We saw a significant surge of $166 billion in the global gaming market in the past year with mobile dominating with $85.76 billion, half of which came from Chinese companies. This success can be attributed to their commitment to creating high-quality games and a strong push for global expansion.
However, overseas titles developed by Chinese developers suffered a 5.65% decrease in revenue, which is around $16.366 billion, according to Gizmochina. The main markets where Chinese mobile games retained their popularity such as the United States, Japan, and South Korea, still made up more than half of China’s earnings from other countries.
The widespread acceptance of these games stems from the non-stop improvement of game quality and the adept implementation of market and brand expansion strategies. Despite the continued dominance of strategy titles within Chinese mobile game exports, the casual gaming sector is still seeing impressive growth as overseas market share jumped from 0.6% to 5.1% within three years.
Tencent leads the way
China’s gaming dominance is bolstered by Tencent Games, a revenue powerhouse exceeding 100 billion yuan ($14.13 billion), alongside 51 other Chinese companies ranking among the top 100 global earners.
It’s worth noting that despite the Red Dragon’s impressive gaming performance, the road ahead isn’t very smooth. They need to address declining domestic revenue, navigate the intense global competition, find ways to cut user acquisition costs and overcome domestic hurdles such as its stringent regulations that appears to have been withdrawn.
To overcome international expansion challenges, more than 60% of surveyed Chinese companies are focusing on long-term product operations, strategic partnerships, regional preferences, and advanced technologies. These efforts help maintain global dominance as well as pave the way for more success in the global market.
