urban consumers tend to have better access to high-speed internet, enabling them to fully utilize the online features of gaming consoles. This urban expansion presents an opportunity for gaming console makers to target affluent, tech-savvy urbanites who are seeking more immersive gaming experiences.