China’s Video Game Market Expected to Grow Despite Government Prohibitions

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The five-year forecast from Niko Partners predicts that China’s video game market will grow until 2026. This forecast is based on two separate reports: one focuses on mobile games and the other on PC games.

The number of players in China in 2021 will be 706 million, which is actually a year-on-year decline. But the total is expected to rise to 730 million by 2026. A major cause of slower-than-usual growth is playing time regulations. Implemented in China in 2021. Legal playing time limits are eventually pushing many young players out of the market. China also temporarily froze licensing the game at the same time, but also started issuing licenses in April this year.

This is not the first time China has terminated licenses and has resumed issuing them. The Chinese government withdrew the same maneuver in 2018 and 2019, but kept quiet on the reasons.

Whatever the reason, the newly established licenses allow licensees to start generating revenue, which is a positive sign for the industry as a whole.

Reports from Niko Partners also predict an increase in the average revenue generated per user. In 2021, ARPU is at $ 64.44. It is expected to go up to $ 75.60 per user over the next few years. With the size of mobile games in China, it’s easy to assume this kind of growth. Little playing time quickly means a lot of money spent on development.

“Last year, we saw players entertaining themselves with nostalgic and new games during pandemic closures, we saw young players saying goodbye to a major pastime because of regulations that limit their playing hours, and we’re seeing innovations like .esports hotels. and the metaverse emerges, ”said Lisa Hanson, president of Niko Partners. “We expect China’s metaverse to develop differently than the rest of the world due to China’s unique regulatory environment. Game companies have already started investing in internal projects and partnering with local governments with more than 16,000 metaverse-related trademarks filed by Chinese companies.The greatest near-term opportunity for the Chinese metaverse will come from interoperability between game ecosystems and collaborative events of brands and owner of intellectual property.

The more than 16,000 marks associated with the metaverse are a huge number. China is about to establish its own vision of the concept. I hope some of us know what Metaverse really is. Otherwise, we risk being left behind.

Aside from the Metaverse, New Zoo’s numbers place more than half of the world’s players in the Asia-Pacific region. A healthy and growing industry in China can only be good for the industry as a whole. Fingers, the country is holding another license freeze and even more severe restrictions on players.

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