Trends In The Chinese Online Gaming Industry
Gaming has been one of the most popular hobbies for many years now. It is one of the most popular hobbies in the entire world. There has however been very little awareness on the part of the gaming world as to how big the online gaming industry is and where will it be in a few years from now. This lack of knowledge is leading to some mistakes that are being made in the future by the Chinese online gaming industry. These mistakes can be avoided by making better Chinese online gaming industry facts.
- Facts about the Chinese online gaming industry are scarce. However, facts about the future of the Chinese industry are coming out more often. Information about the Chinese government’s plans for the industry, regulation changes and possible foreign investors are coming out more frequently. The following points are some of the more important ones from the available information. Potential regulations about the online gambling industry in China are discussed below.
- Gaming Revenue Cloudy – The current scenario of the online gaming industry in China is cloudier than in many other countries. Potential foreign players will only be able to enter if the Chinese government allows them to do so. It should be noted that in the past there have been attempts by foreign players to enter the Chinese online gaming industry. Examples include Big Fish, which was shut down by Chinese authorities. Many foreign companies, however, have either gone bankrupt or have been forced into closing their operations in China. If the current trends continue, fewer foreign companies will be willing to enter the Chinese market and this will only lead to a more cloudy future of online revenue for the Chinese online gaming industry.
- Gaming Revenue Shifts – There has been a lot of focus on the gaming industry in China. However, it is important to recognize that revenues from online gaming are only one of the revenue streams in the Chinese online gaming industry. Mobile gaming, digital merchandise and other channels are also growing tremendously in China. It is safe to assume that revenues from these other channels will experience tremendous growth in the next five years. The key, therefore, is to recognize that the current revenue trends are shifting in China but the impact on the online gaming industry will be tremendous as all the future revenue generated will come from these other channels.
- Market Size and Shape – At present, China is a relatively small market with approximately 1.3B users compared to the US market size of nearly 80B users. One of the reasons why there are such large differences in the size of the Chinese online gaming industry is because the Chinese gaming industry is much more fragmented than the global online gaming industry. In the US, the overall size of the industry is concentrated in a few large cities including New York, Los Angeles and San Francisco. On the other hand in China, many smaller cities have recently developed strong online gaming industries. As a result, the market size of the Chinese online gaming industry will continue to diversify as more cities enter the game.
- Skill Sets and Penetration – As earlier mentioned, China is a small country with poor infrastructure and communication and as a result, there is a very low penetration of online gaming in China. As a result, many people in China do not have Internet access and as a result, they do not play online games. To increase the penetration of online gaming in China, there are a few options including creating specialized portals with localized content to allow users to access free online games, hosting game tournaments with large prize pools and creating live streaming platforms where viewers can watch gaming tournaments. This will dramatically increase the ability of Chinese gamers to access the Internet on their computers. As the penetration of the Internet increases, it will become increasingly difficult for developers to achieve visibility in China and for companies to discriminate against Chinese gamers. This is especially true if the popular online games that are popular in China like Linea I and II are imported from developers outside of China.
- Growing Online Technologies – One trend that we see with the Chinese online gaming industry is the continual integration of technology into the industry. New technologies, such as 3D animation, MMORPGs, streaming media and social networking are becoming more prevalent. In addition, there are many future trends in the industry that are not yet born but are on the brink of being born, such as augmented reality glasses. As the Chinese economy develops and the Internet becomes more accessible to Chinese citizens, these emerging trends will begin to impact the industry.
The Chinese online gaming industry looks to the future with tremendous enthusiasm and energy. The challenges and barriers facing this industry in the next few years are unique compared to other markets. However, with the correct leadership, this industry can continue to innovate and develop new products and services that will allow customers in India to enjoy the same great entertainment experience as millions of customers around the world. It is clear to see that the leadership and management teams of the topmost companies in the industry are focused on maintaining the high standards and values that have made the Indian market so successful.