In 2025, China's video‑game market broke the $50 billion barrier for the first time, posting a year‑on‑year increase of 5.4% and reaching a total revenue of $51.8 billion. The milestone reflects the continued resilience of the Chinese gaming ecosystem despite regulatory headwinds and shifting consumer habits.
According to a fresh analysis released by market‑research firm Niko Partners, the sector is expected to keep expanding, albeit at a more measured pace. The firm projects a 4% growth rate for 2026, which would lift the market size to roughly $53.9 billion. By the close of the decade, Niko Partners forecasts that total revenues will approach $59.8 billion, translating into a compound annual growth rate (CAGR) of about 2.9% over the five‑year horizon.
Player numbers are set to rise in parallel with revenue. Niko Partners estimates that the Chinese gaming audience will swell to 769 million individuals by 2030, up from the current base of around 730 million. In addition to sheer headcount, the average amount of time spent playing each week is projected to climb to 15.8 hours, compared with 14.1 hours recorded in the most recent year. This uptick in engagement suggests that gamers are not only increasing in quantity but also deepening their involvement with the medium.
The research attributes the robust performance to two primary forces. First, newly launched titles have outperformed expectations, capturing sizable market share shortly after release.
Second, legacy or "evergreen" games—those that have remained popular for years—continue to generate steady income streams, bolstering overall revenue. Together, these dynamics have created a healthier, more diversified revenue mix than analysts anticipated. One of the standout segments driving growth is the mini‑game category.
Roughly 80% of Chinese gamers report playing mini‑games, and this genre now accounts for close to one‑fifth of all mobile‑game spending. The popularity of bite‑size, quickly consumable experiences aligns well with the mobile‑first habits of many users, especially those who discover games through short‑form video platforms.
Indeed, discovery channels are evolving. Nearly half of all players now turn to short‑video apps—such as Douyin and Kuaishou—to learn about new releases, watch gameplay clips, and gather community feedback.
These platforms have become powerful marketing engines, blurring the line between entertainment and promotion. Despite the market’s vigor, a significant portion of the player base still navigates around China’s internet censorship mechanisms. The report indicates that 66% of respondents employ some form of circumvention tool.
Of those, 30.8% connect to overseas servers, 33.6% rely on gaming accelerators to reduce latency, and 21.9% use virtual private networks (VPNs) to mask their traffic. This behavior underscores both the demand for unrestricted gaming experiences and the technical savvy of Chinese gamers. Policy shifts are also reshaping the landscape.
Earlier in the year, the Chinese government incorporated video games into its 15th Five‑Year Plan (2026‑2030) for National Economic and Social Development. Previously classified merely as digital cultural products, games now enjoy a more formal recognition as contributors to economic growth, innovation, and cultural soft power. This inclusion may signal a gradual easing of regulatory pressure and a willingness to nurture the industry’s potential.
Niko Partners highlights five macro‑trends that will likely define China’s gaming market over the next five years: 1. **Expansion of niche genres** – titles that cater to specific interests, such as strategy, simulation, or educational games, are gaining traction among increasingly sophisticated players.
2. **Growth of out‑of‑app monetisation** – developers are exploring revenue models that extend beyond the traditional in‑app purchase framework, including subscription services, cross‑platform bundles, and merchandise.
3. **Regulatory improvements** – clearer guidelines and a more predictable approval process are expected to reduce uncertainty for publishers and encourage investment.
4. **Higher spending on premium PC and console titles** – as household incomes rise, a larger segment of gamers is willing to spend on high‑quality, full‑price experiences on more powerful hardware.
5. **Integration of generative AI** – artificial‑intelligence tools are being adopted across development pipelines, from procedural content generation to player‑facing features such as dynamic dialogue and adaptive difficulty. The report notes that Chinese game studios are rapidly embedding generative AI into both back‑end production workflows and front‑end user experiences.
This trend dovetails with a broader surge in user‑generated content platforms, where creators leverage AI to craft custom assets, mods, and even entire game scenarios. The proliferation of AI‑driven tools is also fueling demand for high‑performance hardware, particularly RAM and semiconductor components, as developers require more computational power to train and run sophisticated models. Despite the excitement surrounding AI, Niko Partners cautions that sustainable growth will still hinge on three core pillars: ongoing innovation, regulatory clarity, and strong player engagement.
As long as developers continue to push creative boundaries, policymakers provide a stable framework, and gamers remain deeply invested, China’s gaming market is poised to maintain its upward trajectory well into the 2030s.