China Digital Gaming Market by Top Players – Tencent, Netease, Kongzhong, Shanda Games, 37 Interacti

The China digital gaming market is fundamentally different from other digital gaming markets, particularly those of the western countries. Game censorship in China is extremely stringent, and regulatory bodies often ban the licenses of video games that are deemed inappropriate for the cultural development of young gamers. Despite such limitations, China has become one of the largest digital gaming markets in the world, and has grown exponentially in the past few years due to the popularity of mobile games and eSports in the country. According to Research on Global Markets, the China digital gaming market is expected to expand at a compound annual growth rate (CAGR) of 15.4% during the 2018-2023 period, and will reach a revenue of USD 83.79 Bn by 2023.

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The China digital gaming market is classified into three segments – based on platforms (PC games, console games, and mobile games), revenue models (freemium, pay-to-play, and advertising), and game genres (shooter, role-playing, arena fighting, and others [sports, adventure, strategy, etc.]).

Platform Segment Insights:
China is a mobile-first country and has the world’s largest mobile subscriber base. The average mobile user owns an affordable handset, which allows him/her to play games on the go. With the increasing availability of reasonably priced yet high-performance smartphones, mainly from home-based brands like Xiomi, Oppo, and Vivo, there is high growth potential for China’s mobile gaming market. The mobile gaming segment is anticipated to expand at a CAGR of 20.6% through the forecasted period (2018-2023), and will occupy a market share of approximately 74% by 2023. Following the lifting of the 14-year ban on console games, China is expected to witness a significant boost in its console gaming segment, which is expected to grow at a double-digit CAGR during the 2018-2023 period. China-based Subor, which is credited with developing some of the country’s first video game consoles, has already announced the launch of the first high-spec video game console, The Subor Z+.

Revenue Models Segment Insights:
Chinese gamers categorically demand free-to-play games and make limited in-app purchases. Therefore, the China digital gaming space is dominated by the freemium or free-to-play model. This segment is projected to expand at a CAGR of 15.5% during 2018-2023.

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Game Genre Segment Insights:
Although role-playing games (RPG) held the largest market share (40%) in the China digital gaming market, owing to the availability of a large number of RPG games across PC and mobile platforms, the arena fighting segment is expected to witness a higher growth rate (33.7%) during the forecasted period (2018-2023). Arena fighting games like Kings of Glory/Arena of Valor, League of Legends, etc., from the home company Tencent, have become immensely popular in the country in the last couple of years. Therefore, gamers’ preferences are expected to drive the higher growth for the arena fighting segment in the coming years.

Companies covered:
Tencent
Netease
Kongzhong
Shanda Games
37 Interactive Entertainment

Chapter 1. Executive Summary

1.1. Market scope and segmentation

1.2. Key questions answered in this study

1.3. Executive summary

Chapter 2: Introduction

2.1. Market definitions

2.2 Market trends

2.3 Market drivers

2.4 Market challenges

2.5. Revenue based on segments (2018) USD Bn)

2.6. Value chain of China digital gaming market

Chapter 3: China Digital Gaming Market – Overview

3.1. Market overview

– Historical market revenue (2015-2017) (USD Bn)

– Forecasted market revenue (2018-2023) (USD Bn)

Chapter 4: China Digital Gaming Market – Segment Insights

Based on Platforms

4.1. China PC games market

– Revenue – (2015, 2018 and 2023) (USD Bn)

– Trends

– Drivers

4.2. China mobile games market

– Revenue – (2015, 2018 and 2023) (USD Bn)

– Trends

– Drivers

4.3. China console games market

– Revenue – (2015, 2018 and 2023) (USD Bn)

– Trends

– Drivers

Based on revenue models

4.4. China freemium model market

– Revenue – (2015, 2018 and 2023) (USD Bn)

– Trends

– Drivers

4.5. China pay-to-play model market

– Revenue – (2015, 2018 and 2023) (USD Bn)

– Trends

– Drivers

4.6. China advertising model market

– Revenue – (2015, 2018 and 2023) (USD Bn)

– Trends

– Drivers

Based on genres

4.7. China role-playing genre market

– Revenue – (2015, 2018 and 2023) (USD Bn)

– Trends

– Drivers

4.8. China shooter genre market

– Revenue – (2015, 2018 and 2023) (USD Bn)

– Trends

– Drivers

4.9. China arena fighting genre market

– Revenue – (2015, 2018 and 2023) (USD Bn)

– Trends

– Drivers

Chapter 5: Market Share of Companies

5.1. China digital gaming market – share of companies in 2017

5.2. China PC games market – share of companies in 2017

5.3. China mobile games market – share of companies in 2017

Chapter 6: Competitive Landscape

6.1. Tencent *

– Company snapshot

– Products

– Initiatives

– Growth strategy

6.2. NetEase

6.3. Kongzhong

6.4. Shanda Games

6.5. 37 Interactive Entertainment

(*) The coverage approach remains the same for all companies

Appendix

List of tables
Research methodology
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