The Chinese Games Market

Author: Marcus Hellkvist

Abstract: The purpose of this text is to describe and explain how the Chinese video game industry work and what is currently trending in China. This text has been written to act as a starting point for anyone interested in the Chinese games market and plan on doing further research. The Chinese games market is growing faster than ever and has even surpassed the US in terms of games revenue. This growth is expended to be caused by Southeast Asia’s economic growth prospects, huge population, increased internet and smartphone penetration, and the economic change and social transformation of the emerging middle class in China. The Chinese games market is mainly dominated by Tencent and NetEase. In 2016 they accounted for more than 52% of all mobile games revenue in China. Foreign game developers and game studios need to understand that the Chinese market is highly competitive and that it is difficult for smaller companies to enter due to corporate giants such as Tencent and NetEase. It is particularly difficult for non-Chinese developers and companies to enter due to local restrictions and governmental censorship. If one were to enter the market, it is important to understand the Chinese culture and localize the game and its content. Not only the language, but also the graphical art style, gameplay design, narrative, and monetization and marketing strategy. Webpages, news articles, interviews, and data from research organizations constitute the basis of this text as very little peer-reviewed material and scientific research were found.

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