China Overtaking US Gaming Market

For several years, the United States has been the dominant force in the gaming industry, a truly lucrative market that generates billions of dollars in profit each year. In 2009, total revenue from video games reached $ 77 billion, rivaling Hollywood’s with global revenue reaching $ 85 billion during the same period. But with current trends in the gaming market, the United States will eventually cede first place to China by 2014, according to new research by industry expert Digi-Capital.

The main growth area in the gaming market has shifted from console- or PC-based options and is moving strongly towards online and mobile platforms. This is ทางเข้า UFABET มือถือ  attributed to the explosive popularity of smartphones and other mobile devices. This includes internet-ready devices, such as tablets, that users find more convenient to use than traditional consoles. China, whose gaming market is focused online, is now on its way to dominating the global market.

The rise of social and mobile games

Digi-Capital’s report predicts that the game consoles market will stagnate in growth and revenue in the coming years and will eventually be replaced by online games and social media. The popularity of online games on social media has been tremendous. Video game developers like Zynga are making billions in revenue from embedded ads and micro-currency systems, which was very effective in getting more people to play more games by charging very small amounts for games and other accessories.

Mobile and online games are expected to grow at a CAGR of 18%, generating revenue of up to $ 44 billion or 50% of the total $ 87 billion that the video game market is expected to reach. Online and mobile game development companies in the US and Japan are making additional investments to promote this growth, a stark contrast to the stagnant growth of game console publishers requiring millions of units in sales. just to cover expenses.

China prepares to become the main gaming market

Chinese companies always look for two types of investments. One is to invest in foreign companies that they will use as commercial platforms so that they can harness their national strength and achieve international growth. Another type is investment in foreign technologies and intellectual properties that, in turn, will be used to dominate the huge Chinese domestic market. This trend is what is happening now in the gaming market.

The Chinese gaming market is currently at 12% of the world total as of today, but is expected to take on 50% of total revenue by 2014 at its current growth rate. This will contrast with the US share during this same period, which is expected to decline from 26% to 22%. China is now boosting with a large influx of equity investments with companies like Tencent moving beyond the local sphere and seizing significant control in the US video game market with the recent acquisition of Riot Games. .

Categorized as Blogs