China is becoming the #1 market for mobile gaming

Chinese Mobile Gaming

Newzoo yesterday announced their 42 page report of the Chinese Games market, providing insights into demographics, economy, media, internet, mobile telecom and app store landscape. It makes for some spectacular reading.

For example, the explosion of smartphone and tablet adoption in China has generated over 310 million mobile gamers in 2013, a 248.5% YoY increase. Mobile gaming revenue shot up 246.9% YoY at $1.9 billion and the market share of mobile games overall doubled to 13.5% compared to 5.4% in 2012. And the market hasn’t even peaked yet!

country’s demographics, economy, media, internet, mobile telecom and app store landscape.
Read more at http://www.newzoo.com/insights/chinas-tencent-takes-1-spot-global-games-marketfree-report/#kviTr2pLUoK0hG9a.99

China’s Tencent Takes #1 Spot in Global Games Market (Free Report)

Chinese Giant Leaps Past Activision Blizzard with 45% Year-on-Year Growth
Chinese Market Dynamics Featured in Free Newzoo Report

Tencent, the Chinese internet company that offers online games, communications, social networking and online information services, has become the world’s biggest company by game revenues in 2013, according to research firm Newzoo. Tencent, which reports its results for the last quarter of 2013 on March 19, is expected to have generated approximately US$5.3 billion in games revenues last year. It enjoyed an annual growth rate of 45% in 2013, taking almost 8% of the $70.4bn global games market. It is the first time ever that a Chinese company reaches the top spot. In 2012, Tencent ranked number 5 behind more traditional contenders Activision Blizzard, Microsoft, Electronic Arts and Sony. Tencents’ growth is fueled by increasingly successful overseas operations as well as continued growth in China itself. In its effort to put games market data into a broader perspective, Newzoo today launches a new free report completely focused on China.

614xTencent_vs_Blizzard_Revenues

Top 25 public company rankings by game revenues are available here:  www.newzoo.com/companyrankings.

“Tencent has shown very consistent quarterly revenue growth for a few years in a row, due to its focus on online free-to-play games and, more recently, mobile games. It is much less dependent on individual blockbuster releases than the traditional publishers and also on sales during the key Christmas holiday period. At the same time, new opportunities arise in China for Western IP as the market opens up slightly and mobile devices provide a new potential entry point ”.-  Peter Warman, CEO Newzoo Newzoo.

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Unofficially Localized GTA V Downloaded Over 10 Million Times in China
To coincide with the growing global importance of the Chinese games market and companies, Newzoo has released a free 42-page report, “Introduction to the Chinese Games Market”, which provides a high level overview of the country’s demographics, economy, media, internet, mobile telecom and app store landscape. A section covering the games market, summarizes revenues and players per segment, and discusses the prospects for consoles and Western PC games. Key insights include:

  • According to the most authoritative local games market report recently published by the Game Publishers Association Publications Committee (GPC), the Chinese games market reached $13.8 billion in 2013, slightly higher than several estimates from Western research companies, which could be down to scope and definitions;
  • In China, Apple’s iPhone and iPad take a quarter of Chinese mobile games revenues. The total 2013 mobile games revenues are stated to be $1.9bn. This exceeds expectations published earlier by Niko partners in September last year ($1.2bn) and Newzoo in June ($1.5bn). Newzoo expects to adjust its projections for the Chinese market, including mobile, upwards in its upcoming global report;
  • Three quarters of spending by Chinese mobile gamers takes place in a wide variety of local Android stores, of which 360 Mobile AssistantTencent MyAppWandoujiaGfanBaidu App Store and Anzhi Market are amongst the most popular, in addition to the stores of the three main mobile operators. Recently Alibaba announced they will add mobile games to their Taobao market place;
  • One of the most popular PC game download destinations in China, Ali213.net, offers over 7,000 free PC game downloads including almost all major Western PC games. The Western games are unofficially localized versions with add-on software developed by the website staff themselves. For example, GTA V has been downloaded for free over 10 million times from Ali213.net, illustrating that Western game IP is very popular in China. At the same time, GTA V has sold around 35M legitimate copies of its game to date worldwide.


Global Outlook for 2014
China is the world’s second largest games market by revenues, behind the US, and still offers very strong domestic growth potential. Online and mobile games make up almost the entire market, with consoles only representing a very small fraction of revenues. As a result, Tencent is expected to continue to grow and is likely to remain the largest company in the world in terms of game revenues. Sony, Microsoft and EA will hope for a boost in games sales in 2014 if the PS4 and Xbox One continue to sell well. However forecasts that next-gen consoles will significantly grow the overall console market are likely to prove too optimistic. Newzoo expects next-gen to help the console segment maintain its share-of-wallet of the Western and Japanese gamers, but not spark significant new growth. This is illustrated by Gamestop’s 2013 holiday sales report which notes “strong sales of next generation software were offset by a greater than expected decline in Xbox 360 and PS3 software sales resulting in a 22.5% decline in the new software category”.
“One company to watch is Softbank of Japan, which owns majority stakes in GungHo Entertainment and Supercell, has a 37% shareholding in China’s ecommerce giant Alibaba and recently invested $120 million in Wandoujia, one of the premier app stores in China. And of course there are non-public companies such as Mojang, Wargaming and King that would all be contenders for the top 25 if they were public. In fact, with $1.9 billion in revenues in 2013, King, which filed for an IPO in February 2014, would have been in the global top 10 of public companies in 2013 if it had listed earlier.” – 
Thijs Hagoort, Co-Founder & CFO, Newzoo

Newzoo’s free China report can be downloaded here: www.newzoo.com/chinareport

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Read more at http://www.newzoo.com/insights/chinas-tencent-takes-1-spot-global-games-marketfree-report/#kviTr2pLUoK0hG9a.99

which provides a high level overview of the country’s demographics, economy, media, internet, mobile telecom and app store landscape.
Read more at http://www.newzoo.com/insights/chinas-tencent-takes-1-spot-global-games-marketfree-report/#kviTr2pLUoK0hG9a.99
which provides a high level overview of the country’s demographics, economy, media, internet, mobile telecom and app store landscape.
Read more at http://www.newzoo.com/insights/chinas-tencent-takes-1-spot-global-games-marketfree-report/#kviTr2pLUoK0hG9a.99
provides a high level overview of the country’s demographics, economy, media, internet, mobile telecom and app store landscape.
Read more at http://www.newzoo.com/insights/chinas-tencent-takes-1-spot-global-games-marketfree-report/#kviTr2pLUoK0hG9a.99
provides a high level overview of the country’s demographics, economy, media, internet, mobile telecom and app store landscape.
Read more at http://www.newzoo.com/insights/chinas-tencent-takes-1-spot-global-games-marketfree-report/#kviTr2pLUoK0hG9a.99

provides a high level overview of the country’s demographics, economy, media, internet, mobile telecom and app store landscape.
Read more at http://www.newzoo.com/insights/chinas-tencent-takes-1-spot-global-games-marketfree-report/#kviTr2pLUoK0h

 

 

 

a 248.5% yearon-

Also, the report states that 84% of Chinese consumers play video games compared to 69% of Americans and that mobile gaming is the most popular segment. Oh, and the biggest gaming and internet company in the world? The Chinese giant Tencent.

If you’re a brand owner wanting to connect and engage with Chinese consumers, you have to bring branded mobile games into your strategy – this channel is just going to grow and grow.

To download the report, click here: China Games Market Newzoo Report 2014

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