Video games saw a stellar performance in 2020 due to COVID-19, with double-digit current value growth. Lockdowns significantly increased the amount of time consumers spent at home and limited their choices of entertainment, paving the way for Chinese consumers to invest in video games for fun and socialising.
Despite the strong performance of overall video games, the performances of the two main categories were very different. Whilst video games software maintained solid growth, video games hardware turned to decline.
Tencent and NetEase maintained their combined dominance of video games in value terms in 2021. However, emerging games companies and independent games studios are disrupting the landscape and quickly climbing the ladder.
Within video games hardware, AR/VR headsets is expected to see by far the strongest performance in the forecast period. The positive outlook for AV/VR headsets will be driven by the increasingly diversified and affordable VR gaming content, with the number of VR games available increasing strongly.
Post-COVID-19, video games in China is expected to see healthy growth, despite an already high level of sales. Chinese gamers are increasingly demanding, which in turn will push games developers to innovate harder and monetise better.
Cloud gaming is a hot topic in China, which games manufacturers see as offering strategic future opportunities, as it is a new way to generate revenue and revolutionise the gaming experience beyond the confines of devices. Despite still emerging and negligible in terms of revenue, companies have been investing in cloud gaming in order to gain first-mover advantage.
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Understand the latest market trends and future growth opportunities for the Video Games industry in China with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Video Games industry in China, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
Video Games
This is the aggregation of video games hardware and video games software. Electronic/computerised educational toys such as Speak & Spell and LeapFrog are excluded from video games and included under pre-school. Video gaming population refers to the population that played a game at least once in the last 6 months on any covered platform. This includes players who have not spent any money on game purchases or in-game content purchases.
See All of Our DefinitionsThis report originates from Passport, our Video Games research and analysis database.
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