China's Gaming Industry Hits $45.5 Billion in 2022

China's gaming market achieved a revenue of $45.5 billion in 2022, encompassing mobile, console, and PC gaming. Chinese gaming companies accounted for nearly half of global mobile gaming revenue and over a third of global PC gaming revenue. According to a Niko Partners report, the market is projected to expand to $57 billion by 2027, with an estimated 730 million gamers. China remains the world's largest gaming market, generating 31.7% of global mobile gaming revenue and 33.4% of global PC gaming revenue. The domestic market is primarily driven by mobile games, which contribute 66% of the revenue, followed by PC games at 31%, and console titles at 3%. Although Tencent and NetEase continue to dominate the domestic market with a combined 61% share, their market share has decreased due to underwhelming performance from established titles and a lack of new releases. Lisa Hanson, CEO of Niko Partners, noted that Chinese gaming companies are expanding internationally, with overseas PC gaming revenue increasing by 22% in 2022 and expected to grow at a 13.8% compound annual growth rate through 2027. Hanson emphasized that while China's market can be challenging, it remains the world's leading market for gaming revenue and gamer numbers, making it an indispensable region for the industry. Successful game companies in China have achieved growth through both officially approved releases on app stores and unlicensed releases on platforms like Steam International.