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    Game industry grows in revenue but faces challenges

    By Zhang Jie | chinadaily.com.cn | Updated: 2019-08-02 14:57
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    A view of the Honor of Kings themed exhibition on July 29, 2019. [Photo by Gao Erqiang / China Daily]

    In the mature market, Chinese mobile game publishers accounted for a low market share of less than 20 percent in the first half of 2019, but the average annual growth of players' spending reached 51 percent, said the news website, citing a joint report by App Annie and Google.

    Chinese mobile game publishers in the emerging market took a lead position in shares, with the annual growth of players' spending in India and Russia soaring to 110 and 73 percent respectively. Brazil and Indonesia saw the figures of Chinese publishers remain far less than Japanese counterparts.

    Chinese game publishers will have the opportunity to obtain profits in South Korea in simulation games in the future, as South Korean publishers' revenues are primarily found within this genre. In the US, the world's largest game market, Chinese game publishers could strengthen development in more casual and role-playing games, said Dai Bin.

    The revenue of 23 listed Chinese game companies in overseas markets reached 100 million yuan in 2018, with 7 companies' revenue growth surpassing 80 percent and 14 surpassing 40 percent, the news website said.

    Last year, Tencent and NetEase, two major Chinese game companies, saw a total revenue from overseas AppStore and GooglePlay of $472 million, surging 505 percent from the previous year.

    The two companies also invested in several foreign game firms and studios in 2018, including Ubisoft Entertainment, Bluehole, Kakao Games, Grinbding Gear Gemes, Bungie, Jumpship and Improbable.

    As more Chinese game companies set their sights on overseas markets, they should promote diversification in their income structure and revenue, said the news website.

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