Apr 11, 2010

88% of the chinese gamers Niko surveyed claim to play SNS games

by Rocky Fu on April 6, 2010

Niko Partners, the leading market intelligence firm on China’s video game industry, last week announced preliminary results from its upcoming Annual Review & Five-Year Forecast on China’s video game industry, citing $3.57 billion in revenue from online games in 2009.
The annual review and forecast on online gaming and Chinese gamers shows strong growth by Chinese online
game operators, despite a harsh regulatory environment particularly for foreign games, and a gamer base that has become increasingly discerning about game quality.
Niko had forecasted 2009 revenue to reach $3.65 billion. For 2010, the firm predicts that the online game market will reach $4.5 billion and enjoy a healthy CAGR of 20.9% over the next five years with revenue reaching $9.2 billion in 2014.
Key insights about online games and Chinese gamers in the report include:
  • Chinese gamers prefer the Free-to-Play (F2P) model of online games in which online operators generate revenue via the virtual economy, rather than the time-based model in which access is provided for a fixed number of pre-paid hours.
  • 63% of gamers surveyed increased their spending on online games in the past year.
  • Social Networking Sites (SNS) games have gained popularity among Chinese consumers, and 88% of the gamers Niko surveyed claim to play SNS games.
  • The primary reasons gamers with PCs at home go to an Internet café are to be social with their friends and to participate in gaming competitions.
  • At least 65% of gamers use Internet cafés at least part of the time.
  • There were 68 million online gamers in China by our definition at the end of 2009 and by 2014; the number should reach 141 million, a 15.5% CAGR.
2010 Annual Review & Five-Year Forecast Report on China’s Video Game Industry (PDF)