Four Trends of China’s Online Game Market Revealed at ChinaJoy 2012

This year’s ChinaJoy opened on July 26 at Shanghai New International Exhibition Center. As China’s largest and world leading game exhibition, it attracted a huge number of game companies. At the summit forum and sub forums targeting industry and media representatives, the industry giants’ speeches revealed various trends of China’s online game market.

Strength of R&D and Innovation will be seen.

Ding Lei, CEO of NetEase, said at the Summit Forum, “The decline in the industry’s growth rate indicates that the bubble is fading away and that the industry is getting back on the right track. Currently there is a temporary self-adjustment, and the return from a ten-year impetuous development has just begun.” The slowdown of the online game market will offer opportunities for competent game companies to grab more market share. Those engaged in R&D and innovation will see their strength enhanced.

Industry giants will enter the Web game sector.

As the growth of client-based online game slows, the Web game and mobile game is seeing a surge in the number of users and market size. According to China’s Game Industry Report, H1 2012, the market size of China’s Web game experienced a 46.7% year-on-year increase during the first half, and that of mobile game expanded 54.4% year-on-year. By the end of June 2012, Web game and mobile game users amounted to 205 million and 78.2 million, respectively, in China. Currently, Shanda, Giant Interactive and Perfect World are planning to enter the Web game sector, while Snail Games has set up its Web game business unit and will launch various Web games in the second half of 2012.

Crossover and convergence has been a clear trend.

This year’s ChinaJoy presented the inaugural Entertainment Industry Cooperation Forum. The crossover and convergence of online game and traditional entertainment has been a clear trend, and traditional entertainment marketing has been a major promotion method for online game, especially the close combination of online game with TV and film elements. The cross-field and cross-platform expansion centering on IP authorization and based on game will be favored by the online game industry.

Overseas market will gain more attention.

Online game is an emerging force of China’s cultural industry and has made significant achievements during the past decade, especially in export. During the past five years, China’s online game export increased by five times. According to the latest figures released at ChinaJoy 2012, China’s export of online game products developed by Chinese companies generated a sales revenue of RMB 1.13 billion during the first half. With growing competition in the domestic market, the game companies will pay more attention to the overseas market.