Online games boom in China

In the five years through 2012, revenue for the Online Game industry in China increased at an annualized rate of 34.4% to $9.3 billion, says PRWebimgres. “The number of online game players in China has been growing 34.7% per year over the period, and about 59.5% of internet users in China are also online game players.

“Although the first online game was designed by a domestic studio, the Chinese online game market was dominated by foreign games in the early years of the industry’s development. Domestic firms only took a leading share of the market in 2006, says IBISWorld. Over the past five years, Chinese-made online games have been increasingly well accepted by the global market, with exports growing faster than total revenue.

“In 2012, the top four players in the Online Game industry in China – Tencent, Netease, Shanda Games and Perfect World – made 61.4% of total industry revenue, which indicates a medium level of concentration. The few large-scale companies that are able to raise enough funds develop high-quality games and buy operation licenses from other companies. However, the majority of enterprises in this industry are small game studios developing lower-quality games.

“As the Online Game industry matures and comes under more regulations, competition will become more intense and profitability is expected to fall somewhat, says IBISWorld. Game companies will invest more into research and development to design better and fancier games. In particular, firms will focus on further penetrating the 15-to-34 age group, offering more social, mobile and browser games to cater to this market.”

For more information, visit IBISWorld’s Online

 

 

More: http://www.prweb.com/releases/china/online-games/prweb10414609.htm

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