Pokemon TCG, Naruto in China vs. Japan, and 2025 Mobile Game Revenue Trends

Research Notes

Pokemon TCG: Digital vs. Physical Performance

Revenue Trends

The physical Pokemon TCG continues to dominate the collectible card game market. In the fiscal year ending March 2024, global sales reached a record 11.9 billion cards, marking a 22.7% year-over-year increase. Japan alone contributed $857 million in 2023, outpacing other major trading card games like Yu-Gi-Oh! and Magic: The Gathering. The surge in demand has been driven by collector interest, competitive play, and continued expansion into new markets, including China, which received its first official Pokemon TCG release in 2022.

In contrast, digital versions of the Pokemon TCG historically lagged in revenue generation. Pokemon TCG Online, and later Pokemon TCG Live, functioned primarily as free companion apps rather than primary revenue sources. This changed with the launch of Pokemon TCG Pocket in 2024, which generated approximately $300 million globally in its first few months. The game quickly reached 60 million downloads, indicating a growing audience for digital adaptations. While physical TCG sales still outpace digital, Pokemon TCG Pocket has proven that mobile adaptations of the card game can become major revenue drivers.

Player Engagement

Physical Pokemon TCG play remains the foundation of its community, with structured competitive circuits, regional tournaments, and the annual Pokemon World Championships. In 2023, the event saw hundreds of top players and thousands of attendees, reinforcing the strong engagement of physical card players. Social factors, including card trading and collection, continue to sustain high levels of player investment.

Digital engagement has historically been weaker, particularly for Pokemon TCG Live, which recorded 60 million matches in its first year, significantly less than competitors like Yu-Gi-Oh! Master Duel. However, Pokemon TCG Pocket’s mobile-first approach has dramatically improved engagement, leveraging the popularity of booster pack openings, rapid online matches, and free-to-start accessibility. Japan and the United States accounted for the largest player bases, with Japan contributing 41.5% of revenue and the U.S. 21.7%.

Naruto’s Popularity in China vs. Japan

Revenue and Downloads

Naruto Mobile, a Tencent-developed mobile game exclusive to China, has become a dominant force in the country’s mobile gaming market. Since its launch in 2016, the game has generated over $1 billion in total revenue, with sustained monthly earnings averaging $10 million. At its peak, Naruto Mobile was among China’s top five highest-grossing mobile games, surpassing $49.5 million in a single month.

In contrast, Japan has not produced an equivalent mobile hit for the Naruto franchise. The closest competitor, Naruto Shippuden: Ultimate Ninja Blazing, saw moderate success but peaked at a much lower revenue range, earning around $96 million in China before being discontinued in 2021. Naruto x Boruto: Ninja Voltage, another Bandai Namco mobile title, remains operational but does not achieve the same level of financial success.

Cultural Analysis

Several factors explain Naruto’s outsized success in China compared to Japan:

1. Limited Competition in China: Tencent secured exclusive rights to Naruto Mobile, giving it dominance in the Chinese market. Japan, by contrast, has numerous competing anime-based games, limiting the impact of a single Naruto title.
2. Nostalgia and Narrative Appeal: The themes of perseverance and self-improvement resonate deeply with Chinese audiences, leading to a stronger emotional connection. In Japan, Naruto is one of many popular shonen series and does not hold the same singular nostalgic appeal.
3. Monetization Strategies: Chinese players are more accustomed to aggressive monetization, including pay-to-win mechanics, which Naruto Mobile has leveraged successfully. Japanese players are generally more resistant to excessive monetization, which may have limited Naruto games’ success in Japan.
4. Gameplay Preferences: Naruto Mobile features real-time action combat and PvP mechanics, aligning well with Chinese gaming preferences. Japanese mobile games tend to favor turn-based RPGs and gacha-driven experiences, making a real-time fighting game less of a natural fit.

Overall, Naruto enjoys strong popularity in both China and Japan, but its status in China is elevated due to unique market conditions and player preferences. The game’s revenue dominance in China highlights a broader trend where Japanese IPs can achieve greater success abroad than in their home market.

Mobile Game Revenue Trends in China and Japan (2025)

Market Overview

China remains the largest mobile gaming market globally, with total revenue reaching approximately $34–36 billion in 2024, growing at a modest 5% year-over-year despite government restrictions. Japan, while still the third-largest mobile gaming market, has seen stagnation, with H1 2024 revenue down 17% year-over-year due to economic factors and a weaker yen. Projections for 2025 indicate Japan’s mobile game revenue will reach $20.9 billion, while China’s overall gaming industry (including PC and console) is expected to hit $137 billion.

Top-Performing Games

China’s mobile game rankings continue to be dominated by Tencent and NetEase titles. Honor of Kings remains the highest-grossing mobile game worldwide, generating $2.6 billion in 2024. Dungeon & Fighter Mobile (DNF Mobile) emerged as a major success, grossing $2.5 billion within eight months of its launch, making it China’s second highest-grossing game. Other top-grossing titles include Genshin Impact, Peacekeeper Elite, and Naruto Mobile.

Japan’s mobile market remains driven by long-running successes. Monster Strike was the highest-grossing game in Japan for H1 2024, earning $290 million. Uma Musume: Pretty Derby continued strong, generating over $160 million. Fate/Grand Order, Puzzle & Dragons, and Honkai: Star Rail also remained in the top-grossing list, indicating the staying power of established franchises.

Emerging Trends

Several key trends are shaping mobile gaming in China and Japan:

• Monetization Shifts: The industry is moving toward hybrid monetization, incorporating season passes and subscriptions alongside gacha mechanics.
• Collaboration Events: Games in Japan increasingly rely on cross-IP events (e.g., anime tie-ins) to drive revenue spikes.
• Demographic Changes: Japan’s mobile gaming audience is aging, leading to higher spending per player but fewer new entrants. China’s market, while younger, is shifting towards more premium experiences.
• Regulatory Impact: China’s gaming regulations continue to shape market dynamics, with stricter licensing rules affecting new game launches.

China’s mobile gaming sector remains robust despite regulatory challenges, while Japan’s market is showing signs of stagnation. The success of long-standing franchises in both countries suggests that sustaining engagement through content updates and monetization innovations will be crucial for future growth.

References

• Revenue and sales data sourced from financial reports and industry analyses of The Pokemon Company, Tencent, Bandai Namco, and mobile gaming analytics firms.
• Market trends and rankings gathered from app store intelligence reports and regional gaming industry reports.
• Cultural insights based on historical reception studies, market research, and consumer spending patterns in China and Japan.