China's games market reached $45.5bn in 2022
In 2022, the games market in China experienced remarkable growth, reaching a staggering revenue of $45.5 billion across various platforms, including mobile, console, and PC gaming.
According to a recent report from Niko Partners, Chinese games companies dominated the global scene, contributing to 47% of mobile games revenue and 39% of PC games revenue.
The forecast for the future is equally promising, with the games market in China projected to grow even further, anticipating a revenue of $57 billion by 2027, attracting an estimated 730 million gamers.
The report emphasized that China retains its position as the largest games market globally, accounting for 31.7% of global mobile games revenue and 33.4% of global PC games revenue.
In terms of revenue distribution within the domestic market, mobile games take the lead with 66%, followed by PC games with 31%, and console titles at 3%.
Tencent and NetEase continue to dominate the Chinese gaming industry, collectively representing 61% of the domestic revenue for PC and mobile games in 2022. However, Niko Partners observed a decline in their market share compared to the previous year due to underperforming legacy titles and a lack of new game launches.
Lisa Hanson, CEO and founder of Niko Partners, highlighted the international growth of Chinese game companies, noting their substantial investments abroad. Overseas PC games revenue generated by Chinese-owned companies increased by 22% in 2022 and is projected to grow at a Compound Annual Growth Rate (CAGR) of 13.8% until 2027—outpacing domestic growth by a significant margin.
Hanson further emphasized that while China's gaming market presents challenges for both domestic and foreign companies, it remains the number one market worldwide in terms of games revenue and the sheer number of gamers, making it impossible to overlook.
She added that game companies in China have found success through officially approved releases on app stores as well as unlicensed releases via platforms such as Steam International. In fact, if we consider games published through Steam in China as a unified entity, the revenue generated from the platform would surpass all other publishers in the country, with the exception of Tencent and NetEase.
Source: Marie Dealessandri, Deputy Editor at Gamesidustry.biz