Chinese game market to grow despite problems
published: Friday, 18. September 2009
Despite a strict regime regarding games and how they are sold and played, China is expected to grow fast as a gaming industry in the coming years.
Online game revenue will rise from US$2.75 billion in 2008 to US$8.8 billion in 2013, said Lisa Hanson, managing partner at research firm Niko Partners, at a GCA conference here today.
This is helped by the number of gamers in the country growing from 58 million to 100 million in the same time period, according to the Chinese game industry expert.
The growth, though unsurprising because of China's rising affluence, comes despite the country's tough rules on games and problems with piracy.
Foreign game companies, for example, have to work with local firms to enter the market. Many games are also not allowed into the country unless approved by the Ministry of Culture.
At the same time, rampant piracy means that many illegal copies of PC games are out in the grey market before the real version appears in shops.
Yet, despite these problems, the proliferation of Internet access is driving the popularity in games in the Asian giant, said Hanson. The online growth is at a 17.7 per cent compound annual growth rate (CAGR), and the Internet is connecting places and people it never did before, she revealed.
The result: more online gamers at home, joining those who play in 170,000 Internet cafes that dot the country. And what do they play? More likely a free-to-play game that involves paid items.
"Free to play means you can to pick and choose what you want to pay for," said Hanson, explaining the thinking behind many Chinese consumers.
In a survey that Niko did with 1,850 adult gamers who own a PC in 20 cities this year, it found the following interesting facts:
>>20 per cent are "hardcore" games (who spend US$12 to US$29 a month)
>>59 per cent are male, while 41 per cent are female
>>47 per cent have played for three to five years.
On average, each gamer is spending US$52 a year, and this is rising. Interestingly, a good 40 per cent of gamers claim to have made real money from playing games, the survey revealed.
