China’s path of domination reaching the gaming market….

23 Feb

Utilizing the power of social networks and mobile technology, China is about to overtake America as the largest gaming market in the world.

A report from Digi-Capital makes the prediction that China’s total revenue from games will grow to around $22bn by 2014 and represent a quarter of the world’s gaming revenues (from its current position of around 12%). This will be taken from the share currently held by the US, taking them down from 26% to 22%.

This growth will be fuelled by the rapid growth in online and mobile games, within whichChinais the leading world player. At the same time, predicts Digi-Capital, sales of traditional console games will remain flat, or even decrease.

This is not surprising, given that online games are quick to publish and can achieve gross margins  of 50%, whereas blockbuster console games require sales of anywhere between 500,000 and 1m units to simply break even.

In fact, Chinese games companies such as Shanda, ChangYou.com and Giant are already achieving billion-dollar stock-market valuations. View the Digi-Capital Global Video Games Investment Review here.

So what do you think? Is 2014 an accurate estimate?

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