In 2023, the global gaming market witnessed significant growth, reaching 1,173.79 billion yuan ($166B) with a 6.00% increase from the previous year. Within this expansive industry, the mobile gaming sector stood out, amassing 606.27 billion yuan ($85.76B), half of which was dominated by Chinese companies. Their dominance in the global market is attributed to the creation of high-quality games, ongoing innovation, and aggressive global expansion strategies.
Chinese Dominance and Diversification in the Growing Global Mobile Gaming Market
Despite this success, Chinese developers encountered a setback, as their self-developed games’ overseas revenue dipped by 5.65% to $16.366B. The major markets for Chinese mobile games, including the United States, Japan, and South Korea, still contributed to more than half of China’s overseas revenue, underscoring the international appeal of these games.
This widespread acceptance is the result of continuous improvement in game quality, the introduction of innovative features, and effective market and brand expansion strategies. Although strategy games continue to lead Chinese mobile game exports, the casual gaming sector is witnessing rapid growth, with its overseas market share jumping from 0.6% to 5.1% in just three years.
The landscape is further reinforced by the presence of 52 Chinese firms among the top 100 global revenue generators in the industry, with Tencent Games standing out with revenue surpassing 100 billion yuan ($14.13B).
However, challenges persist, notably a declining revenue share from self-developed Chinese products, fierce international competition, rising user acquisition costs, and the struggle for effective localization due to a shortage of local talent.
To overcome challenges in expanding their products overseas, over 60% of surveyed Chinese companies are emphasizing long-term product operations, and about two-thirds are using brand or IP partnerships to attract international users. These strategies, combined with a focus on regional preferences and the adoption of advanced technologies such as AI and improved game engines, are essential for Chinese developers looking to maintain global dominance and succeed in the global market.
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