Home / Video Gaming Industry in China / Chinese Gaming Industry Offers a Lucrative Opportunity for the Investors

Chinese Gaming Industry Offers a Lucrative Opportunity for the Investors

China’s games market is evolving fast. Mobile games, which has been the fastest growing segment in China for some time. Offering a lucrative opportunity for developers and publishers. Investment in the region by multinational companies and country governments will continue to boost this growth. The online game sensation boosted the game industry. A total of 185 gaming companies went public as of the end of 2017, quoting the report. Now, a number of companies are preparing for IPO launches and the sound environment and fast-growing market will drive more companies to enter into the capital market.

Tencent is currently the market leader in China with over 50 percent market share of PC and mobile games revenue. The company has done well thanks to its increased focus and investment in internally developed and licensed IP that it has paired with a robust marketing and distribution strategy via its popular social networking apps.

The CEO of Niko, a leading games market intelligence agency, believes that the Chinese culture plays an important part in the market of games in China. She said in a statement that games fill the void within gamers. She then added that it is important evaluate the voids in the Chinese culture and match them with the game development, as well as to the behavior of gamers and characteristics of a good mobile game in popular genre. The Organisation for Economic Cooperation and Development ranks China 59th out of 62 countries in openness to foreign direct investment. China is a big market for cars, aircraft, smartphones, cosmetics and other goods, and now this country has become the most valuable market for investing in its booming gaming sector.

What Experts are Saying about the Chinese Gaming Industry-

Console gaming and online gaming make up the gaming market. The online gaming is relatively a big market, with speeding expansion. However, legal restrictions for foreign companies tamper their operations. Expert China lawyers pointed out that it is especially difficult for foreign companies, such as from the US and France to obtain the right license for expanding their activities. Almost every Chinese games company looks for two types of investment:

  1. Foreign companies they can use as a business platform to leverage their domestic strength internationally
  2. Foreign intellectual property and knowledge they can leverage in their domestic market

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Major corporate acquirers are increasingly looking to external investments, acquisitions, joint ventures and strategic partnerships for online/mobile games growth and diversification. What was once a fast-growing, dynamic market is now a mature business.

With the continuous improvement in the quality of Chinese online games, many game makers are more willing to expand abroad. Chinese online game companies are rushing to dominate markets in southeast Asia, the US and Europe. Many games consciously incorporate Chinese elements into their contents.

Looking at individual game titles on console, PC, and mobile, it is clear that competitive gaming involving team play, rankings, and live streaming is claiming a growing share of overall game time. On mobile, this is particularly true in China and the rest of Asia but also in the West, where competitive mobile titles are increasingly in the top grossing charts.

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