International Factfile 2015: Latvia

Latvia may be a small country, but its potential in the global games market is growing.

According to market research firm Newzoo, the Latvia games industry generated revenue of $19.1 million (12.3 million) during 2014, making it the 80th-biggest region for games in the world.

Additionally, Latvia is the 17th-biggest games market in Eastern Europe.

Data aggregator Statista reports that the growth in Latvia’s games industry is driven by tablet and smartphone games. Mobile revenue is estimated to reach $1.4 million (0.9m) by the end of this year.

Furthermore, mobile revenue is predicted to experience an annual compound average growth rate (CAGR) of 9.26 per cent over the next five years, hitting a market value of $2.1 million (1.4m) by the end of 2020. This has been driven by the fact Latvian gamers have embraced micro-transactions in their mobile titles. The average revenue per user (ARPU) currently amounts to $6.44 (4.16).

Social games have also seen a boom; Latvian social network Draugiem saw its first games launched in 2009, with the two titles – Afrika and Ferma – seeing a combined userbase of over 600,000 users by 2013.

The cost of PlayStation 4 and Xbox One games is very similar in Latvia to the UK. New-generation titles retail at roughly €60 (42).

However, few consumers can really afford these prices. The Latvian Central Statistics Bureau reports that as of Q1 2015, the average gross monthly salary in Latvia is €785 (553).

Population: 1,997,500

Capital City: Riga

Currency: Euro

GDP (Per Capita): $16,836

KEY RETAILERS

Videogames.lv, GGWP.pro

TOP DISTRIBUTORS

SIA iWare Distribution, ACME Computer Components

TOP DEVELOPERS

Ambergames, Wyse Games, Innowate, Next Level, MightyFingers, Fun Generation Lab, Farcore, Brain Games

PUBLISHERS IN THE REGION

Sony, Microsoft