Mobile gaming accounted for more than half of China’s total online gaming market for the first time in 2016 as overall revenue increased 23 per cent to reach CNY176.8 billion ($25.5 billion).
Revenue from mobile games accounted for 56 per cent of total turnover last year, up from 39 per cent the previous year (see chart below, click to enlarge), according to Beijing-based iResearch. By 2018, the research firm forecasts PC’s share (both browser and client) of the market to fall to 37 per cent.
The gaming market grew 30 per cent in 2015.
The number of mobile gaming players also surpassed those of PC gaming in 2016. iResearch reckons the combined number of PC and mobile game players peaked, with more product innovation, industry integration and international development needed to attract additional users.
Although Tencent and NetEase had a combined 55 per cent share of the mobile gaming market in 2016, iResearch said the rapid pace of new developments and updates means there is plenty of room for small- and medium-sized companies to make their mark.
However, the research company noted PC browser games have developed into a relatively mature stage, with high promotion costs raising the entry barrier. The market is dominated by medium-sized companies. The PC client games market features the highest barriers to entry, with the top companies holding 80 per cent of the market.