The ranks of online gamers in China will grow from 25.5 million in 2005 to 61 million in 2010, reports In-Stat. Government policy is generally in favor of the online gaming industry and several drivers will provide numerous business opportunities.
For now, however, profits are elusive for many firms. Less than 15 percent of Chinese online gaming companies were profitable in 2005. "As of 2005, there were 16 million paid online game players," says Anty Zheng, In-Stat analyst. "The increased rate of online gamers is bigger than that of Chinese netizens since online gaming, as one of the most widely used online services, will become more and more popular in the coming years."
In-Stat found the following:
- Key first-tier players such as ShanDa, NetEase, The9, and KingSoft, account for a combined 80 percent of the market.
- In 2005, there were more than 300 online gaming companies in China. 50 percent of the games are home-made, and that share will increase in the coming years.
- A current market barrier is a new policy requiring that playing time be restricted to four hours for each game and for each player.
For now, however, profits are elusive for many firms. Less than 15 percent of Chinese online gaming companies were profitable in 2005. "As of 2005, there were 16 million paid online game players," says Anty Zheng, In-Stat analyst. "The increased rate of online gamers is bigger than that of Chinese netizens since online gaming, as one of the most widely used online services, will become more and more popular in the coming years."
In-Stat found the following:
- Key first-tier players such as ShanDa, NetEase, The9, and KingSoft, account for a combined 80 percent of the market.
- In 2005, there were more than 300 online gaming companies in China. 50 percent of the games are home-made, and that share will increase in the coming years.
- A current market barrier is a new policy requiring that playing time be restricted to four hours for each game and for each player.