China’s Online Game Industry

2 min read

In 2005，China’s online game market competition was fierce in all categories，and more than 20 online game products released every month.By the end of 2005，more than 200 online game products were available on the market，of which less than 10 percent of products were profitable.Nevertheless，the growth of overall market shares of online game is still fast with generous profits.The actual sales revenue of China’s online game market reached RMB 3.77 billion in 2005，up by 52.6 percent over the year of 2004.

The development of China’s online game industry also promotes the development of related industries.The sales revenues of telecom operation generated by online game totaled RMB 17.34 billion in 2005，as high as 4.6 times of the actual revenue of online game.Moreover，the sales revenue of IT industry generated by online game also reached RMB 7.16 billion，1.9 times of that of online game.

China’s online game industry has already been at a stable and mature developmen stage.On the whole，the development of online game industry at this stage presentscharacteristics of unity and harmony，and it gradually forms an integrated industr chain.Along with the development of online game industry，business of channel vendors，point-card sellers，Internet services（Internet cafe）and media are developed rapidly.And online game operators who occupy the most key position on the whole industry chain are becoming more and more mature and rational.Meanwhile online game companies have already established closely cooperative relationships with leading telecom sectors and online game manufacturers.

From the year of 2006 to 2007，a series of changes have taken place in China’s online game industry.Traditional profit model（point-card charges）has already been stricken by new models（free playtime and game value-added charges）.Meanwhile，casual online games are becoming popular gradually.

This report analyzes China’s online game upstream and downstream industry chain，and China’s government policies about online game.Data quoted in this report involves not only market scale of online game and quantity of online game subscribers，but also full details about consumer investigation.At the same time，it puts forward a view of risks and problems existed，and the investment opportunities，also provides strategic suggestions on development of China’s online game industry.