China Video Game Market Experiences Exponential Growth.
China video game market is considered one of the world’s biggest. A recent report by Niko Partners projects a soaring growth in terms of gamers as well as games revenues. According to the report, China’s game market is enjoying an upward trajectory and will reach $55 billion in 2025. Moreover, the total number of gamers in China will reach 781 million.
The increase in revenue growth is phenomenal, in 2020 games revenue was $43.1 billion and in 2021 the total reached $46.4 billion. Niko Partners projects that by 2025 the game’s revenue in China will reach a whopping $55.1 billion. As for gamers, the numbers will increase from 727.2 million in 2020 to 781.7 million by 2025.
The research report also added that mobile gaming is taking the lion’s share and outshines PC gaming. The domestic mobile gaming revenue in China has seen the highest growth rate since 2017. The domestic game revenue for China was $29.2 billion in 2020 which is an increase of 30.9% when compared to last year. As for gamers, Mainland China recorded 681.7 million mobile gamers in 2020; a 7% increase year over year. However, mobile gamers are expected to reach 748 million by end of 2025.
Lisa Cosmas, Niko Partners president, said, “The forecast brightened with the increase in pandemic usage and then that level of gaming became the new normal. Our model covers gaming done in mainland China and we saw an increase in premium PC games and mobile overall. Our model includes the use of games on Steam in China even if they are not licensed. It appears Chinese gamers continue to be enthusiastic about this form of entertainment. Challengers to Tencent and NetEase not only caused a ripple, but games such as Genshin Impact expanded the pie.”
The report further sheds light on the top game publishers; Tencent and NetEase are the two top domestic gaming publishers of China with MihoYo also gaining some ground. The surge in China’s market was caused by COVID-19 lockdown; however, the growth has now started to normalize. Despite the normalization, Niko Partners finds that both new gamers, as well as old gamers, are more engaged in gaming when compared to pre-pandemic time.
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